BILL NUMBER: SB 124 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 5, 2013
AMENDED IN SENATE APRIL 29, 2013
AMENDED IN SENATE APRIL 10, 2013
INTRODUCED BY Senator Corbett
(Coauthor: Senator Correa)
( Coauthor: Assembly Member
Roger Hernández )
JANUARY 18, 2013
An act to amend Sections 4217.11 and 4217.16 of the Government
Code, and to add and repeal Section 10780.6 to,
of, and to add and repeal Article 7
(commencing with Section 10390) to of
Chapter 2 of Part 2 of Division 2 of, the Public Contract Code,
relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
SB 124, as amended, 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 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 , as defined, 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 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 in the state if the
contract is an energy service contract determined to be in the best
interest of the public agency. The bill would, until January 1, 2020,
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 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 in the state if the contract is an energy service
contract determined to be in the best interest of the public agency.
This bill would also, until January 1, 2020, require
the Department of General Services to establish a clarification
process to ensure that bidders meet the preference criteria and, with
respect to the California State University, to publish related
information on the departments' Internet Web si te.
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)
(a) At a time of scarce state resources, state
purchases should can be used to
stimulate our state economy and put people back to work.
(c)
(b) The Green Building Executive Order (B-18-12)
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)
(c) California has several companies that manufacture
clean energy devices, technology, and systems in the state, employing
Californians and helping our economy.
(e)
(d) California is the nation's largest
a national leader in creating a 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. Many clean technology companies
call California home. 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
state, in order to create both construction and
permanent manufacturing jobs in California.
(f)
(e) 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) "Clean energy device, technology, or system" means devices or
technologies used for a renewable electrical generation facility, as
defined in paragraph (1) of subdivision (a) of Section 25741 of the
Public Resources Code; a combined heat and power system, as defined
in Section 2840.2 of the Public Utilities Code; distributed
generation and energy storage technologies eligible under the
self-generation incentive program pursuant to Section 379.6 of the
Public Utilities Code, as determined by the Public Utilities
Commission; or a facility designed for the production of renewable
fuels the efficient use of which reduces the use of fossil or nuclear
fuels; and energy efficiency devices or technologies that reduce the
need for new electric generation and reduce emissions of toxic and
criteria pollutants and greenhouse gases.
(b) "Conservation services" means the electrical, thermal, or
other energy savings resulting from conservation measures, which
shall be treated as a supply of that energy.
(c) "Energy conservation facility" means clean energy devices,
technologies, or systems, or conservation measures located in public
buildings or on land owned by public agencies.
(d) "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.
(e) "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.
(f) "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
that are necessary to permit interconnection between that utility and
an energy conservation facility.
(g) "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.
(h) "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.
(i) "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
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) "Clean energy device, technology, or system" means devices or
technologies used for a renewable electrical generation facility, as
defined in paragraph (1) of subdivision (a) of Section 25741 of the
Public Resources Code; a combined heat and power system, as defined
in Section 2840.2 of the Public Utilities Code; distributed
generation and energy storage technologies eligible under the
self-generation incentive program pursuant to Section 379.6 of the
Public Utilities Code, as determined by the Public Utilities
Commission; a solar water heating system, as defined in
subdivision (g) of Section 2861 of the Public Utilities
Code; or a facility designed for the production of renewable
fuels, the efficient use of which reduces the use of fossil or
nuclear fuels; and energy efficiency devices or technologies that
reduce the need for new electric generation and reduce emissions of
toxic and criteria pollutants and greenhouse gases.
(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 in this
state. The maximum preference a bidder may be awarded pursuant
to this article is 5 percent, for that portion of a project that is
for the purchase and installation of a clean energy device,
technology, or system. The total bid preference resulting from this
article and any other provision of law shall not exceed 15
percent. 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 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
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 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.
(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
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.
10392. This article shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 5. Section 10780.6 is added to the Public Contract Code, to
read:
10780.6. (a) For purposes of this section, "clean energy device,
technology, or system" means devices or technologies used for a
renewable electrical generation facility, as defined in paragraph (1)
of subdivision (a) of Section 25741 of the Public Resources Code; a
combined heat and power system, as defined in Section 2840.2 of the
Public Utilities Code; distributed generation and energy storage
technologies eligible under the self-generation incentive program
pursuant to Section 379.6 of the Public Utilities Code, as determined
by the Public Utilities Commission; a solar water heating
system, as defined in subdivision (g) of Section 2861 of the Public
Utilities Code; or a facility designed for the production of
renewable fuels, the efficient use of which reduces the use of fossil
or nuclear fuels; and energy efficiency devices or technologies that
reduce the need for new electric generation and reduce emissions of
toxic and criteria pollutants and greenhouse gases.
(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 in this state. The maximum
preference a bidder may be awarded pursuant to this section
is 5 percent, for that portion of a project that is for the purchase
and installation of a clean energy device, technology, or system.
The total bid preference resulting from this section and any other
provision of law shall not exceed 15 percent. 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 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
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 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.
(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
manufacture the parts of the clean energy device, technology, or
system in the state when the contract is let.
(c) (1) The Department of General Services
shall establish a process to verify that a bidder meets the criteria
for the 5-percent preference and publish on its Internet Web
site a regularly updated list of all sites that received bid
preferences, including the name of the manufacturer and the type of
clean energy device, technology, or system utilized .
(2) The Department of General Services shall annually publish data
on its Internet Web site, on the employment growth associated with
the clean energy bid preference for women, minority, and disabled
veterans.
(d) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.