A Moment of Truth for the Golden State

This week, California faces a moment of truth. Will we live up to our aspiration to re-power the Golden State with clean, renewable energy and advanced efficiency technology, or take a rain check on the new energy economy?

As senior executives of California-based companies in the technology and entertainment industries respectively, we strongly believe that now is the right time to invest in clean energy. Such investment promises to be California's salvation in the deepening global recession, and our path to a new era of economic leadership and environmental progress.

The defining moment we face is a vote by the state air resources board on whether to implement California's landmark Global Warming Solutions Act, known as AB 32, or instead to fold under pressure from the fossil fuels industry, and from naysayers in traditional industry who portray every swing of the economy, either up or down, as an excuse for inaction.

AB 32 calls on Californians to reduce our global warming pollution to 1990 levels over the next 12 years with a variety of strategies such as boosting energy efficiency and producing at least a third of our electricity from wind, sun and other clean power sources. The ultimate target is an 80 percent reduction in global warming emissions by 2050, the level scientists think necessary to avert the worst impacts of climate change and ocean acidification.

When Governor Arnold Schwarzenegger signed AB 32 into law two years ago, he said that it would be good for business and create "a whole new industry to pump up our economy." He was right on the money. That's one reason the bill garnered support from more business organizations and leaders than from environmental ones.

Since then, two important factors have changed: both the economy and the polar icecaps appear to be experiencing meltdown much faster than experts previously predicted. That's why California needs AB 32 now more than ever.

Implementing AB 32 will revitalize our economy by generating tens of thousands of good-paying jobs - jobs that use the skills California's workforce already has. Moving forward with AB 32 will help us gain control of our own destiny by breaking our addiction to fossil fuels, and enable us to lead the rest of the country toward energy independence.

Sure it will cost money. But if history is any guide, the return on investment will be spectacular. Consider California's remarkable experience with the limited investments we've made already in energy efficiency. By setting high statewide standards for the efficiency of appliances and buildings, each Californian's electricity consumption has remained constant despite our ever-increasing appetite for gadgetry. Meanwhile, per capita energy consumption nationally has increased nearly 50 percent. That's saved California households $56 billion, according to a recent U.C. study - money that was redirected to other goods and services, creating 1.5 million jobs in the process.

Energy efficiency is the cheapest and fastest way to reduce global warming emissions from burning fossil fuels, but we can also benefit economically by developing our capacity to generate clean power. California is blessed by its natural resources, including prodigious amounts of wind, sun and geothermal energy. It's nature's gift to us, but so far we've squandered most of it. Why not capture that free energy and simultaneously become the market leader in designing and manufacturing clean power technology for the rest of the world?

Our companies are not in the energy business, but both of them are making substantial investments in energy efficiency and clean power. We're doing that not just to be good corporate citizens but because we've penciled it out and know that those investments are good for the bottom line. That's just as true for the state as a whole.

California was ahead of its time when it adopted the Global Warming Solutions Act two years ago. Let's capitalize on that lead. Now is not the time for hesitation or half-measures. As the President-elect has demonstrated with his economic stimulus proposals, now is the time for bold investments that will get our economy moving again and put it on a path of sustainable growth.

Eric E. Schmidt is the chief executive of a technology company based in California. Alan F. Horn is president of an entertainment company based in California.

Comments

[Javani]

"As the President-elect has demonstrated with his economic stimulus proposals, now is the time for bold investments that will get our economy moving again and put it on a path of sustainable growth."

And cap and trade did this in Europe how?

Talking about sustainability, Merkel and the other European parties are getting the idea that the Kyoto scheme isn't, and plan to dump carbon credits for cash on American carbon exchanges, and around 2012 let Kyoto drift into the sunset of non-renewal. This is the most economically profitable strategy for them.

[45245]

why not cap it at 2008 levels....­...i guess that is to reasonable right?

[KillTheMessenger]

Not if you listen to science. And now we know you don't.

[joebaggadonuts]

It's great to have you two guys working together on this. For the technology and the "content" guys to see things the same way is a rarity and I do appreciate you doing this article/plea together. Thanks.

[Griffinick]

Very well pointed article. It is very important to the economy of the State, as well as the Country, that we continue to lead the way forward in these ways

Granted, the way will be tough-but the benefits are many.

At a personal level-I hope that some of the Newer improved Solar Technologies such as Nanosolar Technologies find their ways into the hands of the General Public like me, and are not only limited to sales to Corporate Giants like the Utility Companies!

Personally, we have installed Old technology Solar Panels until such time as our household generation will be increased by the newer technologies that will produce many times the 9Kwh we currently produce in the same or similar replacement in the same footprint location.

I am surprised that I didn't find this post coming from my membership in "We"-but thank heavens for my daily fix of "Huff"

[45245]

when it becomes cost effective will talk......­...until then i'll toss another log on the fire

[kareanderson]

Darryl Steinberg will be a pivotal player in defining which way our state will go.

[Bitsko]

I've been hearing these claims about business being energy efficient and cleaner for decades, and still haven't seen very much evidence that it is at all true.

[KillTheMessenger]

Then you haven't looked at all at the evidence:

http://www.wbdg.org/images/energycodes_1.gif

CA is suing over CO2 emission standards for cars sold in the state. That's virtually equivalent with tighter state wide CAFE standards. The state either wins that lawsuit or the Obama administration will override the false EPA decision. Once that happens you will see transportation energy gains, too.

[GlassManDan]

If Californian industry ran as clean and smoothly as the Google we would all be much better off.

[Sp8z]

If we all had the extra cash of Goggle we could all afford to go clean and green too.

[RobertHenryEller]

Dear Mr. Schmidt:

A sensible argument. However, some questions:

Why did you list yourself as "chief executive of a technology company based in California?"

Do you believe that this affords your message some universality it would not otherwise have? Do you simply wish to be modest? Is there some ego involved here, as in "Everybody knows who I am?" Or is this meant to stroke readers who do know who you are, that they are somehow "in" because they do know?

As you can see, I find it a distraction, more than anything, that you do not simply state that you are CEO of Google. If there is a point, and you believe it adds to the impact of your message, I'm afraid it was lost on me. Not the most important think on either your or my agenda, but I'm curious.

Thanks, Mr. Schmidt.

[heywhat]

So, you read that entire piece and the thing you find most in need of comment is that Mr. Schmidt is CEO of Google? As you yourself state, far from the most important point in the post - maybe you need another cup of coffee?

[BottomLine2008]

Great piece.

The ARB will pass the scoping plan.

[danielmcvicar]

Thank you. It is time for California to lead the way.