BILL ANALYSIS Ó
AB 2181
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Date of Hearing: April 13, 2016
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
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
reductions.
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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REGISTERED SUPPORT / OPPOSITION:
Support
Gerdau Steel
United Steelworkers, District 12
Opposition
None on file
Analysis Prepared by:Scott Herbstman / A. & A.R. / (916)
319-3600
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