BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 26
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           REPLACE  :  05/30/2013 Changes per consultant.

          ASSEMBLY THIRD READING
          AB 26 (Bonilla)
          As Amended  May 28, 2013
          Majority vote 

           NATURAL RESOURCES       6-3     LABOR & EMPLOYMENT         5-2  
           
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          |Ayes:|Chesbro, Garcia,          |Ayes:|Roger Hernández, Alejo,   |
          |     |Muratsuchi, Skinner,      |     |Chau, Gomez, Holden       |
          |     |Stone, Williams           |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Grove, Bigelow, Patterson |Nays:|Morrell, Gorell           |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Gatto, Bocanegra,         |     |                          |
          |     |Bradford,                 |     |                          |
          |     |Ian Calderon, Campos,     |     |                          |
          |     |Eggman, Gomez, Hall,      |     |                          |
          |     |Ammiano, Pan, Quirk,      |     |                          |
          |     |Weber                     |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Harkey, Bigelow,          |     |                          |
          |     |Donnelly, Linder, Wagner  |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Enacts various provisions related to projects funded  
          from the Greenhouse Gas Reductions Fund (Fund) and related  
          curriculum.  Specifically,  this bill  :

          1)Provides that moneys from the Fund may be made available to  
            the owner or operator of a refinery to perform work to reduce  
            greenhouse gas emissions if all work at the refinery related  
            to reducing greenhouse gas emissions that is not performed by  
            the owner's or operator's own employees and that falls within  
            an "apprenticeable occupation" will be performed by "skilled  








                                                                  AB 26
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            journeypersons" and "registered apprentices," as those terms  
            are defined.

          2)Provides that "approved advanced safety training in performing  
            work processes to reduce greenhouse gas emissions" (as  
            defined) may be provided by an apprenticeship program approved  
            by the Chief of the Division of Apprenticeship Standards (DAS)  
            or by the California Community Colleges.

          3)Requires, no later than January 1, 2016, the Chief of DAS to  
            approve a curriculum, and, in consultation with the California  
            Emergency Management Agency and the Division of Occupational  
            Safety and Health, to periodically revise the curriculum to  
            reflect current best practices.

          4)Provides that an apprenticeship program or community college  
            shall issue a certificate to a worker who completes the  
            approved curriculum.

          5)Specifies that employers shall not be required to pay for the  
            costs of the training or to pay wages to workers for the time  
            spent in the training unless the employer has agreed to do so.

          6)Provides that construction, alteration, demolition,  
            installation, repair, line and maintenance work paid for in  
            whole or in part from the Fund shall be considered "public  
            works."

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill will result in unknown cost pressure.

           COMMENTS  :  In 2006, the Legislature passed the California Global  
          Warming Solutions Act (AB 32 (Núñez), Chapter 488, Statutes of  
          2006) which called for California to reduce its greenhouse gas  
          emissions to 1990 levels by the year 2020.  The Cap and Trade  
          Program is a key element in California's climate plan.  It sets  
          a statewide limit on sources responsible for 85% of California's  
          greenhouse gas emissions, and establishes a price signal needed  
          to drive long-term investment in cleaner fuels and more  
          efficient use of energy.  

          Among other things, this bill provides that construction,  
          alteration, demolition, installation, repair, line and  
          maintenance work paid for in whole or in part from the Fund  








                                                                  AB 26
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          shall be considered "public works" for purposes of state  
          prevailing wage law.

          This bill also provides that moneys from the Fund may be made  
          available to the owner or operator of a refinery to perform work  
          to reduce greenhouse gas emissions if all work at the refinery  
          related to reducing greenhouse gas emissions that is not  
          performed by the owner's or operator's own employees and that  
          falls within an "apprenticeable occupation" will be performed by  
          "skilled journeypersons" and "registered apprentices," as those  
          terms are defined.

          This bill is supported by the State Building and Construction  
          Trades Council of California, who states that the wage and  
          benefits provided by the prevailing wage lead directly to a  
          middle class livelihood and any of the funds that come out of  
          the Greenhouse Gas Reduction Fund should not only go towards  
          making the environment cleaner, but also to the workers  
          performing the work so that they can earn a livable wage with  
          benefits.

          The United Steelworkers (USW) opposes this measure and argues  
          that the bill in its current form would eliminate approximately  
          5,000 of their members' jobs in California due to a  
          jurisdictional dispute with another labor organization, causing  
          bitter, ongoing and disruptive labor disputes in California's  
          vitally important refineries.  USW argues that, in addition to  
          forfeiting the jobs of thousands of employees, the current bill  
          will do nothing to improve safety, but instead would simply  
          direct millions of dollars in public money to subsidize work  
          that refinery operators are already required to perform.

           
          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 


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