Proposition 87 would tax oil companies to raise money for alternative energy research. More than $130 million has been raised by the forces for and against Prop 87, making it the most expensive initiative campaign in the nation’s history.
Supporters say the new tax would raise an estimated $4 billion for research into alternative energy and work to reduce petroleum consumption by 25%.
Critics say Prop 87 would raise gas prices and create another bloated bureacracy, and it would hurt both local government and California business interests.
Currently, California is the only major oil producing state that does not tax oil companies for pumping oil.
Update November 8, 2006
Proposition 87 was rejected by 54.8% of voters.
- Proposition 87, California Connected Ballot Guide