California is America's shining beacon for clean energy development; however, proposed legislation -- Prop 23 -- could threaten the future of this burgeoning renewable energy market.

The Los Angeles Times reports California is not only the number one destination for investments in alternative energy statup companies in the United States, but also the world.  Data from the non-profit orginization Next 10 shows more than 40% of worldwide renewable energy and cleantech financing for startup companies went to businesses in California.  In the first six months of 2010 almost US$3 billion has been invested in California cleantech firms -- more than triple the total investment of 2009.

Proposition 23, an initiative which will be on the election ballot in November, has stirred up quite the controversy.  The proposition would temporarily halt AB 32, a state law requiring utilities to purchase 33% of their power from renewable sources by 2020; when the unemployment rate drops below 5.5%, AB 32 would be reinstated.  Proponents of Prop 23 say eliminating AB 32 will stimulate the economy and create jobs for Californians.

Opponents of the proposed initiative question the logic of hindering one of the most booming industries in the state.  They point out that if Proposition 23 is passed billions of investment dollars and thousands of jobs will find themselves in locations other than California.

In the fight to attract business in the transforming energy industry and become a leader in the new energy economy, the United States has been crippled by its addiction to oil.  The U.S. is by far the world's largest consumer of oil, and has been for some time.  As a result, oil companies have serious interests in maintaining their largest market, which is contemplating a significant reduction in consumption.  The oil industry has spared no expense trying to hold on this critical market.  It spent millions lobbying against the climate and energy legislation proposed in the Senate and Congress.  And, now it is spending millions in support of Proposition 23.

The clean energy market will continue to grow, with or without the help of the American people and its government or those within the energy industry.  Some countries will ride the boom of this immense industry, and others will not.  The question is whether the United States will be among them.  The results of Prop 23 this November will offer a great litmus test.