Like everything else, I think ethanol or biodiesel could fill an important niche for critical liquid fuel powered transportation needs. Beyond that, I say that conservation and/or price demand destruction will take care of most of the 110 million barrels of oil.

I agree they should include some more market oriented strategies. And Hydrogen seems very dubious at this point.

When government tries to solve problems that are far from its competence the results could be disastrous.
I also think that ethanol + biodisel have their place but my estimate is that in this case they can achive 5 to 10% of the necessarry reduction at the very best. If the government wanted to do something really useful it would start to finance relocalization and building the necesserry infrastructure - isn't that what the governments are supposed to be doing by definition? This would be much more useful than the proposed quasisolutions. Yet quasi and partial solutions are the most preffered by them because they can win you elections while the really hard ones will most likely throw you out of the office.

P.S. Sometimes I start to fear that the next day I'll wake up in a totalitarian country again (or am I already?...). Democracy doesn't seem to work for the challenges to come.