In a few months, Californians will vote on Proposition 87, a ballot initiative that aims to reduce gasoline usage by 25 percent over 10 years. Specifically, the initiative creates an alternative energy fund by making oil companies pay extraction fees for drilling in California, much like they do in Louisiana, Alaska, and Texas.
Raising the cost of California oil will make companies more willing to import foreign oil into the state, which could raise pump prices, said Al Lundeen, a spokesman for the anti-Prop. 87 forces.
“We think it will very clearly impact consumers,” he said.
The initiative also would create a new state bureaucracy to administer the tax money, he said, and while California is one of few oil-producing states without an oil severance tax like this one, the other taxes it charges oil producers more than make up for that.
The facts show otherwise: Read more