BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1 X1
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          Date of Hearing:   March 7, 2011

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                 SB 1 X1 (Steinberg) - As Amended:  February 22, 2011

                              AS PROPOSED TO BE AMENDED 
                                          
           �This bill was referred to and heard by the Assembly Utilities 
          and Commerce Committee as it relates to the issues under its 
          jurisdiction]
                                           
          SENATE VOTE  :   25-15
           
          SUBJECT  :  Partnership academies: Clean Technology and Renewable 
          Energy Job Training, Career Technical Education, and Dropout 
          Prevention Program

           SUMMARY  :  Establishes the Clean Technology and Renewable Energy 
          Job Training, Career Technical Education, and Dropout Prevention 
          Program by creating a grant program for California Partnership 
          Academies (CPAs) that focus on clean technology and renewable 
          energy businesses, as specified.  Specifically,  this bill  :    

          1)Makes findings and declarations regarding renewable energy, 
            energy conservation, clean technology and climate change 
            policies, with a focus on California's leadership in those 
            areas, states that clean technology jobs and renewable energy 
            jobs can provide benefits to underserved communities, 
            educational institutions, the environment and the economy, and 
            suggests that California must prioritize the reduction of high 
            school dropout and joblessness rates among its young people. 

          2)States legislative intent to stimulate the state's economy by 
            creating CPAs 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, to 
            provide employers the best-trained workforce and to prepare 
            young people to work in clean, green industries and 
            professions.  

          3)Defines "clean technology business" and "renewable energy 
            business" as specified. 

          4)Requires the Controller to annually allocate $8 million 








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            dollars from the Renewable Resources Trust Fund (RRTF), upon 
            appropriation by the Legislature, to the Superintendent of 
            Public Instruction (SPI) for purposes of funding the CPA 
            grants using the existing criteria for allocation of CPA 
            funds, except as specified. 

          5)Requires, if funds are unavailable from the RRTF, the 
            Controller to annually allocate $8 million dollars from the 
            Energy Resources Program Account (ERPA), upon appropriation by 
            the Legislature, for purposes of this bill. 

          6)Requires the SPI to award grants to school districts that meet 
            the existing CPA requirements, propose to implement or 
            maintain an existing CPA that focuses on employment in clean 
            technology or renewable energy businesses, provide skilled 
            workforces for the products and services for energy and/or 
            water conservation, renewable energy, pollution reduction, or 
            other technologies that improve the environment in furtherance 
            of state environmental laws, and comply with specified 
            guidelines. 

          7)Requires the SPI, in consultation with the State Energy 
            Resources Conservation and Development Commission known as the 
            California Energy Commission (CEC), to review grant 
            applications submitted by school districts and to review 
            ongoing programs to ensure that those programs meet the 
            requirements specified in this bill.

          8)Requires, no later than 60 days after the effective date of 
            this measure, and prior to the California Department of 
            Education (CDE) issuing a request for grant applications, the 
            CEC, in consultation with the CDE adopt guidelines to ensure 
            that programs reflect current state energy policies and 
            priorities and link education to the needs of relevant 
            industries and specifies that the adoption of guidelines as 
            emergency regulations shall be deemed an emergency and 
            considered by the Office of Administrative Law as immediately 
            necessary to avoid serious harm to the public peace, health, 
            safety, or general welfare.

          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; 
            second priority to school districts that would establish a CPA 
            at school sites that do not participate in the green CPA 








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            program; and third priority to a school district that has 
            received a grant under the existing CPA program, subject to a 
            review by the CDE and the CEC, as specified, and the 
            availability of funds. 

          10)Specifies the allowable grant amounts for the clean 
            technology and renewable energy CPAs as follows: 

             a)   $1,000 per year for each qualified student enrolled in 
               grade 9 during the first year of 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 
               grade 9 or 10 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 per year for each qualified student enrolled in 
               any of grades 9 to 11, inclusive, during the third year of 
               operation and limits the total grant amount for the third 
               year to no more than $120,000; and,

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

          11)Stipulates that a "qualified student" has the same meaning as 
            described in provisions governing the CPA program and shall 
            also include a 9th grade student who meets the at-risk 
            criteria specified in the CPA program and other specified 
            criteria. 

          12)Requires the SPI to encourage a school district that receives 
            a grant pursuant to this bill to work and coordinate with 
            regional occupational centers and programs for the required 
            career technical education (CTE) sequence of courses and 
            authorizes up to 5% of the funds transferred to the SPI 
            pursuant to this bill to be expended to pay for the 
            administration of the program.

          13)Requires, commencing in 2014 and not later than January 1 of 
            each year, the SPI in consultation with the CEC to provide a 
            report to the Legislature that includes, but is not limited 








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            to, a description of the curriculum and substance of the 
            programs as well as pupil participation and other specified 
            data.  

          14)Requires the first annual report to the Legislature 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, 
            and the proportion of participating pupils who meet the 
            at-risk criteria.

          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 this bill addresses the fiscal emergency declared 
            and reaffirmed by the Governor on January 20, 2011, pursuant 
            to the California Constitution. 

           EXISTING LAW  :

          1)Establishes the CPA program as a state-school-private sector 
            partnership to provide combined academic and occupational 
            training to eligible at-risk students in grades 10-12, 
            inclusive.   

          2)Requires districts and participating businesses to each 
            provide 100% matching funds for all state funds received; 
            stipulates that the match may be in the form of direct and 
            in-kind support; and requires districts to establish an 
            advisory committee consisting of specified individuals and 
            representatives.

          3)Requires participating districts to provide assurances that 
            each academy will be established as a "school within a 
            school," that academy teachers will work as a team in 
            planning, teaching and troubleshooting program activities, 
            that academy teachers will have a common planning period to 
            share student and educational information, and that each 
            academy pupil will be provided with the specified program 
            components.  

          4)Establishes funding and grant amounts to be awarded to school 
            districts for purposes of planning, establishing and 








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            maintaining academies, and expresses legislative intent to 
            expand the CPA program. 

          5)Requires each district operating academies to annually certify 
            information to the SPI regarding the number of qualified 
            students enrolled during the just completed school year, by 
            grade level, for each academy operated by the district.

          6)Establishes the Green Technology Partnership Academies and the 
            Goods Movement Partnership Academies, commencing with the 
            2009-10 school year, and requires, when funds become available 
            for additional partnership academies, the SPI to issue grants 
            for the establishment of such partnership academies in each of 
            the nine economic regions established by the state.  

           FISCAL EFFECT  :   Unknown 

           COMMENTS  :  This bill seeks to expand the number of CPAs that 
          focus on clean technology or renewable energy businesses in an 
          attempt to increase CTE opportunities for pupils, particularly 
          for pupils that may be at risk of dropping out of school.  
          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."

          There has been much interest in the issue of reforming high 
          schools and increasing CTE opportunities for pupils in 
          California schools as an approach to provide access to a 
          relevant curriculum for pupils who may be disengaged and at risk 
          of dropping out.  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 and that dropping out and low 
          achievement have many shared causes such as poor attendance, low 
          engagement and low-quality instruction.  One of the 








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          recommendations in the report suggested that the state should 
          consider more options for students to meet the graduation 
          requirements and points out that, "An increasing number of 
          states have pursued the idea of multiple pathways for students 
          to meet high school graduation requirements such as through 
          career and technical education courses."  

           California Partnership Academies  :  A CPA is a three-year program 
          in grades 10-12, structured as a school-within-a-school.  CPAs 
          serve at-risk pupils and the program requires that no less than 
          one half of each new class must meet the specified at-risk 
          criteria.  The criteria used for student eligibility includes: 
          irregular attendance, past record of underachievement, low 
          motivation or disinterest in the regular academic program, and 
          economical disadvantages.  The curriculum of CPAs is focused on 
          a career theme and is coordinated with related academic classes. 
           The career technical focus for a CPA is determined by an 
          analysis of the local labor market and fields that have 
          companies willing to support the program.  According to the 
          California Department of Education (CDE), there are 461 CPAs 
          currently operating in the state. 

          Previous legislative efforts have sought to expand the CPA 
          program in California high schools.  AB 2855 (Hancock), Chapter 
          685, Statutes of 2008, established, commencing with the 2009-10 
          school year, the Green Technology Partnership Academies as a new 
          category of CPAs, and AB 519 (Budget Committee), Chapter 757, 
          Statutes of 2008, appropriated $12.5 million from the Public 
          Interest Research, Development, and Demonstration Fund to fund 
          61 new CPAs that focus on clean technology, renewable energy, 
          pollution reduction, and other "green" environmental 
          technologies.  AB 519, however only provides this additional 
          funding for three years and the funding will sunset in 2011-12.  
          According to the CDE, there are currently 58 green technology 
          CPAs funded through AB 519 operating in California high schools. 
           Additionally, part of the funding provided for purposes of the 
          CTE Initiative enacted through SB 70 (Scott), Chapter 352, 
          Statutes of 2005 was allocated to expand the number of CPAs.

          The CPA model has demonstrated to be a promising model that 
          provides rigorous academic and CTE opportunities to pupils.  A 
          study conducted collaboratively by ConnectEd: The California 
          Center for College and Career, and the Career Academy Support 
          Network at the University of California at Berkeley showed that 
          the graduation rate for partnership academy seniors during the 








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          2004-05 school year was higher than those of the statewide 
          population, and that CPA students passed the high school exit 
          exam at higher rates than did the general student population.  
          CPAs offer opportunities for pupils to make connections between 
          the classroom and careers, and to engage students in their 
          learning through relevant and rigorous coursework. 

           Eligibility and priorities for funding  :  To be eligible for the 
          grants provided in this bill, school districts must meet the 
          existing CPA eligibility requirements, propose to implement or 
          maintain a CPA that focuses on clean technology or renewable 
          energy businesses, and provide skilled workforces for products 
          and services that improve the environment in furtherance of 
          state environmental laws, and comply with the guidelines adopted 
          by the CEC, pursuant to this bill.

          This bill assigns first and second priorities for funding to 
          districts that do not currently participate in the existing CPA 
          program and to districts that do not participate in the green 
          CPA program funded through AB 519, respectively.  The bill gives 
          third priority for funding to school districts that have 
          received a CPA grant, subject to a review and to the 
          availability of funds.  Considering that existing green CPAs 
          funded through AB 519 will lose their funding in 2011-12, this 
          bill could provide an opportunity for some of these green CPAs 
          to continue to be funded.  However, the bill as currently 
          drafted assigns third (the lowest) priority, subject to 
          availability of funds, to existing CPAs.  Since it appears that 
          there is considerable demand for green CPAs, there is a 
          possibility that there would not be enough funds remaining for 
          existing CPAs to be funded after satisfying the first two 
          priorities specified in the bill.  This Committee may wish to 
          consider whether existing green CPAs, specifically those that 
          will lose funding next year, should have a higher funding 
          priority under this bill so as to avoid a disruption to existing 
          programs and to the pupils participating in those programs when 
          the AB 519 funding sunsets.   Staff recommends  , the bill be 
          amended to give the SPI the authority to assign a higher funding 
          priority to green CPAs currently funded through AB 519 that meet 
          the requirements of this bill, so as to avoid disruption to 
          existing programs.  

           Collaboration between the SPI and the CEC in implementation  :  
          The CEC, comprised of five individuals appointed by the Governor 
          and the Senate, is responsible for developing and implementing 








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          the state's energy policies, forecasting statewide energy needs, 
          siting and licensing thermal power plants, promoting energy 
          conservation programs, and conducting energy-related research 
          and development programs.  This bill gives the CEC a role in 
          ensuring the academic content of the CPAs proposed by this bill 
          align with state energy policies by requiring the CEC, in 
          consultation with CDE, to develop guidelines to ensure that 
          programs receiving these grants reflect current state energy 
          policies and priorities and provide skills and education linked 
          to the needs of relevant industries.  Additionally, the bill 
          requires the SPI to consult with the CEC in the review of 
          initial grant applications and in the review of ongoing 
          programs.  This program will sunset in five years and it 
          requires the SPI in coordination with the CEC to report annually 
          to the Legislature regarding the programs funded through this 
          bill.   
           
          Funding  :  As proposed to be amended, this bill allocates $8 
          million dollars from the Renewable Resources Trust Fund (RRTF) 
          to the SPI for purposes of funding the CPAs specified in this 
          bill and states that if funds are not available from the RRTF 
          then $8 million dollars would be transferred from the Energy 
          Resources Program Account (ERPA) to fund the green CPAs.  

          According to information provided by the author, the RRTF was 
          created to improve the competitiveness of existing in-state 
          renewable electricity generation technology facilities, and to 
          secure for the state the environmental, economic, and 
          reliability benefits that continued operation of those 
          facilities will provide. 

          ERPA, primarily funds the CEC's overall administration, and is 
          derived from a usage-based monthly surcharge on electricity 
          customers at a rate determined by the CEC annually, but not more 
          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.  

           Additional amendments  that will be adopted by this Committee, 
          include:

             1)   An amendment suggested by the Senate Appropriations 
               Committee, "to speed the adoption of emergency regulations, 








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               if any."  The amendment would strike lines 29 to 32 on page 
               6 and insert the revised language noted below:

                The adoption of guidelines as emergency regulations 
               pursuant to this section shall be deemed an emergency 
               and considered by the Office of Administrative Law as 
               immediately necessary to avoid serious harm to the 
               public peace, health, safety, or general welfare for 
               purposes of sections 11346.1 and 11349.6.
           
             2)   An amendment suggested by the Assembly Utilities & 
               Commerce Committee to ensure the first annual report 
               includes data on the proportion of participating pupils who 
               meet the at-risk criteria.

             3)   An amendment proposed by the author to change the 
               funding source from the Energy Resources Program Account 
               (ERPA) to the Renewable Resources Trust Fund (RRTF), unless 
               funds are unavailable from the RRTF, in which case the 
               amendments require the Controller to annually allocate the 
               funds from the ERPA, upon appropriation by the Legislature, 
               for purposes of this bill.

             4)   Amendments proposed by the author to delay the annual 
               reporting by one year from 2013 to 2014, and add 
               Assemblymember Butler as a co-author.  

           Related legislation  :  SB 148 (Steinberg) of the Regular Session, 
          is identical to the introduced version of this bill and also 
          establishes the Clean Technology and Renewable Energy Job 
          Training, Career Technical Education, and Dropout Prevention 
          Program by creating a grant program for California Partnership 
          Academies (CPAs) that focus on clean technology and renewable 
          energy businesses, as specified.  SB 148 is pending in the 
          Senate Education Committee.  
           
          Prior legislation  :  AB 2855 (Hancock), Chapter 685, Statutes of 
          2008, establishes, 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) of 2008 establishes 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.  The bill was held 








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          in the Assembly Appropriations Committee suspense file.

          SB 675 (Steinberg) of 2010, a substantially similar measure, 
          establishes the Clean Technology and Renewable Energy Job 
          Training, Career Technical Education, and Dropout Prevention 
          Program by creating a grant program for CPAs that focus on clean 
          technology and renewable energy businesses, as specified.  SB 
          675 was vetoed by Governor Schwarzenegger with the following 
          veto message: 

               SB 675 would allocate funds from the California Energy 
               Commission's (Commission) Energy Resource Programs 
               Account (ERPA) to the California Department of 
               Education (CDE) for developing and maintaining 
               programs that focus on employment and training for 
               energy or water conservation, renewable energy, 
               pollution reduction, or similar technologies.
                                                                                          
               Throughout my tenure as Governor, I have been a 
               staunch supporter of increasing career-tech education 
               opportunities for our young men and women.  I continue 
               to believe that career-tech education has a vital role 
               to play in helping to develop and sustain California's 
               students and our emerging green economy.
                
               Nonetheless, 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 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 








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               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.
                
               If the program included in this bill was wholly funded 
               using Proposition 98 dollars and a greater role was 
               given to the Commission to develop guidelines in 
               cooperation with the Department of Education, I would 
               sign it.

          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Energy Efficiency Industry Council
          Ella Baker Center for Human Rights
          Environmental Defense Fund 
          Large-Scale Solar Association
          Linking Education and Economic Development 
          Los Angeles Unified School District 
          Natural Resources Defense Council
          Pacific Gas and Electric Company
          Sacramento City Unified School District 
          Sacramento County Office of Education
          Sierra Club of California 
          Twin Rivers Unified School District
          Union of Concerned Scientists 

           Opposition 
           
          None on file.

           Analysis Prepared by  :    Marisol Avi�a / ED. / (916) 319-2087