President Obama will propose a $10 fee for every barrel of oil to be paid by oil companies in order to fund clean energy transport system, the White House announced Thursday — although Republicans were quick to declare the plan “dead on arrival” in Congress.
The fee would be phased in over five years and would provide $20 billion per year for traffic reduction, investment in transit systems and other modes of transport such as high-speed rail, the White House said. It would also offer $10 billion to encourage investment in clean transport at the regional level.
Obama is expected to formalize the proposal Tuesday when he releases his final budget request to Congress. However, the proposal immediately faced resistance from Republicans.
“Once again, the president expects hardworking consumers to pay for his out of touch climate agenda,” House Speaker Paul Ryan said in a statement, arguing it would lead to higher energy prices and hurt poor Americans.
Ryan went on to describe Obama’s plan as “dead on arrival” in Congress.