In a statement Friday, Obama said he had ordered Environmental Protection Agency administrator Lisa Jackson to withdraw the proposal, in part because of the importance of reducing regulatory burdens and uncertainty for businesses at a time of rampant uncertainty about an unsteady economy.
The announcement came shortly after a new government report on private sector employment report showed that businesses essentially added no new jobs last month -- and that the jobless rate remained stuck at a historically high 9.1 percent.
The withdrawal of the proposed EPA rule comes two days after the White House, at the request of House Speaker John Boehner, identified seven such regulations that it said would cost private business at least $1 billion each. The proposed smog standard was estimated to cost anywhere between $19 billion and $90 billion, depending on how strict it would be.