BILL ANALYSIS �
SB 1 X1
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SENATE THIRD READING
SB 1 X1 (Steinberg)
As Amended March 10, 2011
Majority vote
SENATE VOTE :25-15
UTILITIES & COMMERCE 9-3EDUCATION 6-0
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|Ayes:|Bradford, Buchanan, Fong, |Ayes:|Brownley, Ammiano, |
| |Fuentes, Furutani, Roger | |Buchanan, Butler, Carter, |
| |Hern�ndez, Ma, Skinner, | |Eng |
| |Swanson | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Nestande, Valadao | | |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Blumenfield, | | |
| |Bradford, Charles | | |
| |Calderon, Campos, Davis, | | |
| |Gatto, Hall, Hill, Lara, | | |
| |Mitchell, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Donnelly, | | |
| |Nielsen, Norby, Wagner | | |
| | | | |
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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.
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2)Requires the State Controller to annually allocate $8 million
from the Renewable Resources Trust Fund (RRTF), upon
appropriation by the Legislature, to the Superintendent of
Public Instruction (SPI) for expenditure in the form of grants
to school districts for creating and maintaining partnership
academies. If sufficient funds are not available from RRTF,
the balance of the $8 million will come from funds provided
for in AB 118 (N��ez), Chapter 750, Statutes of 2007.
3)Requires the 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 SPI, to adopt guidelines to ensure that
programs receiving grants reflect current state energy
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 SPI to pay
administrative costs.
6)Requires SPI, in consultation with CEC, to provide annual
reports to the Legislature commencing in 2014 that includes
descriptions of the curriculum, proportion of participating
pupils who meet the at-risk criteria, pupil participation data
and substance of the programs funded by the grants awarded.
7)Makes a number of legislative findings and declarations
regarding California's international leadership in renewable
energy, energy conservation, clean technology, and climate
change policies.
8)Becomes inoperative on June 30, 2017, and as of January 1,
2018, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is
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repealed.
9)States that it addresses the fiscal emergency declared and
affirmed by the Governor by proclamation issued on January
20, 2011.
FISCAL EFFECT : Assuming appropriations are provided by the
Legislature over the life of the program through the Budget Act
or other legislation, there will be special fund costs of $8
million each year from 2011-12 through 2016-17, including up to
$400,000 for program administration by SPI. It appears that
funding is only assured for the program in 2011-12 and 2012-13.
This is because authorization to collect ratepayer funds for
deposit in RRTF expires January 1, 2012, and the bill only
allows use of AB 118 (N��ez), if insufficient RRTF funds are
available, through 2012-13. For 2013-14 and beyond, funding
would depend on extension of the Public Goods Charge or an
appropriation from any RRTF balance, assuming repayment of prior
RRTF loans to other funds.
CEC costs to develop guidelines within 60 days will, by
necessity, be absorbed. Commission costs for ongoing
consultation with SPI should also be absorbable with existing
resources or within the amount set aside for program
administration.
COMMENTS : 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.
According to the California Department of Education (CDE), there
are currently 461 partnership academies operating in California
schools. The CDE receives applications for more partnership
academy grants than there is funding available. The green
technology partnership academies program, which has eligibility
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criteria similar to the requirements set forth in this bill, has
been especially competitive. For instance, according to CDE
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.
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.
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
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 (N��ez),
Chapter 488, Statutes of 2006, 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 ratepayer dollars should be used
for only the most cost-effective energy programs.
Analysis Prepared by : DaVina Flemings / U.C. / (916) 319-2083
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