BILL ANALYSIS Ó SB 189 Page 1 Date of Hearing: August 26, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 189 (Hueso) - As Amended August 17, 2015 ----------------------------------------------------------------- |Policy |Jobs, Economic Development, |Vote:|6 - 2 | |Committee: |and the Economy | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Natural Resources | |6 - 1 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill creates the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) in the Cal EPA Agency to advise state agencies on economic benefits and job growth related to a cleaner, low-carbon economy. Specifically, SB 189 Page 2 this bill: 1)Establishes the Committee within CalEPA. Requires the Committee to consist solely of people with specified expertise comprised of the following seven members: a) Five members appointed by the Governor and subject to confirmation by the Senate. At least two members appointed by the Governor are to have experience working on economic projects in disadvantaged communities. b) One member each appointed by the Speaker of the Assembly and the Senate Committee on Rules. 2)Specifies each member may serve a four-year term; members will 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 will be removed from the Committee. 3)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. 4)Requires the Committee to advise state agencies, develop specified guidance, and provide annual updates to the Governor and Legislature. Requires the Committee to consult with the Labor Workforce and Workforce Development Agency and the California Workforce Investment board, as appropriate. 5)Requires CEC, the Public Utilities Commission (PUC), ARB, and any other state agency that has received advice from the SB 189 Page 3 Committee to submit an annual progress report to the Governor and 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. Sunsets the reporting requirements on January 1, 2021. FISCAL EFFECT: 1)Unknown increased costs, likely in the hundreds of thousands of dollars annually, for CalEPA to house, staff and provide administrative support to the Committee (GF and/or special funds). 2)Increased costs of up to $175,000 for ARB to coordinate with the Committee on Greenhouse Gas Revenue Fund (AB 32 cap and trade revenue) investments (GGRF). 3)Unknown costs, potentially in the hundreds of thousands of dollars annually for state agencies to integrate, as appropriate, the Committee's advice, guidance, and recommendations. 4)Unknown costs, potentially in the hundreds of thousands of dollars annually for the Labor and Workforce Agency and the California Workforce Investment Board to consult with the Committee. 5)Unknown minor costs, likely in the $50,000 range per agency SB 189 Page 4 annually, for the CEC, PUC, ARB and any other state agencies receiving advice from the Committee to report to the Governor and Legislature. COMMENTS: 1)Purpose. According to the author, this bill creates a single independent blue ribbon committee to provide advice to agencies on the most effective ways to maximize California's economic benefits and job creation via actions and investments in a cleaner, low-carbon economy. 2)Background. AB 32 (Núñez-Pavley), Chapter 488, Statutes of 2006, required ARB to 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. In October 2014, CalEPA released its list of disadvantaged communities based on the California Communities Environmental 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 the Los Angeles Area 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 SB 189 Page 5 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. 3)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 including: 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. 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. California Workforce Investment Board (CWIB): 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. SB 189 Page 6 Green Collar Jobs Council (GCJC): 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 demanded by businesses supporting the energy efficiency and clean energy sectors. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081