Existing law requires specified state agencies to prepare and submit to the Secretary for Environmental Protection specified information relating to the state agencys greenhouse gas (GHG) emissions, including a list of measures adopted and implemented by the agency to meet GHG emission reduction targets, as defined, and a status report on GHG emissions reduced as a result of these measures. Existing law further requires the California Environmental Protection Agency to provide that information on its Internet Web site in the form of a state agency GHG emission reduction report card.

This bill would create the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee in the California Environmental Protection Agency, comprising 7 members appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules, as provided. The bill would prescribe the terms and qualifications of committee members and would require the committee to hold its first meeting on or before December 1, 2016. The bill would require that any member who fails to attend 3 committee meetings in one calendar year be deemed removed from the committee, and would require the appointing power for that member to appoint a new member to fill the vacancy. The bill would require the committee to advise state agencies on the most effective ways to expend clean energy and GHG-related funds and implement policies in order to maximize Californias economic and employment benefits, and to take specified actions in that regard.

This bill would also require the committee to provide an annual update to the Governor and the appropriate policy and fiscal committees of the Legislature on its activities, as provided. The bill would require each state agency that has received advice from the committee to submit an annual progress report to the Governor and the appropriate policy and fiscal committees of the Legislature describing how it implemented or responded to the advice, guidance, and recommendations of the committee.

Existing law requires specified state agencies to prepare and submit to the Secretary for Environmental Protection specified information relating to the state agencys greenhouse gas (GHG) emissions, including a list of measures adopted and implemented by the agency to meet GHG emission reduction targets, as defined, and a status report on GHG emissions reduced as a result of these measures. Existing law further requires the California Environmental Protection Agency to provide that information on its Internet Web site in the form of a state agency GHG emission reduction report card.

This bill would create the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee in the California Environmental Protection Agency, comprised of comprising 7 members appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules, as provided. The bill would prescribe the terms and qualifications of committee members and would require the committee to hold its first meeting on or before December 1, 2016. The bill would require that any member who fails to attend 3 committee meetings in one calendar year be deemed removed from the committee, and would require the appointing power for that member to appoint a new member to fill the vacancy. The bill would require the committee to advise state agencies on the most effective ways to expend clean energy and GHG-related funds and implement policies in order to maximize Californias economic and employment benefits, and to take specified actions in that regard. The

This bill would also require the committee to provide an annual update to the Governor and the appropriate policy and fiscal committees of the Legislature on its activities, as provided. The bill would require each state agency responsible for implementing clean energy and low-carbon polices and programs that has received advice from the committee to submit an annual progress report to the Governor and the appropriate policy and fiscal committees of the Legislature describing how it implemented or responded to the advice, guidance, and recommendations of the committee.

Existing law requires specified state agencies to prepare and submit to the Secretary for Environmental Protection specified information relating to the state agencys greenhouse gas (GHG) emissions, including a list of measures adopted and implemented by the agency to meet GHG emission reduction targets, as defined, and a status report on GHG emissions reduced as a result of these measures. Existing law further requires the California Environmental Protection Agency to provide that information on its Internet Web site in the form of a state agency GHG emission reduction report card.

This bill would create the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee, Committee in the California Environmental Protection Agency, comprised of 7 members appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules, as provided. The bill would prescribe the terms and qualifications of committee members and would require the committee to advise state agencies on the most effective ways to expend clean energy and GHG-related funds and implement policies in order to maximize Californias economic and employment benefits, and to take specified actions in that regard. The bill would also require the committee to provide an annual update to the Governor and the appropriate policy and fiscal committees of the Legislature on its activities. activities, as provided. The bill would require each state agency responsible for implementing clean energy and low-carbon polices and programs to submit an annual progress report to the Governor and the appropriate policy and fiscal committees of the Legislature describing how it implemented or responded to the advice, guidance, and recommendations of the committee.

Existing law requires specified state agencies to prepare and submit to the Secretary for Environmental Protection, specified information relating to the state agencys greenhouse gas (GHG) emissions, including a list of measures adopted and implemented by the agency to meet GHG emission reduction targets, as defined, and a status report on GHG emissions reduced as a result of these measures. Existing law further requires the California Environmental Protection Agency to provide that information on its Internet Web site in the form of a state agency GHG emission reduction report card.

This bill would create the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee, comprised of 7 members appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules, as provided. The bill would prescribe the terms and qualifications of committee members and would require the committee to advise state agencies on the most effective ways to expend clean energy and GHG related GHG-related funds and implement policies in order to maximize Californias economic and employment benefits. benefits, and to take specified actions in that regard. The bill would also require the committee to provide an annual update to the Governor and the appropriate policy and fiscal committees of the Legislature on its activities. The bill would require each state agency responsible for implementing clean energy and low-carbon polices and programs to submit an annual progress report to the Governor and the appropriate policy and fiscal committees of the Legislature describing how it implemented or responded to the advice, guidance, and recommendations of the committee.

Existing law requires specified state agencies to prepare and submit to the Secretary for Environmental Protection, specified information relating to the state agencys greenhouse gas (GHG) emissions, including a list of measures adopted and implemented by the agency to meet GHG emission reduction targets, as defined, and a status report on GHG emissions reduced as a result of these measures. Existing law further requires the California Environmental Protection Agency to provide that information on its Internet Web site in the form of a state agency GHG emission reduction report card.

This bill would create the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee, comprised of 7 members appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules, as provided. The bill would require the committee to advise state agencies on the most effective ways to expend clean energy and GHG related funds and implement policies in order to maximize Californias economic and employment benefits. The bill would also require the committee to provide an annual update to the Governor and the appropriate policy and fiscal committees of the Legislature on its activities.

Date of Hearing: August 26, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

SBPCA Bill Id:SB 189

Author:(Hueso) – As Amended Ver:August 17, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill creates the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) in the Cal EPA Agency to advise state agencies on economic benefits and job growth related to a cleaner, low-carbon economy. Specifically, this bill:

1. Establishes the Committee within CalEPA. Requires the Committee to consist solely of people with specified expertise comprised of the following seven members:

   1. Five members appointed by the Governor and subject to confirmation by the Senate. At least two members appointed by the Governor are to have experience working on economic projects in disadvantaged communities.

   2. One member each appointed by the Speaker of the Assembly and the Senate Committee on Rules.

2. Specifies each member may serve a four-year term; members will not receive per diem or other compensation, but may be reimbursed for travel expenses. Any member who fails to attend three Committee meetings in one year will be removed from the Committee.

3. Requires the Committee to hold its first meeting on or before December 1, 2016, and requires that meetings be held quarterly or at a frequency determined by the Committee.

4. Requires the Committee to advise state agencies, develop specified guidance, and provide annual updates to the Governor and Legislature. Requires the Committee to consult with the Labor Workforce and Workforce Development Agency and the California Workforce Investment board, as appropriate.

5. Requires CEC, the Public Utilities Commission (PUC), ARB, and any other state agency that has received advice from the Committee to submit an annual progress report to the Governor and Legislature describing how it implemented or responded to the advice, guidance, and any recommendations provided by the Committee. Specifies that this report may be combined with any other annual report submitted by the agency. Sunsets the reporting requirements on January 1, 2021.

FISCAL EFFECT:

1. Unknown increased costs, likely in the hundreds of thousands of dollars annually, for CalEPA to house, staff and provide administrative support to the Committee (GF and/or special funds).

2. Increased costs of up to $175,000 for ARB to coordinate with the Committee on Greenhouse Gas Revenue Fund (AB 32 cap and trade revenue) investments (GGRF).

3. Unknown costs, potentially in the hundreds of thousands of dollars annually for state agencies to integrate, as appropriate, the Committee’s advice, guidance, and recommendations. 

4. Unknown costs, potentially in the hundreds of thousands of dollars annually for the Labor and Workforce Agency and the California Workforce Investment Board to consult with the Committee.

5. Unknown minor costs, likely in the $50,000 range per agency annually, for the CEC, PUC, ARB and any other state agencies receiving advice from the Committee to report to the Governor and Legislature.

COMMENTS:

1. Purpose. According to the author, this bill creates a single independent blue ribbon committee to provide advice to agencies on the most effective ways to maximize California's economic benefits and job creation via actions and investments in a cleaner, low-carbon economy.

2. Background. AB 32 (Núñez-Pavley), Chapter 488, Statutes of 2006, required ARB to adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions.

In October 2014, CalEPA released its list of disadvantaged communities based on the California Communities Environmental Health Screening Tool (CalEnviroScreen), a tool that assesses all census tracts in California to identify the areas disproportionately burdened by, and vulnerable to, multiple sources of pollution. Areas identified as disadvantaged by CalEnviroScreen 2.0 include the majority of the San Joaquin Valley; much of the Los Angeles Area and the Inland Empire; pockets of other communities near ports, freeways, and major industrial facilities such as refineries and power plants; and large swaths of the Coachella Valley, Imperial Valley and Mojave Desert.

In his January 5, 2015 Inaugural Address, Governor Brown announced the following objectives: 1) Increase the amount of renewable energy used in California from 33% to 50%; 2) Reduce petroleum use in cars and trucks by up to 50%; and, 3) Double the efficiency of existing buildings and make heating fuels cleaner.

3. Jobs and Economic Development Efforts. There are a number of entities throughout state government designed to increase workforce and economic development efforts, with a particular emphasis on emerging technology, green jobs, and the green economy including:

GO-Biz: GO-Biz serves as California’s single point of contact for economic development and job creation efforts. GO-Biz markets the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state.

Commission for Economic Development: The commission, consisting of the Lieutenant Governor as Chairperson, three members appointed by each the Senate Committee on Rules and the Assembly Speaker, and 10 members appointed by the Governor, was established to provide bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the state.

California Workforce Investment Board (CWIB): CWIB is charged with developing a unified, strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development.

Green Collar Jobs Council (GCJC): GCJC was created to address the workforce needs that accompany California’s growing green economy under the purview of CWIB. GCJC makes recommendations and creates strategies for comprehensive and effective workforce training opportunities to help prepare California’s current and future workforce to meet the skills demanded by businesses supporting the energy efficiency and clean energy sectors.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: July 13, 2015

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

SBPCA Bill Id:SB 189

Author:(Hueso) – As Amended Ver:June 1, 2015

SENATE VOTE: 26-14

SUBJECT: Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee.

SUMMARY: Establishes the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) within the California Environmental Protection Agency (CalEPA) to advise state agencies on economic benefits and job growth related to a cleaner, low-carbon economy.

EXISTING LAW:

1. Under the California Global Warming Solutions Act of 2006 (AB 32):
   
   

   1. Requires the California Air Resources Board (ARB) to adopt GHG emissions reduction measures to achieve a reduction in statewide GHG emsisions to the 1990 level.
      
      

   2. Requires ARB to appoint an Economic and Technology Advancement Advisory Committee (ETAAC) to advise on technological research and development opportunities.
      
      

   3. Requires ARB to prepare and approve a Scoping Plan, on or before January 1, 2009 and once every five years thereafter, for achieving the maximum technologically feasible and cost-effective reductions in GHG emissions from sources of emissions by 2020. Establishes the Environmental Justice Advisory Committee (EJAC) to advise ARB on the development of the Scoping Plan and other pertinent matters.

4. Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all funds, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the GGRF, and requires the Department of Finance, in consultation with ARB and any other relevant state agency, to develop a three-year investment plan for the moneys deposited in the GGRF.

5. Requires that the GGRF be used to facilitate GHG emissions reductions in this state consistent with AB 32. Requires that annual budget appropriations from the GGRF be consistent with the investment plan.

6. Requires the GGRF investment plan to allocate, at a minimum, 25% of the funds to benefit disadvantaged communities, and to allocate 10% of the funds for projects within disadvantaged communities.
   
   

1. Under the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007, funded through various vehicle and vessel related surcharges, requires the California Energy Commission (CEC) to implement the Alternative and Renewable Fuels and Vehicle Technology Program (ARFVTP) to provide funding measures to develop and deploy technologies and alternative and renewable fuels in the marketplace to help attain the state’s climate change policies. CEC is required to develop an investment plan for the program in consultation with an advisory committee. An evaluation of the efforts funded by the ARFVTP that includes research, development, and deployment efforts funded by this program is required every two years, beginning in 2011.

3. Under the California Clean Energy Jobs Act (Proposition 39), requires that $550 million be transferred to the Clean Energy Jobs Fund for five fiscal years, beginning in 2013, for appropriation by the Legislature for eligible projects to improve energy efficiency and expand clean energy generation in schools. Proposition 39 also creates a Citizen’s Oversight Board to review and assess effectiveness of expenditures from the fund.

4. Under the Electric Utility Industry Restructuring Act, authorizes the Public Interest Renewable Energy Program administered by CEC, to support the operation of existing renewable facilities as well as the development of new and emerging renewable technologies.

5. Establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s Office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth.

6. Under the California Green Collar Jobs Act of 2008, establishes the Green Collar Jobs Council (CGJC) within the California Workforce Investment Board (CWIB) to focus on developing 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.

7. Establishes the Commission for Economic Development to provide continuing bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the state.

THIS BILL:

1. States legislative findings relating to clean energy, GHG emission reductions, and job creation.

2. States that the purpose of this bill is to create a single independent blue ribbon committee to provide advice to state agencies on the most effective ways to maximize California's economic benefits and jobs growth via investments in a cleaner, low-carbon economy.

3. Establishes the Committee within CalEPA. Specifies that the Committee be comprised of the following members:

   1. Five members appointed by the Governor and subject to confirmation by the Senate; and,

   2. One member each appointed by the Speaker of the Assembly and the Senate Committee on Rules.

4. Specifies that each member serve for a four-year term; members shall not receive per diem or other compensation, but may be reimbursed for travel expenses. Any member who fails to attend three Committee meetings in one year shall be removed from the Committee.

5. Requires the Committee to hold its first meeting on or before December 1, 2016, and requires that meetings be held quarterly or at a frequency determined by the Committee.

6. Requires that Committee members have expertise in economic, financial or policy aspects of clean energy economic growth, job creation, workforce standards, and employment opportunities for disadvantaged workers. Specifies that at least two members appointed by the Governor have experience working on economic projects in disadvantaged communities.

7. Requires the Committee to "advise state agencies on the most effective ways to expend clean energy and GHG-related funds and to implement policies in order to maximize California's economic and employment benefits," and:

   1. Develop guidance for tracking and reporting jobs outcomes for state clean energy and low-carbon investments to evaluate jobs outcomes;

   2. Develop guidance to measure the quantity and quality of jobs created by state investments in clean energy and low-carbon investments;

   3. Advise state agencies on the most effective ways to require responsible contractor standards, as applicable, and minimum training and skill certifications for workers to ensure high-quality work for state clean energy and low-carbon investments, and the most effective ways to connect disadvantaged communities and other target populations to good quality jobs;

   4. Advise state agencies on the most effective ways to align state clean energy and low-carbon training funds with existing state workforce development investments and strategies;

   5. Provide an annual update to the Governor and the appropriate policy and fiscal committees of the Legislature on its activities; and,

   6. Consult with the Labor and Workforce Development Agency and the California Workforce Investment Board (CWIB) when appropriate.

8. Requires CEC, the Public Utilities Commission (PUC), ARB, and any other state agency that has received advice from the Committee to submit an annual progress report to the Governor and the appropriate policy and fiscal committees of the Legislature describing how it implemented or responded to the advice, guidance, and any recommendations provided by the Committee. Specifies that this report may be combined with any other annual report submitted by the agency.

9. Sunsets the reporting requirements on January 1, 2021.

FISCAL EFFECT: According to the Senate Appropriations Committee, this bill has the following costs:

1. Increased costs to CalEPA, potentially in the hundreds of thousands of dollars annually, to house, staff and provide administrative support to the Committee (General and/or special funds).
   
   

2. The bill would require CEC, PUC, ARB, and potentially other state agencies implementing clean energy and low-carbon policies and programs to issue reports annually through 2020, as specified. To the extent that they cannot be integrated with those already statutorily required, these reports are likely to cost in the tens of thousands of dollars per agency, per year. (General Fund and/or special funds).
   
   

COMMENTS:

1. This bill. According to the author:
   
   

Under existing law, there is no state agency responsible for oversight of job creation or maximizing economic growth as we set new standards for reducing GHG emissions. AB 32 created the EJAC and the ETAAC to advise ARB… Although ETAAC may advise ARB on state, regional, national, and international economic and technological developments related to GHG emissions reductions, its sole purpose is not to focus on economic developments.

This bill would create a blue ribbon committee housed within CalEPA that is solely focused on the most effective way to implement clean energy and GHG emissions reduction policies in order to create more jobs and encourage economic innovation. The creation of this committee does not affect existing committees.

1. AB 32. As part of AB 32's direction that ARB adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions, AB 32 requires ARB to prepare and approve a Scoping Plan at five-year intervals.

The first Scoping Plan, adopted by ARB in 2008, described the specific actions ARB and others must take to reduce statewide GHG emissions to 1990 levels by 2020. Pursuant to AB 32, the reduction measures identified in the Scoping Plan had to be proposed, reviewed, and adopted as individual regulations by January 1, 2011, to become operative beginning on January 1, 2012. According to ARB, a total reduction of 80 million metric tons (MMT), or 16% compared to business as usual, is necessary to achieve the 2020 limit. Approximately 78% of the reductions will be achieved through identified direct regulations. ARB intends to achieve the balance of reductions necessary to meet the 2020 limit (approximately 18 MMT) through a cap-and-trade program that covers an estimated 600 entities.

In May 2014, ARB adopted a Scoping Plan update. The Scoping Plan update discusses the objective of achieving an 80% reduction by 2050 and the need for a midterm target, but does not propose or adopt a specific target. According to ARB, the update defines ARB’s climate change priorities for the next five years and sets the groundwork to reach California's long-term climate goals.

The 2014-15 Budget Act allocates cap-and-trade revenues for the 2014-15 Fiscal Year and establishes a long-term plan for the allocation of cap-and-trade revenues beginning in Fiscal Year 2015-16. The Budget continuously appropriates 35% of cap-and-trade funds for investments in transit, affordable housing, and sustainable communities. Twenty-five percent of the revenues are continuously appropriated to continue the construction of high-speed rail. The remaining 40% will be appropriated annually by the Legislature for investments in programs that include low-carbon transportation, energy efficiency and renewable energy, and natural resources and waste diversion. In addition to reducing GHG emissions, 25% of the proceeds from the GGRF must also go to projects that provide a benefit to disadvantaged communities, as identified by the California Environmental Protection Agency (CalEPA). A minimum of 10% of the funds must be for projects located within those communities.

In October 2014, CalEPA released its list of disadvantaged communities based on the California Communities Environmental Health Screening Tool (CalEnviroScreen), a tool that assesses all census tracts in California to identify the areas disproportionately burdened by and vulnerable to multiple sources of pollution. Areas identified as disadvantaged by CalEnviroScreen 2.0 include the majority of the San Joaquin Valley; much of Los Angeles and the Inland Empire; pockets of other communities near ports, freeways, and major industrial facilities such as refineries and power plants; and large swaths of the Coachella Valley, Imperial Valley and Mojave Desert.

In his January 5, 2015 Inaugural Address, Governor Brown announced the following objectives: 1) Increase the amount of renewable energy used in California from 33% to 50%; 2) Reduce petroleum use in cars and trucks by up to 50%; and, 3) Double the efficiency of existing buildings and make heating fuels cleaner.

2. Jobs and Economic Development Efforts. There are a number of entities throughout state government designed to increase workforce and economic development efforts, with a particular emphasis on emerging technology, green jobs, and the green economy.
   
   

   1. GO-Biz: GO-Biz serves as California’s single point of contact for economic development and job creation efforts. GO-Biz markets the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state.
      
      

The iHub Program within GO-Biz designates ‘iHubs’ (i.e., areas in the state) to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform for startup businesses, economic development organizations, business groups, and venture capitalists. These assets include research parks, technology incubators, universities, and federal laboratories.

2. Commission for Economic Development: The commission, consisting of the Lieutenant Governor as Chairperson, three members appointed by each the Senate Committee on Rules and the Assembly Speaker, and 10 members appointed by the Governor, was established to provide bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the state.
   
   

3. California Workforce Investment Board: CWIB is charged with developing a unified, strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development. CWIB has adopted “sector strategies” as the statewide framework for workforce development and works with partners, including other state agencies, to support the emergence of effective statewide and regionally driven sector initiatives.
   
   

4. Green Collar Jobs Council: GCJC was created to address the workforce needs that accompany California’s growing green economy under the purview of CWIB. GCJC makes recommendations and creates strategies for comprehensive and effective workforce training opportunities to help prepare California’s current and future workforce to meet the skills demand from businesses supporting the energy efficiency and clean energy sectors. GCJC is also tasked with developing, collecting, analyzing, and distributing statewide and regional labor market data on California’s new and emerging green industries workforce needs, trends, and job growth and identifying funding resources and making recommendations on how to expand and leverage these funds. CWIB is required to report annually to the Legislature on the status of GCJC activities, grants awarded, and its development and implementation of a green workforce strategic initiative.
   
   The GCJC issued a Proposed Jobs and Workforce Development Program Elements for Carbon Reduction Investments in California in January 2014, which proposed “a common approach to workforce development and job creation for California’s multiple public investments in carbon reduction initiatives under the umbrella of AB 32.”
   
   

1. Suggested amendment. This bill requires the Committee to advise state agencies on the most effective ways to connect "disadvantaged communities and other target populations" with green jobs; however, the bill is not clear what the other target populations would be. This may create confusion when the Committee is implementing the bill and could inadvertently authorize the Committee to focus on groups other than disadvantaged communities. The committee may wish to amend the bill to strike out "and other target populations" to ensure that the Committee's focus remain on disadvantaged communities.
   
   

2. Double referral. This bill was double referred to the Assembly Committee on Jobs, Economic Development; it passed out of that committee on June 23 on a vote of 6-2.

REGISTERED SUPPORT / OPPOSITION:

Support

Alliance for Solar Choice

American Lung Association, California

Audubon California

Azul

Bloom Energy

California League of Conservation Voters

California State Association of Electrical Workers

California State Pipe Trades Council

CalSTART

Environment California

Environmental Defense Fund

Natural Resources Defense Council

Sierra Club California

Solar City

Solar Energy Industries Association

Sunrun

Union of Concerned Scientists
Western States Council of Sheet Metal Workers

Opposition

None on file

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092

 THIRD READING  

Bill No: SB 189

Author: Hueso (D)

Amended: 6/1/15

Vote: 21

SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 7-1, 4/6/15

AYES: Hill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski

NOES: Berryhill

NO VOTE RECORDED: Bates

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-1, 4/15/15

AYES: Wieckowski, Hill, Jackson, Leno, Pavley

NOES: Gaines

NO VOTE RECORDED: Bates

SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15

AYES: Lara, Beall, Hill, Leyva, Mendoza

NOES: Bates, Nielsen

SUBJECT: Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee

SOURCE: Author

DIGEST: This bill establishes the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee to advise state agencies on the most effective ways to allocate clean energy and greenhouse gas related funds and to implement policies that maximize economic and employment benefits.

ANALYSIS:

Existing law:

1. The California Global Warming Solutions Act (Act) requires the California Air Resources Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emission reduction measures by regulation, and sets certain requirements in adopting the regulations. (Health and Safety Code (HSC) §38500 et seq.)

2. Requires the ARB to convene an Environmental Justice Advisory Committee (EJAC), to advise the ARB in developing the Scoping Plan, and any other pertinent matter in implementing the Act. Requires that the EJAC be comprised of representatives from communities in the State with the most significant exposure to air pollution, including, but not limited to, communities with minority populations or low-income populations. Requires the ARB to appoint an Economic and Technology Advancement Advisory Committee (ETAAC) to advise the ARB on activities that will facilitate investment in and implementation of technological research and development opportunities, including, but not limited to, identifying new technologies, research, demonstration projects, funding opportunities, developing state, national, and international partnerships and technology transfer opportunities, and identifying and assessing research and advanced technology investment and incentive opportunities that will assist in the reduction of greenhouse gas emissions. Provides that the ETAAC may also advise the ARB on state, regional, national, and international economic and technological developments related to greenhouse gas emission reductions. (HSC § 38591)

3. Establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor's Office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth. (Government Code §§ 12096 - 12098.5)

4. Authorizes GO-Biz to coordinate the development of policies and criteria to ensure that federal grants administered or directly expended by state government advance statewide economic goals and objectives. Authorizes GO-Biz to market the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state. Authorizes GO-Biz to support small businesses by providing information about accessing capital, complying with regulations, and supporting state initiatives that support small business. (GC § 12096.3)

5. Establishes the Commission for Economic Development (Commission) to provide continuing bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the state. (GC §14999)

6. Establishes the Economic and Workforce Development Program (EWD) within the California Community Colleges System (CCCs), for the purpose of advancing California's economic growth and global competitiveness through high quality education and services focusing on continuous workforce improvement, technology deployment, and business development, consistent with the current needs of the state's regional economies. (Education Code (EC) § 88600-88651 et. seq.)

7. Establishes the Green Collar Jobs Council (GCJC) under the California Workforce Investment Board (CWIB) to focus on developing 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. (Unemployment Insurance Code. (Unemployment Insurance Code (UIC) § 15002)

8. Requires the CWIB report to the Legislature on the status of GCJC activities, grants awarded, and its development and implementation of a green workforce strategic initiative on or before April 1, 2011, and annually each April 1 thereafter. (UIC § 15003)

This bill:

1. States findings and declarations about California’s world leadership in clean energy and how the state’s GHG emission reductions law and policies have led to major employment, economic, environmental and public health benefits.

2. Creates The Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) within the California Environmental Protection Agency (CalEPA). Specifies that Committee members have expertise in economic, financial, and policy aspects of clean energy economic growth, job creation, workforce standards, and employment opportunities for disadvantaged workers. Specifies that at least two members of the Committee shall have experience working on economic projects in disadvantaged communities.

3. Requires the Committee to advise state agencies on the most effective ways to expend clean energy and GHG related gas-related funds and to implement policies in order to maximize California’s economic and employment benefits.

4. Requires the Committee to provide an annual update to the Governor and the appropriate policy and fiscal committees of the Legislature on its activities. Provides that the report may be included in any other annual report CalEPA is required to provide to the Governor and the Legislature if it is feasible for CalEPA to do so.

5. Until January 1, 2021, requires the State Energy Resources Conservation and Development Commission, the Public Utilities Commission, the ARB, and any other state agency responsible for implementing clean energy and low-carbon policies and programs to submit an annual progress report to the Governor and the appropriate policy and fiscal committees of the Legislature describing how it implemented or responded to the advice, guidance, and any recommendations provided by the Committee.

Background

The Author believes that there is no one state agency responsible for oversight on job creation or maximizing economic growth as we set new standards for reducing greenhouse gas emission. According to the Author, while other advisory bodies like the EJAC and the ETAAC were created under the ARB the Blue Ribbon Committee created in this bill would report directly to the Legislature and this stand-alone committee will be tasked with what the Author believes is the primary role of advising state agencies on the most effective way to implement clean energy and GHG reduction policies in order to create more jobs and encourage economic innovation.

AB 32 (Nunez, Chapter 488, Statutes of 2006) required ARB to convene advisory committees as part of the implementation of the Act. The Act required ARB to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in GHG emissions from sources or categories of sources of GHGs by 2020. On January 25, 2007, ARB appointed the first EJAC to advise it on the Initial Scoping Plan and other climate change programs. EJAC submitted its final recommendations on the proposed AB 32 Scoping Plan on April 11, 2014, noting that, “One of the aspirations of the EJAC and broader social justice movements is that AB 32 can set the stage for investments in a new green economy, creating new green career paths and entrepreneurial opportunities. This scoping plan has a stronger focus on the short lived climate pollutants and greater acknowledgment of the need for deeper sector reductions.” ETAAC was tasked with advising ARB on activities that will facilitate investment in, and implementation of, technological research and development opportunities including, but not limited to, identifying new technologies, research, demonstration projects, funding opportunities, developing state, national, and international partnerships and technology transfer opportunities, and identifying and assessing research and advanced technology investment and incentive opportunities that will assist in the reduction of GHG emissions. The Act also authorized ETAAC to advise the ARB on state, regional, national, and international economic and technological developments related to GHG emission reductions. The final report noted that, “In addition to mitigating the dire impacts of climate change, effective action on AB 32 can also yield the co-benefits of cleaner air, new industries and jobs here in California.”

There are a number of entities throughout state government aimed at increasing workforce and economic development efforts, with a particular recent emphasis on emerging technology, green jobs and the green economy. AB 3018 (Nunez, Chapter 312, Statutes of 2008) created the California Green Collar Jobs Council (GCJC) to perform specified tasks related to addressing the workforce needs that accompany California’s growing green economy under the purview of the CWIB. The GCJC issued a Proposed Jobs and Workforce Development Program Elements for Carbon Reduction Investments in California in January 2014 which proposed “a common approach to workforce development and job creation for California’s multiple public investments in carbon reduction initiatives under the umbrella of AB 32. According to the proposal, “California’s energy efficiency, clean energy, and clean transportation programs currently invest several billion dollars each year in incentive programs, public works projects, and a variety of other contracts and subsidies…While the primary purpose of these programs is to meet our energy and carbon reduction targets, these investments create and transform jobs and businesses in a variety of industries in California, particularly the energy, building and construction, and transportation industries. State agencies, utilities, and others responsible for these programs are therefore drivers of economic development and job creation, in addition to their primary role in implementing energy and environmental policy.”

The Economic and Workforce Development Program within the California Community Colleges System works to advance California’s economic growth and global competitiveness through education and services that contribute to continuous workforce improvement, technology deployment, and business development and are consistent with the current needs of the state’s regional economies. Local colleges and business partners form consortia to identify regional workforce needs and priorities, providing assistance to small businesses in the region through local Economic and Workforce Development Centers and train workers. The partnerships enable colleges to develop curricula that address the training needs of local industry. The Centers for Excellence within the Economic and Workforce Development Program has coordinated on several studies to assess the workforce needs of emerging and evolving green industries and occupations.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

• Increased costs to the California Environmental Protection Agency (CalEPA), potentially in the hundreds of thousands of dollars annually, to house, staff and provide administrative support to the Committee (General and/or special funds).

• The bill would require the State Energy Resources Conservation and Development Commission, the Public Utilities Commission, the ARB and potentially other state agencies implementing clean energy and low-carbon policies and programs to issue reports annually through 2020, as specified. To the extent that they cannot be integrated with those already statutorily required, these reports are likely to cost in the tens of thousands of dollars per agency, per year. (General Fund and/or special funds).

SUPPORT: (Verified 6/1/15)

Alliance for Solar Choice

American Lung Association, California

Audubon Caifornia

Azul

Bloomenergy

California League of Conservation Voters

California State Association of Electrical Workers

California State Pipe Trades Council

CALSTART

Environment California

Environmental Defense Fund

Natural Resources Defense Council

Sierra Club

Solar City

Solar Energy Industries Association

Sunrun

Union of Concerned Scientists

Western States Council of Sheet Metal Workers

OPPOSITION: (Verified 6/1/15)

None received

ARGUMENTS IN SUPPORT: Supporters state that this bill will create jobs and foster more innovation in workforce development practices within the clean energy economy and it will be helpful, as the Legislature and Governor articulate next steps for a more distributed clean energy economy, to have a committee that can advise state agencies on program implementation.

Prepared by: Sarah Mason / B., P. & E.D. / (916) 651-4104

6/1/15 18:32:42

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 189 (Hueso) - Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee.

SUSPENSE FILE. AS AMENDED.

Bill Summary:

SB 189 would establish the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) to advise state agencies regarding (1) the most effective ways to allocate clean energy and greenhouse gas-related funds, and (2) to implement policies that maximize economic and employment benefits.

Fiscal Impact (as approved on May 28, 2015):

• Increased costs to the California Environmental Protection Agency (CalEPA), potentially in the hundreds of thousands of dollars annually, to house, staff and provide administrative support to the Committee (General and/or special funds).

• The bill would require the State Energy Resources Conservation and Development Commission, the Public Utilities Commission (PUC), the State Air Resources Board (ARB) and potentially other state agencies implementing clean energy and low-carbon policies and programs to issue reports annually through 2020, as specified. To the extent that they cannot be integrated with those already statutorily required, these reports are likely to cost in the tens of thousands of dollars per agency, per year. (General Fund and/or special funds).

Background:

There are a number of entities throughout state government aimed at increasing workforce and economic development efforts, with a particular emphasis on emerging technology, green jobs and the green economy.

The Commission for Economic Development provides bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the State. The commission is tasked with, among other things, (1) assessing specific regional or local economic development problems and making recommendations for solving problems, (2) identifying and reporting important secondary effects on economic development of programs and regulations which may have other primary purposes, and (3) undertaking specialized studies and preparing specialized reports at the request of the Governor or Legislature.

The California Workforce Investment Board (CWIB) develops a unified, strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development. CWIB has adopted “sector strategies” as the statewide framework for workforce development and works with partners, including other state agencies, to support the emergence of effective statewide and regionally driven sector initiatives.

The California Green Collar Jobs Council (GCJC) performs specified tasks related to addressing the workforce needs that accompany California’s growing green economy under the purview of CWIB. GCJC makes recommendations and creates strategies for comprehensive and effective workforce training opportunities to help prepare California’s current and future workforce to meet the skills demand from businesses supporting the energy efficiency and clean energy sectors. Additionally, GCJC is tasked with developing, collecting, analyzing, and distributing statewide and regional labor market data on California’s new and emerging green industries workforce needs, trends, and job growth and identifying funding resources and making recommendations on how to expand and leverage these funds. CWIB is required to report annually to the Legislature on the status of GCJC activities, grants awarded, and its development and implementation of a green workforce strategic initiative.

The Governor’s Office of Business and Economic Development Office (GO-Biz) serves as California’s single point of contact for economic development and job creation efforts. GO-Biz markets the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state. The iHub program within GO-Biz designated ‘iHubs’ within the state to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform for startup businesses, economic development organizations, business groups, and venture capitalists. These assets may include, but are not limited to, research parks, technology incubators, universities, and federal laboratories.

Proposed Law:

This bill would do all of the following:

• Create the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) consisting of seven members, as follows: five members appointed by the Governor, subject to Senate confirmation; one member appointed by the Assembly Speaker; and one member appointed by the Senate Committee on Rules. Members shall serve a term of four years and shall not receive per diem or other similar compensation for serving as a Committee member, but may receive reimbursement for actual expenses incurred in connection with the performance of their duties.

• Specify that Committee members have expertise in economic, financial, and policy aspects of clean energy economic growth, job creation, workforce standards, and employment opportunities for disadvantaged workers. Specify that at least two members of the Committee shall have experience working on economic projects in disadvantaged communities.

• Require the Committee to advise state agencies on the most effective ways to expend clean energy and greenhouse gas related gas-related funds and to implement policies in order to maximize California’s economic and employment benefits. Specifically, the Committee would be required to:

  • Develop guidance for tracking and reporting jobs outcomes for state clean energy and low-carbon investments and use this information to evaluate jobs outcomes.

  • In consultation with the Labor and Workforce Development Agency, develop guidance to measure the quantity and quality of jobs created by state investments in clean energy and low-carbon investments, as well as guidance to measure the geographic and demographic distribution of jobs.

  • Advise state agencies on the most effective ways to require responsible contractor standards, as applicable and minimum training and skill certifications for workers to ensure high-quality work for state clean energy and low-carbon investments, and the most effective ways to connect disadvantaged communities and other target populations to good quality jobs and career pathways created by those investments.

  • In consultation with CWIB, advise state agencies on the most effective ways to align state clean energy and low-carbon training funds with existing state workforce development investments and strategies.

• Require the Committee to provide an annual update to the Governor and the Legislature on its activities.

• Require until January 1, 2021, the State Energy Resources Conservation and Development Commission, the Public Utilities Commission, the State Air Resources Board, and any other state agency responsible for implementing clean energy and low-carbon policies and programs to submit an annual progress report to the Governor and Legislature, as specified.

Related Legislation:

• SB 274 (Morrell) would declare the intent of the Legislature to enact legislation that would promote job and business growth and encourage economic development. The bill is currently in the Senate Rules Committee.

• AB 1196 (Eduardo Garcia) would make specified modifications to the Commission for Economic Development, including stating that its purpose is to provide continuing support and guidance on public policies and economic development activities that support job creation and business growth in California. The bill is currently in the Assembly Committee on Jobs, Economic Development and the Economy.

• AB 1030 (Ridley-Thomas) would requires a state agency that allocates moneys from the Greenhouse Gas Reduction Fund to prioritize projects that include project labor agreements with targeted hire goals, community workforce agreements that connect local residents to jobs or training opportunities, or partnerships with training entities that have a proven track record of placing disadvantaged workers in career-track jobs. The bill is currently in the Assembly Natural Resources Committee.

Staff Comments:

The bill as currently drafted gives little guidance concerning how the Committee would be staffed. As noted earlier, the Little Hoover Commission could serve as a proxy; it has a $1 million annual budget and is comprised of seven staff: an executive director, three managers, and three analysts. The Little Hoover’s personnel costs (salaries and benefits) total about $750,000 annually; operating expenses and equipment comprise the other $250,000 per year.

The bill specifies that Committee members would not receive per diem or similar compensation; however, their travel expenses would be reimbursed. Travel expenses for the seven members would likely total in the tens of thousands of dollars annually.

Author Amendments (as adopted on May 28, 2015): Amendments would (1) house the committee inside the CalEPA, and (2) add language to provide agencies with the ability to include the requested info in an existing statutorily required report.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 189 (Hueso) - Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 189 would establish the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) to advise state agencies regarding (1) the most effective ways to allocate clean energy and greenhouse gas-related funds, and (2) to implement policies that maximize economic and employment benefits.

Fiscal Impact:

• The bill does not give guidance on how often the Committee would meet, nor how it would be staffed. Using the Milton Marks “Little Hoover” Commission on California State Organization and Economy (Little Hoover Commission) as a proxy, annual costs to operate and staff the Committee could total in the high hundreds of thousands of dollars annually (General and/or special funds, see Staff Comments).

• The bill would require the State Energy Resources Conservation and Development Commission, the Public Utilities Commission (PUC), the State Air Resources Board (ARB) and potentially other state agencies implementing clean energy and low-carbon policies and programs to issue reports annually through 2020, as specified. These reports are likely to cost at least $50,000 per agency, per year. (General Fund and/or special funds).

Background:

There are a number of entities throughout state government aimed at increasing workforce and economic development efforts, with a particular emphasis on emerging technology, green jobs and the green economy.

The Commission for Economic Development provides bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the State. The commission is tasked with, among other things, (1) assessing specific regional or local economic development problems and making recommendations for solving problems, (2) identifying and reporting important secondary effects on economic development of programs and regulations which may have other primary purposes, and (3) undertaking specialized studies and preparing specialized reports at the request of the Governor or Legislature.

The California Workforce Investment Board (CWIB) develops a unified, strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development. CWIB has adopted “sector strategies” as the statewide framework for workforce development and works with partners, including other state agencies, to support the emergence of effective statewide and regionally driven sector initiatives.

The California Green Collar Jobs Council (GCJC) performs specified tasks related to addressing the workforce needs that accompany California’s growing green economy under the purview of CWIB. GCJC makes recommendations and creates strategies for comprehensive and effective workforce training opportunities to help prepare California’s current and future workforce to meet the skills demand from businesses supporting the energy efficiency and clean energy sectors. Additionally, GCJC is tasked with developing, collecting, analyzing, and distributing statewide and regional labor market data on California’s new and emerging green industries workforce needs, trends, and job growth and identifying funding resources and making recommendations on how to expand and leverage these funds. CWIB is required to report annually to the Legislature on the status of GCJC activities, grants awarded, and its development and implementation of a green workforce strategic initiative.

The Governor’s Office of Business and Economic Development Office (GO-Biz) serves as California’s single point of contact for economic development and job creation efforts. GO-Biz markets the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state. The iHub program within GO-Biz designated ‘iHubs’ within the state to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform for startup businesses, economic development organizations, business groups, and venture capitalists. These assets may include, but are not limited to, research parks, technology incubators, universities, and federal laboratories.

Proposed Law:

This bill would do all of the following:

• Create the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) consisting of seven members, as follows: five members appointed by the Governor, subject to Senate confirmation; one member appointed by the Assembly Speaker; and one member appointed by the Senate Committee on Rules. Members shall serve a term of four years and shall not receive per diem or other similar compensation for serving as a Committee member, but may receive reimbursement for actual expenses incurred in connection with the performance of their duties.

• Specify that Committee members have expertise in economic, financial, and policy aspects of clean energy economic growth, job creation, workforce standards, and employment opportunities for disadvantaged workers. Specify that at least two members of the Committee shall have experience working on economic projects in disadvantaged communities.

• Require the Committee to advise state agencies on the most effective ways to expend clean energy and greenhouse gas related gas-related funds and to implement policies in order to maximize California’s economic and employment benefits. Specifically, the Committee would be required to:

  • Develop guidance for tracking and reporting jobs outcomes for state clean energy and low-carbon investments and use this information to evaluate jobs outcomes.

  • In consultation with the Labor and Workforce Development Agency, develop guidance to measure the quantity and quality of jobs created by state investments in clean energy and low-carbon investments, as well as guidance to measure the geographic and demographic distribution of jobs.

  • Advise state agencies on the most effective ways to require responsible contractor standards, as applicable and minimum training and skill certifications for workers to ensure high-quality work for state clean energy and low-carbon investments, and the most effective ways to connect disadvantaged communities and other target populations to good quality jobs and career pathways created by those investments.

  • In consultation with CWIB, advise state agencies on the most effective ways to align state clean energy and low-carbon training funds with existing state workforce development investments and strategies.

• Require the Committee to provide an annual update to the Governor and the Legislature on its activities.

• Require until January 1, 2021, the State Energy Resources Conservation and Development Commission, the Public Utilities Commission, the State Air Resources Board, and any other state agency responsible for implementing clean energy and low-carbon policies and programs to submit an annual progress report to the Governor and Legislature, as specified.

Related Legislation:

• SB 274 (Morrell) would declare the intent of the Legislature to enact legislation that would promote job and business growth and encourage economic development. The bill is currently in the Senate Rules Committee.

• AB 1196 (Eduardo Garcia) would make specified modifications to the Commission for Economic Development, including stating that its purpose is to provide continuing support and guidance on public policies and economic development activities that support job creation and business growth in California. The bill is currently in the Assembly Committee on Jobs, Economic Development and the Economy.

• AB 1030 (Ridley-Thomas) would requires a state agency that allocates moneys from the Greenhouse Gas Reduction Fund to prioritize projects that include project labor agreements with targeted hire goals, community workforce agreements that connect local residents to jobs or training opportunities, or partnerships with training entities that have a proven track record of placing disadvantaged workers in career-track jobs. The bill is currently in the Assembly Natural Resources Committee.

Staff Comments:

The bill as currently drafted gives little guidance concerning how the Committee would be staffed. As noted earlier, the Little Hoover Commission could serve as a proxy; it has a $1 million annual budget and is comprised of seven staff: an executive director, three managers, and three analysts. The Little Hoover’s personnel costs (salaries and benefits) total about $750,000 annually; operating expenses and equipment comprise the other $250,000 per year.

The bill specifies that Committee members would not receive per diem or similar compensation; however, their travel expenses would be reimbursed. Travel expenses for the seven members would likely total in the tens of thousands of dollars annually.

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Bob Wieckowski, Chair

2015 - 2016 Regular

Bill No: SB 189 Hearing Date: 04/15/2014

Subject: Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee

ANALYSIS:

Existing law:

1. Under the California Global Warming Solutions Act of 2006 requires the California Air Resources Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emission reduction measures by regulation (Health and Safety Code §38500 et seq.). The Act requires the ARB to appoint an Economic and Technology Advancement Advisory Committee (ETAAC) to advise on technological research and development opportunities.

2. Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all moneys, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the fund, and requires the Department of Finance, in consultation with the state board and any other relevant state agency, to develop, as specified, a three-year investment plan for the moneys deposited in the GGRF. (Government Code §16428.8)

3. Requires moneys from the GGRF be used to facilitate the achievement of reductions of GHG emissions in this state consistent with the California Global Warming Solutions Act of 2006. Annual budget appropriations of GGRF funds are required to be consistent with the investment plan. (Health and Safety Code §39712)

4. Requires the GGRF investment plan to allocate, at a minimum, 25% of the funds to benefit disadvantaged communities, and to allocate 10% of GGRF monies within disadvantaged communities. (HSC §39713)

5. Under the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (HSC §43865 et seq.) funded through various vehicle and vessel related surcharges, requires the State Energy Resources Conservation and Development Commission (CEC) to implement the Alternative and Renewable Fuels and Vehicle Technology Program (ARFVTP) to provide funding measures to develop and deploy technologies and alternative and renewable fuels in the marketplace to help attain the state’s climate change policies. The CEC is required to develop an investment plan for the program in consultation with an advisory committee, pursuant to specified requirements. An evaluation of the efforts funded by the ARFVTP that includes research, development, and deployment efforts funded by this program is required every two years, beginning in 2011.

6. Under the California Clean Energy Jobs Act, (Proposition 39 passed on November 6, 2012) requires that $550 million be transferred to the Clean Energy Jobs Fund for five fiscal years, beginning in 2013, is available for appropriation by the Legislature for eligible projects to improve energy efficiency and expand clean energy generation in schools. The Act also creates a Citizen’s Oversight Board to review and assess effectiveness of expenditures from the Fund. (Public Resources Code §26200)

7. Under the Electric Utility Industry Restructuring Act, authorizes the Public Interest Renewable Energy Program administered by the CEC, to support the operation of existing renewable facilities as well as the development of new and emerging renewable technologies.

8. Establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s Office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth.  (GOV §§12096 - 12098.5)

9. Under the California Green Collar Jobs Act of 2008 (Unemployment Insurance Code §15000), establishes the Green Collar Jobs Council to focus on developing 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.

10. Establishes the Commission for Economic Development to provide continuing bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the state. (GOV §§14999.8 and 14999.9)

This bill:

1. Creates the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee to consist of five members appointed by the Governor and two members appointed by the Speaker of the Assembly and the Committee on Rules and requires the members to have expertise in economic, financial, clean-energy economic growth, job creation, workforce standards, and employment opportunities for disadvantaged workers.

2. Requires the Committee to advise state agencies on the most effective ways to spend clean energy and greenhouse gas-related funds in order to implement policies to maximize economic and employment benefits in the state and requires the Committee to do the following:

1. Develop guidance for tracking and reporting jobs outcomes for state clean energy and low-carbon investments and use that information to evaluate jobs outcomes.

2. Develop guidance to measure the quantity and quality of jobs created by state investments in clean energy and low-carbon investments, as well as guidance to measure the geographic and demographic distribution of jobs, in consultation with the Labor and Workforce Development Agency.

3. Advise state agencies on the most effective ways to require responsible contractor standards, and minimum worker training and skill certifications to ensure high-quality work for state clean energy and low-carbon investments, and the most effective ways to connect disadvantaged communities and other target populations to good quality jobs created by those investments.

4. Advise state agencies on the most effective ways to align state clean energy and low-carbon training funds with existing state workforce development investments and strategies.

5. Provide annual updates to the Governor and appropriate policy and fiscal Legislative committees on the committee’s activities.

3. Requires CEC, PUC, ARB, and any other state agency responsible for implementing clean energy and low-carbon policies and programs to submit an annual progress report to the Governor and appropriate Legislative committees describing how they implemented or responded to the advice, guidance, and any recommendations provided by the Blue Ribbon committee.

4. Specifies that the above reporting requirement is inoperative on January 1, 2021.

Background

1. Workforce and Economic Development Efforts at the State Level.

There are a number of entities throughout state government aimed at increasing workforce and economic development efforts, with a particular emphasis on emerging technology, green jobs and the green economy.

GO-Biz: The Governor’s Office of Business and Economic Development Office (GO-Biz) serves as California’s single point of contact for economic development and job creation efforts. GO-Biz markets the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state. 

The iHub Program within GO-Biz designate ‘iHubs’ within the state to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform for startup businesses, economic development organizations, business groups, and venture capitalists.  These assets may include, but are not limited to, research parks, technology incubators, universities, and federal laboratories. 

Commission for Economic Development: The commission, consisting of the Lieutenant Governor as Chairperson, three each appointed by Senate Committee on Rules and Assembly Speaker, and 10 members appointed by the Governor, was established to provide bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the state. The commission is tasked with:

1. Assessing specific regional or local economic development problems and making recommendations for solving problems.

2. Providing a forum for ongoing dialogue on economic issues between state government and the private sector.

3. Recommending, where deemed appropriate, legislation to require evaluation of demonstration and ongoing economic development projects and programs to ensure continued cost effectiveness.

4. Identifying and reporting important secondary effects on economic development of programs and regulations which may have other primary purposes.

5. Undertaking specialized studies and preparing specialized reports at the request of the Governor or Legislature.

6. Reporting its activities, findings and recommendations to the Governor and the Legislature annually.

7. Considering programs to further the economic development of the state.

California Workforce Investment Board: The CWIB is charged with developing a unified, strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development. As such, the CWIB has adopted “sector strategies” as the statewide framework for workforce development and works with partners, including other state agencies, to support the emergence of effective statewide and regionally driven sector initiatives.

Green Collar Jobs Council: AB 3018 (Núñez, Chapter 312, Statutes of 2008) created the California Green Collar Jobs Council (GCJC) to perform specified tasks related to addressing the workforce needs that accompany California’s growing green economy under the purview of the CWIB. The GCJC makes recommendations and creates strategies for comprehensive and effective workforce training opportunities to help prepare California’s current and future workforce to meet the skills demand from businesses supporting the energy efficiency and clean energy sectors. The GCJC is also tasked with developing, collecting, analyzing, and distributing statewide and regional labor market data on California’s new and emerging green industries workforce needs, trends, and job growth and identifying funding resources and making recommendations on how to expand and leverage these funds. CWIB is required to report annually to the Legislature on the status of GCJC activities, grants awarded, and its development and implementation of a green workforce strategic initiative.

The GCJC issued a Proposed Jobs and Workforce Development Program Elements for Carbon Reduction Investments in California in January 2014 which proposed “a common approach to workforce development and job creation for California’s multiple public investments in carbon reduction initiatives under the umbrella of AB 32.” According to the proposal:

“California’s energy efficiency, clean energy, and clean transportation programs currently invest several billion dollars each year in incentive programs, public works projects, and a variety of other contracts and subsidies…While the primary purpose of these programs is to meet our energy and carbon reduction targets, these investments create and transform jobs and businesses in a variety of industries in California, particularly the energy, building and construction, and transportation industries. State agencies, utilities, and others responsible for these programs are therefore drivers of economic development and job creation, in addition to their primary role in implementing energy and environmental policy.” The GCJC states “specific program elements for California’s carbon reduction public investment programs…can support a skilled workforce that performs the quality work necessary to accomplish the state’s ambitious energy and environmental goals, while providing career-track jobs for California residents, including those from historically disadvantaged communities.”

2. Clean Energy and Low-Carbon Funds.

1. Energy Efficiency and Alternative Energy Programs.

According to the Legislative Analyst’s Office’s report from December 2012, “Energy Efficiency and Alternative Energy Programs,” excluding cap-and-trade auction revenue as well as revenue from Proposition 39 (described below), “California currently maintains over a dozen major programs that are intended to support the development of energy efficiency and alternative energy in the state. Over the past 10 to 15 years, the state has spent a combined total of roughly $15 billion on such efforts, the vast majority of which has been funded by utility ratepayers. The state’s incentive programs generally fall into one of the four following categories: (1) energy efficiency programs, (2) renewable energy programs, (3) alternative transportation and low-carbon fuels programs, and (4) energy research programs.”

A few examples include:

• IOU Energy Efficiency Programs: The PUC oversees the development and implementation of rebate and incentive programs by Investment Owned Utilities (IOU) for energy users in order to encourage the purchase of energy-efficient appliances and equipment. IOUs have also implemented programs to achieve long-term market transformations in the development of “zero net energy” buildings. These programs are funded through ratepayer utility bills.

• Public Interest Renewable Energy Program: This program is implemented by CEC to support the operation of existing renewable facilities as well as the development of new and emerging renewable technologies, and is funded through a surcharge on IOU electricity bills.

• Alternative and Renewable Fuel and Vehicle Technology Program: This program is implemented by the CEC and funded through vehicle-related surcharges for administering financial assistance in the form of loans and grants to help transform vehicles and fuels to meet the state’s climate change goals.

Additional revenue for greenhouse gas emission reduction as well as energy efficiency programs has been generated from the cap-and-trade program and from the passage of Proposition 39.

2. Cap and Trade Auction Revenue Funds.

ARB conducted nine cap-and-trade auctions between November 2012 and November 2014, generating a total of $970 million in proceeds to the state. A tenth auction was held jointly with Quebec in February of this year, but the proceeds have not yet been published.

Several bills in 2012, and one in 2014, provided legislative direction for the expenditure of auction proceeds including SB 535 (de León) Chapter 830, Statutes of 2012, AB 1532 (J. Pérez) Chapter 807, Statutes of 2012, SB 1018 (Budget Committee) Chapter 39, Statutes 2012, and SB 862 (Budget Committee) Chapter 36, Statutes of 2014.

SB 535 (de León) Chapter 830, Statutes of 2012, requires that 25% of auction revenue be used to benefit disadvantaged communities and requires that 10% of auction revenue be invested in disadvantaged communities.

AB 1532 (J. Pérez) Chapter 807, Statutes of 2012, requires that GGRF monies be used to facilitate the reduction of GHG emissions and further the regulatory purposes of AB 32. The bill also directs the Department of Finance to develop and periodically update a three-year investment plan that identifies feasible and cost-effective GHG emission reduction investments to be funded with cap-and-trade auction revenues.

SB 1018 (Budget Committee) Chapter 39, Statutes of 2012, created the GGRF, into which all auction revenue is to be deposited. The legislation requires that before departments can spend monies from the GGRF, they must prepare a record specifying: (1) how the expenditures will be used, (2) how the expenditures will further the purposes of AB 32 (Nuñez, Pavley) Chapter 488, Statutes of 2006, (3) how the expenditures will achieve GHG emission reductions, (4) how the department considered other non-GHG-related objectives, and (5) how the department will document the results of the expenditures.

SB 862 (Budget Committee) Chapter 36, Statutes of 2014, requires the ARB to develop guidelines on maximizing benefits for disadvantaged communities by agencies administering GGRF funds, and guidance for administering agencies on GHG emission reduction reporting and quantification methods.

3. Legal Consideration of Cap-and-Trade Auction Revenues.

The 2012-13 budget analysis of cap-and-trade auction revenue by the Legislative Analyst’s Office noted that, based on an opinion from the Office of Legislative Counsel, the auction revenues should be considered mitigation fee revenues, and their use requires that a clear nexus exist between an activity for which a mitigation fee is used and the adverse effects related to the activity on which that fee is levied. Therefore, in order for their use to be valid as mitigation fees, revenues from the cap-and-trade auction must be used to mitigate GHG emissions or the harms caused by GHG emissions.

In 2012, the California Chamber of Commerce filed a lawsuit against the ARB claiming that cap-and-trade auction revenues constitute illegal tax revenue. In November 2013, the superior court ruling declined to hold the auction a tax, concluding that it’s more akin to a regulatory fee.

4. AB 32 Auction Revenue Investment Plan.

The first three-year investment plan for cap-and-trade auction proceeds, submitted by Department of Finance, in consultation with ARB and other state agencies in May of 2013, identified sustainable communities and clean transportation as one of the key sectors that provide the best opportunities for achieving the legislative goals and supporting the purposes of AB 32. The plan recommended the aforementioned sector receive the largest allocation of funds from the GGRF, but did not specify a monetary amount.

5. Budget Allocations.

The 2014-15 budget allocates $832 million in GGRF revenues to a variety of transportation, energy, and resources programs aimed at reducing GHG emissions. Various agencies are in the process of implementing this funding. The budget agreement specifies how the state will allocate most cap-and-trade auction revenues in 2015-16 and beyond. For all future revenues, the legislation appropriates 25% for the state’s high-speed rail project, 20% for affordable housing and sustainable communities grants, 10% to intercity capital rail projects, and 5% for low-carbon transit operations. The remaining 40% is available for annual appropriation by the Legislature.

The Governor’s proposed 2015-16 budget assumes the receipt of $650 million in cap-and-trade auction revenues in 2014-15 and $1 billion in 2015-16. The Governor’s proposed 2015-16 cap-and-trade expenditures are largely the same as the 2014-15 plan, albeit with larger amounts allocated for affordable housing and sustainable communities grants, the transit and intercity rail capital program, and the low-carbon transit operations.

3. Prop 39 Revenue.

The California Clean Energy Jobs Act was created with the approval of Proposition 39 in the November 6, 2012, statewide general election. Under the initiative, up to $550 million annually is available to be appropriated by the Legislature for eligible projects to improve energy efficiency and expand clean energy generation. The 2014-15 California Budget Act appropriated $354 million of Proposition 39 revenue primarily for school and community college energy efficiency projects.

Comments

1. Purpose of Bill.

According to the author, “As the Legislature and the Governor articulate next steps for our clean energy and climate policies, it is important to have a permanent and formal committee that can advise agencies implementing such policies on the best ways to maximize expenditure of public funds to ensure the state achieves the greatest economic growth and job creation. SB 189 would establish a high-level expert Blue Ribbon Committee to serve that role of advising state clean energy and climate actions to ensure maximum job creation and economic benefits to California.”

The author notes that the bill was created through collaboration with the Office of the Senate President Pro-Tempore, and is part of the California Climate Leadership Package.

2. Legislative Intent.

The bill’s findings and declarations state that ARB, PUC and CEC have all created advisory committees to help better understand the implications of their clean energy and climate policies and that the purpose of the bill is to create a single independent blue ribbon committee to provide advice to agencies on the most effective ways to maximize the state’s economic benefits and jobs growth via investments in a cleaner economy.

It is unclear whether the bill intends the Blue Ribbon Committee to take the place of, or supersede, existing advisory committees for these investments.

3. Where is the Committee Housed?

The bill does not specify in which agency the Committee will be located. Should the bill be amended to specify which agency the Blue Ribbon Committee will be affiliated with in order to have access to administrative and physical resources necessary to fulfill the requirements of SB 189? Which agency will post information regarding the Blue Ribbon Committee membership and contact information for the Blue Ribbon Committee to ensure transparency?

Additionally, the bill doesn’t provide any guidance on how often or when the Blue Ribbon Committee should meet. Should the bill specify how frequently the Blue Ribbon Committee is required to conduct meetings?

4. Which Funds are Included and Which Agencies will be Advised?

SB 189 requires that the Blue Ribbon Committee advise state agencies on the most effective ways to expend clean energy and greenhouse gas-related funds and to implement policies in order to maximize California’s economic and employment benefits. However, the bill does not specify which funds and investments are included. The state has numerous agencies that implement programs on energy efficiency, renewable and alternative energy, and GHG emissions reductions. The author may wish to provide clarity on this issue as the bill moves forward.

5. Who’s Paying?

Although the bill specifies that the members of the Blue Ribbon Committee shall not receive per diem, SB 189 requires that the members be reimbursed for their actual expenses incurred in connection with the performance of their duties. As the Blue Ribbon Committee’s work will advise various agencies on multiple funds, which fund will be used to cover expenses? Which fund will cover the costs associated with producing the guidance documents and annual reports required in the bill?

As cap-and-trade auction revenues are considered mitigation fees, these monies must be used to mitigate GHG emissions or the harms caused by GHG emissions. Therefore, because there is not a clear nexus to GHG emissions reductions activities and the activities of the Blue Ribbon Committee, the Blue Ribbon Committee should not be funded with cap-and-trade auction revenue, but with another fund that allows expenditures for job growth and economic development advisory committees.

6. So Many Reports.

SB 189 requires CEC, PUC, ARB, and any other agency responsible for implementing clean energy and low-carbon policies, to submit an annual report to the Governor and the Legislature describing how it implemented or responded to the advice, guidance, and recommendations from the Blue Ribbon Committee.

Although it is important to report whether recommendations from advisory committees are later incorporated into policies and programs, agencies may have valid reasons for not incorporating this advice or guidance, especially if the recommendations conflict with other policy goals of the program. Should there be language in the bill that acknowledges this consideration?

Additionally, the cap-and-trade auction revenue is administered by almost a dozen agencies. Combined with reports from CEC, PUC, and ARB, and agencies administering other clean energy and low-carbon policies and programs (which are not defined in the bill), this bill could require more than 15 new reports per year until 2020.

7. Do we need another economic and green jobs council/committee/panel/commission?

As noted in the background section, there are several entities in the state that already exist in order to advise on economic activity and job growth. For example, the CWIB is charged with strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development.

The Commission for Economic Development was established to provide support and guidance for advancing the overall economic development of the state.

Additionally, the Green Jobs Council makes recommendations and creates strategies for workforce training opportunities, as well as develops, collects, analyzes, and distributes statewide and regional labor market data on green industries workforce needs and trends. They also identify funding resources and make recommendations on how to expand and leverage these funds.

Does the state need another body to advise on economic growth and job creation for clean energy and low-carbon investments, or can an existing entity that currently performs a similar function be tasked with the requirements of the bill?

Related/Prior Legislation

Double Referral to Senate Business, Professions and Economic Development. This measure was heard in Senate Business, Professions and Economic Development Committee on April 6, 2015, and passed out of committee with a vote of 7-1.

SOURCE:

Author

SUPPORT:

None on file

OPPOSITION:

None on file

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SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2015 - 2016 Regular

Bill No: SB 189 Hearing Date: April 6, 2015

Subject: Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee.

SUMMARY: Establishes the Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee to advise state agencies on the most effective ways to allocate clean energy and greenhouse gas related funds and to implement policies that maximize economic and employment benefits.

Existing law:

1. The California Global Warming Solutions Act (Act) requires the California Air Resources Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emission reduction measures by regulation, and sets certain requirements in adopting the regulations.
   (Health and Safety Code (HSC) §38500 et seq.)

2. Requires the ARB to convene an Environmental Justice Advisory Committee (EJAC), to advise the Board in developing the Scoping Plan, and any other pertinent matter in implementing the Act. Requires that the Committee be comprised of representatives from communities in the State with the most significant exposure to air pollution, including, but not limited to, communities with minority populations or low-income populations. Requires the ARB to appoint an Economic and Technology Advancement Advisory Committee (ETAAC) to advise the state board on activities that will facilitate investment in and implementation of technological research and development opportunities, including, but not limited to, identifying new technologies, research, demonstration projects, funding opportunities, developing state, national, and international partnerships and technology transfer opportunities, and identifying and assessing research and advanced technology investment and incentive opportunities that will assist in the reduction of greenhouse gas emissions. Provides that the ETAAC may also advise the ARB on state, regional, national, and international economic and technological developments related to greenhouse gas emission reductions. (HSC § 38591)

3. Establishes the Greenhouse Gas Reduction Fund (GHGRF) in the State Treasury and requires all moneys, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the fund. (Government Code (GC) §16428.8)

4. Requires each state agency, on or before October 1 of each year, to prepare and submit to the agency Secretary the following:

1. A list of measures that have been adopted and implemented by the state agency to meet GHG emission reduction targets and a status report on actual GHG emissions reduced as a result of these measures

2. A list and timetable for adoption of any additional measures needed to meet GHG emission reduction targets.

3. An estimate of the department’s own greenhouse gas emissions, as well as an explanation of any increase or decrease compared to the previous year’s emissions. (GC § 12892)

5. Requires the information to also be submitted in a clear and standardized format on the agency’s Web site in the form of a state agency greenhouse gas emission reduction report card. Requires the report card to compare actions taken and proposed to be taken by individual state agencies and their projected annual GHG emission reductions against the state agency GHG emission reduction targets and statewide GHG emission reduction limits. (Id.)

6. Establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor's Office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth. (GC §§ 12096 - 12098.5)

7. Authorizes GO-Biz to coordinate the development of policies and criteria to ensure that federal grants administered or directly expended by state government advance statewide economic goals and objectives. Authorizes GO-Biz to market the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state. Authorizes GO-Biz to support small businesses by providing information about accessing capital, complying with regulations, and supporting state initiatives that support small business. (GC § 12096.3)

8. Creates the iHub Program within GO-Biz. Requires GO-Biz to designate iHubs within the state to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform for startup businesses, economic development organizations, business groups, and venture capitalists. Provides that the assets may include, but are not limited to, research parks, technology incubators, universities, and federal laboratories. Requires GO-Biz to oversee, coordinate, and provide assistance to each iHub. (GC § 12099.1)

9. Establishes the Commission for Economic Development (Commission) to provide continuing bipartisan legislative, executive branch and private sector support and guidance for the best possible overall economic development of the state. Tasks the Commission with:

1. Assessing specific regional or local economic development problems and making recommendations for solving problems.

2. Providing a forum for ongoing dialogue on economic issues between state government and the private sector.

3. Recommending, where deemed appropriate, legislation to require evaluation of demonstration and ongoing economic development projects and programs to ensure continued cost effectiveness.

4. Identifying and reporting important secondary effects on economic development of programs and regulations which may have other primary purposes.

5. Undertaking specialized studies and preparing specialized reports at the request of the Governor or Legislature advisory committees. (GC §14999)

10. Authorizes the Commission appoint task forces to study and report on specific issues. (GC § 14999.2)

11. Requires the Commission to appoint advisory committees from outside its membership to represent the aerospace, manufacturing, maritime, tourism and world trade segments of the state’s economy, and such other advisory committees as it deems necessary for the purpose of carrying out its responsibilities.
    (GC § 14999.3)

12. Requires the Commission to consider programs to further the economic development of the state and study the laws and programs of other states relating to economic development and the encouragement of business and industry, as well as conferring with governmental officials and representatives of business and industry and any other persons or organizations interested in the promotion of economic development. Requires the Commission to make recommendations concerning legislation affecting the economic development of the state and report annually, no later than February 1 of each year, to the Governor and Legislature on Commission activities, findings and recommendations. (GC §§14999.8 and 14999.9)

13. Establishes the Economic and Workforce Development Program (EWD) within the California Community Colleges System (CCCs), for the purpose of advancing California's economic growth and global competitiveness through high quality education and services focusing on continuous workforce improvement, technology deployment, and business development, consistent with the current needs of the state's regional economies. (Education Code (EC) § 88600-88651 et. seq.)

14. Requires the Chancellor of the CCCs to establish performance measures for the EWD program and contract for an independent evaluation of the effectiveness of the program in achieving the specific program goals and objectives and provide findings of this evaluation to the Legislature no later than March 1, 2016.
    (EC § 88650.5)

15. Establishes the Green Collar Jobs Council (GCJC) under the California Workforce Investment Board to focus on developing 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. Requires the GCJC to:

1. Assist in identifying and linking green collar job opportunities with workforce development training opportunities.

2. Align workforce development activities with regional economic recovery and growth strategies.

3. Develop public, private, philanthropic, and nongovernmental partnerships to build and expand the state’s workforce development programs, network, and infrastructure.

4. Provide policy guidance for job training programs for the clean and green technology sectors to help them prepare specific populations, such as at-risk youth, displaced workers, veterans, formerly incarcerated individuals, and others facing barriers to employment.

5. Develop, collect, analyze, and distribute statewide and regional labor market data on California’s new and emerging green industries workforce needs, trends, and job growth.

6. Collaborate with community colleges and other educational institutions, registered apprenticeship programs, business and labor organizations, and community-based and philanthropic organizations to align workforce development services with strategies for regional economic growth.

7. Identify funding resources and make recommendations on how to expand and leverage these funds.

8. Foster regional collaboratives in the green economic sector. (Unemployment Insurance Code. (UIC) § 15002)

16. Requires the CWIB report to the Legislature on the status of GCJC activities, grants awarded, and its development and implementation of a green workforce strategic initiative on or before April 1, 2011, and annually each April 1 thereafter.
    (UIC § 15003)

This bill:

1. Makes the following findings and declarations:

1. Numerous analyses have shown that California’s world leadership in clean energy and greenhouse gas emission reductions law, and policy have led to major employment and economic benefits as well as to significant environmental and public health benefits.

2. In December 2014, the Advanced Energy Economy Institute issued a report entitled “California Advanced Energy Employment Survey,” which showed that state advanced energy policies have created over 430,000 jobs, an increase of
   5 percent over 2013.

3. The report further showed that California was number one in installed solar capacity and solar jobs, number one in total advanced energy investment, number one in electric vehicle sales, and number two in energy efficiency.

4. In order to ensure that California’s clean energy and climate programs are optimized for maximum economic benefit and job creation, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, and the Public Utilities Commission have all created advisory committees to help them better understand the implications of their clean energy and climate policies.

5. The purpose of this act is to create a single independent blue ribbon committee to provide advice to these and other agencies on the most effective ways to maximize California’s economic benefits and jobs growth via actions and investments in a cleaner, low-carbon economy.

2. Creates The Clean Energy and Low-Carbon Economic and Jobs Growth Blue Ribbon Committee (Committee) in state government consisting of seven members. Establishes the Committee’s membership according to the following: five members appointed by the Governor, subject to Senate confirmation; one member appointed by the Assembly Speaker; and one member appointed by the Senate Committee on Rules. Provides that members shall serve a term of four years and shall not receive per diem or other similar compensation for serving as a Committee member, but may receive reimbursement for actual expenses incurred in connection with the performance of their duties.

2. Specifies that Committee members have expertise in economic, financial, and policy aspects of clean energy economic growth, job creation, workforce standards, and employment opportunities for disadvantaged workers. Specifies that at least two members of the Committee shall have experience working on economic projects in disadvantaged communities.

2. Requires the Committee to advise state agencies on the most effective ways to expend clean energy and greenhouse gas related gas-related funds and to implement policies in order to maximize California’s economic and employment benefits. Requires the Committee to:

1. Develop guidance for tracking and reporting jobs outcomes for state clean energy and low-carbon investments and use this information to evaluate jobs outcomes.

2. In consultation with the Labor and Workforce Development Agency, develop guidance to measure the quantity and quality of jobs created by state investments in clean energy and low-carbon investments, as well as guidance to measure the geographic and demographic distribution of jobs.

3. Advise state agencies on the most effective ways to require responsible contractor standards, as applicable and minimum training and skill certifications for workers to ensure high-quality work for state clean energy and low-carbon investments, and the most effective ways to connect disadvantaged communities and other target populations to good quality jobs and career pathways created by those investments.

4. In consultation with the California Workforce Investment Board, advise state agencies on the most effective ways to align state clean energy and low-carbon training funds with existing state workforce development investments and strategies.

2. Requires the Committee to provide an annual update to the Governor and the appropriate policy and fiscal committees of the Legislature on its activities.

2. Until January 1, 2021, requires The State Energy Resources Conservation and Development Commission, the Public Utilities Commission, the State Air Resources Board, and any other state agency responsible for implementing clean energy and low-carbon policies and programs to submit an annual progress report to the Governor and the appropriate policy and fiscal committees of the Legislature describing how it implemented or responded to the advice, guidance, and any recommendations provided by the Committee.

FISCAL EFFECT:

Unknown. This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

1. Purpose. The Author is the Sponsor of this measure. According to the Author, there is no one state agency responsible for oversight on job creation or maximizing economic growth as we set new standards for reducing greenhouse gas emission. The Author notes that other advisory bodies like the Environmental Justice Advisory Committee (EJAC) and the Economic and Technology Advancement Advisory Committee (ETAAC) were created under the California Air Resources Board (ARB) whereas the Blue Ribbon Committee created in this bill would report directly to the Legislature. The Author states that this stand-alone committee will be tasked with the primary role of advising state agencies on the most effective way to implement clean energy and greenhouse gas reduction policies in order to create more jobs and encourage economic innovation.

The Author provided a 2008 report, Energy Efficiency, Innovation and Job Creation in California from the University of California Berkeley Center for Energy, Resources and Economic Sustainability (CERES) within the Department of Agricultural and Resource Economics which aimed at capturing the impacts of innovation in response to state policies. The report found that household energy savings in California over the last thirty years have contributed over one million additional jobs to the state economy and that these jobs have been concentrated in less energy intensive service sectors, further reducing the state’s carbon footprint and reinforcing its transition to a post-industrial, greener and more sustainable future.

The Author also provided a December 2014 from the Advanced Energy Economy Institute, California Advanced Energy Employment Survey, which noted, based on a survey of more than 2,000 companies doing business in California that advanced energy employment in the state is currently 431,800, an increase of 5 percent over the prior year. The survey concluded that energy efficiency is “far and away the largest segment of the California advanced energy economy, representing 70 percent (303,117) of jobs statewide.”

2. Environmental Justice Advisory Committee (EJAC) and the Economic and Technology Advancement Advisory Committee (ETAAC). AB 32 required ARB to convene advisory committees as part of the implementation of the Act. The Act required ARB to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of GHGs by 2020. On January 25, 2007, ARB appointed the first EJAC to advise it on the Initial Scoping Plan and other climate change programs. EJAC submitted its final recommendations on the proposed AB 32 Scoping Plan on April 11, 2014, noting that, “One of the aspirations of the EJAC and broader social justice movements is that AB 32 can set the stage for investments in a new green economy, creating new green career paths and entrepreneurial opportunities. This scoping plan has a stronger focus on the short lived climate pollutants and greater acknowledgment of the need for deeper sector reductions.”

ETAAC was tasked with advising ARB on activities that will facilitate investment in, and implementation of, technological research and development opportunities including, but not limited to, identifying new technologies, research, demonstration projects, funding opportunities, developing state, national, and international partnerships and technology transfer opportunities, and identifying and assessing research and advanced technology investment and incentive opportunities that will assist in the reduction of greenhouse gas emissions. The Act also authorized ETAAC to advise the ARB on state, regional, national, and international economic and technological developments related to greenhouse gas emission reductions. ETAAC was convened in January 2007 representing a cross-section of the state’s business, academic, government and non-profit communities. ETAAC conducted
9 public meetings across the state and issued a final report in 2008, identifying five major strategies for promoting economic and technology advancement:
(1) accelerating GHG emission reductions; (2) balancing a portfolio of economic and technology policies; (3) creating innovative public funding to complement private investment; (4) fostering international and domestic partnerships; and (5) ensuring effective leadership across all state agencies. The final report noted that, “In addition to mitigating the dire impacts of climate change, effective action on AB 32 can also yield the co-benefits of cleaner air, new industries and jobs here in California.”

2. Workforce and Economic Development Efforts at the State Level. There are a number of entities throughout state government aimed at increasing workforce and economic development efforts, with a particular recent emphasis on emerging technology, green jobs and the green economy.

The federal Workforce Investment Act (WIA) of 1998 provides funding for activities and programs for job training and employment investment in which states may participate, including work incentive and employment training outreach programs. Following passage of the federal WIA, the state established the California Workforce Investment Board (CWIB) and charged it with the responsibility of developing a unified, strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development. There are 49 Local Workforce Investment Boards that plan and oversee the workforce investment system at the local level. The CWIB is charged with developing a unified, strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development. As such, the CWIB has adopted “sector strategies” as the statewide framework for workforce development and works with partners, including other state agencies, to support the emergence of effective statewide and regionally driven sector initiatives.

AB 3018 (Nunez, Chapter 312, Statutes of 2008) created the California Green Collar Jobs Council (GCJC) to perform specified tasks related to addressing the workforce needs that accompany California’s growing green economy under the purview of the CWIB. The GCJC makes recommendations and creates strategies for comprehensive and effective workforce training opportunities to help prepare California's current and future workforce to meet the skills demand from businesses supporting the energy efficiency and clean energy sectors. The GCJC issued a Proposed Jobs and Workforce Development Program Elements for Carbon Reduction Investments in California in January 2014 which proposed “a common approach to workforce development and job creation for California’s multiple public investments in carbon reduction initiatives under the umbrella of AB 32. According to the proposal, “California’s energy efficiency, clean energy, and clean transportation programs currently invest several billion dollars each year in incentive programs, public works projects, and a variety of other contracts and subsidies…While the primary purpose of these programs is to meet our energy and carbon reduction targets, these investments create and transform jobs and businesses in a variety of industries in California, particularly the energy, building and construction, and transportation industries. State agencies, utilities, and others responsible for these programs are therefore drivers of economic development and job creation, in addition to their primary role in implementing energy and environmental policy.” The GCJC states “specific program elements for California’s carbon reduction public investment programs…can support a skilled workforce that performs the quality work necessary to accomplish the state’s ambitious energy and environmental goals, while providing career-track jobs for California residents, including those from historically disadvantaged communities.”

The Economic and Workforce Development Program within the California Community Colleges System works to advance California’s economic growth and global competitiveness through education and services that contribute to continuous workforce improvement, technology deployment, and business development and are consistent with the current needs of the state’s regional economies. Local colleges and business partners form consortia to identify regional workforce needs and priorities, providing assistance to small businesses in the region through local Economic and Workforce Development Centers and train workers. The partnerships enable colleges to develop curricula that address the training needs of local industry. The Centers for Excellence within the EWD has coordinated on several studies to assess the workforce needs of emerging and evolving green industries and occupations.

2. Related Legislation. SB 274 (Morrell) declares the intent of the Legislature to enact legislation that would promote job and business growth and encourage economic development. (Status: The measure is currently pending in the Senate Committee on Rules.)

AB 1196 (Eduardo Garcia) makes changes to the Commission for Economic Development, including stating that the purpose of the Commission is to provide continuing support and guidance on public policies and economic development activities that support job creation and business growth in California. (Status: The measure is currently pending in the Assembly Committee on Jobs, Economic Development and the Economy.)

AB 1030 (Ridley Thomas) requires a state agency that allocates moneys from the Greenhouse Gas Reduction Fund to prioritize projects that include project labor agreements with targeted hire goals, community workforce agreements that connect local residents to jobs or training opportunities, or partnerships with training entities that have a proven track record of placing disadvantaged workers in career-track jobs. (Status: The measure is currently pending in the Assembly Committee on Natural Resources.)

2. Prior Related Legislation. AB 1315 (John A. Perez) of 2013 would have eliminated the GCJC’s requirement to develop a strategic initiative and instead would have required the GCJC to develop, and annually update, a common framework consisting of specified elements to address workforce needs arising from changes in the energy, building and construction, transportation, and other industries impacted by state policies to reduce greenhouse gas emissions.
   (Status: The measure failed passage in the Senate.)

SB 1401 (Lieu) of 2012) would have established additional requirements of the CWIB aimed at better aligning education and workforce investment training systems to meet the needs of today's economy and workforce, primarily through an emphasis on sector strategies. (Status: The bill was held in the Assembly Committee on Appropriations.)

SB 1402 (Lieu, Chapter 361, Statutes of 2012) recast and revised the EWD program within the CCC and extended the program’s sunset date from January 1, 2013, to January 1, 2018.

AB 1532 (John A. Perez, Chapter 807, Statutes of 2012) created the Greenhouse Gas Reduction Fund Investment Plan and Communities Revitalization Act to set procedures for the investment of regulatory fee revenues derived from the auction of greenhouse gas allowances pursuant to the cap and trade program adopted by the ARB under the California Global Warming Solutions Act of 2006.

AB 2696 (Bass, Chapter 396, Statutes of 2010) required the Green Collar Jobs Council to consult with 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 or any other funding sources. The bill also required the California Workforce Investment Board, on or before April 1, 2011, and annually each April 1 thereafter, to report to the Legislature on the status of Council activities, grants awarded, and the development and implementation of a green workforce strategic initiative.

AB 1394 (Bass) of 2009 would have made changes to provisions governing the Green Collar Jobs Council that places additional requirements on the Council and creates a mechanism for the receipt of funds from specified state and federal resources. (Status: The measure was vetoed by Governor Schwarzenegger who called it unnecessary.)

AB 2147 (Swanson) of 2008 would have established the Green Jobs Corps Act of 2008 to fund grants for energy efficiency and renewable worker training programs. (Status: The measure was held in the Assembly Committee on Appropriations.)

AB 2477 (Price) of 2008 set forth legislative findings and declarations relating to green jobs and would have enacted the California Green Jobs Act requiring the Employment Development Department to establish green job training programs, as well as a statewide database for identifying and tracking new jobs and the skills needed to expand the renewable energy and energy-efficient industries.
(Status: The bill was never heard in a policy committee of the Legislature.)

AB 3018 (Nunez, Chapter 132, Statutes of 2008) enacted the California Green Collar Act in order to address the state’s green economy workforce needs. The measure established the California Green Collar Jobs Council under the California Workforce Investment Board to develop the framework, funding strategies, programs, partnerships, and opportunities necessary to address the growing need for a highly skilled and well-trained workforce to meet the state’s growing green economy. The bill required the Council to do the following: assist in identifying and linking green collar job opportunities with workforce development training opportunities in local workforce investment areas; assist in encouraging regional collaboration to meet regional economic demands; create public, private, philanthropic, and nongovernmental partnerships to build and expand the state’s workforce development programs, network, and infrastructure; provide policy guidance for job training programs in the clean and green technology sectors to assist and prepare specific populations, such as at-risk youth, displaced workers, veterans, formerly incarcerated individuals, and others facing barriers to employment; develop, collect, interpret, and distribute statewide and regional labor market data on California’s new and emerging green industries workforce needs, trends, and job growth; identify funding resources and make recommendations on how to expand and leverage these funds; foster regional collaborations in the green economic sector; and report annually to the Legislature on the status of Council activities and its development of an initiative.

AB 32 (Nunez and Pavley, Chapter 488, Statutes of 2006) established the California Global Warming Solutions Act of 2006.

NOTE:

Double-referral to Senate Committee on Environmental Quality.

SUPPORT AND OPPOSITION:

Support:

None on file as of March 31, 2015.

Opposition:

None on file as of March 31, 2015.

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