Obama Seeks $2 Billion in Research on Cleaner Fuels

With few options available for financing his clean-energy ambitions, President Obama on Friday proposed diverting $2 billion in revenue from federal oil and gas leases over the next decade to pay for research on advanced vehicles.

Mr. Obama visited the Argonne National Laboratory near Chicago to tour its state-of-the-art research facilities and to promote his idea, first proposed in last month’s State of the Union address, to use oil and gas money to find ways to replace hydrocarbons as the primary fuel for the nation’s cars, trucks and buses.

The idea enjoys some bipartisan and business support, but is likely to encounter strong resistance from Congressional Republicans, who will portray it as a tax on energy producers. The White House says the money will come from growth in drilling revenue from leases on public lands and waters over the next decade and is not a new tax.

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