BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Mark DeSaulnier, Chair
Date of Hearing: June 24, 2009 2009-2010 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 1394
Author: Bass
Version:June 18, 2009
SUBJECT
California Workforce Investment Board: Green Collar Jobs
Council.
KEY ISSUE
Should the Legislature authorize the California Workforce
Investment Board (CWIB) to accept financial resources, from
specified government and private entities, to be used for the
administration and implementation of the Green Collar Jobs
Council's (GCJC) strategic initiative?
Should the Legislature require that the GCJC, in consultation
with specified parties, coordinate the awarding of workforce
training funds received under the federal American Recovery and
Reinvestment Act of 2009 (ARRA)?
PURPOSE
To 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.
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.
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 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.
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.
Hearing Date: June 24, 2009 AB 1394
Consultant: Alma Perez Page 2
Senate Committee on Labor and Industrial Relations
This Bill would make changes to provisions governing the Green
Collar Jobs Council that would, among other things, align the
GCJC's workforce development activities with regional economic
recovery and growth strategies. Specifically, this bill would:
Require that the GCJC collaborate with community
colleges and other educational institutions, registered
apprenticeship programs, business and labor organizations,
community-based and philanthropic organizations to align
workforce development services with strategies for regional
economic development.
Authorize the CWIB, with the highest level of
transparency and accountability by posting information on
their website, 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.
Require the creation of a Green Collar Jobs account
within the State Treasury for the deposit of all revenues
received pursuant to these provisions.
Specify that revenue received by the department pursuant
to these provisions, shall only be expended for the purpose
of awarding training grants implementing the strategic
initiative of the GCJC.
Require that the GCJC, in collaboration with the
department, be responsible for soliciting and reviewing
grant applications, and making grant funding
recommendations to the CWIB. Grants shall be awarded
within 120 days of receipt of any funding for that purpose.
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
Hearing Date: June 24, 2009 AB 1394
Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
and Reinvestment Act of 2009 or any funding sources.
COMMENTS
1. Need for this bill?
A report by the Pew Charitable Trust (The Clean Energy
Economy, June 2009), found that California has the largest
clean energy economy of the 50 states. According to the
report, jobs in this sector grew at a faster rate than total
jobs in the state between 1998 and 2007. In 2007 alone, the
clean energy economy spurred the opening of 10,209 businesses
and 125,390 jobs. In 2008, the California Legislature passed,
and the Governor signed into law, the Green Collar Jobs Act
(AB 3018 Nunez) which created the Green Collar Jobs Council.
The GCJC is required to perform specified tasks to develop a
comprehensive array of programs, strategies, and resources to
address California's growing need for a highly skilled and
well-trained green workforce.
Since the enactment of AB 3018, the GCJC has met several times
and is working to develop a strategic initiative to meet its
tasks. Following the enactment of the American Recovery and
Reinvestment Act of 2009, the GCJC began focusing some of its
attention on opportunities for green collar jobs made possible
as a result of that act. This bill would update the
responsibilities of the GCJC to address opportunities created
by the ARRA and would allow the CWIB to accept revenues to be
used for the administration and implementation of the GCJC's
strategic initiative.
2. Background on the Federal Green Jobs Act of 2007:
The Green Jobs Act of 2007, authored by Representative Hilda
Solis (D-CA) and John Tierney (D-MA), authorized $125 million
per year to create the Energy Efficiency and Renewable Energy
Worker Training Program within the Workforce Investment Act
(WIA). The Green Jobs Act is an initial pilot program to
identify needed skills, develop training programs, and train
workers for jobs in a range of industries - including energy
efficient building and construction, renewable electricity,
Hearing Date: June 24, 2009 AB 1394
Consultant: Alma Perez Page 4
Senate Committee on Labor and Industrial Relations
energy efficient vehicles, and more. The act targets a broad
range of populations for eligibility, but has a special focus
on creating "green pathways out of poverty" for young adults
with barriers to employment, displaced workers, and veterans.
3. Background on the American Recovery and Reinvestment Act of
2009:
The American Recovery and Reinvestment Act of 2009, was signed
into law by President Barack Obama on February 17, 2009. The
Act will provide more than $150 billion to low-income and
vulnerable households, which the federal government believes
will spur increased economic activity that will save and
create more than one million 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.
4. Proponent Arguments :
Proponents of the measure believe that in the near future, the
Green Collar Jobs Council (GCJC) will be a valuable resource
in coordinating and aligning the multiple green workforce and
training efforts underway in California. Proponents argue
that not only do green jobs represent the future of
California's economy, but these efforts will create jobs which
Californians are in need of.
According to the author, with California's unemployment rate
at an all time high of 11%, California needs to develop short
and long term goals to put Californians back to work in jobs
that provide a livable wage. According to the author, under
the federal American Recovery and Reinvestment Act of 2009
Hearing Date: June 24, 2009 AB 1394
Consultant: Alma Perez Page 5
Senate Committee on Labor and Industrial Relations
(ARRA), California is receiving over $400 million in job
training funds to be administered through our existing
workforce infrastructure. The author argues that no time is
greater than now to form partnerships with state agencies,
community colleges, community based organizations, and labor
apprenticeship programs to train a highly skilled and well
trained workforce to meet the needs of California's growing
green economy.
Proponents also argue that as career technical education
programs continue to decline in our schools, career
exploration and training opportunities must be offered and
expanded. This bill, proponents argue, provides another
avenue for meeting that goal by creating key linkages among
education, labor and the economy. In addition, proponents of
the bill support taking action and building partnerships at
the state and local levels to maximize funding from the
federal ARRA in order to provide additional training.
5. Opponent Arguments :
None received to date.
6. Prior Legislation :
AB 3018 (Nunez) of 2008: Chaptered
This bill created the California Green Collar Jobs Council
(CGJC) to perform specified tasks related to addressing the
workforce needs that accompany California's growing green
economy.
SUPPORT
American Federation of State, County and Municipal Employees,
AFL-CIO
California State Association of Counties
California Teachers Association (CTA)
California Workforce Association (CWA)
Pacific Gas and Electric Company (PG&E)
Silicon Valley Toxics Coalition (SVTC)
Hearing Date: June 24, 2009 AB 1394
Consultant: Alma Perez Page 6
Senate Committee on Labor and Industrial Relations
State Building and Construction Trades Council, AFL-CIO
OPPOSITION
None received
* * *
Hearing Date: June 24, 2009 AB 1394
Consultant: Alma Perez Page 7
Senate Committee on Labor and Industrial Relations