Obama to push $10-per-barrel oil tax for green transportation plan
Obama will look to assess a $10 fee on every barrel of oil.
President Obama will propose a $10-per-barrel fee on oil production to fund a new green transportation plan, the White House announced Thursday.
The proposal would go toward a $32.4 billion annual push to green the transportation sector by funding public transit, an urban planning initiative and clean vehicle research, the White House said in a fact sheet. Obama will include the plan in the budget request he releases next week.
The plan will likely die in the GOP-controlled Congress, which will vet Obama’s budget request before writing spending bills later this year.
But the proposal represents a new front in Obama’s climate change end-game: After finalizing carbon reduction regulations for the electricity sector last year, he is turning his attention back to the transportation sector, which accounts for 30 percent of American carbon emissions every year.
“The president’s plan does what we need to once again have a transportation system that is a source of American strength while at the same time taking steps to reduce carbon emissions and fight climate change,” Jeff Zients, the director of the National Economic Council, told reporters Thursday.
Charging the fee to oil companies, the White House said, is both a funding mechanism for the transportation initiative and an incentive for the private sector to move toward cleaner fuel.