BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1697 (Bonilla) - Alternative and Renewable Fuel and Vehicle
Technology Program
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|Version: April 25, 2016 |Policy Vote: T. & H. 9 - 1 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 1697 would require the California Energy Commission
(CEC) to provide a preference for projects that provide career
pathways and promote the employment of trained workers in the
clean technology and renewable fuels industries when selecting
projects for funding in the Alternative and Renewable Fuel and
Vehicle Technology (ARFVT) Program.
Fiscal
Impact:
One-time CEC costs of approximately $50,000 for outreach and
information technology costs. (ARFVT Fund)
Ongoing CEC costs of approximately $150,000 annually and 1 PY
of staff to update program regulations, incorporate changes to
the workforce development component, and administer the
revised program. (ARFVT Fund)
AB 1697 (Bonilla) Page 1 of
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Background: Existing law, the California Alternative and Renewable Fuel,
Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007
(AB 118 (Nunez), Chap. 750/2007) provides for a temporary
increase in vehicle registration fees (+$3), Smog Abatement Fee
(+$8), boat registration fees ($10/$20), and special
identification plates (+$5) until January 1, 2024 to fund three
programs: the ARFVT Program, the Air Quality Improvement
Program, and the Enhanced Fleet Modernization Program.
The ARFVT Program is funded by $2 of the vehicle registration
fee and receives approximately $100 million per year. The CEC
administers the program to provide grants, revolving loans, loan
guarantees, and other financial incentives to accelerate the
development and deployment of clean, efficient, low carbon
alternative fuels and technologies. As of the beginning of this
year, the CEC had awarded $606 million in ARFVT Program funds in
the categories of Alternative Fuel Production, Alternative Fuel
Infrastructure, Alternative Fuel and Advanced Technology
Vehicles, and Related Needs and Opportunities, including $27.7
million in workforce training and development funding to 83
recipient programs.
Existing law specifies the types of projects eligible for
funding, including workforce training program related to
alternative and renewable fuel feedstock production and
extraction, renewable fuel production, distribution, transport,
and storage, high-performance and low-emission vehicle
technology and high tower electronics, automotive computer
systems, mass transit fleet conversion, servicing, and
maintenance, and other related sectors or occupations. Existing
law also requires CEC to provide preferences to projects that
maximize the ARFVT Program goals, based on specified criteria.
Proposed Law:
AB 1697 would add the following two criteria to the list from
which CEC must provide project preferences:
The project's ability to provide a path for trained workers to
transition to jobs in the clean technology and renewable fuels
sectors.
AB 1697 (Bonilla) Page 2 of
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The project's ability to promote employment of trained workers
in the clean technology and renewable fuels sectors.
The bill would also delete the current categories of project
eligibility under the workforce training program component and
instead specify that funding is eligible for workforce training
programs related to the development and deployment of innovative
technologies that transform the state's fuel and vehicle types
and assist the state in implementing its climate change
policies, including training programs linked to career pathways
for experienced workers in jobs that will be phased out as the
state transitions to a low-carbon economy and for low-skilled
workers to enter or continue in a career pathway that leads to
middle-skill, industry-recognized certifications or
apprenticeship opportunities.
Staff
Comments: The CEC has historically allocated $2.5 million to $3
million out of the annual $100 million in available funding for
the workforce development component of the ARFVT Program. This
funding has provided training through programs and interagency
agreements with the Employment Development Department (EDD), the
Employment Training Panel, the California Workforce Development
Board, and the California Community Colleges. Rather than
proposing to increase the amount of funding CEC allocates to the
workforce development component, this bill would prioritize
funding for projects under the other program components that
demonstrate the ability to provide career pathways and promote
the employment of trained workers in the clean vehicle
technology and renewable fuels industries. This is intended to
enhance "on-the-job" training opportunities for workers who may
be transitioning from traditional fossil fuel industry jobs into
green energy sectors, rather than providing additional funding
for more traditional vocational training. Since a portion of
each project that is funded through this new prioritization
category will go towards training, the practical impact of this
change may be that there is an incremental decrease in the
development or installation of hard infrastructure. For
example, if a portion of a project award for the installation of
vehicle charging stations is dedicated to training, fewer
charging stations may be constructed.
AB 1697 (Bonilla) Page 3 of
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Proposed Author
Amendments: The author has presented amendments that make the
following changes to the bill:
Clarify the bill's provisions by combining the new criteria
from which the CEC must provide project preferences as
follows: "The project's ability to transition workers to, or
promote employment in, the alternative and renewable fuel and
vehicle technology sector."
Clarify the changes to the workforce development program
component by re-incorporating the specified occupations and
sectors into the proposed language.
Require CEC to collaborate with entities that have expertise
in workforce development, including the California Workforce
Development Board, the Employment Training Panel, the EDD, and
the Division of Apprenticeship Standards, to implement the
workforce development components of the ARFVT Program.
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