California policies to stoke alternative energy demand--from the 33 percent renewable energy mandate to subsidy programs--are credited with drawing billions of dollars of venture capital into California, well more than in other states. The state should be creating more opportunity, particularly with the drying up of federal funds, say some. \u201cWe are actually under-subsidizing renewable energy compared to fossil fuel and nuclear power,\u201d Nancy Pfund, a founding partner of DBL Investors, told the Senate Select Committee on Green Jobs, Solar, Wind, and Clean Technologies Oct. 26 in Fremont. \u201cEnergy subsidies are as American as apple pie,\u201d she said, adding that \u201ccontinuing to subsidize the old players works to the detriment of new players.\u201d The creation of a \u201cgreen bank\u201d that holds funds from various sources--including possible revenue from the carbon cap-and-trade allocation auction, the offset market, public goods money and solar subsidies--could provide a financial anchor for more clean energy development. Dan Adler, California Clean Energy Fund president, said it would \u201ccatalyze the private sector.\u201d Governor Jerry Brown recently vetoed a bill that would have studied creating a state bank (Current, Sept. 30, 2011). Weakness of in-state clean tech manufacturing also was explored at the hearing. Various reasons were cited, including regulatory complexity, lucrative incentives from other states and nations, and skewed subsidies. Mike Mielke, Silicon Valley Leadership Group senior director of environmental programs, noted renewable equipment manufacturers were locating outside of California because of stiff competition for green jobs, including heftier subsidies, tax credits, and exemptions. Early this week, the State Treasurers\u2019 alternative financing committee voted to continue the state sales tax exemption for renewable equipment. In early October, State Treasurer Bill Lockyer proposed \u201cpausing\u201d the exemption in light of the bankruptcy of Fremont-based solar panel manufacturer Solyndra. In a joint Senate hearing last week, the year-old equipment sales tax exemption granted by the California Alternative Energy and Advanced Transportation Financing Authority was credited with drawing renewable manufacturers into the state (Current, Oct. 21, 2011). Speakers also urged legislators to reauthorize the public goods surcharge on ratepayers to help California keep its leadership role in energy efficiency and alternative energy. Last month, lawmakers refused to reauthorize the program. The public goods charge was instituted during electricity deregulation to ensure funding continued to flow to non-traditional energy work. \u201cWhen you pull the plug on the program, you\u2019re pulling the plug on a lot of what is working in the state,\u201d said Pfund.