Many organizations, taking a more holistic view, are making the case that cap-and-trade, along with the other programs under the umbrella of AB 32, are making a positive impact on the economy. The Environmental Defense Fund, for example, cites potential savings of $21 billion for the state by 2025 due to reduced health care expenses, a reduction in work days lost and a boost in energy security — and the cap-and-trade program, by creating a market for investment in energy efficiency programs and less carbon-intensive fuels, could account for 20 percent of the pollution cuts should all of AB 32’s programs continue as planned. And with transportation creating more pollution in California than utilities (in most states the reverse is true), the oil companies and their refineries have to be a part of this process.
Consumers are already seeing a difference. Walter Wang, an adviser with ZSA and Adjunct Professor at the University of San Diego School of Law, pointed out that many utility ratepayers have seen a “climate credit” on their bills this year. “There is real value in these programs going forward,” Wang said, “and while ‘energy efficiency’ isn’t sexy, there is immediate value and a short payback period.”
And speaking of automobiles, during an interview I had with Adrienne Alvord, California and Western States Director at UCS, she explained that looking at only prices at the pump does not give the full story. “Our gasoline prices are higher per pump, but people are spending less on gasoline,” Alvord said. Despite California’s reputation as the land of the car, California ranks 15th from the bottom in gasoline consumption per capita; and despite prices higher than most of the country, per capita spending on gasoline is 13th lowest in the Golden State. As a result of cap-and-trade and other energy efficiency programs in California, a driver who buys a new vehicle now can expect to save $3,000 if he or she drives the vehicle over 15 years.
Consumers across all income levels are seeing the results, insisted Alvord. “We’re taking the revenue that we are raising from these auctions, and we’re using it to lower emissions,” she continued, “and 10 percent of those revenues from the cap-and-trade auctions are being directly invested in low income communities. We’re not just cleaning up the air, but are investing in those who can benefit the most, as in home weatherization programs that directly benefit those who live in some of the most polluted areas of the state.”
