Delta Construction letter to Chancellor Gene Block

The Case for Diesel Cars in California,

POLICY AND PLANNING DIVISION
STAFF WHITE PAPER

LAO Conducts Analysis of the Cost Impact of AB32

The non-partisan Legislative Analyst’s Office (LAO) conducted a qualitative analysis of the costs of AB 32 at the request of Assembly Member Logue.  Attached is their analysis.  Specifically, the LAO found:

• California’s economy at large will likely be adversely affected in the near term by implementing climate-related policies that are not adopted elsewhere.
• These adverse effects will occur in large part through economic leakage, as certain economic activity locates or relocates outside of California where regulated-related costs are lower.
• While it is true that there will be both winners and losers under the SP, including gains in so-called “green” jobs, the net economy-wide impact in the near term of implementing the SP in the absence of like policies in place elsewhere will in all likelihood be negative.
• Quantifying the net impact of the above factors on leakage is not possible, for a variety of reasons.