Let's Hope This Idea Goes Nowhere...

In an oped in today's San Jose Mercury News, Assembly Member Kevin de Leon (D- Los Angeles) says "talk is cheap" when it comes to green energy. Calling AB 32 just the "first step," de Leon writes:

"The best way to keep this issue moving forward in Washington is to keep leading the way here at home. That means creating an investment climate that attracts a sustained infusion of dollars into our growing green economy and finally breaking the boom-and-bust cycle that has plagued this energy sector. To break that cycle we need to prove to Wall Street and capital venture leaders that this isn't just another political fad."

I love it. Bring it on Mr. de Leon.

But, not so fast... If you read further, you quickly learn that Mr. de Leon is not advocating a market-based solution to developing an alternative energy infrastructure in California-- far from it.

de Leon wants to raise taxes on automobiles to create state-run fund to invest in alternative energy projects. This is an apocalyptically bad idea.

If Mr. de Leon wants to do deals, he should move to New York and become an investment banker or perhaps get a gig with one of the Sand Hill Road VC shops. But, for now, he's an elected legislator, and he should focus on crafting legislation that promotes the already strong private sector interest in investing in alternative energy in California (see last week's post about the truckloads of cash being poured in to solar projects in Northern California).

I agree with de Leon that California is going to require a huge infusion of investment capital if it is going to meet its renewable energy mandate, but simply throwing money at the problem won't solve it. In order to achieve real progress, the results-driven, brutal efficiency and high standards of a hard-nosed private equity firm will be required-- not the political unacccountablility of the California legislature.

California must continue pushing green energy policy [San Jose Mercury News]