California voters spurn huge oil tax and new energy bureaucracy.

Oil and gas consumers nationwide can celebrate the defeat of Proposition 87, which proponents billed as a measure to reduce California's dependence on oil and promote energy alternatives. The ballot proposition, which launched the most expensive state initiative battle in U.S. history, was defeated on November 7 by a 55 to 45 percent margin. Prop. 87 would have raised $4 billion for alternative energy sources and "clean" vehicles, largely through taxes on California oil companies. Prices on gasoline, oil, and other oil-based products would have skyrocketed and oil production in the state (California is the third largest oil-producing state) would have decreased, leading to more U.S. dependence on foreign oil.

A high-powered campaign by environmentalists and Hollywood celebrities gained early support for the measure. Robert Redford, Julia Roberts, Geena Davis, and Desperate Housewives star Eva Longoria were among the glitterati who campaigned for the effort to kill oil production in the Golden State. Former President Bill Clinton, former Vice President Al Gore, Senator Barak Obama, and other VIPs also played prominent roles.