BILL ANALYSIS �
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Date of Hearing: March 3, 2011
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
SB 1 X1 (Steinberg) - As Amended: February 22, 2011
SENATE VOTE : 25-15
SUBJECT : Energy job training: Clean Technology and Renewable �
Energy Job Training, Career Technical Education, and Dropout �
Prevention Program.
SUMMARY : This bill establishes a dedicated funding stream to �
invest in career technical education that delivers skills and �
knowledge needed for successful employment in clean technology, �
renewable energy or energy efficiency. Specifically, this bill : �
1)Creates 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.
2)Requires the State Controller to annually allocate $8 million �
from the Energy Resources Programs Account (ERPA), upon �
appropriation by the Legislature, to the California Department �
of Education (CDE) for expenditure in the form of grants to �
school districts for creating and maintaining partnership �
academies.
3)Requires the Superintendent of Public Instruction (SPI) to �
award grants to implement or maintain a partnership academy �
for pupils in grades 9 to 12 that focuses on employment in �
clean technology businesses and 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.
4)Requires the California Energy Commission (CEC), no later than �
60 days after the effective date of these provisions, in �
consultation with the CDE, to adopt guidelines that would be �
required to comply with the Administrative Procedures Act, but �
may be adopted as emergency regulations to ensure that �
programs receiving grants reflect current state energy �
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policies and priorities as well as provide skills and �
education linked to the needs of relevant industries.
5)Authorizes a school district to apply for planning grants for �
implementing a partnership academy and allows CDE to pay �
administrative costs.
6)Requires CDE, in consultation with the CEC, to provide annual �
reports to the Legislature that includes descriptions of the �
curriculum, pupil participation data and substance of the �
programs funded by the grants awarded.
7)States that it addresses the fiscal emergency declared and �
affirmed by the Governor by proclamation issued on January 20, �
2011.
8)Makes a number of legislative findings and declarations �
regarding California's international leadership in renewable �
energy, energy conservation, clean technology, and climate �
change policies.
9)Becomes inoperative on June 30, 2017.
EXISTING LAW :
1)Establishes California Partnership Academies as state-school �
private-sector partnership programs that provide combined �
academic and occupational training programs to high school �
pupils in grades 10 to 12 including those who present a high �
risk of dropping out of school; motivating those pupils to �
stay in school and graduate.
2)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.
3)Establishes, commencing with the 2009-10 school year, Green �
Technology Partnership Academies, and requires, when funds �
become available, the SPI to issue grants for the �
establishment of these specific categories of partnership �
academies in each of the nine economic regions by the state.
4)Permits the CEC to increase ERPA collections to an amount of �
not more than $.0003 per kilowatt-hour if ERPA is �
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oversubscribed.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, "California suffers from �
too many high school dropouts, too little meaningful career �
technical education at the middle and high school levels, and �
the lack of a skilled workforce to fuel the emerging green �
economy. California must lead in addressing both the problems �
of its youth and the opportunities created by the new green �
economy. SB 1 X1 offers solutions at the intersection of these �
two state priorities. Investment in these emerging careers and �
industries will drive the next phase of California's economic �
growth in a way that helps us meet the challenge of climate �
change. This investment in reducing the dropout rate, expanding �
workforce opportunities, and targeting climate change will �
create economic stimulus for clean energy and technology jobs in �
California."
1)Background : Partnership academies are educational programs �
that provide integrated
academic and career technical education to students in grades 10 �
to 12 including those who present a high risk of dropping out 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 �
California partnership academy 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 developed in response to regional workforce and economic �
needs typically focused 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, mentorship, and internships. Students are matched with �
mentors in their junior year and typically begin an internship �
after completing their junior year.
2)Program guidelines : To qualify for competitive grants, schools �
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must partner with regional
business or industry in the clean technology or renewable energy �
sectors. Schools and their business partners must each put up a �
dollar amount equal to the grant. This bill would require �
grants to be reviewed and awarded by the CDE in consultation �
with the CEC, to ensure that programs are consistent with �
California energy policy and priorities. The guidelines for �
awarding a grant would be based on a proposed or existing �
partnership academy that focuses on employment in a clean �
technology business or renewable energy business. The �
partnership academy should also provide 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. The bill also stipulates the SPI and �
CEC to review these ongoing programs to ensure they comply with �
the established program guidelines.
3)Program momentum : According to the CDE, there are currently �
461 partnership academies
operating in California schools. The department receives �
applications for more partnership academy grants than there is �
funding available. The green technology partnership academies �
program, which has eligibility criteria similar to the �
requirements set forth in this bill, has been especially �
competitive. For instance, according to department staff, the �
54 school districts awarded green technology partnership academy �
grants were selected from among more than 100 applications. It �
is expected that the partnership academy program would generate �
even more interest and applications from schools and businesses �
seeking grants because more total funding is available and the �
program includes grade 9, as well as grades 10 through 12. �
Existing funding for the green technology partnership academies �
is scheduled to sunset in 2011-12.
4)Who's paying for it : This bill seeks to shift approximately �
$8 million annually from the
CEC's ERPA to support the establishment of the partnership �
academies specified in this bill. In order to receive the �
funding, the school district and business partner must provide �
an amount equal to a 100% match of all funds received.
ERPA, which primarily funds the CEC's overall administration, is �
derived from a usage-based monthly surcharge on electricity �
customers at a rate determined by the CEC annually, but not more �
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than $.0003 per kilowatt-hour. In November 2010, the CEC �
increased the customer surcharge to near the statutory limit, �
which is expected to generate approximately $61.8 million for �
ERPA for the 2010-11 fiscal year, compared to about $53 million �
in 2009-10. The Governor's proposed 2011-12 Budget proposes �
approximately $70.3 million for ERPA generated from the �
surcharge.
5)The fallout : According to the CEC, ERPA is the primary funding �
source for CEC
administrative activities such as power plant licensing, �
economic analysis, and efficiency promotion and an appropriation �
of $8 million annually would compromise their fundamental �
activities. If this bill becomes law, the CEC believes the �
small reserves of the ERPA fund will become exhausted during the �
remainder of the 2011-12 fiscal year and as a result, they may �
begin contemplating cuts to core programs beginning in fiscal �
year 2012-13. The CEC states that programs such as renewable �
siting activity, energy supply and demand forecasting (which is �
used by the California Public Utilities Commission and the �
California Independent System Operator in developing resource �
adequacy requirements for the investor owned utilities), and �
energy efficiency will be in jeopardy. If the CEC cannot make �
up for the loss from other funding streams, the CEC could �
consider increasing the ERPA surcharge ceiling which would �
require legislative authorization.
6)Arguments in Support : The Pacific Gas & Electric Company �
(PG&E) opines that the
Partnership Academy Model is an important tool to help the state �
meet our future workforce needs. In fact, to help prepare the �
workforce of the future, PG&E is sponsoring five Partnership �
Academies within its service territory. PG&E states that these �
academies provide participating students with an integrated �
academic and technical education focused on energy and the �
environment. PG&E further states new "green" technologies are �
emerging, driving the demand for workers and students with �
strong backgrounds in science, technology, engineering and �
mathematics.
7)Arguments in Opposition : While the California Manufacturers & �
Technology Association
(CMTA) appreciates the leadership of the author on the need to �
rebuild career and technical education and addresses the �
alarming drop-out rate in California schools, they opine that �
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the programs identified in this bill be funded through current �
and future public education resources. CMTA opposes the use of �
funds paid by electric and natural gas customers to run programs �
to keep utility costs low and improve reliability through �
advancing technology. CMTA claims that initiatives to increase �
the amount of renewable power in the state, meet AB 32 emission �
reduction goals, and invest in utility infrastructure will be �
putting upward pressure on utility rates, already among the �
highest in the nation for manufacturers. CMTA believes every �
ratepayer dollars should be used for only the most �
cost-effective energy programs.
Related legislation : This bill is identical to SB 148 �
(Steinberg) in the 2010-11 Regular Session. This bill is �
substantially similar to SB 675 (Steinberg, 2010), which would �
have allocated funds from the ERPA to the CDE for developing and �
maintaining programs that focus on training and employment in �
clean technology and renewable energy industries. SB 675 was �
vetoed by the Governor.
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 California Partnership �
Academies.
AB 519 (Assembly Budget Committee) Chapter 757, Statutes of �
2008, appropriated $12 million from the Public Interest Research �
and Development and Demonstration Fund, generated by the Public �
Goods Charge electric ratepayers' surcharge, for transfer to �
green technology partnership academies.
REGISTERED SUPPORT / OPPOSITION :
Support
Abengoa Solar
Amonix
BrightSource Energy
California Energy Efficiency Industry Council
California School Boards Association (CSBA)
Environmental Defense Fund (EDF)
First Solar
FRV Renewables
Green Collar Jobs Campaign of the Ella Baker Center for Human �
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Rights
Infinia
Large-Scale Solar Association (LSA)
Linking Education and Economic Development (LEED)
Los Angeles Unified School District
Natural Resources Defense Council (NRDC)
NRG
Pacific Gas and Electric Company (PG&E)
Recurrent Energy
Sacramento City Unified School District
Sacramento County Office of Education
Sierra Club California
Solar Millennium
SunPower
Suntech
Tessera Solar
The Solar Alliance
Twin Rivers Unified School District
Union of Concerned Scientists
Opposition
California Manufacturers & Technology Association (CMTA)
Analysis Prepared by : DaVina Flemings / U. & C. / (916) �
319-2083