Prop. 23: Effort To Suspend Climate Law Rejected

SACRAMENTO (CBS / AP) -- A ballot initiative primarily funded by Texas oil companies seeking to suspend California's landmark climate law has failed.

Proposition 23 would have delayed greenhouse gas regulations until California's unemployment rate fell to 5.5 percent and stayed there for a year. Unemployment in California is now at 12.4 percent.

Gov. Arnold Schwarzenegger, environmentalists and Silicon Valley entrepreneurs had warned that passing the initiative Tuesday would derail a growing investment in alternative-energy technology in California.

The state's 2006 climate law, known as AB32, is one of the Republican governor's key environmental accomplishments.

Proponents said the vote showed Californians are committed to clean energy, despite the jobless rate.

"Local governments across the state will move forward with their plans to create green jobs and foster important business developments through clean energy technology industries that are vital for future economic growth," said Martin Chavez, executive director of ICLEI-Local Governments for Sustainability USA, which supports local government efforts toward climate change.

(© 2010 CBS Broadcasting Inc. and The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)