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  








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            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.  








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          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  








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            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  








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            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.  

















































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           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