BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 865

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          Date of Hearing:  May 20, 2015


                                 Jimmy Gomez, Chair

          865 (Alejo) - As Amended May 6, 2015

          |Policy       |Utilities and Commerce         |Vote:|10 - 3       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |Jobs, Economic Development,    |     |6 - 1        |
          |             |and the Economy                |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |

          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          This bill requires any contractor or recipient of a grant or  
          loan of $1 million or more from the California Energy Commission  
          (CEC), on or after October 1, 2016, to prepare, implement and  


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          report on an outreach plan for increasing subcontractor  
          opportunities for certified women, minority, disabled veteran,  
          and LGBT business enterprises as specified. 

          This bill also requires CEC to develop an outreach program to  
          inform and recruit the most qualified loan and grant applicants  
          and contractors, including but not limited to women, minority,  
          disabled veteran, and LGBT business enterprises as defined.

          FISCAL EFFECT:

          Increased annual costs of $300,000 (Energy Resources Program  
          Account or other fund) to develop guidelines for the outreach  
          programs, establish policies for funding agreements, and perform  
          additional outreach and tracking activities.


          1)Purpose.  According to the author, CEC currently directs much  
            of California's investments in clean energy research, clean  
            transportation, and energy efficiency.  This bill will help  
            ensure California's climate change policies and investments  
            have the co-benefits of reducing pollution and poverty.  

           2)CEC Resolution.  On April 8, 2015, the CEC adopted a  
            resolution to implement a policy to reflect the Commission's  
            commitment to making sure the widest possible range of  
            Californians participate in existing and future programs.  The  
            resolution specifically aims to maximize opportunities for  
            small businesses, women, disabled veteran, minority and  
            LGBT-owned businesses, as well as economically disadvantaged  


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            and underserved communities, to participate in and benefit  
            from CEC programs.  

           3)Similar PUC programs.  Beginning in 1986, the Legislature  
            enacted a series of statutes, resulting in the adoption of  
            General Order (GO) 156 by the Public Utilities Commission.  

            GO 156 established the Supplier Diversity program, symbolizing  
            an evolving state effort to increase utility contracting with  
            women and minority-owned businesses.  Disabled veterans were  
            added in 1990, and LGBT enterprises were added to the program  
            in 2012.  

            Under GO 156, each electrical, gas, water, and telephone  
            corporation with gross annual revenues exceeding $25 million,  
            and their associated PUC-regulated subsidiaries and  
            affiliates, are required to participate in the Supplier  
            Diversity program.  Under this program, utilities are required  
            to annually submit a detailed and verifiable plan, with goals  
            and timetables, for increasing supplier diversity in all  
            procurement categories. 

          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  


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