Arnold Schwarzenegger may be a self confessed “lame duck” governor but he is so angry at two Texan oil companies for pouring millions into Proposition 23 that he is taking his considerable charisma and energy on the road to prevent it passing. The Proposition seeks to freeze the California governor’s landmark climate change legislation (AB 32) and undermine his green legacy. Arnold argues the economic case for investing in green innovation (emphasizing job creation) and looks West….
.
“China has made a decision – backed by billions and billions of dollars – that green tech is where the economic action is going to be…it’s an ancient culture with new ideas. We cannot let American be a young culture with old ideas.” Arnold Schwarzenegger.
.
Backers of Prop 23 say AB 32 will damage the fragile California economy and kill jobs.
You’ve no doubt heard about the November ballot measure (Proposition 23) which aims to to scupper California’s landmark climate change legislation, AB 32. In this Fresh Dialogues interview, Carl Guardino, CEO of the Silicon Valley Leadership Group, didn’t pull any punches in his response to those behind the plan.
“We’re not going to sit idly by and watch you dismantle our environmental achievements… which are also economic ones,” says Carl Guardino.
The Silicon Valley Leadership Group, which represents over 300 major companies in the valley, including Google, Hewlett Packard and IBM (approximately one in three private sector jobs) provides a proactive voice for Silicon Valley businesses on public policy issues, locally and in Sacramento and Washington D.C.
.
Here’s a recap of the issue:
AB 32 is the Golden State’s attempt to cap carbon emissions to 1990 levels by introducing a version of a cap-and-trade carbon tax which would hit power plants, refineries and cement manufacturers hard.
What is Proposition 23?
Supporters call it “The California Jobs Initiative,” and point to the high cost and potential job losses of implementing AB 32; but Proposition 23’s main impact would be to suspend (and effectively repeal) the provisions of AB 32. In turn, AB 32 supporters have launched a Stop Dirty Energy Prop Campaign to thwart the proposition. As of today, Proposition 23 is way ahead in the social media popularity index with over 4,500 Facebook “likes” for Prop 23 compared to just under 3,000 for its opponents.
And here’s how Guardino describes it:
“A veiled attempt to dismantle California’s environmental achievements.”
.
Who is behind it?
Two Texas-based oil companies, Valero Energy Corporation and Tesoro Corporation, provided the initial funding to launch the campaign. Valero donated over $4 Million to the cause.
Guardino’s argument
“This is an economic engine not a caboose and we’re not going to let folks ruin the engine that continues to fuel the renewable energy, clean green economy. It’s not only good for our environment – and it’s critical – it’s also good for our economy and jobs; and we’ve proved that through innovation of products, processes and what we do with our people every day in Silicon Valley.”
“What’s wonderful about Silicon Valley is that it’s never been an ‘either or’ – it’s never been about the environment or the economy,” says Carl Guardino. “We can have our cake and eat it too.”
Reid Hoffman’s concept of leveraging the power of entrepreneurship was echoed again this summer when I talked with Lesa Mitchell, VP for Advancing Innovation at the Kauffman Foundation. She shared her enthusiasm that, for the first time, the Federal Government is waking up to the enormous impact entrepreneurship can have on the economy and recently created an Office of Innovation and Entrepreneurship. It has limited staff and funding, but it’s a start. I wonder if it will one day include a department of GREEN entrepreneurship? It’s widely accepted that “picking winners” is not the best use of government resources, however, there is much government can do to create a fertile ecosystem for startups to thrive.
Lesa Mitchell recently testified before Congress and shared some of her top recommendations with me:
1. The need to development world-class commercialization boot camps for university students and faculty and entrepreneurs, to get innovation out of labs and into commercial production – this she says is the “low hanging fruit.”
2. Before giving grants, the government must set rules to encourage transparency, sharing data, resources and outcomes. Mitchell cited Kauffman’s iBridge Network (a Craigslist for innovation) as a suitable model to create a “lens into universities.”
3. A free agency licensing model should be adopted to encourage more rapid commercialization of innovation. This idea has created some controversy, but the Kauffman team should be applauded for not pulling its punches.
For more information on the Kauffman Foundation’s work on entrepreneurship and startup trends click here
Former U.S. Secretary of State, George Shultzdelivered an eloquent summary of the facts surrounding AB 32(California’s answer to global warming) at the Silicon Valley Energy Summit at Stanford University on June 25. Shultz, a Distinguished Fellow at the Hoover Instituteand Advisory Council Chair at the Precourt Energy Efficiency Center, was billed as a Moderator/ Provocateur at the event, and despite his 89 years, he rose to the challenge and then some. In concluding remarks, he said it would be “an unmitigated disaster” if the measure to suspend AB 32 passes in the November election.
He was moderating a panel which included Lawrence Goulder, Director of environmental and Energy Policy at Stanford; Kevin Kennedy, Assistant Executive Office, Office of Climate Change, California Air Resources Board (CARB) and Peter Miller, Senior Scientist, Natural Resources Defense Council. Check back for more details on each soon.
“The emission of carbon imposes a cost on society…you have to recognize that cost…” George Shultz
“If we’re going to level the playing field…we want a system that’s number one: effective… and number two: creates as little drag as possible or even gives a slight lift to the economy.” George Shultz
This week, a report by the Pew Charitable Trustwas released, underlining how much the United States is trailing in the clean tech race. Phyllis Cuttino, Pew’s Program Director wrote a succinct piece in the Huffington Post pointing to the fact that the United States fell far behind China in clean energy finance and investment in 2009. China’s total was over $30 billion compared to the U.S. clean energy investment of approximately $17 billion. In light of the BP oil spill and the continuing saga of disaster, both environmental and economic, she reaches a strong conclusion:
An excellent time to revisit the advice of one of the most vocal advocates for a new energy policy: Author and New York Times columnist, Tom Friedman who spoke with Fresh Dialogues on the subject of energy policy and DC last year.
Here’s a link to the VIDEO (Tom Friedman on China Envy)
Also see Tom Friedman on Copenhagen Video “This is a problem that will be solved by innovators, not regulators.”
From the archives: I caught up with Pulitzer Prize winner, Tom Friedman, at the Foothill CollegeCelebrity Forumlecture series, where he delivered a spirited argument for why the United States must embrace a green economy. In this second part of our interview, we explore his part in driving the green agenda. Last January, he took part in a congressional hearingon green tech and economic recovery, sponsored by US Senator, Barbara Boxer. We discuss his role in that; and how he deals with critics.
“I use my platform as a journalist to drive this agenda that I see as important… I see a lot of things that are very exciting happening – exploding really – on a kind of small scale, but they haven’t yet reached critical mass and when you’re talking about changing the climate, you are talking about critical mass. It hasn’t yet been translated into policy at scale.”
“It was an informal hearing, sponsored by Barbara Boxer, on climate and energy. John (Doerr) and I were the two main expert witnesses…No one intervention like that is going to be decisive, it takes many more…most of all from the President.”
On dealing with critics
“I think there’s a big audience for what I say and I don’t really pay attention to the critics. I keep on marching on. I hear it and it’s fine. And it’s a free country. You can say whatever you want. But I’ve got my own bully pulpit and I use it. I don’t use it to shout back at critics; I use it to get my message out. I’m looking forward. You know, the dogs bark and the caravan moves on. I’m in the caravan. My feeling is, I’m out there. And therefore, if you can’t take the heat, don’t be out there… Why would I waste a column writing about one of my critics? So what I always say to the critics is: ‘you may be writing about me, I really appreciate that, but don’t think for a second that I’d waste a column writing about you.’ ”
What drives Tom Friedman?
“I’m having fun. I have the best job in the world. I get to be a tourist with an attitude…go wherever I want, write whatever I want…and they pay me for that. I wouldn’t give it up for the world. I still enjoy getting up every morning, hitching up my trousers and getting out there…opening up my laptop and taking on the world.”
The interview was recorded at the Flint Center in Cupertino on September 10, 2009
Last night, President Obama addressed the nation for the first time from the Oval office. His subject: the BP oil spill disaster. Although some say he was “vapid”, Obama seized the opportunity to call for a clean energy future and end our addiction to fossil fuels. He underlined China’s massive investment in clean energy jobs and industries (subtext: just like the Space Race in the 50’s & 60’s, the race for Clean Energy has begun, and the U.S. is falling behind); and reminded us that we send almost ONE BILLION DOLLARS EACH DAY to foreign countries for their oil.
“The tragedy unfolding on our coast is the most painful and powerful reminder yet that the time to embrace a clean energy future is now. Now is the moment for this generation to embark on a national mission to unleash America’s innovation and seize control of our own destiny.” President Obama.
.
In this week’s Fresh Dialogues, we look at the advice gleaned recently from a panel of clean tech experts in Silicon Valley. If the Obama administration is serious about unleashing America’s innovation and creating a clean energy future, it would do well to take note.
From the Fresh Dialogues archives: The Obama administration ought to have sent an envoy to the FountainBlueState of Clean Green Conference this year. A panel of Silicon Valley clean tech experts had much to share on this question: how can Obama better jumpstart the clean tech economy?
Tim Woodward, Managing Director, Nth Power said the government needs to create market demand, and recommends that every government building should have solar power and be retrofitted for energy efficiency; but he warned,
“There’s a little too much of a ‘large check mandate’ in the Federal Government that picks technologies and stifles innovation at lower levels: figure out how to get smaller dollars into the innovation engine of smaller companies.”
“I look at the pricing and incentivizing through market pricing. We’re still subsidizing imported oil without putting the investment into alternative energies…I think we should put a tax on imported oil and use it to help pay off some of the defense spending we’re using to protect the transmission of that oil. We need to forge ahead with cap and trade legislation… until we have a price on carbon it’s hard for the markets to plan and have any certainty.”
.
Elise Zoli, Partner and Chair, Energy Practice, Goodwin Procter said that the Department of Energy needs to improve the low commercialization rate of national labs and is excited about a new national initiative to create virtual access to all the labs’ technology… “so you can see the technology, acquire it and begin to commercialize it.”
“The DoE has a fantastic lab structure, producing some really innovative technologies… (we need to ) leave them there and help them – through public/private partnerships – and take that technology out of the labs…”
But
“There are things they (the DoE) do terribly and being a bank is one of them.”
.
And Elise has one last piece of advice if you have a green energy technology you think the Feds can use, contact Richard Kidd at the Federal Energy Management Program: ”Richard Kidd will not know you exist unless you call him…send an email to Richard’s team and use my name!”
Other panelists included Dan Adler, President, California Clean Energy Fund, and Matt Maloney, Head of Relationship Management, Silicon Valley Bank. The interview was recorded at Fountain Blue’s Conference on January 29, 2010.
