myth vs. FACT

Myth vs. Fact

The Truth About California’s Clean Energy & Climate Security Plan

Myth: AB 32 will drive up the costs of owning a small business.
FACT: Once the state’s climate plan is fully implemented, companies that follow a business-as-usual approach are likely to see higher energy bills, but savvy businesses that utilize readily-available incentives will save money. By taking advantage of these incentives to help pay for upfront costs of more efficient buildings, plumbing, lights and appliances, businesses can boost their bottom lines and improve operations. It is the cost of inaction that will negatively impact small businesses – the increased levels of uncertainty and risk brought about by climate change will impose new costs on numerous industries.


Myth: AB 32 will halt economic growth.
FACT: Over the last 35 years, energy efficiency measures have enabled Californians to redirect dollars saved toward other goods and services. Energy efficiency policies led to $56 billion in household energy savings between 1972 and 2006, which spurred about 1.5 million full-time jobs with a total payroll of $45 billion. If California continues to improve energy efficiency by just 1 percent per year, state climate policies will increase
real household incomes by up to $48 billion and create as many as 403,000 new jobs.2


Myth: Cars, trucks and fuels will cost more under AB 32.
FACT: The next generation of alternative-fuel and fuel-efficient cars and trucks will cost less to run and will save California drivers more than $12 billion in 2020 through lower operating costs. For the average buyer of a new, fuel-efficient vehicle, that translates into hundreds of dollars saved each year.3 Plus, by diversifying our energy supplies, we can protect the state’s economy from the increasing volatility of fossil fuel markets.


Myth: AB 32 will increase industrial and commercial buildings costs.
FACT: “Green” buildings are so water and energy efficient, they quickly pay for themselves. And building design features that increase energy efficiency (e.g., natural lighting, improved airflow) contribute to better air quality and health, reducing sick days, and increasing worker productivity.


Myth: AB 32 will increase costs for homeowners.
FACT: Improvements in energy efficiency in California during the past 35 years have already saved Californians about $1,000 per person. Meanwhile energy costs increased across the country. Combine additional investments in energy efficiency, rebates from local utilities, and personal conservation efforts, and homeowners will save money while reducing global warming pollution. Oil companies and other top polluters that cash in on dirty fossil fuels (while the rest
of us pay the price) are spreading misinformation about the state’s climate plan. Don’t be fooled.

Here are the facts about the economic advantage of energy efficiency and clean energy.






1 Center for Integrative Environmental Research, University of Maryland, The U.S. Economic Impacts of Climate Change and the Costs of
Inaction, Oct. 2007.
2 D. Roland-Holst, Energy Efficiency, Innovation, and Job Creation, Oct. 2008.
3 J. Fine and C. Mihm, Saving Fuel, Saving Money, Saving Our Planet, June 2009.
4 G. Kats, The Costs & Financial Benefits of Green Buildings: A Report to California’s Sustainable Building Task Force, Oct. 2003.
5 RAND, 2000, The Public Benefit of California’s Investment in Energy Efficiency, 2000.


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