California voters rejected a ballot measure to tax state oil production and fund the development of alternative energy after one of the most expensive referendum campaigns in US history, according to results early on Wednesday.
The state-wide initiative, called Proposition 87, was defeated 55 percent to 45 percent with 90 percent of Tuesday's votes counted - despite support from Bill Clinton, Al Gore and such Hollywood stars as Julia Roberts and Brad Pitt.
Proposition 87 was portrayed as a battle between liberal Hollywood and Big Oil in a state that has long blazed a trail in environmental causes and has one of the most aggressive greenhouse gas reduction laws in the world.
But the measure, which was bankrolled in large part by real estate heir and Hollywood producer Stephen Bing and would tax oil production in California for the first time, was criticised as likely to raise energy prices for consumers.
And Californians, who already pay some of the highest gas prices in the country, were seen as reluctant to tack on another tax, even in the name of progress.
"Generally speaking, the public in California does not favour initiatives that require raising taxes," said Kareen Crayton, an expert on voter referendums at the University of Southern California.
Even the Los Angeles Times, which tends to lean left in its editorials, called Prop 87 "nutty" and said that research into alternative energy sources was already booming in the state - driven by the market, not government.
Big oil, meanwhile, lined up to fight Proposition 87 and, lead by California-based Chevron Corp spent nearly $100 million to defeat the measure. If it had passed the California government would have collected $200 million to $380 million a year in new tax revenue.
California imports about 42 percent of its oil from foreign countries with the rest coming from state producers and Alaska. Among the top oil producing states, California is the only one with no tax for extracting oil. Supporters and opponents combined spent more than $140 million on Proposition 87, far more than was spent on the governor's race, making it the costliest initiative campaign in California history and one of the most expensive in the United States.
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