My theory that government commitment to alternative energy will propel the free-market to run with this concept, seems to be holding true in California. I have been pleasantly surprised that Govenor Schwarzenegger has been such an instrumental force in advocating for alternative energy--surprised I guess because I never would have pictured him so passionate about this. The latest issue of Newsweek has a small article entitled, "Go Green, Get Green." The article states that the "clean-tech industry" has moved forward in light of the governor's bill mandating that California businesses cut their greenhouse gas emissions 25% by 2020. So far in 2006, "$1.4 billion [BILLION!!] in venture capital has flowed to companies such as solar, ethanol, biodiesel and 'green' building firms." The article then discusses certain businesses that may profit greatly in California, such as Luz II, a solar firm that recently signed a deal with Pacific Gas & Electric to construct a 500 megawatt solar plant in the next four years. According to the article, Pacific Gas & Electric, once bankrupt, has now become a leader in the clean-energy market, with investments in solar, wind and hydropower. Another California firm called Biodiesel Industries, Inc. may profit a great deal as well, with its conversion of used cooking oil to biodiesel fuel. Further, Bloom Energy apparently plans to convert zircon sand into fuel cells.

While other states are hesitant to dive into alternative energy, California is serving as a real leader for other states to follow. Given the huge population in parts of California and the countless businesses located there, the governor's 25% cut in greenhouse gas emissions really seems bold and ambitious. The wonderful thing is that instead of the economy in California faltering due to these changes, companies are breaking into the alternative energy market and prospering. This leads to my long held belief that cleaner energy and a strong economy can really go hand-in-hand. While there will always be industries that pollute more than others, California's revolutionary move should pressure them into making some dramatic changes if they want to stay competitive. When are other states going to jump on this bandwagon?