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Coalition of “EVERYONE” Launches No on 10 Campaign

Environmental, taxpayer, consumer, business and labor groups together in Sacramento yesterday to launch campaign to defeat oil tycoon’s “$10 billion boondoggle”

R.Holober-2005.gif By Richard Holober
Executive Director
Consumer Federation of California

A diverse coalition of organizations - representing nearly every side of every issue on the political spectrum – gathered in Sacramento today to launch the campaign to defeat Proposition 10 –Texas oil tycoon T. Boone Picken’s $10 billion money grab.

Prop 10 is a measure on the November California ballot that calls for $5 billion in state bonds to primarily subsidize purchasers of natural gas powered trucks, along with modest investments in renewable energy development. T. Boone Pickens’ Clean Energy Fuels Corporation wrote Prop 10 and has already donated nearly $8 million to the “Yes” campaign. Bond payments would cost California taxpayers $10 billion over the next 30 years. Clean Energy Fuels Corp. is a major supplier of natural gas for vehicles and stands to make a fortune if the initiative passes.

It’s rare to see groups as diverse as those in our coalition – representing all political points of view – agree. Prop 10 asks taxpayers to fork over $10 billion to enrich a Texas oil tycoon at a time we are facing the most serious economic crisis since the Great depression. Today we stand united in urging voters to protect our schools, public safety and health care services by voting No on Prop 10.

Environmental groups have stated that Prop 10 doesn’t clean up the air. Over $2.5 billion in subsidies – the bulk of Prop 10’s expenditures – are handouts to trucking companies to purchase “clean” vehicles powered by natural gas that can pollute just as much as diesel and gasoline powered trucks currently on the road. Prop 10 conveniently redefines the pollution status quo as “clean” as long as the vehicles fuel up at Mr. Pickens’ gas stations. In theory, Prop 10 also provides rebates for other alternative energy technologies, but these theoretical technologies are not available on the market.

“Proposition 10 promises little bang for five billion bucks,” said Jim Metropulos, Sierra Club California’s Senior Advocate. “California cannot afford to waste money and time on technologies that won’t address global warming or promote clean air. We want to see much cleaner alternatives to the cars and trucks we’re driving now.”

Prop 10’s glaring loopholes and misdirected incentives for a less efficient and less clean technology at the expense of superior ones have led the California League of Conservation Voters, the Natural Resources Defense Council, and the Union of Concerned Scientists to join the Sierra Club in publicly opposing it.

Opponents pointed out that after interstate trucking companies collect their $50,000 Prop 10 California rebates for every natural gas powered truck purchased, they can relocate these trucks out of state and sell their old “dirty” trucks to California truckers who will keep on polluting our air.

Prop 10 excludes hybrids from its definition of a “clean” vehicle. A purchaser of a natural gas powered car would receive a $10,000 state rebate while a hybrid Prius with an identical California clean vehicle rating receives only a $2,000 rebate – even though hybrids are a cheaper technology already making substantial inroads into the marketplace.

California’s leading business and taxpayer organizations have also joined the chorus of opposition to Prop 10. It misuses billions in bonds to fund tax giveaways to profitable trucking companies and to enrich the billionaire who is bankrolling the “Yes” campaign. Bonds are traditionally designed for long term capital improvements such as building schools and hospitals, not to subsidize trucking companies and individuals to purchase vehicles that will become scrap metal long before the 30 years of bond payments end.

“The last thing the taxpayers of California need is for the state government to saddle them with more debt, but that’s exactly what Proposition 10 would do,” said David Kline of the non-partisan California Taxpayers’ Association. “Proposition 10 would commit the taxpayers to an average payment of $335 million per year for the next 30 years, and would cost $5 billion in interest alone.”

“We are supportive of alternative fuels and renewable energy,” said Kris Rosa, Silicon Valley Leadership Group. “But Prop 10 is an inappropriate mechanism to incentivize action in this area. Bonds are designed for long term capital improvements, not short-term subsidies.”

Proposition 10 has yet to earn the endorsement of a single newspaper editorial board or independent environmental group. Meanwhile, the coalition opposing it continues to expand, including: the League of Women Voters, the California Chamber of Commerce, the California Labor Federation, the California Nurses Association, the California Federation of Teachers, the Howard Jarvis Taxpayers Association, Consumer Watchdog, TURN, California Church IMPACT, California Tax Reform Association, the Latino Issues Forum, the California Farm Bureau Federation and the California Manufacturers and Technology Association among many others.

Learn more at: www.stopprop10.org

The Consumer Federation of California is a non-profit advocacy organization. Since 1960, the Consumer Federation of California has been a powerful voice for consumer rights. CFC campaigns for state and federal laws that place consumer protection ahead of corporate profit. Each year, CFC testifies before the California legislature on dozens of bills that affect millions of our state's consumers. CFC also appears before state agencies in support of consumer regulations.

Posted on October 10, 2008

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