Bill Text: CA SB175 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Public contracts: bid preferences: solar photovoltaic

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2011-07-06 - Set, first hearing. Failed passage in committee. Reconsideration granted. [SB175 Detail]

Download: California-2011-SB175-Amended.html

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BILL NUMBER: SB 175	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 25, 2011

INTRODUCED BY   Senator Corbett
   (Coauthor: Assembly Member Wieckowski)

                        FEBRUARY 7, 2011

   An act 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 175, as amended, Corbett. Public contracts: bid preferences:
solar photovoltaic system.
   Existing law imposes various requirements with respect to
contracting by state agencies.
   This bill would require a state agency that accepts bids or
proposals for a contract for the purchase or installation of a solar
photovoltaic system, as defined, to provide a  15% 
 5%  preference to a business that certifies that all of the
solar panels installed as part of the solar photovoltaic system have
been manufactured  or assembled  in California, in
accordance with specified criteria.
   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) Former Governor Schwarzenegger's 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 solar panels
in the state, employing Californians and helping our economy.
   (e) In the manufacturing of solar panels, it is the creation of
the solar cells that convert sunlight into electrical power that
generates the most value to the economy. Production of solar cells
requires the highest percentage of skilled workers, the highest
capital investment, and supports the highest amount of collateral
infrastructure in the form of additional local businesses and jobs.
   (f) California is the nation's largest clean economy. More than
12,000 clean technology companies, including solar manufacturers,
call California home and are creating jobs at nearly 10 times the
rate as the state's other industries. A number of these companies
have developed novel solar cell 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.
   (g) It is the intent of the Legislature that whenever a solar
photovoltaic system is placed on state buildings or property, there
should be a preference for a solar photovoltaic system manufactured
in California.
  SEC. 2.  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 Solar Panels
on State Property


   10390.  For the purposes of this article: 
   (a) "Assemble," "assembled," or "assembler" means the manufacture
or assembly of solar panels, which may include the installation of a
solar photovoltaic system.  
   (a) 
    (b)  "Manufacture," "manufactured," or "manufacturing"
means the transformation of raw materials into a solar panel,
including both the manufacture of the solar cells and the final
assembly of the solar panels. 
   (b) 
    (c)  "Power purchase agreement" means a financial
arrangement in which a third-party developer owns, operates, and
maintains a solar photovoltaic system, and a state agency agrees to
site the system on its roof or elsewhere on its property and
purchases the system's electric output, not the system itself, from
the third-party developer for a predetermined period of time.

   (c) 
    (d)  "Solar cells" means the basic building block of
photovoltaic (PV) technologies. "Solar cells" are functional
semiconductors, made by processing and treating crystalline silicon
or other photosensitive materials to create a layered product that
generates electricity by absorbing light photons. 
   (d) 
    (e)  "Solar panels" means individual solar cells
assembled into larger groups whereby the solar panel or module is the
end product, and consists of a series of solar cells to capture and
transfer solar-generated electricity, a backing surface, and a
covering to protect the cells from weather and other types of damage.

   (e) 
    (f)  "Solar photovoltaic system" means a system created
by installing multiple solar panels in the same location to increase
the electrical generating capacity. In a "solar photovoltaic system"
the solar panels and solar cells represent the highest intellectual
content and dollar-value items associated with solar photovoltaic
energy generation.
   10391.  (a) A state agency that accepts bids or proposals for a
contract for the purchase or installation of a solar photovoltaic
system through a power purchase agreement, or through a direct
purchase, shall provide a preference of  15   5
 percent to a business that certifies that all of the solar
panels installed as part of such a solar photovoltaic system have
been manufactured  , as defined in Section 10390, 
 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 business that
certifies that all of the solar panels installed as part of the solar
photovoltaic system have been manufactured  or assembled 
in this state shall be  15   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
business that certifies that all of the solar panels installed as
part of the solar photovoltaic system have been manufactured  or
assembled  in this state shall be  15   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  15-percent 
 5-percent  preference authorized pursuant to this section,
a business shall submit all required substantiating documentation and
information needed by the state agency to determine if the business
is eligible for the preference, including, but not limited to,
documentation regarding who the manufacturer  or assembler 
of the solar photovoltaic system will be and the location or
locations where the solar photovoltaic system will be manufactured
 or assembled  . 
   (5) If, after application of the preferences set forth in this
section, the bids submitted by an assembler and a manufacturer are
tied as the lowest responsible bid or the highest scored bid, then
the tie shall be resolved in favor of the manufacturer. 
   (b) The Department of General Services shall establish a process
to verify that a business meets the criteria for the 
15-percent   5-percent  preference.