In this rare instance... As Europe Goes, so should California.

A few years ago Gov. Schwarzenegger signed AB 32 which established a comprehensive program of regulatory and market mechanisms to achieve reductions of greenhouse gases. What you don't hear much about is the cost of AB 32. In October CARB released the final draft of the AB 32 Scoping Plan, where CARB defines the strategies for reaching their greenhouse emission goals by 2020.

The AB 32 Scoping Plan recommends the imposition of a $500 million a year water tax.

The Scoping Plan’s 33% Renewable Portfolio Standard will increase electricity costs by 11% and natural gas by 8%. Theese are costs that will be borne by the ratepayers.

It will cost approximately $11 billion a year to make the fuels necessary to meet the low carbon fuel standard.

It is also worth noting that the British have been two to three years ahead of California in establishing their greenhouse reduction programs. As such we can get an idea of how much AB 32 will cost Californian's by looking at the British model. Government advisers in Britian admit that the shift to a 'low carbon' economy will cost around 24 billion a year at today's prices. At home that means each California family would need to commit $1,750 to $2,000 a year as we shift to a low carbon economy. And don't worry... with another legislative session approaching you can be assured more "AB 32 implementation" bills will be enacted grabbing even more dollars from your pocketbook.

California politicians should take note of what is happening on the other side of the pond where economic pressures seem to be forcing a number of European countries to rethink how far they want to pursue their CO2 agenda.