California Legislature—2015–16 Regular Session

Assembly BillNo. 2181


Introduced by Assembly Member Brown

February 18, 2016


An act to add Sections 10130, 10503.5, and 10727 to the Public Contract Code, relating to public contracts.

LEGISLATIVE COUNSEL’S DIGEST

AB 2181, as introduced, Brown. Public contracts: contract specifications.

The State Contract Act requires an awarding department, before entering into any contract for a project, to prepare full, complete, and accurate plans and specifications and estimates of cost. That act prohibits, except in specified circumstances, a state agency responsible for letting public works contracts from drafting bid specifications in a manner that limits the bidding to any one concern or product, except under certain circumstances.

Other existing law establishes specific requirements for competitive bidding for building and improvement projects by the Regents of the University of California, including the manner and type of specifications.

The California State University Contract Law governs contracting for building and improvement projects by the California State University and imposes specific competitive bidding requirements for the Trustees of the California State University, including the preparation of specifications for a project.

This bill would require an awarding department, on or before January 1, 2018, to prepare and submit to the Legislature and the Governor a report on the greenhouse gas emissions that are associated with energy-intensive products in projects within the jurisdiction of the department. The emissions total shall take into account the greenhouse gas emissions that are produced when the energy-intensive product is manufactured or produced and the greenhouse gas emissions associated with the transportation of the energy-intensive product from the site of its manufacture to the project site. The bill would require the department, as of January, 1 2018, to incorporate the greenhouse gas emissions information into its procurement processes, including bid specifications, to procure energy-intensive products with the lowest greenhouse gas emissions profile that meet standards imposed by a state agency for quality or safety purposes.

The bill would impose similar requirements on the Regents of the University of California and the Trustees of the California State University.

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

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

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SECTION 1.  

(a) It is the intent of the Legislature to create a
2green infrastructure program that would encourage state agencies
3to account for and reduce the greenhouse gas emissions associated
4with energy-intensive products that are used in major infrastructure
5projects and funded in whole or in part with state funds. This
6program would reduce the greenhouse gas emissions associated
7with energy-intensive products by providing a market for
8high-quality goods with the lowest overall greenhouse gas
9emissions.

10(b) If energy-intensive products are sourced from facilities that
11do not comply with California’s climate energy goals or if a
12product is transported a long distance to the job site, it creates a
13large amount of greenhouse gas emissions that is part of the
14emissions total California is seeking to reduce by 2020. By ignoring
15these emissions, California is shifting the burden of emissions
16reductions to other portions of the economy and this places
17additional burden on California’s businesses and consumers. It
18would be better for consumers if the state acknowledges the
19emissions associated with large infrastructure projects and crafts
20a procurement process to procure a green product, a product that
21lowers greenhouse gas emissions while still meeting quality
22standards.

P3    1(c) Executive Order B-30-15 issued by Governor Edmund G.
2Brown Jr. stipulates that “State agencies shall take climate change
3into account in their planning and investment decisions and employ
4full life-cycle cost accounting to evaluate and compare
5infrastructure investments and alternatives.” It also notes that state
6agencies’ planning investments shall be guided by principles that
7build climate preparedness and reduce greenhouse gas emissions.

8

SEC. 2.  

Section 10130 is added to the Public Contract Code,
9to read:

10

10130.  

(a) As used in this section:

11(1) “Project” means a project for infrastructure subject to this
12chapter that is estimated to cost one million dollars ($1,000,000)
13or more.

14(2) “Energy-intensive product” means a product that is produced
15by a company identified by the cap-and-trade program of the State
16Air Resources Board as energy intensive, trade exposed.

17(b) (1) On or before January 1, 2018, the department shall
18prepare and submit to the Legislature and the Governor a report
19on the greenhouse gas emissions that are associated with
20energy-intensive products in projects within the jurisdiction of the
21 department. The emissions total shall take into account the
22greenhouse gas emissions that are produced when the
23energy-intensive product is manufactured or produced and the
24greenhouse gas emissions associated with the transportation of the
25energy-intensive product from the site of its manufacture to the
26project site.

27(2) A report submitted pursuant to paragraph (1) shall be
28submitted in accordance with Section 9795 of the Government
29Code.

30(3) The requirement for submitting a report pursuant to this
31subdivision is inoperative on January 1, 2021, pursuant to Section
3210231.5 of the Government Code.

33(c) As of January 1, 2018, the department shall incorporate the
34greenhouse gas emissions information described in subdivision
35(b) into its procurement processes, including bid specifications, to
36procure energy-intensive products with the lowest greenhouse gas
37emissions profile that meet standards imposed by a state agency
38for quality or safety purposes.

39

SEC. 3.  

Section 10503.5 is added to the Public Contract Code,
40to read:

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10503.5.  

(a) As used in this section:

2(1) “Project” means a project for infrastructure subject to this
3chapter that is estimated to cost one million dollars ($1,000,000)
4or more.

5(2) “Energy-intensive product” means a product that is produced
6by a company identified by the cap-and-trade program of the State
7Air Resources Board as energy intensive, trade exposed.

8(b) (1) On or before January 1, 2018, the Regents of the
9University of California shall prepare and submit to the Legislature
10and the Governor a report on the greenhouse gas emissions that
11are associated with energy-intensive products in projects within
12the jurisdiction of the Regents of the University of California. The
13emissions total shall take into account the greenhouse gas emissions
14that are produced when the energy-intensive product is
15manufactured or produced and the greenhouse gas emissions
16associated with the transportation of the energy-intensive product
17from the site of its manufacture to the project site.

18(2) A report submitted pursuant to paragraph (1) shall be
19submitted in accordance with Section 9795 of the Government
20Code.

21(3) The requirement for submitting a report pursuant to this
22subdivision is inoperative on January 1, 2021, pursuant to Section
2310231.5 of the Government Code.

24(c) As of January 1, 2018, the Regents of the University of
25California shall incorporate the greenhouse gas emissions
26information described in subdivision (b) into University of
27California procurement processes, including bid specifications, to
28procure energy-intensive products with the lowest greenhouse gas
29emissions profile that meet standards imposed by a state agency
30for quality or safety purposes.

31

SEC. 4.  

Section 10727 is added to the Public Contract Code,
32to read:

33

10727.  

(a) As used in this section:

34(1) “Project” means a project for infrastructure subject to this
35chapter that is estimated to cost one million dollars ($1,000,000)
36or more.

37(2) “Energy-intensive product” means a product that is produced
38by a company identified by the cap-and-trade program of the State
39Air Resources Board as energy intensive, trade exposed.

P5    1(b) (1) On or before January 1, 2018, the trustees shall prepare
2and submit to the Legislature and the Governor a report on the
3greenhouse gas emissions that are associated with energy-intensive
4products in projects within the jurisdiction of the trustees. The
5emissions total shall take into account the greenhouse gas emissions
6that are produced when the energy-intensive product is
7manufactured or produced and the greenhouse gas emissions
8associated with the transportation of the energy-intensive product
9from the site of its manufacture to the project site.

10(2) A report submitted pursuant to paragraph (1) shall be
11submitted in accordance with Section 9795 of the Government
12Code.

13(3) The requirement for submitting a report pursuant to this
14subdivision is inoperative on January 1, 2021, pursuant to Section
1510231.5 of the Government Code.

16(c) As of January 1, 2018, the trustees shall incorporate the
17greenhouse gas emissions information described in subdivision
18(b) into California State University procurement processes,
19including bid specifications, to procure energy-intensive products
20with the lowest greenhouse gas emissions profile that meet
21standards imposed by a state agency for quality or safety purposes.



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