California Proposition 87 (2006)

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. This was highest-funded campaign on any state ballot and surpassing every campaign in the country in spending except the presidential contest.

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."

Proponents of 87 included Laura Keegan Bordeau, CEO of the American Lung Association 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:

Passage of 87 will make the oil industry 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 Arabia and Iraq. Consumers would be able to receive rebates for purchasing alternative fuel vehicles and incentives for renewable energy 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.

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