BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Mark DeSaulnier, Chair
Date of Hearing: July 8, 2009 2009-2010 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 3
Author: V. Manuel Perez
Version: June 1, 2009
SUBJECT
Workforce development: Renewable Energy Workforce Readiness
Initiative.
KEY ISSUE
Should the Legislature provide the California Workforce
Investment Board (CWIB) with additional guidance on how to
prepare California for renewable energy workforce opportunities?
PURPOSE
To establish an initiative to address California's renewable
energy opportunities.
ANALYSIS
Under existing federal law, the Green Jobs Act of 2007
authorizes $125 million per year to create the Efficiency and
Renewable Energy Worker Training Program, as an amendment to the
Workforce Investment Act (WIA), in order to identify needed
skills, develop training programs, and train workers for jobs in
a range of industries - including energy efficient building,
construction and retrofits, renewable electric power, energy
efficient vehicles, biofuels, and manufacturing that produces
sustainable products and uses sustainable processes and
materials. The Act is administered by the United States
Department of Labor.
Under existing federal law , the American Recovery and
Reinvestment Act of 2009 (ARRA) has been created to jumpstart
our economy by preserving and creating jobs and promoting
economic recovery. The ARRA aims to stabilize State and local
government budgets, in order to minimize and avoid reductions in
essential services and counterproductive state and local tax
increases. The ARRA aims to revive the renewable energy
industry by creating a competitive training grant program for
worker training and placement in green jobs. An aspect of the
ARRA is focused on reviving the renewable energy industry by
providing capital over the next three years to eventually double
domestic renewable energy capacity. Included in the ARRA, are
funds appropriated for a program of competitive training grants
for worker training and placement in green jobs and high growth
and emerging industry sectors, with emphasis on careers in
energy efficiency and renewable energy. The ARRA has
appropriated $750 million for this competitive grant program and
specifies that $500 million be used for research, labor exchange
and job training projects that prepare workers for Green Jobs or
careers in energy efficiency and renewable energy.
Under existing state law, the California Workforce Investment
Board (CWIB) is charged with developing a comprehensive
workforce development plan for the State as described in the
Workforce Training Act of 2008 and the Workforce Investment Act
of 1998. The CWIB is responsible for assisting the Governor in
the development, oversight and continuous improvement of
California's workforce investment system. The CWIB is comprised
of many facets of workforce development including business,
labor, public education, higher education, economic development,
youth activities, employment and training, as well as the
Legislature.
Existing law authorizes the Governor to designate Local
Workforce Investment Areas (LWIAs) based on population and
commonality of labor markets. Currently, there are 49 LWIAs.
Each LWIA is administered by a Local Workforce Investment Board
(LWIB) certified by the state in partnership with local elected
officials. LWIBs are comprised of representatives from private
sector businesses, organized labor, community-based
organizations, local government agencies, and local education
Hearing Date: July 8, 2009 AB 3
Consultant: Alma Perez Page 2
Senate Committee on Labor and Industrial Relations
agencies. LWIBs provide, among other things, policy guidance
and oversee the job training activities within their local
areas.
Under existing state law , the Green Collar Jobs Act established
the Green Collar Jobs Council (GCJC) under the purview of the
California Workforce Investment Board (CWIB). Existing law
requires that the GCJC perform certain functions and duties,
including the development of a strategic initiative, relating to
the training and development of a skilled workforce to meet the
needs of California's emerging green economy. As part of
developing the GCJC's strategic initiative, the Council must
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.
This Bill would require the California Workforce Investment
Board (CWIB), in consultation with the Green Collar Jobs Council
(GCJC), to establish a Renewable Energy Workforce Readiness
Initiative, as specified. Specifically, this bill would:
Require the establishment of the Renewable Workforce
Readiness Initiative by January 1, 2011 to ensure green
collar career placement and advancement opportunities
within California's renewable energy generation,
manufacturing, construction, installation, maintenance, and
operation sectors.
Require the initiative to provide guidance to the local
workforce investment boards on how to establish
comprehensive green collar job assessment, training, and
placement programs that reflect the local and regional
economies and to develop strategies to best utilize moneys
provided under the American Recovery and Reinvestment Act
of 2009.
Specify that any strategies developed by the Initiative
shall address how to effectively provide outreach,
assessment, training, and placement to prospective worker
Hearing Date: July 8, 2009 AB 3
Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
populations, including those that have historically faced
barriers to employment, as specified.
Require the Initiative to provide guidance on how to
engage target populations and evaluate potential
applicants' abilities to implement and operate renewable
energy workers training programs.
Require the Initiative to address how local workforce
investment boards can effectively collaborate and shall
include the participation of all the following entities:
o Nonprofit organizations;
o Local governments;
o State-approved apprenticeship programs;
o Community colleges;
o Postsecondary educational institutions;
o Local workforce training partnerships and
collaboratives;
o Regional occupational programs (ROP).
Require the Initiative to further address how local
workforce investment boards can prioritize programs that
serve prospective workers who have historically faced
barriers to employment. The bill provides several examples
of guidelines for such programs.
Require the CWIB to collect and analyze labor market
data, track workforce trends, document academic and
occupational competencies, identify future skills 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, in the Department of Industrial elations,
related to renewable energy and workforce development in
California.
Require the CWIB, in developing the Initiative, to
assist the local workforce investment boards in collecting
and analyzing labor market data, in order to assess
accurate local or regional industry cluster workforce
development and training needs.
Hearing Date: July 8, 2009 AB 3
Consultant: Alma Perez Page 4
Senate Committee on Labor and Industrial Relations
Require the CWIB to submit to the Legislature, no later
than January 1, 2013, a report on the implementation of the
Initiative, as specified.
Require the CWIB to implement the initiative using
moneys made available to the board from funds appropriated
to the sate pursuant to the American Recovery and
Reinvestment Act of 2009, to the extent that these funds
are available for that purpose.
Makes several findings and declarations pertinent to
California's renewable energy opportunities.
COMMENTS
1. Background and Staff Question:
Green jobs are generally defined as jobs that provide products
and services which use renewable energy resources, reduce
pollution, conserve energy and natural resources, and
reconstitute waste. In 2008, the Governor signed into law AB
3018 (Nunez), which established the Green Collar Jobs Council
(GCJC) within the California Workforce Investment Board
(CWIB). The GCJC is charged with developing a strategic
initiative 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 GCJC is required to
do the following:
Assist in identifying and linking green collar job
opportunities with workforce development training
opportunities in the various regions of the state.
Create public, private, and nongovernmental partnerships
to build and expand the state's workforce development
programs, network, and infrastructure.
Hearing Date: July 8, 2009 AB 3
Consultant: Alma Perez Page 5
Senate Committee on Labor and Industrial Relations
Establish 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.
Develop statewide and regional labor market data on
California's new and emerging green industries workforce
needs, trends, and job growth.
Identify funding resources and make recommendations on
how to expand and leverage these funds.
Foster regional collaboratives in the green economic
sector.
Since the enacted of AB 3018, the GCJC has met several times
and is working to develop its strategic initiative as
required. AB 1394 (Bass) of this year, previously heard by
this Committee, is a follow-up measure to AB 3018 and if
passed and signed into law would, among other things,
authorize the California Workforce Investment Board (CWIB) to
accept any revenues, money, grants, goods, or services from
federal and state entities, philanthropic organizations, and
other sources, to be used for the administration and
implementation of the GCJC's strategic initiative. AB 1394
would also require the GCJC to consult with the appropriate
state and local agencies to identify opportunities to
coordinate the award of grant and green workforce training
funds received by the state under the federal American
Recovery and Reinvestment Act of 2009 or any funding sources.
This bill would require the California Workforce Investment
Board (CWIB), in consultation with the Green Collar Jobs
Council (GCJC), to establish a Renewable Energy Workforce
Readiness Initiative that aims at ensuring green collar career
placement and advancement opportunities within California's
renewable energy generation, manufacturing, construction,
installation, maintenance, and operation sectors. This bill
would also provide guidance to local workforce investment
boards on, among other things, board participation and program
selection.
Given what is currently required of the GCJC, are certain
parts of this bill necessary?
Hearing Date: July 8, 2009 AB 3
Consultant: Alma Perez Page 6
Senate Committee on Labor and Industrial Relations
2. Proponent Arguments :
According to the author, California has been facing a high
unemployment rate that has continued to go up as the nation's
economy suffers. Proponents argue that California is
fortunate to have some of the finest solar, wind, and
geothermal resources in the world giving California the
opportunity to lead the nation in the development of renewable
energy technologies and the creation of green collar jobs.
The author argues that although renewable energy technology
and job growth potential exists in California, a program to
ensure workforce development in the Green Economy does not yet
exist. The author contends that lacking a trained/skilled
workforce in an underutilized local renewable energy market is
a problem, and believes that this bill will ensure green
collar career placement and advancement opportunities within
California's renewable energy sectors.
Proponents argue that urban and rural regions in the state
possess tremendous potential for renewable energy generation
but are also, unfortunately, riddled with poverty and
extremely high unemployment rates. According to the author,
this bill will create the Renewable Energy Workforce Readiness
Initiative which is meant to target specific populations such
as low-income and disadvantaged populations, at-risk youth,
displaced and incumbent workers in transition, veterans of
past or present service, and other struggling populations that
are unemployed in today's struggling economy. Proponents argue
that this bill will greatly impact our communities by allowing
our local people to be trained and work-ready for this new and
emerging industry.
3. Opponent Arguments :
None received to date.
4. Prior and Related Legislation :
AB 3018 (Nunez) of 2008: Chaptered
This bill established the Green Collar Jobs Council (GCJC),
within the CWIB, to perform specified tasks related to
Hearing Date: July 8, 2009 AB 3
Consultant: Alma Perez Page 7
Senate Committee on Labor and Industrial Relations
addressing the workforce needs that accompany California's
growing green economy. Specifically, this bill requires the
GCJC to develop a strategic initiative 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.
AB 1394 (Bass) of 2009: Currently in Senate Appropriations
Committee
This bill would make changes to provisions governing the Green
Collar Jobs Council that would place additional requirements
on the council and create a mechanism for the receipt of funds
from specified state and federal resources. AB 1394 is a
follow up measure to AB 3018 from last year.
AB 380 (De La Torre) of 2009: Held in Assembly Appropriations
Committee
This bill would enact the California Clean Energy Curriculum
and Training Initiative of 2009, which would require the Labor
and Workforce Development Agency, by July 1, 2010, to
establish standardized curriculum for the 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.
SUPPORT
Ella Baker Center for Human Rights - Sponsor
American Federation of State, County and Municipal Employees,
AFL-CIO
American Legion, Department of California
CalEnergy Operating Corporation
Calexico Community Action Council, Inc.
California Council for Environmental and Economic Balance
California State NAACP
Center for Employment Training, Coachella Valley Center
Center for Employment Training, El Centro Center
City of Calexico New River Committee
City of Oakland
Hearing Date: July 8, 2009 AB 3
Consultant: Alma Perez Page 8
Senate Committee on Labor and Industrial Relations
Comit? C?vico del Valle
El Centro Chamber of Commerce & Visitors Bureau and the Brawley
Chamber of Commerce
Imperial County Board of Supervisors
Imperial County Building & Construction Trades Council
Imperial Valley College
Imperial Valley Regional Occupational Program
Indio Chamber of Commerce Brd. of Directors and Governmental
Affairs & Public Policy Com.
Long Beach City College (LBCC)
Oakland Workforce Investment Board
Planned Parenthood of San Diego and Riverside Counties
Plumbers & Pipefitters Local Union #230
School for Integrated Academics and Technologies
Solar Millennium
State Building and Construction Trades Council, AFL-CIO
SunEco Energy, Inc.
The Institute for Socio-Economic Justice
OPPOSITION
None received to date.
* * *
Hearing Date: July 8, 2009 AB 3
Consultant: Alma Perez Page 9
Senate Committee on Labor and Industrial Relations