BILL ANALYSIS                                                                                                                                                                                                    




                                                                  SB 675
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          SENATE THIRD READING
          SB 675 (Steinberg)
          As Amended  August 30, 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        EDUCATION           6-1         
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Bradford,        |Ayes:|Brownley, Ammiano,        |
          |     |Huffman, Coto, Davis, De  |     |Arambula, Carter, Eng,    |
          |     |Leon, Gatto, Hall,        |     |Torlakson                 |
          |     |Skinner, Solorio,         |     |                          |
          |     |Torlakson, Torrico        |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Conway, Harkey, Miller,   |Nays:|Nestande                  |
          |     |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  









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            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 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 review grant applications with the CEC and  
            that both entities review ongoing programs to ensure those  
            programs are consistent with state energy policies and  
            priorities. 

          8)Requires the CEC, in consultation with CDE, to develop  
            guidelines to ensure that grantee programs reflect current  
            state energy policies and priorities as well as provide skills  









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            and education linked to the needs of relevant industries and  
            specifies the following process for the adoption of such  
            guidelines: 

             a)   For the initial adoption of guidelines, the CEC shall  
               provide written notice to the public of not less than 30  
               days;

             b)   For substantive amendments to the guidelines, the CEC  
               shall provide written public notice of not less than 15  
               days; and,

             c)   Exempts the guidelines from the requirements of the  
               Administrative Procedure Act. 

          9)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  
            CPA at school sites that do not participate in the in the  
            green CPA program. 

          10)Specifies the allowable grant amounts for the clean  
            technology and renewable energy CPAs as follows: 

             a)   $1,000 per year for each qualified student enrolled in  
               grade 9 during the first year of operation and limits the  
               total grant amount for the first year to no more than  
               $45,000;

             b)   $1,000 per year for each qualified student enrolled in  
               grade 9 or 10 during the second year of operation and  
               limits the total grant amount for the second year to no  
               more than $80,000;

             c)   $1,000 per year for each qualified student enrolled in  
               any of grades 9 to 11, inclusive, during the third year of  
               operation and limits the total grant amount for the third  
               year to no more than $120,000; and,

             d)   $1,000 per year for each qualified student enrolled in  
               any of grades 9 to 12, inclusive, during the fourth and  
               following years of operation and limits the total grant  
               amount for that fiscal year to no more than $150,000.









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          11)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. 

          12)Authorizes the SPI to award 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. 

          13)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 5% of the funds transferred to the SPI  
            pursuant to this bill to be expended to pay for administrative  
            costs of the program.

          14)Requires, commencing in 2012 and not later than January 1 of  
            each year, the SPI in consultation with the CEC to provide a  
            report to the Legislature that includes, but is not limited  
            to, a description of the curriculum and substance of the  
            programs funded by grants awarded as well as pupil  
            participation and other specified data.  

          15)Requires the first annual report to the Legislature to  
            include the identification of gaps in available curricula  
            relating to clean technology and renewable energy that are  
            consistent with current state energy policy and priorities.

          16)Makes the provisions of this bill inoperative on June 30,  
            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. 

           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.   









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            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  
          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 and the CEC is required to develop  
          guidelines to ensure that programs receiving these grants  
          reflect current state energy policies and priorities.  The CEC,  
          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,  









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          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 (kWh).  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.  In the Governor's Budget, the  
          CEC proposes to raise the rate to $.00025 per kWh from the  
          existing, $.00022 per kWh. 

          This bill would allow for continued funding of existing green  
          CPAs when the AB 519 funding sunsets in 2011-12, and possibly  
          allow for an expansion in the number of green CPAs operating in  
          the state.  The 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.  

          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 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 on green and clean technologies.  

          The guidelines developed by CEC are required to be developed in  
          consultation with CDE and these guidelines would be used in the  
          review of grant applications.  It does not appear that the  
          intent is for these guidelines to affect or change the nature  
          and purpose of the CPA program or to dictate curriculum that  
          these CPAs would have to follow.  


           Analysis Prepared by  :    Marisol Avina / ED. / (916) 319-2087 



          ---------------------------
          <1> Profile of the California Partnership Academies 2004-2005.  
          ConnectED The California Center for College and Career.  March  
          2007.








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