BILL ANALYSIS                                                                                                                                                                                                    �






                          SENATE COMMITTEE ON EDUCATION
                              Alan Lowenthal, Chair
                      2011-2012 First Extraordinary Session
                                         �

          BILL NO:�       SBX1 1
          AUTHOR:�        Steinberg
          INTRODUCED:�    February 1, 2011
          FISCAL COMM:�   Yes            HEARING DATE:�  February 16, �
          2011
          URGENCY�:       No             CONSULTANT:�Beth Graybill

          NOTE:�  This bill is scheduled to be heard by the Energy, �
          Utilities, and Communications Committee on February 15, 2010. �
           Amendments agreed to in that committee may be taken in the �
          Senate Education Committee for purposes of expediting the �
          review of this legislation during the First Extraordinary �
          Session.   

           SUBJECT  :�  Career Technical Education:  Partnership academies.
          
          �  SUMMARY�   

          This bill establishes the Clean Technology and Renewable �
          Energy Job Training, Career Technical Education, and Dropout �
          Prevention Program for the purpose of creating California �
          Partnership Academies that focus on clean technology and �
          renewable energy businesses, as specified.  

           BACKGROUND�  

          Existing law establishes California Partnership Academies �
          (CPAs) as a state-school-private sector partnership programs �
          that provide combined academic and occupational training �
          programs to high school pupils in grades 10-12 inclusive who �
          present a high risk of dropping out of school and motivating �
          those pupils to stay in school and graduate.  (Education Code �
          � 54690 et. seq.)

          Existing law provides a state-funded grant program to support �
          the planning, establishment, and maintenance of partnership �
          academies and encourages the establishment of academies whose �
          occupational fields address the needs of developing �
          technologies.  (EC � 54691)

          Existing law establishes, commencing with the 2009-10 school �
          year, Green Technology Partnership Academies and Goods �



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          Movement Partnership Academies, and requires, when funds �
          become available, the Superintendent of Public Instruction �
          (SPI) to issue grants for the establishment of these specific �
          categories of partnership academies in each of the nine �
          economic regions established by the state.  (EC � 54750)
           ANALYSIS�  

           This bill  :

          1)   Makes findings and declarations regarding California's �
               leadership in renewable energy, energy conservation, �
               clean technology and climate change policies; the value �
               of career technical education programs in keeping pupils �
               engaged in school and on track toward graduation; the �
               benefits of investing in programs that will prepare �
               students for further education and employment in �
               industries that focus on renewable energy, energy �
               conservation, clean technologies, and climate change �
               mitigation, create employment opportunities for �
               Californians, and help the state to achieve its climate �
               change goals.  The bill states that California has the �
               opportunity to curtail high school dropout and �
               joblessness rates its young people and to develop the �
               state's renewable energy resources.  

          2)   States legislative intent to stimulate the state's �
               economy by creating partnership academies that will lead �
               to the creation of good paying jobs in industries and �
               businesses that are in compliance with the state's �
               environmental protection laws and regulations and to �
               prepare young people and adults to work in clean, green �
               industries and professions in jobs that would help �
               California achieve its climate change mitigation �
               obligations and conserve our state's vital resources of �
               water, air quality, land, and energy.  

          3)   Declares that the State Energy Resources Conservation �
               and Development Commission (Energy Commission) is �
               currently authorized to increase the amount of the �
               existing surcharge imposed on the consumption of �
               electrical energy and expresses the intent of the �
               Legislature that if the Energy Commission takes such �
               action, the resulting funds would be available to fund �
               academies established pursuant to this act.  

          4)   Defines "clean technology business" and "renewable �
               energy business".  



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          5)   Requires the State Controller to annually allocate $8 �
               million dollars from the Energy Resources Program �
               Account (ERPA), upon appropriation by the Legislature, �
               to the Superintendent of Public Instruction (SPI) for �
               expenditure in the form of grants to school districts.  �
               Authorizes up to 5% of the funds transferred to the SPI �
               pursuant to this bill to be expended to pay �
               administrative costs of the program.

          6)   Requires a school district applying for a grant pursuant �
               to this act to meet existing partnership academy program �
               requirements and propose to implement or maintain an �
               academy that focuses on employment in clean technology �
               or renewable energy businesses and provides skilled �
               workforces for the products and services for energy or �
               water conservation, or both, renewable energy, pollution �
               reduction, or other technologies that improve the �
               environment in furtherance of state environmental laws.  �



          7)   Requires the SPI to review, in consultation with the �
               Energy Commission, grant applications submitted by �
               school districts and likewise review ongoing programs to �
               ensure those programs are consistent with current state �
               energy policies and priorities.  

          8)   Requires the Energy Commission, in consultation with �
               California Department of Education (CDE), to develop �
               guidelines to ensure that programs receiving grants �
               reflect current state energy policies and priorities and �
               will provide skills and education linked to the needs of �
               relevant industries.  Requires the Energy Commission to �
               comply with specified public notice requirements in �
               adopting or amending the guidelines and exempts the �
               guidelines from review by the Office of Administrative �
               Law.  
           
          9)   Requires the SPI in awarding the grants to give first �
               priority to school districts that propose to establish a �
               CPA at school sites that do not currently participate in �
               the CPA program and second priority to school districts �
               that would establish partnership academies at school �
               sites that do not participate in the green CPA program.  �





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          10)  Requires the SPI to allocate grants for the clean �
               technology and renewable energy CPAs as follows:  

               a)        $1,000 per year for each qualified student �
                    enrolled in grade 9 in an academy during the first �
                    year of that academy's operation and limits the �
                    total grant amount for the first year to no more �
                    than $45,000;  

               b)        $1,000 per year for each qualified student �
                    enrolled in either grade 9 or 10 in an academy �
                    during the second year of operation and limits the �
                    total grant amount for the second year to no more �
                    than $80,000;  

               c)        $1,000 for each qualified student enrolled in �
                    any of grades 9 to 11, inclusive, in an academy �
                    during the third year of that academy's operation, �
                    and limits the total grant amount for the third �
                    year to no more than $120,000; and, 

               d)        $1,000 for each qualified student enrolled in �
                    any of grades 9 to 12, inclusive, in an academy �
                    during the fourth and following years of operation �
                    and limits the total grant amount to no more than �
                    $150,000 to any one academy for each fiscal year.  

          11)  Stipulates that a "qualified student" has the same �
               meaning as described in statutory provisions governing �
               the CPAs but shall also include a 9th grade student who �
               meets the at-risk criteria specified in Section 54690 of �
               the Education Code, who is enrolled in an academy for �
               the 9th grade, obtains 90 percent of the credits each �
               academic year in courses that are required for �
               graduation, and successfully completes a school year �
               during 9th grade with an attendance record of not less �
               than 80 percent.  


          12)  Authorizes the SPI to award a grant to a school district �
               that has received a grant under the existing CPA program �
               subject to the provisions of this bill and the �
               availability of funds.  

          13)  Requires the SPI to encourage school districts that �
               receive grants pursuant to this bill to work and �
               coordinate with regional occupational centers and �



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               programs (ROC/Ps) for the required career technical �
               education (CTE) sequence of courses.  

          14)  Requires the SPI, in consultation with the Energy �
               Commission, commencing January 1, 2013 and each year �
               thereafter that the article is operative, to provide a �
               report to the Legislature that includes, but is not �
               limited to, a description of the curriculum and �
               substance of the programs funded by grants awarded.  �
               Requires the first annual report to include the �
               identification of gaps in available curricula relating �
               to clean technology and renewable energy that are �
               consistent with current state energy policy and �
               priorities.  Requires, commencing in 2014, the report to �
               also include pupil participation data and data collected �
               for purposes of academy certification.  

          15)  Makes the provisions of this bill inoperative on June �
               30, 2017, and repeals them as of January 1, 2018, unless �
               a later enacted statute that becomes operative on or �
               before January 1, 2018, deletes or extends this date.  

          16)  States that the act addresses the fiscal emergency �
               declared and reaffirmed by the Governor by proclamation �
               on January 20, 2011.   

           STAFF COMMENTS�  

           1)   Need for the bill  .  According to the author's office �
               activities relating to reducing energy consumption and �
               developing green technologies are creating new job �
               opportunities and workforce demands.  By creating �
               integrated programs of study that will train students to �
               work in these fields, the author hopes this bill will �
               help meet workforce demands for clean energy and �
               technology industries while also reducing high school �
               dropout rates.  The purpose of this bill is to create a �
               dedicated funding stream through 2016-17 to support the �
               establishment of partnership academy programs that will �
               prepare students for further study and employment in the �
               growing job sectors of clean technology and renewable �
               energy.  

           2)   Partnership academies  .  Partnership academies are �
               educational programs that provide integrated academic �
               and career technical education to students in grades �
               10-12 inclusive who present a high risk of dropping out �



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               of school.  (Partnership academies are funded as �
               three-year programs, although some school districts �
               operate four-year programs, allowing for the �
               participation of 9th graders.)  More than half of the �
               students selected to participate in a CPA must be �
               considered to be "at risk" as demonstrated by irregular �
               attendance, underachievement, low motivation or �
               disinterest in the regular academic program, or having �
               an economically disadvantaged background.  


               Partnership academies are structured as schools within a �
               school and develop in response to regional workforce and �
               economic needs, typically focusing on one of the 15 �
               industry sectors identified in the California Career �
               Technical Education Model Curriculum Standards adopted �
               by the State Board of Education.  The curriculum of an �
               academy is focused on a career theme and is coordinated �
               with related academic classes.  Key elements of a �
               partnership academy include business partnerships, �
               teacher teams, mentoring, and internships.  Students are �
               matched with mentors in their junior year and typically �
               begin an internship after completing their junior year.  �
               According to the CDE, there are currently 461 �
               Partnership Academies operating in California schools.  

           3)   Student engagement and dropout prevention  .  The �
               California Dropout Research Project released a report �
               entitled, "Solving California's Dropout Crisis" which �
               estimated that only about two-thirds of California's �
               students graduate on time.  According to the report, �
               dropping out and low achievement have many shared causes �
               such as poor attendance, low engagement and low-quality �
               instruction.  One of the recommendations in the report �
               suggested that the state should consider more options �
               for students to meet the graduation requirements, noting �
               that "An increasing number of states have pursued the �
               idea of multiple pathways for students to meet high �
               school graduation requirements through career and �
               technical education courses."  

          Many high schools are working toward personalizing the �
               learning experience through small learning communities �
               or career-themed programs of study, such as partnership �
               academies, that provide a rigorous and relevant �
               curriculum focused on preparing students for work and �
               further study beyond high school.  A 2007 Profile of �



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               Partnership Academies prepared by the California Center �
               for College and Career and the Career Academy Support �
               Network at the University of California Berkeley in �
               collaboration with the CDE indicates that partnership �
               academies have a positive effect on increasing student �
               performance and graduation rates.  The study also showed �
               that the graduation rate for partnership academy seniors �
               during the 2004-05 school year was higher than the �
               statewide population, and that CPA students passed the �
               high school exit exam at higher rates than did the �
               general student population.  To the extent that this �
               bill would enable school districts to establish new �
               academies, this bill could help schools increase student �
               engagement and reduce dropout rates while addressing �
               workforce demands that will be driven by emerging clean �
               technology and green industries.  

           4)   Related efforts  .  AB 2855 (Hancock, Chapter 685, �
               Statutes of 2008), established, commencing with the �
               2009-10 school year, Green Technology Partnership �
               Academies and Goods Movement Partnership Academies as �
               new categories of partnership academies.  




               AB 519 (Assembly Budget Committee, Chapter 757, Statutes �
               of 2008), appropriated $12 million from the Public �
               Interest Research Development and Demonstration Fund for �
               transfer to the CDE for expenditure in one-time funds �
               for local grants to be allocated over three years for �
               the creation of partnership academies that focus on �
               clean technology, renewable energy, pollution reduction, �
               and other "green" environmental technologies.  

               The CDE reports there are currently 54 green technology �
               academies funded through AB 519.  According to the CDE, �
               AB 519 funding sunsets June 30, 2012, with funding for �
               the first cohort of 38 green academies ending 2011.  

               Conceivably, partnership academies that stand to lose �
               their funding when AB 519 funds expire could apply for �
               funds this act would make available.  However, it is not �
               clear if the priority language contained in the bill �
               would allow AB 519 partnership academies to participate �
               in this program.  To allow these existing clean �
               technology and energy academies to apply for funding �



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               that could be available after the initial priorities are �
               met, the Committee may wish to consider an amendment �
               that would add a third priority to allow partnership �
               academies established pursuant to AB 519 to apply for �
               and receive a grant award through the Clean Technology �
               and Renewable Energy Job Training, Career Technical �
               Education, and Dropout Prevention Program.�  

           5)   Fiscal and administrative effect  .  The Energy Resources �
               Program Account (ERPA) is funded from a surcharge on �
               rate payers and provides funding for the administration �
               of the Energy Commission.  The Governor's 2011-12 Budget �
               proposes approximately $70.3 million for the ERPA, of �
               which approximately $8 million would be available for �
               supporting the establishment of the partnership �
               academies specified in this bill.  Of the $8 million, �
               this bill provides up to $400,000 to the CDE for costs �
               associated with administering the program and meeting �
               the reporting requirements.  

          To the extent the annual report provides meaningful data, the �
               reporting requirement imposed on the SPI and the Energy �
               Commission could allow the Legislature to consider �
               whether funding for the program should be extended �
               beyond the sunset date.  

           6)   Prior legislation  .  This bill is substantially similar �
               to SB 675 (Steinberg, 2010), which would have allocated �
               funds from the ERPA to the California Department of �
               Education for developing and maintaining programs that �
               focus on training and employment in clean technology and �
               renewable energy industries.  SB 675 was vetoed by �
               Governor Schwarzenegger; the veto message read, in part: �
                





                    "?given the current uses of the ERPA account at the �
                    Commission and the precariously low balance in that �
                    fund, this bill would require the Commission to �
                    increase the surcharge on electricity users �
                    throughout California to pay for its provisions.  �
                    And even after doing so, the Commission would still �
                    be required in the future to cut its core programs �
                    to pay for this bill, including those related to �



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                    power plant licensing, renewable energy facility �
                    licensing, and energy efficiency.  

                    More importantly, I will not support increasing the �
                    surcharge on electricity users to fund a K-12 �
                    Education program.  To do so would start a �
                    dangerous precedent for finding unrelated revenue �
                    sources to fund, expand, or create K-12 programs �
                    outside of the Proposition 98 guarantee.  

                    Additionally, the bill only gives a minor role to �
                    the Commission in developing the guidelines for the �
                    program.  Just as the Commission is not an expert �
                    in navigating our state's complex education system, �
                    neither are CDE employees proficient in the �
                    emerging technologies and future of our green �
                    economy.  As such, the Commission should be CDE's �
                    partner in putting together this program so as to �
                    provide our students with the right skills to enter �
                    our green economy."  

               �Additional prior legislation includes:  

               AB 2855 (Hancock, Chapter 685, Statutes of 2008), �
               established, commencing with the 2009-10 school year, �
               the Green Technology Partnership Academies and the Goods �
               Movement Partnership Academies as two new categories of �
               CPAs.  

               SB 1672 (Steinberg, 2008), would have established the �
               Renewable Energy, Climate Change, Career Technical �
               Education, and Clean Technology Job Creation Bond Act of �
               2010, to be operative only if approved by voters at an �
               unspecified election in 2010.  This measure was passed �
               by this Committee on a 7-1 vote and was subsequently �
               held by the Assembly Appropriations Committee.  

               SB 70 (Scott, Chapter 352, Statutes of 2006) provided �
               for 50 new first-year, grade 10 partnership academy �
               planning grants through 2009-10.  

           SUPPORT
          �  
          Riverside County School Superintendents' Association

           OPPOSITION
          �  



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          California Manufacturers & Technology Association