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. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 26, 2015 |Policy Vote: B., P. & E.D. 7 - | | | 1, E.Q. 5 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 28, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- SUSPENSE FILE. AS AMENDED. 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 (as approved on May 28, 2015): Increased costs to the California Environmental Protection Agency (CalEPA), potentially in the hundreds of thousands of dollars annually, to house, staff and provide administrative support to the Committee (General and/or special funds). The bill would require the State Energy Resources Conservation and Development Commission, the Public SB 189 (Hueso) Page 1 of ? 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. To the extent that they cannot be integrated with those already statutorily required, these reports are likely to cost in the tens of thousands of dollars 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 SB 189 (Hueso) Page 2 of ? 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. SB 189 (Hueso) Page 3 of ? 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. SB 189 (Hueso) Page 4 of ? 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. SB 189 (Hueso) Page 5 of ? 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. Author Amendments (as adopted on May 28, 2015): Amendments would (1) house the committee inside the CalEPA, and (2) add language to provide agencies with the ability to include the requested info in an existing statutorily required report. -- END --