Amended  IN  Senate  June 08, 2023
Amended  IN  Assembly  April 17, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1198

Introduced by Assembly Member Grayson
(Coauthors: Assembly Members Gipson, Low, Quirk-Silva and Schiavo)
(Coauthors: Senators Alvarado-Gil and Caballero)

February 16, 2023

An act to amend Section 12100.110 of, and to add Section 12100.111 to, the Government Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1198, as amended, Grayson. GO-Biz: Energy Unit: equity.
Existing law establishes the Governor’s Office of Business and Economic Development, known as “GO-Biz,” within the Governor’s office to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law establishes, within GO-Biz, the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals, including by identifying barriers, making recommendations, creating a working group, coordinating between the state’s climate and energy agencies, and cooperating with local, regional, federal, and California public and private businesses and investors. Existing law requires the Energy Unit to submit a report to the Legislature on its activities on or before February 1 of each year, as specified.
This bill would require the Energy Unit to identify, among other things, nonratepayer-funded energy industry resources, including grants, tax credits, loans, and technical assistance, across local, state, and federal departments and agencies that are available to assist businesses and workers in the transition to a net-zero-powered economy. The bill would require the Energy Unit to work with specified agencies to identify workforce development programs specific to the energy industry and gather data on how education and outreach is conducted to disadvantaged communities, as defined. The bill would also require the Energy Unit, in collaboration with the Small Business Advocate, to identify the participation levels of in those energy industry resources by businesses owned by women, minorities, disabled individuals, and veteran-owned businesses, as well as individuals from disadvantaged communities. The
This bill would require the Energy Unit to hold at least 3 public workshops and engage with stakeholders and specified representatives to develop recommendations to address on addressing barriers to access to the those energy industry resources faced by business-owner groups and individuals who live in disadvantaged communities and how to increase the participation rate for underrepresented communities. The bill would require the Energy Unit to work with designated agencies to identify workforce development programs specific to the energy industry and to gather data on specified communities, as well as how education and outreach is conducted in these communities. their participation levels to the extent that there are disparities, as specified. The bill would also require the Energy Unit to convene a technical advisory group for related purposes, as specified. The bill would require the Energy Unit to include those findings and recommendations and other related information in its annual report to the Legislature. The bill would also make related legislative findings and declarations.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 12100.110 of the Government Code is amended to read:

12100.110.
 (a) The Energy Unit is hereby created within the Governor’s Office of Business and Economic Development.
(b) The Governor shall appoint a deputy director who shall have direct authority over the Energy Unit and serve at the pleasure of the Governor.
(c) The purpose of the Energy Unit is to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals.
(d) The Energy Unit shall work with energy project developers and load-serving entities, as defined in Section 380 of the Public Utilities Code, to identify barriers to construction and development of critical energy infrastructure projects and to make recommendations to relevant state agencies and local governments on how to overcome those barriers.
(e) The Energy Unit shall create a working group that includes local and federal partners to address land use issues related to critical energy infrastructure projects.
(f) In organizing and managing the Energy Unit, the deputy director shall establish and implement a process to coordinate between the state’s climate and energy agencies in order to identify the critical energy infrastructure projects that will form the operational mandate of the Energy Unit.
(g) In operating the Energy Unit, the deputy director shall cooperate with local, regional, federal, and California public and private businesses and investors to eliminate barriers to the completion of critical energy infrastructure projects.
(h) The Energy Unit’s work shall complement, not conflict with, efforts by the state’s climate and energy agencies.
(i) This section, and the Energy Unit’s implementation of this section, does not change the regulatory authority of the state’s climate and energy agencies.
(j) (1) On or before February 1 of each year, the Energy Unit shall annually submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following information:
(A) The infrastructure priorities identified for purposes of the prior calendar year.
(B) The constituencies coordinated with in order to advance those infrastructure priorities in the prior calendar year.
(C) The strategies implemented and steps taken to address barriers to and advance critical energy infrastructure projects in the prior calendar year.
(D) Any recommendations to the Legislature that would accelerate the Energy Unit’s progress.
(E) The findings and recommendations required by Section 12100.111.
(F) A list of the administration representatives and stakeholders who participated in developing recommendations required by Section 12100.111 in the prior calendar year.
(G) A summary of actions taken to disseminate to relevant entities the findings and recommendations required by Section 12100.111.
(H) A list of implemented recommendations made pursuant to Section 12100.111 and, to the extent known to the Energy Unit, steps taken to implement those recommendations.
(I) Data on year-to-year changes in participation levels by business owner groups and individuals who live in disadvantaged communities in accessing energy industry resources identified pursuant to paragraphs (1) and (2) of subdivision (b) of Section 12100.111.
(J) Any recommendations to the Legislature that would accelerate the implementation of recommendations made pursuant to Section 12100.111.
(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795.
(k) For purposes of this article, “disadvantaged community” means a community identified pursuant to Section 39711 or 39713 of the Health and Safety Code or Section 75005 of the Public Resources Code.

SEC. 2.

 Section 12100.111 is added to the Government Code, immediately following Section 12100.110, to read:

12100.111.
 (a) The Legislature finds and declares all of the following:
(1) California has been and continues to be a global leader on climate change policy, with goals the goal of achieving carbon neutrality by 2045.
(2) California has made significant and sustained investments towards programs whose purpose is to reduce California’s greenhouse emissions.
(3) Minority small business enterprises number over 1,200,000 in California, making up nearly one-third of all small businesses in the state.
(4) Evidence shows that there is a huge gap in minority small business enterprises’ participation in the market transition to a low-carbon future. It In addition to the economic consequences these businesses face through their lagging market transition, this disparity also means the state is underutilizing important assets in its efforts to plan, finance, and execute critical energy infrastructure projects necessary to achieve carbon neutrality. Therefore, it is essential that minority enterprises actively participate in delivering solutions that help California achieve its aggressive climate goals.
(5) Effective pathways need to be created to ensure that disadvantaged businesses in areas of high poverty and low investment in California have access to the opportunities, resources, partnerships, knowledge, and enabling technologies necessary to start, build, and scale enterprises that create high road jobs and essential community wealth-building opportunities.
(b) The Energy Unit shall do all of the following:
(1) Identify nonratepayer energy funding, nonratepayer-funded energy industry resources, including, but not limited to, grants, tax credits, loans, and technical assistance, and workforce training funding across local, state, and federal departments and agencies. agencies that are available to assist businesses and workers in the transition to a net-zero-powered economy.
(2) Work with the Small Business Advocate, the California Workforce Development Board, and the California Community Colleges to identify workforce development programs in California specific to the energy industry and gather data on how education and outreach is conducted to disadvantaged communities. Participation by a community college district shall be voluntary.

(2)

(3) Identify whether existing state energy programs energy industry resources identified in paragraphs (1) and (2) include an equity component. component as part of the resource’s evaluation, award, or allocation process.

(3)

(4) (A) Identify, in collaboration with the Small Business Advocate, the participation levels of businesses owned by women, minorities, disabled individuals, veterans, and individuals from disadvantaged communities. communities in the energy resources identified in paragraphs (1) and (2).
(B) The Energy Unit may, to the extent consistent with the purposes of this section and determined by the Energy Unit to be a reliable information source, use data and other information reported by governmental entities, accredited academic institutions, or other public or private entities on diverse business and disadvantaged community participation levels, including, but not limited to, those sources identified in Section 25230 of the Public Resources Code.

(4)(A)

(5) Provide recommendations on addressing barriers to access the energy industry and resources identified in paragraphs (1) and (2) faced by business owner groups and individuals who live in disadvantaged communities.
(A) To the extent that there are disparities between the eligible user population and the participation level, provide recommendations on how to increase participation levels among the communities listed in paragraph (3). business-owner groups and individuals who live in disadvantaged communities.
(B) In developing the recommendations required by subparagraph (A), this paragraph, the Energy Unit shall hold do all of the following:
(i) Hold no less than three public workshops throughout the state and engage state.
(ii) Engage with stakeholders and administration representatives from chambers of commerce, labor, the Energy Commission, the Public Utilities Commission, the State Air Resources Board, the California Workforce Development Board, and the Office of the Small Business Advocate, the California Community Colleges. Colleges, and other appropriate administration representatives and stakeholder entities as determined by the Energy Unit. Participation by a community college district shall be voluntary.

(5)Work with the Small Business Advocate, the California Workforce Development Board, and the California Community Colleges to identify workforce development programs in California specific to the energy industry and gather data on how education and outreach is conducted to the communities listed in paragraph (3).

(iii) Convene a technical advisory working group composed of representatives from chambers of commerce and other organizations with extensive experience serving the needs of businesses owned by women, minorities, disabled individuals, veterans, or individuals from disadvantaged communities. The Energy Unit shall use the expertise of the technical advisory group to overcome systemic barriers to obtaining information on why these business owners are not accessing eligible programs, create practical recommendations for reducing disparities between the eligible population and actual program utilization, and forge new relationships among program providers and stakeholders.
(6) Disseminate to relevant state, local, and regional agencies findings made pursuant to paragraphs (1), (2), (3), and (4) and recommendations developed pursuant to paragraph (5).
(7) The Energy Unit may consider findings and recommendations made in published reports related to the requirements of this article, including, but not limited to, all of the following:
(A) Information on the challenges faced by diverse business owner groups and individuals who live in disadvantaged communities to transition to cleaner energy sources.
(B) Information on how to increase diverse supplier participation in government contracting related to the energy sector and workforce training opportunities that lead to high road jobs in energy-related occupations in disadvantaged communities.
(C) The report on barriers to contracting opportunities for local small businesses in disadvantaged communities prepared pursuant to Section 25327 of the Public Resources Code.