Assembly Committee on Economic Development, Growth, and Household Impact, Tuesday, April 21, 2026
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Assembly Committee on Economic Development, Growth, and Household Impact California State Assembly
Follow its sittingsSpeaker 4
So, taken together, California's transition to an electrified economy combined with aging grid infrastructure and a fragile global supply chain has created a severe shortage of critical grid equipment. The result is higher cost for rate payers, slower clean energy deployment, and increased reliability risks from aging infrastructure. The goal of a b twenty five sixteen is really to take those challenges and create an opportunity. So a b twenty five sixteen will establish the California Grid Manufacturing Initiative within GOBES to address supply chain delays for critical grid infrastructure components through coordinated state action. CGMI will identify critical grid components causing delays to grid build out, coordinate state assistance including centralized procurement where necessary, aggregate aggregate statewide statewide utility demand to reduce costs and shorten lead times, and incentivize in state manufacturing through financial assistance and public private joint ventures.
We really do believe that if we structure this correctly, this could be a, you know, win win win and, deliver improved grid reliability, accelerate California's clean energy deployment, and importantly, thousands of high road jobs for California workers. So, this is an idea and a a proposal that I'm really, really excited about. I'm excited to be joined by a couple of our partners in this work, Dan Appel from UAW and Hunter Stern from IBW.
Speaker 2
Good morning, chair and members. Thank you so much for having us, and thank you to our author for authoring this visionary bill. We're very excited to work with you. My name is Sam Appel. I'm the policy director for the United Auto Workers Region six, which is the Western States division of the United Auto Workers National Union.
So in California, we represent about a 100,000 workers, and those workers include manufacturing workers, thousands of manufacturing workers across a variety of supply chains, many in the clean energy economy and in the traditional fossil fossil fuel economy. We also represent thousands of workers in higher education and thousands of workers in state sciences. And what unites our members is a shared vision around the transition to clean energy, and that vision has three pillars, making life more affordable for working class people, building high quality manufacturing jobs in California, building back to the 100,000 auto jobs that we had in Southern California only one generation ago, but in new diverse array of industries. And three, accelerating on decarbonization. Our members really do care about delivering on climate change and fulfilling California's climate goals.
Speaker 9
So when we approached this mem the member, this year, our author and chair of the energy and utilities committee about this bill, we, were talking about we came to her talking about the electric grid because the electric grid is such a pivotal, sector for intervention when it comes to these three goals. Probably the most strategic sector for building high road economic development and delivering on our climate goals because the grid is where so many of the costs that are gonna fall on our members are coming from over the next two decades. So we modeled with, a a set of a group of academics called the Climate and Community Institute. Can I add?
Speaker 2
impacts of the growth of the electric grid on our members and on, working people in California. And that impact, if we leave the grid as is without any intervention, the cost of inflation just over what we saw from, before the pandemic would be 1 to $200,000,000,000 just in the cost to ratepayers from capital equipment. So that sort of impact is not something we can just leave alone. And as the member said, challenge to opportunity. The intervention to bring down the cost of supply chain equipment is an opportunity to build the higher jobs that we lost in a prior generation.
So if we just do if we just bring 30% of the capital expenditure that the California utilities private utilities, not including public utilities, are gonna spend. If we bring 30% of that CapEx into production in California, that's 12,500 direct jobs. That's 5,000 high road manufacturing jobs directly producing those goods. So we're talking about a level of economic development impact that's really not really comparable to what we could see in other sectors. So that's why this is such an important bill.
And, you know, I think we we were gonna have a a climate person here to talk about, but I'll just highlight quickly. We have about 4.5 gigawatts of renewable energy that's waiting to be deployed onto the grid. And the just that 4.5 gigawatts alone is be is delayed due to, supply chain bottlenecks. So we're talking about the three pillars here that that our members care about, jobs, climate, and affordability. Thank you.
Speaker 1
Thank you. And you could give those to the sergeant. He'll give them to us right now. Thank you. Next witness.
Speaker 5
Yep. Good morning. My name is Hunter Stern. I'm with IBW Local twelve forty five and the coalition of California utility employees. That coalition represents about 65,000 utility workers, electrical workers here in California.
The IVW, generally over a 100,000. Our members build electrical equipment here in California, but it's a fractional amount of what we need. The jobs are good. We're trying to make them a little better through bargaining and training, but the opportunity that chair Petrie Norris identified is really the interesting and and great thing about this bill. We haven't looked at the supply chain.
Speaker 8
We haven't looked at electrical equipment manufacturing as an option to reduce costs and provide the high road jobs that most of the other elements of this transition to clean energy is is is already providing. And it's it's been a really good thing for the IBW. It's been a really good thing for the climate and the air, and then we can make it better. And so I'm honored and very pleased that chair Petrie Norris is bringing this bill. It's great insight, and it's an element we just haven't addressed before.
Speaker 1
Okay. With that, we're gonna go ahead and continue with any witnesses in support of this bill. Are there any witnesses in support of this in the room? Hello, the mister chair and members
Speaker 6
committee. Yvonne Fernandez with the California Labor Fed in support. Thank you.
Speaker 2
Good morning, mister chair and members. Ignacio Hernandez here on behalf of the Communication Workers of America district nine, which covers California, Nevada, Hawaii, and Guam in support, and also on behalf of TURN, Utility Reform Network in support.
Speaker 4
Hi there. Rachel Lussine with Blue Green Alliance. We're a coalition of environmental organizations and labor unions here in support of the bill. Also giving a support on behalf of California Green New Deal Coalition as well as Jobs to Move America. Thank you.
Speaker 5
Good morning. My name is Julia Sebastian. I'm here to represent California Labor for Climate Jobs, a coalition of 17 labor unions across the state. I'm here to offer me to you in support. Thank you.
Speaker 1
K. Thank you. I see no other folks in support. Is there anyone in opposition to this bill? K.
Seeing no one in opposition, we're gonna go ahead and bring it back to committee. Are there any questions to committee members? No? I just wanna thank the author for joining us today. Obviously, this is an important conversation.
I think one of the things that struck from your comments was, you know, ensuring that we, deal with the affordability issue and how consumers are impacted. And, obviously, hearing from your witnesses today, we could see the, importance of this conversation. So thank you to, my colleague, who also chairs, the committee. And so with that, we'll ask, you know, the questions. If the author wants to wrap up.
Speaker 4
Thank you, mister chair. As as California built out our clean energy future, as we electrify our economy, we are making generational and transformative investments. And if we approach this strategically, there really is an opportunity for us to make these investments in a way that is good for workers and creates thousands of high road jobs, is good for ratepayers and brings down cost, and is good for California's economy as a whole. So thank you and respectfully ask for your
Speaker 1
Thank you. At the right time, we have quorum. We'll take a motion in a second, and then we'll consider it then. You. Mister Chair.
Thank you so much. Okay. As we end that first author, we have I see the next author here. Moving to agenda item number five, h c r one seventy three, mister Carrillo from the High Desert. Yes.
With that, mister Carrillo proudly represents the High Desert, and we're gonna go ahead and listen to you.
Speaker 6
Thank you, mister chair and committee members. I'm here today to present assembly concurrent resolution one seven three, which commits to formalizing the sister state relationship between the state of Jalisco, Mexico, and California. As my colleagues know personally from their own bipartisan legislative trips to Mexico, our state and Calisco share long standing cultural, economic, and demographic ties. Those ties between our two states represent a shared past and a collaborative future together in policies ranging from agriculture and labor, technology, and education. This resolution emphasizes diplomacy independent of federal policy shifts, highlighting collaboration and respect instead of confrontation and threats.
This resolution also purposely calls out immigrant protections because that's the reality on the ground being imposed upon our state at this time. It's sad to see a shift away from celebrating the historical contributions of immigrants to our state's agriculture, infrastructure, and culture. That shift should not be widened when it's needed most, we're saying the least. But that doesn't need to be the case. We can rightly raise concerns where they are warranted.
And we can respectfully agree to disagree on policies, but there is an understanding of the need to respectfully work together at a very national level, sometimes with evident which we have evidence ourselves with legislative visits. Let's do that as well. I ask for your support, and I vote on ACR one seven three. Our states and peoples have much we can accomplish together beginning with a World Cup later this year, which is a worldwide celebration. Thank you, mister chair.
Speaker 1
Thank you, mister Carrillo. With that, we'll start with any witnesses in support of ACR. K. We have some folks. Oh, not that.
Okay. K. Seeing no speakers in support, is there anyone in opposition to this ACR? K. Seeing no one else, we'll bring it back to committee.
Are there any questions, committee members? Seeing none, if the I just wanna say thank you to the author. Obviously, you know, having been to some of these delegation conversations and the importance of some of our, you know, trade that we do specifically with Mexico, I think this is an important conversation to continue having. And so thank you for bringing the state to the to the table. And with that, there's no other questions or or concerns from committee.
We'll go ahead and close it with the author.
Speaker 6
Well, thank you, mister chair and committee members. I'm actually was born in Guadalajara, which is the capital of the state of Jalisco. That is one reason I'm here presenting this item to you And in hopes again that we can reestablish what we've been working for, especially at these times when we have reasons to celebrate, like the World Cup and the Olympics coming up soon. And again, the big impacts that we have with the economy shared goals between Calisco and California, and I respectfully ask for your support.
Speaker 1
Thank you, mister Carrillo. At the right time when we have quorum, we're gonna bring it for a motion and a second and consideration. Thank you. Members. Okay.
Let me start there. Yep. And then after that,
Speaker 1
Yep. K. Alright. Alright. Good morning, everyone.
We're gonna continue with today's meeting. It looks like we do have quorum now. Secretary, please call the row.
Speaker 3
Solace, present. Castillo? Here. Castillo, here. Marisucci?
Patel? Petrie Norris?
Speaker 1
Thank you, secretary, for confirming that. Now that we have quorum, we'll also take the consent calendar. Secretary?
K. We have file item number one, a b 2163 Gonzales, do pass, and we refer to the committee on utilities and energy with recommendation to consent calendar. We have file item number three, a c r one sixty four, Baines, to be adopted to consent, And file item number four, ACR one sixty six, Abia Fadias, to be adopted con to consent. Solace?
Aye.
Speaker 3
Castillo, aye. Marasucci? Patel? Petrinores? Aye.
Petrinores, aye. Rodriguez, aye. Rodriguez, aye. Rodriguez, Soria, Wallace, aye. Wallace, aye.
Okay. We'll hold that open for additional votes.
Speaker 1
And secretary, just so we could, have it on record, can I just formally have a motion and a second? I think we jumped into the actual vote right away. We have a move by mister, Winston Wallace. Second. Second by Castillo.
And just move to second, and we already took the roll call.
Speaker 1
And what can you just call the roll call again with the the the final optimist? Yes. Until we this the recording. Just with
Speaker 3
Okay. So for the consent calendar, we had it moved by Wallace, second by Castillo. We had Solace as I, Castillo as I, Petrinoras as I, Rodriguez as I, and Wallace as I.
Speaker 1
And we're gonna leave it open until absolute members come. Mhmm. K. I wanted her to just state it for the record after we read the motion and second so it could be all in sync.
Speaker 1
Move the bill. Moved by Wallace. Is there a second? Second by Rodriguez. Secretary, please take the roll.
Speaker 3
K. That is due pass to appropriations. Selache. Aye. Selache.
Aye. Castillo? Not Bodhi. Castillo. Marisucci.
Patel. Petrie Norris.
Speaker 3
Rodriguez. Soria. Wallace I. Wallace I. Okay.
File item number five, ACR173. Carrillo, do we have a move?
Speaker 3
Petrinores, aye. Rodriguez? Rodriguez, aye. Soria, Wallace? Aye.
Wallace, aye. Okay. We'll leave that open for absent votes.
Speaker 1
Okay. And we're gonna leave the row open for five more minutes. If the absent members could come and vote, they're more than welcome to come. Thank you. Assemblymember Soria?
Presenting. Thank you. Yes. Remember, you were presenting. Thank you for that clarification.
With that, we're gonna have a open the roll call. Go ahead.
Speaker 3
Okay. For the consent calendar, assembly member Soria? Aye. Assembly member Soria I. For file item number two, AB2516.
Is Petrie Norris due passed to appropriations? Soria? Soria, aye. For file item number five, ACR one seventy three Carrillo to be adopted. Soria?
Aye. Soria, aye.
Speaker 1
K. Thank you. And, again, we'll wait till another five minutes for us to wait for the missing members. Thank you. Assemblywoman, Darshan Purcell, thank you for joining.
I know you were in different committees today this morning, so thank you for that. Open the row again. Thank you. Of
Speaker 3
course. We're taking up the consent calendar. Assembly member Patel? Aye. Assembly member Patel, aye.
A file item number 2AB2516, Petrie Norris, do pass to approach. Patel? Aye. Patel, aye. File item number 5ACR173
Speaker 7
Thank you. Good. K. We're gonna go ahead and open the row again for mister Murasuchi. Thank you for joining us.
Speaker 3
Marisuchi, aye. File item number 2AB2516. Petrie Norris due passed to appropriations. Marisuchi?
Speaker 3
Marisucci, aye. File item number five, a c r one seventy three. Carrillo to be adopted. Marisucci?
Speaker 1
wanna say that? Or okay. Now all the bills are out. Mhmm. And with that I'll give the final disposition.
Well, that's what I'm asking. Yes.
Speaker 3
Final disposition. File item number 2AB2516. Vetri Morris, due past due appropriations. 71. That bill is out.
File item number five, ACR Carrillo to be adopted eight o. That is out, and the consent calendar is out.
Speaker 1
Great. Thank you. I'll be billed her out. Consent calendar. And with that, there's no other business.
This hearing is now adjourned. Thank you, everyone.
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