Oregon Public Broadcasting

A production line of energy efficient light bulbs

An Oregon non-profit has won a sizable federal stimulus grant in the state of California.  However, the move has created quite a stir in the legislature in Sacramento.

The grant was awarded to Portland-based Portland Energy Conservation, Inc., that goes by the name PECI. It’s for $18.8 million to improve energy efficiency throughout California. 

PECI works on large and small projects across the country to increase energy savings.

Lawrence Orsini, director of the Portland non-profit, said PECI was picked for the grant because it was seen as an organization that could create jobs.

"I really think it was the number of jobs that we were talking about creating and the innovation of the approach.  This approach, what we are hoping to do here is spur additional work in the industry, through the California utilities themselves. And point contractors and unemployed persons at this energy efficiency and green jobs industry," he said.

However, California State Senator Alex Padilla said he has several different complaints about the grant and the way it was awarded.

Padilla, who represents a district in northern Los Angeles, said the California Energy Commission still needs to justify awarding a stimulus grant to an out-of-state company.

"I think the applications and the awards should be judged based on job creation and economic stimulus within the state of California.  It is the spirit and the intent of the recovery act passed last year by Congress. And to the extent that an out-of-state firm is justified in that context still needs to be explained to the committee," he said.

And, Padilla says that instead of generating new jobs, PECI’s plan will rely heavily on low-paid workers through the California Conservation Corps, which provides employment and training for youth 18 to 25 years old.

"Elements of the proposal included, utilizing, not paying for, utilizing, California Conservation Corps workers who are paid if not minimum wage, then close to minimum wage for their work. Executives in Portland were making upwards of $20,000 a month.... For what they suggest is 5 percent of their time," said Padilla.

PECI Executive Director Phil Welker disputes that claim, saying the Senator has seen an estimate, that includes salaries plus overhead for administrative and technology-related work.

He adds that PECI's direct billing will only be 11 percent of the grant and that his group will pay for the work performed by Conservation Corps workers.

"We subcontract with the California Conservation Corps for the people they provide and their services in managing those people," he said.

Welker says the real issue is where his company is based.  But he says that complaint misses the point.

"They've done some numbers down there about where this money went and they've find only 5 percent went to Los Angeles area companies and the rest went elsewhere and then there is this $18 million that went to Oregon. And I think that logic is a little simplistic because most of the companies that are getting these grants, whether it be us or someone else, are running state-wide programs down there," he said.

PECI is still negotiating a contract with the California Energy Commission. The commission declined to comment because those negotiations are ongoing. 

The Senator's energy committee will hold hearings in Sacramento April 6th, and the PECI grant is on the agenda.