CARB releases updated AB 32 Impact Report

By CMTA Staff

Capitol Update, March 26, 2010 Share this on FacebookTweet thisEmail this to a friend

After a 15 month delay, the California Air Resources Board (CARB) staff released their revised economic analysis of AB 32.  The report claims that as result of AB 32 an estimated two million jobs will be created in California by 2020; the State economy will grow by an estimated 2.4% each year; and fuel costs will drop by an estimated 4.9% in 2020, allowing billions to be invested in green technology.

We view these conclusions very skeptically given the fact that CARB’s own economic advisers have found that AB 32 would increase the cost of electricity, natural gas and gasoline. The agency appears to be out of step with more mainstream economic impact studies on climate change regulations including those from the UC Berkeley Center for Labor Research and Education which stated that AB 32 would put 3 million blue-collar jobs at risk.

Other government and private studies also reveal the significant impact of higher energy costs on California’s economy with $1,000 to $3,000 more for a new car and increases in household costs by $818 to $9,300 per family per year. The U.S. Environmental Protection Agency concluded that AB 32 would result in an annual reduction of U.S. gross domestic product from $1 trillion to more than $2.8 trillion ($130 to $364 billion for California) in 2050.

Your CMTA lobbyists and industry economists are reviewing and analyzing the report in more depth.

You can view CARB’s full report here:

On March 24th, the Governor asked CARB to take into account economic impacts in the implementation of a cap and trade program. You can see the full letter here:

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