The legislation will "save consumers money and reduce our impact on the environment," said Democrat Jeff Bingaman of New Mexico, the chairman of the Senate Energy Committee and a co-sponsor of the bill.

The legislation targets gasoline demand, which accounts for the biggest part of US petroleum use. Under the bill, the Energy Department would have to come up with a plan to slash gasoline consumption by 20 percent by 2017, 35 percent by 2025 and 45 percent by 2030.

"At the heart of our national security is assuring our energy security," said Republican Richard Lugar of Indiana and another bill co-sponsor. "Most oil and natural gas in the world is controlled by governments, many of which are in tumultuous regions and in countries hostile to the United States."

A Senate aide said the 20 percent cut in gasoline demand is similar to the energy savings plan that President George W. Bush's has sent to Congress, but the Senate legislation goes further by setting more gasoline reduction goals in the years ahead.

To help reduce gasoline consumption, the legislation would also authorize the Energy Department to issue loan guarantees for fuel-efficient vehicle manufacturers and related parts suppliers.

A sweeping energy bill passed by Congress two years ago provided automakers with such financial incentives, which would require the government to repay a large portion of the commercial financing for a new or updated plant in case the borrowing automaker defaulted on the original loan.

The new Senate bill would expand the loan guarantees to suppliers, including companies that make parts for hybrid and advanced diesel vehicles.

Democrat Ken Salazar of Colorado said the loan guarantees are intended to encourage the development of vehicles that get better gasoline mileage and not to provide a backdoor government bailout for US automakers or their suppliers that are in financial trouble.

Other provisions in the bill would:

* Require the federal government to increase its purchases of renewable electricity to 10 percent of total supply by 2010 and 15 percent by 2015.

* Reduce energy consumption in existing federal buildings by 30 percent by 2015.

* Create appliance energy efficiency standards for dishwashers, clothes washers, refrigerators and dehumidifiers, saving consumers US$12 billion annually in energy costs.

* Add US$750 million in government funds to help weatherize low-income family homes with insulation and storm windows.