BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 2181

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          Date of Hearing:   April 13, 2016


                               Cristina Garcia, Chair

          AB 2181  
          (Brown) - As Amended April 11, 2016

          SUBJECT:  Public contracts:  contract specifications

          SUMMARY:  Requires specified state departments, the University  
          of California (UC), and the California State University (CSU) to  
          evaluate the impact of greenhouse gas (GHG) emissions on certain  
          infrastructure projects and incorporate GHG emissions  
          considerations into their procurement processes.

          Specifically, this bill:  

          1)Requires specified state departments, UC, and CSU to report to  
            the Legislature by January 1, 2018, on GHG emissions  
            associated with specific emission-intensive sectors for  
            infrastructure projects that cost $1 million or more.

          2)Defines the industries to include cement manufacturing, flat  
            glass manufacturing, iron and steel mills, and rolled steel  
            shape manufacturing.

          3)Requires by January 1, 2018, specified state departments, UC,  
            and CSU to incorporate GHG information into their procurement  


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            processes to procure emissions-intensive products with the  
            lowest GHG impacts.

          EXISTING LAW:  

          1)Requires the Air Resources Board (ARB), pursuant to the  
            California Global Warming Solutions Act of 2006 (AB 32), to  
            adopt a statewide GHG emissions limit equivalent to 1990  
            levels by 2020 and adopt regulations to achieve maximum  
            technologically-feasible and cost-effective GHG emission  

          2)Requires state agencies, when purchasing specified products in  
            11 categories, to buy those at specified levels that contain  
            minimum amounts of recycled-content material.

          FISCAL EFFECT:  Unknown

          COMMENTS:  This bill requires state departments, including the  
          Department of Water Resources, Department of Transportation,  
          Department of Boating and Waterways, Department of Corrections  
          and Rehabilitation, Military Department, and Department of  
          General Services, as well as the UC and CSU to report to the  
          Legislature information about GHG emissions impacts of  
          infrastructure projects that cost $1 million or more.  

          Additionally, the entities must incorporate this information  
          into their procurement processes, including bid specifications,  
          to purchase emission-intensive products with the lowest GHG  
          emissions profile that meet state quality or safety standards.  

          Previous unsuccessful legislation would have given a specified  
          bidding preference to companies that provide environmentally  


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          preferred purchasing.  The approach of this bill is different,  
          as it does not set a preference between conventional and  
          environmentally-preferable alternatives.  Instead, it requires  
          state entities to consider GHG emissions as a factor in  
          evaluating potential bidders under their procurement processes.   

          According to the author, this bill will "create a green  
          infrastructure/sustainability policy that would reduce the GHG  
          emissions associated with energy-intensive materials used in the  
          construction of large infrastructure projects."

          The author is focusing on specified industry sectors because  
          products in those areas are considered emission intensive. This  
          bill requires that the emission totals incorporated in  
          procurement processes must account for both the GHG emissions  
          that are produced when the product is manufactured or produced  
          and those associated with transporting the product from where it  
          is made to the job site.

          Considering GHG impacts beyond just the manufacturing impacts is  
          in line with the Governor's Executive Order B-30-15, which  
          directs state agencies to "employ full life-cycle cost  
          accounting to evaluate and compare infrastructure investments  
          and alternatives."

          PRIOR LEGISLATION: AB 963 (Levine) of 2013 would have given a  
          preference for a bidder with a record of environmentally  
          preferable purchasing. The bill died in the Assembly  
          Appropriations Committee.  

          DOUBLE REFERRAL: This measure was previously heard in the  
          Assembly Natural Resources Committee on April 4, 2016, with a  
          vote of 6-1.  


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          Gerdau Steel

          United Steelworkers, District 12


          None on file

          Analysis Prepared by:Scott Herbstman / A. & A.R. / (916)  


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