President Obama Introduces Clean Transportation Initiative, Will Slap $10 Per Barrel Charge On Oil

The White House

on Thursday a new initiative to finance clean transportation. President Obama is proposing a $10 per barrel charge on oil to fund green transportation initiatives as part of his final budget request. Oil companies will be responsible for the fee which will be introduced over the course of the next 5 years. The White House also noted that the plan has a 3-point objective: 1) reduce carbon pollution by creating incentives to reduce the reliance on oil, 2) strengthening the economy as the plan would support hundreds of thousands of new jobs each year, and 3) create safer transportation methods including public transit and rail. "For too long, bipartisan support for innovative and expansive transportation investment has not been accompanied by a long-term plan for paying for it," the White House said in its press release. "We need a sustainable funding solution that takes into account the integrated, interdependent nature of our transportation system. Travelers choose between walking, biking, driving, flying, and taking the train; and companies choose between trucks, barges, airplanes and rail lines. So to meet our needs in the future, we have to make significant investments across all modes of transportation. And our transportation system is heavily dependent on oil. That is why we are proposing to fund these investments through a new $10 per barrel fee on oil paid by oil companies, which would be gradually phased in over five years."