Proposition Summary

ALTERNATIVE ENERGY. RESEARCH, PRODUCTION, INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Establishes $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 tax of 1.5% to 6% (depending on oil price per barrel) on producers of oil extracted in California. Prohibits producers from passing tax to consumers. Program administered by new California Energy Alternatives Program Authority. Prohibits changing tax while indebtedness remains. Revenue excluded from appropriation limits and minimum education funding (Proposition 98) calculations. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: New state revenues—depending on the interpretation of the measure—from about $225 million to $485 million annually from the imposition of a severance tax on oil production, to be used to fund $4 billion in new alternative energy programs over time. Potential reductions of state revenues from oil production on state lands of up to $15 million annually; reductions of state corporate taxes paid by oil producers of up to $10 million annually; local property tax reductions of a few million dollars annually; and potential reductions in fuel-related excise and sales taxes.

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General Election

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For Author

LAURA KEEGAN BOUDREAU, CEO, American Lung Association of California; WINSTON HICKOX, Former Secretary, California Environmental Protection Agency; JAMIE COURT, President, Foundation for Taxpayer and Consumer Rights

Against Author

LARRY McCARTHY, President, California Taxpayers' Association; DANIEL CUNNINGHAM, President, California Small Business Alliance; MARIAN BERGESON, Past President, California School Boards Association

Rebuttal Author

KEVIN R. NIDA, President, California State Firefighters' Association; RAY HOLDSWORTH, Past Chair, California Chamber of Commerce; ALLAN ZAREMBERG, President, Californians Against Higher Taxes