BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 3
                                                                  Page  1

          Date of Hearing:   April 22, 2009

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                              William W. Monning, Chair
                 AB 3 (V. Manuel Perez) - As Amended:  April 13, 2008
           
          SUBJECT  :   Renewable energy workforce readiness initiative.

           SUMMARY  :   Requires the establishment of the Renewable Energy  
          Workforce Readiness Initiative, as specified.  Specifically,  
           this bill  :  

          1 Requires the California Workforce Investment Board (CWIB), by  
            2011, to establish a Renewable Energy Workforce Training  
            Initiative (Initiative) to ensure green collar job placement  
            and advancement opportunities within California's renewable  
            energy manufacturing, construction, installation, maintenance  
            and operation sectors.

          2)Specifies that the Initiative shall be targeted at all of the  
            following populations:

             a)   Low-income and disadvantaged populations.

             b)   At-risk youth.

             c)   Formerly incarcerated nonviolent offenders.

             d)   Displaced and incumbent workers in transition.

             e)   Veterans of past or present military service.

          3)Requires the Initiative to award "workforce training grants,"  
            on a competitive basis, to applicants that can identify and  
            involve target worker populations and demonstrate the ability  
            to implement and operate renewable energy worker training and  
            education programs in California.

          4)Specifies that eligible applicants may include the following:

                      a)            Nonprofit organizations.

                      b)            Local governments.

                      c)            State-approved apprenticeship  








                                                                  AB 3
                                                                  Page  2

                        programs.

                      d)            Community colleges.

                      e)            Postsecondary educational  
                        institutions.

                      f)            Local workforce training partnerships  
                        and collaboratives.

                      g)            Regional occupational programs.

          5)Requires the Initiative, in evaluating an application for a  
            grant, to assign higher priority to an application that  
            satisfies one or more of the following criteria:

             h)   Serves individuals in families with incomes less than  
               250 percent of the federal poverty level.

             i)   Includes collaboration with community-based nonprofit  
               organizations, labor organizations, state-approved  
               apprenticeship programs and educational institutions with  
               expertise in serving low-income adults or youth.

             j)   Links adult remedial education with occupational skills  
               training.

             aa)           Ensures that supportive services are integrated  
               with education and training, and delivered by organizations  
               with direct access to and experience with targeted  
               populations.

             bb)           Involves employers and labor organizations in  
               the determination of relevant skills and competencies,  
               ensuring that the certificates or credentials that result  
               from the training are recognized by employers and labor  
               organizations.

             cc)           Leverages additional public and private  
               resources to fund readiness programs, including cash or  
               in-kind matches from participating employers, nonprofits,  
               or labor organizations.

          6)Requires the CWIB to collect and analyze labor market data,  
            track workforce trends, document academic and occupational  








                                                                  AB 3
                                                                  Page  3

            competencies, identify future skill needs, promote and support  
            local workforce training initiatives, and provide technical  
            assistance and capacity building to energy partnerships and  
            apprenticeship training programs that are approved by the  
            Division of Apprenticeship Standards related to renewable  
            energy and workforce development in California.

          7)Requires the Initiative to report to the Legislature on the  
            implementation of these requirements no later than January 1,  
            2012.

          8)Provides that these requirements shall be implemented using  
            moneys appropriated from an unspecified fund to be  
            established.

          9)Makes related legislative findings and declarations.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :

          This measure is sponsored by the author, who states the  
          following in support of the bill:

               "As of February 2009, California has a 10.5% unemployment  
               rate. Every county with double digit unemployment rates in  
               the State of California are rural counties or have  
               significant rural areas. Many of these rural communities  
               are primed for a green economy.

               An analysis performed in 2006 by the Renewable Energy  
               Policy Project looked at the employment gains throughout  
               the U.S. and ranked California No. 1 with over 5,000 firms  
               capable of manufacturing the necessary components for green  
               facilities and infrastructure. When at 33 percent Renewable  
               Portfolio Standard (RPS), if California were to service,  
               operate, and maintain local facilities/infrastructure; as  
               well as manufacture components and have a transmission  
               system to export energy to other states, it could maximize  
               their potential to create jobs.

               In the 80th Assembly District, renewable energy production  
               alone has the potential in the next 6-8 years to create up  
               to 8,000 new permanent jobs and another 86,000 temporary  
               construction jobs associated with this industry in Imperial  








                                                                  AB 3
                                                                  Page  4

               County alone.

               A barrier to renewable energy and energy-efficiency growth,  
               in the State of California, is a shortage of a skilled and  
               trained workforce, according to the National Renewable  
               Energy Laboratory. In the United States, community  
               organizations have promoted the idea that green collar  
               employment offers a "pathway out of poverty" for  
               individuals in economically depressed or marginalized  
               Areas.

               Impoverished areas can often have difficulty gaining access  
               to apprenticeship programs for skilled trades. We are  
               currently at a time when skilled workers are aging and  
               shortages of skilled workers are becoming a major concern  
               for employers and so we need to aide existing organizers to  
               bridge the gap?
          
               ?With the availability of new energy efficient and  
               renewable energy technology available for energy generating  
               facilities, greener energy facilities will be built in CA.  
               The need for properly trained workers will be in high  
               demand and there are currently thousands of unemployed  
               residents in CA that need jobs?

               ?The initiative is geared to target and involve populations  
               that are considered low-income, disadvantaged populations,  
               at-risk youth, displaced and incumbent workers in  
               transition, and veterans of past or present military  
               service."

           PRIOR AND RELATED LEGISLATION  :

          AB 3018 (Nunez) from last session established the Green Collar  
          Jobs Council (GCJC) within the California Workforce Investment  
          Board (CWIB).

          AB 3018 specified that the GCJC is comprised of the appropriate  
          representatives from the CWIB's existing membership, including  
          the K-12 representative, the California Community Colleges  
          representative, the Business, Transportation and Housing Agency  
          representative, the Employment Development Department  
          representative, and other appropriate members. 

          AB 3018 also required the GCJC to develop a strategic initiative  








                                                                  AB 3
                                                                  Page  5

          to identify and develop 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. 

          The bill required the GCJC to do all of the following:

               (1) Assist in identifying and linking green collar job  
               opportunities with workforce development training  
               opportunities in local workforce investment areas (LWIAs),  
               encouraging regional collaboration among LWIAs to meet  
               regional economic demands.

               (2) Develop public, private, philanthropic, and  
               nongovernmental partnerships to build and expand the  
               state's workforce development programs, network, and  
               infrastructure.

               (3) Provide policy guidance for job training programs in  
               the clean and green technology sectors to assist and  
               prepare specific populations, such as at-risk youth,  
               displaced workers, veterans, formerly incarcerated  
               individuals, and others facing barriers to employment.

               (4) Develop, collect, interpret, and distribute statewide  
               and regional labor market data on California's new and  
               emerging green industries workforce needs, trends, and job  
               growth.

               (5) Identify funding resources and make recommendations on  
               how to expand and leverage these funds.

               (6) Foster regional collaboratives in the green economic  
          sector.

          Since the enactment of AB 3018, the GCJC has met several times  
          and is working to develop the strategic initiative discussed  
          above.  Following the enactment of the American Recovery and  
          Reinvestment Act of 2009, the GCJC has been focusing some of its  
          attention on opportunities for green collar jobs made possible  
          as a result of that act.

          AB 1394 (Bass) from this year is a follow-up measure to AB 3018.  
           Among other things, AB 1394 authorizes the GCJC to accept any  








                                                                  AB 3
                                                                  Page  6

          revenues, moneys, grants, goods, or services from federal and  
          state public entities, local philanthropic organizations, and  
          other sources, to be used for purposes relating to the  
          administration and implementation of a strategic initiative the  
          GCJC is required to develop.  AB 1394 also requires the GCJC to  
          confer with the appropriate state and local agencies to  
          coordinate the award of grant funds and green workforce training  
          funds received by the state under the federal American Recovery  
          and Reinvestment Act of 2009.

          AB 380 (De La Torre) from this year proposes to enact the  
          California Clean Energy Curriculum and Training Initiative of  
          2009.  That measure requires the Labor and Workforce Development  
          Agency (Labor Agency), by July 1, 2010, to establish  
          standardized curriculum for use at schools and to provide  
          outreach, assistance, and guidance to schools on creating clean  
          energy training programs.  AB 380 is similar to AB 2224 (De La  
          Torre) from last session, which was held under submission in the  
          Senate Committee on Appropriations.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Legion, Department of California
          CalEnergy Operating Corporation
          Calexico Community Action Council
          Calexico New River Committee
          California Council for Environmental and Economic Balance
          Center for Employment Training (Coachella Valley)
          Center for Employment Training (El Centro)
          Comite Civico del Valle
          El Centro Chamber of Commerce and Visitors Bureau
          Ella Baker Center for Human Rights
          Imperial County Board of Supervisors
          Imperial County Building and Construction Trades Council
          Imperial Valley College
          Imperial Valley Regional Occupational Program
          Institute for Socio-Economic Justice and Progressive Community  
          Development
          Planned Parenthood of San Diego and Riverside Counties
          Plumbers & Pipefitters Local Union 230
          Solar Millennium, LLC
          State Building and Construction Trades Council
          Sunecor Energy, Inc.








                                                                  AB 3
                                                                  Page  7



           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091