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AB-680 Greenhouse Gas Reduction Fund: California Just Transition Act.(2021-2022)

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Date Published: 02/12/2021 09:00 PM
AB680:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 680


Introduced by Assembly Member Burke

February 12, 2021


An act to add Part 8 (commencing with 38599.10) to Division 25.5 of the Health and Safety Code, relating to the Greenhouse Gas Reduction Fund.


LEGISLATIVE COUNSEL'S DIGEST


AB 680, as introduced, Burke. Greenhouse Gas Reduction Fund: California Just Transition Act.
Existing law, the California Global Warming Solutions Act of 2006, establishes the State Air Resources Board as the agency responsible for monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
This bill would enact the California Just Transition Act, which would require the Labor and Workforce Development Agency to work with the state board to update, by July 1, 2023, the funding guidelines for administering agencies to ensure that all applicants to grant programs funded by the Greenhouse Gas Reduction Fund meet specified standards, including fair and responsible employer standards and inclusive procurement policies, as defined. The bill would require administering agencies to give preference to applicants that demonstrate a partnership with an educational institution or training program targeting residents of disadvantaged, tribal, and low-income communities.
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 world leader on climate policies, demonstrating that it is possible to reduce emissions while promoting innovation and economic growth.
(2) Despite that progress, California lacks a robust workforce development strategy for the new, low-carbon economy that ensures the state’s prosperity remains resilient and that good jobs are developed for targeted communities.
(3) California has a unique opportunity to address the causes of climate change while also addressing income inequality and supporting workers who struggle to access high-quality jobs.
(4) Public investments should help foster an inclusive economy by creating high-quality jobs that benefit our communities and environment.
(5) Chapter 135 of the Statutes of 2017 extended California’s Cap-and-Trade Program to 2030, and asked the California Workforce Development Board to conduct a study on the need for increased training and other resources that may be needed to help communities transition to meet the new economic and labor-market transformations brought about by California’s pursuit of its greenhouse gas reduction goals.
(6) Planning for jobs and workforce development will help protect California’s ambitious climate targets by ensuring communities impacted by state policies and persistent climate change have the resources they need to stay gainfully employed, and that the work conducted in pursuit of those emissions reductions is done to responsible standards.
(b) It is the intent of the Legislature to enact the California Just Transition Act to establish the framework needed to ensure a just transition for communities.

SEC. 2.

 Part 8 (commencing with Section 38599.10) is added to Division 25.5 of the Health and Safety Code, to read:

PART 8. California Just Transition Act

38599.10.
 For purposes of this part, the following definitions apply:
(a) “Access” means that an individual who lives in a disadvantaged or low-income community could reasonably access all services and resources needed to compete for a job, including overcoming barriers to employment or attaining a high-quality job.
(b) “Administering agencies” means state agencies administering grant programs funded by moneys from the Greenhouse Gas Reduction Fund.
(c) “Applicant” means the entity applying for resources from the Greenhouse Gas Reduction Fund.
(d) “Community workforce agreement” means a project labor agreement that includes a targeted hire plan.
(e) “Contractor” means individuals identified pursuant to Section 3353 of the Labor Code.
(f) “Disadvantaged, tribal, and low-income communities” means communities identified pursuant to Section 39713 and members of a Native American group.
(g) “Employee” means individuals identified pursuant to Sections 3351 to 3352.94, inclusive, of the Labor Code.
(i) “Employer” means the entity or individual who compensates an employee.
(j) “Greenhouse Gas Reduction Fund” means the fund created pursuant to Section 16428.8 of the Government Code.
(k) “High-quality job” means a job that facilitates economic mobility by providing retirement benefits, vacation and sick leave, training opportunities, and wages at or above the average median wage of a region.
(l) “Job” means each individual person who is fully or partially considered an employee.
(m) “Labor agency” means the Labor and Workforce Development Agency.
(n) “Prevailing wage” means the basic hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification, or type of work within the locality of a project and in the nearest labor market area.
(o) “Procurement” means a process by which an entity solicits competitive bids for a project or service.
(p) “Project labor agreement” means a collective bargaining agreement between the applicant and one or more labor organizations that establishes the terms and conditions of employment for a specific project.
(q) “Retirement benefits” means an employer-provided retirement plan that is partially or fully paid for by the employer.
(r) “Targeted hire plan” means a strategy from the applicant to demonstrate how they will create jobs for disadvantaged, tribal, and low-income communities, and how they will ensure access to those jobs.

38599.11.
 (a) By July 1, 2023, the labor agency shall work with the state board to update the funding guidelines to administering agencies to ensure that all applicants to grant programs funded by the Greenhouse Gas Reduction Fund meet the following standards:
(1) Fair and responsible employer standards, defined as documented compliance with applicable labor laws and labor-related commitments concerning wages, workplace safety, rights to association and assembly, and nondiscrimination standards.
(2) Inclusive procurement policies, meaning applicant procurement policies that prioritize bids from entities that demonstrate the creation of high-quality jobs or the creation of jobs in disadvantaged, tribal, and low-income communities, or both the creation of high-quality jobs and creation of jobs in those communities.
(3) Prevailing wage for any construction work funded in part or in full by the grant.
(b) Applicants seeking funding for construction projects over one million dollars ($1,000,000) shall provide evidence of a community workforce agreement.
(c) Administering agencies shall give preference to applicants that demonstrate a partnership with an educational institution or training program targeting residents of disadvantaged, tribal, and low-income communities in the same region as the proposed project.
(d) Administering agencies shall give preference to applicants that demonstrate that jobs created through the proposed project will be high-quality jobs.
(e) If an applicant submits information that does not meet the standards established in subdivision (a), the administering agencies shall work with the labor agency to provide guidance to the applicant on how to meet those standards for future grant applications.
(f) Applicants for projects that involve federal funding, technical assistance, and research are exempt from this section.
(g) For the purposes of this section, applicants shall be responsible for ensuring any contractors employed in service to the project funded meet the standards the applicant outlines in their project application.
(h) In implementing this section, the labor agency shall work with administering agencies to leverage existing programs and funding to assist applicants with meeting these standards.