Web Version [link removed] | Update Preferences [link removed] [link removed] New Report Warns SB 222 Could Devastate California Economy,
Drive Up Energy and Housing Costs
The Center for Jobs and the Economy today released a preliminary economic and consumer impact report on Senate Bill 222 (Wiener) [[link removed]], which would allow any individual to file lawsuits seeking damages for climate-related events—including extreme weather, wildfires, and rising sea levels—with broad effects on businesses and other entities that have used, sold, or been associated with fossil fuel products. Using data from the California Air Resources Board, energy consumption trends, and expected cost pass-throughs from litigation-driven price increases, the report finds that the proposed legislation could impose up to trillions of dollars in climate-related liability costs, resulting in skyrocketing prices for gasoline, electricity, and housing, while jeopardizing hundreds of thousands of jobs across the state.
The report estimates that SB 222 could lead to damage claims totaling up to $1.1 trillion by 2030 and an additional $10.8 trillion in retroactive liability for past emissions. These claims, if pursued, could function as an unchecked carbon fee, drastically increasing costs for households, businesses, and state agencies.
Key cost increases by 2026 could include:
• An additional financial burden for households of up to $6,100 per year
• Gasoline prices surging to $7.38 per gallon, a 63% increase
• Residential natural gas prices nearly doubling
• Residential electricity prices increasing by 31%
• Housing costs for renters increasing by $1,692 per year
• Housing costs for homeowners increasing by $1,161 per year
• Nearly 300,000 jobs lost annually, with wages declining by $22.3 billion per year
• Severe risks to investment and business retention, leading to further economic decline
“This report underscores the direct impact SB 222 will have on the state’s ongoing cost of living crisis,” said Brooke Armour, President, the California Center for Jobs and the Economy. “Residents already face policy-driven cost increases that have led Californians to pay the highest gasoline prices in the nation. SB 222 will only exacerbate and accelerate these cost impacts, driving up the cost of daily necessities while having a major impact on jobs and the overall economy of our state.”
The bill’s unclear liability standards could lead to endless litigation, deterring investment and increasing financial risks for businesses, including manufacturers, farmers, and energy providers. With energy prices already among the highest in the nation, SB 222 could widen California’s affordability crisis and reduce economic opportunities across the state.
Read the Full Report [[link removed]] The California Center for Jobs and the Economy provides an objective and definitive source of information pertaining to job creation and economic trends in California. [[link removed]] Contact 1301 I Street Sacramento, CA 95814 916.553.4093 If you no longer wish to receive these emails, select here to unsubscribe. [link removed]
