Obama Proposes Oil Tax to Fund Clean Transportation
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President Obama hopes to add a $10 tax for every barrel of oil that would fund investments in clean transportation technology as part of his proposed 21st Century Clean Transportation Plan.
The plan would increase investments in clean transportation infrastructure by approximately 50%, while refining current investments, according to a release from the White House.
The aim of the proposed plan is to reduce greenhouse gas (GHG) emissions, enhance transportation options, reward state and local governments for innovations in clean transportation technology, and push forward the integration of autonomous vehicles as well as intelligent transportation systems and low-carbon technologies.
The tax would be phased in over a five year period and it would add approximately $20 billion in funding per year into the study and expansion of clean transportation technologies such as clean connected vehicle research, according to a report from NGT News.
He also called for a nearly $2 billion-a-year investment into clean and connected vehicle research and development, which would also expand the Diesel Emissions Regulation Act Grant Program and help with the creation of a regional alternative fuel infrastructure.