In November, Californians will vote on an initiative that would tax oil producers by $4 billion to fund alternative and renewable energy sources and to encourage conservation and energy independence. One of the initiative's primary goals is to reduce California's dependence on oil by 25 percent over the next 10 years.
Oil producers who drill in California currently pay very little to do so; Proposition 87, the Clean Alternative Energy Program, would set drilling fees to be comparable to those in Oklahoma, Alaska, and Texas.
Money raised by Proposition 87 would be directed for several purposes: university research; consumer rebates for the purchase of alternative fuel vehicles; incentives for increased use of renewable and alternative energy resources such as wind and solar power, biodiesel, hydrogen, and ethanol; assistance to local governments to upgrade their vehicles; funds for new energy technologies; workforce training and an increase in infrastructure for alternative fuels.
Ads for and against Proposition 87 began running on California television this week, and the opponents - primarily Chevron (who has given $12.8 million to fight Prop 87), Aera Energy, who are owned by Shell and ExxonMobil and who have given $12.6 million, and Occidental - are gearing up for an expensive battle. The primary donors in favor of the initiative have been individuals, including venture capitalists. Needless to say, they are far outmatched by the oil money. It is expected to be one of the most expensive primary battles this fall.
The Attorney General has determined that the costs of Proposition 87 cannot legally be passed on to California consumers. Experts disagree on whether Prop 87 will have a large impact on gas prices in California.
Prop 87 has won the endorsements of the Sierra Club, Public Citizen, the American Lung Association, the Coalition for Clean Air, Latino Urban Forum, the Natural Resources Defense Council, the Center for Environmental Health, the Interfaith Environmental Council, the AFL-CIO, the Union of Concerned Scientists, the Gray Panthers, and many others. Phil Angelides has endorsed the proposition; Arnold Schwarzenegger, notably, has not.
According to the most recent polls, a bare majority of Californians support this initiative (52 percent in a late July survey by the Field poll, with 31 percent opposed), but most Californians are only beginning to learn about it.
It seems to me that this initiative will have great benefits for California; in improving our energy independence, in cleaner air and reduced environmental impacts, and in creating new jobs and new energy technologies. I'm looking forward to voting yes on Prop 87.
You can read more about the initiative at http://www.yeson87.org/ . The anti site is located at http://www.nooiltax.com/ .