While Congressional gridlock in Washington DC prevents a timely extension of the federal wind production tax credit and causes substantial wind industry layoffs, federalism by empowering states powers forward renewable energy. California passed proposition 39 on November 6th, providing another $2.9 billion of funding for clean energy projects and businesses. http://planetark.org/wen/67137.
Proposition 39 comes on top of initiatives like the $2.2 billion, 10-year California Solar Initiative that has helped to install already more than 1,000 megawatts of solar power across the Golden state. Indeed, incentives offered by states like California, Massachusetts, and Illinois are a major reason why non-hydro renewable energy and energy conservation have boomed over the last 5 years. And the resulting scaling up in the US and around the world of wind, solar and other clean tech industries drives down costs, makes renewable energy more competitive, and attracts more capital.
In the renewable energy boom, states and their policies are crucial to clean energy growth, so much so that federalism is proving to be renewable energy and energy conservation's greatest strength in the USA. The framers of our Constitution are smiling.