BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 189 (Hueso) - Clean Energy and Low-Carbon Economic and Jobs  
          Growth Blue Ribbon Committee
          
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          |Version: March 26, 2015         |Policy Vote: B., P. & E.D. 7 -  |
          |                                |          1, E.Q. 5 - 1         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 27, 2015    |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary: SB 189 would establish the Clean Energy and Low-Carbon  
          Economic and Jobs Growth Blue Ribbon Committee (Committee) to  
          advise state agencies regarding (1) the most effective ways to  
          allocate clean energy and greenhouse gas-related funds, and (2)  
          to implement policies that maximize economic and employment  
          benefits.


          Fiscal  
          Impact:  
           The bill does not give guidance on how often the Committee  
            would meet, nor how it would be staffed. Using the Milton  
            Marks "Little Hoover" Commission on California State  
            Organization and Economy (Little Hoover Commission) as a  
            proxy, annual costs to operate and staff the Committee could  
            total in the high hundreds of thousands of dollars annually  
            (General and/or special funds, see Staff Comments). 








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           The bill would require the State Energy Resources Conservation  
            and Development Commission, the Public Utilities Commission  
            (PUC), the State Air Resources Board (ARB) and potentially  
            other state agencies implementing clean energy and low-carbon  
            policies and programs to issue reports annually through 2020,  
            as specified. These reports are likely to cost at least  
            $50,000 per agency, per year. (General Fund and/or special  
            funds).



          Background:  There are a number of entities throughout state government  
          aimed at increasing workforce and economic development efforts,  
          with a particular emphasis on emerging technology, green jobs  
          and the green economy.
          The Commission for Economic Development provides bipartisan  
          legislative, executive branch and private sector support and  
          guidance for the best possible overall economic development of  
          the State.  The commission is tasked with, among other things,  
          (1) assessing specific regional or local economic development  
          problems and making recommendations for solving problems, (2)  
          identifying and reporting important secondary effects on  
          economic development of programs and regulations which may have  
          other primary purposes, and (3) undertaking specialized studies  
          and preparing specialized reports at the request of the Governor  
          or Legislature.


          The California Workforce Investment Board (CWIB) develops a  
          unified, strategic planning process to coordinate various  
          education, training, and employment programs into an integrated  
          workforce development system that supports economic development.  
          CWIB has adopted "sector strategies" as the statewide framework  
          for workforce development and works with partners, including  
          other state agencies, to support the emergence of effective  
          statewide and regionally driven sector initiatives.


          The California Green Collar Jobs Council (GCJC) performs  
          specified tasks related to addressing the workforce needs that  
          accompany California's growing green economy under the purview  
          of CWIB. GCJC makes recommendations and creates strategies for  
          comprehensive and effective workforce training opportunities to  
          help prepare California's current and future workforce to meet  








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          the skills demand from businesses supporting the energy  
          efficiency and clean energy sectors. Additionally, GCJC is  
          tasked with developing, collecting, analyzing, and distributing  
          statewide and regional labor market data on California's new and  
          emerging green industries workforce needs, trends, and job  
          growth and identifying funding resources and making  
          recommendations on how to expand and leverage these funds.  CWIB  
          is required to report annually to the Legislature on the status  
          of GCJC activities, grants awarded, and its development and  
          implementation of a green workforce strategic initiative.  


          The Governor's Office of Business and Economic Development  
          Office (GO-Biz) serves as California's single point of contact  
          for economic development and job creation efforts.  GO-Biz  
          markets the business and investment opportunities available in  
          California by working in partnership with local, regional,  
          federal, and other state public and private institutions to  
          encourage business development and investment in the state. The  
          iHub program within GO-Biz designated 'iHubs' within the state  
          to stimulate partnerships, economic development, and job  
          creation by leveraging assets to provide an innovation platform  
          for startup businesses, economic development organizations,  
          business groups, and venture capitalists.  These assets may  
          include, but are not limited to, research parks, technology  
          incubators, universities, and federal laboratories. 




          Proposed Law:  
            This bill would do all of the following:
           Create the Clean Energy and Low-Carbon Economic and Jobs  
            Growth Blue Ribbon Committee (Committee) consisting of seven  
            members, as follows: five members appointed by the Governor,  
            subject to Senate confirmation; one member appointed by the  
            Assembly Speaker; and one member appointed by the Senate  
            Committee on Rules. Members shall serve a term of four years  
            and shall not receive per diem or other similar compensation  
            for serving as a Committee member, but may receive  
            reimbursement for actual expenses incurred in connection with  
            the performance of their duties.










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           Specify that Committee members have expertise in economic,  
            financial, and policy aspects of clean energy economic growth,  
            job creation, workforce standards, and employment  
            opportunities for disadvantaged workers. Specify that at least  
            two members of the Committee shall have experience working on  
            economic projects in disadvantaged communities.


           Require the Committee to advise state agencies on the most  
            effective ways to expend clean energy and greenhouse gas  
            related gas-related funds and to implement policies in order  
            to maximize California's economic and employment benefits.   
            Specifically, the Committee would be required to:


               o      Develop guidance for tracking and reporting jobs  
                 outcomes for state clean energy and low-carbon  
                 investments and use this information to evaluate jobs  
                 outcomes.


               o      In consultation with the Labor and Workforce  
                 Development Agency, develop guidance to measure the  
                 quantity and quality of jobs created by state investments  
                 in clean energy and low-carbon investments, as well as  
                 guidance to measure the geographic and demographic  
                 distribution of jobs.


               o      Advise state agencies on the most effective ways to  
                 require responsible contractor standards, as applicable  
                 and minimum training and skill certifications for workers  
                 to ensure high-quality work for state clean energy and  
                 low-carbon investments, and the most effective ways to  
                 connect disadvantaged communities and other target  
                 populations to good quality jobs and career pathways  
                 created by those investments.


               o      In consultation with CWIB, advise state agencies on  
                 the most effective ways to align state clean energy and  
                 low-carbon training funds with existing state workforce  
                 development investments and strategies.









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                 Require the Committee to provide an annual update to the  
               Governor and the Legislature on its activities.


                 Require until January 1, 2021, the State Energy  
               Resources Conservation and Development Commission, the  
               Public Utilities Commission, the State Air Resources Board,  
               and any other state agency responsible for implementing  
               clean energy and low-carbon policies and programs to submit  
               an annual progress report to the Governor and Legislature,  
               as specified. 




          Related  
          Legislation:  
                 SB 274 (Morrell) would declare the intent of the  
               Legislature to enact legislation that would promote job and  
               business growth and encourage economic development. The  
               bill is currently in the Senate Rules Committee.


                 AB 1196 (Eduardo Garcia) would make specified  
               modifications to the Commission for Economic Development,  
               including stating that its purpose is to provide continuing  
               support and guidance on public policies and economic  
               development activities that support job creation and  
               business growth in California. The bill is currently in the  
               Assembly Committee on Jobs, Economic Development and the  
               Economy.


                 AB 1030 (Ridley-Thomas) would requires a state agency  
               that allocates moneys from the Greenhouse Gas Reduction  
               Fund to prioritize projects that include project labor  
               agreements with targeted hire goals, community workforce  
               agreements that connect local residents to jobs or training  
               opportunities, or partnerships with training entities that  
               have a proven track record of placing disadvantaged workers  
               in career-track jobs. The bill is currently in the Assembly  
               Natural Resources Committee.









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          Staff  
          Comments: The bill as currently drafted gives little guidance  
          concerning how the Committee would be staffed. As noted earlier,  
          the Little Hoover Commission could serve as a proxy; it has a $1  
          million annual budget and is comprised of seven staff: an  
          executive director, three managers, and three analysts. The  
          Little Hoover's personnel costs (salaries and benefits) total  
          about $750,000 annually; operating expenses and equipment  
          comprise the other $250,000 per year.
          The bill specifies that Committee members would not receive per  
          diem or similar compensation; however, their travel expenses  
          would be reimbursed. Travel expenses for the seven members would  
          likely total in the tens of thousands of dollars annually.