President Obama announces new efficiency standards for federal fleet

President Obama announced new efficiency standards for the federal fleet on Tuesday, ordering federal agencies to use smaller and more fuel-efficient vehicles.

In a memorandum, Obama ordered federal agencies to streamline their fleets. By 2015, he said agencies should only be purchasing or leasing light-duty vehicles that are hybrids or run on electricity, compressed natural gas or biofuels.

Obama called for all executive fleets to "achieve maximum fuel efficiency." Vehicles leased and purchased should be "limited in motor vehicle body size, engine size, and optional equipment to what is essential to meet agency mission." The memo also said only mid-size or smaller sedans should be used, with the exception of larger sedans critical to an agency's mission.

Additionally, the memo calls for the introduction of a Vehicle Allocation Methodology (VAM) to help determine "the optimum inventory" for each car fleet. The VAM emphasizes the cost of the cars and their life cycle.