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From the AP via the LA Times:
The move completes a six-month process in which the commissioners have been working on a new way to determine a major college football champion. Instead of simply matching the No. 1 and No. 2 teams in the country in a championship game after the regular season, the way the Bowl Championship Series has done since 1998, the new format will create a pair of national semifinals. No. 1 will play No. 4, No. 2 will play No. 3.
The winners will advance to the championship.
The teams will be selected by a committee, similar to the way the NCAA basketball tournament field is set.