BILL ANALYSIS Ó
AB 865
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
865 (Alejo) - As Amended May 6, 2015
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|Policy |Utilities and Commerce |Vote:|10 - 3 |
|Committee: | | | |
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| |Jobs, Economic Development, | |6 - 1 |
| |and the Economy | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
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.
COMMENTS:
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)
319-2081
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