Schwarzenegger destroys new bill, demands increased wind & solar power

California has a reputation to uphold, and partly that means dedicating a lot of attention to generating energy from renewable sources. Governor Schwarzenegger has demonstrated his commitment to that reputation by signing an executive order mandating that state utility companies will draw at least 30% of their power from renewable sources like wind and solar power by 2020.

That sounds great, and the constituency in California very much supports green energy production. The conflict arises when state leaders begin talking about specifics. A group of democrats backed by some of the state’s utility companies gained support for passing a bill that would specify how much renewable energy could be pulled from outside state borders.

It seems that Schwarzenegger wants to reach that 30% milestone regardless of where the energy is produced. If wind and solar power from other western states can be piped into California more cheaply then he wants that path free and clear. Essentially that means state utility companies could source renewable power from anywhere as long as their overall proportion is appropriate.

Democrats are concerned that could send a lot of money – and jobs – across state lines in a time when California is in need of an economic boost. That tune sounds familiar, and green energy something many states and countries are toting as the solution to their economic woes.

But the economics aren’t completely straightforward. Limiting the ability of companies to source energy from the cheapest source would raise electricity prices, and could restrict their ability to provide adequate energy especially during peaks of demand.

Schwarzenegger has used this tactic in the past, he pulls public attention toward a new goal everyone can agree with while also putting his foot down on a bill he opposes. The press eats it up and generates buzz about the new directive, which defrays political turbulence.