BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 189|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 189
          Author:   Hueso (D)
          Amended:  6/1/15  
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  7-1, 4/6/15
           AYES:  Hill, Block, Galgiani, Hernandez, Jackson, Mendoza,  
            Wieckowski
           NOES:  Berryhill
           NO VOTE RECORDED:  Bates

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  5-1, 4/15/15
           AYES:  Wieckowski, Hill, Jackson, Leno, Pavley
           NOES:  Gaines
           NO VOTE RECORDED:  Bates

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/28/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NOES:  Bates, Nielsen

           SUBJECT:   Clean Energy and Low-Carbon Economic and Jobs Growth  
                     Blue Ribbon Committee


          SOURCE:    Author

          DIGEST:   This bill establishes the Clean Energy and Low-Carbon  
          Economic and Jobs Growth Blue Ribbon Committee to advise state  
          agencies on the most effective ways to allocate clean energy and  
          greenhouse gas related funds and to implement policies that  
          maximize economic and employment benefits.
          
          








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          ANALYSIS:   


          Existing law:


          1) The California Global Warming Solutions Act (Act) requires  
             the California Air Resources Board (ARB) to determine the  
             1990 statewide greenhouse gas (GHG) emissions level and  
             approve a statewide GHG emissions limit that is equivalent to  
             that level, to be achieved by 2020, and to adopt GHG emission  
             reduction measures by regulation, and sets certain  
             requirements in adopting the regulations.  (Health and Safety  
             Code (HSC) §38500 et seq.)

          2) Requires the ARB to convene an Environmental Justice Advisory  
             Committee (EJAC), to advise the ARB in developing the Scoping  
             Plan, and any other pertinent matter in implementing the Act.  
              Requires that the EJAC be comprised of representatives from  
             communities in the State with the most significant exposure  
             to air pollution, including, but not limited to, communities  
             with minority populations or low-income populations.   
             Requires the ARB to appoint an Economic and Technology  
             Advancement Advisory Committee (ETAAC) to advise the ARB on  
             activities that will facilitate investment in and  
             implementation of technological research and development  
             opportunities, including, but not limited to, identifying new  
             technologies, research, demonstration projects, funding  
             opportunities, developing state, national, and international  
             partnerships and technology transfer opportunities, and  
             identifying and assessing research and advanced technology  
             investment and incentive opportunities that will assist in  
             the reduction of greenhouse gas emissions.  Provides that the  
             ETAAC may also advise the ARB on state, regional, national,  
             and international economic and technological developments  
             related to greenhouse gas emission reductions.  (HSC § 38591)  







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          3) Establishes the Governor's Office of Business and Economic  
             Development (GO-Biz) within the Governor's Office for the  
             purpose of serving as the lead state entity for economic  
             strategy and marketing of California on issues relating to  
             business development, private sector investment and economic  
             growth.  (Government Code §§ 12096 - 12098.5)

          4) Authorizes GO-Biz to coordinate the development of policies  
             and criteria to ensure that federal grants administered or  
             directly expended by state government advance statewide  
             economic goals and objectives.  Authorizes GO-Biz to market  
             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.   
             Authorizes GO-Biz to support small businesses by providing  
             information about accessing capital, complying with  
             regulations, and supporting state initiatives that support  
             small business.  (GC § 12096.3)

          5) Establishes the Commission for Economic Development  
             (Commission) to provide continuing bipartisan legislative,  
             executive branch and private sector support and guidance for  
             the best possible overall economic development of the state.   
             (GC §14999)

          6) Establishes the Economic and Workforce Development Program  
             (EWD) within the California Community Colleges System (CCCs),  
             for the purpose of advancing California's economic growth and  
             global competitiveness through high quality education and  
             services focusing on continuous workforce improvement,  
             technology deployment, and business development, consistent  
             with the current needs of the state's regional economies.   
             (Education Code (EC) § 88600-88651 et. seq.)

          7) Establishes the Green Collar Jobs Council (GCJC) under the  
             California Workforce Investment Board (CWIB) to focus on  
             developing 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.   







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             (Unemployment Insurance Code (UIC) § 15002)

          8) Requires the CWIB report to the Legislature on the status of  
             GCJC activities, grants awarded, and its development and  
             implementation of a green workforce strategic initiative on  
             or before April 1, 2011, and annually each April 1  
             thereafter.  (UIC § 15003)

          This bill:

          1)States findings and declarations about California's world  
            leadership in clean energy and how the state's GHG emission  
            reductions law and policies have led to major employment,  
            economic, environmental and public health benefits.

          2)Creates The Clean Energy and Low-Carbon Economic and Jobs  
            Growth Blue Ribbon Committee (Committee) within the California  
            Environmental Protection Agency (CalEPA).  Specifies 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.  Specifies that at least two members of  
            the Committee shall have experience working on economic  
            projects in disadvantaged communities.

          3)Requires the Committee to advise state agencies on the most  
            effective ways to expend clean energy and GHG related  
            gas-related funds and to implement policies in order to  
            maximize California's economic and employment benefits.  

          4)Requires the Committee to provide an annual update to the  
            Governor and the appropriate policy and fiscal committees of  
            the Legislature on its activities.  Provides that the report  
            may be included in any other annual report CalEPA is required  
            to provide to the Governor and the Legislature if it is  
            feasible for CalEPA to do so.

          5)Until January 1, 2021, requires the State Energy Resources  
            Conservation and Development Commission, the Public Utilities  
            Commission, the ARB, 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 the appropriate policy and fiscal committees of the  
            Legislature describing how it implemented or responded to the  







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            advice, guidance, and any recommendations provided by the  
            Committee.

          Background

          The Author believes that there is no one state agency  
          responsible for oversight on job creation or maximizing economic  
          growth as we set new standards for reducing greenhouse gas  
          emission.  According to the Author, while other advisory bodies  
          like the EJAC and the ETAAC were created under the ARB the Blue  
          Ribbon Committee created in this bill would report directly to  
          the Legislature and this stand-alone committee will be tasked  
          with what the Author believes is the primary role of advising  
          state agencies on the most effective way to implement clean  
          energy and GHG reduction policies in order to create more jobs  
          and encourage economic innovation.  

          AB 32 (Nunez, Chapter 488, Statutes of 2006) required ARB to  
          convene advisory committees as part of the implementation of the  
          Act.  The Act required ARB to prepare and approve a scoping plan  
          for achieving the maximum technologically feasible and  
          cost-effective reductions in GHG emissions from sources or  
          categories of sources of GHGs by 2020.  On January 25, 2007, ARB  
          appointed the first EJAC to advise it on the Initial Scoping  
          Plan and other climate change programs.  EJAC submitted its  
          final recommendations on the proposed AB 32 Scoping Plan on  
          April 11, 2014, noting that, "One of the aspirations of the EJAC  
          and broader social justice movements is that AB 32 can set the  
          stage for investments in a new green economy, creating new green  
          career paths and entrepreneurial opportunities.  This scoping  
          plan has a stronger focus on the short lived climate pollutants  
          and greater acknowledgment of the need for deeper sector  
          reductions."  ETAAC was tasked with advising ARB on activities  
          that will facilitate investment in,  and implementation of,  
          technological research and development opportunities including,  
          but not limited to, identifying new technologies, research,  
          demonstration projects, funding opportunities, developing state,  
          national, and international partnerships and technology transfer  
          opportunities, and identifying and assessing research and  
          advanced technology investment and incentive opportunities that  
          will assist in the reduction of GHG emissions.  The Act also  
          authorized ETAAC to advise the ARB on state, regional, national,  
          and international economic and technological developments  
          related to GHG emission reductions.  The final report noted  







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          that, "In addition to mitigating the dire impacts of climate  
          change, effective action on AB 32 can also yield the co-benefits  
          of cleaner air, new industries and jobs here in California."  

          There are a number of entities throughout state government aimed  
          at increasing workforce and economic development efforts, with a  
          particular recent emphasis on emerging technology, green jobs  
          and the green economy.  AB 3018 (Nunez, Chapter 312, Statutes of  
          2008) created the California Green Collar Jobs Council (GCJC) to  
          perform specified tasks related to addressing the workforce  
          needs that accompany California's growing green economy under  
          the purview of the CWIB.  The GCJC issued a Proposed Jobs and  
          Workforce Development Program Elements for Carbon Reduction  
          Investments in California in January 2014 which proposed "a  
          common approach to workforce development and job creation for  
          California's multiple public investments in carbon reduction  
          initiatives under the umbrella of AB 32.  According to the  
          proposal, "California's energy efficiency, clean energy, and  
          clean transportation programs currently invest several billion  
          dollars each year in incentive programs, public works projects,  
          and a variety of other contracts and subsidies?While the primary  
          purpose of these programs is to meet our energy and carbon  
          reduction targets, these investments create and transform jobs  
          and businesses in a variety of industries in California,  
          particularly the energy, building and construction, and  
          transportation industries. State agencies, utilities, and others  
          responsible for these programs are therefore drivers of economic  
          development and job creation, in addition to their primary role  
          in implementing energy and environmental policy."  

          The Economic and Workforce Development Program within the  
          California Community Colleges System works to advance  
          California's economic growth and global competitiveness through  
          education and services that contribute to continuous workforce  
          improvement, technology deployment, and business development and  
          are consistent with the current needs of the state's regional  
          economies.  Local colleges and business partners form consortia  
          to identify regional workforce needs and priorities, providing  
          assistance to small businesses in the region through local  
          Economic and Workforce Development Centers and train workers.   
          The partnerships enable colleges to develop curricula that  
          address the training needs of local industry.  The Centers for  
          Excellence within the Economic and Workforce Development Program  
          has coordinated on several studies to assess the workforce needs  







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          of emerging and evolving green industries and occupations.
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:

                 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  
               Utilities Commission, the 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).


          SUPPORT:   (Verified6/1/15)


          Alliance for Solar Choice
          American Lung Association, California
          Audubon Caifornia
          Azul
          Bloomenergy
          California League of Conservation Voters
          California State Association of Electrical Workers
          California State Pipe Trades Council
          CALSTART
          Environment California
          Environmental Defense Fund
          Natural Resources Defense Council
          Sierra Club
          Solar City
          Solar Energy Industries Association 
          Sunrun
          Union of Concerned Scientists







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          Western States Council of Sheet Metal Workers 


          OPPOSITION:   (Verified6/1/15)


          None received


          ARGUMENTS IN SUPPORT:     Supporters state that this bill will  
          create jobs and foster more innovation in workforce development  
          practices within the clean energy economy and it will be  
          helpful, as the Legislature and Governor articulate next steps  
          for a more distributed clean energy economy, to have a committee  
          that can advise state agencies on program implementation. 


           
          Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104
          6/1/15 18:32:42


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