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