President Obama in Illinois Friday will call for the creation of a $2 billion Energy Security Trust, which would take government royalties from offshore oil and gas leasing and use the money for research in green-energy technologies.
Obama hinted at such a proposal in his State of the Union Address and will make the announcement at Argonne National Laboratory, just outside Chicago.
The initiative comes as Republicans pressure Obama to approve construction of the Keystone XL Pipeline, a project that would carry oil from Canada to refineries in Texas. The president has delayed construction of the pipeline because of environmental concerns.
The $2 billion fund would require congressional approval, an unlikely prospect unless the White House agrees to expand offshore oil-and-gas drilling.
Administration officials claim the spending would not add to the deficit, pointing to an expected increase in revenue from oil-and-gas production.
The president will announce the plan at 2:30 p.m. Friday.
