Amended in Assembly April 16, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 865

Introduced by Assembly Member Alejo

February 26, 2015

An act to add Section 25230 to the Public Resources Code, relating to the State Energy Resources Conservation and Development Commission.

LEGISLATIVE COUNSEL’S DIGEST

AB 865, as amended, Alejo. State Energy Resources Conservation and Development Commission: grants and loans: diversity.

The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission. Existing law requires the State Energy Resources Conservation and Development Commission to administer various grant and loan programs.

This bill would require the State Energy Resources Conservation and Development Commission to require that each recipient of a grant or loan, begin insert where the recipient has gross annual revenues exceeding $25,000,000, or a different threshold determined by the commission, end insert as a condition for the receipt of that grant or loan, annually submit a detailed and verifiable plan for increasing procurement from women, minority, disabled veteran, and LGBT business enterprises, as defined, in all categories, including, but not limited to, renewable energy, advanced technologies, and demonstration projects, and furnish an annual report regarding the implementation of programs established pursuant to this requirement. The bill would require the State Energy Resources Conservation and Development Commission to establish guidelines for begin delete all end delete begin insert those end insert grant or loan recipients to utilize in establishing programs pursuant to these requirements. The bill would require the State Energy Resources Conservation and Development Commission to develop, and would require begin delete every end delete begin insert those end insert grant or loan begin delete recipient end delete begin insert recipients end insert to implement, an outreach program to inform and recruit women, minority, disabled veteran, and LGBT business enterprises to apply for procurement contracts. The bill would require the State Energy Resources Conservation and Development Commission to begin delete establish end delete begin insert consider establishing end insert a Diversity Task Force to consider and make recommendations about diversity in the energy industry, including diversity of corporate governing boards and procurement from diverse businesses.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 25230 is added to the Public Resources
Code, to read:

25230.  

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Control” means exercising the power to make policy
decisions.

(2) “Disabled veteran business enterprise” has the same meaning
as defined in Section 999 of the Military and Veterans Code.

(3) “LGBT business enterprise” means a business enterprise
that is at least 51 percent owned by a lesbian, gay, bisexual, or
transgender person or persons, or, in the case of any publicly owned
business, at least 51 percent of the stock of which is owned by one
or more lesbian, gay, bisexual, or transgender persons, and whose
management and daily business operations are controlled by one
or more of those individuals.

(4) “Minority business enterprise” means a business enterprise
that is at least 51 percent owned by a minority group or groups,
or, in the case of any publicly owned business, at least 51 percent
of the stock of which is owned by one or more minority groups,
and whose management and daily business operations are
controlled by one or more of those individuals. The contracting
utility shall presume that minority includes African Americans,
Hispanic Americans, Native Americans, and Asian Pacific
Americans.

(5) To “operate” means to be actively involved in the day-to-day
management. It is not enough to merely be an officer or director.

(6) “Renewable energy project” means a project for the
development and operation of an eligible renewable energy
resource meeting the requirements of the California Renewables
Portfolio Standard Program (Article 16 (commencing with Section
399.11) of Chapter 2.3 of Part 1 of Division 1).

(7) “Women business enterprise” means a business enterprise
that is at least 51 percent owned by a woman or women, or, in the
case of any publicly owned business, at least 51 percent of the
stock of which is owned by one or more women, and whose
management and daily business operations are controlled by one
or more of those individuals.

(b) The commission shall require that each recipient of a grant
or loan administered by the begin delete commission end delete begin insert commission, where the
recipient has annual revenues exceeding twenty-five million dollars
($25,000,000), or a different threshold determined to be
appropriate by the commission, end insert do both of the following as a
condition for the receipt of that grant or loan:

(1) Annually submit a detailed and verifiable plan for increasing
procurement from women, minority, disabled veteran, and LGBT
business enterprises in all categories, including, but not limited to,
renewable energy, advanced technologies, and demonstration
projects. These annual plans shall include short- and long-term
goals and timetables, but not quotas, and shall include methods
for encouraging both prime contractors and grantees to engage
women, minority, disabled veteran, and LGBT business enterprises
in subcontracts in all categories that provide subcontracting
opportunities, including, but not limited to, renewable energy,
advanced technologies, and demonstration projects.

(2) Furnish an annual report to the commission regarding the
implementation of programs established pursuant to this section
in a form that the commission shall require, and at the time that
the commission shall annually designate. Each report shall be a
public document and shall be made readily available on an Internet
Web site either maintained by the grant or loan recipient or by the
commission.

(c) The commission shall establish guidelines for all grant or
loan begin delete recipients end delete begin insert recipients, subject to subdivision (b), end insert to utilize in
establishing programs pursuant to this section.

(d) The commission shall develop, and require every grant or
loan begin delete recipient end delete begin insert recipient, subject to subdivision (b), end insert to implement,
an outreach program to inform and recruit women, minority,
disabled veteran, and LGBT business enterprises to apply for
procurement contracts under this section.

(e)  begin delete The end delete begin insert After receipt of the detailed plans and annual reports,
the end insert commission shall begin delete establish end delete begin insert consider establishing end insert a Diversity
Task Force to consider and make recommendations about diversity
in the energy industry, including diversity of corporate governing
boards and procurement from diverse businesses. begin delete The Diversity
Task Force shall do all the following: end delete begin insert If the commission establishes
a Diversity Task Force, the commission shall consider how it can
address and promote local and targeted hiring. end insert

begin delete

(1) Identify and promote energy companies that are actively
engaged in diversity issues.

(2) Explore the status of diverse representation on energy
company governing boards.

(3) Identify actions that the commission can take to encourage
insurance companies to increase procurement with diverse
suppliers.

(4) Provide recommendations regarding current legislation and
suggest changes to existing law.

end delete