California’s Proposition 23 And Our Clean Energy Economy

October 6, 2010 | Posted by: Ben Merritt

California is the nexus of innovation, and this was no more keenly apparent than in a great panel discussion of the leading experts who came together last week to discuss where the state’s green economy is headed.   Hosted by Merritt Group’s Clean Tech Practice, it brought together some of the best minds in the industry to discuss the pros and cons of Proposition 23, a California November ballot initiative that would indefinitely suspend groundbreaking environmental legislation enacted under Assembly Bill 32.

Moderated by Fortune Magazine’s senior writer, Michael Copeland, the panel offered viewpoints from all sides of this contentious ballot measure, including opinions from venture capital, private industry, policy and manufacturing groups. 

California has a long history of enacting groundbreaking environmental laws that have become the national standard, and standards that strive to produce a cleaner environment for 100 of millions of people.   From the state’s 1966 limits on tailpipe emissions, to 1976 restrictions of lead in gasoline, to 2004 limits on greenhouse gases from automobiles, California has been in the forefront of legislation that has help to shape a cleaner world. 

There is much at stake here in regard to Proposition 23, with the basic question being asked to the panelist:   Should Californian suspend its landmark climate change law AB32 until the state’s economy improves, measured by 4 consecutive quarters of 5.5 percent unemployment?   The outcome of the Proposition 23 vote will impact many sides of the equation:  from global warming to jobs to how companies and venture capitalists invest in innovation. 

It was a great and spirited discussion, with each side raising strong points.  Panelists opposing Proposition 23 pointed out that passage of the initiative would be a setback for California’s clean energy initiatives and stifle its ability to provide leadership to the rest of the country and world in achieving new levels of energy sustainability.  Panelist supporting Proposition 23 said that California already has enough environmental legislation and AB32 puts further restrictions on companies already feeling the pinch in a difficult economy, resulting in further job losses. 

More than anything, the panel underscored the importance of Proposition 23 as a critical front and center issue with so much hanging in the balance.   While most panelists held one view or another, all agreed that innovation is alive and well in California, with the outcome of Proposition 23 continuing to shape our clean energy direction for many years to come.  

Also, look for our video in the coming weeks of the event including the panel discussion and one-on-one interviews with the experts, which we’ll post right here in the blog.