Clean Energy Grows Economy Faster Than Traditional Sources

New Report Unveiled at State Public Utilities Commission Forum

SAN FRANCISCO, June 10 /PRNewswire/ -- As the state grapples with a
multibillion dollar deficit, a new study by researchers at the University of
California, Berkeley, to be released today examines the economic impacts of
different energy pathways for California and finds that continuing on a
business-as-usual energy path risks greater economic insecurity, while
aggressive acceleration of clean energy assures faster and more sustained
economic growth. Relying on renewable sources for 50 percent of California's
electric power, combined with increasing energy efficiency by 1.5 percent a
year will generate half a million new jobs with over $100 billion in
cumulative payrolls over the next 40 years, according to the study.

"Energy Pathways for the California Economy" is authored by UC Berkeley
professor David Roland-Holst and his team of researchers from the Department
of Agricultural & Resource Economics, and funded by Next 10, a nonpartisan
nonprofit organization. This study evaluates the state's energy demand and
supply horizons, and models the economic impact of accelerating renewable
energy deployment and energy efficiency trends.

"We don't have to choose between protecting the economy or the environment,"
commented Roland-Holst. "Clean energy is more job intensive than our current
energy mix, creates and retains more wealth inside our state, and reduces our
vulnerability to volatile fossil fuel markets. Our analysis shows that the
faster and farther we pursue energy efficiency and renewables, the more
prosperous and secure our economy will be."

The report examines California's projected energy demand and supply horizons
and concludes that, if the state continues with business-as-usual, from
electricity to transportation projected energy demand growth will create
greater reliance on fuel imports and therefore greater vulnerability to price
shocks.

Using the Berkeley Energy and Resources (BEAR) model, a state-of-the-art,
economy-wide forecasting tool, the study analyzes five new energy scenarios
and tracks complex market interactions across key elements of the California
economy. The five scenarios include: three degrees of Renewable Portfolio
Standards (20 percent, 33 percent, and 50 percent) and new energy (NE)
efficiency (with RPS 50) improvements (1.0 and 1.5 percent annually).

Report findings include the following:

-- A dollar saved on traditional energy is a dollar earned by 10-100
times
as many new workers.
-- Renewable fuel generation is more job intensive and less price
volatile
than traditional carbon fuel supplies.
-- Employment creation outweighs employment reduction in every scenario.
-- Over the time period considered (2008-2050), the clean energy industry
increases in-state employment to about half the size of
California's biotech sector, but up to twice as many additional
jobs are created in upstream and downstream sectors.
-- The most ambitious scenario (50 percent renewable fuels; 1.5 percent
efficiency increase) produces the greatest number of net new jobs and
largest payroll dividend -- generating half a million additional jobs
with over $100 billion in cumulative payrolls over 40 years.
-- Compared to renewable deployment alone (RPS 50), integrating energy
efficiency measures increases statewide job benefits almost tenfold.
Employment gains are more widespread, particularly in construction and
services, with the former responding to new building standards and the
latter benefiting from household expenditure diversion.
-- Renewable energy generates jobs with relatively high wages and obvious
new technology appeal. Even when a significant portion of green tech
manufacturing is outsourced (25 percent of value is assumed),
California
still captures significant employment and payroll benefits from
greater
renewable deployment.

-- Finally, household energy efficiency savings translate, via
expenditure
shifting, into even greater income growth for consumer sectors,
including more diverse, bedrock, in-state employment in food,
services,
etc. These are jobs that cannot be outsourced.

"We are facing an unprecedented multibillion dollar budget deficit and many
question whether now is the time to embark on an ambitious clean energy
program," said Next 10 founder F. Noel Perry. "This study shows that there is
no better time. Energy efficiency and renewable energy can provide the
lifeline our economy needs."

A previous report by Roland-Holst and funded by Next 10 found that without
taking the aggressive steps to increase energy efficiency over three decades
ago, California would be more vulnerable to the current economic crisis --
with greater dependence on volatile fuel prices, lower past consumer savings
and, as a result, reduced spending and income today. Over the past
thirty-five years, forward looking energy efficiency policies created 1.5
million full-time jobs with a total payroll of over $45 billion, and saved
California consumers over $56 billion on energy costs.

The full report is available at: www. Next10.org or
http://are.berkeley.edu/~dwrh/CERES_Web/index.html

Media interviews with the author of the report may be arranged by contacting
Cater Communications at (415) 453-0430 or roxanna@catercommunications.com.

Next 10 (www.next10.org) is an independent, nonpartisan organization that
educates, engages and empowers Californians to improve the state's future.
Next 10 is focused on innovation and the intersection between the economy, the
environment, and quality of life issues for all Californians. Next 10 funds
research by leading experts on complex state issues and creates a portfolio of
nonpartisan educational materials to foster a deeper understanding of the
critical issues affecting our state.

SOURCE University of California, Berkeley; Next 10

Cater Communications, +1-415-453-0430, for University of California, Berkeley;
Next 10