LEGISLATIVE SUBCOMMITTEE RECOMMENDATION: OPPOSE UNLESS AMENDED
SUMMARY OF BILL:
This bill would establish the California Clean Energy Curriculum and Training Initiative of 2008, which would require the Labor and Workforce Development Agency to develop a standardized training curriculum to help build a skilled workforce in the clean energy sector. The California Public Utilities Commission (CPUC) would be required to fund the California Clean Energy Curriculum and Training Initiative using moneys from the Research, Development and Demonstration (RD&D) budget of the California Solar Initiative (CSI).
The CPUC would also be required to collaborate with industry stakeholders to provide information for the training initiative, provide technical assistance in the development and implementation of the training initiative, and connect industry stakeholders with training programs recognized by the Labor and Workforce Development Agency.
SUMMARY OF SUPPORTING ARGUMENTS FOR RECOMMENDATION:
· The CPUC has already launched the RD&D program and is in the process of selecting a Program Manager to begin the process of grant dissemination. This bill would potentially disrupt the program that has already been launched by the CPUC. If passed, the bill would require the CPUC to revisit the program and potentially require modifications to RD&D contracts.
SUMMARY OF SUGGESTED AMENDMENTS:
Use another source of state workforce development funds to fund the California Clean Energy Curriculum and Training Initiative.
DIVISION ANALYSIS (Energy Division):
· Public Utilities Code 2851 requires $50 million of CSI funds to be allocated "to research, development, and demonstration that explores solar technologies and other distributed generation technologies that employ or could employ solar energy for generation or storage of electricity or to offset natural gas usage"1. Pursuant to this statute, the RD&D Program was established by D.07-09-042 in 2007.
· Per D.07-09-042, 70-85 percent of RD&D funding will be allocated to projects that support research, development and demonstration solar technologies2. AB 2224 would divert funds that would be used to support these projects, and, therefore, undermine the goals of the RD&D program.
· D.07-09-042 states that funding will be allocated through a competitive bid process, and implementation of the RD&D program is currently underway. The CPUC is in the process of selecting a Program Manager for grant dissemination. AB 2224 would require the CPUC to modify D.07-09-042, and possibly require the modification of existing RD&D grant contracts.
· AB 2224 also requires the CPUC "identify revenues allocated to the California Solar Initiative program that could be made available to fund the program". Currently, the entire CSI budget is allocated to programs that are underway or in development. To allocate CSI funding to the California Clean Energy Curriculum and Training Initiative would mean taking funding away from existing programs and may compromise these programs' effectiveness and the goals of the CSI.
· The issue of funding such an initiative could be addressed without legislation. AB 2224 appears to be aimed at similar goals as forth in the RD&D principles that were adopted by the Commission in D.07-09-042 and establish the principles for funding under the grant program. These goals include overcoming significant barriers to adoption of solar and promoting integration of solar technology into the grid by addressing the shortage of skilled labor in the clean energy sector. The California Clean Energy Curriculum and Training Initiative, or any party in support of the goals of such an initiative, could therefore bid for a RD&D grant to achieve these objectives. In other words, solar training and workforce would likely be considered for grants in the existing RD&D program, as already specified by Commission decision.
PROGRAM BACKGROUND:
· The CSI has total budget of $2.167 billion. Of that, $1.897 million is allocated to the General Market Program (including direct incentives for PV and non-PV technologies), $217 is allocated to programs for Low-Income residences, $2.6 million is allocated to a solar hot water pilot program, and $50 million is allocated to the RD&D program.
· Per D 07-09-042, the RD&D Program budget allocates 25 to 30 percent of the budget to Research and Development of solar technologies, 45 to 55 percent of the budget to Demonstration (i.e., activities that bring the technologies closer to market), and 5 to 10 percent to Deployment (i.e., activities that promote widespread commercialization of solar technologies).
LEGISLATIVE HISTORY:
None.
FISCAL IMPACT:
None.
STATUS:
AB 2224 is awaiting hearing in the Assembly Appropriations Committee.
SUPPORT/OPPOSITION:
Support: Environmental California Latino Issues Forum
Opposition: California Manufacturers Technology Association
State Association of Electrical Workers
STAFF CONTACTS:
DaVina Flemings, Legislative Liaison dtf@cpuc.ca.gov
Office of Governmental Affairs (916) 324-5945
Date: May 21, 2008
BILL LANGUAGE:
BILL NUMBER: AB 2224 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 15, 2008
AMENDED IN ASSEMBLY MAY 8, 2008
AMENDED IN ASSEMBLY APRIL 14, 2008
AMENDED IN ASSEMBLY APRIL 1, 2008
INTRODUCED BY Assembly Member De La Torre
FEBRUARY 20, 2008
An act to add Chapter 5 (commencing with Section 3100) to Division
3 of the Labor Code, and to add Section 326 to the Public Utilities
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2224, as amended, De La Torre. California Clean Energy
Curriculum and Training Initiative of 2008.
(1) Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations. A decision of the PUC adopted the California Solar
Initiative, an electrical corporation program to provide incentives
for solar energy systems funded through rates paid by the electrical
corporation ratepayers. Existing law requires the PUC to undertake
certain steps in implementing the California Solar Initiative and
prohibits the PUC from allocating more than $50,000,000 to research,
development, and demonstration that explores solar technologies and
other distributed generation technologies that employ or could employ
solar energy for generation or storage of electricity or to offset
natural gas usage. Existing law requires local publicly owned
electric utilities to initiate a public proceeding to fund a solar
energy program to support the goal of installing 3,000 megawatts of
photovoltaic solar energy in the state.
Existing law establishes the Labor and Workforce Development
Agency, which is responsible for coordinating labor and employment
policy, services, and programs for workers and businesses through its
various component agencies.
This bill would require the Labor and Workforce Development Agency
, by July 1, 2009, to create the California Clean
Energy Curriculum and Training Initiative of 2008 to establish
standardized curriculum for use at schools and provide outreach,
assistance, and guidance to schools on creating clean energy training
programs, as provided. The initiative would be implemented when
the Legislature makes an appropriation of moneys for that purpose.
(2) Existing law authorizes the Department of Finance, with the
concurrence of the Controller, to administratively create funds
necessary to properly manage and account for the financial activities
and resources of the state. The Labor and Workforce Development Fund
was created by the Department of Finance for purposes of receiving
the proceeds of specific penalties related to violations of labor
laws.
This bill would establish the California Clean Energy Curriculum
and Training Initiative Subaccount within the Labor and Workforce
Development Fund within the State Treasury. The bill would require
that, upon the appropriation of moneys by the Legislature to
implement the initiative, the PUC to order
electrical corporations that have collected moneys for research,
development, and demonstration that would be available
for allocation by the PUC pursuant to a specified provision
, to transfer an amount of those moneys ,
equivalent to the amount of the appropriation, to the
subaccount . The moneys transferred to the subaccount would
be available to the Labor and Workforce Development Agency
for purposes of the initiative upon appropriation by the
Legislature .
By requiring moneys collected by electrical corporations to be
transferred to the State Treasury, the bill would impose a tax,
resulting in a change in state taxes for the purpose of increasing
state revenues within the meaning of Section 3 of Article XIII A of
the California Constitution, and thus would require for passage the
approval of 2/3 of the membership of each house of the Legislature.
The bill also would require the Public Utilities Commission to
collaborate with all industry stakeholders to disseminate information
on successful innovations for labor market services and worker
training with respect to clean energy technologies, facilitate the
connection of clean industry stakeholders with training programs
recognized by the Labor and Workforce Development Agency, provide
technical support and information relative to clean energy, and
identify revenues allocated to the California Solar Initiative
program that could be made available to fund the program. Under the
program, the commission would not be permitted to assess or establish
any new fees, surcharges, rates, or any other charges on ratepayers.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) It is the goal of the state to reduce global warming pollution
to 1990 levels by 2020, in part through clean energy technologies.
(b) It is also the goal of the state to install solar energy
systems with a generation capacity equivalent of 3,000 megawatts, to
establish a self-sufficient solar industry in which solar energy
systems are a viable mainstream option for both homes and businesses
in 10 years, and to place solar energy systems on 50 percent of new
homes in 13 years.
(c) It is also the goal of the state to increase energy efficiency
and other clean renewable energy resources such as solar hot water
technologies, wind turbine, and zero energy
zero-energy buildings.
(d) To establish this goal, the state will need a well-trained
workforce, including licensed contractors, journeymen electricians,
preapprentices, apprentices, and inspectors.
(e) Clean energy industries can bring long-term economical
vitality and development to California's cities and rural areas.
(f) It is the goal of the state to expand apprenticeship programs,
preapprenticeship programs, and vocational programs serving the
clean energy industry.
SEC. 2. Chapter 5 (commencing with Section 3100) is added to
Division 3 of the Labor Code, to read:
CHAPTER 5. CALIFORNIA CLEAN ENERGY CURRICULUM AND TRAINING
INITIATIVE OF 2008
3100. This chapter shall be known, and may be cited, as the
California Clean Energy Curriculum and Training Initiative of 2008.
3101. (a) For purposes of this section, the following definitions
apply:
(1) "Clean energy" means energy derived through the use of energy
efficient technologies, and renewable energy technologies that meet
the requirements of the California Renewables Portfolio Standard
Program, including, but not limited to, solar energy systems and
solar water heating systems.
(2) "Curriculum" means complete courses of study that cover those
components necessary to effectively and safely install, inspect, or
repair clean energy systems, and teach others how to do so and
includes, but need not be limited to, all of the following:
(A) Introduction to Photovoltaic Systems, including photovoltaics,
PV Applications, the PV Industry, and Solar Energy Technologies.
(B) Solar Radiation, including array orientation, and Solar
Radiation Data Sets.
(C) Site Surveys and Preplanning, including preliminary
assessment, preparing proposals, and installation planning.
(D) System components and configurations.
(E) Cells, Modules, and Arrays, including photovoltaic cells,
current-voltage-(IV) Curve, and device response.
(F) Batteries and Battery Systems.
(G) Charge Controllers, including features, types, setpoints, and
applications.
(H) Inverters AC Power, power conditioning unit, inverter features
and specifications.
(I) System sizing methodologies and calculations.
(J) Mechanical Integration and mounting configurations.
(K) Electrical Integration, including conductors and wiring
methods, overcurrent protection, disconnects, grounding, and battery
systems.
(L) Utility Interconnection, including interactive distributed
generation.
(M) Permitting and Inspection, including the National Electrical
Code published by the National Fire Protection Association and other
relevant building codes.
(N) Commissioning, Maintenance, and Troubleshooting.
(O) Economic analysis, including estimating, incentives, rebates,
and cost analysis.
(3) "Schools" means state-approved apprenticeship programs,
training programs, technical and vocational schools, community
colleges and universities, high schools, and other public and private
educational institutions operating in the state that have been
approved by the Division of Apprenticeship Standards or registered
with the Bureau of Private Postsecondary and Vocational Education.
(4) "Solar energy system" means a solar energy device that has the
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity, that produces at
least one kilowatt, and not more than five megawatts, alternating
current rated peak electricity, and that meets or exceeds the
eligibility criteria established pursuant to Section 25782 of the
Public Resources Code.
(5) "Solar water heating system" means a solar energy device that
has the primary purpose of reducing demand for natural gas or
electricity through water heating, space heating, or other methods of
capturing energy from the sun to reduce energy consumption in a
building.
(b) In implementing the "California Clean Energy Curriculum and
Training Initiative of 2008, the Secretary of Labor and Workforce
Development shall , by July 1, 2009, do all of the
following:
(1) Direct the Division of Apprenticeship Standards to establish
and convene the Electrical Industry Training Committee to develop a
model Clean Energy Curriculum.
(2) Develop a program utilizing the Division of Apprenticeship
Standards, Employment Training Panel, and the Workforce Investment
Board to provide outreach, assistance, and guidance to schools on
creating clean energy training programs.
3102. (a) There is hereby created the California Clean Energy
Curriculum and Training Initiative Subaccount within the Labor and
Workforce Development Fund within the State Treasury.
(b) The Implementation of the California
Clean Energy Curriculum and Training Initiative shall be subject to
ap propriation of moneys by the Legislature.
(c) Following an
appropriation of moneys by the Legislature pursuant to subdivision
(b), the Public Utilities Commission shall order electrical
corporations that have collected moneys for research, development,
and demonstration that would be available for
allocation by the Public Utilities Commission
commission pursuant to paragraph (1) of subdivision (c) of
Section 2851 of the Public Utilities Code to transfer an amount
of those moneys equivalent to the amount of the
appropriation to the California Clean Energy Curriculum and
Training Initiative Subaccount.
(c)
(d) The moneys transferred pursuant to subdivision
(b) (c) shall be available to the Labor
and Workforce Development Agency for purposes of this chapter
upon appropriation by the Legislature .
SEC. 3. Section 326 is added to the Public Utilities Code, to
read:
326. (a) In order to further the objectives of the California
Solar Initiative and in accordance with the California Clean Energy
Curriculum and Training Initiative of 2008, the Public Utilities
Commission shall do all of the following:
(1) Collaborate with all industry stakeholders to disseminate
information on successful innovations for labor market services and
worker training with respect to clean energy technologies.
(2) Facilitate the connection of clean industry stakeholders with
training programs recognized by the Labor and Workforce Development
Agency as defined in Chapter 5 (commencing with Section 3100) of
Division 3 of the Labor Code.
(3) Provide technical support and information relative to clean
energy technologies to the Electrical Industry Training Committee.
(4) Identify revenues allocated to the California Solar Initiative
program that could be made available to fund the California
Clean Energy Curriculum and Training Program training
programs . The commission shall allocate funds appropriated
for this purpose in equal proportions as follows:
(A) The Workforce Investment Board for the creation of a
preapprenticeship program targeting the clean energy industry as
defined in this act.
(B) The Division of Apprenticeship Standards to provide
supplemental funding for apprenticeship programs serving the clean
energy industry.
(C) The Employment Training Panel for distribution to business in
the clean energy industry.
(b) In adopting and implementing this section, the commission
shall not assess or establish any new fees, surcharges, rates, or any
other charges on ratepayers.
____ CORRECTIONS Text--Page 5.
____
1 PU Code 2851 (C)(c)(1).
2 D.07-09-042, p.3.
