BILL ANALYSIS Ó
SB 189
Page 1
Date of Hearing: July 13, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
SB
189 (Hueso) - As Amended June 1, 2015
SENATE VOTE: 26-14
SUBJECT: Clean Energy and Low-Carbon Economic and Jobs Growth
Blue Ribbon Committee.
SUMMARY: Establishes the Clean Energy and Low-Carbon Economic
and Jobs Growth Blue Ribbon Committee (Committee) within the
California Environmental Protection Agency (CalEPA) to advise
state agencies on economic benefits and job growth related to a
cleaner, low-carbon economy.
EXISTING LAW:
1)Under the California Global Warming Solutions Act of 2006 (AB
32):
a) Requires the California Air Resources Board (ARB) to
adopt GHG emissions reduction measures to achieve a
reduction in statewide GHG emsisions to the 1990 level.
b) Requires ARB to appoint an Economic and Technology
Advancement Advisory Committee (ETAAC) to advise on
SB 189
Page 2
technological research and development opportunities.
c) Requires ARB to prepare and approve a Scoping Plan, on
or before January 1, 2009 and once every five years
thereafter, for achieving the maximum technologically
feasible and cost-effective reductions in GHG emissions
from sources of emissions by 2020. Establishes the
Environmental Justice Advisory Committee (EJAC) to advise
ARB on the development of the Scoping Plan and other
pertinent matters.
d) Establishes the Greenhouse Gas Reduction Fund (GGRF) in
the State Treasury, requires all funds, except for fines
and penalties, collected pursuant to a market-based
mechanism be deposited in the GGRF, and requires the
Department of Finance, in consultation with ARB and any
other relevant state agency, to develop a three-year
investment plan for the moneys deposited in the GGRF.
e) Requires that the GGRF be used to facilitate GHG
emissions reductions in this state consistent with AB 32.
Requires that annual budget appropriations from the GGRF be
consistent with the investment plan.
f) Requires the GGRF investment plan to allocate, at a
minimum, 25% of the funds to benefit disadvantaged
communities, and to allocate 10% of the funds for projects
within disadvantaged communities.
SB 189
Page 3
2)Under the California Alternative and Renewable Fuel, Vehicle
Technology, Clean Air, and Carbon Reduction Act of 2007,
funded through various vehicle and vessel related surcharges,
requires the California Energy Commission (CEC) to implement
the Alternative and Renewable Fuels and Vehicle Technology
Program (ARFVTP) to provide funding measures to develop and
deploy technologies and alternative and renewable fuels in the
marketplace to help attain the state's climate change
policies. CEC is required to develop an investment plan for
the program in consultation with an advisory committee. An
evaluation of the efforts funded by the ARFVTP that includes
research, development, and deployment efforts funded by this
program is required every two years, beginning in 2011.
3)Under the California Clean Energy Jobs Act (Proposition 39),
requires that $550 million be transferred to the Clean Energy
Jobs Fund for five fiscal years, beginning in 2013, for
appropriation by the Legislature for eligible projects to
improve energy efficiency and expand clean energy generation
in schools. Proposition 39 also creates a Citizen's Oversight
Board to review and assess effectiveness of expenditures from
the fund.
4)Under the Electric Utility Industry Restructuring Act,
authorizes the Public Interest Renewable Energy Program
administered by CEC, to support the operation of existing
renewable facilities as well as the development of new and
emerging renewable technologies.
5)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
SB 189
Page 4
business development, private sector investment and economic
growth.
6)Under the California Green Collar Jobs Act of 2008,
establishes the Green Collar Jobs Council (CGJC) within 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.
7)Establishes the Commission for Economic Development to provide
continuing bipartisan legislative, executive branch and
private sector support and guidance for the best possible
overall economic development of the state.
THIS BILL:
1)States legislative findings relating to clean energy, GHG
emission reductions, and job creation.
2)States that the purpose of this bill is to create a single
independent blue ribbon committee to provide advice to state
agencies on the most effective ways to maximize California's
economic benefits and jobs growth via investments in a
cleaner, low-carbon economy.
3)Establishes the Committee within CalEPA. Specifies that the
Committee be comprised of the following members:
SB 189
Page 5
a) Five members appointed by the Governor and subject to
confirmation by the Senate; and,
b) One member each appointed by the Speaker of the Assembly
and the Senate Committee on Rules.
4)Specifies that each member serve for a four-year term; members
shall not receive per diem or other compensation, but may be
reimbursed for travel expenses. Any member who fails to
attend three Committee meetings in one year shall be removed
from the Committee.
5)Requires the Committee to hold its first meeting on or before
December 1, 2016, and requires that meetings be held quarterly
or at a frequency determined by the Committee.
6)Requires that Committee members have expertise in economic,
financial or policy aspects of clean energy economic growth,
job creation, workforce standards, and employment
opportunities for disadvantaged workers. Specifies that at
least two members appointed by the Governor have experience
working on economic projects in disadvantaged communities.
7)Requires the Committee to "advise state agencies on the most
effective ways to expend clean energy and GHG-related funds
and to implement policies in order to maximize California's
economic and employment benefits," and:
a) Develop guidance for tracking and reporting jobs
outcomes for state clean energy and low-carbon investments
to evaluate jobs outcomes;
SB 189
Page 6
b) Develop guidance to measure the quantity and quality of
jobs created by state investments in clean energy and
low-carbon investments;
c) 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;
d) 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;
e) Provide an annual update to the Governor and the
appropriate policy and fiscal committees of the Legislature
on its activities; and,
f) Consult with the Labor and Workforce Development Agency
and the California Workforce Investment Board (CWIB) when
appropriate.
8)Requires CEC, the Public Utilities Commission (PUC), ARB, and
any other state agency that has received advice from the
Committee 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
advice, guidance, and any recommendations provided by the
Committee. Specifies that this report may be combined with
any other annual report submitted by the agency.
SB 189
Page 7
9)Sunsets the reporting requirements on January 1, 2021.
FISCAL EFFECT: According to the Senate Appropriations
Committee, this bill has the following costs:
1)Increased costs to 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).
2)The bill would require CEC, PUC, 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).
COMMENTS:
1)This bill. According to the author:
Under existing law, there is no state agency responsible
for oversight of job creation or maximizing economic growth
as we set new standards for reducing GHG emissions. AB 32
created the EJAC and the ETAAC to advise ARB? Although
ETAAC may advise ARB on state, regional, national, and
international economic and technological developments
related to GHG emissions reductions, its sole purpose is
not to focus on economic developments.
SB 189
Page 8
This bill would create a blue ribbon committee housed
within CalEPA that is solely focused on the most effective
way to implement clean energy and GHG emissions reduction
policies in order to create more jobs and encourage
economic innovation. The creation of this committee does
not affect existing committees.
1)AB 32. As part of AB 32's direction that ARB adopt a
statewide GHG emissions limit equivalent to 1990 levels by
2020 and adopt regulations to achieve maximum technologically
feasible and cost-effective GHG emission reductions, AB 32
requires ARB to prepare and approve a Scoping Plan at
five-year intervals.
The first Scoping Plan, adopted by ARB in 2008, described the
specific actions ARB and others must take to reduce statewide
GHG emissions to 1990 levels by 2020. Pursuant to AB 32, the
reduction measures identified in the Scoping Plan had to be
proposed, reviewed, and adopted as individual regulations by
January 1, 2011, to become operative beginning on January 1,
2012. According to ARB, a total reduction of 80 million
metric tons (MMT), or 16% compared to business as usual, is
necessary to achieve the 2020 limit. Approximately 78% of the
reductions will be achieved through identified direct
regulations. ARB intends to achieve the balance of reductions
necessary to meet the 2020 limit (approximately 18 MMT)
through a cap-and-trade program that covers an estimated 600
entities.
In May 2014, ARB adopted a Scoping Plan update. The Scoping
SB 189
Page 9
Plan update discusses the objective of achieving an 80%
reduction by 2050 and the need for a midterm target, but does
not propose or adopt a specific target. According to ARB, the
update defines ARB's climate change priorities for the next
five years and sets the groundwork to reach California's
long-term climate goals.
The 2014-15 Budget Act allocates cap-and-trade revenues for
the 2014-15 Fiscal Year and establishes a long-term plan for
the allocation of cap-and-trade revenues beginning in Fiscal
Year 2015-16. The Budget continuously appropriates 35% of
cap-and-trade funds for investments in transit, affordable
housing, and sustainable communities. Twenty-five percent of
the revenues are continuously appropriated to continue the
construction of high-speed rail. The remaining 40% will be
appropriated annually by the Legislature for investments in
programs that include low-carbon transportation, energy
efficiency and renewable energy, and natural resources and
waste diversion. In addition to reducing GHG emissions, 25%
of the proceeds from the GGRF must also go to projects that
provide a benefit to disadvantaged communities, as identified
by the California Environmental Protection Agency (CalEPA). A
minimum of 10% of the funds must be for projects located
within those communities.
In October 2014, CalEPA released its list of disadvantaged
communities based on the California Communities Environmental
SB 189
Page 10
Health Screening Tool (CalEnviroScreen), a tool that assesses
all census tracts in California to identify the areas
disproportionately burdened by and vulnerable to multiple
sources of pollution. Areas identified as disadvantaged by
CalEnviroScreen 2.0 include the majority of the San Joaquin
Valley; much of Los Angeles and the Inland Empire; pockets of
other communities near ports, freeways, and major industrial
facilities such as refineries and power plants; and large
swaths of the Coachella Valley, Imperial Valley and Mojave
Desert.
In his January 5, 2015 Inaugural Address, Governor Brown
announced the following objectives: 1) Increase the amount of
renewable energy used in California from 33% to 50%; 2)
Reduce petroleum use in cars and trucks by up to 50%; and, 3)
Double the efficiency of existing buildings and make heating
fuels cleaner.
1)Jobs and Economic Development Efforts. There are a number of
entities throughout state government designed to increase
workforce and economic development efforts, with a particular
emphasis on emerging technology, green jobs, and the green
economy.
a) GO-Biz: 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 designates 'iHubs' (i.e.,
areas in 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
SB 189
Page 11
venture capitalists. These assets include research parks,
technology incubators, universities, and federal
laboratories.
b) Commission for Economic Development: The commission,
consisting of the Lieutenant Governor as Chairperson, three
members appointed by each the Senate Committee on Rules and
the Assembly Speaker, and 10 members appointed by the
Governor, was established to provide bipartisan
legislative, executive branch and private sector support
and guidance for the best possible overall economic
development of the state.
c) California Workforce Investment Board: CWIB is charged
with developing 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.
d) Green Collar Jobs Council: GCJC was created to address
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
the skills demand from businesses supporting the energy
efficiency and clean energy sectors. GCJC is also 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
SB 189
Page 12
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 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."
2)Suggested amendment. This bill requires the Committee to
advise state agencies on the most effective ways to connect
"disadvantaged communities and other target populations" with
green jobs; however, the bill is not clear what the other
target populations would be. This may create confusion when
the Committee is implementing the bill and could inadvertently
authorize the Committee to focus on groups other than
disadvantaged communities. The committee may wish to amend
the bill to strike out "and other target populations" to
ensure that the Committee's focus remain on disadvantaged
communities.
3)Double referral. This bill was double referred to the
Assembly Committee on Jobs, Economic Development; it passed
out of that committee on June 23 on a vote of 6-2.
REGISTERED SUPPORT / OPPOSITION:
SB 189
Page 13
Support
Alliance for Solar Choice
American Lung Association, California
Audubon California
Azul
Bloom Energy
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
SB 189
Page 14
Sierra Club California
Solar City
Solar Energy Industries Association
Sunrun
Union of Concerned Scientists
Western States Council of Sheet Metal Workers
Opposition
None on file
Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)
319-2092