BILL ANALYSIS SB 675 Page A SENATE THIRD READING SB 675 (Steinberg) As Amended August 16, 2010 Majority vote SENATE VOTE :26-9 EDUCATION 7-1 NATURAL RESOURCES 6-3 ----------------------------------------------------------------- |Ayes:|Brownley, Nestande, |Ayes:|Chesbro, Brownley, De | | |Ammiano, Arambula, | |Leon, Hill, Huffman, | | |Carter, Eng, Torlakson | |Skinner | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Miller |Nays:|Gilmore, Knight, Logue | | | | | | ----------------------------------------------------------------- APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Fuentes, Bradford, | | | | |Huffman, Coto, Davis, De | | | | |Leon, Gatto, Hall, | | | | |Skinner, Solorio, | | | | |Torlakson, Torrico | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Conway, Harkey, Miller, | | | | |Nielsen, Norby | | | | | | | | ----------------------------------------------------------------- SUMMARY : Establishes the Clean Technology and Renewable Energy Job Training, Career Technical Education, and Dropout Prevention Program by creating a grant program for California Partnership Academies (CPAs) that focus on clean technology and renewable energy businesses, as specified. Specifically, this bill : 1)Makes findings and declarations 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 SB 675 Page B renewable energy resources. 2)States legislative intent to stimulate the state's economy by creating CPAs that will lead to the creation of good paying jobs in industries and businesses that are in compliance with the state's environmental protection laws and regulations, and to prepare young people and adults to work in clean, green industries and professions. 3)Declares that the State Energy Resources Conservation and Development Commission known as the California Energy Commission (CEC) is currently authorized to increase the amount of the existing surcharge imposed on the consumption of electrical energy and states that if the CEC takes this authorized action, the resulting funds would be available to fund the program established by this bill. 4)Defines "clean technology business" and renewable energy business" as specified. 5)Requires the State Controller to annually allocate $8 million dollars from the Energy Resources Program Account (ERPA), upon appropriation by the Legislature, to the Superintendent of Public Instruction (SPI) for expenditure in the form of local grants to school districts to be allocated using the same criteria for allocation of CPA funds, except as specified. 6)Provides that a school district applying for a grant under this bill shall meet the existing CPA requirements and shall propose to implement or maintain a CPA that focuses on employment in clean technology or renewable energy businesses and provides skilled workforces for the products and services for energy or water conservation, or both, renewable energy, pollution reduction, or other technologies that improve the environment in furtherance of state environmental laws. 7)Requires the SPI to consult with the CEC to ensure that grantee programs are consistent with current state energy policies and priorities. 8)Requires the SPI in awarding the grants to give first priority to school districts that propose to establish a CPA at school sites that do not currently participate in the CPA program, and second priority to school districts that would establish a SB 675 Page C CPA at school sites that do not participate in the in the green CPA program. 9)Specifies the allowable grant amounts for the clean technology and renewable energy CPAs as follows: a) $1,400 per year for each qualified student enrolled during the first year of operation and limits the total grant amount for the first year to no more than $42,000; b) $1,400 per year for each qualified student enrolled during the second year of operation and limits the total grant amount for the second year to no more than $84,000; c) $1,200 per year for each qualified student enrolled during the third year of operation and limits the total grant amount for the third year to no more than $108,000; and, d) $900 per year for each qualified student enrolled during the fourth and following years of operation and limits the total grant amount for that fiscal year to no more than $138,000. 10)Stipulates that a "qualified student" has the same meaning as described in provisions governing the CPA program and shall also include a 9th grade student who meets the at-risk criteria specified in the CPA program and other specified criteria. 11)Authorizes the SPI to provide a grant to a school district that has received a grant under the existing CPA program subject to the provisions of this bill and the availability of funds. 12)Requires the SPI to encourage a school district that receives a grant pursuant to this bill to work and coordinate with regional occupational centers and programs for the required career technical education (CTE) sequence of courses and authorizes up to 4% of the funds transferred to the SPI pursuant to this bill to be expended to pay for administrative costs of the program. 13)Makes the provisions of this bill inoperative on June 30, SB 675 Page D 2016, and repeals them as of January 1, 2017, unless a later enacted statute that becomes operative on or before January 1, 2017 deletes or extends this date. EXISTING LAW : 1)Establishes the CPA program as a state-school-private sector partnership to provide combined academic and occupational training to eligible at-risk students in grades 10-12, inclusive. 2)Establishes the Green Technology Partnership Academies and the Goods Movement Partnership Academies, commencing with the 2009-10 school year, and requires, when funds become available for additional partnership academies, the SPI to issue grants for the establishment of such partnership academies in each of the nine economic regions established by the state. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Requires the State Controller to annually allocate $8 million from ERPA to the SPI for grants for CPAs. 2)Expresses legislative intent that the funds deposited in the ERPA be available to fund programs specified in this measure. ERPA provides funding (derived from a surcharge on rate payers) for the administration of the CEC. The Governor's 2010-11 Budget proposes approximately $71 million for ERPA. According to the author, there is approximately $8 million in ERPA funds that are not being utilized by the CEC. COMMENTS : A CPA is a three-year program in grades 10-12, structured as a school-within-a-school. CPAs serve at-risk pupils and the program requires that no less than one half of each new class must meet the specified at-risk criteria. The criteria used for student eligibility includes: irregular attendance, past record of underachievement, low motivation or disinterest in the regular academic program, and economical disadvantages. The curriculum of CPAs is focused on a career theme and is coordinated with related academic classes. The career technical focus for a CPA is determined by an analysis of the local labor market and fields that have companies willing to support the program. According to the California Department of SB 675 Page E Education (CDE), there are 475 CPAs currently operating in the state. AB 2855 (Hancock), Chapter 685, Statutes of 2008, established, commencing with the 2009-10 school year, the Green Technology Partnership Academies as a new category of CPAs, and AB 519 (Budget Committee), Chapter 757, Statutes of 2008, appropriated $12.5 million from the Public Interest Research, Development, and Demonstration Fund to fund 61 new CPAs that focus on clean technology, renewable energy, pollution reduction, and other "green" environmental technologies. AB 519, however only provides this additional funding for three years and the funding will sunset in 2011-12. According to the CDE there are currently 58 green technology CPAs operating in California high schools. This bill provides $8 million from the ERPA under the jurisdiction of the CEC, to fund clean technology and renewable energy CPAs. The SPI is required to consult with the CEC to ensure the grantee programs are consistent with state energy policies and priorities. The CEC, established in 1974 and comprised of five individuals appointed by the Governor and the Senate, is responsible for developing and implementing the state's energy policies, forecasting statewide energy needs, siting and licensing thermal power plants, promoting energy conservation programs, and conducting energy-related research and development programs. The CEC is primarily funded through a surcharge on customers at a rate determined by the CEC annually, but at no more than $.0003 per kilowatt-hour. The Governor's proposed 2010-11 budget contains $70.370 million in the Energy Resources Program Account, of which, $60.886 million is derived from this surcharge. Because the AB 519 funding will sunset in 2011-12, this bill may allow for continued funding of existing green CPAs. Program requirements for green CPAs that already exist in statute are very similar to those created by this bill, and thus this bill appears to create a duplicate program. 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 SB 675 Page F 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." The CPA model has demonstrated to be a promising model that provides rigorous academic and CTE opportunities to pupils. A study conducted on CPAs showed that the graduation rate for partnership academy seniors during the 2004-05 school year was higher than those of the statewide population, and that CPA students passed the high school exit exam at higher rates than did the general student population.<1> It can be suggested that there is some evidence that the concept of combining preparation for both college and careers is a promising instructional approach, and there also appears to be reasonable demand for CPAs that focus in green and clean technology. 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." Prior legislation: AB 2855 (Hancock), Chapter 685, Statutes of --------------------------- <1> Profile of the California Partnership Academies 2004-2005. ConnectED The California Center for College and Career. March 2007. SB 675 Page G 2008, establishes, commencing with the 2009-10 school year, the Green Technology Partnership Academies and the Goods Movement Partnership Academies as two new categories of CPAs. SB 1672 (Steinberg) of 2008, which died in the Assembly, would have established 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. Analysis Prepared by : Marisol Avina / ED. / (916) 319-2087 FN: 0006094