BILL NUMBER: AB 2181	INTRODUCED
	BILL TEXT


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:

  SECTION 1.  (a) It is the intent of the Legislature to create a
green infrastructure program that would encourage state agencies to
account for and reduce the greenhouse gas emissions associated with
energy-intensive products that are used in major infrastructure
projects and funded in whole or in part with state funds. This
program would reduce the greenhouse gas emissions associated with
energy-intensive products by providing a market for high-quality
goods with the lowest overall greenhouse gas emissions.
   (b) If energy-intensive products are sourced from facilities that
do not comply with California's climate energy goals or if a product
is transported a long distance to the job site, it creates a large
amount of greenhouse gas emissions that is part of the emissions
total California is seeking to reduce by 2020. By ignoring these
emissions, California is shifting the burden of emissions reductions
to other portions of the economy and this places additional burden on
California's businesses and consumers. It would be better for
consumers if the state acknowledges the emissions associated with
large infrastructure projects and crafts a procurement process to
procure a green product, a product that lowers greenhouse gas
emissions while still meeting quality standards.
   (c) Executive Order B-30-15 issued by Governor Edmund G. Brown Jr.
stipulates that "State agencies shall take climate change into
account in their planning and investment decisions and employ full
life-cycle cost accounting to evaluate and compare infrastructure
investments and alternatives." It also notes that state agencies'
planning investments shall be guided by principles that build climate
preparedness and reduce greenhouse gas emissions.
  SEC. 2.  Section 10130 is added to the Public Contract Code, to
read:
   10130.  (a) As used in this section:
   (1) "Project" means a project for infrastructure subject to this
chapter that is estimated to cost one million dollars ($1,000,000) or
more.
   (2) "Energy-intensive product" means a product that is produced by
a company identified by the cap-and-trade program of the State Air
Resources Board as energy intensive, trade exposed.
   (b) (1) On or before January 1, 2018, the department shall 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.
   (2) A report submitted pursuant to paragraph (1) shall be
submitted in accordance with Section 9795 of the Government Code.
   (3) The requirement for submitting a report pursuant to this
subdivision is inoperative on January 1, 2021, pursuant to Section
10231.5 of the Government Code.
   (c) As of January 1, 2018, the department shall incorporate the
greenhouse gas emissions information described in subdivision (b)
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.
  SEC. 3.  Section 10503.5 is added to the Public Contract Code, to
read:
   10503.5.  (a) As used in this section:
   (1) "Project" means a project for infrastructure subject to this
chapter that is estimated to cost one million dollars ($1,000,000) or
more.
   (2) "Energy-intensive product" means a product that is produced by
a company identified by the cap-and-trade program of the State Air
Resources Board as energy intensive, trade exposed.
   (b) (1) On or before January 1, 2018, the Regents of the
University of California shall 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 Regents of the University of California. 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.
   (2) A report submitted pursuant to paragraph (1) shall be
submitted in accordance with Section 9795 of the Government Code.
   (3) The requirement for submitting a report pursuant to this
subdivision is inoperative on January 1, 2021, pursuant to Section
10231.5 of the Government Code.
   (c) As of January 1, 2018, the Regents of the University of
California shall incorporate the greenhouse gas emissions information
described in subdivision (b) into University of California
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.
  SEC. 4.  Section 10727 is added to the Public Contract Code, to
read:
   10727.  (a) As used in this section:
   (1) "Project" means a project for infrastructure subject to this
chapter that is estimated to cost one million dollars ($1,000,000) or
more.
   (2) "Energy-intensive product" means a product that is produced by
a company identified by the cap-and-trade program of the State Air
Resources Board as energy intensive, trade exposed.
   (b) (1) On or before January 1, 2018, the trustees shall 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 trustees. 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.
   (2) A report submitted pursuant to paragraph (1) shall be
submitted in accordance with Section 9795 of the Government Code.
   (3) The requirement for submitting a report pursuant to this
subdivision is inoperative on January 1, 2021, pursuant to Section
10231.5 of the Government Code.
   (c) As of January 1, 2018, the trustees shall incorporate the
greenhouse gas emissions information described in subdivision (b)
into California State University 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.