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The U.S. Department of Transportation is going green. In conjunction with the U.S. Environmental Protection Agency, a rule was proposed in September to establish a nationwide program to improve vehicle fuel economy and reduce greenhouse gases.

According to the Transportation Department, the proposal builds on core principles President Barack Obama announced in May, and would provide uniform national vehicle fuel efficiency and emissions standards.

"The proposed program would also conserve billions of barrels of oil, save consumers money at the pump, increase fuel economy and reduce millions of tons of greenhouse gas emissions," the agency said in a press release.

The program covers model years 2012 through 2016, allowing automobile manufacturers to build a single, light-duty national fleet that satisfies federal and state requirements.

It also includes the first-ever national emissions standards under the EPA's greenhouse gas program.

The Transportation Department said the program's initiative is to increase fuel economy each year by about 5 percent while reducing greenhouse gas emissions by almost a billion tons. The measure will also conserve about 1.8 billion barrels of oil.

The action would save buyers more than $3,000 in fuel costs, the government said, but could raise new vehicle prices by an average of $1,100.

"American drivers will keep more money in their pockets, put less pollution into the air and help reduce a dependence on oil that sends billions of dollars out of our economy every year," EPA Administrator Lisa Jackson said in a Transportation Department release.

During a Sept. 15 press conference, Jackson said the "groundbreaking standards" require an average fuel economy of 35.5 miles per gallon in the year 2016.

Because the mileage standards vary by vehicle size, auto companies can still build and import all vehicles from the smallest hybrid to a huge SUV.

The president's rules have been endorsed by all major auto companies, state officials and most environmental advocates.

The National Highway Traffic Safety Administration and the EPA expect automobile manufacturers to meet the proposed standards by improving engine efficiency, transmissions and tires, as well as increasing the use of start-stop technology and improvements in air conditioning systems.

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