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AB-983 Public contracts: construction projects: community workforce agreements: battery manufacturing and lithium-based technology.(2021-2022)

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Date Published: 04/12/2021 09:00 PM
AB983:v98#DOCUMENT

Amended  IN  Assembly  April 12, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 983


Introduced by Assembly Member Eduardo Garcia

February 18, 2021


An act to add Chapter 2.6 (commencing with Section 2100) of to Part 1 of Division 2 of the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 983, as amended, Eduardo Garcia. Public contracts: construction projects: community workforce agreements. agreements: battery manufacturing and lithium-based technology.
Existing law, the State Contract Act, governs state contracts for public works projects and, among other things, generally requires public notice of a project, the submission of bids, and the award of a contract to the lowest responsible bidder, as provided. Existing law authorizes a public entity to use, enter into, or require contractors to enter into, project labor agreements for construction projects if the agreement meets specified requirements. Existing law additionally authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce, as defined, to complete contracts or projects.
Existing law requires the California Workforce Development Board to report to the Legislature on the need for workforce development resources, including the use of community workforce agreements, among other things, to help industry, workers, and communities transition to economic and labor-market changes related to statewide greenhouse gas emissions reduction goals.
This bill would authorize a public entity to use, enter into, or require contractors to enter into, a community workforce agreement agreement, as defined, for specified construction projects, including projects related to renewable energy and installation of emission controls in refineries. projects related to battery manufacturing and lithium-based technology.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Chapter 2.6 (commencing with Section 2100) is added to Part 1 of Division 2 of the Public Contract Code, to read:
CHAPTER  2.6. Community Workforce Agreements

2100.
 The Legislature finds and declares all of the following:
(a) World demand for lithium is expected to grow as much as tenfold in the next decade, but virtually none is produced in the United States. Almost all of the global lithium supply is currently mined in Argentina, Australia, Chile, and China.
(b) The Salton Sea geothermal resource area, “Lithium Valley” is well-positioned to become a competitive source of lithium supply that could satisfy more than one-third of today’s worldwide lithium demand.
(c) Establishing a sustainable domestic battery manufacturing ecosystem, embedded in Lithium Valley, will not only support the transition to electrified transportation, but help California meet its climate goals, and serve as a vital source for critical minerals essential to economic and national security.

(a)

(d) Executive Order N-79-20 (2020) states that “a sustainable and inclusive economic future for California will require retaining and creating high-road, high-quality jobs through sustained engagement with communities, workers and industries in changing and growing industries.”

(b)

(e) Community Workforce Agreements (CWAs) have a proven track record of ensuring job quality and job access, and securing robust training pathways in the construction trades.

(c)

(f) CWAs are currently used in the construction of utility-scale renewable energy projects, public transit and high-speed rail infrastructure, and several large-scale construction projects funded by the Greenhouse Gas Reduction Fund.

(d)Executive Order N-79-20 (2020) requires the Labor and Workforce Development Agency and the Office of Planning and Research to, by July 15, 2021, develop and implement a Just Transition Roadmap that is consistent with the recommendations in the report “Putting California on the High Road: A Jobs and Climate Action Plan for 2030,” developed pursuant to Chapter 135 of the Statutes of 2017.

(e)

(g) It is the intent of the Legislature to expand the use of CWAs on climate investments involving large-scale construction projects. battery manufacturing and lithium-based technology.

2101.
 (a) A public entity may use, enter into, or require contractors to enter into, a community workforce agreement for a construction project related to any of the following: battery manufacturing and lithium-based technology.

(1)Renewable energy.

(2)Energy efficiency retrofits.

(3)Electric vehicle charging infrastructure and transit infrastructure projects.

(4)Installation of emission controls in refineries.

(5)Leakage abatement in oil and gas distribution.

(6)Waste and water infrastructure.

(b) For purposes of this chapter, “public entity” means a public entity as defined in Section 1100.
(c) For purposes of this chapter, “community workforce agreement” means an agreement that meets the requirements of Section 2500 and includes a linguistically and technically accessible participatory process by which local area residents identify provisions to promote social investments, employment, and career opportunities for economically disadvantaged communities.

(c)

(d) This chapter shall apply only to the extent permissible under state and federal law.