A $100-million-plus political battle over taxing oil production in California is underway, and most of the action can be seen in living rooms across the state.
At issue is Proposition 87, the Clean Alternative Energy Act, one of 13 statewide ballot issues to be decided Nov. 7. But it has been hard to miss this one. So far, dueling opponents have spent $85 million just on TV advertising, helping to make this the most expensive ballot fight in California history.
"This is one the voters will be aware of," said Shaun Bowler, a political science professor and initiative expert at UC Riverside. "When somebody with deep pockets has his ox being gored, you see the money spigot being turned on."
Voters are being asked to pass judgment on an extraction tax on crude oil from California wells. The tax ranges from 1.5% to 6%, depending on the price of oil, and would raise an estimated $4 billion over 10 years. The proceeds would be directed at efforts to develop cleaner alternatives to fossil fuels and reducing dependence on imported energy.
Environmentalists love the idea; oil companies hate it. Both sides are putting huge sums into their campaigns.
As of the most recent spending report, Yes on 87 has collected $47 million, most of it from Hollywood producer Stephen L. Bing. The No campaign has collected more than $60 million, mainly from oil companies. Chevron Corp. gave at least $22 million and Aera Energy, a joint venture of Exxon Mobil Corp. and Royal Dutch Shell, contributed at least $12.6 million.
The campaign, so far, has stuck to the issues with TV spots featuring economists, scientists, firefighters and even former Vice President Al Gore. On Friday, former President Clinton endorsed Proposition 87, drawing a crowd of thousands at a UCLA rally.
Gov. Arnold Schwarzenegger opposes the measure but is not campaigning for the No side. In addition, the oil companies have joined with an opposition coalition that includes public safety employees, taxpayer organizations and business groups.
Proponents insist that the tax is way overdue. California -- which accounts for 12% of U.S. oil production, ranking behind only Texas and Alaska -- is the only significant oil-producing state that doesn't collect an extraction tax.
Environmentalists say a Yes vote on Proposition 87 would make us less dependent on foreign petroleum by encouraging nonpolluting, homegrown fuels.
