(Sacramento) - After more than three hours of debate this evening, by a 45-30 vote, the Assembly fell nine votes short of the two-thirds threshold necessary to pass AB 3X 9, a bill that would close Big Oil tax loopholes to mitigate statewide teacher layoffs.

Assemblymemeber Jared Huffman (D- San Rafael) said:

"Californians pride ourselves in leading the nation and the world when it comes to protecting the environment and fighting global warming. But we have a dirty little secret in California: we appear to be the only government in the world which does not collect taxes or royalties on oil production.

For all of our cheap talk about the environmental leadership, California has been a cheap date for Big Oil.

We've allowed the industry to soak up billions in tax breaks, government funding, and indirect subsidies that pay for oil-related environmental damage.

Enough is enough. It's time to close these loopholes and stop subsidizing an industry that doesn't need more money … but does need to clean up its act for both consumers and the environment."

AB 9xxx would have set a 6 percent severance tax on oil extracted in California. The revenue would have been used to mitigate teacher layoffs from the Governor's proposed cuts. AB 3X 9 also responded to overall petroleum industry profiteering by placing a 2 percent windfall profits tax on oil companies. It had 43 Democratic co-authors.

The bill would have generated $1.2 billion in yearly revenue for the state. 21 other oil producing states in America already levy a severance oil tax at rates ranging from 2 percent to 15 percent on oil producers. Most of those states spend more per pupil on education than California.