BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2037
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          Date of Hearing:   March 26, 2014

           ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
                                 Jim Frazier, Chair
           AB 2037 (Accountability and Administrative Review Committee) - 
                          As Introduced:  February 20, 2014
           
          SUBJECT  :   Environmentally preferable purchasing

           SUMMARY  :   Requires the Department of General Services (DGS) to  
          track environmentally preferable purchases (EPP) by state  
          agencies and publically report information about these  
          purchases.  Specifically,  this bill  :  

          1)Requires DGS to create a method to track EPP by state  
            agencies.
           
          2)Requires DGS to post annually on its website the type,  
            quantity, and dollar amount of these purchases for each fiscal  
            year. 

           EXISTING LAW  requires DGS to provide state agencies with  
          information and assistance regarding EPP.  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   This bill would require DGS to create a method to  
          track EPP and report information about these purchases on its  
          website each year.  Environmentally preferable purchasing, as  
          defined in the Public Contract Code, refers to the "procurement  
          or acquisition of goods and services that have a lesser or  
          reduced effect on human health and the environment when compared  
          to competing goods or services that serve the same purpose."   
          Essentially, EPP means "buying green." 

          DGS' Procurement Division serves as the lead agency for EPP in  
          California.  To implement the EPP program, DGS has incorporated  
          green options into some statewide contracts that departments can  
          purchase from; worked with departments on requests for proposals  
          to encourage green purchasing on a project-by-project basis;  
          provided state agencies with training and educational materials  
          about green purchasing; and created a green buying guide.

          DGS does not currently track EPP, and is not required to do so  
          under current law.  This lack of tracking means that the types  








                                                                  AB 2037
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          and percentages of state purchases that are environmentally  
          preferable and how these types and percentages have changed over  
          time is unknown. 

          The Assembly Committee on Accountability and Administrative  
          Review held an oversight hearing on June 12, 2013, about the  
          state's procurement of recycled and environmentally preferable  
          products.  DGS stated at the hearing that the department did not  
          know how much the state spends on EPP or what percent of state  
          purchases could be classified as environmentally preferable.
           
          This bill requires DGS to post annually on its website the type,  
          quantity, and dollar amount of EPP for each fiscal year, on or  
          before January 1 of the next fiscal year.  Tracking and  
          reporting on EPP would allow state policymakers to identify both  
          program successes and areas for improvement.  Such information  
          will allow the Legislature and public to better evaluate the EPP  
          program.

          This bill does not specifically direct DGS regarding how to  
          classify a product as environmentally preferable.  The  
          department would instead be tasked with making such  
          determinations.  However, the current section of the Public  
          Contract Code that defines environmentally preferable  
          purchasing" provides some guidance about how to compare  
          conventional goods and services with those that could be  
          considered EPP.  It states that the  "comparison shall take into  
          consideration, to the extent feasible, raw materials  
          acquisition, production, manufacturing, packaging, distribution,  
          reuse, operation, maintenance, disposal, energy efficiency,  
          product performance, durability, safety, the needs of the  
          purchaser, and cost."
            
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Scott Herbstman / A. & A.R. / (916)  
          319-3600 








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