(March 8, 2006) A California Chamber-led coalition is asking the Climate Action Team (CAT) to release data used in an economic analysis of a draft report proposing ways to reduce greenhouse gas emissions.

A critical review of the CAT draft "Economic Analysis" concluded that the study’s findings are “not convincing” due to its general lack of documentation and supporting data, as well as inadequacies in the explanation of its methodology.

The Sustainable Economy and Environment for California (SEE California) coalition, of which the Chamber is a founding member, commissioned the critical review, which was conducted by the Sacramento Regional Research Institute (SRRI).

The SRRI review also found that the CAT economic assessment "does not provide an adequate analysis of whether Executive Order S-3-05 (the Governor’s order establishing greenhouse gas emissions targets) will generate a net cost or benefit to the state.”

“It is critical that any public policy debate on greenhouse gas emissions reduction legislation or policy be based on comprehensive and widely accepted economic modeling,” said Chamber President Allan Zaremberg.

To allow for a true assessment of the accuracy of the CAT analysis, SEE California is requesting the CAT to immediately release all documents and data regarding the analysis’ methodology, economic inputs, models and findings.

“Additional background documentation on the CAT Economic Analysis will allow for peer review and additional studies to determine if the report’s optimistic findings are accurate,” Zaremberg said.

Specific findings of the SRRI report (available at www.srri.net) include:

• The CAT should avoid making conclusions on the economic impacts of potential emission reduction strategies when the basis for its Economic Analysis is admittedly changing and incomplete.
  
  
• The CAT Economic Assessment is deficient in a number of critical study areas and does not provide adequate analysis of whether Executive Order S-3-05 will generate a net cost or benefit to the state.
  
  
• The findings in the Economic Assessment are not convincing due to a general lack of documentation and transparency in the analysis.
  
  
• Findings unique to the CAT report and other uncommon findings should be better addressed.
  
  
• There are unique aspects of the report that would act as good building blocks for generating a more complete and accurate analysis.
  
  
• The CAT should release the information required to complete a more comprehensive critical review.
  

The CAT, led by the secretary of the California Environmental Protection Agency and made up of representatives from a number of state agencies, has been assigned to report on the state's progress toward meeting greenhouse gas targets established in the executive order. Its first report is due to the Governor and Legislature this spring.

SEE California is a coalition of trade associations and businesses that supports addressing climate change impacts on California in a reasonable and responsible way, and will work to ensure that efforts to reduce greenhouse gas emissions take into account direct impacts on California jobs, economy and the environment.

Staff Contact: Jeanne Cain