Air Board Responds to LAO Critique

The California Air Resources Board has formulated a written response to the very unflattering report by the state Legislative Analyst (LAO) described here last week. The Air Resources Board is the lead agency in implementation of the state’s attack on climate change, known by its legislative shorthand, AB-32.

The Board admits that most (70%) of the savings in AB-32 flow from one measure, the so-called Pavley regulations on vehicle emissions. But it insists that even without those, the overall plan still pencils, economically.

The Air Board also concedes that its economic analysis was not complete when it issued its “scoping plan” for implementation, but counters that it has since done some more number-crunching and that the bottom line is still a net benefit of about $300 million per year, as the first phase of the plan is unfolding. After 2012, the Board says, annual savings to Californians ramp up to nearly $3 billion.