Obama proposes $10-per-barrel tax on oil production to fund green infrastructure

Updated Feb 5, 2016

President Barack Obama is aiming to implement more measures to combat climate change, and this time he’s eyeing oil companies to foot the bill.

The Hill reported that the White House announced Obama will propose with his budget request next week a $10-per-barrel fee on oil production in order to fund a new $32.4 billion per-year “green transportation plan.”

The plan would try to cut carbon emissions by funding public transportation, an urban planning initiative and research on clean vehicles.

“By placing a fee on oil, the president’s plan creates a clear incentive for private sector innovation to reduce our reliance on oil and at the same time invests in clean energy technologies that will power our future,” the White House said.

The plan follows the president finalizing carbon cuts to the energy sector in 2015. Moving to the transportation sector, the president hopes to cut back on the carbon footprint of the industry—which makes up 30 percent of all carbon emission in the U.S.

“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,” National Economic Council director Jeff Zients said.

Obama’s new plan would annually send $20 billion to public transit, $10 billion to new federal funding for cities and states to cut carbon emissions and another $2.4 billion into clean vehicle research and innovation.

However, the plan doesn’t seem likely to go anywhere with opposition from the Republican-controlled Congress.

“President Obama’s proposed $10 per barrel tax on oil is dead on arrival in the House. From day one of President Obama’s Administration, he has waged open warfare on American energy and his radical policies have cost jobs while increasing costs on hard-working families. Washington spending is already too high, and the best way to create more jobs and get our economy back on track is by cutting taxes and controlling spending,” Majority Whip Steve Scales (R-Louisiana) said. The House will kill this absurd proposal, and instead focus on lowering costs and growing our economy.”