According to a March 15, 2013 press release from the White House, the Obama administration is proposing a new clean energy initiative that will be financed with $2 billion reserved from revenue from oil and gas leases. The new initiative will pay for research and development programs that will create cars that will run on electricity, fuel cells, anything but gasoline. While the proposal is touted as an attempt to bridge Republican and Democratic approaches to energy policy, according to Reuters, Republican approval is far from certain.
The sticking point seems to be the fact that the Obama administration will not actually increased plans for leasing oil and gas fields. The Obama proposal is similar to some Republican proposals, financing clean energy research and development with oil and gas revenues, but is predicated on increasing federal leasing.
Thus far Obama energy policy has proven to be controversial, with embarrassments such as the Solyendra scandal and the continued foot dragging for the approval of the Keystone XL pipeline. But some observers are optimistic that some kind of deal can be negotiated that satisfies both sides of Pennsylvania Avenue and will encourage more oil and gas production while developing alternative energy.
Comments