BILL ANALYSIS Ó 1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
AB 114 - Salas & V. Manuel Pérez Hearing
Date: July 2, 2013 A
As Amended: May 8, 2013 FISCAL B
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DESCRIPTION
Current law establishes the Clean Energy Job Creation Fund to
provide financial assistance to projects that create jobs in
California improving energy efficiency and expanding clean energy
generation. Up to $550 million is available for five fiscal years
from 2013-14 through 2017-18 the source of which is increased
state corporate tax revenues. (Proposition 39, Public Resources
Code 26200 et. seq.)
Current law requires the California Energy Commission (CEC) to
develop guidelines for school districts, charter schools, county
offices of education, and State Special Schools for energy
efficiency and clean energy improvements and allocates $381
million of Proposition 39 revenues in the 2013-14 fiscal year.
The Chancellor of the community colleges is allocated $47 million
for the same purpose for distribution to community colleges and
$28 million is directed to the CEC for the ECCA revolving loan
fund. (Public Resources Codes 26225 et seq.)
Current law appropriates $3 million in Proposition 39 revenues to
the California Workforce Investment Board (CA WIB) to develop and
implement a competitive grant program for eligible community-based
organizations and other training workforce organizations preparing
disadvantaged youth or veterans for employment. (Public Resources
Code 26230)
This bill establishes the Clean Energy Jobs and Workforce
Development Program within the California Labor and Workforce
Development Agency (Labor Agency) for the awarding of grants for
projects that provide job training on energy efficiency and clean
energy projects for disadvantaged youth, women, veterans, or
persons currently in military service, or bridge programs like the
California Conservation Corps, certified community Conservation
Corps, YouthBuild, and other community-based training
apprenticeships or jobs in the energy sectors.
BACKGROUND
Proposition 39 - This ballot initiative was approved by voters at
the November, 2012 election. Titled the California Clean Energy
Jobs Act of 2012, it requires most multistate businesses to
determine their California taxable income using a single sales
factor method. (Previously, state law allowed such businesses to
pick one of two different methods to determine the amount of
taxable income associated with California and taxable by the
state.) This change has the effect of increasing state corporate
tax revenue.
For a five-year period (2013-14 through 2017-18), Proposition 39
also requires that half of the annual revenue raised from the
measure, up to $550 million, be transferred to a new Clean Energy
Job Creation Fund to support projects intended to improve energy
efficiency and expand the use of alternative energy. "Moneys in
the fund shall be available for appropriation for the purpose of
funding projects that create jobs in California improving energy
efficiency and expanding clean energy generation." Proposition 39
specifically requires that the funds maximize energy and job
benefits by supporting:
Energy efficiency retrofits and alternative energy
projects in public schools, colleges, universities, and other
public facilities;
Financial and technical assistance for energy retrofits;
and
Job training and workforce development programs related to
energy efficiency and alternative energy.
Proposition 39 also requires that funded programs be coordinated
with the CEC and California Public Utilities Commission (CPUC) in
order to avoid duplication and leverage existing energy efficiency
and alternative energy efforts. In addition, Proposition 39 states
that the funding is to be appropriated only to agencies with
established expertise in managing energy projects and programs.
Implementing Legislation - On June 15th the Assembly and Senate
adopted SB 73, a trailer bill to the budget, to implement
Proposition 39. Among the provisions was a $3 million allocation
to the CA WIB to develop and implement a competitive grant program
for eligible community-based and other training workforce
organization preparing disadvantaged youth or veterans for
employment.
Additionally, each school district, county office of education,
charter school, or state special school must prioritize projects
in their districts based on several factors including:
The ability of the project to enhance workforce development
and employment opportunities, utilize members of the
California Conservation Corps, certified local conservation
corps, YouthBuild, veterans, Green Partnership Academies,
nonprofit organizations, high school career technical
academies, high school regional occupational programs, or
state-certified apprenticeship programs, or to accommodate
learning opportunities for school pupils or at-risk youth in
the community.
California Workforce Investment Board - According to the Senate
Committee on Labor and Employment, following passage of the
Federal Workforce Investment Act, the state established the 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 CA WIB is also tasked with the responsibility of developing a
strategic workforce plan for the state, updated at least every
five years, to address the state's economic, demographic, and
workplace needs.
Also within the purview of the CA WIB is the Green Collar Jobs
Council created as a result of AB 3018 (Nunez, 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 Labor Agency is an executive branch Agency, and the Secretary
is a member of the Governor's Cabinet. The Labor 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 Relations,
and the CA WIB.
COMMENTS
1. Author's Purpose . 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. AB 114 fulfills this
requirement by establishing the Clean Energy Jobs and
Workforce Development Program to be administered by the Labor
Agency. The Labor Agency's role would be parallel to the
role of the CEC and the CPUC in providing schools and
community colleges with expertise on energy and ensuring
alignment with other ongoing state efforts.
AB 114 requires the Labor Agency to administer the workforce
development and job training component of Proposition 39 to
ensure that low income and unemployed individuals from low
income communities are properly trained. AB 114 requires
reporting and accountability to ensure that funds for
training create positive results.
2. Conformity with Budget Trailer Bill . Many provisions of
this bill duplicate the $3 million workforce training grant
program created by SB 73, the Proposition 39 budget trailer
bill. However, that bill was shy on reporting requirements
for the CA WIB's program and its recipients. To conform with
SB 73, it is the author's intent to pare down this bill and
instead require:
Grant recipients to report CA WIB the number of
individuals trained, their demographic and geographic
profile, number of training completions, cost of
training per individual, number and type of credentials
and certificates awarded, number of trainees enrolled in
state-certified apprenticeship programs, and number of
job placements and retention after six months for
trainees, and job characteristics of the placements,
including industry, occupation, and wages and benefits.
After one year, require the CA WIB to review and assess
whether the program is achieving the job training and
workforce development goals, identify problems and
barriers to achieving those goals, and provide solutions
to improve program performance.
Require a grant recipient to disclose if the entity is
receiving incentives for energy efficiency or clean
energy job training projects from other local, state,
and federal programs but not preclude the receipt or
reduce the amount of grant awarded.
To achieve the author's intent and avoid conflict with SB 73,
the committee may wish to consider amendments to narrow this
bill to require the CA WIB to report and assess its progress
on the use of Proposition 39 program funds.
3. Double Referral . This bill was approved by the Senate
Committee on Labor and Industrial Relations on June 12, 2013,
by a vote of 4-0.
PRIOR VOTES
Senate Labor and Industrial Relations
(4-0)
Assembly Floor (75-2)
Assembly Appropriations Committee (16-0)
Assembly Utilities and Commerce Committee
(14-0)
Assembly Natural Resources Committee
(6-0)
POSITIONS
Sponsor:
PolicyLink
Support:
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|American Legion-Department of |Emerald Cities Bay Area Oakland |
|California |Council |
|AMVETS-Department of California |Environmental Defense Fund |
|Asian Pacific Environmental |Green For All |
|Network |Institute for Sustainable |
|Briones International LLC |Economic, Educational |
|CRLA Foundation | and Environmental Design |
|CA Assn of County Veterans |La Cooperativa Campesina de |
|Service Officers |California |
|CA Association of Local |Metropolitan Education District |
|Conservation Corps |Profile Research & Marketing |
|CA Clean Energy Jobs Act |Proteus, Inc. |
|CA Human Development |Semitropic Elementary District |
|CA Latino Legislative Caucus |Solar Energy Industries |
|CA Pan-Ethnic Health Network |Association |
|CA State Commanders Veterans |Southern California Watershed |
|Council |Alliance |
|CA YouthBuild Coalition |The Greenlining Institute, with |
|Center for Employment Training |amendments |
|Center on Race, Poverty & the |Urban Habitat |
|Environment |Valley Latino Environmental |
|City of Antioch |Advancement and |
|City of Wasco | Policy Project |
|Community Action Partnership of |Veterans of Foreign Wars, Dept. |
|Kern |of California |
|Delano Joint Union High School |Vietnam Veterans of America-CA |
|District |State Council |
|El Concilio of San Mateo County |60 Individuals |
| | |
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Oppose:
None on file
Kellie Smith
AB 114 Analysis
Hearing Date: July 2, 2013