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California Current: 100 Billion Greenbacks for a Green California Recovery

Posted by Herman Trabish on Oct 5, 2020

The California Current reported on the impact of a $100 billion stimulus investment in California's advanced energy sector, referencing AEE's economic impact report and quoting AEE's Amisha Rai and Matt Stanberry. Read excerpts below and the entire piece here (sub. req.).

California policymakers are talking about legislation to fund a green recovery from the Covid-19 pandemic-clobbered economy... A $100 billion stimulus investment in advanced energy technologies can pay big dividends for California, according to a September study from the Analysis Group for Advanced Energy Economy (AEE).

Investments in energy efficiency, renewable energy, and building and transportation electrification would add $727 billion to California’s economy, the study found. It would also create 4.1 million new jobs, increase tax revenues to local and state governments by $45.8 billion, and save consumers $28 billion in annual energy costs.

The AEE report confirms that proposals for stimulus funding of advanced energy technologies are “the right track,” Assemblymember Ting said...

By September 2020, cities and states across the U.S. and over 190 countries around the world had developed a recovery plan for the pandemic-induced economic downturn, AEE reported. California legislators see joining that list as “priority number one for next year,” said AEE Managing Director Amisha Rai...

AEE has “no illusion” $100 billion is enough to solve the climate crisis, AEE Managing Director Matt Stanberry. “It would be a down payment on the investments needed to address climate change, but the $727 billion in Gross State Product offers a seven to one payback.”

Energy efficiency investments would boost GSP by $373 billion and 1.9 million jobs. Investments in renewable energy generation would add $163 billion to GSP and over 850,000 jobs, AEE found.

Transportation electrification investments would add $80 billion and 475,000 jobs and energy storage spending would add $46 billion in GSP and nearly 380,000 jobs, it added. Building electrification could grow GSP by $41 billion and add over 320,000 jobs and transmission and grid modernization spending would add $23 billion to GSP and 180,000 jobs. Energy efficiency and rooftop solar would save residential customers $18.4 billion per year and save commercial and industrial customers $8.7 billion per year, the report said. Transportation electrification would save drivers $1.6 billion in fuel costs...

The paper shows growth in direct advanced energy technology jobs and indirect supply chain jobs, but it also shows induced jobs that can reinvigorate communities, AEE’s Stanberry responded.

Advanced energy technology stimulus investment will also have tangible benefits because it will impact local communities, including those already hit hard by the recession,” AEE’s Rai added. “Stimulus spending can bring back the local solar and energy efficiency jobs lost during the pandemic and protect California’s “burgeoning” transportation electrification sector, Stanberry said. “That increases the ripple-through because it keeps the dollars in the state.”
Read the entire California Current piece here (sub. req.).

Topics: AEE In The News