(AP/Rick Bowmer)
Obama proposed the idea of an energy security trust last month in his State of the Union address, but he was putting a price tag on the idea during a trip Friday to the Argonne National Laboratory outside Chicago — $2 billion over 10 years. The White House said the research would be paid for with revenue from federal oil and gas leases on offshore drilling and would not add to the deficit.
The money would fund research on "breakthrough" technologies such as batteries for electric cars and biofuels made from switch grass or other materials. Researchers also would look to improve use of natural gas as a fuel for cars and trucks.
The proposal is modeled after a plan submitted by a group of business executives and former military leaders who are committed to reducing U.S. oil dependence. The group, called Securing America's Future Energy, is headed by FedEx Corp. Chairman and CEO Frederick W. Smith and retired Marine Corps Gen. P.X. Kelley. The nonpartisan group says its goal is to "break oil's stranglehold on the transportation sector" through alternatives such as electric cars and heavy-duty trucks fueled by natural gas, but it had proposed a much larger $500 million annual investment.
Creation of the trust would require congressional approval at a time of partisan divide over energy issues. Obama tried to appeal to both parties by pitching the policy not just as an environmental issue but as a job-creation plan that would help the United States remain a technology leader.
"If a nonpartisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we," Obama said in his State of the Union address. "Let's take their advice and free our families and businesses from the painful spikes in gas prices we've put up with for far too long."
There were signs agreement may be possible. Alaska Sen. Lisa Murkowski has called it "an idea I may agree with."
Murkowski, senior Republican on the Senate Energy Committee, did not fully endorse the plan, which is similar to one she has proposed to use revenue from drilling for oil and natural gas on public lands that previously were off-limits to energy production to pay for research on new energy technologies.
White House officials said the president's proposal would not require drilling on federal lands or water where it is now prohibited. Instead, they are counting on increased production from existing sites, along with efficiencies from an administration plan to streamline drilling permits. The government collects more than $6 billion a year in royalties from production on federal lands and waters.
Argonne is one of the Energy Department's largest national laboratories for scientific and engineering research, staffed by more than 1,250 scientists and engineers. White House officials said it was chosen as the site of the president's speech because of its tradition of research into vehicle technologies.
You can't make ethanol out of corn without it costing more than gasoline. The fuel mileage is about 15 percent less using nearly pure ethanol and it costs less than half of gasoline and burns way more clean than gasoline. You can go 15,000 miles or more between oil changes and up to 25,000 miles or more if you use an oil analysis report to check when it really needs changing. Since there's little to no particulates to hold in suspension, the oil will last a really long time. Don't you think that the car manufacturer's are the ones lobbying to hold back on using ethanol in our country since their car selling would be cut in half with car engines lasting well over 500,000 miles and up to a million miles or more? The transmission shops would like it but the new car manufacturers and dealers would not.
"The White House Office of Management and Budget, which includes the regulatory affairs office, didn't respond to a request for comment.
The Brazilian fuel is in demand in part because domestically produced advanced fuels—from corn stalks or wood chips, for instance—haven't become available in large quantities, as lawmakers had hoped.
In 2012, about 92% of the advanced fuel that counted toward the quota was imported, according to EPA data. The Renewable Fuels Association, citing its own analysis of U.S. trade data, said the bulk of the imported fuel was ethanol made from Brazilian sugarcane."
"Sugar cane, the main source of ethanol made in Brazil, already grows in many of the countries seen as potential producers of the biofuel.
Cane produces more energy than it consumes during the ethanol-making process, unlike corn, the basis for U.S. ethanol."
"Brazil is renowned for being a world leader in ethanol use and this telling statistic bears that out: According to Petrobras CFO Almir Barbassa ethanol now powers more than 50% of all the light vehicles in the nation. Biofuels Digest quotes Barbassa as saying that gasoline has now become "the alternative fuel":In fact Petrobras predicts that by 2020 that the gasoline market for light vehicles will shrink by 17%, with ethanol use increasing.
The reason ethanol has moved passed the tipping point? Petrobras touts the fact that improvements in production processes have allowed ethanol to be priced 40% cheaper than gasoline.
Overall though, ethanol still accounts for about 16% of Brazil's overall energy usage, with petroleum products still solidly dominating."