California’s bold climate law gets green light

When national climate legislation stalled in the Senate in 2010, all eyes turned to California.

The same special interests that thwarted progress on the federal level set their sights on California’s Global Warming Solutions Act (AB32). They spared no expense trying to kill it.

That fall, the battle focused on Proposition 23, an industry-backed ballot initiative that would have blocked the Golden State’s innovative law. We helped build a powerful coalition to defend the law, including nonprofit groups, businesses ranging from PG&E to Nike, and political leaders of both parties.

California voters soundly defeated the proposition. It marked the first time a global warming law was put before voters.

Oil lobbyists vs. clean air

Misleadingly labeled the “California Jobs Initiative,” the campaign to derail AB32 was funded primarily by Valero and Tesoro, Texas-based oil companies that operate huge, polluting refineries in California. EDF and allies exposed the ruse, revealing that 97% of Prop. 23’s contributions came from oil-related companies.

The companies ran a scare campaign, warning voters in a state reeling with 12% unemployment that AB32 would drive up energy prices and cost jobs. To counter these false claims, our sister organization, the Environmental Defense Action Fund, ran TV and radio advertising. (Contributions to the Action Fund are not tax-deductible, so it can spend on lobbying activities.) “This was essential to spread the truth to voters,” said Derek Walker, EDF’s director of strategic climate initiatives.

People power helped tip the balance. In the closing days of the campaign, 3,200 volunteers went door-to-door to urge voters to reject Prop. 23. We told the real jobs story. California has 500,000 jobs in the clean-tech sector, which is growing up to ten times faster than the rest of the state’s economy.

Big win for clean energy

By a stunning 61% to 39%, Californians endorsed a clean energy future and preserved the momentum for global warming action.

[Defeating Prop 23] is a monumental victory for energy independence and national security.

EDF played a key role with its partners in making it possible

Former Secretary of State George Shultz
Co-chair of “No on 23” campaign

“With the world’s eighth largest economy, California can influence not just national climate policy, but global policy as well,” said Steve Cochran, EDF’s vice president for climate.

Clean tech takes off in California

California receives the lion's share of clean tech investment.

Since AB32 was enacted in 2006, clean tech enterprises have received more venture capital in California than in the other 49 states combined. The sector has received more than $9 billion in venture capital investment, including $1.5 billion in the first quarter of 2011 alone.

Green tech investor Vinod Khosla told an audience at Google that solar companies are building factories in California even though it would be cheaper to manufacture photovoltaic panels in China.

“The markets are here, the innovators are here, the ecosystem is here,” he explained, noting that the state’s pioneering global warming law has created a predictable regulatory climate for investment.

Next steps for California's model policy

The comprehensive law, to take effect in 2012, will alter how utilities generate electricity, automakers design cars and refineries make fuel – and is a model for national action.

California’s bold climate law uses a cap-and-trade program to keep costs low, and multiple incentives for cleaner cars and renewable energy. Our experts provided technical advice and worked with industry and academic researchers to devise strict environmental standards for biofuels.

Environmental justice groups challenged California’s authority to institute cap-and-trade, but that authority was upheld in a May 2011 court ruling, allowing the state to proceed with implementation once a more thorough analysis of policy alternatives is performed. EDF filed an amicus brief supporting the standards.

Challenges remain

Despite the progress, there will be continued challenges in the courts, both to eviscerate the law and to delay implementation. In Congress, there are also moves to revoke EPA’s authority to cut pollution under the Clean Air Act. We will vigorously defend both the state’s and EPA’s ability to protect public health and the environment.

The lesson of Prop. 23 is not only that clean energy is essential for our environmental and economic future, but that, with informed voters, it is also a political winner.

Next: Defend the Clean Air Act

Big, industrial polluters and their political allies are now attacking the Clean Air Act.

Don't let them win! »