BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 189| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. SB 189 Page 2 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) SB 189 Page 3 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. SB 189 Page 4 (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 SB 189 Page 5 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 SB 189 Page 6 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 SB 189 Page 7 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 SB 189 Page 8 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 **** END ****