AB 32 Could Save Billions in Energy Costs Study finds household savings up to $670 in 2020

California’s clean energy and clean air standards could save the average household up to $670 in 2020 if oil and natural gas prices spike, according to a new study by three economists. The U.S. economy has experienced five price shocks in the last 30 years when crude oil prices rose an average of 179% in just one year. This study analyzed how much more Californians would pay if wholesale crude oil and natural gas prices doubled at the start of 2020 and stayed there for a year. “No study has calculated the benefits of AB 32 in the event of an energy price shock,” said James Fine, economist for Environmental Defense Fund and one of the report’s authors. “This study uncovers massive potential savings, and shows how the state’s landmark policy will protect California’s economy from unpredictable events, such as hurricanes and wars, that cause energy prices to jump.”