California sets "clean energy" oil tax on ballot - Yahoo! News

LOS ANGELES (Reuters) - Californians will vote in November on a ballot measure proposing a constitutional amendment that would tax oil production to fund a range of alternative energy efforts, Secretary of State Bruce McPherson said on Wednesday.
The initiative's supporters gathered 1,143,365 signatures, qualifying it for the ballot, McPherson's office said.
Supporters -- led by Californians For Clean Alternative Energy -- and opponents -- led by Californians Against Higher Taxes -- are expected to wage an intense battle for votes leading up to the November 7 election.
The two sides set out arguments that are sure to fill California radio and television advertisements ahead of the November election, which will also pit Republican Gov.
Arnold Schwarzenegger' name=c1> SEARCHNews News Photos Images Web' name=c3> Arnold Schwarzenegger versus Democratic challenger Phil Angelides, the state treasurer.
Supporters are painting the vote over the ballot measure as between friendly environmentalists who want to cut energy prices versus polluting Big Oil and corporations seeking to drain consumers' wallets.
Opponents say the initiative is a sheep in wolves' clothing that if passed will create an unchecked bureaucracy and not only higher taxes but also higher fuel prices in the end.
"In the absence of a federal energy policy, the oil companies have a business-as-usual plan for California's energy future: higher gas prices, more pollution and greater dependence on insecure foreign sources of oil," said Dan Kammen, professor of public policy at the University of California at Berkeley and founding director of the Renewable and Appropriate Energy Laboratory there.
Scott Macdonald, spokesman for Californians Against Higher Taxes, said his side can't be cast as against alternative energy.
"We all believe we need more alternative fuels and we need to find new ways to power our economy and we need to do that in a hurry," Macdonald said. "But this is not the way to do it."
California is third in the United States in oil production and requires no tax on oil companies for extracting natural resources, unlike Alaska (15 percent tax), Texas (4.6 percent), and Louisiana (12.5 percent), according to Californians For Clean Alternative Energy.
If voters approve the ballot measure, the state will get new revenue of between $200 million to $380 million annually from a tax of 1.5 percent to 6 percent on oil production, according to the state's nonpartisan legislative analyst.
The money would fund research and development of alternative energy including solar and wind power and electric and hydrogen-fueled cars. Both public and private organizations will be eligible for funds.
The tax depends on the price of a barrel of oil. At current levels of about $58 per barrel for California crude, the tax rate would be 4.5 percent, Californians for Clean Energy said.
The state analyst also showed local governments may lose money from property taxes paid on oil reserves, which would impact the oil-producing counties of Kern and Los Angeles.
The effort, termed the "California Clean Alternative Energy Initiative," seeks to cut petroleum fuel consumption in California by 25 percent of 2005 levels in 10 years. The tax would end in 2017 unless the California legislature votes to extend it.