BILL ANALYSIS �
AB 2593
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Date of Hearing: April 28, 2014
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2593 (Bradford) - As Introduced: February 21, 2014
SUBJECT : Greenhouse gases: diversity reporting
SUMMARY : Requires businesses with gross annual revenues
exceeding $25 million that participate in programs that receive
funding from the Greenhouse Gas (GHG) Reduction Fund to report
to the Air Resources Board (ARB) on efforts to increase
procurement from women, minority, and disabled veteran
enterprises.
EXISTING LAW :
1)Defines women, minority, and disabled veteran enterprises.
2)Requires the Public Utilities Commission (PUC) to require
specified electrical, gas, water, wireless telecommunication
providers, and telephone corporations to submit annual plans
for increasing procurement from diverse suppliers and to
implement an outreach program to women, minority, and disabled
veteran enterprises for procurement contracts.
3)Requires ARB, pursuant to 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.
4)Authorizes ARB to permit the use of market-based compliance
mechanisms to comply with GHG reduction regulations, under
limited circumstances once specified conditions are met.
5)Establishes the GHG Reduction Fund and requires all moneys,
except for fines and penalties, collected by ARB from the
auction or sale of allowances pursuant to a market-based
compliance mechanism (i.e., cap and trade revenues) to be
deposited in the Fund and available for appropriation by the
Legislature.
FISCAL EFFECT : Unknown
AB 2593
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COMMENTS :
1)This bill . According to the author, women and minority-owned
business participation in programs to reduce greenhouse gas
emissions should factor in inclusion of diverse sectors within
California's economy to ensure that access to new job
opportunities are available to all Californians. In
California, women and minority-owned businesses represent the
bulk of small businesses. Since diverse business owners are
more likely to hire diverse workers, the success of women,
minority, and disabled veteran owned businesses translates
into jobs for women, minorities, and disabled veterans.
2)Diversity reporting . In 1988, the PUC adopted General Order
156 (GO 156) to establish the Women Owned and Minority Owned
Business Enterprise program to increase diversity in various
utility operations and procurement processes. Subsequent
legislation has codified and expanded the program. GO 156
requires PUC regulated electrical, gas, water, wireless
telecommunications service provider, and telephone
corporations with gross annual revenues exceeding $25 million
to submit annual detailed and verifiable plans that include
goals and timelines for increasing procurement from minority,
women, and disabled veteran business entities. GO 156
includes rules and regulations for the utilities' compliance
with the program, and requires participating utilities to
inform, recruit, and obtain at least 20 percent of their
products and services purchased within a five-year period from
women and minority owned businesses (15 percent from minority
owned businesses and 5 percent from women owned businesses)
and an additional 1.5 percent from disabled veteran business
enterprises.
3)Cap and trade revenues . Between November 2012 and November
2013, ARB conducted five auctions that generated a total of
$532 million in state revenue. The 2013-14 Budget Act
included a provision to loan $500 million of this amount to
the State's General Fund and allocated $578,000 to the Office
of Environmental Health and Hazard Assessment for the
development of a method to identify disadvantaged communities.
According to the Legislative Analyst's Office, California's
cap and trade program is expected to raise billions of dollars
in auction revenues by 2020.
Current law requires that the Department of Finance maintain a
AB 2593
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three year investment plan that identifies feasible and
cost-effective GHG emission reduction investment and, where
feasible, achieve co-benefits including job creation, air
quality improvements, and public health benefits. Twenty-five
percent of auction revenue is required to be used to benefit
disadvantaged communities, and 10 percent must be invested in
these communities. The Governor's 2014-15 Cap and Trade
Expenditure Plan allocates $850 million across a broad range
of programs.
This bill is intended to help provide a baseline of
information regarding the extent to which programs funded in
whole or in part through the cap and trade program include
diversity.
4)Double referral . This bill was heard in the Assembly
Utilities and Commerce Committee on April 21st and passed with
a vote of 10-4.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092