California Proposition 87 (2006)
Encyclopedia
California Proposition 87 was a proposition
on the ballot for California
voters for the November 7, 2006 general election
, officially titled Alternative Energy. Research, Production, Incentives. Tax on California Oil Producers. It was rejected by the voters, 54.7% opposed to 45.3% in favor.
The proposition would have established a "$4 billion program with goal to reduce petroleum consumption by 25%, with research and production incentives for alternative energy, alternative energy vehicles, energy efficient technologies, and for education and training", funded by a "tax of 1.5% to 6% (depending on oil price per barrel) on producers of oil extracted in California."
of California, Winston Hickox, former Secretary of the California Environmental Protection Agency and Jamie Court, President of the Foundation for Taxpayer and Consumer Rights (now Consumer Watchdog (USA)
. The California Voter Information Guide for the 2006 election contained the following arguments in favor of passage of Proposition 87:
Another pro 87 argument was that the, "tax will be essentially a tax on extracting oil in California. This tax exists in other states. Alaska drillers pay a 15% tax, Texas drillers pay a 4.6% tax and Louisiana drillers a 12.5% tax. This tax on the California drillers would only be between 1 - 6% depending on the price of a barrel of oil. California is the only large producing state in the US without such a tax." This tax would have been on exporters of oil in California and the language in the proposition prohibited the cost to be passed on to consumers.
Among those claimed to support Proposition 87 were doctors and nurses (the voter guide states "the Coalition for Clean Air and California doctors and nurses ALL SUPPORT"), Nobel-prize-winning scientists, environmental and consumer groups, educators, and labor and agriculture groups. The proponents of 87 point out that the campaign against 87 was funded by the oil industry.
Most of the "Yes on 87" campaign was funded by Steve Bing
, a real estate developer, film producer, and philanthropist, who contributed US$
39,058,000 as of October 23, 2006. Google
co-founder Larry Page
gave $1,000,000.
, former vice-president Al Gore
, then-Senator Barack Obama
, Nobel-prize-winning
scientist Dr. Mario Molina
, former Secretary of State Madeleine Albright
, former U.N. Ambassador Richard Holbrooke
, Senator Dianne Feinstein
, Democratic gubernatorial nominee Phil Angelides
, State Superintendent of Public Instruction Jack O'Connell
, the American Lung Association
of CA, the California League of Conservation Voters
, the Coalition for Clean Air, Americans for Energy Independence, the Foundation for Taxpayer and Consumer Rights, and venture capitalist Vinod Khosla
.
($30,000,000) and Aera Energy ($27,000,000), more than any other proposition in history. The majority of the remaining contributors opposed to 87 were other oil production companies.
Other opponents included Larry McCarthy, President of the California Taxpayers Association (Cal-Tax), Daniel Cunningham, President of the California Small Business Alliance, Marian Bergeson, Former President of the California School Board Association, Kevin R. Nida, President of the California Firefighters Association, Ray Holdsworth, Former Chair of the California Chamber of Commerce, and Allan Zaremberg, President of Californians Against Higher Taxes. In the California Voter Guide for the 2006 election, they propose the following arguments opposed to passage of Proposition 87.
Dr. Philip Romero, former Chief Economist
for the California Governor's Office
was quoted as saying "Proposition 87 attempts a worthy goal, but does so in a counterproductive and costly manner. It would shrink California's oil supply, increase dependence on foreign oil, and result in higher gasoline prices."
opposed it as well as Republican state senator Tom McClintock
.
Initiative
In political science, an initiative is a means by which a petition signed by a certain minimum number of registered voters can force a public vote...
on the ballot for California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
voters for the November 7, 2006 general election
General election
In a parliamentary political system, a general election is an election in which all or most members of a given political body are chosen. The term is usually used to refer to elections held for a nation's primary legislative body, as distinguished from by-elections and local elections.The term...
, officially titled Alternative Energy. Research, Production, Incentives. Tax on California Oil Producers. It was rejected by the voters, 54.7% opposed to 45.3% in favor.
The proposition would have established a "$4 billion program with goal to reduce petroleum consumption by 25%, with research and production incentives for alternative energy, alternative energy vehicles, energy efficient technologies, and for education and training", funded by a "tax of 1.5% to 6% (depending on oil price per barrel) on producers of oil extracted in California."
Arguments in favor
Proponents of 87 included Laura Keegan Bordeau, CEO of the American Lung AssociationAmerican Lung Association
The American Lung Association is a voluntary health organization whose mission is to save lives by improving lung health and preventing lung disease.-History:...
of California, Winston Hickox, former Secretary of the California Environmental Protection Agency and Jamie Court, President of the Foundation for Taxpayer and Consumer Rights (now Consumer Watchdog (USA)
Consumer Watchdog (USA)
Consumer Watchdog is a non-profit, progressive organization which advocates for taxpayer and consumer interests, with a focus on insurance, health care, political reform, privacy and energy....
. The California Voter Information Guide for the 2006 election contained the following arguments in favor of passage of Proposition 87:
Passage of 87 will make the oil industryPetroleum industryThe petroleum industry includes the global processes of exploration, extraction, refining, transporting , and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline...
pay from their profits for their fair share of research into cleaner energy. It would also make the oil industry pay the same drilling fees as they pay in other states. The proposition would make it illegal for energy companies to pass the added costs on to consumers via increased gas prices. The passage of 87 would also create thousands of jobs and decrease American dependence on oil from Saudi ArabiaSaudi ArabiaThe Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
and IraqIraqIraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
. Consumers would be able to receive rebates for purchasing alternative fuelAlternative fuelAlternative fuels, known as non-conventional or advanced fuels, are any materials or substances that can be used as fuels, other than conventional fuels...
vehicles and incentives for renewable energyRenewable energyRenewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
sources resulting in cleaner air and improved health. The tax increase and oversight would be done without creating a new bureaucracy by utilizing an existing state agency.
Another pro 87 argument was that the, "tax will be essentially a tax on extracting oil in California. This tax exists in other states. Alaska drillers pay a 15% tax, Texas drillers pay a 4.6% tax and Louisiana drillers a 12.5% tax. This tax on the California drillers would only be between 1 - 6% depending on the price of a barrel of oil. California is the only large producing state in the US without such a tax." This tax would have been on exporters of oil in California and the language in the proposition prohibited the cost to be passed on to consumers.
Among those claimed to support Proposition 87 were doctors and nurses (the voter guide states "the Coalition for Clean Air and California doctors and nurses ALL SUPPORT"), Nobel-prize-winning scientists, environmental and consumer groups, educators, and labor and agriculture groups. The proponents of 87 point out that the campaign against 87 was funded by the oil industry.
Most of the "Yes on 87" campaign was funded by Steve Bing
Steve Bing
Stephen Leo "Steve" Bing is an American businessman, film producer, and donor to progressive causes. He is the founder of the Shangri-La business group, an organization with interests in property, construction, entertainment, and music....
, a real estate developer, film producer, and philanthropist, who contributed US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
39,058,000 as of October 23, 2006. Google
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
co-founder Larry Page
Larry Page
Lawrence "Larry" Page is an American computer scientist and internet entrepreneur who, with Sergey Brin, is best known as the co-founder of Google. As of April 4, 2011, he is also the chief executive of Google, as announced on January 20, 2011...
gave $1,000,000.
Endorsements in favor of 87
Amongst Prop 87's supporters were former President Bill ClintonBill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
, former vice-president Al Gore
Al Gore
Albert Arnold "Al" Gore, Jr. served as the 45th Vice President of the United States , under President Bill Clinton. He was the Democratic Party's nominee for President in the 2000 U.S. presidential election....
, then-Senator Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
, Nobel-prize-winning
Nobel Prize in Chemistry
The Nobel Prize in Chemistry is awarded annually by the Royal Swedish Academy of Sciences to scientists in the various fields of chemistry. It is one of the five Nobel Prizes established by the will of Alfred Nobel in 1895, awarded for outstanding contributions in chemistry, physics, literature,...
scientist Dr. Mario Molina
Mario J. Molina
Mario José Molina-Pasquel Henríquez is a Mexican chemist and one of the most prominent precursors to the discovering of the Antarctic ozone hole. He was a co-recipient Mario José Molina-Pasquel Henríquez (born March 19, 1943 in Mexico City) is a Mexican chemist and one of the most prominent...
, former Secretary of State Madeleine Albright
Madeleine Albright
Madeleine Korbelová Albright is the first woman to become a United States Secretary of State. She was appointed by U.S. President Bill Clinton on December 5, 1996, and was unanimously confirmed by a U.S. Senate vote of 99–0...
, former U.N. Ambassador Richard Holbrooke
Richard Holbrooke
Richard Charles Albert Holbrooke was an American diplomat, magazine editor, author, professor, Peace Corps official, and investment banker....
, Senator Dianne Feinstein
Dianne Feinstein
Dianne Goldman Berman Feinstein is the senior U.S. Senator from California. A member of the Democratic Party, she has served in the Senate since 1992. She also served as 38th Mayor of San Francisco from 1978 to 1988....
, Democratic gubernatorial nominee Phil Angelides
Phil Angelides
Philip Nicholas "Phil" Angelides is an American politician who was California State Treasurer and the unsuccessful Democratic nominee for Governor of California in the 2006 elections...
, State Superintendent of Public Instruction Jack O'Connell
Jack O'Connell
Jack T. O'Connell is an American politician and the former 26th California State Superintendent of Public Instruction, having been elected to the post in November 2002 with 61% of the vote. He was re-elected to his post by receiving a majority of the vote in the Primary election on June 6, 2006,...
, the American Lung Association
American Lung Association
The American Lung Association is a voluntary health organization whose mission is to save lives by improving lung health and preventing lung disease.-History:...
of CA, the California League of Conservation Voters
California League of Conservation Voters
The California League of Conservation Voters is a nonpartisan lobbying and educational organization which focuses on environmental issues affecting California....
, the Coalition for Clean Air, Americans for Energy Independence, the Foundation for Taxpayer and Consumer Rights, and venture capitalist Vinod Khosla
Vinod Khosla
Vinod Khosla is an Indian-born American venture capitalist and an influential personality in Silicon Valley....
.
Arguments against
Most of the No on 87 campaign was funded by petroleum companies, more than $95,000,000 in contributions was received for the No on 87 Campaign, Chevron CorporationChevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
($30,000,000) and Aera Energy ($27,000,000), more than any other proposition in history. The majority of the remaining contributors opposed to 87 were other oil production companies.
Other opponents included Larry McCarthy, President of the California Taxpayers Association (Cal-Tax), Daniel Cunningham, President of the California Small Business Alliance, Marian Bergeson, Former President of the California School Board Association, Kevin R. Nida, President of the California Firefighters Association, Ray Holdsworth, Former Chair of the California Chamber of Commerce, and Allan Zaremberg, President of Californians Against Higher Taxes. In the California Voter Guide for the 2006 election, they propose the following arguments opposed to passage of Proposition 87.
Passage of 87 is not a tax on profits but is a tax on California oil production. This tax would make California's oil the highest taxes in the nation. This increased tax would reduce production in California resulting in more imported gas with its attendant increase in transportation and refining which could be lawfully passed on to consumers.
87 would result in 50 more political appointees with unlimited staff. No oversight or requirement on how the increased revenue be spent including an exemption from the guaranteed education funding that covers other taxes.
Dr. Philip Romero, former Chief Economist
Chief economist
The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis...
for the California Governor's Office
Governor of California
The Governor of California is the chief executive of the California state government, whose responsibilities include making annual State of the State addresses to the California State Legislature, submitting the budget, and ensuring that state laws are enforced...
was quoted as saying "Proposition 87 attempts a worthy goal, but does so in a counterproductive and costly manner. It would shrink California's oil supply, increase dependence on foreign oil, and result in higher gasoline prices."
Endorsements opposed to 87
Incumbent Republican governor Arnold SchwarzeneggerArnold Schwarzenegger
Arnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....
opposed it as well as Republican state senator Tom McClintock
Tom McClintock
Thomas Miller McClintock II is the U.S. Representative for , serving since 2009. He is a member of the Republican Party. He is a former Assemblyman and state Senator...
.
External links
- Yes-on-87.org A website devoted to reviewing the questionable statements made by the No side and to encourage a lawsuit against the oil companies to refund all the money spent by the Yes side.
- Impartial Article by EarlySource
- Video Voter California: Short, nonpartisan video explanation of Prop. 87
- California Secretary of State elections page
- "Yes" Campaign
- "No" Campaign
- LA Times editorial supporting "No"
- Investor's Business Daily editorial supporting "No"