One of the world's most ambitious laws to combat global warming survived a challenge today as California voters overwhelmingly rejected a measure that would have put the state's plans for more renewable energy and a market to curb greenhouse gases on ice.
The defeat of Proposition 23 marked a big victory for Silicon Valley investors, who poured millions of dollars into defending California's AB 32 law and protecting their massive investments in green technologies ranging from solar power to electric cars.
After the failure of federal climate legislation in Congress this year, the fate of California's law was viewed as a US turning point - either away from addressing global warming or toward stronger action to curb greenhouse gases.
"This is reaffirmation that we are a country of some enlightenment," said Michael Eckhart, president of the American Council on Renewable Energy, a trade group.
"A majority of Californians, even in great stress of unemployment and economic demise, will still accept this responsibility. Rejecting an attempt to destroy the environment is a good thing."
Opponents of Prop 23 also cheered yesterday's election of Jerry Brown as California governor. Mr Brown has said he supports a target of deriving 33 per cent of California's electricity from renewable sources like solar and wind.
Supporters of the measure said it would halt a dangerous rise in energy costs at a time when California - hit hard by the recession, financial crisis and housing meltdown - can least afford it.
With 48 of precincts reporting, the No vote on Proposition 23 stood at 59 per cent, with 41 percent in the Yes column.
Prop 23, largely funded by oil companies, would have put AB 32 on ice until double-digit unemployment falls to 5.5 per cent or less for four straight quarters. That scenario has happened rarely in California in the last 20 years, the measure's opponents argued.
The "No on 23" campaign also claimed the measure would have taken critical support away from a green business community that has generated billions of dollars in investment and created millions of jobs in the state.
Reuters