The United States is the world’s largest energy consumer, and increasing gasoline consumption is the single most important factor behind the rising American dependence on foreign oil.

In order to lessen long-term demand for gasoline in the United States and thereby reduce the chances of gasoline price spikes, rising oil imports, and related hardship to the U.S. economy from oil price volatility, we recommend the following policies be adopted in the United States:

1. Raise the U.S. corporate average fuel efficiency (CAFE) standards to 50 miles per gallon;
2. Negotiate to have an international CAFE standard among major oil consuming countries as

   part of a global climate agreement;

3. Phase in a higher federal gasoline tax to maintain conservation gains;
4. Require industry to hold average minimum gasoline inventories;
5. Establish a special diplomatic energy envoy to China;
6. Substantially increase federal spending on new energy technologies, energy efficiency, and

   alternative energy; and

7. Avoid overly complex fuel policies to restrict carbon in the transportation sector, such as a

   national low carbon fuel standard (LCFS).