BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 189|
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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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