President Obama to Urge Congress to Divert $2 Billion in Oil Funds Over to Advanced Vehicle Technology

4 years ago by Eric Loveday 10

Obligatory Shot Of The President With The Chevrolet Volt

Obligatory Shot Of The President With The Chevrolet Volt

Later today, President Barack Obama will urge Congress to approve $2 billion in funding for advanced vehicle technologies.  But where’s this money to come from?  How ’bout we take it from oil and gas exploration funds, says Obama…sort of.

President Obama gets into an electric Ford Focus.

President Obama gets into an electric Ford Focus.

Obama will appear today (2:30 PM EST) at the Argonne National Laboratory in suburban Chicago, where he’s expected to present a proposal that calls upon Congress to approve a measure that will see $2 billion in funds generated from oil and gas exploration on federal waters set aside for research and development of advanced vehicle technologies.

According to a White House press release, Obama’s proposal calls for $2 billion dollars over the next decade to be diverted from exploratory oil and gas funds to research for plug-in vehicles, battery technology, CNG and even biofuels.

This idea was first brought up by the Presidents at his recent State of the Union Address, but will become more formalized today when actual details are revealed.

More specifically, Obama wants a share of revenue from oil and gas leases on federal lands put into an “Energy Security Trust,” which can be accessed as needed by the US government to fund advanced vehicle technologies.

Quote from the White House:

“Funds would be set aside from royalty revenues generated by oil and gas development in federal waters of the Outer Continental Shelf..  Revenues are projected to increase over the next several years based on a combination of leasing, production and price trends, with additional revenues potentially generated as a result of reforms being proposed in the (Fiscal Year) 2014 Budget….[the Trust will be created] to invest in breakthrough research that will make the technologies of the future cheaper and better—technologies that will protect American families from spikes in gas prices and allow us to run our cars and trucks on electricity or homegrown fuels.  The Energy Security Trust builds on this historic progress, continuing to increase momentum towards to a cleaner, more efficient fleet that is good for consumers, increases energy independence, and cuts carbon pollution.”

The Energy Security Trust is supported by the Democratic party and even a few Republicans seem to be slowly stepping on board.  But it’s still an uphill battle that, unfortunately, the President seems likely to lose, unless he’s willing to soften his proposal.

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10 responses to "President Obama to Urge Congress to Divert $2 Billion in Oil Funds Over to Advanced Vehicle Technology"

  1. David Murray says:

    I hope it goes to more charging stations.

    1. Bonaire says:

      At business workplaces. Charging stations at the mall won’t cut it for the EV growth curve to accelerate.

      We need everyone talking up fair priced charging capability at their place of work. And at airports, hotels and busy parking garages where people spend 8+ hours a day. A rolluot of more 120V plugs would be fine – really isn’t a huge need for expensive L2 charging stations in these locations. I would thoroughly enjoy plugging in at some of my client sites that I visit. Some are 70 miles away (which is why I drive a Volt).

  2. Roy_H says:

    Previously Obama was decrying the oil industries $4-8B/yr (can’t remember which) tax breaks and subsidies. He wanted to cut it in half. Of course since the oil companies own Congress, that never happened. For the same reason, this will never fly either.

  3. Herm says:

    These are royalties the Feds collect, Obama wants to divert (part of it?) it to electric cars instead of funding school lunches for disadvantaged children or say paying down the debt.. the oil companies dont care what happens to that money, they will either sell the oil to China or to American consumers.

    1. Bonaire says:

      Best way to help disadvantaged children is to get their parents good jobs. I wonder if this could ever happen in our lifetimes?

  4. GeorgeS says:

    We already have bio fuels and electric cars. I’m not sure what this is going to accomplish. I think we need more work going into what happens when our bridge fuel (natural gas) runs out. Right now we have a bridge to nowhere. We need LFTR or cold fusion or IFR or Bill Gates Traveling wave reactor as the ultimate solution to our CO2 problem. We can’t solve the problem completely with solar cells and batteries. At the very least we need to have more Gen3 fission reactors and SMRs ….but that isn’t going to happen with all this cheap NG around.

    The problem is that we are NOT headed in a definable direction. We are just hunting and pecking for a solution……and it is almost too late.

  5. GeorgeS says:

    PS I might point out that Argonne is where IFR came from. The tech has already been developed. It would solve our nuclear waste problem as breeder reactors (or LFTR) can use spent fission fuel as fuel since 80% of the energy is still there.

  6. GeorgeS says:

    or we can let China do it for us. They are currently building LFTR AND Breeder reactors AND Gen3 fission plants while we sit on our hands……and spend 2 bill on some willy nilly research projects.

  7. Open-Mind says:

    More political mumbo-jumbo, much like the recent sequestration double-talk.

    In 2011 ExxonMobil paid $27.3 billion in income tax, Chevron paid $17 billion, and ConocoPhillips paid $10.6 billion.These sums gave the companies rather large effective tax rates. ExxonMobil’s tax rate was 42.9%, Chevron’s was 48.3%, and ConocoPhillips’ was 41.5%. All much higher than the US federal statutory rate of 35%. And they would have paid even more if not for their so-called “tax breaks and subsidies”.

    Note … I’m griping about BIG GOV, not defending BIG OIL.

    I’m a fan of EV technology and consumer tax credits toward the purchase of that technology. The resulting demand generates competition that will improve EV technology far faster than flushing even more billions down the supply-side toilet.

  8. shawn marshall says:

    big oil makes much less in profit per gallon than the government takes in taxes per gallon. Only foreign oil or exported oil should be taxed. Centrally planned economies have never succeeded. Any funds for research gathered in by the government should be disbursed by independent boards composed of industry and academic personnel.