CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 2204

Introduced by Assembly Member Boerner Horvath

February 15, 2022

An act to add and repeal Part 8.6 (commencing with Section 15563) of Division 3 of Title 2 of the Government Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 2204, as introduced, Boerner Horvath. Clean energy: Office of Clean Energy Workforce.
Existing law, the California Clean Energy Jobs Act, expresses a goal of creating good-paying energy efficiency and clean energy jobs in California. Existing law also expresses the state’s policy that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045.
This bill would establish the Office of Clean Energy Workforce within the Labor and Workforce Development Agency with an executive director appointed by the Governor, with the consent of the Senate, for the purpose of overseeing California’s transition to a sustainable and equitable carbon neutral economy. The bill would also establish the Clean Energy Workforce Board to direct and oversee the office.
This bill would require the office, among other things, to coordinate with relevant state agencies to track the progress of the state moving toward 100% clean energy, as defined, create or coordinate programs with other state agencies to retrain and upskill workers for clean energy jobs, and plan and support the physical relocation of the fossil fuel-based workforce to other areas of the state with existing or new clean energy jobs, as specified.
The bill would repeal these provisions on December 31, 2045.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares the following:
(1) California is a national and international leader on subnational climate change policy, demonstrating that it is possible to reduce emissions while promoting innovation and economic growth.
(2) California’s climate leadership has led to unprecedented growth in clean energy industries and jobs, where one out of six clean energy jobs in America in 2019 was located in the state.
(3) One of the major hurdles in transitioning existing fossil fuels activities to clean energy ones has been the potentially negative economic consequences to workers, businesses, and communities. Planning, setting goals, and conducting ongoing assessments are needed to ensure an equitable and just transition to a zero-emissions future.
(4) According to a report conducted by the Department of Economics and Political Economy Research Institute at the University of Massachusetts, Amherst, A Program for Economic Recovery and Clean Energy Transition in California (June 2021), one-half of all fossil fuel-based jobs in the state will be eliminated by 2030 as the state moves toward reaching its emissions targets. Under this scenario, the total number of workers who would be displaced and need reemployment is 32,000 over a 10-year period.
(5) Despite the state’s greenhouse gas reduction achievements, California lacks a robust workforce development strategy to shift to a clean energy economy and transition to a zero-emissions future.
(6) A strong and comprehensive policy is also needed to invest new financial resources in communities that are seeking to diversify and grow their local and regional economies in a manner that is both sustainable and equitable.
(b) It is the intent of the Legislature to establish an Office of Clean Energy Workforce as an independent entity to, in a focused and coordinated way, oversee and manage the state’s transition.

SEC. 2.

 Part 8.6 (commencing with Section 15563) is added to Division 3 of Title 2 of the Government Code, to read:

PART 8.6. Office of Clean Energy Workforce

15563.
 For purposes of this part, the following definitions apply:
(a) “Office” means the Office of Clean Energy Workforce.
(b) “Board” means the Clean Energy Workforce Board.
(c) “Clean energy” means renewable energy resources and zero-carbon resources as described by Section 454.53 of the Public Utilities Code.
(d) “Energy Commission” means the State Energy Resources Conservation and Development Commission.

15563.2.
 The Office of Clean Energy Workforce is hereby established within the Labor and Workforce Development Agency for the purpose of overseeing California’s transition to a sustainable and equitable carbon neutral economy. The executive director of the office shall be appointed by the Governor with the consent of the Senate.

15563.4.
 The office shall do all of the following:
(a) Coordinate with relevant state agencies, including, but not limited to, the Labor and Workforce Development Agency, the Energy Commission, the Office of Planning and Research, the California Environmental Protection Agency, the Natural Resources Agency, the State Lands Commission, the California Geological Survey, the Public Utilities Commission, and the State Air Resources Board, to track the progress of the state moving toward 100 percent clean energy, including by doing all of the following:
(1) To the extent possible, identifying the timing and location of fossil fuel facility closures and workforce transition needs, including projected impacts on workers, businesses, and communities.
(2) In coordination with the relevant state agencies, establishing timelines for workers to transition from fossil fuel-based jobs to clean energy jobs.
(3) Tracking clean energy jobs and projects and the transition of workers from fossil fuel-based jobs to clean energy jobs.
(b) Create or coordinate programs with other state agencies to retrain and upskill workers for clean energy jobs, including by doing all of the following:
(1) Identifying training needs and gaps in current state programs.
(2) Determining what skills will be needed in the state’s clean energy workforce over the next 25 years.
(3) Establishing ways to address the cost differential in workers’ compensation between fossil fuel-based jobs and clean energy jobs.
(c) Plan and support the physical relocation of the fossil fuel-based workforce to other areas of the state with existing or new clean energy jobs.
(d) In coordination with relevant labor unions and industry employers, determine standards and address early retirement support for workers who will not transition to clean energy jobs, including, but not limited to, buyouts and severance packages. To the extent possible, the office shall provide this support in conjunction with labor unions and industry employers.
(e) In coordination with relevant labor unions and industry employers, address pension funding issues in cases where shortfalls exist that would hinder the retirement of fossil fuel workers. To the extent possible, the office shall provide this support in conjunction with labor unions and industry employers.
(f) On or before January 1, 2024, and annually thereafter, submit a report to the Legislature on the transition and the office’s progress, and make recommendations that address any findings. The office shall submit the report to the Legislature required by this subdivision in compliance with Section 9795.

15563.6.
 (a) The Clean Energy Workforce Board is hereby established within the Labor and Workforce Development Agency to direct and oversee the office.
(b) The board shall do all of the following:
(1) Consistent with this part, set the policy priorities for the office and direct the work of the executive director.
(2) Upon appropriation by the Legislature, approve and allocate funds for the administration of the office and for the execution of the office’s duties under this part, including, but not limited to, all of the following:
(A) Hiring staff and establishing programs and divisions within the office.
(B) Addressing compensation differences between transitioning fossil fuel-based workers and clean energy workers.
(C) Supporting the relocation of workers.
(D) Supporting the early retirement of workers who choose not to transition to clean energy jobs.
(E) Supporting any pension funding shortfalls.
(3) Seek funding opportunities and grants in addition to state funding to support the work of the office.
(4) Coordinate with other state agencies and other entities on common goals.

15563.8.
 (a) Members of the board shall be appointed as follows:
(1) One member shall be the head of the Public Utilities Commission or their designee.
(2) One member shall be the head of the Energy Commission or their designee.
(3) One member shall be the head of the Labor and Workforce Development Agency or their designee.
(4) One member shall be a representative of the state’s pension organizations, to be appointed by the Governor.
(5) Two members shall be representatives of labor organizations, to be appointed by the Speaker of the Assembly.
(6) One member shall be a representative of the clean energy industry, to be appointed by the Senate Committee on Rules.
(b) Members appointed to the board pursuant to paragraphs (4), (5), and (6) of subdivision (a) shall each serve a term of four years.

15563.10.
 This part shall remain in effect only until December 31, 2045, and as of that date is repealed, unless a later enacted statute that is enacted before December 31, 2045, deletes or extends that date.