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Obama urges Congress to earmark $2bn for electric car research Obama urges Congress to earmark $2bn for electric car research
(about 1 hour later)
Barack Obama will use a visit to a Chicago-area lab on Friday to call on Congress to set aside $2bn over the next decade to fund research into a next generation of electric cars.Barack Obama will use a visit to a Chicago-area lab on Friday to call on Congress to set aside $2bn over the next decade to fund research into a next generation of electric cars.
The White House said the Energy Security Trust, which Obama first proposed in his state of the union address, would use royalties from oil and gas drilling on public lands and waters and would not add to the deficit. The White House said the Energy Security Trust, which Obama first proposed in his state of the union address, would use royalties from offshore oil and gas drilling in public waters and would not add to the deficit.
But the proposal – which would divert $200m a year over 10 years to the research fund, remains a hard sell in Congress.But the proposal – which would divert $200m a year over 10 years to the research fund, remains a hard sell in Congress.
The White House said the money would help fund research into "breakthrough" technologies, such as advanced batteries for electric cars, or biofuels made from switch grass rather than corn ethanol.The White House said the money would help fund research into "breakthrough" technologies, such as advanced batteries for electric cars, or biofuels made from switch grass rather than corn ethanol.
Officials chose Argonne Labs, outside Chicago, because the facility led research into electric car batteries.Officials chose Argonne Labs, outside Chicago, because the facility led research into electric car batteries.
The fund was first proposed by a non-partisan group of former generals and military executives, called Securing America's Future Energy. However, the original proposal called for a much larger fund, with some $500m in annual investment.The fund was first proposed by a non-partisan group of former generals and military executives, called Securing America's Future Energy. However, the original proposal called for a much larger fund, with some $500m in annual investment.
Obama incorporated the idea into his state of the union address, pitching the trust as part of his plan for job creation, arguing that America needed to retain its technological edge to remain competitive in the global economy.Obama incorporated the idea into his state of the union address, pitching the trust as part of his plan for job creation, arguing that America needed to retain its technological edge to remain competitive in the global economy.
White House officials said much research remains under-funded by the private sector, unless there Is a direct commercial application. A fund would also free research labs from Congress, and the uncertainties of appropriation cycles.White House officials said much research remains under-funded by the private sector, unless there Is a direct commercial application. A fund would also free research labs from Congress, and the uncertainties of appropriation cycles.
"(M)uch of our new-found energy is drawn from lands and waters that we, the public, own together," Obama said in January. "So tonight, I propose we use some of our oil and gas revenues to fund an energy security trust that will drive new research and technology to shift our cars and trucks off oil for good.""(M)uch of our new-found energy is drawn from lands and waters that we, the public, own together," Obama said in January. "So tonight, I propose we use some of our oil and gas revenues to fund an energy security trust that will drive new research and technology to shift our cars and trucks off oil for good."
In his remarks on Friday, Obama is expected to once again cast the Energy Security Trust as a potential job creator. But he is expected, too, to frame the issue in terms of climate change, arguing that research into advanced vehicles, such as electric cars, would help reduce the emissions that cause climate change.In his remarks on Friday, Obama is expected to once again cast the Energy Security Trust as a potential job creator. But he is expected, too, to frame the issue in terms of climate change, arguing that research into advanced vehicles, such as electric cars, would help reduce the emissions that cause climate change.
Even so, the initiative is on a much more modest scale than campaigners had hoped for during Obama's second term. The White House has all but conceded that there is no chance of moving a climate law through Congress. Officials have also ruled out the idea of a carbon tax, leaving Obama to focus on relatively small-scale projects like the Energy Security Trust.Even so, the initiative is on a much more modest scale than campaigners had hoped for during Obama's second term. The White House has all but conceded that there is no chance of moving a climate law through Congress. Officials have also ruled out the idea of a carbon tax, leaving Obama to focus on relatively small-scale projects like the Energy Security Trust.
The White House said Obama's proposal would not open up areas of land or water where drilling is currently banned. Instead, they are counting on increased production to spin off additional revenues that could be used to fund research. The government currently collects more than $6bn in oil and gas royalties. The White House said Obama's proposal would not open up areas where drilling is currently banned. Instead, they are counting on increased production to spin off additional revenues that could be used to fund research. The government currently collects more than $6bn in oil and gas royalties.
But the fund would still need approval from Congress – and that is expected to be difficult with Republicans predisposed to see any diversion of royalties as a new tax.But the fund would still need approval from Congress – and that is expected to be difficult with Republicans predisposed to see any diversion of royalties as a new tax.
The White House said it had been reaching out to Congress on the fund. Lisa Murkowski, an Alaska Republican, has proposed a similar idea – although her version would require an expansion of drilling.The White House said it had been reaching out to Congress on the fund. Lisa Murkowski, an Alaska Republican, has proposed a similar idea – although her version would require an expansion of drilling.
That could be a sticking point for Obama's initiative. House Republicans have been pushing for an expansion of oil and gas drilling to boost government revenues.That could be a sticking point for Obama's initiative. House Republicans have been pushing for an expansion of oil and gas drilling to boost government revenues.
Obama's use of oil and gas royalties for research – even to get cars off oil is also running into criticism from environmental groups. The group 350.org, which has led opposition to the Keystone XL pipeline, announced a protest outside Argonne labs on Friday afternoon.Obama's use of oil and gas royalties for research – even to get cars off oil is also running into criticism from environmental groups. The group 350.org, which has led opposition to the Keystone XL pipeline, announced a protest outside Argonne labs on Friday afternoon.