California Proposition 10 (2008)

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California Proposition 10, also known as the California Alternative Fuels Initiative, was an unsuccessful 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.

Statute Formal written document that creates law

A statute is a formal written enactment of a legislative authority that governs a city, state, or country. Typically, statutes command or prohibit something, or declare policy. Statutes are rules made by legislative bodies; they are distinguished from case law or precedent, which is decided by courts, and regulations issued by government agencies.

California State of the United States of America

California is a state in the Pacific Region of the United States. With 39.6 million residents, California is the most populous U.S. state and the third-largest by area. The state capital is Sacramento. The Greater Los Angeles Area and the San Francisco Bay Area are the nation's second and fifth most populous urban regions, with 18.7 million and 8.8 million residents respectively. Los Angeles is California's most populous city, and the country's second most populous, after New York City. California also has the nation's most populous county, Los Angeles County, and its largest county by area, San Bernardino County. The City and County of San Francisco is both the country's second-most densely populated major city after New York City and the fifth-most densely populated county, behind only four of the five New York City boroughs.

T. Boone Pickens American financier; Chairman, BP Capital Management

Thomas Boone Pickens Jr. is an American business magnate and financier, who is also known for his philanthropy and alternative energy policy activism. Pickens chairs the hedge fund BP Capital Management. He was a well-known takeover operator and corporate raider during the 1980s. As of November 2016, Pickens has a net worth of $500 million.

Contents

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:

Alternative fuel vehicle vehicle that runs on a fuel other than petroleum fuels

An alternative fuel vehicle is a vehicle that runs on a fuel other than traditional petroleum fuels ; and also refers to any technology of powering an engine that does not involve solely petroleum. Because of a combination of factors, such as environmental concerns, high oil prices and the potential for peak oil, development of cleaner alternative fuels and advanced power systems for vehicles has become a high priority for many governments and vehicle manufacturers around the world.

Provisions of the initiative

The initiative authorizes $5 billion in bonds paid from state’s General Fund, allocated approximately as follows:

Estimate of fiscal impact

According to the government's fiscal analysis office, the initiative would entail:

Supporters

Funding and Boone Pickens

Reports filed through December 31, 2008 listed four major donors to the initiative:

Chesapeake Energy Corporation is a company engaged in hydrocarbon exploration. It is headquartered in Oklahoma City. The company is named after the founder's love for the Chesapeake Bay region.

Aubrey McClendon American businessman

Aubrey Kerr McClendon was an American businessman and the founder and chief executive officer of American Energy Partners, LP. He also co-founded Chesapeake Energy, serving as its CEO and chairman. He was an outspoken advocate for natural gas as an alternative to oil and coal fuels, and a pioneer in employing fracking.

On August 11, it was disclosed that U.S. House Speaker Nancy Pelosi is an investor in CEFC., [5] [6]

Nancy Pelosi 52nd Speaker of the United States House of Representatives

Nancy Patricia Pelosi is an American politician serving as speaker of the United States House of Representatives since January 2019. First elected to Congress in 1987, she is the only woman to have served as speaker, and is the highest-ranking elected woman in United States history. Pelosi is second in the presidential line of succession, immediately after the vice president.

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." [7]

Arguments in favor of Prop. 10

The main arguments offered in favor of Prop. 10 are:

Soot substance

Soot is a mass of impure carbon particles resulting from the incomplete combustion of hydrocarbons. It is more properly restricted to the product of the gas-phase combustion process but is commonly extended to include the residual pyrolysed fuel particles such as coal, cenospheres, charred wood, and petroleum coke that may become airborne during pyrolysis and that are more properly identified as cokes or char.

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. [9]

Opponents

Opposed by

Arguments against Prop. 10

Newspaper endorsements

Opposed to Prop. 10

The Los Angeles Times editorialized against Prop. 10 on September 19, saying, "Spending bond money on something as intangible as privately owned vehicles is a terrible idea" [14] The Santa Monica Mirror said, "Self-serving Prop. 10 sounds good, should lose". [15]

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". [16]

Results

Electoral votes by county. CA2008Prop10.png
Electoral votes by county.
Proposition 10 [17]
Choice Votes %
X mark.svg No7,464,15459.41
Yes 5,098,666 40.59
Valid votes 12,562,820 91.41
Invalid or blank votes 1,180,357 8.59
Total votes13,743,177100.00

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References

  1. List of $5,000 + donors to Proposition 10
  2. Pelosi #dontgo Bombshell: Money, August 11, 2008
  3. Nancy Pelosi's financial disclosure statement for 2007
  4. New York Times Green Inc. blog, "The Pickens Plan and Proposition 10", September 25, 2008
  5. California voter guide, arguments for and against Prop. 10
  6. Expenditure detail
  7. Campaign filing for No on Proposition 10; Californians against the $10 Billion Lemon
  8. Los Angeles Times, "Reject Proposition 10", September 19, 2008
  9. Santa Monica Mirror, Self-Serving Prop. 10 Sounds Good, Should Lose", September 18, 2008
  10. San Francisco Chronicle, "Why Proposition 10 is a boondoggle", September 25, 2008
  11. "Statement of Vote: 2008 General Election" (PDF). California Secretary of State. 2008-12-13.

Additional reading