BILL ANALYSIS SB 675 Page 1 Date of Hearing: June 28, 2010 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair SB 675 (Steinberg) - As Amended: April 2, 2009 SENATE VOTE : 26-9 SUBJECT : Energy job training: Clean Technology and Renewable Energy Job Training, Career Technical Education, and Dropout Prevention Act of 2010 (Act) SUMMARY : Establishes the Clean Technology and Renewable Energy Job Training, Career Technical Education, and Dropout Prevention Fund (Fund) that awards grants to fund construction and enhancement projects associated with educating and training individuals in preparation for jobs in clean technology industries. EXISTING LAW : 1)Requires the Air Resources Board (ARB) to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020 and to adopt rules and regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. 2)Establishes the Public Interest Energy Research (PIER) program, administered by the California Energy Commission (CEC), which awards grants to fund research in energy technologies and related scientific activities in the public interest. THIS BILL : 3)Makes findings and declarations regarding California's international leadership in renewable energy, energy conservation, clean technology, and climate change policies. 4)Declares the Legislature's intent to stimulate California's economy by creating good paying jobs in industries that are in compliance with current environmental protection laws and regulations, and to provide entrepreneurs and employers with a well-trained workforce, including young adults. These jobs will provide avenues out of poverty for people and communities SB 675 Page 2 that suffer from high levels of unemployment, school dropout rates, and air pollution, while helping California reach its climate change mitigation goals and conserve its natural resources. 5)Transfers an unspecified dollar amount from the CEC's PIER program into the Fund, which will award grants for the construction or reconfiguration of facilities that will enhance educational opportunities and provide skills and knowledge required for successful employment in careers directly related to clean technology, renewable energy, or energy efficiency. 6)Creates the Clean Technology and Renewable Energy Job Training, Career Technical Education, and Dropout Prevention Council (Council) which will consist of the following nine members: a) The Secretary of the Natural Resources Agency, who will serve as the Council Chair. b) The Secretary of Labor and Workforce Development. c) The Secretary for Environmental Protection. d) The Superintendent of Public Instruction. e) The Chancellor of the California Community Colleges. f) Two members appointed by the Senate Rules Committee that represent the following groups: i) An employer engaged renewable energy projects. ii)A member of a non-profit environmental advocacy organization. g) Two members appointed by the Speaker of the Assembly that represent the following groups: i) A disadvantaged community representative. ii)A labor organization that administers state-approved preapprenticeship and apprenticeship programs in the fields of renewable energy and energy efficiency. SB 675 Page 3 7)Requires the Council to develop criteria to evaluate the Fund including metrics of education, job readiness, and environmental outcomes to ensure equity, industry relevance, and proper development of advanced coursework at community colleges, public universities, or private institutions. 8)Requires that the Council administer competitive grants based upon specified criteria. 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 administrative costs. COMMENTS : 1)Background. According to the author, a 2006 poll of at-risk California 9th and 10th graders to discover that 60 percent were not motivated to succeed in school. The poll also indicated that 90 percent of that subset of students believed that they would be more engaged in their education if they learned more applicable skills and knowledge for tangible job and career opportunities. In addition, the author cites a 2006 review by the American Solar Energy Association indicating that approximately 3.6 million Americans were currently employed by either a renewable energy or energy efficiency company, and that another 5 million held jobs indirectly associated with those industries. This study estimated that these two industries generated approximately $975,000,000 in revenue in 2006. Several other economic reviews have come to similar findings regarding the economic potential of the renewable energy and energy efficiency industries within California and the U.S. 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 SB 675 Page 4 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 to construct and retrofit facilities and for equipment purchases for programs that will provide education, job training, knowledge, skills and certification necessary for 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 of the California Conservation Corps (CCC) and certified local conservation corps, and minors or adults under 22 years of age who are on probation or parole. Funds for the purposes of this bill would generated by the issuance of revenue bonds, the amounts of which are unspecified by the bill. Funding will also be provided by the PIER program administered by the CEC, as well as from funds appropriated by the Legislature. The PIER program funds grants totaling about $83 million annually for public interest energy research with the mission of developing energy technologies, providing increased environmental benefits, ensuring electrical grid reliability, and any other energy related research that is of interest to the California public. SB 675 would redirect an unspecified portion of PIER program funds for the purposes of the Act. Eligible recipients for these grants include public schools, community colleges, career technical education facilities, public and investor owned facilities, non-profit organizations, businesses, apprenticeship programs, labor organizations, colleges, universities, CCC members, and others approved by the Council 2)Related Legislation: SB 1672 (Steinberg) establishes the Renewable Energy, Climate Change, Career Technical Education, and Clean Technology Job Creation Bond Act of 2010. SB 1672 was held on suspense in 2008 in the Assembly Appropriations Committee. Proposition 1D, approved by voters in 2006, created the SB 675 Page 5 Career Technical Education Facilities Program and provided $500 million to construct, upgrade, and purchase equipment for career technical education programs. Ninety one million remains in the program. SB 675 Page 6 REGISTERED SUPPORT / OPPOSITION : Support California Catholic Conference, Inc. California Community Colleges Plug In America San Francisco Unified School District Sacramento Municipal Utility District Union of Concerned Scientists Opposition None on file Analysis Prepared by : Jessica Westbrook / NAT. RES. / (916) 319-2092