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California Proposition 10 (2008)
Encyclopedia
California Proposition 10, also known as the California Alternative Fuels Initiative, was an initiated state statute
that appeared on the November 2008 ballot in California
. Proposition 10 was funded by Clean Energy Fuels Corp. a corporation owned by T. Boone Pickens. Clean Energy Fuels Corp. is the nation's leading operator of natural gas vehicle fueling stations.
Proposition 10 was one of two ballot initiatives focusing on alternative fuels that appeared on the November 4, 2008 ballot in California. Both propositions were rejected by voters that day.
Proponents believe the proposal would have:
On August 11, it was disclosed that U.S. House Speaker Nancy Pelosi
is an investor in CEFC.,
Todd Campbell, Clean Energy's public policy director, in response to criticisms about CLNE sponsoring Prop. 10 because of potential benefits to the company told an Associated Press reporter, "I don’t think it’s a given that Clean Energy is going to cash in. I wish it were that simple."
editorialized against Prop. 10 on September 19, saying, "Spending bond money on something as intangible as privately owned vehicles is a terrible idea" The Santa Monica Mirror said, "Self-serving Prop. 10 sounds good, should lose".
The San Francisco Chronicle
is opposed, writing, "The chief backer and bill payer for the measure is T. Boone Pickens, the folksy Texas oilman and apostle for energy independence who founded a firm that just happens to supply natural gas for cars and trucks".
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
that appeared on the November 2008 ballot in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. Proposition 10 was funded by Clean Energy Fuels Corp. a corporation owned by T. Boone Pickens. Clean Energy Fuels Corp. is the nation's leading operator of natural gas vehicle fueling stations.
Proposition 10 was one of two ballot initiatives focusing on alternative fuels that appeared on the November 4, 2008 ballot in California. Both propositions were rejected by voters that day.
Proponents believe the proposal would have:
- Helped consumers and others purchase certain high fuel economy or alternative fuel vehicles, including natural gas vehicles, and to fund research into alternative fuel technology.
- Provided funding for research, development and production of renewable energy technology, primarily solar energy with additional funding for other forms of renewable energy; incentives for purchasing solar and renewable energy technology.
- Provided grants to cities for renewable energy projects and to colleges for training in renewable and energy efficiency technologies.
Provisions of the initiative
The initiative authorizes $5 billion in bonds paid from state’s General Fund, allocated approximately as follows:- 58% in cash payments of between $2,000 and $50,000 to purchasers of certain high fuel economy and alternative fuel vehicles;
- 20% in incentives for research, development and production of renewable energy technology;
- 11% in incentives for research and development of alternative fuel vehicle technology;
- 5% in incentives for purchase of renewable energy technology;
- 4% in grants to eight cities for education about these technologies; and
- 3% in grants to colleges to train students in these technologies.
Estimate of fiscal impact
According to the government's fiscal analysis office, the initiative would entail:- State costs of about $9.8 billion over 30 years to pay both the principal ($5 billion) and interest ($4.8 billion) costs on the bond.
- Payments of about $325 million per year.
- Increase in state sales tax revenues of an unknown amount, potentially totaling in the tens of millions of dollars, over the period from 2009 to beyond 2018.
- Increase in local sales tax and VLF revenues of an unknown amount, potentially totaling in the tens of millions of dollars, over the period from 2009 to about 2018-19.
- Potential state costs of up to about $10 million annually, through about 2018 -19, for state agency administrative costs not funded by the measure.
Supporters
- T. Boone Pickens
- Allison Hart, Mitzi Dudley and Thomas Daly filed the initial ballot language.
Funding and Boone Pickens
Reports filed through December 31, 2008 listed four major donors to the initiative:- Clean Energy Fuels Corp. donated $18,647,250. Clean Energy Fuels Corp. is owned by T. Boone Pickens.
- Chesapeake EnergyChesapeake EnergyChesapeake Energy is the second largest producer of natural gas in the United States, a top 15 producer of U.S. liquids and the most active driller of new wells, according to an November 2011 investor presentation. It recorded 3Q 2011 natural gas production of an average of approximately of...
contributed $3,000,000. - Aubrey McClendonAubrey McClendonAubrey Kerr McClendon is the chief executive officer, chairman, and co-founder of Chesapeake Energy Corporation . He is an outspoken advocate for natural gas as a cleaner and safer alternative to oil and coal fuels...
, $500,000. McClendon lives in Oklahoma and is the co-founder of Chesapeake EnergyChesapeake EnergyChesapeake Energy is the second largest producer of natural gas in the United States, a top 15 producer of U.S. liquids and the most active driller of new wells, according to an November 2011 investor presentation. It recorded 3Q 2011 natural gas production of an average of approximately of...
. - Westport Fuel Systems, $250,000.
On August 11, it was disclosed that U.S. House Speaker Nancy Pelosi
Nancy Pelosi
Nancy Patricia D'Alesandro Pelosi is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011...
is an investor in CEFC.,
Todd Campbell, Clean Energy's public policy director, in response to criticisms about CLNE sponsoring Prop. 10 because of potential benefits to the company told an Associated Press reporter, "I don’t think it’s a given that Clean Energy is going to cash in. I wish it were that simple."
Arguments in favor of Prop. 10
The main arguments offered in favor of Prop. 10 are:- The funding it provides will allow the generation of electricity from renewable sources, and provide consumer rebates for the purchase or lease of "clean alternative fuel vehicles".
- The funding will allow the replacement of older polluting diesel trucks with clean alternative fuel trucks and provide for research into alternative fuels.
- Will reduce dependence on foreign fuel and stop US dollars from going to hostile foreign governments.
- The diesel trucks that would be replaced produce dangerous pollution.
- Significant improvement in California Air quality, reduction of Air Pollution.
- Alternatives to high-priced gasoline are important.
Path to the ballot
Prop. 10 was qualified for the ballot through a petition drive conducted by Progressive Campaigns, Inc., at a cost of $2,418,178 and Forde and Mollrich, which was paid $660,084 for signatures. The total signature cost was $3,078,263.Opposed by
- An official opposition group called "No on Proposition 10, Californians Against the $10 Billion Lemon, Sponsored by the Consumer Federation of CaliforniaConsumer Federation of CaliforniaThe Consumer Federation of California was founded in 1960 as a non-profit consumer advocacy organization. CFC campaigns for state and federal laws and appears at the California State Legislature in support of consumer focused regulations...
", registered with the California Secretary of StateCalifornia Secretary of StateThe Secretary of State of California is the chief elections officer of that U.S. state. The Secretary of State is also responsible for the California State Archives, as well as chartering corporations. The Secretary of State is elected to four year terms, concurrent with the other constitutional...
. The organization raised approximately $171,000, primarily from labor unions.
- Consumer Federation of CaliforniaConsumer Federation of CaliforniaThe Consumer Federation of California was founded in 1960 as a non-profit consumer advocacy organization. CFC campaigns for state and federal laws and appears at the California State Legislature in support of consumer focused regulations...
Executive Director Richard Holober managed the No on Proposition 10 campaign. The No on Proposition 10 campaign won endorsements from every major labor, consumer, taxpayer, business and environmental organization in California,, including the California Labor Federation, the Sierra ClubSierra ClubThe Sierra Club is the oldest, largest, and most influential grassroots environmental organization in the United States. It was founded on May 28, 1892, in San Francisco, California, by the conservationist and preservationist John Muir, who became its first president...
, The Natural Resources Defense CouncilNatural Resources Defense CouncilThe Natural Resources Defense Council is a New York City-based, non-profit, non-partisan international environmental advocacy group, with offices in Washington DC, San Francisco, Los Angeles, Chicago, and Beijing...
, the Howard Jarvis Taxpayers AssociationHoward Jarvis Taxpayers AssociationHoward Jarvis Taxpayers Association is a political organization that helped sponsor Proposition 13 in California in 1978.It was founded by California Republican Howard Jarvis. The organization has outlived its founder, and continues to operate to the present day under the same name, opposing all...
, the California Taxpayers Association, the California Democratic Party, and the California Chamber of CommerceCalifornia Chamber of CommerceThe California Chamber of Commerce is the largest broad-based special interest group in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. The CalChamber provides products and...
.
- Forty daily newspapers wrote editorials against Proposition 10.
Arguments against Prop. 10
- Would require taking $10 billion out of the state's general fund over a 30 year period.
- There are relatively few mechanics who know how to fix natural-gas engines and few filling stations offer natural gas.
Opposed to Prop. 10
The Los Angeles TimesLos Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
editorialized against Prop. 10 on September 19, saying, "Spending bond money on something as intangible as privately owned vehicles is a terrible idea" The Santa Monica Mirror said, "Self-serving Prop. 10 sounds good, should lose".
The San Francisco Chronicle
San Francisco Chronicle
thumb|right|upright|The Chronicle Building following the [[1906 San Francisco earthquake|1906 earthquake]] and fireThe San Francisco Chronicle is a newspaper serving primarily the San Francisco Bay Area of the U.S. state of California, but distributed throughout Northern and Central California,...
is opposed, writing, "The chief backer and bill payer for the measure is T. Boone Pickens, the folksy Texas oilman and apostle for energy independence who founded a firm that just happens to supply natural gas for cars and trucks".
Results
Additional reading
- Opinion: Proposition 10 fights global warming
- 2 energy propositions flawed, critics say, San Francisco Chronicle.
- My Take on T. Boone's California Prop 10, by Judy Dugan.
- Political winds buffet California measures on energy, Sacramento Bee, September 15, 2008.
- Why should we vote for Prop 10?
- Prop 10: Fueling a cleaner California
External links
- Facts on Prop 10, official website supporting Prop. 10.
- No on 10 Website - A project of the Consumer Federation of California
- Official California voter guide for Proposition 10
- Full text of the initiative
- Signature count pending
- Number nine, number nine, number nine, Los Angeles Times, June 6, 2008
- CaliforniaPropositions.org Prop 10 information page