BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Mark DeSaulnier, Chair
Date of Hearing: June 23, 2010 2009-2010 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 2696
Author: Bass
Version: As introduced February 19, 2010
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 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.
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,
Hearing Date: June 23, 2010 AB 2696
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Senate Committee on Labor and Industrial Relations
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, may be spent for purposes related to
the administration and implementation of the strategic
initiative, and for the award of workforce training grants
implementing this initiative.
Require that workforce training grants be awarded within
180 days of the date of receipt by the department 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
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
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Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
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 convened for the
first time on February 11, 2009 and has met regularly
thereafter. The GCJC has been working to identify and
facilitate the development of the framework, funding,
strategies, program policies, partnerships and opportunities
necessary to address the needs for a highly skilled and
well-trained workforce in support of California's green
business and economy. The GCJC hopes that through its work,
the Council will serve as a catalyst for the creation of
sustainable regional sector strategies that will be managed
through regional partnerships.
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 is a follow-up to AB 3018(
Nunez) from 2008 and is intended to further the objectives of
the GCJC by providing for the coordination of job training
grants that are funded by government and private sources.
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
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Senate Committee on Labor and Industrial Relations
(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,
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 (ARRA) has
been created to jumpstart our economy by preserving and
creating jobs and promoting economic recovery. The ARRA has
provided more than $150 billion to low-income and vulnerable
households, which the federal government hoped would spur
increased economic activity that could save and create more
than one million jobs. An aspect of the ARRA was 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, were 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
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Senate Committee on Labor and Industrial Relations
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 the unemployment rate at an
unprecedented 12.6%, 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, we have a
unique opportunity to make an investment in our existing
workforce training infrastructure, especially with the help of
the federal ARRA money that California received. 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 workforce to meet the needs of California's
growing green economy.
The author cites a report by Next 10, titled "California Green
Innovation Index 2009," which states that since 2005 the green
collar job sector has grown by 10% and business establishments
by 2%, while job growth in other sectors has only been 1%.
The author argues that with the infusion of federal economic
stimulus funds, California stands to create thousands of jobs
in energy efficiency building retrofits, green building, solar
installation and green technology. The author believes that
the time is now to develop the much needed workforce training
partnerships to better serve Californians.
5. Opponent Arguments :
None received to date.
6. Prior Legislation :
AB 1394 (Bass) of 2009: Vetoed by the Governor
This bill is similar to AB 1394 (Bass) of last year. AB 1394
would have made changes to the provisions governing the Green
Collar Jobs Council that would have placed additional
requirements on the council and would have created a mechanism
for the receipt of funds from specified state and federal
resources. In addition, AB 1394 would have added the
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Consultant: Alma Perez Page 6
Senate Committee on Labor and Industrial Relations
Department of Industrial Relations as a member of the GCJC.
In his veto message, the Governor stated that:
"This bill is unnecessary. The Employment Development
Department currently administers all funding for grants and
workforce initiatives with Workforce Investment Act funds.
Further, it is inappropriate to include the DIR as a member of
the GCJC as they are not currently a member of the CWIB. The
GCJC already has the authority to consult with DIR as needed."
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
Plug In America
OPPOSITION
None received to date.
* * *
Hearing Date: June 23, 2010 AB 2696
Consultant: Alma Perez Page 7
Senate Committee on Labor and Industrial Relations