Voter Information Guide


Title and Summary	Analysis	Arguments and Rebuttals	Text of Proposed Law

PROP 87

ALTERNATIVE ENERGY. RESEARCH, PRODUCTION, INCENTIVES. TAX ON CALIFORNIA OIL PRODUCERS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

ARGUMENT IN FAVOR OF PROPOSITION 87

ARGUMENT AGAINST PROPOSITION 87

YES ON 87: MAKE OIL COMPANIES PAY THEIR FAIR SHARE—FOR CLEANER ENERGY.

Had enough of oil companies charging outrageous prices and making obscene profits?

Had enough polluted air, asthma, lung disease, and cancer?

Had enough of oil companies funding opposition to Cleaner, Cheaper Energy? Enough is enough.

It’s time to make oil companies pay their fair share so we can use cheaper alternative fuels and reduce air pollution that causes lung disease and cancer.

VOTING YES ON PROPOSITION 87 WILL MAKE OIL COMPANIES PAY THEIR FAIR SHARE.

In Louisiana, Alaska, and even Texas, oil companies pay billions in oil drilling fees, but they pay almost nothing in California. California takes in more revenue from hunting and fishing licenses than it does from oil drilling fees.

Under Prop. 87, the oil companies will finally pay us the same level of fees they pay in other states.

They can afford it. The oil companies opposing this initiative made $78 billion in profits last year. Their profits are so high that EXXON gave its CEO Lee Raymond a $400 million retirement payout. Enough is enough.
PROP. 87: NO COST TO CONSUMERS. OIL COMPANIES PAY.

California’s Attorney General has confirmed that Prop. 87 makes it illegal for oil companies to raise gas prices to pass along the cost to us.

If they do, they’ll break the law and could be prosecuted.

The U.S. Supreme Court has already ruled that states can prohibit oil companies from passing fees like this on to consumers. Just look at the other states that have oil drilling fees. They all pay less for gas than California.

That’s why oil companies are spending millions to defeat Prop. 87: because they know it’s illegal to pass the cost on to us.

PROP. 87: CLEANER ENERGY AND CLEANER AIR.

Prop. 87 makes oil companies pay for cleaner energy.

It provides for cash rebates to consumers who buy cleaner, alternative fuel vehicles and incentives for more renewable energy like solar and wind power.

It will create thousands of new jobs and economic growth.

It will reduce our dependence on oil from Saudi Arabia and Iraq—which provide 47% of California’s imported oil.

Voting YES on Prop. 87 will reduce air pollution in California.

Pollution from cars and trucks is making us sick. Every year, cars put tons of lung-damaging smog and soot into the air that send children to the hospital and cause asthma attacks.

That’s why the Coalition for Clean Air and California doctors and nurses ALL SUPPORT Proposition 87.

PROP. 87: NO NEW BUREAUCRACY.

Prop. 87 uses an existing state agency and requires strict enforcement and accountability through independent audits, public hearings, and annual progress reports.

Nobel-prize-winning scientists, California environmental and consumer groups, educators, labor and agriculture groups all agree. It’s time we take control of our future.

For Cleaner Air—For Alternative Energy Choices—For Less Dependence on Foreign Oil . . . Finally, Fairness.

MAKE OIL COMPANIES PAY THEIR FAIR SHARE.

VOTE YES ON 87. FOR CLEANER ENERGY.

www.YESon87.com

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

REBUTTAL TO ARGUMENT IN FAVOR
OF PROPOSITION 87

“The sponsors’ contention that Proposition 87 would not cause higher gas prices is incorrect.”—William Hamm, Ph.D.
Former Legislative Analyst, State of California

“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.”—Professor Philip Romero, Ph.D., Former Chief Economist, California Governor’s Office

Proposition 87 is not a tax on oil company profits—as proponents would like you to believe. It’s a $4 BILLION TAX on California oil production. It would make California’s oil the highest taxed in the nation, by far. Analysts report it would decrease state oil production. Replacement oil would have to be imported from the Middle East and elsewhere. The added costs of transporting and refining imported oil would be lawfully passed on to consumers at the gas pump. Do we really want higher gas prices?

And, did proponents really claim Proposition 87 is not new bureaucracy? It’s the very definition of bureaucracy, with an appalling lack of accountability:

— 50 political appointees.

—Unlimited staff.

— The power to spend $4 billion outside the state budget review process.

— No requirement they spend all those new taxes in California, or even in the U.S.

— Special exemptions from laws designed to protect taxpayers.

— Special exemption from California’s education funding guarantee, robbing schools of their fair share. Proposition 87 also reduces revenues available for fire protection and public safety.

Organizations representing 85,000 public safety officials urge Californians to: VOTE NO on 87.

KEVIN R. NIDA, President
California State Firefighters’ Association

RAY HOLDSWORTH, Past Chair
California Chamber of Commerce

ALLAN ZAREMBERG, President
Californians Against Higher Taxes

AREN’T GAS PRICES HIGH ENOUGH ALREADY?

DO WE REALLY WANT TO INCREASE OIL TAXES BY ANOTHER $4 BILLION?

We all agree we need to advance alternative energy. But, Proposition 87 is not the way to get there. Increasing California oil taxes by $4 BILLION to fund a new state bureaucracy—that isn’t even required to produce results—is a recipe for waste, not progress.

It’s also the road to more problems . . .

HIGHER TAXES ON DOMESTIC OIL = MORE DEPENDENCE ON FOREIGN OIL.

Economists report that taxing California oil production will reduce in-state oil production and increase our dependence on foreign oil. Oil from the Middle East and other countries costs more to get here and costs more to refine once here.

HIGHER OIL TAXES, HIGHER GAS PRICES.

Prop. 87’s sponsors claim it won’t increase gas prices. Are voters supposed to believe a $4 BILLION tax increase on California oil won’t impact gas prices at the pump?

PROP. 87 CREATES A NEW STATE BUREAUCRACY WITH 50 POLITICAL APPOINTEES.

It lets them spend taxes outside the normal checks and balances that govern other state agencies, outside the state budget review process, and exempt from important laws and taxpayer safeguards that apply to other agencies.

PROP. 87 LETS THE NEW BUREAUCRACY KEEP SPENDING EVEN IF THEY’RE NOT PRODUCING RESULTS.

It lets the political appointees tax and spend, year after year after year, even if they’re making absolutely no progress reducing oil consumption or advancing alternative energy use.

PROP. 87 ROBS SCHOOLS OF THEIR FAIR SHARE OF NEW REVENUES.

One of the most important protections our schools have is a constitutional guarantee that a portion of new state tax revenues be spent in the classroom. But, Prop. 87 excludes itself from that requirement. One of California’s leading education finance experts and the former Secretary of Education reports: “At a time when California school funding is already below the national average, Prop. 87 could deny schools their fair share of up to $1.9 billion in new revenues over the next 10 years.”

PROP. 87 WOULD REDUCE TAX REVENUES USED FOR EDUCATION, PUBLIC SAFETY, HEALTH CARE, AND TRANSPORTATION NEEDS.

Prop. 87 would reduce general fund and property tax revenues. Read the Legislative Analyst’s report in your voter pamphlet.

HIGHER GAS PRICES HURT FAMILIES, SMALL BUSINESSES, AND SENIORS.

Everyone bears the cost of high gas prices. The last thing we need is a ballot proposition that further drives up oil prices.

EVERYONE AGREES WE NEED TO ADVANCE ALTERNATIVE ENERGY, BUT PROP. 87 IS NOT THE WAY TO GET THERE.

“Gasoline prices in California are high enough already. Proposition 87 would just add insult to injury. This $4 billion oil tax would result in even higher gas prices at the pump. We recommend drivers vote: NO on 87.” —Thomas V. McKernan, President and CEO, Automobile Club of Southern California

Join more than 150 organizations, taxpayer groups, consumers, California businesses, labor, parents, educators, seniors, and public safety officials . . .

VOTE NO on 87. It’s a recipe for waste, not progress.

LARRY McCARTHY, President
California Taxpayers’ Association

DANIEL CUNNINGHAM, President
California Small Business Alliance

MARIAN BERGESON, Past President
California School Boards Association

REBUTTAL TO ARGUMENT AGAINST
PROPOSITION 87

DO YOU TRUST THE OIL COMPANIES?

Oil companies are paying for the multimillion dollar misinformation campaign against Prop. 87.

See for yourself: California State Website: www.cal-access.sos.ca.gov

Notice the oil companies didn’t sign the statement at the top of this page? What else are they hiding? THE FACTS:

• PROP. 87 MAKES OIL COMPANIES PAY THEIR FAIR SHARE.

Oil companies pay billions in drilling fees in New Mexico, Alaska, Louisiana, and even Texas. California is the only state where the oil companies do not pay similar drilling fees.

• PROP. 87 MAKES IT ILLEGAL FOR OIL COMPANIES TO PASS THE COST ON TO CONSUMERS BY RAISING GAS PRICES. Official Initiative Language, § 42004(c) Think about it: If the oil companies could really pass the cost on to us, why would they be spending millions to defeat Prop. 87?

• PROP. 87 MEANS CLEANER AIR, LESS ASTHMA.

That’s why Prop. 87 is endorsed by the American Lung Association.

• PROP. 87 MEANS MORE ALTERNATIVE FUELS AND LESS DEPENDENCE ON FOREIGN OIL.

Almost half of California’s imported oil comes from Saudi Arabia and Iraq. Prop. 87 would reduce our dependence on foreign oil. That’s why former Secretary of State Madeleine Albright endorses Prop. 87.

• PROP. 87 HAS NO NEW BUREAUCRACY.

Prop. 87 requires independent audits, strict limits on administrative spending, open meetings with accountability, and oversight by public health and energy experts—not politicians. Official Initiative Language, § 26004(a)

DON’T BE FOOLED BY THE OIL COMPANIES.

ENOUGH IS ENOUGH. MAKE THE OIL COMPANIES PAY THEIR FAIR SHARE.

VOTE YES ON 87. FOR CLEANER, CHEAPER ENERGY.

DR. MARIO MOLINA, Nobel Prize in   Chemistry
University of California, San Diego

TIM CARMICHAEL, President, Coalition
  for Clean Air

JAMIE COURT, President
Foundation for Taxpayer and Consumer   Rights

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