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The document analyzes the U.S. transportation sector's contribution to global warming, noting it is the second-largest source of emissions, primarily driven by light-duty vehicles. It proposes a three-pronged approach: improving vehicle and air conditioning efficiency, transitioning to low-carbon fuels (such as cellulosic biofuels, electricity, and hydrogen), and reducing vehicle miles traveled (VMT) through smart growth and transit expansion. The report details specific fuel economy targets for 2020 and 2030 and advocates for performance-based emission standards over traditional fuel economy standards to better account for non-CO2 emissions and alternative fuels.