California has relied more on federal subsidies to develop its growing alternative energy industry than any other state in the country. With Mitt Romney seeking to trim such aid, the upcoming election will determine the fate of state energy policy.
Renewable energy has been one of the few economic bright spots in a state hit hard by the collapse of the housing bubble, with 170,000 of California's jobs tied to the green economy and a quarter of all venture capital spent in the state tied to clean energy, reports
"California's policies are fueling the
movement toward cleaner electricity," says Halper, "but many experts say the state
can't go it alone. Federal subsidies are the backbone of these efforts
and have helped draw private investment."
With general opposition to such aid a cornerstone of the Romney campaign, "[t]he prospect of a Romney victory in November is a source of
consternation among players large and small in California's rapidly
growing renewable-energy industry."
"The
election will have a huge effect on California energy policy," said
Severin Borenstein, co-director of the Energy Institute at the UC Berkeley
Haas School of Business. "If the federal support dries up, a lot of
this will come to a halt. It is critical to the cost-competitiveness of a
lot of renewable energy here."
FULL STORY: California's renewable-energy plans may hinge on presidential race
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