BILL ANALYSIS Ó
Senate Committee on Labor and Industrial Relations
William W. Monning, Chair
Date of Hearing: June 12, 2013 2013-2014 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 114
Author: Salas and V. Manuel Perez
As Introduced/Amended: May 8, 2013
SUBJECT
Proposition 39: implementation: workforce development
KEY ISSUES
Should the Legislature establish the Clean Energy Jobs and
Workforce Development Program to provide eligible entities with
grants for clean energy efficiency projects?
Should the Clean Energy Jobs and Workforce Development Program
be established within the Labor and Workforce Development
Agency?
Should 9.6% of revenue deposited into the Clean Energy Job
Creation Fund (Proposition 39) be annually appropriated to the
agency for purposes of providing grants to eligible entities?
ANALYSIS
The California Clean Energy Jobs Act (The Act) was created,
among other things, with the objective of creating good-paying
energy efficiency and clean energy jobs in the state. The Act
also has the objective of providing a full public accounting of
all money spent and jobs and benefits achieved so the programs
and projects funded pursuant to the Act can be reviewed and
evaluated. (Public Resources Code §26201)
Among other things, the Clean Energy Jobs Act does the
following:
1) Establishes a Citizens Oversight Board (COB), composed
of nine members appointed by the State Treasurer, the State
Controller and the Attorney General, whose expertise may
contribute to the effective execution of energy projects.
The COB is intended to ensure that funds are used
appropriately, and to evaluate the cost effectiveness of
projects. (Public Resources Code §26210)
2) Creates the Clean Energy Job Creation Fund within the
State Treasury and dedicates $550,000,000, annually for
five fiscal years (2013-14 through 2017-18), for the
funding of projects that create energy efficiency and clean
energy jobs in California. (PR §26205)
Under existing law , project selection and oversight is to be
managed by existing state and local government agencies with
expertise in managing energy projects and programs.
Additionally, all projects are required to be cost effective:
total benefits shall be greater than project costs over time.
All projects are also subject to audit. (PR§ 26206)
This Bill establishes the Clean Energy Jobs and Workforce
Development Program within the Labor and Workforce Development
Agency for the awarding of grants for projects that provide job
training on energy efficiency and clean energy projects.
Specifically, this bill would:
1) Direct the Labor Agency to, among other things, do the
following:
a. Establish and implement a procedure to set
explicit goals, identify performance metrics,
institute a data tracking system, and evaluate
outcomes, as specified.
b. In consultation with the Chancellor of the CA
Community Colleges, the State Department of Education,
the State Energy Resources Conservation and
Development Commission, and the Public Utilities
Commission, develop a competitive process to award
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grants to eligible entities, and evaluate and select
applications for grants.
2) Provide that priority, as specified, is to be given to
projects providing job training or pre-apprenticeships on
energy efficiency and clean energy projects to
disadvantaged youth, women, veterans, or persons currently
in military service, or bridge programs like the CA
Conservation Corps, certified community Conservation Corps,
YouthBuild, and other community-based training
apprenticeships or jobs in the energy sectors.
3) Provide that entities requesting a grant shall disclose
if they are receiving incentives for energy projects from
other local, state, and federal programs, however, this
does not preclude the entity from receiving a grant from
other sources.
4) After the first year of implementation, require the
agency to review and assess the whether the program is
achieving its goals, identify problems and barriers to
achieve them, and provide solutions to improve program
performance.
5) For each fiscal year in which revenue is deposited into
the Job Creation Fund, 9.6 percent of the revenue shall be
available, upon appropriation by the Legislature, to the
agency for the purposes of providing grants to eligible
entities under the program.
6) Establish several related definitions, and findings and
declarations related to clean energy.
COMMENTS
1. Brief Background on Proposition 39: CA Clean Energy Jobs Act
At the November 2012 general election, California voters
approved Proposition 39 (The California Clean Energy Jobs Ac)
to close a corporate tax loophole that previously allowed
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Senate Committee on Labor and Industrial Relations
multi-state corporations operating in California to choose
between two methods of determining taxable income. This shift
to a single sales factor method is estimated to increase the
state's annual corporate tax revenues by as much as $1.1
billion. Among other things, Prop 39 also specified how a
portion of this new revenue should be spent - $550,000,000
would be dedicated annually for five years (2013-14 through
2017-18), for the funding of projects that create energy
efficiency and clean energy jobs in California. Moneys in the
Clean Energy Job Creation Fund, which was created within the
State Treasury, are available, upon appropriation by the
Legislature, for purposes of funding eligible projects.
2. Need for this bill?
The California Clean Energy Jobs Act, among other things, was
approved by the voters with the objective of creating
good-paying energy efficiency and clean energy jobs in the
state. This bill is necessary to implement the goals and
objectives of the CA Clean Energy Jobs Act and carry out the
responsibility of disbursing the funds to qualifying projects.
The bill would require the Labor and Workforce Development
Agency, in consultation with specified entities, to develop
and implement the Clean Energy Jobs and Workforce Development
Program to award grants to eligible entities, as defined, for
projects to provide job training on energy efficiency and
clean energy projects that serve low-income or unemployed
residents of economically disadvantaged communities.
3. Committee Staff Comment :
Following passage of the federal Workforce Investment Act, the
state established the California Workforce Investment Board
(CA WIB) and charged the board with the responsibility of
developing a unified, strategic planning process to coordinate
various education, training, and employment programs into an
integrated workforce development system that supports economic
development. The CWIB is also tasked with the responsibility
of developing a strategic workforce plan for the state,
updated at least every 5 years, to address the state's
economic, demographic, and workplace needs.
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Also within the purview of the CA WIB is the Green Collar Jobs
Council created as a result of AB 3018 (Nunez) of 2008. The
Green Collar Jobs Council is tasked with understanding the
current and future workforce needs of the green economy, and
developing a comprehensive strategy to prepare California's
workforce to meet the needs of businesses as the transition to
a more sustainable green economy takes place.
The California Labor & Workforce Development Agency (Labor
Agency) is an executive branch Agency, and the Secretary is a
member of the Governor's Cabinet. The Agency oversees six
major departments, boards and panels that serve California
businesses and workers. Among these are the Employment
Development Department, the Department of Industrial Relation,
and the CA Workforce Investment Board.
This bill would direct the Labor Agency to create the Clean
Energy Jobs and Workforce Development Program to implement the
goals and objectives of Proposition 39, however, given that
the CA Workforce Investment Board is the entity within the
Labor Agency that is tasked with the responsibility of
developing our states workforce development system, it seems
more appropriate that the bill would direct this
responsibility to the State Board. The author may wish to
consider amending the bill to task the State Board with that
responsibility, especially given the boards' expertise and
current work on the green economy through their operation of
the Green Collar Jobs Council.
4. Proponent Arguments :
According to the author, citing the Associated Press,
California green businesses increased 45 percent in number and
36 percent in employment from 1995 to 2008 while total jobs
expanded only 13 percent. As the economy slowed between 2007
and 2008, total employment fell 1 percent, but green jobs
continued to grow five percent. Even in rural areas with a
smaller economic base, green jobs grew faster than the overall
economy. Proponents argue that the billions of dollars
Proposition 39 is expected to generate give California a
unique opportunity to advance energy goals, improve conditions
in schools, and jump start our economy.
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Senate Committee on Labor and Industrial Relations
Proposition 39 requires that some portion of the funding be
dedicated to job training and workforce development, including
training and employment for disadvantaged youth, veterans, and
others on energy efficiency and clean energy projects. The
author argues that this bill fulfills this requirement by
establishing and funding the Clean Energy Jobs and Workforce
Development Program to be administered by the California Labor
and Workforce Development Agency.
5. Opponent Arguments :
None received.
6. Double Referral :
This bill has been double referred and, if approved by this
committee, it will be sent to the Senate Energy, Utilities and
Communications Committee for a hearing.
7. Prior or Related Legislation :
The following bills propose various approaches to distributing
Prop 39 energy funds.
AB 29 (Williams) of 2013: Pending in Assembly Utilities &
Commerce Comm. - 2 yr. bill
AB 29 would appropriate $152 million per year to public higher
education clean energy projects from Prop 39 clean energy
funds, with 50 percent to be awarded as grants and 50 percent
to fund loans.
AB 39 (Skinner) of 2013: Pending Senate Rules Assignment
AB 39 would establish a program to be administered by the CA
Department of Education, the CA Community Colleges and the CA
Energy Commission for the distribution of funds to clean
energy projects undertaken by public schools, with 75 percent
to be awarded as grants and 25 percent to fund revolving
loans.
AB 239 (Hagman) of 2013: Failed in Assembly Utilities and
Commerce Committee
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Senate Committee on Labor and Industrial Relations
AB 239 would have transferred 50 percent of Prop 39 clean
energy funds to the Clean Energy School Fund to be expended by
the Office of Public School Construction (OPSC) to fund energy
efficiency retrofit or clean energy installation projects at
public schools, with 60 percent reserved for grants and 40
percent for loans.
AB 293 (Allen) of 2013: Held in Assembly Appropriations
Committee
AB 293 requires the CEC to develop a program to award funding
on a competitive bases for the purposes of Prop 39.
SB 39 (De Leon) of 2013: Pending Assembly Rules Assignment
SB 39 would require the Office of Public School Construction,
in coordination with the State Energy Resources Conservation
and Development Commission, to distribute Prop 39 clean energy
funds to K-12 public schools through competitive grants for
energy efficiency upgrade projects, with priority given to
"disadvantaged school communities." The bill would also
require the Department of Industrial Relations to monitor and
enforce applicable prevailing wage requirements, as
specified.
SB 64 (Corbett) of 2013: Pending Assembly Rules Assignment
SB 64 requires the CEC to develop and administer a competitive
financial assistance program consistent with Prop 39 to
provide financial assistance to K-12 public schools or
municipal facilities that include, but are not limited to,
hospitals and wastewater treatment facilities and facilities
in public school districts, as provided.
SUPPORT
PolicyLink - Sponsor
American Legion-Department of California
AMVETS-Department of California
Asian Pacific Environmental Network, APEN
California Association of County Veteran Service Officers
California Association of Local Conservation Corps
California Human Development
California School Employees Association
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Senate Committee on Labor and Industrial Relations
California State Commanders Veterans Council
California Youthbuild Coalition
Center for Employment Training
Center on Race, Poverty & the Environment
City of Wasco
Community Action Partnership of Kern
Delano Joint Union High School District
Emerald Cities Bay Area Oakland Council
Environmental Defense Fund
Green for All
La Cooperativa Campesina de California
Metropolitan Education District
Profile Research & Marketing Consulting
Proteus, Inc.
Semitropic Elementary School District
The Greenlining Institute
Urban Habitat
Veterans of Foreign Wars, Department of California
Vietnam Veterans of America-California State Council
20 Individuals
OPPOSITION
None received
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Consultant: Alma Perez Page 8
Senate Committee on Labor and Industrial Relations