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California Small Businesses to Earn Extra $4.6 Billion in Revenue from AB 32

Clean energy standards help consumers spend less on
electricity and gasoline, freeing up more to spend on local services

Sausalito, CA, Oct. 18, 2010 — California’s clean energy law (AB 32) will spur energy efficiencyinvestments and new innovations, providing opportunities to a wide range of small businesses to boost their bottom lines and grow their businesses, according to a report released today by Small Business Majority.

“Under AB 32, California’s small businesses will be able to take advantage of the increased investments, innovation and energy efficiency savings that the law will generate,” said John Arensmeyer, founder and CEO of Small Business Majority. “They’ll also see more demand for the products and services they provide, which will help them grow their businesses and create jobs. Not only is this good for small businesses, but for the state’s economy overall.”

The report, “Economic Opportunities for Small Business Under AB 32” finds that the state’s clean energy standards provide many opportunities for small businesses to gain a financial edge in the burgeoning cleantech and energy efficiency sectors. In addition, the law will help increase revenues to small service businesses (50% of all small businesses in the state) by $4.6 billion by 2020, and more than 15,000 jobs will be added. Because of requirements in the law that spur greater fuel and energy efficiency, consumers will spend less on electricity and gasoline, freeing up cash to spend locally on services. The financial benefit translates to an extra $1,115 per employee for California small service businesses.

“I know firsthand, from my work with tribes and small business owners in rural communities, that policies like AB 32 are fueling demand for energy efficient goods and services,” said Selim Sandoval, owner of Growing Green Energy in Mammoth Lakes. “That demand for energy efficiency will translate into new jobs and that means increased economic activity for all of us.”

The clean energy standards also help to lay the foundation for significant growth in many industries connected to these sectors. Small businesses will benefit from California’s transition to clean energy in the following ways:

  • Increased investment in energy efficiency: Standards to reduce carbon pollution will fuel demand for, and increase investment in, energy efficient goods and services – generating new prospects for small businesses that provide them
  • Incentives for companies to “go green”: AB 32 creates opportunities for mainstream small businesses to green their operations – providing brand differentiation from competitors and garnering strong customer loyalty.
  • Increased spending on non-energy purchases: Expanded energy efficiency options will help increase Californians’ income by $2 billion annually, allowing people to spend more money on other local goods and services.
  • New innovation: AB 32 already is driving significant investment to California’s cleantech sector, supporting the growth of new small businesses in this area. The opportunities for creating and profiting from new technology solutions are vast.

The report is available online at In order to benefit small business, this report is created to inform the adoption of effective standards by the California Air Resources Board and other agencies to implement AB 32 and other clean energy policies.


About Small Business Majority
Small Business Majority is a California-based, national nonprofit, nonpartisan small business
advocacy organization founded and run by small business owners and focused on solving the
biggest problems facing small businesses today. We speak for the nearly 28 million Americans
who are self-employed or own businesses of up to 100 employees. Our organization sponsors
scientific research that guides us to understand and advocate on behalf of the interests of small
businesses across the country.

© California Business Alliance for a Clean Economy

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