Amended in Assembly April 11, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 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 amended, 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 begin delete energy-intensive products end delete begin insert emissions-intensive products, as defined, end insert in projects within the jurisdiction of the department. The begin insert bill would require the end insert emissions total begin delete shall end delete begin insert to end insert take into account the greenhouse gas emissions that are produced when the begin delete energy-intensive end delete begin insert emissions-intensive end insert product is manufactured or produced and the greenhouse gas emissions associated with the transportation of the begin delete energy-intensive end delete begin insert emissions-intensive end insert product from the site of its manufacture to the project site. The bill would require the department, as of begin delete January, 1 end delete begin insert January 1, end insert 2018, to incorporate the greenhouse gas emissions information into its procurement processes, including bid specifications, to procure begin delete energy-intensive end delete begin insert emissions-intensive end insert 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 begin delete energy-intensive end delete begin insert emissions-intensive end insert 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 begin delete energy-intensive end delete begin insert emissions-intensive end insert
products by providing a market for high-quality goods with the
lowest overall greenhouse gas emissions.

(b) If begin delete energy-intensive end delete begin insert emissions-intensive end insert 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)  begin delete “Energy-intensive product” end delete begin insert “Emissions-intensive product” end insert
means a product that is produced by begin delete a company end delete begin insert the following
industry sectors, as end insert identified by the cap-and-trade program of the
State Air Resources Board as begin delete energy end delete begin insert emissions end insert intensive, trade

begin delete exposed. end delete begin insert exposed: end insert

begin insert

(A) Cement manufacturing.

end insert begin insert

(B) Flat glass manufacturing.

end insert begin insert

(C) Iron and steel mills.

end insert begin insert

(D) Rolled shape manufacturing.

end insert

(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
begin delete energy-intensive end delete begin insert emissions-intensive end insert 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 begin delete energy-intensive end delete begin insert emissions-intensive end insert product is manufactured
or produced and the greenhouse gas emissions associated with the
transportation of the begin delete energy-intensive end delete begin insert emissions-intensive end insert 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 begin delete energy-intensive end delete begin insert emissions-intensive end insert 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)  begin delete “Energy-intensive product” end delete begin insert “Emissions-intensive product” end insert
means a product that is produced by begin delete a company end delete begin insert the following
industry sectors, as end insert identified by the cap-and-trade program of the
State Air Resources Board as begin delete energy end delete begin insert emissions end insert intensive, trade

begin delete exposed. end delete begin insert exposed: end insert

begin insert

(A) Cement manufacturing.

end insert begin insert

(B) Flat glass manufacturing.

end insert begin insert

(C) Iron and steel mills.

end insert begin insert

(D) Rolled shape manufacturing.

end insert

(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 begin delete energy-intensive end delete begin insert emissions-intensive end insert 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
begin delete energy-intensive end delete begin insert emissions-intensive end insert product is manufactured or
produced and the greenhouse gas emissions associated with the
transportation of the begin delete energy-intensive end delete begin insert emissions-intensive end insert 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 begin delete energy-intensive end delete begin insert emissions-intensive end insert 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)  begin delete “Energy-intensive product” end delete begin insert “Emissions-intensive product” end insert
means a product that is produced by begin delete a company end delete begin insert the following
industry sectors, as end insert identified by the cap-and-trade program of the
State Air Resources Board as begin delete energy end delete begin insert emissions end insert intensive, trade

begin delete exposed. end delete begin insert exposed: end insert

begin insert

(A) Cement manufacturing.

end insert begin insert

(B) Flat glass manufacturing.

end insert begin insert

(C) Iron and steel mills.

end insert begin insert

(D) Rolled shape manufacturing.

end insert

(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 begin delete energy-intensive end delete
begin insert emissions-intensive end insert 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
begin delete energy-intensive end delete begin insert emissions-intensive end insert product is manufactured or
produced and the greenhouse gas emissions associated with the
transportation of the begin delete energy-intensive end delete begin insert emissions-intensive end insert 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 begin delete energy-intensive end delete
begin insert emissions-intensive end insert products with the lowest greenhouse gas
emissions profile that meet standards imposed by a state agency
for quality or safety purposes.