BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1132


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          Date of Hearing:  April 27, 2015


                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE


                                Anthony Rendon, Chair


          AB 1132  
          (Ting) - As Amended March 26, 2015


          SUBJECT:  Distributed generation:  report:  green workforce  
          training programs


          SUMMARY:  Requires the California Public Utilities Commission  
          (CPUC) to submit an annual report on distributed generation to  
          the Legislature and to include an evaluation of the current use  
          of green workforce training programs related to distributed  
          generation.  Specifically, this bill:  


          a)Requires the CPUC submit a report to the Legislature annually  
            on the impacts of distributed generation on the state's  
            distribution and transmission grid.



          b)Requires this report to include an evaluation of the current  
            use of, and opportunities for green workforce training  
            programs relating to the deployment of distributed energy  
            resources.
          EXISTING LAW:  


          1)Requires the CPUC to submit a report biennially, beginning  
            January 2010, on the impacts of distributed energy generation  








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            on the state's distribution and transmission grid.  (Public  
            Utilities Code Section 321.7)


          2)Requires electrical corporations to submit a distribution  
            resources plan proposal to the CPUC to identify optimal  
            locations for the deployment of distributed resources by July  
            15, 2015. (Public Utilities Code Section 769)


          3)Requires the CPUC to review each distribution resources plan  
            proposal submitted by an electrical corporation and approve,  
            or modify and approve, a distribution resources plan for the  
            corporation.  The commission may modify any plan as  
            appropriate to minimize overall system costs and maximize  
            ratepayer benefit from investments in distributed resources.  
            (Public Utilities Code Section 769)


          4)Requires the  California Workforce Investment Board (CWIB) to  
            establish a Green Collar Jobs Council (GCJC) comprised of the  
            representatives from the CWIB existing membership, including  
            the K-12 representative, the California Community Colleges  
            representative, the Business, Transportation and Housing  
            Agency representative, the Employment Development Department  
            representative, and other appropriate members to identify and  
            develop the framework, funding, strategies, programs,  
            policies, partnerships, and opportunities necessary to address  
            the growing need for a highly skilled and well-trained  
            workforce to meet the needs of California's emerging green  
            economy.  (Unemployment Insurance Code Section 15000)


          5)Requires the CWIB to report annually on the status of GCJC  
            activities and its development of a green workforce strategic  
            initiative.  (Unemployment Insurance Code  Section 15003)


          FISCAL EFFECT:  Unknown.








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          COMMENTS:  


           1)Author's Statement  .  "Since 2001, the number of green jobs in  
            California has grown exponentially, coinciding with the  
            state's investment in solar and other clean energy  
            technologies.  The Solar Foundation's National Solar Jobs  
            Census 2014 found that California remains the top solar state  
            in terms of both installed capacity and employment.  The  
            report found that California employed 54,690 solar workers in  
            2014, representing a 15.8% increase in employment over the  
            course of one year.  Employment numbers for 2015 are expected  
            to continue to grow 17.2%, translating into 9,400 new jobs.   
            It is also important to note that solar installation jobs are  
            a more ethnically and gender diverse sector than other energy  
            sectors, such as coal mining.  Nationally, 16,500 more  
            Latinos, 4,400 more African-Americans, 5,700 more Asian  
            Pacific Islanders, and 12,300 more women are employed in solar  
            installation than coal mining.
            "In his inaugural address, Governor Brown set ambitious goals  
            to further reduce California's energy consumption over the  
            next 15 years, including increasing from 33% to 50% our  
            electricity derived from renewable sources.  As the state  
            works to advance greater RPS goals, all options need to be on  
            the table in order to procure more clean energy, and  
            increasing the amount of renewable DG will be an important  
            part of this strategy.  It is also critical to ensure our  
            workforce is adequately trained to install and maintain this  
            new clean energy infrastructure.










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            "Current law requires the CPUC to publish a report about the  
            impacts of distributed energy generation on the state's  
            distribution and transmission grid.  In order to fully  
            evaluate and understand the impacts of distributive energy  
            generation on the state's workforce and ensure that green  
            workforce training programs are helping to meet this need, it  
            is important that this data is collected and published by the  
            CPUC to help inform public policy decisions moving forward. "


           2)Jobs Data is Lacking  .  Jobs data, such as the Solar  
            Foundation's report referenced by the author, provides data  
            derived from a sampling of companies on direct and induced  
            jobs in the solar industry.  The report does not provide  
            information on how many of those jobs are full-time or part  
            time, or whether these are direct employment or contract  
            positions.  In addition, the jobs survey does not break out  
            data on job classifications in the professional positions,  
            such as legal, finance, engineering, management, and boards of  
            directors, and the extent of diversity within those job  
            classifications.  Last, the Solar Foundation's report focuses  
            solely on solar industry jobs.  There are other distributed  
            generation technologies, including solar thermal, wind energy,  
            renewably fueled on-site generation, and advanced energy  
            storage for which job data is not available.  New distributed  
            generation technologies are also likely to be introduced into  
            the market as the market for distributed generation increases.  
             It would be useful to have accurate and reliable job data on  
            distributed generation technologies so that growth and changes  
            in the workforce can be better understood.



           3)Green Job Training Programs.   According to a 2011 report  
            published by Environment California, it documented nearly 300  
            green job training programs at over 130 institutions  
            throughout the state with up to 15,000 students enrolled  
            annually.  Data on these programs and tracking to understand  
            how many of these students successfully find employment in  








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            green job industries would be useful to understand.  It would  
            also be useful to understand the extent to which the training  
            programs provide support for the full complement of potential  
            employment opportunities.  For example, it appears from a  
            review of this report that many of the jobs focus on building  
            and construction.  This could lead to missed opportunities to  
            train students for other types of green jobs, such as legal,  
            finance, management, and sales.  It would be useful to  
            understand whether the types of training programs provide for  
            non-construction green jobs.
           


          4)Distributed Generation Growth Trajectory  .  The Governor  
            announced a greenhouse gas goal in his 2015 Inaugural Address  
            that included distributed generation.  Specifically the  
            Governor's goal is to, within the next 15 years:

                 Increase from one-third to 50 percent our electricity  
               derived from renewable sources,

                 Reduce today's petroleum use in cars and trucks by up to  
               50 percent, and 



                 Double the efficiency of existing buildings and make  
               heating fuels cleaner.

            The Governor went on to say that he envisions a wide range of  
            initiatives:  more distributed power, expanded rooftop solar,  
            micro-grids, an energy imbalance market, battery storage, the  
            full integration of information technology and electrical  
            distribution, and millions of electric and low-carbon  
            vehicles.

            In addition to the Governor's goal, the Legislature enacted AB  
            327 (Perea, Chapter 611, Statutes of 2013).  AB 327 specified  
            that electrical corporations regulated by the CPUC are to file  








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            distribution resource plans by July 1, 2015 and identify  
            optimal locations for the deployment of distributed resources.  
             The CPUC is required to review and modify or approve the  
            plans in a manner that minimizes overall system cost, and  
            maximizes ratepayer benefit from investments in distributed  
            resources.  The CPUC is then authorized to approve proposed  
            spending if it concludes that ratepayers would realize net  
            benefits and the associated costs are just and reasonable. 

            The CPUC has an open proceeding to implement the provisions of  
            AB 327.  Thus, is it reasonable to expect that there will be  
            an increase in the amount of distributed generation used in  
            California.

           1)Suggested amendments.
             The author may wish to consider amendments to specify the type  
            of information that is to be included in the distributed  
            generation report.



            321.7. (a) On or before January 1, 2010, and annually  
            thereafter, the commission, in consultation with the  
            Independent System Operator and the State Energy Resources  
            Conservation and Development Commission, shall study, and  
            submit a report to the Legislature and the Governor on, the  
            impacts of distributed energy generation on the state's  
            distribution and transmission grid.  The study shall evaluate  
            all of the following:
            (1) Reliability and transmission issues related to connecting  
            distributed energy generation to the local distribution  
            networks and regional grid.
            (2) Issues related to grid reliability and operation,  
            including interconnection, and the position of federal and  
            state regulators toward distributed energy accessibility.
            (3) The effect on overall grid operation of various  
            distributed energy generation sources.
            (4) Barriers affecting the connection of distributed energy to  
            the state's grid.








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            (5) Emerging technologies related to distributed energy  
            generation interconnection.
            (6) Interconnection issues that may arise for the Independent  
            System Operator and local distribution companies.
            (7) The effect on peak demand for electricity.
            (b) In addition, the commission shall specifically assess the  
            impacts of the California Solar Initiative program, specified  
            in Section 2851 and Section 25783 of the Public Resources  
            Code, the self-generation incentive program authorized by  
            Section 379.6, and the net energy metering pilot program  
            authorized by Section 2827.9.
            (c) The commission shall, in consultation with the California  
            Workforce Investment Board and the Employment Training Panel,  
            include in the report required pursuant to subdivision (a) an  
            evaluation of the current use of, and opportunities for, green  
            workforce training programs relating to the deployment of  
            distributed energy resources.   The evaluation shall include,  
            but not be limited to data about distributed generation  
            employment disaggregated, by technology and region within  
            California, as follows:  number of full-time employees; number  
            of part-time employees; number of contract personnel;  total  
            direct jobs; total indirect jobs; inventory of distributed  
            generation training programs available in California focusing  
            on construction, finance, legal, management, sales, or other  
            employment areas within this field; total number of students  
            enrolled in these programs; and rate at employment for  
            graduates from each of these training programs.
           
          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file.










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          Opposition


          None on file.




          Analysis Prepared by:Sue Kateley / U. & C. / (916) 319-2083