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Prop. 10 Would Fuel Rebates For Alternative Vehicles

Proposition 10 on the California ballot would use taxpayer money to provide rebates for buyers of alternative fuel vehicles. Opponents say the measure only benefits a Texas billionaire and natural gas

Proposition 10 on the California ballot would use taxpayer money to provide rebates for buyers of alternative fuel vehicles. Opponents say the measure only benefits a Texas billionaire and natural gas investors. KPBS Environmental Reporter Ed Joyce has details.

Proposition 10 would authorize a $5 billion bond that would have to be repaid from the state's general fund.

It would provide $2.5 billion in rebates for buyers of alternative-fuel vehicles and another $340 million in rebates for highly fuel-efficient vehicles.

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Andrew McAllister with the California Center for Sustainable Energy says using natural gas for transportation fuel is a short-term approach and has limitations to reducing carbon emissions.

McAllister : So I'm hesitant to endorse something that really invests a lot of infrastructure money in natural gas because I think the long-term end point that we want to get to is electrification of the transportation system.

But supporters say Prop.10 would help combat global warming and make California a leader in the alternative-energy industry.

TV Advertisement: With performance audits, strict accountability and no new taxes. For energy independence, for clean air, for California's future.

The state's legislative analyst says Prop. 10 would cost the state $9.8 billion, or about $325 million a year over 30 years.

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The California Tax Reform Association says the state can't afford the bond.

Judy Dugan with Consumer Watchdog says the measure was designed to benefit its chief sponsor, Clean Energy Fuels Corporation, a company founded by oilman T. Boone Pickens.

Dugan:
The guy who is the majority owner of a company that supplies compressed natural gas for fuel.

Prop. 10 supporters says there's no guarantee Pickens' company would benefit.

Pickens company, which owns natural gas fueling stations across North America, has donated more than $4 million to the campaign.

Dugan of Consumer Watchdog says the measure won't do much for consumers or the environment.

Dugan: It makes a lot of promises in the advertising. It makes a lot of promises in the ballot descriptions. But if you read the actual ballot initiative, it offers zero guarantees of any air quality improvement or of any investment in the state of California.

But supporters say the bond money will jump-start the market for cars and trucks that run on hydrogen, natural gas, methane, electricity and propane. And will cut greenhouse-gas emissions to 1990 levels by 2020.

Ed Joyce, KPBS News.