California Fuel Tax Proposal Called Into Question

The proposed measure, which would raise taxes on petrol to fund conservation and alternative energy efforts, is under fire due to benefits it would provide one of its major backers.

1 minute read

August 7, 2006, 2:00 PM PDT

By Irvin Dawid


In November, Californians will decide on the Proposition 87, the Clean Alternative Energy Act, that would impose a 1.5 percent to 6 percent petroleum tax, depending on the per-barrel price of oil, on in-state oil extraction to fund the research, production and promotion of alternative energies. The tax is expected to raise about $400 million a year.

Vinod Khosla, one of the founders of Sun Microsystems and now a prominent Silicon Valley venture capitalist, could profit handsomely if the measure passes. Mr. Khosla put up more than $1 million in seed money for the alternative fuels measure earlier this year. He is also a big investor in ethanol, an alternative to gasoline and one of the energy sources that could benefit if Proposition 87 passes.

"Just because I could benefit from it, doesn't make it wrong," Khosla said. "This is the right thing to do, for a lot of reasons."

Sacramento Bee political columnist Dan Weintraub discusses the relationship between California's intiatives and their backers - exposing a financial relationship that may call them into question, warning that it "is not a good way to make policy".

Thursday, August 3, 2006 in The Sacramento Bee

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

A large Google data center building in the Netherlands.

Rethinking Computing: Researchers Tackle AI’s Energy Demands

USC researchers are reimagining how AI systems are trained and powered — through smarter algorithms, innovative hardware, and brain-inspired designs — to dramatically reduce computing’s energy footprint.

May 4 - USC News

Close-up of smartphone with Zoox logo and screen with blurred image of Zoox autonomous vehicle in background.

Amazon-Owned Robotaxis to Begin Testing in LA

Los Angeles will become the sixth city where Zoox is testing its autonomous vehicle technology.

May 4 - Smart Cities Dive

NYC MTA train on elevated rail with Manhattan skyline visible in background.

New York MTA Says No More Borrowing, Will Cut Costs Instead

The agency says it won’t take out any new loans to finance its planned improvements and is finding other ways to cut costs.

May 4 - Bloomberg CityLab

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Senior Manager Operations, Urban Planning

New York City School Construction Authority

Building Inspector

Village of Glen Ellyn

Manager of Model Development

Central Transportation Planning Staff/Boston Region MPO