Former California Controller and eBay honcho Steve Westly, now
on the cover of Venture Capital Journal, discusses greenhouse
politics and investing in this NWN video.
As Governor Arnold Schwarzenegger spends the bulk of his week up in Canada, signing climate change accords with British Columbia and Ontario, fending off the array of wind and solar farm developers who want him to dedicate their projects, we’re reminded of the impact of California, with top Democratic presidential candidates adopting the state’s climate change program and Silicon Valley leading the charge in new tech investing for the greenhouse era.
Former state Controller and eBay honcho Steve Westly, a longtime Democratic and environmental activist, has thrown himself into the era of greenhouse investing and, now in a venture capital firm housed at Silicon Valley’s leading venture capital firm, is the cover subject of the latest Venture Capital Journal. He’s on the board of directors of Tesla Motors, maker of the first electric-powered sports car, which Schwarzenegger and George Clooney have on order, and is very involved with solar energy and biofuels.
Westly ran a near-miss race for the Democratic gubernatorial nomination last June in California against a conventional liberal Democrat, Phil Angelides, embraced by the party’s establishment. Angelides went on to a 17-point landslide loss against Schwarzenegger, in one of the more Democratic states in the nation, in the midst of a national Democratic wave.
You might suppose Westly would be upset about this. But the former top eBay executive is, as Warren Beatty puts it, a “sunny personality.” Besides, he probably saved himself $40 million from his personal fortune. Schwarzenegger, once he was off his seemingly right-wing kick of 2005 and back on the course he discussed in 2002 and 2003, was going to be hard to beat. And now Westly, having gained valuable experience, his fortune more or less intact, can be a major participant in the green tech/clean tech — advocates can’t quite decide on the name — “explosion,” as Schwarzenegger calls it. The phenomenon is something that all the top Democratic presidential candidates extoll, although perhaps none so much as Barack Obama, for whom Westly is the California co-chairman.
Some Republicans talk up the bandwagon of clean tech, too, with John McCain, an advocate of greenhouse gas regulation, and Rudy Giuliani, seen in an earlier NWN video discussing the problem of climate change, foremost among the new crew. Even President George W. Bush pays some lip service to the idea. But no one is quite so much on the bandwagon, with the possible exception of New York Mayor Michael Bloomberg, as California’s governor.
Schwarzenegger, in his speech before the Economic Club of Toronto, intended as a follow-on to his address at last month’s Newsweek forum address in Washington, was in exuberant mode.
“My discussion of the United States,” he told the Toronto crowd yesterday, “today relates to something that Canadians care very much about-and that is the environment. I’ve come to Canada to tell you something you may find shocking — and yet I hope also encouraging. In spite of disagreements over global warming at the G-8 summit or elsewhere, I believe the United States is about to go from environmental problem to environmental problem solver. In fact, I believe the United States is the world’s best hope for solving the global warming crisis.”
“In fact, California may be doing more to save U.S. automakers than anyone else, because we are pushing them to change if they want to sell cars in the Golden State.”
Schwarzenegger said this shortly after signing a deal with the provincial premier to adopt a low carbon fuel standard, in which all transportation fuels will cut their carbon content 10% by 2020.
“California,” declared Schwarzenegger, “has set standards more stringent than any nation. Now, do I believe the standards in California will solve global warming? No. That’s not why I did it. What we’re doing is changing the dynamic. California is so big, California is so powerful that when the seventh largest economy in the world does something, it has consequences. California is sending the world a message: we are going to dramatically reduce greenhouse gas and carbon emissions. We are going to lead. We are going to show the way forward.”
As Schwarzenegger sets the table rhetorically, Westly and other venture capital investors look to the nitty gritty. Along with the electric car company Tesla — which just did another $45 million round of venture investing, and has sold out its first “halo” round of sports cars at $92,000 per car and is raising the price to $98,000, and is developing a sports sedan for the upper middle class — Westly is very involved with solar electric power generation and “cellulosic,” i.e., non-corn ethanol projects to fuel vehicles. Cellulosic ethanol, which can be made from the “wood chips” for which former Governor-turned-Attorney General Jerry Brown was once much derided, is key to ethanol’s future, because it does not drive up the price of an important food stock.
The fact is that we’re not yet sure what new fuels will be most appropriate for personal vehicles — the clear and overwhelming choice for Californians — in the greenhouse era. It may be hydrogen, which Schwarzenegger hypes, it may be hybrid, it may be electric, it may be ethanol or other biofuels.
The future, as a certain character in a movie called Terminator 2 once said, is not set. But its general direction is.
Your posts are welcome in the Forum.
Read 
| Comments (50) |
This Westley guy is kind of a visionary.
It’s good Westly saved his money last year. Thanks Angerlides. lol
We need him to run again.
Westly, not the troll.
Westly would have lost to Schwarzenegger, too, but it would not have been as embarrassing. You’re right, he saved $40 million he can use in another race. He’s a smart guy that people can like.
How fast does Westley’s electric sports car go?
The top speed of the Tesla Roadster is 180 miles per hour.
Of course, there has yet to be the NWN speed test.
I think that Arnold, once back on course, would have won as well. Though he needn’t have won by 17 points in a big Democratic year. That was the mistake of Democratic leaders and the record low few who turned out in the Democratic primary.
Incidentally, the fastest I’ve ever driven — on a public highway, actually — is 150 miles per hour, in my own Jag.
I’m happy to go faster.
Though a private course is certainly advisable for legal purposes.
I topped out at 130 mph on the Sears Point track, now the Infineon Raceway, with my old Mustang. That turned out to be the car’s max speed.
He’s is wonderful. Just the type of person you want in public office…he wants to be there for all the right reasons….and just gets me irritated all over again about how the hypocritical the enviro community were with endorsement process during primary battle…
It is very interesting, because this morning came my WSJ google news alert this morning conveys that Bush is FINALLY addressing to deal with global warming via negotiations on targets for greenhouse reduction…just in time because Angela Merkel has made clear that this is issue will DOMINATE upcoming Big G-8 Talks …
What Terminator 2 character said what you said?
Well, Arnold is not the only person abroad talking climate change…I am on the run today but must share a excerpt from Gideon Rachman’s FT dated yesterday: Mrs. P is Nancy Pelosi!
“Mrs P is over in Europe primarily to discuss climate change. But when I suggested to her that a Democratic Party president might be a little more willing to reach an international agreement than the present incumbent of the White House, she was clearly reluctant to put the boot into George W. Bush. Yes, she agreed the Democrats are in general a bit more fired up about climate change than the Republicans. But the important thing is to identify “things we can all agree on” – Democrats and Republicans, Europeans and Americans. Unfortunately, the area of agreement she identified didn’t seem to go much beyond – “climate change is happening, it’s a big problem and something needs to be done about it.”
I asked her if it was a problem that the Europeans still seem wedded to the Kyoto approach, since Kyoto is such a dirty word in Congress. She took a pragmatic approach. If you want to bring something like Kyoto back, “you would have to call it something else.”
After a while the ambassador arrived to usher the speaker away for photos. We shook hands. Or rather, we didn’t.
Mrs P – a rather dimunitive 67-year-old woman – eschews the iron-gripped handshake favoured by most American politicians. Instead she took my hand and stroked it. It was an odd sensation – but not entirely unpleasant.”
Smart, nice guy. Can a smart nice guy be governorof your state?
Is Arnold coming back to your state? Or does he keep flying around the world?
Barbara, I haven’t had time to examine the proposal, but I’d guess this is more temporizing by the president.
Didn’t you worry about getting caught, Bill, driving so fast?
Oh, I don’t drive anywhere near that fast on a regular basis.
Although I did take it up to 100 yesterday drying the car after handwashing it.
Is it possible that Westly’s reputation will be dinged by the current Federal Court case (Taylor v. Chiang, formerly known as Taylor v. Westly) slamming way the Controller’s office seized and sold “unclaimed” property?
When did you drive your Mustang at Infineon?
Perhaps not, since I have no idea what you’re talking about.
>Sullihan :
Is it possible that Westly’s reputation will be dinged by the current Federal Court case (Taylor v. Chiang, formerly known as Taylor v. Westly) slamming way the Controller’s office seized and sold “unclaimed” property?
May 31, 2007 08:59 AM
My Mustang days at Infineon, then Sears Point, were 20 years ago for the Grand Prix of Sonoma.
Which did not, shall we say, go all that well.
No, it’s not possible. All the problems with unclaimed property are due to the restrictions placed upon the State Controller’s Office by the legislature. All of them.
The office is unable to attempt to notify property owners. Interest is not paid on property held. Stocks are sold as quickly as they come in. All of these are legislative driven. Some budget, some statute.
The state sees unclaimed property as a cash cow. The money comes in and goes into the General Fund.
The problem does not lie with the SCO.
Oh, and SCO doesn’t “seize” property. State law requires holders of unclaimed property to turn it over to the state for safe keeper. Time lines for the transmission of property to the state are based upon the type property it is.
I often took my Datsun 280z above 120 back in the day. My record was 130. It may have been faster but the needle was shaky. Looking back, it was a harrowing, though thrilling, experience. No air bags, no ABS, no power steering, no spoliers. I felt the car begin to lift quite a few times.
Oh, how I miss that Centerforce III dual-friction clutch. I could slam-shift from 1st to 2nd with no complaints from the trannie.
Those were the days. Now we have all these emission regulations. Bah! Just let me drop in a forced air intake, some headers and a dual exhaust and leave me be.
Let it ride!
Of course, here’s the car we all want to ride: http://i.usatoday.net/life/_photos/2007/05/31/speed-racerx-large.jpg
Took my MB S500 up to 140 last summer, still had another 1000 rpm to the red line.
Solon – the restrictions placed by the legislature still do not allow the takings without specific notice – it was hugely embarrassing for the controller’s office to argue that it was allowed to give a general newspaper ad in lieu of the statutorily mandated notice because it didn’t have the money to follow the law.
Besides, “the legislature made me violate due process” is just waiting for pundits to call it the Eichmann defense.
The illegal actions started before Westly’s tenure, but since Gray Davis’s and Kathleen Connell’s political careers are over, he’ll get the blame.
This sounds like the latest Republican hope against hope.
Nick,
The notice is to be given by the HOLDER, not the Controller’s Office.
The HOLDER of the property, whether it be a bank, escrow company, stock broker, etc. is required by law to attempt to reach the owner of the property prior to turning it over to the state (SCO).
Does that always happen, no. Do people receive notice and just toss it away, probably.
The SCO is required to give general notice that it is holding property.
Now, since you think you know what SCO’s responsibilites are, talk to me.
Nick,
You should also be aware that both Connell and Westly pushed for more freedom from the legislature. Westly was by far the more agressive in trying to get legislative approval for more ability to notify. Both were rebuffed.
When the office asked for more staff to process claims quicker the legislature instead increased the time for processing claims from 90 to 180 days.
There was suggestions made by either Finance or Leg. Analyst Office that SCO charge a fee to folks seeking to claim their property. Mr. Westly was totally against such a concept.
When the state was in deep financially, the legislature passed a low to prohibit the paying of interest on unclaimed property. And that language remains in effect today.
The office is restricted as to what and how it may advertise unclaimed property by language placed in the budget…commonly referred to as budget control language. Both Connell and Westly fought this to no avail.
What car is that, Gospodin Bierko?
That’s a powerful car, KK. I’m trying to think who I know who drives an S-class Mercedes …
MEGO re unclaimed property.
I’m but what is MEGO…it is akin to enough already?
My Eyes Glaze Over.
lol
I don’t think this is a problem for Westly.
Sac Solon is exactly right…
[SS"No, it's not possible. All the problems with unclaimed property are due to the restrictions placed upon the State Controller's Office by the legislature. All of them."]
However, kudos to Controller Chiang for being pro-active again on another important issue…He is going to show everyone how really important this office is to this State … you can make a difference with this office…he does not see it just as a means to boost him to higher office…although if he finishes as he is starting ….it certainly will!
Barbara,
Both Westly and Connell wanted to do he same thing. Tried and were rebuffed. The ONLY reason Chiang may be successful is because of the court cast. The only reason.
And that’s enough from me on this issue.
Oh, one more thing before Bill’s eyes glaze over, the reason the issue is important is because the Legislative Analyst’s Office has indentified it as one of several pending items that could blow a hole in the budget.
Hey, tomorrow night, the California League of Conservation Voters is (are?) honoring Steve Westly, Phil Angelides, Khosla Ventures, and Kleiner Perkins Caufield & Byers for their contributions to green tech — http://www.ecovote.org/awards — thought that deserved a mention.
Angerlides works out of Angelo Tsakopoulos’s devour and pave over development offices. lol
Isn’t Chiang a little, you know, boring?
Be nice.
Bill,
He asked a fair question…and the proper answer is:
I would prefer to having someone who is a little boring, yet effectent, than someone who makes headlines and is inapt.
The position of controller is a difficult one. It’s both ministerial and policy. Most people in the state know, or care, little aobut the office. However, it is one of the most important in all of state government.
Now, all to finish my laundry.
Fair enough.
Sorry for all the typos…tyring to multi-task and that’s very hard when you are old and feeble.
I’ve broken 130 on a track, in a college friend’s Porsche. (His dad had given him a used Porsche in poor condition for his 16th birthday; he fixed it up and sold it, then bought two more and fixed them up… A red 911 and a silver Carrera, both late ’70s, I forget the exact years.) And I was in the passenger seat all the way around the Baltimore Beltway at close to 120, at about 3am the night we finished our last joint programming project (we both were compsci majors) before graduating… Passed multiple cops, all of whom were, luckily, already on the shoulder giving tickets to somebody else.
Chiang may not be a superstar charismatic pol, but he’s a good guy — the kind who’s polite to “the little people”, tries to remember names, etc… A friend of mine worked on his campaign last year.
My 150 mph was on a public highway.
I did 130 in a rainstorm one night, racing a BMW.
Solon – Cal. Civ. Proc. Code § 1531 notice is required to be given by the Controller. See also Cal. Civ. Proc. Code § 1532.1.
http://info.sen.ca.gov/cgi-bin/displaycode?section=ccp&group=01001-02000&file=1530-1533
At the relevant times for the lawsuit, §1531 ads were required to give the names of the people whose property had been seized. Connell didn’t follow the law. Westly then fought in court to excuse the unconstitutional actions and let the state keep the money.
As for your argument that only the bank/company issuing stock/etc. is required to give notice before the property is taken, the Ninth Circuit clearly held that constitutional due process requires that the government itself give notice.
As to the government’s third argument – i.e., that the State of California does not have to give notice because the corporations and other entities that turn over property to the Controller will – the State again cites no authority for the proposition that reliance on the likelihood that a third party will give notice is “constitutionally adequate”. In fact, because the Jones decision clearly holds that the State must give notice, California’s argument is not only novel, it is apparently foreclosed by Supreme Court precedent.
Taylor v. Westly, No. 05-16763, slip op. at 8 (9th Cir. 2007) (footnote omitted), available at http://www.ca9.uscourts.gov/coa/memdispo.nsf/pdfview/043007/$File/05-16763.PDF
IOW, the State of California has to give notice itself, and cannot pawn that off on third parties, no matter
how much some government officials would like to.
Westly could have simply given the claimants the value of their property back – he had the statutory authority to order the payments be made. He chose to fight (at taxpayer expense) instead.
And to the extent that the wrongfully taken property was stock which has gone up since the people asked for their property back, by fighting the claims he increased the amount that will end up coming from the California taxpayers, because the controller’s policy has been to sell all stock within 30 days of receipt.
Westly didn’t cause the problem, but he didn’t fix it, and the court cases bear his name.
Incidentally, NWN passed 31,000 comments sometime last week.
Instead of trying to do it all in 1 working day, decide how much time you’ve every day to do a little. In the event you only have 15-20 minutes each evening, then do that. If you’d rather take a full day more than a couple of weekends or so, do that.