California Will Create Green Economic Stimulus Package by Implementing AB 32

SACRAMENTO, Calif. - California
will create a green economic stimulus plan that will serve as a
national model by implementing the historic Global Warming Solutions
Act (AB 32), according to a new study released today. The report, Getting the Job Done Right: Employment Growth through California's Global Warming Solutions Act (see full report and executive summary for policymakers),
is timely because the California Air Resources Board (CARB) will vote
on its Proposed Scoping Plan to implement AB 32 at its meeting on Dec.
11-12.
 

Conducted
by M.Cubed, a research firm specializing in resource economics and
public policy analysis, and commissioned by Environmental Defense Fund
(EDF), the study examines recent analyses conducted by CARB and others
to assess potential economic impacts of AB 32. AB 32 mandates that
California cut its greenhouse gas emissions that cause global warming
approximately 30 percent by 2020. The study finds that well-crafted AB
32 policies can bring significant economic benefits and new jobs to
California.
 

"This
analysis shows that by acting immediately and decisively to reduce
global warming pollution, California can create a green economic
stimulus plan that delivers benefits to businesses and consumers
alike," said James Fine, Ph.D., an economist and policy scientist for
EDF, which cosponsored AB 32. "This stimulus is a critical tool to help
California and the nation combat rising unemployment rates and budget
shortfalls."
 

Key findings of the study include: 

• Implementing
  AB 32 is likely to increase employment in several sectors of the
  state's economy, as well as associated supply chains, including
  biomass-based fuels, building and transportation infrastructure
  construction, clean technologies, environmental engineering, consumer
  products, information technologies, transportation and logistics, waste
  management, and water purification and conservation.
• California's
  friendly regulatory setting will attract additional investments in
  energy-related research and development. California has five of the
  nation's top 10 cities for clean tech investment (San Jose, Berkeley,
  Pasadena, San Francisco and San Diego).
• Several
  Western states (Arizona, California, Montana, New Mexico, Oregon,
  Washington and Utah) and Canadian provinces (British Columbia,
  Manitoba, Quebec and Ontario) have pledged to reduce greenhouse gas
  emissions as part of a Western Regional Climate Action Initiative.
  Regional cooperation over climate change policies significantly reduces
  the impetus for businesses to flee California to avoid climate
  pollution policy.
• AB
  32 will help California improve energy independence by establishing a
  more diverse energy supply system that can mitigate economic risks of
  single fuel-supply disruptions and improve long-term economic growth
  and higher employment levels.
• Market-based
  policies that expand access to financing for consumers, small
  businesses and particularly vulnerable populations-and are designed to
  smooth the transition to a low-carbon economy-will spur the development
  of a new industry to provide that financing.

"By
implementing AB 32 with well-designed policies, California can grow its
economy, gain a competitive advantage and serve as a model for the
nation to follow in the transition to a clean energy, low-carbon
future," concluded Fine.