Speaking before his 2006 Clinton Global Initiative conference, President Bill Clinton today lauded Proposition 87 as a key step in breaking the United States’ addiction to oil and reducing greenhouse gas emissions.

“CGI was designed to tackle big global challenges in bite size pieces,” President Clinton said. “This is a very, very good thing to do and, since California is our biggest state, it pumps 190 million tons of pollution into the air from cars, trucks and buses that run on gasoline and diesel every single year. This is a big deal. I’m very grateful to them.”

Proposition 87 will reduce California's gasoline and diesel use by 25% over 10 years -- and the pollution and greenhouse gas emissions they cause. California uses 16 billion gallons of petroleum every year – an amount 15% more than China uses.  Proposition 87 will reduce California’s petroleum consumption by 10 billion gallons from 2007 to 2017, with a 4 billion gallon reduction in 2017 alone.  That will cut 350 million tons of greenhouse gas emissions from California's air.  California is the nation’s largest user of oil and the world’s sixth-largest economy.  Proposition 87 is designed to jump-start the industry and market forces needed to make cleaner, cheaper alternative fuels and vehicles accessible and affordable nationwide.

The opposition to Proposition 87 is bankrolled by oil companies led by Chevron, Exxon Mobil, Shell and Occidental.

California currently imports over 40% of its oil from foreign nations.  About half of that imported oil is from Saudi Arabia and Iraq alone.
This year’s Clinton Global Initiative is focused on addressing climate change.  The initiative identifies a small number of the most serious issues affecting the world today and brings together some of the world's best minds and most distinguished problem solvers to identify immediate, practical solutions -- like Proposition 87.

California’s reduction in oil use will be funded by oil drilling fees paid by oil companies. California – the nation’s third-leading oil producer -- is unique among oil producing states in that it does not collect a “severance” or “oil production” assessment for the extraction of oil. 

The following chart shows the severance assessments of the top-10 oil producing states:

Texas - 4.6%
Alaska - 15%
California - 0%
Louisiana - 12.5%
Oklahoma - 7%
New Mexico - 3.75%
Wyoming - 6%
North Dakota - 6.5%
Kansas - 8%
Montana - 4.8%

Proposition 87 enacts a 1.5% to 6% fee per barrel depending on the price of oil.

Proposition 87 makes oil companies pay -- not consumers. According to California's Attorney General, Prop 87 makes it illegal for oil companies to raise gas prices to pass the cost on to consumers. The U.S. Supreme Court has already ruled that states can prohibit oil companies from passing fees like this on to consumers.  And similar fees in the other oil producing states have been proven to not increase gas prices.
President Clinton also praised Steve Bing’s willingness to combat the oil companies’ campaign against Proposition 87 with a $40 million contribution of personal funds. 

Bing is a long-time advocate for California’s environment and is a key supporter of the National Resources Defense Council, where he founded the Climate Center in 2000. He was a leader in the fight to preserve Ahmanson Ranch, a tract of pristine Ventura County land that was threatened by sprawl.

Related Articles » Clinton Ad Hits The Airwaves » Just Do It, Arnold! » Al Gore Says CA has to take the lead and vote Yes on 87 » Prop 87 Reduces Air Pollution, Improves Public Health » We’re on the Air » The Merc Gets It Right. » Schools Chief Jack O’Connell Endorses Prop 87 » Senate President Pro Tem Perata Endorses Prop 87 » They Can’t Have It Both Ways » Welcome to the Drive Away from Oil Tour!