Bill Text: CA AB865 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State Energy Resources Conservation and Development

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2015-10-08 - Chaptered by Secretary of State - Chapter 583, Statutes of 2015. [AB865 Detail]

Download: California-2015-AB865-Amended.html

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BILL NUMBER: AB 865	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 6, 2015
	AMENDED IN ASSEMBLY  APRIL 16, 2015

INTRODUCED BY   Assembly Member Alejo
    (   Coauthor:   Assembly Member  
Jones-Sawyer   ) 

                        FEBRUARY 26, 2015

   An act to add Section 25230 to the Public Resources Code, relating
to the State Energy Resources Conservation and Development
Commission.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 865, as amended, Alejo. State Energy Resources Conservation and
Development Commission:  contracts,  grants  , 
and loans: diversity.
   The Warren-Alquist State Energy Resources Conservation and
Development Act establishes the State Energy Resources Conservation
and Development Commission. Existing law requires the State Energy
Resources Conservation and Development Commission to administer
various grant and loan programs.
   This bill would require the State Energy Resources Conservation
and Development Commission to  require that each recipient of
a grant or loan, where the recipient has gross annual revenues
exceeding $25,000,000, or a different threshold determined by the
commission, as a condition for the receipt of that grant or loan,
annually submit a detailed and verifiable plan for increasing
procurement from women, minority, disabled veteran, and LGBT business
enterprises, as defined, in all categories, including, but not
limited to, renewable energy, advanced technologies, and
demonstration projects, and furnish an annual report regarding the
implementation of programs established pursuant to this requirement.
The bill would require the State Energy Resources Conservation and
Development Commission to establish guidelines for those grant or
loan recipients to utilize in establishing programs pursuant to these
requirements. The bill would require the State Energy Resources
Conservation and Development Commission to develop, and would require
those grant or loan recipients to implement, an outreach program to
inform and recruit women, minority, disabled veteran, and LGBT
business enterprises to apply for procurement contracts. 
 develop an outreach program to inform and recruit the most
qualified loan and grant applicants, and contractors, including, but
not limited to, women, minority, disabled veteran, and LGBT business
enterprises, as defined. The bill would require that one component of
the outreach program be a process for tracking the diversity of
contractors, loan recipients, and grant recipients. The bill would
require the commission to include certified women, minority, disabled
veteran, and LGBT business enterprises in announcements about
workshops, trainings, and funding opportunities, as appropriate, and
consider including them in capacity building activities. The bill
would require the commission to require that each contractor,
recipient of a grant awarded, or loan   approved by the
commission on or after October 1, 2016, for an amount of $1,000,000
or more, including amended contracts, loans, and grant agreements
that bring the total value of the loan or grant to $1,000,000 or more
(1) report on the demographic makeup of the management of the firm
or organization, (2) submit a detailed and verifiable outreach plan
for increasing subcontractor opportunities by certified women,
minority, disabled veteran, and LGBT business enterprises, (3)
implement the outreach plan to the best of the contractor's or
recipient's financial and administrative capacity, and (4) furnish a
report to the commission regarding the activities and outcomes
achieved in implementing the outreach plan. The bill would require
the commission to establish guidelines for all contractors, grant
recipients, and loan recipients to utilize in preparing,
implementing, and reporting on   the outreach plans. The
bill would require each contractor and recipient of a grant or loan
that is subject to the bill's   requirements to submit data
on a form provided by the commission of the activities and outcomes
of its outreach plan on October 1 of the following fiscal year in
which the contract was awarded, the loan was approved, or the grant
was received.  The bill would require the State Energy Resources
Conservation and Development Commission to consider establishing a
Diversity Task Force to consider and make recommendations about
diversity in the energy industry, including diversity of corporate
governing boards and procurement from diverse businesses.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 25230 is added to the Public Resources Code, to
read:
   25230.  (a) For purposes of this section, the following terms have
the following meanings:
   (1) "Control" means exercising the power to make policy decisions.

   (2) "Disabled veteran business enterprise" has the same meaning as
defined in Section 999 of the Military and Veterans Code.
   (3) "LGBT business enterprise" means a business enterprise that is
at least 51 percent owned by a lesbian, gay, bisexual, or
transgender person or persons, or, in the case of any publicly owned
business, at least 51 percent of the stock of which is owned by one
or more lesbian, gay, bisexual, or transgender persons, and whose
management and daily business operations are controlled by one or
more of those individuals.
   (4) "Minority business enterprise" means a business enterprise
that is at least 51 percent owned by a minority group or groups, or,
in the case of any publicly owned business, at least 51 percent of
the stock of which is owned by one or more minority groups, and whose
management and daily business operations are controlled by one or
more of those individuals. The contracting utility shall presume that
minority includes African Americans, Hispanic Americans, Native
Americans, and Asian Pacific Americans.
   (5) To "operate" means to be actively involved in the day-to-day
management. It is not enough to merely be an officer or director.
   (6) "Renewable energy project" means a project for the development
and operation of an eligible renewable energy resource meeting the
requirements of the California Renewables Portfolio Standard Program
(Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1
of Division 1).
   (7) "Women business enterprise" means a business enterprise that
is at least 51 percent owned by a woman or women, or, in the case of
any publicly owned business, at least 51 percent of the stock of
which is owned by one or more women, and whose management and daily
business operations are controlled by one or more of those
individuals. 
   (b) (1) The commission shall develop an outreach program to inform
and recruit the most qualified loan and grant applicants, and
contractors, including, but not limited to, women, minority, disabled
veteran, and LGBT business enterprises. The purpose of the program
is to ensure that the commission recognizes the demographic shifts of
the California marketplace and is nurturing the new and next
generation of energy technology leaders.  
   (2) One component of the outreach program shall be a process for
tracking the diversity of contractors, loan recipients, and grant
recipients. Among other activities, the commission shall identify
existing sources for locating information on certified women,
minority, disabled veteran, and LGBT business, which may include, but
is not limited to, the clearinghouse database maintained by the
Public Utilities Commission, the list of Disabled Veteran Business
Enterprises certified by the Procurement Division of the Department
of General Services, as well as information on other nonprofit
organizations that verify or certify women, minority, and LGBT
business enterprises.  
   (3) The commission shall include certified women, minority,
disabled veteran, and LGBT business enterprises in announcements
about workshops, trainings, and funding opportunities, as
appropriate, and shall consider including them in capacity building
activities.  
   (b) 
    (c)  The commission shall require that each 
contractor,  recipient of a grant  awarded,  or loan
 administered   approved  by the 
commission, where the recipient has annual revenues exceeding
twenty-five million dollars ($25,000,000), or a different threshold
determined to be appropriate by the commission, do both 
 commission on or after October 1, 2016, for an amount of one
million dollars ($1,000,000) or more, including amended contracts,
loans, and grant agreements that bring the total value of the
contract, loan, or grant to one million dollars ($1,000,000) or more,
do all  of the following as a condition for the receipt of that
grant or loan: 
   (1) Report on the demographic makeup of the management of the firm
or organization awarded the contract or receiving the grant or loan.
 
   (1) Annually submit 
    (2)     Submit  a detailed and
verifiable  outreach  plan for increasing 
procurement from   subcontractor opportunities with the
prime contractor, grantee, or borrower by certified  women,
minority, disabled veteran, and LGBT business enterprises  in
all categories, including, but not limited to, renewable energy,
advanced technologies, and demonstration projects. These annual plans
shall include short- and long-term goals and timetables, but not
quotas, and shall include methods for encouraging both prime
contractors and grantees to engage women, minority, disabled veteran,
and LGBT business enterprises in subcontracts in all categories that
provide subcontracting opportunities, including, but not limited to,
renewable energy, advanced technologies, and demonstration projects.
  pursuant to the requirements of this section. 

   (3) Implement the outreach plan submitted to the commission to the
best of the contractor's or recipient's financial and administrative
capacity.  
   (2) Furnish an annual 
    (4)     Furnish a  report to the
commission regarding the  implementation of programs
established pursuant to this section in a form that the commission
shall require, and at the time that the commission shall annually
designate. Each   activities and outcomes achieved in
implementing the outreach plan, pursuant to the requirements of this
section. 
    (d)     Each  report  required by
this section  shall be a public document and shall be made
readily available on an Internet Web site  either maintained
by the grant or loan recipient or   maintained  by
the commission. 
   (c) 
    (e)     (1)  The commission shall
establish guidelines for all grant or  
contractors, grant recipients, and  loan recipients, subject to
subdivision  (b),   (c),  to utilize in
 establishing programs   preparing,
implementing, and reporting on the outreach plans  pursuant to
this section. 
   (d) The commission shall develop, and require every grant or loan
recipient, subject to subdivision (b), to implement, an outreach
program to inform and recruit women, minority, disabled veteran, and
LGBT business enterprises to apply for procurement contracts under
this section.  
   (2) The guidelines shall include methods for encouraging
contractors, grant recipients, and loan recipients to engage
certified women, minority, disabled veteran, and LGBT business
enterprises in subcontracts in all categories that provide
subcontracting opportunities, including, but not limited to,
renewable energy projects, advanced technologies, and demonstration
projects.  
   (3) The commission shall consider specifying consequences for not
meeting the requirements of subdivision (c).  
   (4) The guidelines shall integrate the existing reporting
requirements for state contractors, as relevant, and shall not
require duplicate reporting of data that is otherwise required by
state law. The contractor or loan or grant recipient may submit
reports of another state entity to provide the same information.
 
   (f) (1) Each recipient of a loan or grant, or contract, subject to
this section, shall submit the outreach plan described in
subdivision (c) within 60 days of the award or approval of the loan,
grant, or contract.  
   (2) The outreach plan shall include short- and long-term goals and
timetables, but not quotas, and shall include methods the
contractor, grant recipient, or loan recipient intends to use to
increase the number of certified women, minority, disabled veteran,
and LGBT business enterprises that participate in all categories of
subcontracting opportunities, including, but not limited to,
renewable energy projects, advanced technologies, and demonstration
projects.  
   (3) The outreach plan may be updated, as necessary, to reflect
changes in the marketplace, local conditions, changes in the
structure of the firm or organization, and other issues impacting the
effectiveness of the plan.  
   (g) Each contractor and recipient of a grant or loan subject to
this section shall submit data on a form provided by the commission
of the activities and outcomes of its outreach plan on October 1 of
the following fiscal year in which the contract was awarded, the loan
was approved, or the grant was received.  
   (e) 
    (h)  After receipt of the  detailed 
 initial  plans and  annual  reports, the
commission shall consider establishing a Diversity Task Force to
consider and make recommendations about diversity in the energy
industry, including diversity of corporate governing boards and
procurement from diverse businesses. If the commission establishes a
Diversity Task Force, the commission shall consider how it can
address and promote local and targeted hiring.