Today the Obama Administration demonstrated bold and prudent leadership on an important issue. They announced the formulation of a national policy to regulate greenhouse gas (GHG) emissions and fuel efficiency.

This was the right move to make on several levels.

Of course, its primary aim is to address emissions that contribute to climate change. It's also a step in the right direction when it comes to energy security and energy independence. And last, it's a smart idea for the economy.

The federal government will, under President Obama's administration, put in place a tough set of standards that will guide the auto industry as it plans the next generation of ever-cleaner vehicles.

But it's not just about the environment. One of the most compelling reasons to set challenging targets on fuel efficiency has to do with our energy policy. We have a vital national interest in diversifying our energy supply and lowering our strategic dependence on parts of the world that are at best undependable. And if the national program leads to less US energy money going to anti-US oil producers...well, that will be good, too.

By setting a national, forward-looking policy, the administration is empowering the auto industry to make better long-term plans and more effective investments in new technology. We're developing more efficient technologies to get the most out of every gallon of gasoline, but we're also exploring the potential of clean diesel, ethanol, electricity and hydrogen.

We're particularly excited about new technologies that don't rely on petroleum at all. As you can imagine, we're working very hard on those.

No one technology will do the whole job, but a diverse approach to utilizing many of these options, as they make sense, will make a lot more choices available to consumers. And that will take us far.

So we are making progress on the environment and on energy. But how will those changes affect the economy? We believe the President has made the right economic choices. This elegant plan will allow our critical industry to remain viable and competitive, it will preserve jobs and deliver savings to the whole country by pulling down oil prices and limiting environmental damage.

That is a step up from the potential of automakers to expend significant resources and effort figuring out how to comply with regulations from multiple agencies and states. In place of a regulatory nightmare of conflicting regulations, today's announcement promises the harmony of a consistent federal program. That will allow us to focus on making real progress.

And anything that helps us get to our real job of making and selling cars, while retaining our commitment to keep cars with new technology in an affordable price range, is a smart move.

And it's true that millions of jobs depend on the auto industry, so giving the industry some much-needed certainty about where we need to be in coming years is crucial.

The president showed he understands the importance of this when he said recently that he wants "a strong, viable, competitive auto industry that is giving workers an opportunity to build a great product, take pride in that product, and continue to support their families and build communities that are strong." Our sentiments exactly.

In short, the Obama Administration made a decision at the intersection of three critical issues facing our country, and with one stroke made the choice that will make progress on all three.

That's exactly the kind of leadership we were hoping for.