Proposition 10: Alternative Fuel Vehicles and Renewable Energy Bonds

From Mobilize the Immigrant Vote!

What is the Bonds. Alternative Fuel Vehicles and Renewable Energy Statute?

Proposition 10 will authorize $5 billion in bonds to be paid from the State’s General Fund for the promotion of alternative energy. A bond is a loan to the state by wealthy investors or private banks, which the state promises to pay back with interest. Bonds must be approved by voters because voters pay back the bond with their taxes, which could instead be used to fund other programs or services. The funds will be allocated as follows:

• 58% -- cash payments as incentives for consumers and entities to purchase certain fuel efficient and alternative fuel vehicles;
• 20% -- research, development, and production of renewable energy technology;
• 11% -- research and development of alternative fuel vehicle technology;
• 5% -- incentives for purchase of renewable energy technology;
• 4% -- grants to eight cities for education about these technologies;
• 3% -- grants to colleges to train students in these technologies.

The fiscal impact on state and local government will be about $9.8 billion over 30 years to pay both principal ($5 billion) and interest ($4.8 billion) costs.

What do supporters of Proposition 10 say?

• It encourages investments in projects designed to reduce our dependence on foreign oil and improve air quality;
• It will help California meet the requirements of the recently enacted California Global Warming Solution Act to reduce state wide greenhouse gas emissions by 2020;
• Government should provide incentives for research and for consumers and industries to conserve energy and find new sources of energy;
• Energy conservation will increase as the public is educated in the use of new, clean energy alternatives such as energy-efficient appliances and more efficient engines for vehicles.

What do opponents of Proposition 10 say?

• The only winner is the car industry. The majority of money will go to subsidize more vehicles with a smaller amount allocated to support research, development, and production of renewable energy;
• California currently faces a budget deficit and it would be irresponsible to create new expenditures. Our priority should be to fully fund existing programs and fix the current deficit;
• While government participation in reducing greenhouse gas emissions is critical, the private sector should also dedicate resources to lessen dependence on foreign oil;
• While this initiative seeks to reduce petroleum consumption, it does not provide enforcement mechanisms.

Who supports Proposition 10?

Clean Energy Fuels Corporation

Who opposes Proposition 10?

San Jose Mercury News Editorial: “Prop 10 looks green but it’s the wrong shade”, July 28, 2008 (Partial Lists)