Latest Updates on Agenda 2010
Thursday, May 27, 2010
The Senate Appropriations Committee today approved 10 measures that are part of the Senate Democrats’ Agenda 2010 – a package of legislation designed to create tens of thousands of jobs for Californians, make it easier for businesses to thrive, and prepare a skilled California workforce.
“The only way to increase and sustain California’s tax base is to create high wage jobs,” Steinberg said. “By smartly investing our limited resources to create jobs, help businesses, and prepare a skilled workforce, we can accelerate California’s economic recovery and help resolve our budget problems at the same time.”
Three of the 10 Agenda 2010 measures make direct investments of bond and special funds that will create up to 3,200 jobs for Californians, while also lowering the state’s reliance on fossil fuels, improving flood safety, and protecting our environment. Other measures will stimulate our economy by streamlining the permit process for the private sector and giving a boost to businesses that hire Californians to do work with California money. The remaining measures provide important training opportunities that will help unemployed Californians find high-wage jobs and help provide higher-education fee stability.
A more detailed summary of the Agenda 2010 measures is below.
Direct Investment to Create Construction Jobs:
SB 1193 (Lowenthal/Hancock): This bill streamlines distribution of the state’s Proposition 1D funds – creating jobs, lowering school energy costs, and creating healthier environments for our children. Bureaucratic red tape has caused some $80 million now available in High Performance Incentive Grant Program funds (Proposition 1D, 2006) to remain unclaimed. SB 1193, the K-12 Energy Cost Savings Stimulus Program, quickly enables funding for energy efficiency and energy generation projects at school facilities, providing 1,700construction jobs, lowering schools’ energy consumption, and saving money critically needed for school programs and teachers.
SB 991 (Wolk): SB 991 appropriates $30,000,000 from Proposition 1E (2006 Flood Protection Bond approved by the voters) for Sacramento-San Joaquin Delta flood control and levee repair projects. The sustainability of the Sacramento- San Joaquin Delta is critical to protect the water supplies for 23 million Californians, sustain the multi-billion dollar agricultural economy of the Delta and Central Valley, and to support the ecosystem of the largest estuary on the in the Western Hemisphere. To that end, SB 991 will create some 500 construction jobs and provide flood protection assistance and levee repairs for the Sacramento- San Joaquin Delta.
SB 1326 (Oropeza): This bill backfills funding for the California Conservation Corps so that they can put at-risk young adults between the ages of 18 and 25 to work for the state providing service in environmental conservation, fire protection, land maintenance and emergency response to natural disasters. SB 1326 appropriates $25 million from the Electronic Waste Recycling Fund for much-needed support for the local Community Conservation Corps and create between 500 and 1,000 new jobs for corps members to assist with recycling and litter clean up.
Assist Businesses Doing Business in California:
SB 959 (Ducheny): The “one-stop shop” permitting bill, SB 959 expedites the permitting process for businesses hoping to expand development in California. The bill requires the state Office of Planning Research (OPR) to act as the single point of contact for businesses seeking permits from multiple state agencies. Through use of a single permit application form submitted to OPR, businesses will have an easier path to obtain necessary permits from several state agencies for a single development. The bill would also require cities and counties to improve coordination for review and decision-making relative to all applications and permits for residential, commercial, and industrial developments by a single administrative agency.
SB 967 (Correa): With record unemployment rates in California, SB 967 establishes a preferential bid contracting system to put more Californians to work. Specifically, the bill grants a five percent bid preference to a company seeking to do business with the state that can certify 90 percent of the workers on that contract will be California residents. The bill does not discriminate against out-of-state businesses, focusing only on rewarding bidders that commit to put California to work on the specific contract.
Educate, Retrain and Prepare a Skilled California Workforce:
SB 956 (Romero): Directs $5 million of federal Workforce Investment Act (WIA) funds to school districts, county offices of education and charter schools to retrain laid-off teachers to meet subject matter competency to teach science, math and industrial and technical education. As schools are facing layoffs of some 35,000 teachers, SB 956 proposes to expand teacher retraining opportunities to get teachers back to work and prepare students for productive futures.
SB 964 (Alquist): Appropriates $500,000 in High-Speed Rail bond funds (Proposition 1A) to finance a labor workforce assessment to determine the skills necessary and available in-state workforce to construct, maintain and operate a high-speed rail system in California. Requires the authority to work with industry, labor and state employment training agencies to ensure available training programs are available to provide an in-state workforce with the enhanced skills necessary to develop high-speed rail in California. The high-speed rail project is the largest single transportation project undertaken in this country. It has a ten-year construction period, during which some 600,000 people will be employed to construct, maintain and operate the system.
SB 968 (Negrete-McLeod): This bill will simplify the current process for unemployed workers to seek education or retraining without jeopardizing UI benefits. The bill streamlines the application and approval requirements to receive job training benefits while expanding the type of training providers unemployed works can utilize. By allowing unemployed workers to receive unemployment benefits at the same time as going to school for re-training, the bill provides a measure of security for those seeking to improve their employment situation.
SB 969 (Liu): This bill will establish a long term, predictable and affordable fee policy for the California State University (CSU) and University of California (UC). The bill will cap fee hikes in any given year and limit fees to a specified share of the total cost of education. The bill will also require CSU and UC to better engage students in determining fees levels while enhancing notification about fee levels and financial aid opportunities for needy students. At the California State University, fees have increased almost 180 percent over the last 10 years. SB 969 seeks to provide greater stability, affordability and predictability for California families planning to pay for a college education.
SB 974 (Steinberg): This bill will make changes to existing tax credits for Enterprise Zones, funding tax incentives for businesses that partner with schools to train students for the jobs of the future. The tax incentives will be awarded on a competitive basis to businesses that partner with local schools to provide Career Technical Education to high school students.
Wednesday, April 21, 2010
This week, the Senate concluded policy committee hearings on the package of jobs bills the Democratic members introduced this year, Agenda 2010.
On Monday, the Senate Committee on Environmental Quality passed SB 959 (Ducheny) on One Stop Shops on a bipartisan vote of 7-0.
On Tuesday, Senate Transportation and Housing Committee approved two bills. The committee passed SB 964 (Alquist) on workforce development programs for high speed rail on a vote of 6-2 and also passed SB 1371 (Lowenthal) addressing disbursement of Federal Transportation funds on a bipartisan vote of 8-0.
Today, Senate Education approved SB 974 (Steinberg) regarding funding for career technical programs and SB 969 (Liu) the CA College & University Fee Stabilization Act of 2010 today on bipartisan votes of 8-0.
The passage of these bills would create or secure 59,000 jobs in California.
All Agenda 2010 bills will be heard in Senate Appropriations Committee in order to address the fiscal effect of each bill; many will be heard on Monday, April 26th.
Additionally, over the last week the Governor signed SB 401 (Wolk) to align California’s tax code with the federal tax laws and SB 77 (Pavley) which creates the Property Assessed Clean Energy Program. Between these two bills, over 18,000 California jobs will be created or preserved.
Thursday, April 8, 2010
Senate Democrats continue our progress on Agenda 2010 – a plan for 140,000 jobs. Today, the Senate passed two Agenda 2010 bills: SB 401 (Wolk) and SB 77 (Pavley).
Tax Conformity (SB 401 Wolk)
SB SB 401 (Wolk) mirrors SBX8 32 (Wolk), except for the removal of penalty provisions aggressively opposed by the Governor. The differences between the two bills are explained in the SB 401 fact sheet. The bill is estimated to help preserve or create 7,600 jobs.
By passing SB 401 the Senate has made state tax law align with federal tax law in three important ways:
- Excluding federal grants for renewable energy production from state income taxes.
- Excluding mortgage debt forgiveness arising from short sales is not included in a taxpayer’s income for California tax purposes.
- Updating California law to match federal changes going back to 2005, benefiting California taxpayers and tax preparers by reducing confusion between state and federal law.
The original bill, SB8X 32, was passed by the Legislature but vetoed by Governor Schwarzenegger on March 25 (veto message). The measure included penalties for taxpayers earning in excess of $20 million per year who had filed false claims for tax refunds. This penalty provision was designed to conform with the federal tax law equivalent, which was enacted by President George W. Bush. Despite the state’s fiscal need, Governor Schwarzenegger and large business allies in the California Chamber of Commerce insisted these penalties not be created in law.
As a result, SB 401 will implement other important elements of tax conformity. Specifically, the bill helps homeowners distressed by the record pullback of the residential real estate market who were forced into short sale. The bill allows taxpayers who had all or part of their loan balance forgiven in 2009, 2010, 2011 or 2012 to exclude up to $500,000 of cancellation of indebtedness from their income totals for state tax purposes. Effective on January 1, 2011, the operative date of this provision will be retroactive to short sales on or after January 1, 2009. Once the Governor signs the bill, state taxpayers can immediately take advantage of the short sale tax provision, they do not have to wait until January 2011.
The Franchise Tax Board has confirmed their understanding of this important change in a letter to Senate President pro Tempore Darrell Steinberg.
The bill also further underscores the state’s interest in creating new jobs through investment in renewable energy by excluding federal grants for renewable energy investment from state income tax.
PACE (SB 77 Pavley)
SB 77 will create a state program to standardize Property Assessed Clean Energy (PACE) programs to lower financing costs, enhance investor receptivity of the PACE bonds, and make PACE improvements more attractive to home and business owners. This bill is estimated to create or preserve 10,500 jobs.
More details can be found in the SB 77 fact sheet.
Agenda 2010 Progress
As a result of efforts by Senate Democrats, three Agenda 2010 bills have already been signed by the Governor (SBX8 6, SBX8 34, SB 205). Combined, these bipartisan bills will create over 45,000 jobs.
Over the next few weeks, the remainder of Agenda 2010 bills are scheduled for committee hearings. Senate Democrats hope to complete our work on Agenda 2010 legislation by the end of April.
Tuesday, March 30, 2010
Senate President pro Tem Darrell Steinberg (D-Sacramento) today joined several executives from California’s solar, clean vehicle, and green technology industries to highlight new laws that will create 20,000 jobs for Californians. They also discussed pending job creation bills will move through the State Senate in April, measures that will create an additional 30,000 jobs.
Executives from SunEdison, BrightSource Energy, First Solar, Calisolar, Solyndra, Nanosolar, Propel, Bloom Energy, CALSTART, Clean World Partners, and Simbol Mining described how these bills allow them to create new jobs that will help our economy recover.
“In the first three months of 2010 the Legislature passed legislation creating 20,000 jobs in the new economy,” Steinberg said. “Our work is not over. We will continue to focus our attention on reducing the budget deficit by accelerating California’s economic recovery and creating jobs. The Senate is committed to taking up several more measures that will create 30,500 additional jobs in this growing industry.”
These job creation measures are part of the Senate Democrats’ jobs agenda known as Agenda 2010. Agenda 2010 includes a total of 27 bills designed to create 140,000 jobs for Californians. The Agenda 2010 measures already approved by the Legislature received overwhelming bipartisan support partly because they achieve their goal of creating jobs without raising taxes and without rolling back environmental, consumer, or worker protection laws.
Bills Discussed:
Signed by the Governor:
SBX8 34 (Padilla/Pavley): Eliminates bureaucratic obstacles to the creation of large scale renewable energy projects throughout California. Specifically, the bill expedites planning, permitting, and approval of projects by the California Energy Commission. It gives priority to projects that can quickly create jobs and meet federal stimulus funding incentives within the next year, including at least eleven projects awaiting action by state energy agencies. By expediting these projects at the California Energy Commission, California can access billions of dollars in federal stimulus funds while creating thousands of new jobs. In short, the new law will create new jobs, new tax revenue, and clean energy for California. Creates 15,834 jobs
AB 510 (Skinner): Allows more Californians to reduce their utility costs through use of solar and wind power. AB 510 maintains California’s leadership in renewable energy policy by increasing the current net metering cap needed to continue the California Solar Initiative program. In California, over 50,000 customers, including schools, community colleges, cities and counties and homeowners, representing over 500 megawatts, participate in net metering. Creates or saves up to 5,000 jobs.
SB 71 (Padilla/Alquist): Provides a cost-effective boost to California’s economy by eliminating the sales tax on green energy purchases by businesses. SB 71 enacts a clean tech tax credit, exempting the sales and use tax on tangible personal property utilized for the design, manufacture, production, or assembly of advanced transportation technologies or alternative energy source products, components, or systems.
To Be Taken Up in the Coming Weeks:
SB 722 (Simitian/Padilla): Enacts a workable 33% Renewable Portfolio Standard (RPS) in California to promote in-state job development and renewable energy resources. Last year, the Legislature passed SB 14 (Simitian/Steinberg) and AB 64 (Krekorian) establishing a 33 percent RPS for public and private utilities. The legislation was supported by a broad coalition of energy providers, environmentalists and labor organizations as a realistic target to help create jobs and promote development of renewable energy sources. The target of a 33 percent RPS by 2020 is estimated to create 20,000 jobs, according to the University of California Center for Energy, Resources and Economic Sustainability. The Governor vetoed last year’s bill, but pledged to work with the Legislature to pass a new measure this year. Creates 20,000 jobs.
SB 77 (Pavley): Makes it easier and more affordable for Californians to make their homes and businesses more energy efficient. Specifically, SB 77 creates a state program to standardize Property Assessed Clean Energy (PACE) programs to lower financing costs, enhance investor interest in PACE bonds, and make PACE improvements more attractive to home and business owners. Authorizes a $50 million reserve fund available as credit enhancements for qualified PACE financing programs to further lower financing costs.
PACE allows commercial and residential property owners to finance energy retrofits using bonds and/or loans, with repayment via assessments added to their property tax bill. Using PACE loans, home or commercial property owners can lower energy bills and generate positive economic returns. Creates 10,500 jobs.
SB 401 (Wolk): Creates an economic incentive for renewable energy companies to quickly create jobs by investing millions in federal stimulus funds in California. Conforms state tax law to federal tax law to exclude federal grants for renewable energy production from state income taxes. The ARRA grants for renewable energy projects are one-time, federal tax free grants. They can only be awarded to projects that begin construction by the end of 2010 and are completed by the end of 2016. There are 38 large scale projects in California that are currently eligible for the grant, with another 10 to 15 smaller scale, rooftop projects. Wind generation would account for an additional 18 projects.
This bill also conforms tax law to the federal Mortgage Forgiveness Debt Relief Act and many of the federal income tax laws enacted by Congress in past years.
Thursday, March 11, 2010
Today the Senate and Assembly took final action in the 8th Extraordinary Session. Both houses passed, on a bipartisan basis, SBX8 34 (Padilla) a measure that would provide for expedited siting and permitting of new renewable energy power plants. By expediting these projects through the California Energy Commission, the state can access billions of dollars in federal stimulus funds and create approximately 15,834 new jobs.
The Senate also passed SBX8 32 (Wolk) which would bring California into compliance with recent changes to federal income tax law. By this action, we are making it easier to do business in the state and deter tax fraud.
Finally, the Senate passed SCR 2 (Steinberg) which shuts down the 8th Extraordinary Session; our obligations under Proposition 58 being met with the passage of the package of mid-year budget cuts.
Tuesday, February 23, 2010
In the last week, the Senate passed a number of bills in the Agenda 2010 package. Listed below, the measures will result in the creation of approximately 15,000 jobs. The majority of the bills have received broad bi-partisan support and now will be considered by the Assembly. It is expected that the Assembly will hold hearings this week.
- SBX8 27 (Lowenthal) Federal Housing Trust Funds
- SBX8 29 (Steinberg) Furloughs
- SBX8 31 (Cedillo) Recovery Act Funding for Community Colleges
- SBX8 32 (Wolk) Tax Conformity
- SBX8 34 (Padilla) Renewable Energy Fast Tracking Bill
You can read more about each of these bills on the Agenda 2010 legislative page.
Tuesday, February 9, 2010
Senate Democrats have unveiled Agenda 2010: a plan to create 140,000 jobs. It proposes to do so without dismantling workplace or environmental protections, and it calls for no new taxes. It is a modest package of 27 bills focused on jobs, smart investments, education and families.
Agenda 2010 is broken up into four parts:
- Investment of State and Federal Funds to Improve Infrastructure and Create Jobs
- Expansion of Jobs in the New Economy
- Preparing the State’s Workforce
- Valuing California’s Working Families
You can read about specific proposals on the Agenda 2010 legislation page.
Senate President pro Tem Darrell Steinberg (D-Sacramento) issued a press release outlining the legislative package.
