Proposition 23 would suspend implementation of California's landmark Assembly Bill 32 (AB32): the Global Warming Solutions Act of 2006, which goes into effect January 1, 2012.
Call it the battle of "old vs new," "clean vs dirty," "visionary vs backward thinking," the vote on Proposition 23 in California has turned into a test of whether climate change/clean energy legislation can move forward in the US. California's AB32 is the only economy-wide greenhouse gas law in the U.S. If it can't take hold in California, our greenest state, what are the chances of enacting federal legislation?
Polls show that Prop 23 is likely to be voted down, so polluters are funneling millions of dollars into Prop 26, which would eliminate its funding. Read page 2 of this article to learn about Prop 26.
What's AB32? It requires that California reduce greenhouse gas emissions to 1990 levels by 2020. To do that, AB 32 provides the authority to implement California's Low Carbon Fuel Standard and Renewable Portfolio Standard, both of which create immediate demand for large-scale, low-carbon transportation fuels and electric power. The bill also authorizes the creation of a cap and trade market for greenhouse gas reduction credits. As part of this program, the California Air Resources Board would develop protocols to certify low-carbon and other pollution-reduction attributes of clean energy technologies.
Prop 23 would put AB32 on hold until California's unemployment rate falls from the current 12% to 5.5% or less for four consecutive quarters. The state's unemployment levels have barely touched such low levels since 1976.
You probably know by now that Proposition 23, known as the "Dirty Energy Initiative," is funded by a handful of oil companies and conservative billionaires who want to maintain the status quo.
Valero Energy - the largest oil refiner in the US, and the fourth biggest polluter in California - contributed over $5 million, and oil refiner Tesoro, the eighth biggest polluter, pitched in $2 million. The Koch brothers, who are behind the Tea Party, gave $1 million. Other major contributors include Marathon Oil ($500,000), Occidental Petroleum ($300,000), and the Adam Smith Foundation ($500,000).
Defenders of the status quo insist California can't afford more environmental regulations when unemployment is so high. They say AB32 will hurt the economy and cut jobs because industries will move to less onerous states.. The fact is, however, that since AB32 passed, California has become the center for cleantech innovation in the US, garnering over $9 billion of private investment capital and employing over 500,000 people.
Luckily, big oil isn't the only big money in California. The cleantech community has raised $30 million, matching that of the fossil fuel industry.
Leading contributions from the cleantech community include:
John Doerr, partner of venture capital firm Kleiner Perkins Caufield & Byers ($2 million)
Vinod Khosla, of venture capital firm Khosla Ventures ($1 million)
Intel co-founder Gordon Moore ($1 million)
The Environmental Defense Fund's political arm (over $1 million)
League of Conservation Voters ($1.2 million)
George Shultz, Sec't of State under President Reagan has also been mobilizing against Prop 23, saying the climate law puts all the energy sources, old and new, on a level playing field. 68 of the biggest investment managers in the US - managing $415 billion in assets - have signed on, including Deutsche Bank Climate Change Advisors, the National Venture Capital Association, Domini Social Investments and Pax World Management.
