One of the most promising ways of reducing our dependence on oil imports—or oil across the board—is by transforming our transportation sector from one that relies almost solely on oil to one increasingly powered by electricity. Plug-in hybrid electric vehicles (PHEVs), the next generation of hybrids, will help to reduce oil consumption, improve air quality, cut greenhouse gas emissions and strengthen national security.

A joint study by the Electric Power Research Institute and the Natural Resources Defense Council estimated that PHEVs could reduce national oil consumption by as much as 4 million barrels a day by 2050. PHEVs also will play a key role in reducing greenhouse gas emissions. EPRI and NRDC have said that widespread adoption of plug-ins could reduce greenhouse gas emissions from vehicles by more than 450 million metric tons annually in 2050—that’s like taking more than 82 million passenger cars off the road.

Foreign-oil dependence, energy security, global warming, air quality—PHEVs will play a crucial role in addressing each of these policy priorities.

Americans consume a staggering amount of gasoline in our cars and trucks. That’s not good for our economy, our national security, or our environment.

Most of us understand the gravity of the situation. We exacerbate our nation’s economic woes by exporting vast sums of money – hundreds of billions of dollars every year – to support our oil addiction. That money in turn finances people who wish us harm, including Saudi-financed madrassas that promulgate hateful anti-American views, and an Iranian government that is no longer shy about its nuclear ambitions. Our oil consumption also harms the environment by polluting our water and air – the latter increasing the number of chronic lung disorders in Americans such as asthma, lung cancer and emphysema – and contributes to the warming of our planet.

These problems are enabled by one simple fact: last year, oil provided more than 96% of the fuel for our cars and trucks. For most Americans, in most situations today, there is no substitute for oil.

The solution, I believe, is to introduce fuel choice and competition into the market. We can do that by passing a law that says all new cars sold in the United States must be flex fuel vehicles capable of burning any combination of gasoline, ethanol, or methanol.

I have introduced the Open Fuel Standard Act, H.R. 1476, with three of my colleagues – Reps. Bob Inglis (R-SC), Steve Israel (D-NY), and Roscoe Bartlett (R-MD) – to do exactly that. Our bipartisan legislation would require 50% of new cars sold in the United States by 2012, and 80% by 2015, to be flex fuel vehicles.

Sharp minds and powerful people on both ends of the political spectrum – from President Obama to former House Speaker Newt Gingrich – have called for implementation of flex fuel technology.

The largest producers of both ethanol and methanol are all in the western hemisphere, and the United States has by far the greatest production potential for both. Ethanol is made from agricultural products. Methanol can also be made from biomass, as well as from natural gas or coal.

Flex fuel vehicles already exist, and they only cost about $100 more than the same car in a gasoline-only version. Ford, Chrysler, and GM have repeatedly committed to making 50% of new cars flex fuel vehicles by 2012. It is a simple and inexpensive modification that should be standard in cars, like seatbelts or airbags.

Passage of the Open Fuel Standard Act would be a simple but dramatic step toward breaking America’s addition to oil, and securing our energy independence for generations to come.

Many people in the United States tend to think of energy as an “either-or” proposition: We either run our economy on oil and other fossil fuels, or we transition to alternative fuels. The fact is, to meet future needs we’ll require energy from all sources, including oil and natural gas, along with more energy efficiency.

Alternatives can and should play an important role, and our member companies have been investing in them. But the reality is we need all forms of energy. The U.S. Department of Energy estimates that even with significant gains in renewable energy, oil and natural gas will continue to provide more than half of the nation’s energy for decades to come.

So, develop alternatives, yes. But also produce more oil and natural gas – and plan for that by increasing access to them on our public lands and in our federal waters. This will create jobs for Americans, generate revenues, and strengthen our energy security.

Oh lord, on this topic the President has an abundance of choices. Let's begin with a simple one -- a 4% annual improvement in auto fuel efficiency, which everyone agrees is well within reach, would cut our reliance on oil by 2.8% -- the rest is used in moving trains, trucks and planes. To cut oil use by 18% -- the amount we import from Venezuela and the Mid-East, -- would take only six years with that rate of improvement. To cut our total oil use by a more ambitious and appropriate 50% would take only 25 years from this one change alone.

Or take trucks. If we follow Boone Pickens plan and start converting our long distance trucks to natural gas, we'd need to convert about 60% of the trucking fleet to save the same 18%.

Mass transit is another pathway. Doubling our current transit market share would, by 2020, back out imports from the Middle East -- we can get Venezuela's share and more by 2030.

But what the President -- and America -- should really do is combine these three strategies, plus however much truly sustainable, advanced biofuels we can get -- and cut eliminate our use of oil altogether by mid-century.

How hard can this be? When gasoline was approaching $4/gallon (more in some areas), purchases of small, fuel-efficient vehicles soared, use of public transit grew to near-record levels and car-pooling reappeared. Annual vehicle miles traveled fell for the first time in history (I believe). If we really want to do something about oil consumption, whether imported or domestically produced, we need to increase the federal excise tax on gasoline after the economic recovery is well on its way.

We can talk about more stringent fuel economy standards all we want--and they can play a useful role in ensuring that we do not fall back to our old ways during times like these when gasoline prices fall through the floor. But tighter fuel economy standards do nothing to reduce fuel consumption on the part of the more than 200 million vehicles already on the road--vehicles that will be there for a long, long time. And unless gasoline prices are higher than they are today, there will be no market pressure on consumers to demand those more fuel efficient vehicles.

If we want to reduce oil consumption, we need to increase the federal excise tax on gasoline. But our elected leaders find it far easier to complain about the high levels of oil imports than to vote for a measure that would curtail them.

Making America more secure by reducing dependence on foreign oil is an economic, energy, and national security goal that is as critical as it is achievable. In order to meet President Obama’s oil import goal, it is going to take a dramatic shift in how America powers its cars and trucks. The most immediate approach is to replace more of the non-renewable petroleum fuels we import today with renewable liquid transportation fuels produced domestically. Ethanol, biodiesel, and other renewable fuels produced from technologies in development today can make the most direct and immediate impact on our foreign oil dependence, but we cannot afford to wait.

In 2008 alone, the use of 9.2 billion gallons of domestically-produced ethanol reduced America’s demand for imported oil by more than 321 million barrels. That is the equivalent of 10 months of imports from Venezuela alone and $87 million a day not sent to foreign oil producers. Increasing the amount of domestic ethanol we use can go along way to meeting the president’s goal of eliminating the need for oil from Venezuela and the Middle East. In fact, the Renewable Fuels Standard (RFS) that calls for the use of 36 billion gallons of renewable fuel use annually by 2022 will reduce America’s demand for imported oil by 1.26 billion barrels.

To realize this kind of energy security benefit, the Obama Administration must remove the antiquated regulations that limit ethanol blending at 10% per gallon of gasoline for use in standard vehicles. By providing even a modest increase of 2 or 3%, President Obama could take definitive steps toward achieving two of his chief policy objectives: reducing oil imports and creating green jobs. Further study into the increased use of ethanol will demonstrate that larger increases in ethanol blending can be achieved with today’s technologies. Where the final percentage will be is still a matter for science, but early research results demonstrate that blends of up to 20% ethanol are proving compatible with standard vehicle technology on the road today.

Simply increasing the amount of ethanol allowed in a gallon of gasoline won’t achieve the president’s goals alone. Also needed are further investments in infrastructure that allow more Americans to use even greater ethanol blends, such as E85 of 85% percent ethanol. And it will require the adoption and adaption of new technologies to provide synergistic relationships with today’s fueling and vehicle infrastructure. Hybrid technology, including plug-in hybrids, paired with an engine capable of using up to 85% renewable fuel would dramatically reduce oil use and need for imported petroleum. Other technology synergies and increases in vehicle efficiencies will be needed to achieve a greater measure of energy security.

Fulfilling President Obama’s vision is more than possible, but it won’t happen overnight and without some hard work. It will require that we encourage technologies that are today reducing America’s foreign oil tab to mature and evolve while providing an environment in which next generation technologies are allowed to develop.

We must increase the use of renewable fuels by allowing more of the fuel to be blended into gasoline and diesel today.