President Obama to Create ‘Energy Security Trust’ for Oil-Free Vehicle Research image

President Obama plans to create an “Energy Security Trust” to fund the development of oil-free vehicles.

Obama’s plan to “shift our cars and trucks off oil for good” only means that the White House not only gives up on EVs, but will redouble its effort for biofuels and electric vehicles, which already got significant funding during the first term of President Obama. Although in 2012 sales of battery-electric vehicles and plug-in hybrids have tripled to almost 53,000, the number is still under the administration’s target.

The Obama Administration has been harshly criticized for supporting companies such as battery-maker A123 Systems and EV producer Fisker Automotive, which had to file for bankruptcy or suspend operations due to funding woes or low sales. This time Obama said he will use the revenue from gas and oil drilling to fund the research, instead of offering loan guarantee and tax credits.

“If a non-partisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we,” Obama said of the proposed trust. “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.”

As the Obama administration has already applied tougher rules of 54.5 mpg by 2025, which are aimed at forcing automakers to rely on EVs and alternative-fueled vehicles to be able to meet these goals.