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The Administration should increase the royalty rate on drilling activities, and these revenues should be dedicated to a clean energy innovation trust fund.

Just a five percentage point increase in the offshore royalty rate could produce an additional $2 billion in revenues—and potentially much more—in the coming years. Current rates are below those in many other industrialized countries, and increasing royalty rates would enable the United States to harness the economic value of fossil fuel reserves for direct clean energy investment. The Administration should move forward with a royalty rate increase soon, while Congress should create a trust fund to ensure new revenues from drilling are dedicated to clean energy innovation.