I. Purpose
The purpose of this policy is to create a sustainable, long-term investment strategy for profits derived from energy resources extracted on federal land. The policy establishes a Federal Energy Trust Fund (FETF) to ensure that these profits benefit both current and future generations by investing in a diversified portfolio of assets, such as equities, real estate, and renewable energy infrastructure. Additionally, the policy directs the use of this fund to pay down national debt, improve critical infrastructure, and provide supplemental funding for the Social Security program.
II. Definitions
- Federal Energy Trust Fund (FETF): A sovereign wealth fund established by the United States to manage and invest profits from energy extraction on federal land, including oil, natural gas, and other mineral resources.
- Federal Lands: Public lands owned and managed by the federal government, including those administered by the Bureau of Land Management (BLM), National Forests, and other federal agencies.
- Profits from Energy Extraction: Net revenue generated from the extraction of oil, gas, coal, and other mineral resources on federal lands, after accounting for extraction costs, royalties, and taxes.
- Sustainable Investments: Investments in a diversified portfolio of assets, including equities (stocks), real estate, renewable energy projects, bonds, and other financial instruments that provide returns while ensuring long-term financial stability.
III. Policy Provisions
- Establishment of the Federal Energy Trust Fund (FETF):
a. A Federal Energy Trust Fund shall be established and managed by an independent board of trustees under the oversight of the U.S. Department of the Treasury.
b. The fund’s purpose is to prudently invest profits derived from energy extraction on federal lands to generate returns that benefit current and future generations of Americans. - Allocation of Energy Extraction Profits:
a. All profits generated from the extraction of energy resources on federal lands, including royalties and lease payments, shall be deposited into the FETF.
b. The distribution of FETF funds will be directed as follows:
- Investment Allocation: At least 50% of annual profits shall be allocated to investments in equities, bonds, real estate, renewable energy infrastructure, and other sustainable assets to ensure long-term growth of the fund.
- Debt Reduction Allocation: Up to 20% of annual profits shall be used to directly pay down the national debt, prioritizing high-interest liabilities to reduce overall federal borrowing costs.
- Infrastructure Improvement Allocation: Up to 15% of annual profits shall be allocated to support national infrastructure improvement projects, including transportation networks, water systems, and broadband expansion.
- Social Security Funding Allocation: The remaining 15% of annual profits shall be dedicated to providing supplemental funding for the Social Security Trust Fund to support the financial stability of the program and ensure that benefits remain secure for current and future beneficiaries.
- Investment Strategy and Management:
a. The FETF shall maintain a diversified portfolio, with investments in both domestic and international equities, fixed-income securities, real estate assets, and renewable energy infrastructure projects, such as wind, solar, and hydroelectric power.
b. A minimum of 20% of the investment portfolio shall be allocated to renewable energy projects, contributing to the transition to a clean energy economy and reducing carbon emissions.
c. The independent board of trustees will engage professional investment managers and conduct an annual review of the investment strategy to ensure optimal returns and alignment with national interests. - Governance and Transparency:
a. The independent board of trustees shall consist of financial experts, economists, and representatives from the Department of the Treasury, Department of Energy, and the Social Security Administration.
b. The FETF shall be subject to annual audits by the Government Accountability Office (GAO) to ensure transparency and accountability in its operations.
c. A public report shall be issued annually detailing the fund’s investment performance, allocation of resources, and the impact of debt reduction, infrastructure improvements, and Social Security contributions. - Restrictions on Fund Use:
a. The FETF shall be restricted in its use to the purposes outlined in this policy, specifically for sustainable investments, paying down the national debt, infrastructure improvements, and supplementing Social Security funding.
b. FETF funds may not be diverted for other federal programs, general budgetary needs, or emergency expenditures unless approved by a supermajority vote of both houses of Congress.
c. FETF funds will be managed by a diversified group and not by global investment firms, with oversight provided by the Energy and Commerce committees in Congress.
IV. Infrastructure Improvement Criteria:
a. Eligible Projects: Infrastructure projects eligible for FETF funding must contribute to the long-term economic and social well-being of the United States, including but not limited to: - Modernization of transportation networks (e.g., roads, bridges, railways, airports). - Expansion and maintenance of water and sewer systems. - Investment in nationwide broadband access and digital infrastructure. - Improvements to energy grid resilience and efficiency. b. Project Selection: An interagency committee, including representatives from the Department of Transportation, Environmental Protection Agency (EPA), and the Department of Commerce, will review and prioritize projects for FETF funding based on their potential economic impact, job creation, and regional needs.
V. Long-Term Goals and Benefits
a. Fiscal Responsibility: By directing a portion of energy profits towards reducing the national debt, this policy aims to improve the fiscal health of the United States and reduce the burden of debt repayment on future generations.
b. Economic Growth: Through a diversified investment approach, the FETF seeks to generate returns that support both immediate and long-term economic stability, providing a steady revenue stream even as fossil fuel extraction diminishes over time.
c. Support for Social Security: By directing a portion of funds to the Social Security Trust Fund, this policy aims to ensure the solvency and stability of Social Security, helping to secure retirement benefits for millions of Americans.
d. Infrastructure Renewal: By investing in critical infrastructure improvements, the FETF aims to enhance the quality of life for Americans, stimulate job creation, and promote economic growth across the country.
VI. Effective Date
This policy shall take effect on the first fiscal year following its approval by Congress. Existing energy leases and revenue streams from federal lands shall be subject to this policy starting from the effective date.
VII. Sunset Clause
This policy shall remain in effect for a period of 30 years, after which it will be subject to a comprehensive review by Congress. The review will assess the fund’s impact on debt reduction, Social Security solvency, investment returns, and infrastructure improvements. Based on the findings, Congress may choose to renew, amend, or terminate the policy.
This policy seeks to ensure that profits from federal energy resources are used in a manner that benefits the nation over the long term. By balancing investment, debt reduction, infrastructure renewal, and support for Social Security, it aims to provide a sustainable financial legacy for current and future generations of Americans.