BILL ANALYSIS                                                                                                                                                                                                    




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          Date of Hearing:   June 16, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                   SB 675 (Steinberg) - As Amended:  April 2, 2009

          [Note: This bill has been double referred to the Assembly  
          Natural Resources Committee and will be heard as it relates to  
          issues under its jurisdiction.]
          
           SENATE VOTE  :   26-9
           
          SUBJECT :   Energy job training:  Clean Technology and Renewable  
          Energy Job Training, Career Technical Education, and Dropout  
          Prevention Act of 2010

           SUMMARY  :   Establishes the Clean Technology and Renewable Energy  
          Job Training, Career Technical Education, and Dropout Prevention  
          Act of 2010.  Specifically,  this bill  :   

          1)Makes declarations and findings regarding renewable energy,  
            energy conservation, clean technology and climate change  
            policies, with a focus on California's leadership in those  
            areas, the need to use renewable energy and the technologies  
            it requires to reduce high school dropout and joblessness  
            rates for the state's young people and to develop the state's  
            renewable energy resources.

          2)States legislative intent to stimulate the state's economy,  
            create tens of thousands of good paying jobs in industries and  
            businesses that are in compliance with the state's  
            environmental protection laws and regulations, to provide  
            entrepreneurs and employers the best-trained workforce in the  
            United States and to prepare young people and adults to work  
            in clean, green industries and professions.  

          3)Defines the following terms in the bill:

             a)   "Board" means the State Allocation Board (SAB).

             b)   "Clean technology projects" mean the following:

               i)     Energy audits that include a determination of the  
                 energy savings that can be achieved from projects funded  
                 under this program and that can be recovered through  









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                 utility bill financing;

               ii)    Retrofitting and weatherization activities that  
                 increase energy efficiency and conservation;

               iii)   Energy- and water- efficient public buildings;

               iv)     Retrofitting and installing energy efficient  
                 household appliances, windows, doors, insulation and  
                 lighting;

               v)     Retrofitting and installing water and energy  
                 conservation technologies in existing residential,  
                 industrial, commercial and public structures to improve  
                 efficiency, including the use of energy and water  
                 management technologies and control systems;

               vi)    The manufacture, sale, assembly, installation,  
                 construction and maintenance of energy efficient  
                 technologies and renewable energy facilities or the  
                 components of renewable energy technologies;

               vii)   Projects related to energy efficient technologies or  
                 practices and renewable energy production or the  
                 component parts of renewable energy plants and energy  
                 distribution, including energy storage, energy  
                 infrastructure, transportation, clean vehicle technology,  
                 clean heat and power and water and wastewater; and,

               viii)  Natural resource conservation projects related to  
                 climate change such as fish and wildlife restoration,  
                 reforestation, native species restoration, invasive  
                 species eradication, community tree planting and other  
                 projects that fight climate change.

             c)   "Council" means the Clean Technology and Renewable  
               Energy Job Training, Career Technical Education and Dropout  
               Prevention Council comprised of the Secretaries of the  
               Natural Resources, Labor and Workforce Development, and  
               Environmental Protection agencies, the Superintendent of  
               Public Instruction, the Chancellor of the California  
               Community Colleges, two members appointed by the Senate  
               Rules Committee (one who is a renewable energy projects  
               employer and another who is a member of a nonprofit  
               environmental advocacy organization) and two members  









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               appointed by the Assembly Speaker (one who represents  
               disadvantage communities and another from a labor  
               organization that provides state approved renewable energy  
               development pre-apprenticeship or apprenticeship programs).  
                The Secretary of the Natural Resources Agency will serve  
               as the Chair of the Council.  

             d)   "Disadvantaged community" means a community with a  
               median household income that is less than 89% of the  
               statewide average.  Severely disadvantaged community   means  
               a community with a median household income that is less  
               than 60% of the statewide average.

             e)   "Eligible entity" means a  public school serving any of  
               grades 7-12, a California community college, a public  
               entity providing career technical education (CTE) including  
               a county office of education or a school agency joint  
               powers authority, a publicly or investor owned facility, a  
               nonprofit organization, a labor organization, a business  
               entity, a state-approved  apprenticeship program, a  
               regional collaborative (local educational agencies, higher  
               education institutions, businesses, labor organizations or  
               community-based organizations), the California Conservation  
               Corps (CCC) or a certified local conservation corps, a  
               public postsecondary educational institution or any other  
               entity approved by the Council.

             f)   "Program participant" means middle or high school  
               pupils, community college students, job trainees, incumbent  
               workers, members of the CCC or certified local conversation  
               corps, or minors or adults under 22 years of age either on  
               probation or participating in programs that include career  
               technical education as an alternative to conviction,  
               incarceration or adjudication, as specified.

             g)   "Reconfiguration" means a modification of a structure of  
               any age that will enhance the educational opportunities for  
               program participants in order to provide them with the  
               skills and knowledge necessary for their successful  
               employment in careers directly related to clean technology,  
               renewable energy, or energy efficiency that may also  
               contribute to California's goals to reduce greenhouse gas  
               emissions. "Reconfiguration" may include new construction  
               necessary to accommodate the reconfiguration.










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             h)   "Renewable energy projects" means research and  
               development, manufacturing, generation, development, and  
               maintenance of appropriately sited power line transmission,  
               power storage, installation, repair, maintenance, and  
               related activities necessary to produce energy from wind,  
               photovoltaic, solar thermal, geothermal, biomass, including  
               cellulosic ethanol, biodiesel, and biomass power, green  
               waste, and fuel cells.

          4)Creates the Clean Technology and Renewable Energy Job  
            Training, Career Technical Education and Dropout Prevention  
            Fund (Fund) in the State Treasury to provide competitive  
            grants for the purpose of constructing or reconfiguring new  
            facilities with a useful life expectancy of at least 20 years  
            or the length of bond maturity to provide program participants  
            with skills and knowledge necessary for successful employment  
            related to clean technology, renewable energy or energy  
            efficiency.

          5)Requires the Council to develop criteria to evaluate the Fund  
            and requires the criteria to include measures of education,  
            job readiness, and environmental outcomes and shall ensure  
            equity, program relevance to industry needs, and articulation  
            with more advanced coursework at qualified community colleges,  
            public universities, or private institutions.

          6)Specifies the following process for allocating the competitive  
            grant program:

             a)   Requires the SAB to administer grant applications and to  
               implement the program pursuant to regulations and  
               guidelines established by the Council;

             b)   Requires grants be allocated on a per square foot basis  
               and prohibits any requirement that students be unhoused or  
               that facilities meet any age requirements to receive a  
               grant under the program;

             c)   Establishes a maximum of $3 million per project per  
               eligible entity for new construction grants for either  
               stand-alone projects or as supplements to the new  
               construction per unhoused pupil grants under the School  
               Facility Program (SFP);

             d)   Establishes a maximum of $1.5 million  per project per  









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               eligible entity for modernization grants for the purpose of  
               reconfiguration and provides that the grant be supplemental  
               to the modernization per pupil grants under the SFP;

             e)   Requires the eligible entity to contribute toward the  
               project on a dollar for dollar match basis and authorizes  
               the local contribution to come from private industry  
               groups, the school district or a joint powers authority and  
               authorizes the reduction, but not the elimination, of the  
               match at the discretion of the Council.  Authorizes the  
               local contribution to be a dollar amount that is used to  
               fund CTE programs that will be housed in the projects or  
               used to purchase durable equipment.

             f)   Authorizes the repayment of the local contribution over  
               time and authorizes the SAB to establish a repayment  
               schedule similar to that established for the Charter School  
               Facility Program, but prohibits the SAB from waiving the  
               local contribution on the basis of financial hardship or on  
               any other basis.

             g)   Requires applicants to meet any criteria established by  
               the Council and enter into agreements with any other  
               eligible entity, as specified, to provide middle and high  
               school pupils, school dropouts or high school graduates  
               under 22 years of age, members of the CCC and certified  
               local conservation corps, and minors or adults under 22  
               years of age who are on probation or parole with job  
               training, knowledge, skills and credentials necessary for  
               the successful employment in careers directly related to  
               clean technology, renewable energy, or energy efficiency. 

             h)   Requires the grant application to include all of the  
               following:

               i)     A clear and comprehensive CTE plan for each course  
                 of study applicable to the instructional space that  
                 includes programs that focus on clean technology,  
                 renewable energy, or energy efficient systems; 

               ii)    Projections of program participant enrollment; 

               iii)   Identification of feeder schools and institutions,  
                 industry, labor organizations, community colleges, or  
                 other postsecondary schools participating in the  









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                 development, articulation, and review of the educational  
                 program, or other appropriate collaborating entities;

               iv)    Written approval of the plan by the groups specified  
                 in the paragraph above;

               v)     The method by which accountability for program  
                 participant enrollments and outcomes will be maintained.  
                 Outcomes shall include, but are not limited to,  
                 certificate completion, the successful employment of  
                 program participants in the applicable industry, and  
                 successful transition to postsecondary institutions or  
                 state-approved apprenticeship training programs for work  
                 in the applicable industry or other areas of study;

               vi)    Evidence of coordination with appropriate feeder  
                 schools, middle schools, high schools, state-approved  
                 apprenticeship training programs, or other relevant  
                 entities within the area to ensure that the project and  
                 programs complement CTE offerings in the area; 

               vii)   Evidence that upon completion of the project, local  
                 educational agencies will meet all of their obligations  
                 relating to CTE; and,

               viii)  The number of program participants expected to  
                 attend, the cost per program participant, financial  
                 participation by industry partners in the construction  
                 and equipping of the facility, commitment to  
                 accountability for outcomes and participation, the  
                 strength and relevance of the educational plans to the  
                 needs of industry for qualified technical employees  
                 applicable to the economic development and environmental  
                 needs of the region in which the project will be located,  
                 and coordination and articulation with feeder schools,  
                 other high schools, community colleges, labor  
                 organizations, and relevant community-based  
                 organizations.

             i)   Requires the Council to award and develop and adopt  
               guidelines for awarding the competitive grants and requires  
               priority be given to the following:

               i)     Projects serving students in grades 7-12 and  
                 dedicated to dropout prevention and CTE;









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               ii)    Projects in communities containing a school that  
                 serves pupils in any of grades 7 to 12 that ranks in the  
                 bottom three deciles of the Academic Performance Index  
                 (API) or that would rank in deciles 1-3 for a school  
                 participating in the Alternative Schools Accountability  
                 Model;

               iii)   Projects in communities with higher than average  
                 rates of dropouts, low-income households, or other  
                 challenges, as specified.  Requires the Council to grant  
                 not less than 20% of the moneys in the Fund to these  
                 projects; and,

               iv)    Projects initiated by the CCC or a certified local  
                 conservation corps.

          7)Authorizes the Council to use state agency personnel in  
            administering outreach, education, technical assistance,  
            guideline development and grant application review.

          8)Requires the Council to give special consideration to projects  
            that create partnerships among labor, management, and the  
            public sector in clean technology, renewable energy, or energy  
            efficiency sectors.

          9)Requires every proposed activity or project financed be in  
            compliance with the California Environmental Quality Act and  
            that real property acquisitions are from willing sellers.

          10)Authorizes up to five percent of funds be allocated for  
            administrative costs of the program.

          11)Requires the body awarding a contract for a public works  
            project financed from these funds to adopt and enforce a labor  
            compliance program, as specified.

          12)Requires the Chair of the Council to provide for an annual  
            independent audit of expenditures from the Fund.

          13)Specifies the following for funding of the grant program:  

             a)   Authorizes the Council to incur indebtedness and issue  
               and renew negotiable bonds, notes, debentures or other  
               securities of any kind or class;









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             b)   Requires all indebtedness incurred to be paid solely  
               from moneys from the Public Interest Research Development  
               and Demonstration Fund (PIER) and from funds appropriated  
               by the Legislature in the annual Budget Act for this  
               purpose and requires that proceeds from the sale of these  
               instruments be deposited into the Fund;

             c)   Specifies that funds appropriated by the Legislature in  
               the annual Budget Act for this purpose shall not exceed an  
               unspecified amount;

             d)   Authorizes the Legislature by statute, to permit the  
               Council to issue bonds in excess of the unspecified amount  
               provided for in the bill; and,

             e)   Declares that bonds issued do not constitute a debt or  
               liability of the state or any political subdivision of the  
               state other than the Council and that the issuance of bonds  
               under these provisions does not obligate the state or any  
               political subdivision of the state to levy or pledge any  
               form of taxation or to make any appropriation for their  
               payment.

           EXISTING LAW  :

          1)Establishes the Career Technical Education Facilities Program  
            (CTEFP) to provide funding to eligible local educational  
            agencies to construct or reconfigure existing facilities, and  
            to purchase equipment with an average useful life expectancy  
            of at least 10 years.

          2)Provides that grants shall be allocated on a per-square-foot  
            basis and shall not exceed $3 million per project per  
            schoolsite for a new construction project and $1.5 million per  
            project per schoolsite for a modernization project.

          3)Provides that grants shall only be allocated to comprehensive  
            high schools that have an active Career Technical Advisory  
            Committee and have a clear and comprehensive CTE plan.

          4)Requires a school district to contribute a 50% local match  
            that can be provided by private industry groups, the school  
            district, or a joint powers authority.  Provides that the SAB  
            shall not waive the local contribution for any basis,  









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            including financial hardship.  

          5)Establishes the PIER, administered by the California Energy  
            Commission and funded by deposits from electrical utility and  
            natural gas corporations, to grant awards to support  
            cost-effective energy efficient and conversation projects and  
            programs and public interest research and development to  
            improve environmental quality, enhance electrical system  
            reliability, increase efficiency of energy using technologies,  
            lower electrical system costs or other tangible benefits.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, potential costs in the hundreds of millions over 20  
          years for issuance of bonds and $900,000 to the Office of Public  
          School Construction for administration of the grant program.

           COMMENTS  :  According to the author, "California suffers from too  
          many high school dropouts, too little meaningful career  
          technical education (CTE) at the middle and high school levels,  
          and the lack of a skilled workforce to fuel the emerging green  
          economy. California must lead the world in addressing both the  
          problems of its youth and the opportunities created by the new  
          green economy.  SB 675 offers solutions at the intersection of  
          these two state priorities. Investment in these emerging careers  
          and industries will drive the next phase of California's  
          economic growth in a way that helps us meet the challenge of  
          climate change. This investment in reducing the dropout rate,  
          expanding workforce opportunities, and targeting climate change  
          will create major economic stimulus for clean energy and  
          technology jobs in California that will jumpstart our economy  
          and improve our quality of life."  

          This bill establishes a competitive grant program for the  
          construction and modernization of facilities to house programs  
          that will provide education, job training, knowledge, skills and  
          credentials necessary for the successful employment in careers  
          directly related to clean technology, renewable energy, or  
          energy efficiency to pupils in grades 7 through 12, school  
          dropouts, high school graduates under 22 years of age, members  















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          of the CCC<1> and certified local conservation corps, and minors  
          or adults under 22 years of age who are on probation or parole. 

          Entities eligible to apply for grants include any public middle  
          or high school, California community colleges, public entities  
          providing career technical education (county office of education  
          or a school agency joint powers authority), a publicly or  
          investor owned facility, a nonprofit organization, a labor  
          organization, a business entity, a state-approved   
          apprenticeship program, a regional collaborative (local  
          educational agencies, higher education institutions, businesses,  
          labor organizations or community-based organizations), the CCC  
          or a certified local conservation corps, a public postsecondary  
          educational institution or any other entity approved by the  
          Council.  These entities are required to have an agreement with  
          another eligible entity in administering an education or  
          training program.     
              
          The grant is governed by a nine-member Council comprised of the  
          Secretaries of the Natural Resources Agency, Labor and Workforce  
          Development, and Environmental Protection, the Superintendent of  
          Public Instruction, the Chancellor of the California Community  
          Colleges, two members appointed by the Senate Rules Committee  
          (one who is a renewable energy projects employer and another who  
          is a member of a nonprofit environmental advocacy organization)  
          and two members appointed by the Assembly Speaker (one who  
          represents disadvantage communities and another from a labor  
          organization that provides state approved renewable energy  
          development pre-apprenticeship or apprenticeship programs), and  
          administered by the SAB.   
           
          The grants established by this bill are similar to the Career  
          Technical Education Facilities Program (CTEFP) funded by  
          Proposition 1D.  Proposition 1D, authorized by AB 127 (Nunez and  
          Perata), Chapter 35, Statutes of 2006, and approved by the  
          voters in November 2006, provided $7.3 billion for kindergarten  
          through grade 12 school facilities, and established the CTEFP  
          within the School Facility Program, providing $500 million to  
          ---------------------------
          <1> CCCs are non-profit organizations whose primary goal is to  
                                                                          provide youth between the ages of 18 and 23 with a one-year  
          non-residential program that emphasizes work, education, skill  
          building and community service.  An important component of CCCs'  
          work is recycling programs through education and coordination of  
          recycling efforts.









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          construct or modernize facilities and to purchase equipment with  
          an average useful life expectancy of at least 10 years for  
          career technical education programs at existing comprehensive  
          high schools.  As of May, 2010, a total of $91 million remains  
          in the program.

          Similar to the CTEFP, this bill provides $3 million per project  
          per eligible entity for new construction projects and $1.5  
          million per project per eligible entity for modernization  
          projects, and requires a match equal to the amount of the state  
          grant provided.  The contribution can come from private industry  
          groups, the school district, or a joint powers authority.  The  
          local contribution may also be a dollar amount that will be used  
          to fund CTE programs that will be housed in the projects or used  
          to purchase equipment.  The SAB is prohibited from waiving the  
          local contribution on any basis, including for financial  
          hardship assistance.  However, the SAB may authorize a repayment  
          schedule and a loan similar to that provided under the Charter  
          School Facilities Program.  

          This bill is very similar to SB 1672 (Steinberg), which was held  
          in the Assembly Appropriations Committee's suspense file in  
          2008.  The main difference is the fund source.  SB 1672 would  
          have authorized a General Obligation Bond to fund a grant and a  
          loan program for the same purposes as this bill.  The source of  
          funds for this bill is derived from the issuance of an  
          unspecified amount of revenue bonds that will be securitized by  
          PIER funds and funds appropriated by the Legislature through the  
          Budget Act.  The Council is authorized to incur indebtedness and  
          issue the bonds.  The California Energy Commission's Research  
          Development and Demonstration Division administers the PIER  
          program and the PIER fund to provide grants for energy-related  
          research, development and demonstration efforts not adequately  
          provided by competitive and regulated markets.  The PIER fund,  
          which receives funds from electric and natural gas utilities,  
          allocates $83.5 million in public interest energy research funds  
          annually: $62.5 million for electricity and $21 million for  
          natural gas.  The general goal of the program is to develop, and  
          help bring to market, energy technologies that provide increased  
          environmental benefits, greater system reliability, lower system  
          costs and provide tangible benefits to electric utility  
          customers.  PIER funds are currently used to fund research  
          projects to develop new energy technologies.  If enacted, these  
          funds would be redirected for the purposes outlined in this  
          bill.  Current law restricts the expenditure of these funds for  









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          specified purposes from 2007 until 2012.  The author may wish to  
          consider whether conforming changes need to be made in these  
          provisions.

          Under current law, districts are required to adopt alternative  
          means for pupils to complete the prescribed course of study  
          which may include practical demonstration of skills and  
          competencies, supervised work experience or other outside school  
          experience, CTE classes, courses offered by regional  
          occupational centers/programs, interdisciplinary study,  
          independent study, and credit earned at a postsecondary  
          institution.
           
           This bill attempts to increase access to CTE programs.  There  
          has been much interest in the issue of reforming high schools  
          and increasing CTE opportunities for pupils in California  
          schools as an approach to provide access to a relevant  
          curriculum for pupils who may be disengaged and at risk of  
          dropping out.  The California Dropout Research Project released  
          a report entitled, Solving California's Dropout Crisis which  
          estimated that only about two thirds of California's students  
          graduate on time and that dropping out and low achievement have  
          many shared causes such as poor attendance, low engagement and  
          low-quality instruction.  One of the recommendations in the  
          report suggested that the state should consider more options for  
          students to meet the graduation requirements and points out  
          that, "An increasing number of states have pursued the idea of  
          multiple pathways for students to meet high school graduation  
          requirements such as through career and technical education  
          courses."  

          This bill also provides access to training programs for  
          individuals under age 22 who may have dropped out of school or  
          are involved in the juvenile justice system.  According to the  
          California Department of Education, the drop out rate in the  
          state in 2007-08 was 18.9%.  

           Issues for considerations  .  While this bill addresses relevant  
          issues in K-14 education and the workforce while promoting green  
          technology, is lack of facilities the only barrier that prevents  
          development of such programs?

          This bill authorizes grants to be awarded to private for profit  
          and nonprofit entities.  Would this constitute a gift of public  
          funds?  









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           Clarifications Needed  .  The bill requires the Council to  
          establish guidelines for awarding competitive grants and the SAB  
          to administer the program.  However, there are several  
          provisions that appear duplicative or overlapping.  

          1)Section 102004(c) requires the Council to "award" competitive  
            grants.  If the SAB is the entity administering the program,  
            shouldn't the award of grants come from the SAB?  

          2)Section 102004(b) authorizes the Council to use appropriate  
            state agency personnel to, among others, administer grant  
            application review.  Shouldn't grant application review be a  
            function of the SAB?  It is also unclear which state agency  
            this provision is referring to. 
           
          Arguments in Support.   The California School Boards Association  
          states, "SB 675 offers key investments and solutions to address  
          the needs of both schools and local job markets.  Investment in  
          emerging green careers and industries will drive the next phase  
          of California's economic growth in a way that helps us meet the  
          challenge of climate change.  SB 675 takes a unique approach to  
          link the emerging green economy to the collective efforts to  
          address the state's dropout and employment training problems."
           
          Prior legislation  .  SB 1672 (Steinberg) establishes the  
          Renewable Energy, Climate Change, Career Technical Education,  
          and Clean Technology Job Creation Bond Act of 2010, to be  
          operative only if approved by voters at an unspecified election  
          in 2010.  The bill was held in the Assembly Appropriations  
          Committee suspense file in 2008.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Labor Federation, AFL-CIO
          California School Boards Association
          Plug in America
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087  









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