BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 675| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ VETO Bill No: SB 675 Author: Steinberg (D), et al Amended: 8/30/10 Vote: 21 SENATE EDUCATION COMMITTEE : 7-0, 4/1/09 AYES: Romero, Alquist, Hancock, Liu, Maldonado, Padilla, Simitian NO VOTE RECORDED: Huff, Wyland SENATE BUS., PROF. & ECON. DEVEL. COMMITTEE : 8-1, 4/27/09 AYES: Negrete McLeod, Wyland, Corbett, Correa, Florez, Oropeza, Romero, Yee NOES: Aanestad NO VOTE RECORDED: Walters SENATE APPROPRIATIONS COMMITTEE : 6-3, 1/21/10 AYES: Kehoe, Corbett, Leno, Liu, Price, Yee NOES: Cox, Denham, Walters SENATE FLOOR : 26-9, 1/28/10 AYES: Calderon, Cedillo, Corbett, Correa, DeSaulnier, Ducheny, Florez, Hancock, Kehoe, Leno, Liu, Lowenthal, Maldonado, Negrete McLeod, Oropeza, Padilla, Pavley, Price, Romero, Simitian, Steinberg, Strickland, Wiggins, Wolk, Wright, Yee NOES: Aanestad, Ashburn, Cogdill, Cox, Denham, Harman, Hollingsworth, Runner, Walters NO VOTE RECORDED: Alquist, Dutton, Huff, Wyland, Vacancy ASSEMBLY FLOOR : 51-25, 8/31/10 - See last page for vote CONTINUED SB 675 Page 2 SENATE FLOOR : 21-14, 8/31/10 AYES: Alquist, Calderon, Cedillo, Corbett, DeSaulnier, Ducheny, Florez, Hancock, Kehoe, Leno, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Romero, Steinberg, Wolk, Wright, Yee NOES: Aanestad, Ashburn, Blakeslee, Cogdill, Correa, Denham, Dutton, Emmerson, Harman, Hollingsworth, Huff, Runner, Walters, Wyland NO VOTE RECORDED: Oropeza, Simitian, Strickland, Wiggins, Vacancy SUBJECT : Partnership academies: Clean Technology and Renewable Job Training Center Technical Education and Dropout Prevention Program SOURCE : Author DIGEST : This bill 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 that focus on clean technology and renewable energy businesses, as specified. Assembly Amendments delete the Senate version of the bill relating to energy job training and inserted language relating to partnership academies and the Clean Technology and Renewable Energy Job Training Career Technical Education, and Dropout Prevention Program. ANALYSIS : Existing Law 1.Establishes the partnership academies program as a school-business partnership program to provide occupational training to educationally disadvantaged high school pupils. Under existing law, the Superintendent of Public Instruction is required to award grants to school districts maintaining high schools to plan, establish, CONTINUED SB 675 Page 3 and maintain these partnership academies. 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. This bill 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. 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 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 and Conservation 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, $8 million of the resulting funds will be available to fund the program established by this bill. 4.Defines "clean technology business" and "renewable energy business" as specified. CONTINUED SB 675 Page 4 5.Requires the State Controller to annually allocate $8 million 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 business 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 the CDE, to develop guidelines that would be exempted from the Administrative Procedure Act, to ensure that programs receiving grants reflect current state energy policies and priorities, as well as provide skills and education linked to the needs of relevant industries. 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 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 CONTINUED SB 675 Page 5 first y ear 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 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 to no more than $120,000. 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. 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 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. 14.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 sequence of courses and authorizes up to four percent of the funds transferred to the SPI pursuant to this bill to be expended to pay for administrative costs of the program. 15.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. CONTINUED SB 675 Page 6 A. Requires the first annual report to include the identification of gaps in available curricula relating to clean technology and renewable energy that are consistent with the current state energy and priorities. B. Requires, beginning in 2013, the report to include pupil participation data and data collected for purposes of academy certification, as specified. 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. Comments A CPA is a three-year program in grades 10-12, structured as a school-within-a-school. CPAs serve at-risk pupils ad 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 in 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 (Assembly 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 CDE, there are CONTINUED SB 675 Page 7 currently 58 green technology CPAs operating in California high schools. This bill provides $8 million from the ERPA under the jurisdiction of the CDE, 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 not more than $.0003 per kilowatt-hour. The Governor's proposed 2010-11 budget contains $70.370 million in 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 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 CONTINUED SB 675 Page 8 technical education courses." The CPA model has demonstrated to be a promising model that provides rigorous academic and CTE opportunities for 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. It can be suggested that there is some evidence that the concept of combining preparation for both college and careers is a promoting instructional approach, and there also appears to be reasonable demand for CPAs that focus in green and clean technology. According to the author's office, "California suffers from too many high school dropouts, too little meaningful career technical education 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. This bill 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 create, 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 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), 2007-08 Session, would have established the Renewable Energy, Climate, Career Technical Education, and Clean Technology Job Creation Bond Act of 2010, to be operative if only approved by voters at an CONTINUED SB 675 Page 9 unspecified election in 2010. SB 1672 died in the Assembly Appropriations Committee. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/30/10) Lieutenant Governor Abel Maldonado State Superintendent of Public Instruction Jack O'Connell California School Boards Association Sacramento City Unified School District Elk Grove Unified School District ARGUMENTS IN SUPPORT : According to the author's office, "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 economic stimulus for clean energy and technology jobs in California." GOVERNOR'S VETO MESSAGE: "I am returning Senate Bill 675 without my signature. SB 675 would allocate funds from the California Energy Commission's (Commission) Energy Resource Programs Account (ERPA) to the California Department of Education (CDE) for developing and maintaining programs that focus on employment and training for energy or water conservation, renewable energy, pollution reduction, or similar technologies. CONTINUED SB 675 Page 10 Throughout my tenure as Governor, I have been a staunch supporter of increasing career-tech education opportunities for our young men and women. I continue to believe that career-tech education has a vital role to play in helping to develop and sustain California's students and our emerging green economy. Nonetheless, given the current uses of the ERPA account at the Commission and the precariously low balance in that fund, this bill would require the Commission to increase the surcharge on electricity users throughout California to pay for its provisions. And even after doing so, the Commission would still be required in the future to cut its core programs to pay for this bill, including those related to power plant licensing, renewable energy facility licensing, and energy efficiency. More importantly, I will not support increasing the surcharge on electricity users to fund a K-12 Education program. To do so would start a dangerous precedent for finding unrelated revenue sources to fund, expand, or create K-12 programs outside of the Proposition 98 guarantee. Additionally, the bill only gives a minor role to the Commission in developing the guidelines for the program. Just as the Commission is not an expert in navigating our state's complex education system, neither are CDE employees proficient in the emerging technologies and future of our green economy. As such, the Commission should be CDE's partner in putting together this program so as to provide our students with the right skills to enter our green economy. If the program included in this bill was wholly funded using Proposition 98 dollars and a greater role was given to the Commission to develop guidelines in cooperation with the Department of Education, I would sign it." CONTINUED SB 675 Page 11 ASSEMBLY FLOOR : AYES: Ammiano, Arambula, Bass, Beall, Block, Blumenfield, Bradford, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes, Furutani, Galgiani, Gatto, Hall, Hayashi, Hernandez, Hill, Huber, Huffman, Jones, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Skinner, Solorio, Swanson, Torlakson, Torres, Torrico, Yamada, John A. Perez NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill, Conway, Cook, DeVore, Fletcher, Gaines, Garrick, Gilmore, Hagman, Harkey, Jeffries, Knight, Logue, Miller, Nestande, Niello, Nielsen, Silva, Smyth, Audra Strickland, Tran, Villines NO VOTE RECORDED: Fuller, Norby, Vacancy, Vacancy CPM:cm 10/5/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED