BILL ANALYSIS Ó
AB 1697
Page 1
Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1697 (Bonilla) - As Amended April 25, 2016
-----------------------------------------------------------------
|Policy |Rules |Vote:|8 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| |Jobs, Economic Development, | |9 - 0 |
| |and the Economy | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill expands the criteria for selecting projects funded by
the Alternative and Renewable Fuel and Vehicle Technology
Program (Program) to prioritize the ability of the project to
provide career pathways and promote the employment of trained
workers in the clean vehicle technology and renewable fuels
industries.
AB 1697
Page 2
FISCAL EFFECT:
1)Increased one-time costs of $500,000 for the California Energy
Commission (CEC) to obtain the technical support necessary to
revise criteria and implement the requirements of the bill.
(Alternative Renewable Rule and Vehicle Technology Fund).
2)Initial and ongoing annual costs of $450,000 and 3 positions
to implement the revised Program. (Alternative Renewable Rule
and Vehicle Technology Fund).
COMMENTS:
1)Purpose. According to the author, as policies to reduce GHG
emissions and petroleum use go into effect, the job market
landscape will inevitably change, resulting in a greater
emphasis on green jobs. In order to remain competitive,
California will have to transition its workforce to match the
growing demand. By incentivizing applicants to include a
workforce development element in order to be more competitive,
this bill will ensure the California workforce is able to
transition smoothly to future policies aimed at reducing GHG
emissions.
2)Background. In 2007, AB 118 established three new programs
intended to promote vehicle and fuel technology that reduces
air pollution and GHG emissions statewide. These programs are
the Air Quality Improvement Program (AQIP), the Enhanced Fleet
Modernization Program (EFMP), and the Alternative Renewable
Fuel and Vehicle Technology Program (Program).
The Program is administered by the CEC, which each year awards
up to $100 million in grants to support the development and
deployment of innovative technologies related to alternative
fuel and vehicle technologies. Although workforce development
AB 1697
Page 3
is among the list of eligible activities, funding for training
has been limited. Of the $100 million available each year,
the CEC set aside $2.5 million in 2014-15 and $3 million in
2015-16 for workforce related investments.
3)Implementation Concerns. The CEC does not have the
specialized expertise needed to ensure effective workforce
training and employment programs are contained in each award.
Most agreements fund the development, demonstration and
deployment of alternative fuels, alternative fuel vehicles,
and infrastructure. These funding recipients have expertise in
installing electric vehicle charging infrastructure,
constructing hydrogen refueling stations,
constructing/operating biofuel production facilities, and
demonstrating/deploying alternative fuel vehicles.
Workforce training is currently an eligible Program
expenditure. To date, the Program has provided workforce
training funds to the Employment Training Panel, California
Community Colleges, California Workforce Investment Board, and
Employment Development Department.
This bill goes beyond eligibility and instead adds workforce
training to the criteria for which the CEC is required to
prioritize all individual projects and funding categories.
The author may wish to consider identifying another state
agency to assist CEC in implementing the additional workforce
training criteria across all funding categories.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081
AB 1697
Page 4