Economic and Climate Experts Debunk Misleading Report on Costs of AB 32

SAN FRANCISCO, July 13 /PRNewswire/ -- A report was issued today by Varshney &
Associates purporting to show the economic impact of AB 32 on California small
businesses. In response are statements from leading economists and climate
experts at four non-profit organizations:

"The study by Varshney and Associates is fundamentally flawed. It takes into
account the costs associated with implementing solutions to global warming,
while completely ignoring the immense savings that also accrue from reducing
global warming pollution," said Jasmin Ansar, a climate economist with the
Union of Concerned Scientists. "This report does a disservice to California
small business owners, who could actually benefit greatly from AB 32 and
increase their competitiveness."

"The report's authors assess estimated costs of implementing AB 32 - $25
billion - but willfully ignore AB 32's associated savings of more than $40
billion. California knows the value of energy efficiency," said Chris Busch,
an economist and Policy Director for Center for Resource Solutions. "This
report should be seen by policymakers and the public for what it is--one more
effort to confuse the issue and induce delay."

"The authors use a static economic model incapable of representing the massive
benefits from technological innovation, energy security and improved
efficiency that will be sparked by AB 32. In addition, the authors fail to
consider the enormous economic value of avoiding the most extreme and costly
effects of global warming," said James Fine, an economist with Environmental
Defense Fund.

"Energy efficiency is one of the most important tools we have to reduce global
warming and recharge our state's economy. California's climate plan will help
individuals, small businesses, and the economy by creating jobs, reducing
energy consumption and saving money in utility bills," said Kristin Grenfell,
Legal Director for Western Energy & Climate Projects at the Natural Resources
Defense Council.

SOURCE UCS; Center for Resource Solutions; EDF; NRDC

Jasmin Ansar, PhD: Economist, Union of Concerned Scientists, +1-510-809-1570;
or Chris Busch, PhD: Economist, Center for Resource Solutions,
+1-415-568-4284; or James Fine, PhD: Economist, Environmental Defense Fund,
+1-916-492-4698; or Kristin Grenfell, Legal Director, Western Energy & Climate
Projects, Natural Resources Defense Council, +1-415-875-6165