California's Proposition 23
This coming campaign season, Californians will be given the opportunity to vote on Proposition 23, an initiative that would suspend California's clean energy legislation, the Global Warming Act of 2006 or AB32. The California Jobs Initiative, a movement reportedly financed by Texas oil companies, is charging that AB32 will cost California 1.1 million jobs and $3.7 billion a year in higher energy costs.
Proponents of AB32 are answering the charge. Joe Romm, a well-known climate expert and blogger, considers it to be "one of the most progressive pieces of environmental legislation ever enacted." According to Romm, in addition to reducing pollution levels and dependence on foreign oil, AB32 is spurring market growth in California’s clean tech and clean energy industries. His climate blog reports that AB32 has stimulated more than $9 billion of private investment, helped pave the way for more than 12,000 companies, and has contributed to the creation of more than 100,000 green jobs. Also, by sending a clear carbon price signal, AB32 provides the long term market certainty necessary for businesses to invest. As a result, California’s clean energy sector has grown stronger and now sits at the forefront of our nation’s energy innovation. In 2007 alone, Californian businesses patented 1,401 new clean technologies, constituting one sixth of all clean energy technology patents in the nation for that year. Contrary to the arguments of the jobs initiative, supporters of AB32 argue that the law has helped buoy California’s economy through the recent recession. Perhaps more importantly, as California has historically done with clean air legislation, AB32 serves as a model for federal action. Suspending AB32 would further complicate the struggles to enact federal legislation on climate change. If California decides that it cannot afford to address climate change, other states will be hesitant to follow California's lead. This would not be welcome news for climate change activists at a time when our most respected environmental groups feel as if they’re losing the battle over the climate bill. Regardless of the outcome this November, it will serve as an important referendum over energy policy.
