BILL ANALYSIS �
AB 340
Page 1
Date of Hearing: April 22, 2013
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 340 (Bradford) - As Introduced: February 13, 2013
SUBJECT : Public utilities: Electric Program Investment Charge:
disposition.
SUMMARY : This bill would require the California Public
Utilities Commission (PUC) to require all grants, contracts,
subsidies, financing, and activities administered through the
Electric Program Investment Charge (EPIC) to comply with General
Order 156 of the PUC.
EXISTING LAW
a)Require each electrical, gas, water, wireless
telecommunications service provider, and telephone corporation
with gross annual revenues exceeding twenty-five million
dollars ($25,000,000) and their commission-regulated
subsidiaries and affiliates, to submit annually, a detailed
and verifiable plan for increasing procurement from women,
minority, and disabled veteran business enterprises in all
categories, including, but not limited to, renewable energy,
wireless telecommunications, broadband, smart grid, and rail
projects. (Public Utilities Code 8283)
b)Requires the PUC shall establish guidelines for all
electrical, gas, water, wireless telecommunications service
providers, and telephone corporations to be utilized in
supplier diversity programs.
c)Requires the PUC to provide an annual progress report to the
Legislature on Supplier Diversity.
d)An existing decision of the PUC institutes an EPIC to fund
renewable energy and research, development, and demonstration
programs administered by Investor Owned Utilities (IOUs) and
the California Energy Commission (CEC).
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement . The State has adopted and funded millions
of dollars in job training programs in energy efficiency and
renewable energy technologies. After the training is complete
AB 340
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we need to make sure that jobs are available for these
graduates. And these jobs should not be limited to just
construction jobs - they need to include all of the types of
jobs common in the energy industry, such as technical support,
administration, legal, finance, engineering, economics,
management, and entrepreneur. Currently ratepayer funded
energy research programs do not have to report on their
programs and progress toward including women, minorities, and
disabled veterans.
My bill would ensure that the EPIC program administrators have
such programs and report on their progress. This is the kind
of program that can help these women, minorities, and disabled
veterans gain the experience that will lead them to better
opportunities in the Executive Offices and Board Rooms of
California energy companies.
2)Supplier Diversity is Working. Since 1986, when California
enacted AB 3678 (Moore) utilities have reporter greater and
greater levels of supplier diversity investment. Today these
investments are creating billions of dollars of economic
activity for these underutilized members of California's
economy. In March 2013, the PUC announced that the companies
participating in its Supplier Diversity Program achieved a new
record, procuring approximately $8.1 billion in goods and
services from women, minority, and disabled veteran-owned
business enterprises.
3)Job Training Programs need Jobs for Graduates. Through the
American Recovery and Reinvestment Act (ARRA) and green
training programs funded by ratepayers many programs have been
created. With the exception of construction apprentice
programs, none have focused on ensuring that employers are
seeking the graduates from these programs or that business
owners of diverse backgrounds are being sought for research,
development, and demonstration opportunities.
4)Suggested Amendments. AB 340 currently requires that the EPIC
program comply with the requirements of GO 156. The author may
wish to amend the language in the bill to include the intent
of GO 156 to establish a program that will encourage inclusion
of women, minorities, and disabled own businesses as prime
contractors and subcontractors within the EPIC.
(b) To promote greater competition among suppliers of
research, development, and demonstration programs and to
expand the available base and encourage greater economic
opportunity for women, minorities, and disabled veteran
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owned businesses historically left out of research,
development, and demonstration programs, the commission
shall establish a program through an existing or new
proceeding or by modifying an existing General Order to
encourage the use of women, minorities, and disabled
veteran owned business as prime contractors for require all
grants, contracts, subsidies, financing, and activities
administered through the EPIC established by Decisions
11-12-035 and 12-05-037, and related and subsequent
decisions, to comply consistent with General Order 156 of
the commission.
(c) Not later than 2014, the commission shall include a
status report on its compliance progress with this section
and increasing participation of women, minorities, and
disabled veteran owned businesses subcontractors in its
annual report to the Legislature.
REGISTERED SUPPORT / OPPOSITION :
Support
California Public Utilities Commission (CPUC) (if amended)
Opposition
None on file.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083