Bill Text: CA SB124 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Human remains: Abbot Archimandrite Theodor Micka.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-03-25 - Chaptered by Secretary of State. Chapter 5, Statutes of 2014. [SB124 Detail]

Download: California-2013-SB124-Introduced.html
BILL NUMBER: SB 124	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Corbett

                        JANUARY 18, 2013

   An act to amend Sections 4217.11 and 4217.16 of the Government
Code, and to add Section 10780.6 to, and to add Article 7 (commencing
with Section 10390) to Chapter 2 of Part 2 of Division 2 of, the
Public Contract Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 124, as introduced, Corbett. Public contracts: bid preferences:
clean energy.
   Existing law imposes various requirements with respect to
contracting by state agencies and the Trustees of the California
State University. Existing law requires state agencies and to the
Trustees of the California State University to use a competitive
bidding process when contracting for goods and services. However,
existing law allows a public agency to award an energy service
contract if the governing body determines it is in the best interest
of the agency and costs will be reduced, as specified.
   This bill would require state agencies and the Trustees of the
California State University that accept bids or proposals for a
contract for the purchase or installation of a clean energy device,
technology, or system, as defined, to provide a 5% preference to a
bidder that certifies that all of the parts of the clean energy
device, technology, or system to be installed have been manufactured
or assembled in the state, in accordance with specified criteria.
This bill would authorize a public agency, including, but not limited
to, the Trustees of the California State University, to award a
contract based on the fact that a clean energy device, technology, or
system was manufactured or assembled in the state if the contract is
an energy service contract determined to be in the best interest of
the public agency.
   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.  The Legislature finds and declares all of the
following:
   (a) California faces the most severe economic downturn since the
Great Depression. Over two million Californians are out of work, and
California's unemployment rate is one of the highest in the nation.
   (b) At a time of scarce state resources, state purchases should be
used to stimulate our state economy and put people back to work.
   (c) The Green Building Executive Order (S-20-04) mandated that
state agencies evaluate the merits of using clean and renewable
onsite energy generation technologies in all new building or large
renovation projects.
   (d) California has several companies that manufacture clean energy
devices, technology, and systems in the state, employing
Californians and helping our economy.
   (e) California is the nation's largest clean economy. More than
12,000 clean technology companies call California home and are
creating jobs at nearly 10 times the rate of the state's other
industries. A number of these companies have developed novel
technologies, and it is in the interest of the state to incentivize
these companies to establish and grow manufacturing operations within
the state. This will create both construction and permanent
manufacturing jobs in California.
   (f) It is the intent of the Legislature that a preference should
be allowed for clean energy devices, technology, and systems
manufactured in California.
  SEC. 2.  Section 4217.11 of the Government Code is amended to read:

   4217.11.  The following terms, whenever used in this chapter, have
the meanings given in this section, except where the context clearly
indicates otherwise:
   (a) "Alternate energy equipment" means equipment for the
production or conversion of energy from alternate sources as its
primary fuel source, such as solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, remote natural gas of less than
one billion cubic feet estimated reserves per mile from an existing
gas gathering line, natural gas containing 850 or fewer British
Thermal Units per standard cubic foot, or any other source of energy,
the efficient use of which will reduce the use of fossil or nuclear
fuels. 
   (b) (1) "Clean energy device, technology, or system" means the
following:  
   (A) A device, technology, or system that contributes to improved
energy management or efficiency.  
   (B) Ultralow-emission equipment for energy generation based on
thermal energy systems, including, but not limited to, natural gas
turbines and fuel cells.  
   (C) A device, technology, or system that conserves or produces
heat, processes heat, space heating, water heating, steam, space
cooling, refrigeration, mechanical energy, electricity, or in any
form convertible to these uses, that does not expend or use
conventional energy fuels, and that uses any of the following
electrical generation technologies:  
   (i) Biomass.  
   (ii) Solar thermal.  
   (iii) Photovoltaic.  
   (iv) Wind.  
   (v) Geothermal.  
   (2) For the purposes of this subdivision, "conventional energy
fuel" means any fuel derived from petroleum deposits, including, but
not limited to, oil, heating oil, gasoline, fuel oil, or natural gas,
including liquefied natural gas or nuclear fissionable materials.
 
   (b) 
    (c)  "Cogeneration equipment" means equipment for
cogeneration, as defined in Section 216.6 of the Public Utilities
Code. 
   (c) 
    (d)  "Conservation measures" means equipment,
maintenance, load management techniques and equipment, or other
measures to reduce energy use or make for a more efficient use of
energy. 
   (d) 
    (e)  "Conservation services" means the electrical,
thermal, or other energy savings resulting from conservation
measures, which shall be treated as a supply of such energy. 

   (e) 
    (f)  "Energy conservation facility" means alternate
energy equipment, cogeneration equipment, or conservation measures
located in public buildings or on land owned by public agencies.

   (f) 
    (g)  "Energy service contract" means a contract entered
into by a public agency with any person, pursuant to which the person
will provide electrical or thermal energy or conservation services
to a public agency from an energy conservation facility. 
   (g) 
    (h)  "Facility financing contract" means a contract
entered into by a public agency with any person whereby the person
provides financing for an energy conservation facility in exchange
for repayment of the financing and all costs and expenses related
thereto by the public agency. A facility financing contract may
provide for the person with whom the public agency contracts to
provide any combination of feasibility studies for, and design and
construction of, all or part of the energy conservation facility in
addition to the financing and other related services, and may provide
for an installment sale purchase, another form of purchase, or
amortized lease of the energy conservation facility by the public
agency. 
   (h) 
    (i)  "Facility ground lease" means a lease of all, or
any portion of, land or a public building owned by, or under lease
to, a public agency to a person in conjunction with an energy service
contract or a facility financing contract. A facility ground lease
may include, in addition to the land on which energy conservation
facilities will be located, easements, rights-of-way, licenses, and
rights of access, for the construction, use, or ownership by the
person of the facility and all related utility lines not owned or
controlled by the interconnecting utility, and offsite improvements
related thereto. A facility ground lease may also include the
addition or improvement of utility lines and equipment owned by the
interconnecting utility which are necessary to permit interconnection
between that utility and an energy conservation facility. 
   (i) 
    (j)  "Person" means, but is not limited to, any
individual, company, corporation, partnership, limited liability
company, public agency, association, proprietorship, trust, joint
venture, or other entity or group of entities. 
   (j) 
    (k)  "Public agency" means the state, a county, city and
county, city, district, community college district, school district,
 California State University,  joint powers authority or
other entity designated or created by a political subdivision
relating to energy development projects, and any other political
subdivision or public corporation in the state. 
   (k) 
    (l)  "Public building" includes any structure, building,
facility, or work which a public agency is authorized to construct
or use, and automobile parking lots, landscaping, and other
facilities, including furnishings and equipment, incidental to the
use of any structure, building, facility, or work, and also includes
the site thereof, and any easements, rights-of-way appurtenant
thereto, or necessary for its full use.
  SEC. 3.  Section 4217.16 of the Government Code is amended to read:

   4217.16.  Prior to awarding or entering into an agreement or
lease, the public agency may request proposals from qualified
persons. After evaluating the proposals, the public agency may award
the contract on the basis of the experience of the contractor, the
type of technology employed by the contractor, the cost to the local
agency,  whether the clean energy device or technology is
manufactured or assembled in California,  and any other relevant
considerations. The public agency may utilize the pool of qualified
energy service companies established pursuant to Section 388 of the
Public Utilities Code and the procedures contained in that section in
awarding the contract.
  SEC. 4.  Article 7 (commencing with Section 10390) is added to
Chapter 2 of Part 2 of Division 2 of the Public Contract Code, to
read:

      Article 7.  Preference for California-Manufactured Clean Energy
Devices, Technology, and Systems


   10390.  For the purposes of this article:
   (a) (1) "Clean energy device, technology, or system" means the
following:
   (A) A device, technology, or system that contributes to improved
energy management or efficiency.
   (B) Ultralow-emission equipment for energy generation based on
thermal energy systems, including, but not limited to, natural gas
turbines and fuel cells.
   (C) A device, technology, or system that conserves or produces
heat, processes heat, space heating, water heating, steam, space
cooling, refrigeration, mechanical energy, electricity, or in any
form convertible to these uses, that does not expend or use
conventional energy fuels, and that uses any of the following
electrical generation technologies:
   (i) Biomass.
   (ii) Solar thermal.
   (iii) Photovoltaic.
   (iv) Wind.
   (v) Geothermal.
   (2) For the purposes of this subdivision, "conventional energy
fuel" means any fuel derived from petroleum deposits, including, but
not limited to, oil, heating oil, gasoline, fuel oil, or natural gas,
including liquefied natural gas or nuclear fissionable materials.
   (b) "Power purchase agreement" means a financial arrangement in
which a third-party developer owns, operates, and maintains a clean
energy device, technology, or system, and a state agency agrees to
site the device, technology, or system on its roof or elsewhere on
its property and purchases the device, technology, or system's
electric output, not the device, technology, or system itself, from
the third-party developer for a predetermined period of time.
   10391.  (a) A state agency that accepts bids or proposals for a
contract for the purchase or installation of a clean energy device,
technology, or system through a power purchase agreement or a direct
purchase shall provide a preference of 5 percent to a bidder that
certifies that all of the parts of the clean energy device,
technology, or system to be installed have been manufactured or
assembled in this state. The preference shall be provided as follows:

   (1) For solicitations to be awarded to the lowest responsible
bidder meeting specifications, the preference to a bidder that
certifies that all of the parts of the clean energy device,
technology, or system to be installed have been manufactured or
assembled in this state shall be 5 percent of the bid price of the
lowest responsible bidder meeting specifications.
   (2) For solicitations to be awarded to the highest scored bidder
based on evaluation factors in addition to price, the preference to a
bidder that certifies that all of the parts of the clean energy
device, technology, or system to be installed have been manufactured
or assembled in this state shall be 5 percent of the total score of
the highest scored bidder.
   (3) A preference awarded pursuant to paragraph (1) or (2) shall
not be awarded to a noncompliant bidder and shall not be used to
satisfy any applicable minimum requirements.
   (4) In order to be eligible for the 5-percent preference
authorized pursuant to this section, a bidder shall submit all
required substantiating documentation and information needed by the
state agency to determine if the bidder is eligible for the
preference, including, but not limited to, documentation regarding
the identity of the manufacturer or assembler of the clean energy
device, technology, or system and the location or locations where the
parts of the clean energy device, technology, or system will be
manufactured or assembled.
   (5) If, after application of the preferences set forth in this
section, more than one bid qualified as the lowest responsible bid or
the highest scored bid, the state agency shall award the contract to
the bidder that has the highest number of full-time employees who
assemble or manufacture the parts of the clean energy device,
technology, or system in the state when the contract is let.
   (b) The Department of General Services shall establish a process
to verify that a bidder meets the criteria for the 5-percent
preference.
  SEC. 5.  Section 10780.6 is added to the Public Contract Code, to
read:
   10780.6.  (a) For the purposes of this section:
   (1) (A) "Clean energy device, technology, or system" means the
following:
   (i) A device, technology, or system that contributes to improved
energy management or efficiency.
   (ii) Ultralow-emission equipment for energy generation based on
thermal energy systems, including, but not limited to, natural gas
turbines and fuel cells.
   (iii) A device, technology, or system that conserves or produces
heat, processes heat, space heating, water heating, steam, space
cooling, refrigeration, mechanical energy, electricity, or in any
form convertible to these uses, that does not expend or use
conventional energy fuels, and that uses any of the following
electrical generation technologies:
   (I) Biomass.
   (II) Solar thermal.
   (III) Photovoltaic.
   (IV) Wind.
   (V) Geothermal.
   (B) For the purposes of this subdivision, "conventional energy
fuel" means any fuel derived from petroleum deposits, including, but
not limited to, oil, heating oil, gasoline, fuel oil, or natural gas,
including liquefied natural gas or nuclear fissionable materials.
   (2) "Power purchase agreement" means a financial arrangement in
which a third-party developer owns, operates, and maintains a clean
energy device, technology, or system, and the trustees agree to site
the device, technology, or system on their roof or elsewhere on their
property and purchases the device, technology, or system's electric
output, not the device, technology, or system itself, from the
third-party developer for a predetermined period of time.
   (b) The trustees that accept bids or proposals for a contract for
the purchase or installation of a clean energy device, technology, or
system through a power purchase agreement or a direct purchase shall
provide a preference of 5 percent to a bidder that certifies that
all of the parts of the clean energy device, technology, or system to
be installed have been manufactured or assembled in this state. The
preference shall be provided as follows:
   (1) For solicitations to be awarded to the lowest responsible
bidder meeting specifications, the preference to a bidder that
certifies that all of the parts of the clean energy device,
technology, or system to be installed have been manufactured or
assembled in this state shall be 5 percent of the bid price of the
lowest responsible bidder meeting specifications.
   (2) For solicitations to be awarded to the highest scored bidder
based on evaluation factors in addition to price, the preference to a
bidder that certifies that all of the parts of the clean energy
device, technology, or system to be installed have been manufactured
or assembled in this state shall be 5 percent of the total score of
the highest scored bidder.
   (3) A preference awarded pursuant to paragraph (1) or (2) shall
not be awarded to a noncompliant bidder and shall not be used to
satisfy any applicable minimum requirements.
   (4) In order to be eligible for the 5-percent preference
authorized pursuant to this section, a bidder shall submit all
required substantiating documentation and information needed by the
trustees to determine if the bidder is eligible for the preference,
including, but not limited to, documentation regarding the identity
of the manufacturer or assembler of the clean energy device,
technology, or system and the location or locations where the parts
of the clean energy device, technology, or system will be
manufactured or assembled.
   (5) If, after application of the preferences set forth in this
section, more than one bid qualifies as the lowest responsible bid or
the highest scored bid, the trustees shall award the contract to the
bidder that has the highest number of full-time employees who
assemble or manufacture the parts of the clean energy device,
technology, or system in the state when the contract is let.
   (c) The Department of General Services shall establish a process
to verify that a bidder meets the criteria for the 5-percent
preference.
  
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