Federal energy policy could cost California $100 billion, study claims

Image
Dials on a electric meter with stacks of coins in front.
© iStock - MarkPiovesan
(California News Service)
Audio file

California households could pay an additional $100 billion for energy between now and 2040 as a result of the Trump administration’s energy policies, according to new analysis from the nonpartisan think tank Energy Innovation.

Researchers found people in the Golden State could pay an average of $680 more per household in 2035 and $870 more in 2040, blaming policies stifling renewable energy and clean cars, on top of higher oil prices due to the war in Iran.

Robbie Orvis, senior director for modeling and analysis for Energy Innovation, predicted policies slowing down electrification and domestic energy manufacturing could cost California’s GDP $7 billion in 2030.

Image
Closeup of a map showing portions of California and Nevada
© iStock - dk_photos

"Across the board, this is worsening the current affordability crisis. It's worsening the economy with less GDP and jobs, and it's making Americans sicker and forcing them to pay more for their health," Orvis outlined.

The Trump administration defended its policies, which aim to strengthen domestic oil and gas production. The study specifically called out the decision to do away with subsidies for electric vehicles, to attack California’s tailpipe emissions standards and to kill the Solar for All program. The study found worsening local air pollution could raise California’s health care costs by $1.7 billion.

Dr. Lisa Patel, a hospital-based pediatrician in the Bay Area and executive director of the Medical Society Consortium on Climate and Health, said going forward, air pollution is expected to cause about 140,000 more childhood asthma attacks in California per year.

"I am often caring for these children who come in with their lungs so inflamed they can't even get a breath in. When we have the ability to transition to cleaner forms of energy, the administration's policies have been pretty reckless," Patel contended.

The report recommended states promote clean energy by providing certainty in permitting, better using the existing grid and working to lower construction and regulatory costs.