Schmidt talked about to wean the U.S. off fossil fuels by 2030. He called on the U.S. government to tie any bailouts of the U.S. auto industry to fuel economy standards, and for more states to follow California's lead and create regulatory incentives for power companies to save energy.

If U.S. automakers began to produce plug-in hybrid electric vehicles, customers could double their gas mileage, he said. Some research has shown that through hybrid power and lighter materials, vehicles could increase gas mileage by a factor of 30, Schmidt said. Those technologies need to be put into action to wean the U.S. from its addiction to foreign oil, he said.

In addition, the U.S. government needs to give billions of dollars worth of tax breaks to producers of solar, wind and other alternative energies, he added.

"We can reduce energy costs, create jobs and generate enormous economic benefits for generations to come," he said. "The missing ingredient has been political leadership."

Schmidt laid out a wish list for legislation in the next Congress, with patent reform and loosened standards for allowing foreign graduate students to stay and work in the U.S. at the top of the list. Schmidt's call for allowing more foreign workers to come to the U.S. may conflict with Obama's; the president elect has been cool to the idea of expanding immigration programs such as the H-1B skilled worker program.