President Barack Obama has plans to impose a $10 per barrel tax on oil as part of his 2017 budget.

Revenue from that tax would be used to fund clean transportation and other climate-focused initiatives. Oil companies would be on the hook for the tax, which would be introduced over a five-year period.

Some possible beneficiaries would be more efficient transportation technology, such as autonomous cars and high-speed rail, as well as tech focused on reducing emissions from the current U.S. transportation system. The tax would most likely be passed on to consumers at the pump. The proposal earmarks some $20 billion for traffic reduction/easing commuting; $10 billion for state and local climate and transport initiatives; and $2 billion for green vehicle and aircraft research.

"By placing a fee on oil, the president's plan creates a clear incentive for private sector innovation to reduce our reliance on oil and at the same time invests in clean energy technologies that will power our future," said a statement from the White House.

For the tax to be enacted, it would have to pass through a Republican-controlled congress, though. The American Petroleum Institute has already said the tax would be a non-starter with both oil companies and consumers, who stand to pay as much as 25 cents more per gallon for their gasoline.

"Make no mistake, this is an energy consumer tax disguised as an oil company fee," Neal Kirby, a spokesman for the Independent Petroleum Association of America told Bloomberg. "At a time when oil companies are going through the largest financial crisis in over 25 years, it makes little sense to raise costs on the industry."

Americans spend about $140 billion a year on gasoline.

In after-hours trading, shares of Exxon Mobil Corp. (XOM) dropped 0.34%, Chevron Corp. (CVX) dropped 0.26%, Valero Energy Corp. (VLO) dropped 0.23% and Marathon Petroleum Corp. (MPC) was down 0.05%.

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