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Obama: U.S. must shift cars, trucks off oil

LEMONT, Ill. -- Envisioning cars that can go "coast to coast without using a drop of oil," President Barack Obama on Friday urged Congress to authorize spending $2 billion over the next decade to expand research into electric cars and biofuels to wean automobiles off gasoline.

Obama, expanding on an initiative he addressed in his State of the Union speech last month, said the United States must shift its cars and trucks entirely off oil to avoid perpetual fluctuations in gas prices. Citing policies that already require automakers to increase gas mileage, he said he expects that by the middle of the next decade, Americans will have to fill up their cars only half as often.

"We've set some achievable but ambitious goals," Obama said, speaking at Argonne National Laboratory outside Chicago. "The only way to break this cycle of spiking gas prices -- the only way to break that cycle for good -- is to shift our cars entirely, our cars and trucks, off oil."

Friday's speech, with its focus on energy, was designed to draw attention to what the White House says is one of Obama's top agenda items for his second term. The initiative, proposing to spend $200 million a year on research, would be paid for with revenue from federal oil and gas leases on offshore drilling and would not add to the deficit.

The money would fund research on "breakthrough" technologies such as batteries for electric cars and biofuels made from switch grass or other materials. Researchers also would look to improve use of natural gas as a fuel for cars and trucks.

Creation of the trust would require congressional approval at a time of partisan divide over energy issues. Republicans have pushed to expand oil and gas drilling on federal land and water, while Obama and many Democrats have worked to boost renewable energy sources such as wind and solar power.

There were signs agreement may be possible. Alaska Sen. Lisa Murkowski has called it "an idea I may agree with."

White House officials said the president's proposal would not require expansion of drilling to federal lands or water where it is now prohibited.

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