Sanchez sisters back new tax on oil

Thanks to Lurk, over at OC Blog, for digging up this story. According to a Yahoo Finance article, U.S. House Representatives Loretta and Linda Sanchez are teaming up to support Prop. 87, which is essentially a tax on oil drilling in California.

Prop. 87 aims to “reduce our use of oil by expanding the use of existing technologies, funding the development of improved and new technologies, and brings alternative fuel and energy technologies to the market faster. Prop 87 will provide financial incentives to make clean energy options more affordable in order to expand their use. By reducing oil consumption, Prop 87 will reduce pollution that causes global warming, asthma, lung disease and cancer.”

Apparently, oil companies in California do not pay much currently fo drilling oil in our state, and this measure seeks to establish fees that will comparable to those paid in states including Oklahoma, Texas and Alaska. Will consumers end up paying for these fees? According to Prop. 87 backers, “The California Attorney General has confirmed that Prop 87 makes it illegal for oil companies to raise gas prices or to pass the cost of the fee to consumers.”

So how will the money be spent? According to the website for Prop 87, it will fund:

  • Consumer rebates for the purchase of alternative fuel vehicles
  • Incentives for increased use of wind, solar and other renewable energies
  • Assistance to local governments to upgrade public vehicle fleets (emergency, school bus, waste disposal, mass transit)
  • Matching funds to make new technologies available to the public by clearing hurdles such as engine certification, crash-testing, and Underwriters

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