BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 865


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          865 (Alejo)


          As Amended September 1, 2015


          Majority vote


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          |ASSEMBLY:  |59-16 |(June 2, 2015) |SENATE: |28-11 |(September 3,    |
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          Original Committee Reference:  U. & C.


          SUMMARY:  Requires the California Energy Commission (CEC) to  
          develop and implement an outreach program to inform certified  
          women, minorities, disabled veterans, and gay, lesbian,  
          bisexual, and transgender (LGBT) businesses of CEC workshops,  
          training, and funding opportunities, as specified. 


          The Senate amendments deleted the requirements on recipients of  
          contracts and grants, and made other clarifying changes.


          EXISTING LAW:  


          1)Requires the CEC to take steps to solicit various loan  
            applications, as specified.  (Public Resources Code Section  
            25412.5)









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          2)Directs the CEC to oversee much of the state's investments in  
            clean energy research, clean transportation, and energy  
            efficiency.  (Public Resources Code Sections 25007, 25008, and  
            25400)


          3)Declares that it is the policy of California to aid in the  
            interests of women, minority, disabled veterans, and LGBT  
            business enterprises, encourage greater economic opportunity  
            for these groups, and promote competition among utilities to  
            procure contracts with diverse businesses.  (Public Utilities  
            Code Section 8281)


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, this bill would have costs of up to $150,000 annually  
          to the Energy Resource Program Account to the CEC for  
          implementation of its outreach program.


          COMMENTS:  


          1)Author's Statement:  "AB 865 will ensure that California's  
            clean energy future is inclusive of diverse communities.  This  
            bill will help working families and working-class communities  
            make economic and environmental gains with its investments.   
            The CEC currently directs much of California's investments in  
            clean energy research, clean transportation, and energy  
            efficiency.  This bill helps ensure California's climate  
            change policies and investments have maximum co-benefits to  
            reduce pollution and poverty."  


           2)Background:  Beginning in 1986, the Legislature enacted a  
            series of statutes, resulting in the adoption of General Order  
            (GO) 156 by the California Public Utilities Commission (CPUC).  
             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  








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            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 CPUC-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. 


          3)CEC Resolution:  On April 8, 2015, the CEC adopted a  
            resolution to implement a policy to reflect the CEC'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 veterans, minority and  
            LGBT-owned businesses, as well as economically disadvantaged  
            and underserved communities, to participate in and benefit  
            from CEC programs.   
             This bill would promote greater implementation of the CEC's  
            resolution by requiring the CEC to develop and implement an  
            outreach program to inform certified women, minorities,  
            disabled veterans, and LGBT businesses of CEC workshops,  
            training, and funding opportunities, as specified. 


          Analysis Prepared by:  Edmond Cheung / U. & C. / (916) 319-2083   
            FN: 0002037



















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