GOOD MORNING AND WELCOME TO
TODAY'S HEARING OF THE
ASSEMBLY'S ACCOUNTABILITY AND
ADMINISTRATIVE REVIEW COMMITTEE
. BEFORE WE JUMP INTO OUR
HEARING, I'LL JUST MAKE A COUPLE
OF HOUSEKEEPING ANNOUNCEMENTS.
TO ENSURE THAT MEMBERS OF THE
MEDIA AND THE PUBLIC HAVE ACCESS
TO TODAY'S PROCEEDINGS. THIS
HEARING WILL BE STREAMED ON THE
ASSEMBLY'S WEBSITE AND MEMBERS
OF THE PUBLIC CAN PROVIDE
TESTIMONY HERE IN PERSON IN ROOM
4 37. ALL WITNESS TESTIMONY WILL
BE IN PERSON TODAY. THERE WILL
BE NO PHONE TESTIMONY OPTION FOR
THIS HEARING AT THE APPROPRIATE
TIME. IF ANY MEMBER OF THE
PUBLIC IN THE ROOM WOULD LIKE TO
TESTIFY, I WILL ASK YOU TO
APPROACH THE MICROPHONE WHEN WE
OPEN UP. PUBLIC COMMENT TO
PRESERVE THE SAFETY OF EVERYONE
HERE AND TO ENSURE THE PUBLIC'S
ACCESS TO OUR PROCEEDINGS.
PLEASE FOLLOW THE DIRECTION OF
OUR SERGEANTS. AND LASTLY, I DO
WANT TO ACKNOWLEDGE THAT THE
ASSEMBLY HAS EXPERIENCED SEVERAL
DISRUPTIONS TO COMMITTEE AND
FLOOR PROCEEDINGS IN RECENT
YEARS. WE WANT TO ENSURE THAT
ALL VOICES ARE HEARD, HOWEVER,
CONDUCT THAT DISRUPTS, DISTURBS
OR OTHERWISE IMPEDES. THE
ORDERLY CONDUCT OF OUR HEARING
IS PROHIBITED. THANK YOU IN
ADVANCE FOR YOUR COOPERATION. SO
WE DO NOT HAVE A QUORUM, SO
WE'RE GONNA GO AHEAD AND BEGIN
AS A SUBCOMMITTEE. WE HAVE PUT
OUT A CALL TO AUTHORS AND WE'LL
BE ABLE TO DIVE INTO OUR HEARING
AS SOON AS A SENATOR ARRIVES.
ALWAYS LIKE. AND MY APOLOGIES.
WE DO HAVE A SENATOR WHO IS
INCOGNITO WITH THE MESS. SO
WELCOME, SENATOR GONZALEZ. GOOD
MORNING. MORNING, EVERYONE. ALL
RIGHT. GOOD MORNING, MADAM CHAIR
AND MEMBERS. I'M HERE TO PRESENT
SENATE BILL 12 51, WHICH WILL
CREATE A ZERO EMISSION EQUITY
ADVOCATE IN THE GOVERNOR'S
OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT. AS WE KNOW THEIR
EMISSION VEHICLE, INCLUDING
PASSENGER VEHICLES, BUSSES AND
TRUCKS ARE ESSENTIAL TO REDUCE
OUR STATE'S GREENHOUSE GAS
EMISSIONS AND AIR POLLUTION THAT
HARMS SO MANY CALIFORNIANS.
HOWEVER ACCESS TO XEV IS
CURRENTLY NOT EQUITABLE IN ALL
PARTS OF CALIFORNIA. WHITE
HIGHER INCOME HOUSEHOLDS ARE FAR
MORE LIKELY TO OWNS ABS AND
LOWER INCOME HOUSEHOLDS OF
COLOR. AND THIS IS ESPECIALLY
TRUE IN COMMUNITIES THAT ARE
OVERBURDENED BY EMISSIONS. SB 12
51 WILL TACKLE THIS ISSUE BY
CREATING A ZERO MISSION EQUITY
ADVOCATE THAT WILL SERVE AS A
CENTRALIZED ENTITY TO PUT EQUITY
FRONT AND CENTER. 12 51 WILL
ADDRESS THE CURRENT GAPS AND
EQUITY BY ENSURING LOCAL VOICES
ARE HEARD IN STATE PLANNING AS
WELL TESTIFYING IN SUPPORT OF
THE BILL TODAY I HAVE MICHAEL
SWORDS FROM THE L, A CLEAN TECH
INCUBATOR. THANK YOU, SENATOR.
GOOD MORNING. MY NAME IS MICHAEL
SWORDS. AND I'M, THE VICE
PRESIDENT FOR GOVERNMENT
RELATIONS AT THE LOS ANGELES
CLEAN TECH INCUBATOR OR LACEY. I
WOULD LIKE TO THANK THE
COMMITTEE FOR PROVIDING ME WITH
THE OPPORTUNITY TO SPEAK ABOUT
THIS IMPORTANT BILL THIS
MORNING. I WOULD ALSO LIKE TO
THANK SENATOR GONZALEZ FOR HER
LEADERSHIP AND FOR WORKING HAND
IN HAND WITH LACEY AND ALLIES IN
THE ENVIRONMENTAL JUSTICE
SECTOR, WITH WHOM WE HAVE
DEVELOPED SB. 12 51. AS
CALIFORNIA WORKS TO ACHIEVE IT'S
CRITICALLY IMPORTANT GOALS TO
TRANSITION CARS, TRUCKS AND
BUSSES TO ZERO MISSIONS. AND AS
THE STATE INVEST SIGNIFICANT
FUNDING TO SUPPORT THIS
TRANSITION, IT'S ESSENTIAL THAT
THE STATE SET AN EQUITY AGENDA
FOR THE DEPLOYMENT OF ZERO
EMISSION VEHICLES. THE
SUPPORTING INFRASTRUCTURE AND
RELATED WORKFORCE DEVELOPMENT.
THAT IS THE IDEA BEHIND SB 12 51
, WHICH WOULD CREATE THE OFFICE
OF THE ZERO MISSION VEHICLE
EQUITY ADVOCATE, JUST FACILITATE
CONNECTIONS BETWEEN COMMUNITY
GROUPS AND AGENCIES. REGARDING
ZEEV EQUITY. ALIGN EQUITY
DEFINITIONS, PLANNING AND
METRICS ACROSS AGENCIES AND
PROGRAMS WITH AN EYE TO FUNDING
EQUITY PRIORITIZATION ACROSS
AGENCIES IN THERE, ZEV
DEPLOYMENT WORK. AND EVALUATE
STATE PROGRAMS AND FUNDING FOR
EQUITABLE XEV DEPLOYMENT,
PROVIDING REGULAR DATA AND
REPORTS ON HOW WELL THE STATE IS
ACHIEVING INEQUITABLE XEV
DEPLOYMENT. TODY WE HAVE
MULTIPLE XEV FUNDING PROGRAMS
THAT ARE AWARDED ON A FIRST COME
FIRST SERVED BASIS. IN SOME
CASES, THESE PROGRAMS ARE
SUBSCRIBED WITHIN SECONDS. AND
WE'RE MISSING AN OPPORTUNITY TO
REFINE THESE PROGRAMS TO ENSURE
THAT WE'RE CREATING IMPACT FOR
HIGHLY POLLUTED COMMUNITIES.
THIS IS JUST ONE EXAMPLE OF THE
TYPE OF RECOMMENDATION THAT
COULD BE MADE, BUT IT ZEV EQUITY
ADVOCATE TO ENSURE THAT THE
INVESTMENT WE ARE MAKING AS A
STATE. IS SPENT IN WAYS THAT ARE
EFFECTIVE AND EFFICIENT IN
ADVANCING OUR SHARED COMMITMENT
TO AN EQUITABLE XEV TRANSITION.
THIS IS A CONCEPT THAT COMES
FROM AND RESONATES STRONGLY WITH
OUR ALLIES IN THE ENVIRONMENTAL
JUSTICE SPACE. I WOULD LIKE TO
POINT OUT THAT THE REASON WHY
ARE EJ PARTNERS WEREN'T ABLE TO
TESTIFY ON BEHALF OF S B 12 51
TODAY. IS ONE OF THE PRIMARY
REASONS WHY WE NEED SP 12 51.
EQUITY GROUPS ARE CAPACITY
CONSTRAINED, AND THEY OFTEN
DON'T HAVE THE RESOURCES
NECESSARY TO TRAVEL TO
SACRAMENTO TO ADVOCATE FOR THEIR
PRIORITIES IN THE CLEAN
TRANSPORTATION SPACE. THIS
RESOURCE DEFICIT REINFORCES THE
NEED FOR A FULL TIME EQUITY
ADVOCATE AND SACRAMENTO LACEY
AND OUR ALLIES. RESPECTFULLY ASK
FOR YOUR I VOTE. THANK YOU. AND
BEFORE WE MOVED TO OTHER
WITNESSES IN SUPPORT, WE'RE
GONNA JUST PAUSE FOR A MOMENT TO
ESTABLISH QUORUM AS SECRETARY.
PLEASE CALL THE ROLL. OH,
PETRIE-NORRIS HERE. PATERSON.
GREAT. LUCKY. MEDINA. STONE AND
WILSON. ALRIGHT GREAT. WE DO
HAVE A QUORUM WITH THAT I'LL
OPEN IT UP FOR ANY ADDITIONAL
WITNESSES IN SUPPORT IN THE
ROOM. SEEN NONE. ANY WITNESSES
IN OPPOSITION? SEEN NONE
ALTERNATE BACK TO THE COMMITTEE
FOR ANY QUESTIONS OR COMMENTS.
YOU HAVE A QUESTION REAL
QUICKLY. FIRST OF ALL, ARE YOU
OPEN TO, INCLUDING REGIONAL
EQUITY AND THE ADVOCACY OF THIS
OFFICE. I KNOW THAT RURAL AREAS
. RURAL AREAS ARE OFTEN LOW
INCOME AND DISADVANTAGED, BUT TO
MAKE IT AN EXPLICIT GOAL WOULD
BE BENEFICIAL. RURAL AREAS WILL
UNDOUBTEDLY HAVE A HARD TIME
COMPLAINING WITH THESE RESERVE
MANDATES. ABSOLUTELY AND THANK
YOU SO MUCH FOR THE QUESTION
ASSEMBLYMEMBER'S AND YES, WE
WANT TO ENSURE THAT IT IS NOT
ONLY JUST CERTAIN COMMUNITIES OF
COLOR OR DEMOGRAPHICS, BUT ALSO
REGIONAL AS WELL. I AGREE.
EQUITY ADVOCATES SHOULD BE AN
EQUITY ADVOCATE FOR ALL PARTS OF
THE STATE. AND ALL FOLKS THAT
SEEM TO BE IN IN HIGHLY BURDENED
AIR MISSION BURDEN AREAS AS WELL
. BUT MICHAEL, I DON'T KNOW IF
THERE'S ANYTHING ELSE YOU'D LIKE
TO COULDN'T AGREE MORE CENTER.
SO COULD I LOOK FORWARD TO AN
ACTUAL EXPLICIT EXPRESSION OF
THAT POINT? OH, I LOVE JUST THE
INFERENCE DOESN'T QUITE CUT IT,
BUT WE'VE HAD THIS BEFORE. THIS
KIND OF INFERENCE THAT WE'RE
GOING TO BE ADDRESSED AND WE ARE
NOT SO OUR CONFIDENCE IS LOW
UNLESS IT'S EXPLICITLY EXPRESSED
WOULD LOVE TO WORK WITH YOU ON
THAT. ABSOLUTELY. OKAY. THANK
YOU. THANK YOU. ASSEMBLYMEMBER'S
LACKEY. UH SEEN NO FURTHER
QUESTIONS OR COMMENTS FROM
COMMITTEE MEMBERS. I'LL JUST SAY
THAT I THINK, AS YOU NOTED IN
YOUR COMMENTS, WE ARE INVESTING
BILLIONS BILLIONS OF DOLLARS TO
ACHIEVE CALIFORNIA'S AS YOUR
OMISSION. VEHICLE CALLS. WE'VE
GOT TO ENSURE THAT THOSE DOLLARS
ARE ROLLED OUT EQUITABLY AND
WITH ACCOUNTABILITY, SO THANKS
FOR BRINGING THIS MEASURE
FORWARD, WOULD YOU LIKE TO
CLOSE? I JUST WOULD LIKE TO SAY
ON THAT POINT AS WELL OVER $20
BILLION IN A CLIMATE PACKAGE
THAT WE'RE NEGOTIATING RIGHT NOW
IT SHOULD TOUCH ALL PARTS OF THE
STATE OF CALIFORNIA AND ENSURE
THAT THIS EQUITY ADVOCATE REALLY
TRULY IS PROVIDING THE SERVICES
THAT WE NEED FOR ZERO MISSION
TRANSITION. NOT JUST FOR LIGHT
DUTY, BUT ALSO FOR MEDIUM HEAVY
DUTY TRUCKS AS WELL AS WE KNOW
MANY OF US HAVE POLLUTION BURDEN
NEIGHBORHOODS THAT WE COME FROM
. SO WITH THAT, I RESPECTFULLY
ASK FOR MY VOTE. THANK YOU FOR
THE QUESTIONS AS WELL. AND WE DO
NEED A MOTION AND A SECOND. I'LL
GO AHEAD AND MOVE THE BELL.
GREAT THANK YOU. THE MOTION IS
DO PASS AND REFER TO THE
COMMITTEE ON TRANSPORTATION.
SECRETARY CAN YOU PLEASE CALL
THE ROLL PETRIE-NORRIS?
PATERSON. GREAT. LACKING MEDINA.
STONE AND WILSON. SO 20. WE'LL
PUT THAT BILL ON CALL AND WAIT
FOR OTHER MEMBERS TO ARRIVE.
THANK YOU. RIGHT SCENE. WE ARE
WAITING FOR AUTHORS. PAGING
ABSENT SENATORS.
LET'S GO AHEAD AND DISPENSE WITH
THE CONSENT CALENDAR. UM IS
THERE A MOTION ALL RIGHT. THANK
YOU. ASSEMBLYMEMBER'S SO TODAY'S
CONSENT CALENDAR. WE HAVE TWO
BILLS. SB 11 92 BY SENATOR KOBO
AND SB 10 69 BY SENATOR HAMBURG
SECRETARY CAN YOU PLEASE CALL
THE WRONG PETRIE-NORRIS. AYE.
PATERSON. LIKE YOU. AND WILSON.
ALRIGHT, WONDERFUL FOR ZERO.
HELLO HELLO, SENATOR MCLAUGHLIN.
HOW ARE YOU?
STINTS OF THAT LEASE ON CURRENT
CALIFORNIA LAW REQUIRES STATE
AGENCIES THAT REGULATE THE
IMPACT OF SMALL BUSINESSES TO
HAVE A SMALL BUSINESS LEADS ON
BUT THERE'S NO EQUIVALENT FOR
NONPROFITS. THE NONPROFIT SECTOR
IS THE FOURTH LARGEST EMPLOYER
IN OUR STATE. IT GENERATES 1/6
OF CALIFORNIA'S GROWTH STATE
PRODUCT AND PRODUCES OVER $40
BILLION INTO THE STATE EACH YEAR
FROM OUT OF STATE SOURCES.
DESPITE THE VITAL ROLES THAT
NONPROFITS PLAYING CALIFORNIA'S
SERVICES SUPPLY CHAIN AND
ECONOMY, THEY HAVE NO DESIGNATED
GOVERNMENT OFFICIAL TO HELP THEM
ADDRESS CHALLENGES IN THEIR
PARTNERSHIPS WITH STATE
AGENCIES. NAVIGATE AGENCY
REGULATIONS OR IMPROVE AGENCY
CONTRACT PRACTICES TO INCREASE
PROGRAM EFFECTIVENESS. AND I
THINK YOU'RE HERE FOR THE NEXT
ONE. AH WE DO HAVE JENNIFER
FEARING WITH CAL NONPROFITS HERE
TODAY TO SPEAK IN SUPPORT OF THE
BILL. ALL RIGHT. GOOD MORNING.
WHENEVER YOU'RE READY. SORRY
COMING FROM ANOTHER HEARING.
GOOD MORNING. MANNING, MADAM
CHAIR AND MEMBERS. JENNIFER
FEARING I'M THE SACRAMENTO
ADVOCATE FOR THE CALIFORNIA
ASSOCIATION OF NONPROFITS COUNT
ON PROFITS, WHICH IS A STATEWIDE
ALLIANCE OF MORE THAN 10,000
NONPROFIT ORGANIZATIONS. THANK
YOU, SENATOR LIMÓN FOR
CHAMPIONING THIS IMPORTANT BILL.
CALIFORNIA'S ECOSYSTEM OF
SERVICES IS A CLOSE
INTERDEPENDENCE BETWEEN STATE
AGENCIES AND NONPROFITS. STATE
AGENCIES DEPEND ON NONPROFITS TO
PROVIDE SERVICES TO PEOPLE WITH
DISABILITIES, MEDICAL AND
ADDICTION SUPPORT AFTER SCHOOL
PROGRAMS. IN RECREATION AND THE
ARTS AND ANIMAL WELFARE AND,
MOST RECENTLY, INVISIBLY AND FOR
COVID 19 SUPPORT OF ALL KINDS
THE LEGISLATURE HAS RECOGNIZED
AT STATE GOVERNMENT HAS AN
INTEREST IN STREAMLINING HOW IT
CONTRACTS WITH SMALL BUSINESS.
AND IN NURTURING THE SMALL
BUSINESS SECTOR IS A KEY
ECONOMIC DRIVER. CALTRANS TB,
THE WORKFORCE DEVELOPMENT BOARD
, PUC AND OTHERS DEMONSTRATE THE
USEFULNESS OF THE LIAISONS BY
PUBLICIZING THOSE LIAISONS WITH
SMALL BUSINESSES. THIS BILL
RECOGNIZES THE STATE HAS A
SIMILAR INTEREST IN STREAMLINING
CONTRACTS AND CONTACTS WITH NON
PROFITS AND SUPPORTING
COMPLIANCE AND IN SUPPORTING
NONPROFITS AS PART OF THE SUPPLY
CHAIN OF SERVICES IN THE STATE.
THE RECENT COVID RELIEF GRANTS
PROGRAM HAS REVEALED HOW
NONPROFITS ARE DIFFERENT FROM
SMALL BUSINESSES. WE HAVE
DIFFERENT GOVERNANCE STRUCTURES,
DIFFERENT BUSINESS MODELS,
DIFFERENT CONSTITUENCIES AND
DIFFERENT GOALS AND ASPIRATIONS.
SO THIS BILL RECOGNIZES THE
IMPORTANCE AND UNIQUENESS OF
CALIFORNIA'S NONPROFIT
COMMUNITY, AND WE WOULD REALLY
APPRECIATE YOUR SUPPORT TODAY.
THANK YOU. AND YOU HAVE ANOTHER
WITNESS SO LONG. SHE'S HERE FOR
THE NEXT BILL, BUT WE'RE JUST
GOING TO HAVE HER SIT HERE.
UNDERSTOOD OKAY. THANKS.
TERRIFIC GREAT. UH SO WE'LL GO
AHEAD AND OPEN IT UP FOR
ADDITIONAL TESTIMONY AND
SUPPORT. IS THERE ANYONE IN THE
HEARING ROOM WISHING TO TESTIFY
AND SUPPORT SEEN NONE. ANYONE IN
THE HEARING ROOM WISHING TO
TESTIFY IN OPPOSITION. GO AHEAD.
AND IF YOU'RE HERE TO TESTIFY,
YOU CAN APPROACH THE MICROPHONE.
YOU CAN COME TO THE MICROPHONE.
I WOULD OPPOSE IT. JUST BECAUSE
WHAT I JUST HEARD IT SOUNDS VERY
COMMUNIST. SO I WOULD HIGHLY
OPPOSE IT. THANK YOU. ALRIGHT
SEEN NO OTHER WITNESSES IN
OPPOSITION. I'LL GO AHEAD AND
OPEN IT UP FOR QUESTIONS OR
COMMENTS FROM THE COMMITTEE.
ALRIGHT SENIOR HEARING NONE.
SENATOR WOULD YOU LIKE TO CLICK?
I RESPECTFULLY ASK FOR MY VOTE.
THANK YOU, AND WE DO NEED A
MOTION. UM OKAY. MOTION FROM
ASSEMBLYMEMBER'S PATTERSON,
SECOND FROM ASSEMBLYMEMBER'S
WILSON, UH, THE MOTION IS DO
PASS AND REFER TO THE COMMITTEE
ON APPROPRIATIONS. SECRETARY
PLEASE CALL THE ROLL
PETRIE-NORRIS. PATERSON. LACKEY.
AND WILSON. OKAY 40. THAT BILL
IS OUT AND WE'LL GO AHEAD AND
LEAVE THE ROLL UP IN FURTHER
MEMBERS TO ADD ON AND YOU HAVE
ANOTHER ANOTHER BILL BEFORE US.
THANK YOU. I HAVE ONE MORE BILL.
SB 13 87. SP 13 87 REQUIRES THAT
STARTING DECEMBER 1ST 2020 FOR
AN ANNUAL REPORT WITH THE
AGGREGATE DEMOGRAPHIC
INFORMATION OF INDIVIDUALS
APPOINTED BY THE GOVERNOR TO
STATE BOARDS AND COMMISSIONS IS
COMPLETED. THIS BILL ALSO
ESTABLISHES A WORKING GROUP TO
DISCUSS AND MAKE RECOMMENDATIONS
TO ENSURE BOARDS AND COMMISSION
REFLECT THE DIVERSITY OF THE
STATE. TO ENSURE CALIFORNIA'S
LEADERSHIP REFLECTS ITS GREATER
POPULATION, THE COLLECTION OF
GUBERNATORIAL POINTING
DEMOGRAPHIC INFORMATION AND DATA
IS A CRITICAL STEP TO ACHIEVE
AND MAINTAIN GENDER. ETHNIC AND
GEOGRAPHICAL EQUITY ON BOARDS
AND COMMISSIONS. THE ANNUAL
REPORT WILL SERVE AS A TOOL TO
IDENTIFY GAPS AND REPRESENTATION
, ENCOURAGE OUTREACH TO
COMMUNITIES AND ADDRESS BARRIERS
IN SEEKING AN APPOINTMENT. THE
INTENT OF THIS BILL IS TO GATHER
FACTS TO HELP US
INSTITUTIONALIZED BEST PRACTICES
AND GAINS MADE TO REALLY
DIVERSIFY OUR STATE'S BOARDS AND
COMMISSIONS ON A LOT OF
DIFFERENT LEVELS. TODAY WITH ME
, I HAVE STEPHANIE RAMIREZ SURAT
, WHO IS HERE ON BEHALF OF THE
SPANISH ORGANIZED FOR POLITICAL
EQUALITY IN SUPPORT OF THE BILL.
THANK YOU, SENATOR LIMÓN GOOD
MORNING CHAIR PETRIE NORRIS AND
COMMITTEE MEMBERS AS SENATOR,
LEMON SAID. MY NAME IS STEPHANIE
RAMIREZ. SARAH I'M THE SENIOR
PROGRAM MANAGER FOR THE SPANISH
ORGANIZED FOR POLITICAL
EQUALITY, ALSO KNOWN AS HOPE.
HOPE IS A NONPROFIT, NONPARTISAN
ORGANIZATION COMMITTED TO
ENSURING THE POLITICAL AND
ECONOMIC PARODY OF LATINAS
THROUGH LEADERSHIP. ADVOCACY AND
EDUCATION TO BENEFIT ALL
COMMUNITIES AND THE STATUS OF
WOMEN. HOPE IS A PROUD SPONSOR
OF SB 13 87, AND WE'RE GRATEFUL
TO BE WORKING WITH SENATOR
LEHMAN ON THIS IMPORTANT TOPIC.
IF ENACTED AS B 13 87 WILL BE A
TOTAL HIGHLIGHT WHERE
DISPARITIES IN REPRESENTATION
EXISTS AND WHAT COMMUNITIES AND
VOICES ARE MISSING FROM BOARDS
AND COMMISSIONS ACROSS THE
STATE. IN ADDITION TO THE ANNUAL
REPORT, SP 13 87 WILL CREATE A
TIME LIMITED WORKING GROUP THAT
IS TASKED WITH IDENTIFYING
BARRIERS AND SOLUTIONS TO
DIVERSIFYING THE APPOINTMENT
PROCESS. THIS GROUP IS ADVISORY
IN NATURE. AND IT DOES NOT HOLD
ANY AUTHORITY IN DECISION
MAKING. HOWEVER IT WILL
CONTRIBUTE TO A DEEPER
UNDERSTANDING OF DIVERSE
COMMUNITIES ACROSS THE STATE.
WITH CALIFORNIA BEING THE MOST
POPULOUS STATE IN THE COUNTRY.
HOPE REMAINS COMMITTED TO
ENSURING THAT OUR STATES
GOVERNANCE IS TRULY
REPRESENTATIVE OF ITS RICH
DIVERSITY. IT IS IMPORTANT TO
NOTE THAT RESEARCH SHOWS THAT
DIVERSITY IN GOVERNMENT LEADS TO
POLICIES THAT BETTER REFLECT THE
INTERESTS OF THOSE REPRESENTED.
WE BELIEVE IT'S TIME FOR
CALIFORNIA TO CREATE FORMAL
MECHANISMS TO ENSURE THAT ITS
GOVERNANCE TRULY REFLECTS THE
COMMUNITY'S BEING SERVED, AND WE
BELIEVE THAT DEMOCRACY IS
STRONGER WHEN EVERYONE HAS A
SEAT AT THE TABLE. FOR THESE
REASONS, I RESPECTFULLY I'VE
ASKED FOR YOUR VOTE TODAY. THANK
YOU. THANK YOU. ALRIGHT WE'LL
TURN TWO ADDITIONAL WITNESSES IN
SUPPORT ANYONE IN THE HEARING
ROOM WISHING TO TESTIFY IN
SUPPORT SEEN NONE. ANYONE IN THE
HEARING ROOM WISHING TO TESTIFY
AND OPPOSITION ON SB 13 87. SEEN
NONE WILL TURN IT BACK TO THE
COMMITTEE ANY QUESTIONS OR
COMMENTS? I SEE NONE. SENATOR
WOULD YOU LIKE TO RESPECTFULLY
ASK FOR AN I VOTE? THANK YOU. WE
DO NEED A MOTION. THAT MOTION
FROM ASSEMBLYMEMBER'S MEMBER
WILSON, I'LL SECOND THAT AND
SECRETARY PLEASE CALL THE ROLL
PETRIE-NORRIS. BY PATTERSON.
LIKE HIM. AND WILSON. AT TWO IN
AND WE'LL GO AHEAD AND LEAVE
THAT BILL ON CALL. THANK YOU.
ALL RIGHT. THANK YOU. MOVING
BACK TO FILE ITEM TO SENATOR
KOBO.
GOOD MORNING, NÓ. EITHER ONE.
GOOD MORNING, MADAM CHAIR AND
MEMBERS PLEASED TO PRESENT
SENATE BILL 13 21. THANK YOU TO
THE CHAIR AND THE COMMITTEE
STAFF ARE WORKING WITH ME ON
THIS MEASURE. TAKING THE
COMMITTEE'S PROPOSED AMENDMENTS
AS WE 13 21 WILL CREATE A
DESIGNATION WITHIN THE STATE OF
EMERGENCY BIDDING PROCESS THAT
HIGHLIGHTS CALIFORNIAN
HEADQUARTERED COMPANIES AS WELL
AS COMPANIES THAT ARE
HEADQUARTER ELSEWHERE IN THE
UNITED STATES. BUT STILL
MANUFACTURE THEIR GOODS IN
CALIFORNIA DURING A STATE OF
EMERGENCY. THE EXECUTIVE BRANCH
WHEELS FOR POWER TO AWARD PUBLIC
CONTRACTS FOR A VARIETY OF GOODS
AND SERVICES WITHOUT THE NORMAL
COMPETITIVE BIDDING PROCESS.
MANY CALIFORNIA MANUFACTURING
COMPANIES OFTEN LOSE OUT ON
THESE BIDS IN FAVOR OF LARGE
SCALE INTERNATIONAL COMPANIES
WHO CAN AFFORD TO QUICKLY
PRODUCE GOODS TO SCALE AT A
BELOW MARKET RATE. GIVEN THAT
THE CALIFORNIA HAS A VAST NUMBER
OF MANUFACTURERS SPENDING
VARIOUS INDUSTRIES IN THE STATE
. THIS BILL PROVIDES THE STATE
WITH THE OPPORTUNITY TO KEEP
BUSINESSES AND JOBS IN
CALIFORNIA. CALIFORNIA'S 2021
BUDGET ALLOCATED 920.6 MILLION
FOR MASKS. DOLLARS MILLION. $920
MILLION FOR MASK ALONE IF THIS
MONEY HAD BEEN ALLOCATEDTO A
NUMBER OF CALIFORNIA BASED PPE
MANUFACTURERS, THE STATE WOULD
HAVE INJECTED NEARLY A BILLION
DOLLARS INTO OUR OWN ECONOMY.
THIS WOULD HAVE HELPED HAD A
RIPPLE EFFECT IN CALIFORNIA'S
ECONOMY, STIMULATING BUSINESSES
JOB OPPORTUNITIES AS SUPPORTING
BLUE COLLAR WORKERS IN THIS
STATE. THIS PUSH FOR LOCAL
INDUSTRY WILL ALSO ENCOURAGE
FURTHER TECHNOLOGICAL
INNOVATION. AS CALIFORNIA
RECOVERS FROM COVID 19. THE
STATE SHOULD FOCUS ON UPDATING
ITS STATE OF EMERGENCY POLICIES
TO PROVIDE SPECIAL DESIGNATION
FOR CALIFORNIA COMPANIES AS WELL
AS THOSE THAT ARE BASED IN THE
UNITED STATES. BUT DO THEIR
BUSINESS PRIMARILY IN CALIFORNIA
, AS CALIFORNIA CONSIDERS PUBLIC
BIDS FROM COMPANIES WHO ARE
HEADQUARTERED IN CALIFORNIA OR
IN THE UNITED STATES. SP 13 21
PROVIDES THE STATE WITH THE
OPPORTUNITY TO IDENTIFY THIS
CALIFORNIA COMPANIES. I
RESPECTFULLY ASK FOR YOUR VOTE.
JOINING ME THIS THIS MORNING TO
TESTIFY AND SUPPORT IS BRIAN
KENNEDY ON BEHALF OF BPL MEDICAL
THANK YOU, MADAM CHAIR BRIAN
KENNEDY AND ONE OF THE OWNERS OF
BPL MEDICAL WHERE A MANUFACTURER
OF P P E IN RANCHO CUCAMONGA.
THIS IS A COMMON SENSE PIECE OF
LEGISLATION. 13 21 THAT EXPOSES
STATE CONTRACTORS WITH THE
KNOWLEDGE OF WHERE THINGS ARE
ACTUALLY BEING MANUFACTURED. IT
TURNS OUT THAT DURING THE COVID
CRISIS, THE STATE OF CALIFORNIA
HAD TO TURN MOSTLY TO CHINA. TO
GET OUR PPE. AND IF WE WOULD
HAVE DONE IT IN CALIFORNIA, IT
WOULD HAVE BEEN HIGHER QUALITY.
IT WOULD HAVE LOWERED THE
ENVIRONMENTAL COSTS OF SIMPLY
BRINGING THEM HERE. AND WHY
WOULDN'T WE EMPLOY CALIFORNIANS?
FIRST AND FOREMOST, IF THAT'S AT
ALL POSSIBLE, AND SO, AS I SAY,
I THINK THIS IS COMMON SENSE
LEGISLATION THAT'S LONG OVERDUE.
THANK YOU. AND THANK YOU. WE'LL
GO AHEAD AND OPEN IT UP TO
ADDITIONAL WITNESSES IN SUPPORT
ANYONE IN THE HEARING ROOM
WISHING TO TESTIFY IN SUPPORT ON
SB 11 92. SEEN NONE. AYE. I WILL
GO AHEAD AND OPEN IT UP FOR
WITNESSES IN OPPOSITION. ANYONE
WISHING TO TESTIFY IN OPPOSITION
SEEN NONE. QUESTIONS OR COMMENTS
FROM THE COMMITTEE. ALRIGHT I'LL
JUST SAY, I THINK THIS IS A
CREATIVE CREATIVE WAY TO SUPPORT
CALIFORNIA COMPANIES AND ENSURE
THAT IN GOOD TIMES OR BAD WE'RE
DOING EVERYTHING WE CAN TO
SUPPORT OUR LOCAL HOMEGROWN
BUSINESSES. SO THANKS FOR
BRINGING THIS MEASURE FORWARD.
WOULD YOU LIKE TO CLOSE?
CERTAINLY 13 21 WILL SIMPLY
INCLUDE A MECHANISM FOR SELF
IDENTIFICATION OF A BIDDER WHO
IS HEADQUARTERED IN CALIFORNIA.
HAS A PRINCIPAL PLACE OF
BUSINESS IN CALIFORNIA AND THOSE
WHO ARE HEADQUARTERED IN THE
UNITED STATES BUT WHO PRIMARILY
MANUFACTURE THEIR GOODS AND
PROVIDES THEIR SERVICES IN
CALIFORNIA. I RESPECTFULLY ASK
FOR AN I VOTE. ALL RIGHT. THANK
YOU. UH, WE DO NEED EMOTION.
ALRIGHT MOVE BY ASSEMBLYMEMBER'S
LACKEY, SECOND BY
ASSEMBLYMEMBER'S PATTERSON. AH
AND THEN GO AHEAD AND MADAM
SECRETARY. PLEASE CALL THE ROLL.
THE MOTION IS DO PASS AND
REFERRED TO THE COMMITTEE ON
APPROPRIATIONS SECRETARY. PLEASE
CALL THE ROLL. PETRIE-NORRIS
PATTERSON. LIKE HIM. AND WILSON.
THANK YOU FOR ONE. I'M SORRY. 40
THAT BUILDS OUT AND WE'LL LEAVE
IT OPEN FOR OTHER MEMBERS TO ADD
ON. MOVING TO FILE ITEM. FIVE.
SENATOR LAIRD.
GOOD MORNING. GOOD MORNING.
WHENEVER YOU'RE READY, SENATOR.
THANK YOU, UH TODAY AND
PRESENTING SENATE BILL 13 OH
FIVE UPDATE AND SIMPLIFY THE
PROCESS FOR AWARDING STATE
CONTRACTS FOR ZERO EMISSION,
WHICH INCLUDES HYDROGEN FUEL
CELL VEHICLES, PLUG IN HYBRID
AND HYBRID ELECTRIC VEHICLES.
THE STATE'S CURRENT METHODOLOGY
WAS ADOPTED IN 2000 AND SEVEN IN
A DIFFERENT TIME AND PLACE. AND
REQUIRES BEFORE THERE'S A
PURCHASE OF A VEHICLE THAT THERE
BE AN ELABORATE METHODOLOGY ON
FLEX FUEL DONE. THIS IS
IRRELEVANT IN TERMS OF BUYING,
UM. ZERO EMISSION VEHICLES, AND
SO THIS BILL WILL UPDATE THE
EVALUATION METHODOLOGY TO NOT
REQUIRE THAT FOR ZERO EMISSION
VEHICLES. THE EXISTING
METHODOLOGY WOULD CONTINUE TO BE
USED FOR VEHICLES POWERED SOLELY
BY INTERNAL COMBUSTION ENGINES.
THE BILLS RECEIVED NO NO VOTES
AS BIPARTISAN SUPPORT. NO
REGISTERED OPPOSITION. WE HAVE
NO LEAD WITNESS. BUT WE HAVE A
BUNCH OF ORGANIZATIONS THAT I'M
NOT GOING TO LIST THAT ARE IN
SUPPORT. I RESPECTFULLY ASK FOR
THANK YOU. SENATOR WILL OPEN IT
UP FOR ANYONE WISHING TO PROVIDE
TESTIMONY AND SUPPORT IN THE
HEARING ROOM, GO AHEAD AND
APPROACH THE MICROPHONE. AND I'M
CHAIR DAN CHAW ON BEHALF OF
RIVAL AUTOMOTIVE AND STRONG
SUPPORT FOR THIS COMMON SENSE
MEASURE. THANK YOU. MADAM CHAIR
MEMBERS, PAT MORAN WITH AARON
READING ASSOCIATES, REPRESENTING
THE CALIFORNIA ASSOCIATION OF
PROFESSIONAL SCIENTISTS AND
SUPPORT THANK YOU. QUÊ. ANY
WITNESSES IN THE ROOM MACHINE TO
TESTIFY IN OPPOSITION. SEE NAN
WILL OPEN IT UP FOR ANY
QUESTIONS OR COMMENTS FROM
COMMITTEE MEMBERS.
ASSEMBLYMEMBER'S LACKEY. YOU
HAVE A QUESTION THAT CONCERNS ME
DEEPLY. DOES THIS BILL EXEMPT
THE PATROL VEHICLES FROM THE
CALIFORNIA HIGHWAY PATROL?
AUTHORIZED EMERGENCY VEHICLES
ARE SPECIFICALLY EXEMPTED IN
THIS BILL, AND THAT INCLUDES CHP
PATROL VEHICLES. HAPPY TO HEAR
THAT. THANK YOU. THANK YOU. UM
WELL, I AGREE. I HAVE TO AGREE
WITH ONE OF THE WITNESSES WHO
PROVIDED TESTIMONY AND SUPPORT.
IT CERTAINLY SEEMS LIKE A COMMON
SENSE MEASURE. SO THANKS FOR
BRINGING THIS FORWARD. WOULD YOU
LIKE TO CLOSE APPRECIATE THE
PEOPLE THAT TESTIFIED AND
RESPECTFULLY ASK FEAR, IVA.
RIGHT? WE NEED A MOTION MOVED BY
ASSEMBLYMEMBER'S WILSON AND I'LL
GO AHEAD AND SECOND. IT UM THE
MOTION IS DO PASS AND REFER TO
THE COMMITTEE ON APPROPRIATIONS
SECRETARY. POLICE CALL THE ROLL.
PETRIE-NORRIS PATERSON. ALRIGHT,
GREEN. LUCKY. AND WILSON. SO 40
THAT BILL IS OUT. WE'LL LEAVE
THE ROYAL CALLED OPEN FOR ABSENT
MEMBERS. THANK YOU. OKAY MOVING
TO FILE ITEM NUMBER EIGHT. SB 5
61 BY SENATOR DODD. GOOD
MORNING. GOOD MORNING, MADAM
CHAIR AND MEMBERS. I'LL BE BRIEF
SINCE THIS COMMITTEE HAS ALREADY
HEARD AND PASSED A SIMILAR BILL
EARLIER THIS YEAR. 5 61 SEEKS TO
CODIFY THE GOVERNOR'S EXECUTIVE
ORDER, WHICH DIRECTS H, C D AND
D. G S TO IDENTIFY EXCESS STATE
OWNED PROPERTY. FOR AFFORDABLE
HOUSING PROJECTS. AS YOU'RE ALL
AWARE, AFFORDABLE HOUSING IS ONE
OF THE BIGGEST PROBLEMS FACING
OUR STATE. THE BILL SETS UP A
PERMANENT PROCESS BY WHICH DGS
AND HDD CAN CONTINUE TO EVALUATE
STATE PROPERTIES FOR THE
POSSIBLE USE OF AFFORDABLE
HOUSING. JUST YESTERDAY. MY
COMMITTEE? UH THE GEO COMMITTEE
THAT I CHAIR PASSED OUT
ASSEMBLYMEMBER'S QUIRK-SILVA AS
BILL WHICH SEEKS TO DO SOMETHING
SIMILAR. WE ARE WORKING WITH HER
OFFICE ON THIS ISSUE WOULD
APPRECIATE THE OPPORTUNITY TO
CONTINUE THAT WORK. WE DID SOME
RECEIVE SOME AMENDMENTS. I GUESS
JUST YESTERDAY BY THE STATE
BUILDING TRADES AND CONSTRUCTION
TRADES. UM SO CLEARLY WE HAVEN'T
HAD TIME TO REMOVE, BUT WE'LL
HAVE THOSE CONVERSATIONS GOING
FORWARD RESPECTFULLY THAT'S
DRIVING. THANK YOU, SENATOR. UM
AND YOU DO NOT HAVE A PRIMARY
WITNESS IN SUPPORT WILL OPEN IT
UP FOR ANYONE IN THE HEARING
ROOM, WHERE SHE TO PROVIDE
TESTIMONY AND SUPPORT. I'VE SP 5
61. CHAIR AND MEMBERS MIKE WEST
ON BEHALF OF THE STATE BUILDING
AND CONSTRUCTION TRADES COUNCIL.
AS A SENATOR MENTIONED. WE DON'T
HAVE A POSITION ON THE BILL WE
HAD. HE HAS OUR AMENDMENTS AND
WE LOOK FORWARD TO CONTINUING IN
THAT DIALOGUE. THANK YOU. THANK
YOU. ANYONE IN THE HEARING ROOM
WISHING TO PROVIDE TESTIMONY IN
OPPOSITION? SEEN NONE QUESTIONS
OR COMMENTS FROM COMMITTEE
MEMBERS. SEEN DONE AS YOU
MENTIONED. THIS IS SIMILAR TO AN
ASSEMBLY BILL THAT WE HEARD
EARLIER THIS YEAR. SO I
APPRECIATE YOU AND
ASSEMBLYMEMBER'S QUIRK-SILVA
WORKING TOGETHER TO FIND A
SOLUTION THAT THAT MAKES SENSE,
AND IT'S CERTAINLY A SENSIBLE
THING FOR US TO ENSURE THAT WE
ARE DOING AS WE MOVE FORWARD. SO
WITH THAT, WOULD YOU LIKE TO
CLOSE YOUR EYES? OKAY. UM, DO WE
HAVE A MOTION? ALRIGHT MOTION BY
ASSEMBLYMEMBER'S WILSON. I WILL
SECOND IT, UH, THE MOTION IS DO
PASS AND REFERRED TO THE
COMMITTEE ON HOUSING AND
COMMUNITY DEVELOPMENT SECRETARY.
PLEASE CALL THE ROLL.
PETRIE-NORRIS PATTERSON. LUCKY.
GREEN. AND WILSON. OKAY 30, SO
THAT BUILDS ON CALL, AND WE'LL
WAIT FOR OTHER MEMBERS TO VERY
MUCH. THANK YOU, SENATOR. OKAY?
PERSON. GO. SINCE WE'RE WAITING,
HAVE WE HAVE WE REACHED. OKAY
UM, WOULD YOU LIKE TO GO AHEAD
AND LET'S GO AHEAD AND DO THE
ROLL CALL FOR THE BILLS THAT ARE
ON CALL. SO THAT, UH, MR GREG
CAN OUT ON. SB 5 43 MOTION IS
DUE PAST AND REFERRED TO
APPROPRIATIONS GRAY AYE. SB 5 61
MOTION IS. DO PASS AND REFER TO
HOUSING HEATS UP. I. BECAUSE WE
SP 13. OH, FIVE MOTIONS DO PASS
AND REFERRED TO APPROPRIATIONS.
THIS IS I. SB 13 21 THAT IS DO
PASS AND REFER TO APPROPRIATIONS
GREAT. SB 13 87 THAT IS DUE PAST
AND REFER TO JUDICIARY
COMMITTEE. GREAT. AND THAT'S. OH
THIS IS THE CONSENT CALENDAR, SO
SB 10 69 AND SP 11 92. FIRST
BILL IS FROM A JOB OH AND S B 10
69 IS HAMBURG. YES WE'LL GO
AHEAD AND ENTERTAIN VOTE CHANGES
AT THIS TIME. ASSEMBLYMEMBER'S
PATTERSON 05.
SECRETARY. DO YOU WANT TO GO
AHEAD AND.
OKAY MADAM SECRETARY. PLEASE GO
AHEAD AND REVIEW THE BILLS THAT
ARE ON CALL. SB 5. 43 IS DO PASS
AND REFER TO APPROPRIATIONS.
MEDINA. SB 5 61 MOTIONS DO PASS
AND REFERRED TO HOUSING AND
DEVELOPMENT COMMITTEE, MEDINA.
SB 10 69 AND SB 11 92 ARE ON
CONSENT TODAY. AYE. BEST B 12 51
IS DO PASS AND REFERRED TO
TRANSPORTATION MEDINA. SP 13.
OH, FIVE IS DO PASS AND REFER TO
APPROPRIATIONS MEDINA. SB 13 21
IS DO PASS AND REFERRED TO
APPROPRIATIONS MEDINA. SB 13 78
IS DUE PAST AND REFER TO
JUDICIARY COMMITTEE MEDINA. OKAY
GREAT. WE'LL GO AHEAD AND MOVE
TO, UH, THE LAST BILL ON THE
FILE FILE ITEM. NINE. SB 778,
SENATOR BECKER.
THANK YOU, MADAM CHAIR AND
MEMBERS. I JUST WANT TO
APPRECIATE THE OPPORTUNITY TO BE
HERE AND TALK ABOUT THIS BILL.
THIS BILL BILL. REALLY UM, I
JUST WANT TO THANK THE INDUSTRY
, PARTICULARLY THE CONCRETE
SUPPLIERS WHO WORKED WITH US FOR
THE LAST TWO YEARS. THIS REALLY
BUILDS ON THE WORK WE DID LAST
YEAR, WORKING WITH INDUSTRY TO
HAVE THE STATE SAID IN THAT ZERO
TARGET FOR CEMENT, AND THAT WAS
HISTORIC COMPROMISE OF
BIPARTISAN AGREEMENT. UM WHERE,
FOLKS SAID AFTER STARTING A
REPUBLICAN COLLEAGUE FROM THE
NATURAL RESOURCES COMMITTEE
TODAY, SAID THIS IS THE WAY WE
SHOULD DO THINGS. WE WORK WITH
INDUSTRY GET TOGETHER, FIND A
SOLUTION AND WE NOW HAVE A NET
ZERO TARGET FOR CEMENT. THE
QUESTION. IS THE STATE GOING TO
ACTUALLY BUY LOW CARBON,
CONCRETE AND CEMENT AND THAT'S
WHAT PEOPLE ARE TRYING TO FIGURE
OUT FOR FIVE YEARS FOR FIVE
YEARS, PEOPLE WORKING AND SAY,
HOW CAN WE PUT CONCRETE? INTO
THE BY CLEAN FRAMEWORK THAT YOU
ALL KNOW. AND CONCRETE WAS
CONSIDERED BUT IN THE ORIGINAL
BY CLEAN BILL AND REJECTED, WHY
IS THAT? WHILE CONCRETE IS MORE
COMPLETE, COMPLEX PRODUCT THAN
THE OTHERS THAT WERE INCLUDED.
BY CLEAN WAS DESIGNED TO SET A
MINIMUM STANDARD FOR PRODUCTS
THAT ARE PRODUCED IN FACTORIES
MAKING MILLIONS OF IDENTICAL
PRODUCTS LIKE STEEL, REBAR OR
PANES OF GLASS. MAKING CONCRETE
IS MORE LIKE RUNNING A BAKERY, A
SET OF STANDARD RECIPES, BUT THE
MIX OF CONCRETE THAT IS NEEDED
FOR A PROJECT EACH DAY MAY
DEPEND ON THE WEATHER, OR WHAT
INGREDIENTS ARE AVAILABLE AT THE
TIME SO DEALING WITH THE
VARIABILITY IS HARDER THAN JUST
GETTING IDENTICAL PRODUCTS IN A
FACTORY. SO A WORKABLE SOLUTION
FOR ADDING CONCRETE TO BUY CLEAN
HAS TO RECOGNIZE THIS ADDITIONAL
COMPLEXITY AND TO ACCOMMODATE IT
. THE GOOD NEWS IS AFTER MORE
THAN A YEAR OF WORK, AND WE
APPRECIATE THE CHAIR ASKED US TO
GO BACK AND WORK ON THIS. WE
COME UP WITH A FRAMEWORK THAT
BOTH ENVIRONMENTALISTS AND THE
CONCRETE INDUSTRY ACTUALLY AGREE
ON, WHICH IS REMARKABLE. AND
THIS BILL WILL DRIVE SIGNIFICANT
REDUCTIONS AND SHE ACTUALLY
EMISSIONS AS YOU PROBABLY KNOW.
CONCRETE AND CEMENT ARE SEVEN.
SOME PEOPLE SAY 7% OF YOU SAY 8%
OF THE WORLD'S CARBON EMISSIONS,
SO WE HAVE TO TACKLE BUILDING
MATERIALS. SO THIS BILL DRIVE
SIGNIFICANT REDUCTIONS AND THE
CONCRETE INDUSTRY SEES AS A FAIR
AND WORKABLE FRAMEWORK TO HELP
THEM TRANSITION TO LOWER CARBON
BUILDING MATERIALS. AND YOU CAN
ALSO READ THE LONG LIST OF
SUPPORTERS. WE HAVE THE BUILDING
INDUSTRY ASSOCIATION, THE
APARTMENT ASSOCIATION, THE
AMERICAN INSTITUTE OF ARCHITECTS
, THE US GREEN BUILDING COUNCIL,
ALL TOO RARE EXAMPLE OF TWO
SIDES ARE OFTEN OPPOSED. GETTING
TOGETHER TO FIND A SOLUTION. SO
I WISH I COULD JUST STOP THERE
AND ASK FOR YOUR SUPPORT, BUT WE
HAVE TO TALK ABOUT THE ONE
UNHAPPY GUESTS AT THIS OTHERWISE
VERY HAPPY PARTY, AND THAT'S A
GROUP OF GENERAL CONTRACTORS WHO
CLAIM THAT THIS BILL IS
UNWORKABLE FOR THEM. THE
CONTRACTORS RAISED CONCERNS
ABOUT THE BILL LAST SUMMER AGAIN
WE WERE GOING TO PRESENT THIS
AND SINCE THEN, MY TEAM HAS MADE
NUMEROUS CHANGES TO THE BILL TO
ADDRESS THESE CONCERNS. AND THE
BILL TOGETHER IS BETTER AND WE
APPRECIATE WORKING WITH THEM AND
WORKING WITH THE COMMITTEE. UM
BUT THE BILL BEFORE YOU HAVE
DEALT WITH EVERY ISSUE THAT THE
COMPUTER CAN READ THEIR LETTER
FROM 21. THIS BILL ADDRESSES
EVERY ISSUE THAT THE CONTRACTORS
IDENTIFIED IN THEIR OPPOSITION
LETTER. LAST YEAR. UNFORTUNATELY
STILL UNSATISFIED. THEY WANT TO
TREAT CONCRETE, JUST LIKE EVERY
OTHER FACTORY MADE PRODUCTS AND
BY CLEAN THEY WANT EVERY TYPE OF
CONCRETE TO HAVE A MAXIMUM
AMOUNT OF EMBODIED CO TWO PER
UNIT AND HAVE THAT MAXIMUM FORCE
ON EVERY BATCH OF CONCRETE. BUT
IT SAID EARLIER THAT WAS
CONSIDERED BACK IN 2017 THAT WAS
FOUND UNWORKABLE. AND THERE'S NO
REASON TO THINK THAT'S A BETTER
IDEA TODAY. WITH THIS BILL DOES
IF I WAS THE SAME IDEA OF
SETTING A TARGET AMOUNT OF
EMBODIED CONCRETE PRETTY FROM
BODY CARBON PER UNIT. BUT
MEET THOSE TARGETS, ON AVERAGE
ACROSS ALL THE CONCRETE
DELIVERED TO THE PROJECT, SO
BASICALLY WE'RE SAYING THAT
PROVIDING SOME FLEXIBILITY IN
MEETING THE TARGETS, MAYBE MORE
IMPORTANT FOR DEALING WITH
COMPLEXITIES OF CONCRETE, AND
THAT'S REALLY WHAT THIS IS
ABOUT. THE CONCRETE INDUSTRY
STRONGLY AGREES WITH THE
CONTRACTORS ARE DEMANDING THAT
WE ALLOW WITH THAT WE THAT WE
NOT ALLOW ANY FLEXIBILITY. UM
AND WE SAY THAT MAKES NO SENSE.
WE SHOULD WHAT MORE FLEXIBILITY
. USUALLY, INDUSTRY WANTS MORE
FLEXIBILITY. SO I DON'T KNOW
WHEN THE LAST TIME WE HEARD
INDUSTRY GROUPS SAYING THAT
GOVERNMENT GIVE THEM LEX
FLEXIBILITY FOR COMPLIANCE. BUT
THAT'S WHAT WE'RE TRYING TO DO
HERE. UM I KNOW IT'S A LONG
OPENING STATEMENT, BUT IMPORTANT
QUESTIONS. I WANT TO COVER A
COUPLE QUICK THINGS WILL TURN IT
OVER TO OUR WITNESSES. UM, BUT
THE SIMPLISTIC APPROACH THAT
THERE PUSHING FOR COULD HAVE A
NUMBER OF VERY SERIOUS
CONSEQUENCES. NUMBER ONE. A
STRICT APPROACH MIGHT MAKE IT
IMPOSSIBLE FOR SOME CONCRETE
SUPPLIERS TO BID FOR STATE
CONTRACTORS FOR SOME STATE
CONTRACTS, ESPECIALLY FOR VERY
HIGH PERFORMANCE CONCRETE.
WHETHER YOU CAN MEET THE CEO TO
TARGETS MAY DEPEND WE HAVE
ACCESS TO THE BEST RAW
MATERIALS. U FLEXIBILITY MAKES
IT POSSIBLE FOR MORE SUPPLIERS
TO COMPETE FOR STATE BUSINESS.
THEY MAY MEET IN SOME AREAS, NOT
MEETING OTHERS. THAT'S WHY WE
HAVE THIS CARBON BUDGET.
SECONDLY THE STRICT APPROACH
WILL COST THE STATE MONEY IN
ADDITION TO HAVING A HEALTHIER
MARKET WITH MORE QUALIFIED
SUPPLIERS, FLEXIBILITY GIVES
SUPPLIERS MORE WAYS TO COMPETE.
TO FIND EFFICIENT WAYS TO MEET
THE REQUIREMENTS AND THIRD
DISTRICT APPROACH MAY CAUSE
PROJECT DELAYS. SINCE WE GET THE
SAME REDUCTION AND SHE EMISSIONS
WHERE THE CONCRETE NEEDS TO
TARGET FOR EVERY BATCH OR ON
AVERAGE, AND SINCE IT AVOIDS ALL
THESE PROBLEMS, WHY NOT ALLOW
THIS FLEXIBILITY AND THAT'S
REALLY FUNDAMENTALLY WHAT WE'RE
ASKING TODAY. UM THE CONTRACTS
SAY THIS BILL IS TOO COMPLEX.
THEY'RE VERY SOPHISTICATED
COMPANIES THAT MANAGE HUGE AND
EXTREMELY COMPLEX PROJECTS. THEY
CAN HANDLE A LITTLE EXTRA
COMPLEXITY, COMPLEXITY. I THINK
AFTER CONCLUSIONS, THEY JUST
RATHER NOT DO IT. SO THAT'S
ISSUE HAVE THIS MORNING. IT'S A
RARE COLLABORATIVE BILL, AND
WITH ME ARE TWO WITNESSES TO
TALK ABOUT THAT COLLABORATION.
GOOD MORNING, MADAM CHAIR
COMMITTEE MEMBERS ALEX JACKSON
WITH THE NATURAL RESOURCES
DEFENSE COUNCIL. I JUST WANT TO
UNDERSCORE THREE POINTS. THROUGH
THIS BILL. IT'S ABSOLUTELY
NECESSARY AS WE HEARD FROM
SENATOR BECKER. CONCRETE IS A
MAJOR SOURCE OF EMISSIONS.
DEMAND IS GROWING AROUND THE
WORLD. AND AS WE EMBARK ON MAJOR
INFRASTRUCTURE INVESTMENTS HERE
IN CALIFORNIA IN THIS COUNTRY WE
NEED TO ENSURE THAT THE
PRODUCTION OF THOSE MATERIALS,
INCLUDING CONCRETE STARTS TO GET
CLEANER OVER TIME, OR WE'RE
GOING TO DIG AN EVEN DEEPER
EMISSIONS HOLE. THE GOOD NEWS IS
WE KNOW HOW TO DO THIS. WE CAN
PRODUCE CONCRETE WITH FEWER
EMISSIONS WITHOUT SACRIFICING
COST OR PERFORMANCE. AND WE KNOW
THE BEST PLACE TO START, WHICH
IS TO LEVERAGE THE REAL
OPPORTUNITY WITH PUBLIC
PROCUREMENT. SECOND THIS BILL IS
ACHIEVABLE. IT BEGINS WITH A
YEAR OF REPORTING BUILDING OFF
WORK ALREADY UNDERWAY AT
CALTRANS AND OTHER AGENCIES TO
MAKE SURE THE STANDARDS ARE
BASED ON REAL WORLD DATA. IT
SETS THOSE STANDARDS ACCORDING
TO LOCAL MARKET CONDITIONS AND
FACES THEM IN FOR SMALL PROJECTS
, AND IT AFFORDS FLEXIBILITY SO
THAT EVERY BATCH OF CONCRETE
DOESN'T HAVE TO MEET A RIGID
STANDARD SO LONG AS THE PROJECT
ON AVERAGE MEETS THE EMISSIONS
REQUIREMENTS. NOW SENATOR RECORD
PREVIEWED. YOU WILL HEAR FROM
THE OPPOSITION THAT THIS
FLEXIBILITY IS A BUG, NOT A
FEATURE. CURIOUSLY WE ALL START
FROM THE SAME PREMISE, THOUGH,
AS THE OPPOSITION ACKNOWLEDGES,
AND I QUOTE THE COMPLEXITY
SPEAKS TO WHY CONCRETE WASN'T
ADDED TO BUY CLEAN IN THE FIRST
PLACE. IT IS A COMPLEX PRODUCT
WHOSE FORMULATIONS CAN CHANGE ON
ANY GIVEN DAY DUE TO SITE
CONDITIONS. YET THEY ARE NOW
INSISTING THAT CONCRETE MUST BE
TREATED EXACTLY LIKE THE OTHER
BY CLEAN PRODUCTS, AND THERE CAN
BE NO FLEXIBILITY TO ADJUST TO
CHANGING SITE CONDITIONS. THAT
SIMPLY DOESN'T ADD UP. IF THE
ONLY COMPLIANCE PATH THE
CONTRACTORS WILL ACCEPT IS TO
TREAT CONCRETE LIKE THE OTHER BY
CLEAN PRODUCTS, BUT THEY AGREE
CONCRETE IS TOO COMPLEX TO BE
TREATED LIKE THE OTHER PRODUCTS
PROJECTS. THEY'RE LEADING US TO
A DEAD END. WHICH FRANKLY, IS
THEIR GOAL, AND THAT BRINGS ME
TO MY LAST POINT. THIS BILL. AT
A HIGH LEVEL SETS ENVIRONMENTAL
PERFORMANCE STANDARDS ON
CONCRETE YOU HAVE AT THE SUPPORT
TABLE, A REPRESENTATIVE OF THE
ENVIRONMENTAL COMMUNITY AND THE
CONCRETE INDUSTRY THAT IS ALL
TOO RARE. IT IS A PRODUCT OF
COLLABORATION AND CONSTRUCTIVE
ENGAGEMENT. WE ARE ALLERGY TO
SUPPORT THAT TYPE OF APPROACH TO
PROBLEM SOLVING, GOING FORWARD
AND ASK FOR MY VOTE TODAY.
RIGHT? THANK YOU, MADAM. CHAIR
MEMBERS, SENATOR. THANK YOU FOR
THE OPPORTUNITY TO BE HERE. I'M
ROBERT DUGAN. I'M THE PRESIDENT
AND CEO OF THE CALIFORNIA
CONSTRUCTION AND INDUSTRIAL
MATERIALS ASSOCIATION. SO WE
REPRESENT THE INDUSTRIES THAT
PRODUCE THE ROCKS, SAND AND
GRAVEL ASPHALT. CONCRETE THAT WE
USE TO BUILD PUBLIC
INFRASTRUCTURE. TODAY WE'RE
PROUD TO BE HERE. WE'RE PROUD
THAT WE HAD AN OPPORTUNITY TO BE
HERE AND I THINK THAT'S AN
IMPORTANT POINT TO MAKE. LAST
YEAR WE PARTNERED WITH SENATE,
BECKER AND OUR COLLEAGUES IN THE
CEMENT INDUSTRY. TO ADDRESS
GREENHOUSE GASSES AND CEMENT
WITH A PHASED APPROACH THAT'S
REASONABLE AND WORKS WITHIN OUR
INDUSTRY. AND WE CERTAINLY WANT
TO BE ONE INDUSTRY THAT ACTIVELY
WORKS WITH THE LEGISLATURE TO
TACKLE CLIMATE CHANGE. THIS
YEAR, SENATOR BECKER ASKED US TO
ENGAGE WITH HIM ON 7 78, WHICH
IS BEFORE YOU TODAY OUR INDUSTRY
UNDERSTANDS EMBODIED CARBON WE
CAN AND WILL ENABLE THE STATE TO
REDUCE CARBON IN CONCRETE, AND
IT'S PUBLIC WORKS AND WE'RE
PREPARED TO DO SO. AND WE'RE
DOING SO TODAY FOR THE PRIVATE
SECTOR. THIS BILL IS A
CALIFORNIA SPECIFIC BY CLEAN
BILL THAT PREPARES CALIFORNIA.
TO COMPLY WITH PENDING FEDERAL
BY CLEAN OBLIGATIONS UNDER THE
CURRENT FEDERAL EXECUTIVE ORDER
, CATALYZING AMERICA'S CLEAN
ENERGY ECONOMY WITH THE
INNOVATIONS THAT ARE GOING ON
ALREADY. SB 778 ENSURES FAIR
COMPETITION AND WE FEEL
CONFIDENTLY. IT HAS APPROPRIATE
ACCOUNTABILITY AND EQUITABLE
DISTRIBUTION OF LIABILITY AMONG
COMPANIES THAT PRODUCE AND
UTILIZE CONSTRUCTION MATERIALS.
WE BELIEVE THAT SENATOR BECKER'S
APPROACH BOTH LAST YEAR, AND
THIS YEAR IS A MODEL FOR
CALIFORNIA'S EFFORTS TO COMBAT
CLIMATE CHANGE, AND IT'S BEEN
RECOGNIZED AS A MODEL BY OUR
FEDERAL PARTNERS. THANK YOU.
THANK YOU GO AHEAD AND OPEN IT
UP FOR ADDITIONAL WITNESSES IN
SUPPORT. ANYONE WISHING TO
TESTIFY AND SUPPORT PLEASE
APPROACH THE MICROPHONE. VERY
GOOD. COMMODITY MADAM CHAIR AND
MEMBERS DOUG HOUSTON WITH PCR
WEST WERE LISTED ON THE ANALYSIS
AS OPPOSED UNLESS AMEND AND
WE'VE BEEN WORKING WITH THE
SENATOR VERY PRODUCTIVELY, AND
WE'RE GOING TO BE ALTERING OUR
POSITION AND GOING TO SUPPORT ON
THE SPELL. THANK YOU. THANK YOU.
GOOD MORNING, MADAM CHAIR AND
MEMBERS. TATUM WAS SAMPSON
ADVISORS ON BEHALF OF US
CONCRETE AND SUPPORT. THANK YOU,
MADAM CHAIR COMMITTEE MEMBERS,
MARC CHRISTIAN WITH THE AMERICAN
INSTITUTE OF ARCHITECTS,
CALIFORNIA AND SUPPORT. MADAM
CHAIR MEMBERS, BRIAN LANGAN OF
PLATINUM ADVISORS ON BEHALF OF
TIGER MATERIALISM, CONSTRUCTION
AND SUPPORT. MORNING MADAM CHAIR
MEMBERS VINCE UART MODULE WITH
THE CLIMATE CENTER AND SUPPORT
CHAIR AND MEMBERS DAN CHILD
CHIPPING IN FOR A COLLEAGUE IN
SUPPORT FOR BLUE PLANET SYSTEMS
AND BRIMSTONE ENERGY. THANK YOU.
ALL RIGHT. WE'LL GO AHEAD AND
MOVE TO WITNESSES IN OPPOSITION.
WE DO HAVE A COUPLE OF WITNESSES
IN OPPOSITION. YOU CAN GO AHEAD
AND TRY TO FIGURE OUT A WAY TO
FIT EVERYONE AROUND THE TABLE.
YOU MAY NEED AN EXTRA CHAIR.
MADAM CHAIR REMEMBERS. MY NAME
IS BRETT BARROW HERE TODAY ON
BEHALF OF THE UNITED CONTRACTORS
IN OPPOSITION TO SB 778 AND A
LOT HAS BEEN SAID TODAY ABOUT
THE FLEXIBILITY AND THE
DIFFERENCES OF THE WAY THAT THIS
BILL TRIES TO PLACE CONCRETE.
AND CEMENT INTO THE BY CLEAN
PROGRAM. UH IN FACT THAT
FLEXIBILITY AND THE DIFFERENCES
OF THE WAY THEY'RE GOING ABOUT
IT IS THE PROBLEM THAT WE SEE
WITH THE BILL FOR MANY REASONS,
AND ONE BEING THAT UNDER THE
CURRENT PROGRAM, THE AWARDING
AGENCY SPECIFIES A PRODUCT THAT
THEY WANT US TO INSTALL ON THEIR
PROJECT. WE GO OUT, WE FIND A
MATERIAL SUPPLIER WHO CAN SUPPLY
THAT PROJECT AND IN THIS CASE,
IT WOULD HAVE AN IRON
ENVIRONMENTAL ATTRIBUTE. WHICH
IS ONLY VERIFIABLE THROUGH AN
EPD OR ENVIRONMENTAL PRODUCT
DECLARATION. SO WE GO FIND THAT
SUPPLIER WHO HAS EPD BEFORE THE
PRODUCT IS INSTALLED ON THE
PROJECT. AND IT SAYS THAT YES,
IN FACT, THEY CAN MEET THAT
STANDARD. AND SO WE SUBMIT THAT
BEFOREHAND TO THE AGENCY TO SHOW
THAT WE ARE IN COMPLIANCE WITH
THE BIKE CLEAN PROGRAM ON ON
THAT PROJECT, AND THAT'S HOW IT
WORKS. BECAUSE THIS HAS A
ENVIRONMENTAL OR EXCUSE ME AN
EMISSIONS BUDGET, A CONTRACTOR
WOULD HAVE TO OVERSEE HIS UH,
FOUNDATIONS, HIGHWAYS,
GUARDRAILS, FOOTINGS, UH OFF
RAMPS, ANYTHING THAT USES
CONCRETE ON THE PROJECT. AND
KEEP TRACK OF THE ENVIRONMENTAL
ATTRIBUTES OF ALL OF THOSE
CONCRETE PRODUCTS ON THAT
PROJECT. AND REALLY, THEY HAVE
NO WAY TO DO THAT, BECAUSE THE E
P D IS THE FUNCTION OF SHOWING
WHAT THE ENVIRONMENTAL
ATTRIBUTES ARE, AND ALL OF THE
EMISSIONS COME FROM THE
MANUFACTURER PROCESSING AND
DELIVERY OF THE CONCRETE NOTHING
THAT THE CONTRACTOR HAS DONE
RESULTS IN THE EMISSIONS. SO
THEY HAVE NO WAY OF CONTROLLING
OR KNOWING THE EMISSIONS UNTIL
THAT FPT SHOWS UP. THIS BILL
REQUIRES THAT AT THE END OF THE
PROJECT, WHICH CAN BE YEARS DOWN
THE ROAD TOWARDS COMPLETION IF
REPORTED FOUNDATION WE GOTTA
BUILDING BUILDING BUILDING ON
TOP OF THAT THE FOUNDATION WAS
POURED YEARS AGO. THAT WE WERE
DOING ANALYSIS OF ALL THE EPDS
AND EMISSIONS AND SUBMIT THAT TO
THE AWARDING AGENCY. THEY
WEREN'T AN AGENCY WITHIN TWO IT
TAKE A REVIEW THAT ANALYSIS AND
DETERMINE WHETHER THE CONTRACTOR
BUZZING COMPLIANCE OR NOT, NOT
THE SUPPLIERS. BECAUSE IF YOU
REMEMBER THE AWARDING AGENCY
ONLY HAS THE POWER TO CONTRACT
WITH THE PRIME CONTRACTOR. THE
AWARDING AGENCY DOESN'T HAVE THE
AUTHORITY TO FIND OR PENALIZE A
SUBCONTRACTOR, A MATERIAL
SUPPLIER. ANYBODY DOWN THE CHAIN
THE RESPONSIBILITY OF THE CUT
THE PRIME CONTRACTOR WHO HAS THE
CONTRACTUAL OBLIGATION. SO WHAT
WE'RE LOOKING AT HERE IS THE
POSITION OF THE PRIME CONTRACTOR
BEING RETROACTIVELY RELIABLE.
UM, UH, LIABLE FOR GOING OVER
THEIR CARBON BUDGET. AND THE
BILL SAYS A LOT HAS A LOT OF
PAGES ON LIABILITY SHARED
LIABILITY MATERIAL SUPPLIERS
LIABILITY THAT DOES NOTHING FOR
THE PRIME CONTRACTOR. THE PRIME
CONTRACTOR IS THE ONE WHO'S
LIABLE TO THE AWARDING AGENCY.
ANYTHING BEYOND THAT IS A
CONTRACTUAL OBLIGATION AND IS
HANDLED IN THE COURTS, SO THE
CONTRACTOR HAS TO GO TO THE
COURTS TO NEGOTIATE OVER WHAT
PORTION OF THIS ENVIRONMENTAL
ATTRIBUTE THAT IS ACCOUNTABLE TO
WHICH SUPPLIER UNDER THAT WHOLE
PROCESS THAT COULD HAVE BEEN
MANY SUPPLIERS OVER MANY YEARS.
ON TOP OF THAT WE HAVE CONCRETE
BLENDS ARE IN THE THOUSANDS AND
THEY CHANGE CAN CHANGE ON THE
DAY. WE HAVE THAT DELIVERED.
BECAUSE OF THE TEMPERATURES
DISTANCES TO DELIVERY OR
STRUCTURAL STRENGTH THAT WE NEED
TO HAVE ON THAT PARTICULAR DAY
FOR THAT PROJECT, SO IN FACT, WE
HAVE CONCRETE THAT'S ALREADY IN
THE GROUND. AND HAS BEEN THERE
BEFORE. WE MAY EVEN REALIZED
THAT ANYBODY HAS HAD AN
OVERREACH IN THEIR ENVIRONMENTAL
ATTRIBUTES, AND SO THERE'S NO
WAY TO GO BACK AND TAKE THAT OUT
OR FIX THAT PROBLEM, BUT WE NEED
TO HANDLE THAT ON THE BACK END
NOW. SO WE HAVE GONE TO GREAT
LENGTHS. WE'VE WORKED WITH THE
AUTHOR FOR TWO YEARS. PROVIDED
MANY, MANY VERSIONS OF LANGUAGE
TO GET THESE ISSUES. ALL OF
THESE ISSUES AND THOSE HAVE BEEN
REJECTED, AND WE'D REALLY FIND
OURSELVES WITH NOWHERE ELSE TO
GO IN THIS BILL. SO WE'RE HERE
TODAY IN OPPOSITION AND WOULD
ASK FOR YOUR NO VOTE. MADAM
CHAIR MEMBERS OF THE COMMITTEE.
SCOTT GOVERNOR BEHALF OF THE
CONSTRUCTION EMPLOYERS
ASSOCIATION. WE ARE THE LARGEST
UNIONIZED BUILDING CONTRACTORS
IN THE STATE. IN TERMS OF THE
PROCESS. THIS HAS GONE THROUGH
MANY ITERATIONS. WE PROVIDED A
LETTER TO THE AUTHOR AND ALL
YOUR STAFF ON MAY 31ST OUTLINING
CONCERNS WITH THE BILL. NICE
SINGLE ITEM WAS ADDRESSED IN THE
MOST RECENT SET OF AMENDMENTS
ZERO AND I'M TALKING ABOUT LOW
HANGING FRUIT STUFF. THIS BUILDS
RETROACTIVE PURSUANT TO THIS
BILL IN MAY OR JULY OF NEXT
YEAR. A CONTRACTOR IS GOING TO
HAVE TO PROVIDE E P. D S AND
REPORT ON, SAY, THE DGS BUILDING
THAT WAS POURED TWO YEARS AGO.
THAT'S IMPOSSIBLE. LOW HANGING
FRUIT THEY WOULDN'T FIX FOR A
SEVEN MEMBER STONES BENEFIT.
THERE'S INDEMNIFICATION LANGUAGE
IN THE BILL. WHICH SAYS THAT THE
SUPPLIER HAS TO INDEMNIFY THE
CONTRACTOR. IF THE SUPPLIER'S
PRODUCT DOESN'T MEET THE G W P
FOR ANY PENALTIES. THAT'S GREAT
. THERE ARE NO PENALTIES IN THE
BILL FOR EXCEEDING THE GDP. ONLY
PENALTIES IN THE BILL APPLIED TO
THE TOTAL PROJECT C 02 SO THAT
INDEMNIFICATION LANGUAGE ISN'T
WORTH THE PAPER IT'S WRITTEN ON.
WE TOLD THEM THAT IT'S IN THE
LETTER AGAIN. NONE OF THESE
ITEMS HAVE BEEN ADDRESSED. SO
THIS NOTION THAT THIS IS GOING
TO BE A WORK IN PROGRESS WHEN
NONE OF THEM HAVE BEEN
ADDRESSED. IS SIMPLY A FALLACY.
I MEAN, WE HAVE LEGITIMATE
CONCERNS WE OFFERED AT THE
CHAIRS, SUGGESTION FRAMEWORK,
WHICH WE BELIEVE WORKS QUITE
SIMPLY. THAT WAS REJECTED. SO WE
WANT TO WORKABLE MODEL. BUT AT
THE END OF THE DAY, THE ENTITY
WHO POURS THE PRODUCT HAS TO
HAVE SOME LIABILITY FOR WHAT
THEY POUR AND THE WAY THIS BILL
IS STRUCTURED. THERE IS NONE.
THE INDEMNIFICATION LANGUAGE YOU
MIGHT AS WELL REMOVE IT AND SAVE
A TREE. IT DOESN'T WORK. SO FOR
THESE REASONS WE ASK YOU TO
PLEASE CONSIDER HOLDING THIS
BILL. WE HAVE WORKED DILIGENTLY,
I THINK FRANKLY, WE'VE DONE MORE
THAN THE PROPONENTS HAVE OF
LIGHT AND WE'RE HAPPY TO
CONTINUE THIS DISCUSSION. BUT
YOU CAN'T PUT EVERYTHING ON THE
ON THE PRIME CONTRACTOR AND YOU
CAN'T MAKE THEM LIABLE FOR
SOMETHING THEY DID TWO YEARS
AGO. BUT YOU HAVE NO WAY TO
COMPLY WITH. SO FOR THESE
REASONS, WE ASK FOR YOUR NO
VOTE, PLEASE. THANK YOU. GO
AHEAD AND OPEN IT UP FOR, UH
WITNESSES, ADDITIONAL WITNESSES
AND OPPOSITION AND ACTUALLY,
GENTLEMEN, YOU SHOULD PROBABLY
STAY BECAUSE I KNOW I'VE GOT A
NUMBER OF QUESTIONS. I'M
GUESSING OTHERS DO AS WELL. UM,
PERHAPS THE SERGEANT'S CAN GET
AN ADDITIONAL CHAIR FOR MR
JACKSON. AS WELL. SORRY. GO
AHEAD. THANK YOU, MADAM CHAIR
MEMBERS, TODD BLUMSTEIN FOR THE
SOUTHERN CALIFORNIA CONTRACTORS
ASSOCIATION. TO BE CLEAR BOTH
PRIME CONTRACTORS AS WELL AS
SUBCONTRACTORS PURCHASE CONCRETE
ON PUBLIC WORKS JOBS. THOSE
SUBCONTRACTORS WOULD INCLUDE DBS
AS WELL AND THEY WOULD BE
SUBJECT TO THIS. THANK YOU.
MORNING, MADAM CHAIR MEMBERS OF
THE COMMITTEE EDDIE BERNACCHI ON
BEHALF OF THE NATIONAL
ELECTRICAL CONTRACTORS
ASSOCIATION IN THE CALIFORNIA
LEGISLATIVE CONFERENCE OF THE
PLUMBING, HEATING AND PIPING
INDUSTRY, REPRESENTING OVER 3000
MECHANICAL, ELECTRICAL AND
PLUMBING CONTRACTORS. IN THE
UNION SECTOR OF THE CONSTRUCTION
INDUSTRY THAT USED CONCRETE
MATERIALS ONLINE OF THEIR PUMP
HOUSES AND TRANSFORMER
FOUNDATIONS. THEY HAVE SERIOUS
CONCERNS WITH THIS BILL AND
BEING ABLE TO COMPLY AND PROVIDE
THE PARTICIPATE IN THE BUDGET
PROCESS FOR THE CARBON OUTPUT
WITH THE PRIME CONTRACTOR. WHEN
THEY'RE ACTUALLY DIRECTLY
CONTRACTING FOR THEM AND
POSITION POSITION AS WELL. THANK
YOU. GOOD MORNING, MADAM CHAIR.
MEMBERS OF THE COMMITTEE FELIPE
FUENTES HERE ON BEHALF OF THE
ASSOCIATED GENERAL CONTRACTORS
OF CALIFORNIA URGING YOU TO HOLD
THE BILL OR VOTE NO FOR IT.
THANK YOU. THANK YOU ALL RIGHT,
WE'LL GO AHEAD AND OPEN IT UP
FOR QUESTIONS OR COMMENTS FROM
COMMITTEE MEMBERS. MR LOCKIE.
YEAH. THANK YOU, SENATOR BECKER.
I'M I'M CONFIDENT THAT YOU KNOW
THAT THE BIKE LANE, CALIFORNIA
IT CONTAINS A LIST OF MATERIALS
THAT ALREADY REQUIRING APWU USED
IN CALIFORNIA. ONE OF THOSE
MATERIALS IS REINFORCED STEEL.
AND IT'S COMMONLY KNOWN AS REBAR
USED MANY CONSTRUCTION PROJECTS
FOR STRUCTURAL CONCRETE. YOU
KNOW, WE'RE CONSTRUCTION WHERE
THE CONSTRUCTION INDUSTRY CAN
OBTAIN AN EPI T E P D COMPLIANT
REBAR. THE MOMENT NOW. IT'S ONLY
OUT OF STATE. AND THE IRONY HERE
IS THE MULTI LEVELED AH, THIS
STATE HAS A BIKE LANE CALIFORNIA
ACT. BUT INDUSTRY NEEDS TO GO TO
ANOTHER STATE TO BUY THE PRODUCT
. THAT'S VERY PROBLEMATIC. I'M
OPPOSED TO THIS BILL. OUR STATE
AND OUR COUNTRY IS FACING
SERIOUS AND SIGNIFICANT SUPPLY
CHAIN ISSUES RIGHT NOW. AND SB
778 WILL UNDOUBTEDLY INCREASE
THE CONSTRUCTION COSTS AND
CREATE DELAYS AND WHY LOCAL AIR
QUALITY MANAGEMENT DISTRICT IN
THE STATES CAP AND TRADE PROGRAM
ALREADY REGULATES THE EMISSIONS
OF CEMENT KILNS. IF THE REBAR
SITUATION IS ANY INDICATION,
THIS BILL WILL INCREASE COSTS
AND SLOW CONSTRUCTION. AND FOR
THIS REASON I CAN'T SUPPORT YOUR
BILL AT THIS MOMENT. APPRECIATE
THE COMMENTS. I DON'T THINK IT'S
ANALOGOUS TO STEAL, BUT I
APPRECIATE YOUR COMMENTS.
THANK YOU, SENATOR. BETTER SO MY
SO I DO HAVE A COUPLE CONCERNS
AND WE GOT A CHANCE TO TALK
BRIEFLY ON THE PHONE YESTERDAY.
AND SO I WANT TO FOLLOW UP
BECAUSE WE DIDN'T GET TO FINISH
AND USING THE BAKER ANALOGY
RECOGNIZING THAT CONCRETE IS
VERY COMPLEX AND SCIENTIFIC, AND
IT'S VERY SPECIFIC TO THE DAY.
THE TIME THE PROJECT YOU KNOW
WHAT'S HAPPENING? UM, I'M
CONCERNED ABOUT THAT. THE FOCUS
IS SHIFTING, YOU KNOW, FROM THE
SUPPLIER. TO THE CONTRACTOR IN
THAT REGARD, BECAUSE IF WE HAVE,
IF WE JUST KEEP CONTINUING THE
BAKING ANALOGY AND WE SAY WE
HAVE BANANA BREAD, WE GENERALLY
FIGURE OUT WHAT'S MADE UP OF
BANANA BREAD, RIGHT? WE
GENERALLY KNOW LIKE THAT'S
BANANA BREAD BECAUSE IT INCLUDES
BANANA. SOMETIMES IT HAS NUTS IN
IT SOMETIMES CHOCOLATE, WHATEVER
, BUT WE GENUINELY KNOW WHAT
THAT IS, AND I DON'T KNOW IF WE
HAVE THAT PRESCRIPTIVE YET AND
IN THE BILL IT TALKS ABOUT
FINDING THE PRESCRIPTIVE FORMULA
THAT WOULD BRING LOW EMISSIONS.
UM YOU ALSO HAVE A BILL THAT YOU
LIKE. YOU NOTED THAT YOU WORKED
ON A YEAR AGO. THAT SAID, UM,
YOU KNOW, BY 2020 2045. I
BELIEVE IT IS THAT UM, WE HAVE
TO HAVE NET ZERO AND SO THAT
FOCUSES ON THE SUPPLIER SIDE.
BUT THIS THIS DOESN'T THIS
DOESN'T AND IN SOME WAYS IT SAYS
THAT, UM LET ME CLARIFY IT
DOESN'T AND WHEN I LOOK AT THIS
, IT'S NOT THE COMPLIANCE SIDE.
IT'S REALLY THE CONTRACTOR SIDE
AND I CAN SEE WHY THEY COULD BE
FRUSTRATED IN THE BILL. IT
DOESN'T FOCUS ON THE SUPPLY SIDE
AND TO EXPLAIN TO ME HOW THIS
IS. PUTTING THE ONUS MORE ON THE
SUPPLY SIDE TO DO THINGS QUICKER
. BECAUSE I THINK YOU RE
REFERENCE. IT HELPS US ACHIEVE
THOSE GOALS QUICKER. SO I'M
STILL TRYING TO UNDERSTAND HOW
THIS HELPS ACHIEVE THE GOALS
QUICKER WHEN IT'S FOCUSED ON THE
CONTRACTOR. NOT THE SUPPLIER.
YEAH A COUPLE OF THINGS. UM
TURNOVER TO MY EXPERT HERE. UM
JUST, YOU KNOW, A COUPLE OF
THINGS, OPPOSITION SAID, UM,
WHICH IS BLATANTLY UNTRUE. THE
RETROACTIVE PART NOT TRUE. LACK
ABILITY TO QUANTIFY
RESPONSIBILITY. NOT TRUE. AND
AGAIN. THE BILL JUST
SPECIFICALLY REQUIRES THAT THE
CONCRETE SUPPLIERS IDENTIFY THE
CONTRACTORS FOR ANY UM, FINES IF
THE CONCRETE SUPPLIER CAUSED THE
PROBLEM BY EXCEEDING SO TWO
TARGETS, SO THAT'S VERY EXPLICIT
IN THE BILL, BUT WE'LL HAVE A
CHANCE TO TALK MORE ABOUT THAT,
UM E P D IS WELL ESTABLISHED.
I'LL TURN THIS OVER TO MY EXPERT
IN A MOMENT, BUT THE QUESTION IS
I THINK YOUR QUESTION IS. HOW
ARE WE ADDRESSING THIS BY CLEAN
PRODUCT, RIGHT? YOU WANT THE
STATE TO BUY CLEAN? THAT'S THE
WHOLE FRAMEWORK HERE. SO IT'S
THE CONTRACTORS WHO GET THAT,
BUT I DON'T KNOW. AND I CAN BE
VERY I COULD'VE DID A WHOLE WORD
SALAD WITH MY QUESTION THAT MADE
IT SO YOU DIDN'T UNDERSTAND IT.
I GUESS WHAT I'M SAYING IS THAT
ON THIS ON IF YOU'RE LOOKING AT
THIS FROM THE SUPPLIER, SO WE'RE
HOLDING THE SUPPLIER ACCOUNTABLE
TO BRING TO GIVE US A PRODUCT.
THAT UM, ALLOWS A CALIFORNIA TO
BUY CLEAN RIGHT AND WHICH
THERE'S EXAMPLES THAT ARE
ALREADY INCLUDED IN THE BILL
THAT WERE VERY SPECIFIC RIGHT
BECAUSE THEIR PRODUCT THEIR
PRODUCTS THAT YOU CAN, UM BY
EXACTLY LIKE THAT. WHERE WHEN
YOU HAVE, UH, THE CONCRETE IT IS
, UM IT VARIES RIGHT? I MEAN, IS
THAT TRUE? LIKE WHAT WAS STATED
IT VARIES. SO HOW ARE YOU?
HOLDING THE SUPPLIER RESPONSIBLE
, AND THAT'S WHAT I REALLY WANT
TO, I GUESS UNDERSTAND IS HOW
ARE WE HOLDING THE SUPPLIER
RESPONSIBLE FOR PROVIDING A
PRODUCT THAT IS, UM THAT IS
CLEAN AND THAT I HAVE LOW
EMISSIONS AND THAT'S REALLY WHAT
I WANT TO KNOW, THE SUPPLIER SAY
JUST BECAUSE THERE IS AN EMPTY
IN ADVANCE. WE KNOW WHAT'S IN
EACH BATCH OF CONCRETE, SO THIS
EMPTY THERE WILL BE IDENTIFIED
FOR EACH BATCH. BUT LET ME TURN
IT OVER TO THE SUPPLIER. SURE
THANK YOU. ASSEMBLYMEMBER'S FOR
YOUR QUESTION. I IF I CAN GO TO
YOUR BAKER'S ANALOGY, AND I, AND
I APPRECIATE THAT MY COLLEAGUES
MAKE THIS EXTREMELY COMPLEX, BUT
I'M GOING TO TRY AND MAKE IT
EXTREMELY SIMPLE. SO WE'RE
CONSIDERED A SUBCONTRACTOR WHEN
A WHEN A LARGE PROJECT IS A
PROJECT REACH OUT FOR BIDS FROM
CONCRETE SUPPLIERS, OF WHICH
THERE ARE MANY IN THE STATE OF
CALIFORNIA. WE'VE GOT SOME 500
PLANTS REPRESENTED, AND I HAVE A
LIST HERE. BY MARKET ABOUT HOW
MANY COMPETITORS THERE ARE IN
THE MARKET, SO THERE WILL BE AS
I UNDERSTAND IT IN THE BILL,
THERE WILL BE A BENCHMARK SET
RIGHT NOW. CEMENT IS MADE OUT OF
THREE CONCRETE. EXCUSE ME IS
MADE OUT OF GOING TO GET SHOT
FOR SAYING CEMENT AND CONCRETE
COLLEAGUES. UM THERE'S CONCRETE
IS MADE OUT OF THREE PRODUCTS
BASICALLY CEMENT, ROCKS AND
WATER. AH THE CONTROLS THAT WE
HAVE IN THE CONCRETE INDUSTRY IS
TO MIX THOSE THREE. IN A
SPECIFICATION THAT A CONTRACTOR
NEEDS PART OF THE REASON FOR THE
NEED FOR THE FLEXIBILITY AND THE
BILL IS THAT A CONTRACTOR WILL
DURING A THE NATURE OF A PROJECT
CHANGE WHAT THEY NEED ON A GIVEN
DAY BASED ON CIRCUMSTANCES ON
THE GROUND. THAT'S WHY WE HAVE
GOOD BUILDINGS. THAT'S WHY WE
HAVE GOOD ROADS IS THOSE THINGS
CHANGE AND THEY HAPPEN ON THE
FLY. NOT ALL REQUIRE CHANGE
ORDERS. I KNOW OUR MEMBERS THAT
CAME TOGETHER TO GO THROUGH AND
HELP THE SENATOR WITH THIS BILL.
WE'RE SPEAKING WITH THEIR
CUSTOMERS. ALL ALONG THE WAY ON
THIS BILL, SO WE HAVE A FINITE
NUMBER OF SUPPLIERS FOR CEMENT.
WHICH IS THE ONE THING THAT THAT
FOLKS LIKE THE KIND OF
MISREPRESENT THAT'S THE ONLY
THING THAT IS NOT MANUFACTURED
HERE IN CALIFORNIA. WE DO HAVE
SIX I BELIEVE SIX CEMENT
MANUFACTURERS IN CALIFORNIA, BUT
THEN WE DO IMPORT A LOT OF
CEMENT FROM OUT OF STATE BACK TO
YOUR QUESTION. ASSEMBLYMEMBER'S
LACKEY BUT ALL OF THE CONCRETE
THAT IS USED IN CALIFORNIA, IS
PRODUCED IN CALIFORNIA WITH
CALIFORNIA EMPLOYEES CALIFORNIA
JOBS AND COMPANIES THAT HAVE
OPERATIONS HERE IN THE STATE.
YOUR CONCRETE IS MADE IN YOUR
LOCAL MARKET. AND SO WE HAVE
THIS VARIABILITY WITH CEMENT AND
WHEN YOU BID A THREE OR FOUR
YEAR JOB ON, GO TO YOUR STEEL
ANALOGY. WE DON'T MANUFACTURE
STEEL IN CALIFORNIA ANYMORE. WE
PUT THEM OUT OF BUSINESS, SO WE
NOW HAVE TO GET IT FROM
SOMEWHERE ELSE. THAT'S WHY IT'S
FROM OUT OF STATE. BECAUSE
THAT'S WHERE WE HAVE TO GET THAT
PRODUCT. CONCRETE, ON THE OTHER
HAND, ARE CONCRETE PRODUCERS.
ARE PREPARED TO OWN THEIR E P. D
S. WE ALREADY HAVE. A NATIONALLY
RECOGNIZED SYSTEM. OUR FEDERAL
PARTNERS ARE HELPING US WITH
THAT ALONG WITH OTHER PRODUCTS,
AND WE'RE ALREADY DOING THIS
TODAY. SO VARIABILITY IN THE
PROJECT. EXCUSE ME FOR
INTERRUPTING IT. THERE'S VERY
BILL ANY IN THE IN THE PROJECT.
THEN WHAT IS THE I THINK IT'S
TWO OR THREE YEARS REVIEW OF
FIGURING OUT WHAT THE STANDARDS
SHOULD BE. SO THAT YOU CAN
ACTUALLY FULFILL THE BUYBACK.
UM, A BIKE CLEAN. UM PRODUCT
HAPPY TO ADDRESS THAT DIRECT,
AND THAT'S EXACTLY WHERE I WAS
GOING TO JUST KIND OF WANTED TO
SHARE SOME CLARITY ON WHAT
HAPPENED. SO, UM, WHEN YOU LOOK
AT THE NEED FOR A PHASED IN
APPROACH THE STATEHAS NOT
CURRENTLY BEEN COLLECTING THESE
EPDS UNDER BY CLEAN CONTRACTORS
HAVE NOT BURNT CURRENTLY BEEN
COLLECTING THESE MUCH LIKE PRIOR
TO SAY, A COMMUNITY WORKFORCE.
EXPECTATION ON A PROJECT THEY
HAVE BEEN COLLECTING THAT DATA
PRIOR TO. SO THIS IS A PHASED IN
APPROACH THAT ALLOWS US TO
COLLECT SO OUR PROVIDERS WILL
KNOW THE PER BATCH. THEY KNOW
WHAT E P D S THEY CAN REACH AND
THEY KNOW WHERE THEY CAN GET THE
SUPPLIES NECESSARY. TO INCREASE
THE PDS, BUT BY HAVING
FLEXIBILITY WE CAN BE RESPONSIVE
TO THE PROJECT AND YOU END UP
WITH MORE COMPETITORS BECAUSE
YOU CAN HAVE SMALLER PROVIDERS
PROVIDING CONCRETE WHERE IT'S
NEEDED IN AN URGENT MATTER ON A
SPECIFIC MOMENT, BECAUSE THAT'S
WHAT THE CONTRACTOR NEEDS, AND
THEN MAYBE A LARGER PROVIDER
THAT'S GOT ACCESS TO OTHER
MATERIALS AS WE EVOLVE INTO FLY
ASH AND OTHER THINGS, ALL OF
WHICH ARE DECREASING THE CARBON
FOOTPRINT OF CONCRETE. UM WELL
WILL BE ABLE TO MEET THAT NEED
AND THAT'S THAT PARTNERSHIP THAT
GOES ON EVERY DAY WITH
EVERYTHING ON A ON A
CONSTRUCTION PROJECT. MHM AND SO
, UM, I JUST WANT TO MAKE SURE I
UNDERSTAND TWO PARTS. THE FIRST
ONE. THIS MIGHT BE FOR YOU.
SENATOR BECKER VERSUS UM WAS ONE
OF THE SPONSORS IS THE. THE
PENALTY FOR GOING OVER. UM BE
WHATEVER THE AMOUNT BECAUSE
KRYPTON AMOUNT. UM FOR THAT
PARTICULAR PROJECT IS WHAT AND
THEN ALSO, IF WE'RE LOOKING AT A
PHASE AND APPROACH WHY NOT DO
THE STUDY OF SEEING WHAT THAT
LOOKS LIKE AND THEN AT THAT TIME
AFTER A TWO OR THREE YEAR STUDY
DETERMINED, OKAY, NOW, THIS IS
WHAT IT'S GOING TO BE BECAUSE
YOU HAVE A GOAL THAT'S LIKE 20,
YOU KNOW, OVER 25 YEARS OUT FROM
NOW. UM FIRST OF ALL, GREAT
QUESTION. THANK YOU. UM THE, UH
ON THE COMPLIANCE PIECE. YOUR
QUESTION IS ACTUALLY GOOD ONE.
WE REALLY LIMIT THE CONSEQUENCE
OF NONCOMPLIANCE IN THE BILL, SO
UNLIKE USING A TYPE OF CONCRETE
THAT WOULDN'T BE STRONG ENOUGH,
YOU KNOW, BRIDGE WOULD FOLLOW OR
SOMETHING THAT EXCEEDING THE
CARBON TARGET IN OUR BILL IS NOT
A SEVERE PENALTY. THE BILL
LIMITS ANY PENALTIES OR DAMAGES
TO SIMPLY A FINANCIAL PENALTY.
UM THAT IS EFFECTIVELY PUTTING A
PRICE ON THE EXCESS CARBON
EMISSIONS. SO THAT'S WHAT THE
BILL DOES, SO THERE WILL
PROBABLY BE A FINE TO ENCOURAGE
COMPLIANCE, BUT NOT SERIOUS
CONSEQUENCES OF THE CONTRACTORS
NEED TO AVOID AT ALL COSTS, SO
TO YOUR QUESTION ABOUT PENALTY.
IT'S A FINANCIAL PENALTY, AND
IT'S REALLY ABOUT JUST TRYING TO
MEASURE THE WHAT WAS WHAT WAS
ACTUALLY THE EXCESS CARBON. UM
YOU KNOW, SO THAT IN ADDITION TO
THE FACT THAT SUPPLIERS AS WE
MENTIONED HAVE AGREED. AND IF
YOU WANT TO TALK ABOUT THAT HAVE
AGREED TO INDEMNIFY THE CONTRACT
CAN SPEAK TO THAT. SPECIFICALLY
WE SPECIFICALLY TOOK THE, UH THE
CONCERN OVER LIABILITY VERY
SERIOUSLY. IT WASN'T BIG
DISCUSSION AMONGST ALL OUR
OPERATORS IN CALIFORNIA. AND
WE'VE AGREED WILLINGLY TO TAKE
ALL FINANCIAL RESPONSIBILITY FOR
OUR ABILITY TO DELIVER ON THE
PROJECT AND DELIVER THE GROSS
GOAL AND WE'VE AGREED ON AN
INTERNAL MECHANISM THAT
DISTRIBUTES THAT LIABILITY
EQUITABLY. SO IF THERE ARE
CONSEQUENCES ARE INDUSTRY OWNS
THE CONSEQUENCES OF OUR PRODUCT
. THAT'S HOW CONFIDENT WE ARE
BECAUSE WE'RE ALREADY IN MOTION
ON THIS STUFF THAT WE CAN DO IT.
IT JUST MAKES SENSE THAT IT
BENEFITS. PUBLIC PROJECTS RIGHT
WITH PUBLIC MONEY WHEN YOU'RE
HELD ACCOUNTABLE TO, YOU KNOW,
PUBLIC OFFICIALS ARE HELD
ACCOUNTABLE TO THEIR
CONSTITUENTS MAKING SURE RIGHT
THAT THEY'RE GETTING THE BEST. I
THINK I GET YOUR SECOND
QUESTION. WHY NOT? THEY'RE
ALREADY DOING IT. THEY'RE READY
TO DO IT NOW. WELL, I THINK YOUR
QUESTION WAS WHAT IS IT READY TO
DO IT NOW? YEAH I'M TALKING
ABOUT THE PHASE IN APPROACH OF
FIGURING OUT WHAT THE CARBON
WHAT? WHAT THEY MAXIMUM ALLOWED
BEFORE. MAYBE I'M
MISUNDERSTANDING. SENATOR IF I
MAY REMEMBER, SO YEAH, THE BILL
INITIALLY. DOES A YEAR OF
REPORTING E P. D S FOR CONCRETE
PRODUCTS. THEN SET THE PROCESS
OF DETERMINING THE AVERAGE BY
PERFORMANCE CLASS TO YOUR POINT,
BECAUSE CONCRETE IS A LITTLE BIT
MORE COMPLEX. IT'S NOT JUST, YOU
KNOW, ONE TYPE OF BANANA BREAD
OUT THERE. UM AND IT DIRECTS
DEPARTMENT GENERAL SERVICES TO
LOOK AT THE AVERAGE OF THE
EMISSIONS THAT COME FROM THOSE E
P. D S. OKAY AND THEN EVERY
THREE YEARS THAT AVERAGES
REEVALUATED TO SEE THAT IF YOU
CAN GET MORE STRINGENT OVER
TIME, BUT THERE'S NOT GOING TO
BE ACTUALLY REQUIREMENT FOR
SPECIFIC BATCH OF CONCRETE TO
MEET THAT STANDARD. UNTIL 2025.
SO THERE IS THIS RAMP THAT'S
MOVING FORWARD, AND I THINK IT'S
IMPORTANT TO UNDERSTAND. WE HAVE
A PRESCRIPTIVE PATH IN THE BILL
AND A FLEXIBLE PATH, OKAY? THE
WAY WE HAVE SET UP THE BILL IN
RESPONSE TO FEEDBACK FROM THE
INDUSTRY ABOUT WHAT NEEDS TO
HAPPEN TO DELIVER ON A JOB SITE.
IS THAT IF THE CONTRACTORS WANT
TO TREAT THE BENCHMARKS ARE
GOING TO BE ESTABLISHED AS
MAXIMUMS, THEY CAN'T IN THEIR
CONTRACTS. OKAY, THAT IS HOW THE
CARBON BUDGET FOR THE PROJECT
WOULD BE CALCULATED. BUT WE
THINK THE MARKET WILL DETERMINE
TO MAKE THIS ACTUALLY WORKED FOR
CONCRETE. A LITTLE FLEXIBILITY
IS IMPORTANT. AND THAT'S WHY WE
HAVE THE FLEXIBLE PATH. NOW THE
FLEXIBLE PATH STILL CLEARLY
ALLOWS A CONTRACTOR TO KNOW IF
THEIR SUPPLIER GAVE THEM
PRODUCTS THAT EXCEEDED THE
BENCHMARKS. IF THAT HAPPENS
CONCRETE INDUSTRY HAS AGREED TO
FULLY IDENTIFY THE CONTRACTORS
AND OWN RESPONSIBILITY FOR THAT.
OKAY, SO WE JUST DISPUTE HOW THE
CONTRACTORS ARE PORTRAYING THIS
BILL, OKAY? THE FLEXIBILITY IS A
PRODUCT OF OUR SITTING DOWN AND
ACTUALLY HEARING FROM THE
INDUSTRY ABOUT HOW THIS NEEDS TO
WORK. I WISH WE COULD SAY THE
SAME FOR THE OUR ENGAGEMENT WITH
THE CONTRACTORS, BUT IT JUST
HASN'T BEEN THAT SAME SPIRIT OF
COLLABORATION UNFORTUNATE.
SORRY, MR PATTERSON. AND THEN MR
MEDINA. I WANT TO GIVE THE
CONTRACTORS AN OPPORTUNITY TO
REBUT. THIS IS A COMPLICATED AND
HARDENED SIDE. UH HERE AND SO.
YOU'VE BEEN ASKED ABOUT
PENALTIES YOU'VE ANNOUNCED. ASK
ABOUT THE INDEMNIFICATION ALL OF
THAT. I WANT TO GIVE YOU AN
OPPORTUNITY. TO STATE YOUR
RESPONSE TO WHAT YOU'VE JUST
HEARD. THANK YOU, MR VICE CHAIR.
YES IF I COULD JUST GETTING IT
FIRST RED TRACTOR RETROACTIVITY.
THE. IT SAYS THE AWARDING
AUTHORITY SHOULD REQUIRE
SUCCESSFUL BIDDER TO SUBMIT AS A
REPORT AS PART OF THE AN
ANALYSIS OF TOTAL CONCRETE
DEMONSTRATING TALL PROJECT
CONCRETE DID NOT EXCEED PRODUCT
THAT'S A SPECIFICATION. THAT IS
DUE AFTER THE PROJECT IS
COMPLETE. SPECIMEN NOT MEETING
AWARDING AGENCY SPECIFICATION
HAS OTHER PENALTIES AS WELL.
THEY HAVE RECOURSE AGAINST THE
CONTRACTOR WHO DOESN'T MEET
THEIR SPECIFICATIONS THAT
THEY'VE ASKED FOR ON A PRODUCT,
INCLUDING PENALTIES HERE. THEY
DO USE PENALTIES, PENALTIES
OPPOSED BY AWARDING AUTHORITIES
ON THE SUCCESSFUL BIDDER. AND
SHALL BE LIMITED TO FINANCIAL
PENALTIES IN AMOUNT PROPORTIONAL
TO EXCESS PROJECT CONCRETE CEO
TOO WELL SO IF WE. ARE FOUND TO
BE OUT OF COMPLIANCE OUT OF
SPEC. AND THEY SAY YOU ARE OVER
BY SO MANY TONS OF CO TWO. WE
HAVE TO GO BACK TO THE SUPPLIERS
AND FIND OUT WHERE THAT
HAPPENED. AND FOR AVERAGING, IF
ONE IS LOW, TWO OR HIGH, WHO ARE
THE TWO WAS THE ONE THAT PUT US
OVER THE TOP? OF THAT. THAT
LAST, UH LIMIT. AND WE DON'T
HAVE THE ABILITY. THE MORNING
AUTHORITY DOESN'T HAVE THE
ABILITY TO FIND THE SUPPLIER
THEY FIND THE PRIME CONTRACTOR
PRIME CONTRACT HAS TAKE RECOURSE
AGAINST THE SUPPLIER. SO ONE WAY
IS A CONTRACT PROVISIONS. BUT IN
BIG PUBLIC WORKS PROJECTS LIKE
HIGHWAY AND LOW HIGH RISE
BUILDING, THERE ARE A LIMITED
NUMBER OF SUPPLIERS, AND THEY DO
CONTROL A BIT OF MARKET POWER IN
THAT, AND THEY CAN REFUSE TO
SIGN THOSE TYPES OF PROVISIONS
AND BECAUSE WE ONLY HAVE A
SUPPLIER TO WITHIN 100 MILE
RADIUS, WE'RE PRETTY MUCH STUCK
GOING WITH WHAT WE GOT. AND
BEYOND THAT, WHEN WE DO FIND
MAYBE A SUPPLIER WHO IS
RESPONSIBLE FOR THAT WE THEN
HAVE TO GO TO THE COURTS, WHICH
THERE IS NO DEFEND OR HOLD
HARMLESS CLAUSE IN THIS, SO
WE'RE PAYING FOR THAT COURT
FIGHT. WHICH IS GOING TO BE VERY
EXPENSIVE AND POSSIBLY COULD
EXCEED THE DOLLARS INVOLVED IN
ANY KIND OF PENALTIES ASSOCIATED
WITH THE EMISSIONS. BUT THEN WE
FIND OUT THE LIABILITY THERE,
AND THE COURTS WILL DECIDE WHO'S
WHO'S ACCOUNT. BUT AGAIN, WE
CAN'T CONTRACT FOR THAT. AND
AGAIN AND ALSO THIS IS THIS IS
RETROACTIVE BECAUSE WE'RE
LOOKING AT. WE'VE BEEN FOUND OUT
OF COMPLIANCE LONG AFTER ALL
THESE STEPS HAVE TAKEN PLACE,
AND IT'S IMPORTANT TO NOTE THAT
THAT WE AGREE THAT THE E P D IS
A VIABLE VERIFICATION OF
EMISSIONS. ITS INTERNATIONALLY
RECOGNIZED AND LARGELY
RECOGNIZED IN CALIFORNIA. THE
PROBLEM WE STAYED HERE IS
BECAUSE OF THE MULTIPLE
FORMULATIONS AND VARIABLES
THERE, IT WOULD BE NEAR
IMPOSSIBLE TO GET A
REPRESENTATIVE EMPTY. PRIOR TO
THE PRODUCT BEING PUT IN THE
GROUND, AND AT THAT POINT, IT'S
DONE. IT'S DONE AND WE ARE THEN
HAVE AN E P D. THAT IS EITHER
ABOVE OR BELOW AND WE HAVE TO
SUBMIT THAT AS PART OF OUR
REPORT AND FIGHT IT OUT ON THE
BACK SIDE, SO THAT'S THAT'S HOW
THOSE THINGS COME INTO PLAY IF I
MIGHT ADD SER PAGE 14 LINE SIX
AND 16 AND 17. BEGINNING JULY 1
2023 AWARDING AUTHORITY SHALL
REQUIRE A SUCCESSFUL BIDDER FOR
A CONTRACT. CLARK IS A
SUCCESSFUL BIDDER FOR THE DGS
CONTRACT THAT'S BEEN UNDER
CONSTRUCTION FOR TWO YEARS. WE
GAVE THEM LANGUAGE TO SAY THIS
HAS TO BE PROSPECTIVE FOR
CONTRACTS ENTERED INTO ON OR
AFTER, WHICH IS THE STANDARD IN
THE HUNDREDS OF CONSTRUCTION
BILLS I'VE WORKED ON OVER THE
YEARS. THEY REJECTED THAT, SO
SOMETHING UNDERWAY IS THE
SUCCESSFUL BIDDER. SO IT IS, IN
FACT. RETROACTIVE. THE OTHER
ELEMENT JUST TO POINT OUT ON THE
LIABILITY PIECE. THERE IS NO
LIABILITY IN THE BILL IF A
SPECIFIC SUPPLIER EXCEEDS THE
DWP. WE ASKED FOR THAT THE
INDEMNIFICATION IS FOR THAT. BUT
THE PENALTIES ONLY APPLY IF THE
TOTAL PROJECT NUMBER BUT WE SAID
IS IF A SUPPLIER EXCEEDS THEIR
NUMBER. THEY SHOULD BE ON THE
HOOK. THAT MAKES SENSE THE SAME
THING FOR REBAR. THAT'S NOT IN
THE BILL. WE POINTED THAT OUT,
AND THAT WAS NOT INCLUDED. SO
THIS NOTION OF WHERE LIABLE?
WELL NOT REALLY, BECAUSE YOU'RE
GONNA HAVE TO GO TO COURT.
YOU'RE GOING TO HAVE TO
DETERMINE PROPORTIONAL
LIABILITY. IT'S NOT GOING TO
HAPPEN. I MEAN, IT'S WHY THE
APPROACH WE OFFERED. THE SIMPLE
APPROACH MAKES SENSE. AND,
FRANKLY, ASSEMBLYMEMBER'S
WILSON'S IDEA, FIGURING OUT WHAT
THIS SHOULD BE FIRST MAKES SENSE
SO RESPONSIBLE. TO THE
OPPOSITION. I SURE I HAVE THE
FLOOR. I'M SORRY, AND I'M ASKING
DIRECT QUESTIONS, AND THERE'LL
BE PLENTY OF TIME IN YOUR
CLOTHES. GENERALLY SPEAKING,
WE'VE HAD CONVERSATIONS WITH ALL
SIDES HERE. AND I'VE BEEN
SKEPTICAL OF THIS AND HAVE SAID
SO. I WANT TO ASK THE BASIC
QUESTION HERE. DOES THIS
INCREASE THE COST OF
CONSTRUCTION TO THE STATE OF
CALIFORNIA? AND DOES IT SLOW THE
PROCESS OF CONSTRUCTION? IF I
CAN. IF I COULD ANSWER THAT IN,
IN A BROADER SENSE, BECAUSE I
ULTIMATELY DON'T KNOW THE
OUTCOME OF WHAT THIS WOULD DO
CAN'T PREDICT, BUT I CAN SAY
THAT IF WE FIND OURSELVES IN A
PLACE OF NON COMPLIANCE WITH BID
SPECIFICATIONS IN A PLACE WHERE
WE HAVE TO FIGHT THAT IN THE
COURTS. THOSE ARE ADDED COSTS TO
CONTRACTORS. BOTTOM LINE WILL BE
PASSED DOWN TO THE STATE OF
CALIFORNIA AND INCREASED
EXPENSES. SO, YES. MR MEDINA.
THANK YOU. I APPRECIATE MY
COLLEAGUE'S ANALOGY TO, UH
BANANA NUT BREAD. I'M NOT A
BAKER, BUT I KNOW MORE ABOUT
BANANA NUT BREAD THAN I DO ABOUT
CONCRETE. JUST A HISTORY TEACHER
, BUT I'M CURIOUS ON THE E P D
AND IT IS THE CONCRETE. I'M
HEARING THAT. PRODUCES THE CEO
TO AND NOT NOT THE CEMENT CEMENT
, SO IT'S THE CEMENT THAT VARIES
AND IT'S THE CEMENT THAT GETS
THE EPDS. THE CONCRETE FOR THE
CONTRACTOR UNDER THE BILL WOULD
DO THE FULLY PD, BUT WE DO GET
PDS ON THE CEMENT AND ALL
MATERIALS THAT COME IN. BUT THE
VARIABLE THAN ON THE ON THE
DIFFERENT RATINGS. THESE E P. D
S, THEN THE VARIABLE IS WHAT
WHAT WHAT WOULD CAUSE IS, UH
DIFFERENT CONCRETE TO HAVE
DIFFERENT E P. D S. SO. I'M
SORRY. SO IMPORTANT TO NOTE AND
IF I'M DOING A LITTLE SCIENCE
ONE OR ONE HERE, BUT THE PROCESS
OF MANUFACTURING CEMENT, WHICH
IS THE POWDER THAT IS THE GLUE
UH, EMITS AS A CHEMICAL
BYPRODUCT. UM CO. TWO CARBON. BE
BECAUSE WE'VE BEEN CARBON AWARE
FOR YEARS IN OUR INDUSTRY. WE
HAVE FOUND NEW ADDITIVES LIKE
INCREASED FLY ASH AND OTHER
THINGS THAT ACTUALLY BRING THAT
DOWN. SO ACTUALLY AS AN
INDUSTRY, WE'RE ALREADY IN THIS
TRAJECTORY TO DRAMATICALLY BRING
DOWN THE CARBON OUTPUT OF CEMENT
AS I SHARED. THERE'S ABOUT SIX
PRODUCERS IN CALIFORNIA AND ALL
OF THAT'S USED IN CALIFORNIA,
AND THEN WE IMPORT AND WE HAVE
METRICS AND NATIONALLY
RECOGNIZED STANDARDS FOR THAT
OUTPUT. BUT CEMENT IS GETTING
CLEANER AND THE BILL THAT WAS
PASSED LAST YEAR DEFINES IN LAW
. THE TRAJECTORY FOR THAT THAT
778 THEN WORKS WITH AS WELL AS
WE LOOK TO IT. SO I'M I'M GONNA
NO, I WON'T JUST SAY A MAJORITY
OF OUR EPD CARBON IS FROM OUR
CONSTITUENT INGREDIENTS, NOT OUR
PROCESS, AND WE'RE USED TO
MANAGING THAT AND HAVE BEEN FOR
YEARS BECAUSE THE PRIVATE SECTOR
HAS BEEN DEMANDING. SO THE
VARIABLE IS THE CEMENT. IS THAT
CORRECT? ALREADY PASSED THE BILL
ON THAT LAST YEAR, CORRECT. SIR.
JUST TO BE PERFECT. UM THE
CONCRETE WILL CHANGE ON ANY
GIVEN DAY, DEPENDING UPON THE
WEATHER CONDITIONS, RIGHT?
YOU'RE GOING TO CHANGE THE MIXED
FORMULATIONS. IF YOU WANT TO
DRIVE QUICKER. IF IT'S HOT, IT'S
COLD. SO THOSE ARE SOME OF THE
VARIABLES. HE CHANGED THE
PRODUCT. AND SO THEN, FOR THE
CONTRACTOR, YOU MAY CHOOSE
DIFFERENT. CEMENT WE MAY BE ON
THE JOB, DEPENDING ON WHAT THE
CONDITIONS ARE CONCRETE. YES AND
THAT'S THE REASON WHY THE
AVERAGING WORD. RIGHT THAT'S
EXACTLY THE ARGUMENT. THAT'S THE
POINT. THAT'S THE REASON FOR
AVERAGING. THEY KNOW WHO THEIR
SUPPLIERS ARE. WHAT EPDS THEY
CAN DELIVER. WE COMMIT TO THAT
WHEN WE BID AND WHEN THEY'VE GOT
TO CHANGE, THEN THEY'VE GOT TO
REACH OUT TO MAYBE A DIFFERENT
SUPPLIER FOR A LOWER MPD BECAUSE
WHAT THEY NEEDED TODAY HAD A
LITTLE BIT HIGHER MPD BECAUSE OF
THE SUPPLY CHAIN FOR THAT. AND
ONE OF THE OTHER PURPOSES OF THE
BILL, AND THAT FLEXIBILITY IS TO
ENSURE NO SIGNIFICANT IMPACT TO
THE SUPPLY CHAIN ASSEMBLYMAN.
THAT'S THAT'S A KEY DRIVER HERE
IS TO MAKE SURE WE DON'T DISRUPT
THE SUPPLY CHAIN FOR PROJECT
DELIVERY. THANK YOU. AND UM, SO
THANKS TO MY COLLEAGUES FOR ALL
OF YOUR QUESTIONS AND
CONVERSATION, UM, I HAVE A
COUPLE OF FOLLOW UP QUESTIONS AS
WELL. AND CENTER BACK BACKERS.
YOU KNOW, I'VE BEEN WORKING TO
KIND OF WRAP MY WRAP MY HEAD
AROUND. THIS ONE AND I DO WANT
TO FIRST ACKNOWLEDGE AND SAY
THANK YOU FOR THE INDUSTRY'S
ENGAGEMENT ON THIS ISSUE,
PARTICULARLY IN THE WORK THAT
YOU DID WITH SENATOR BECKER. AH
ON THE BILL LAST YEAR TO ACHIEVE
NET ZERO, UM YOU KNOW THEIR PATH
TO NET ZERO CEMENT IN CALIFORNIA
. AND I DO THINK THAT THAT KIND
OF ENGAGEMENT REALLY IS EXACTLY
WHAT WE WANT. AND WE NEED, UM SO
DO APPRECIATE THAT. BUT KIND OF
STEPPING BACK AT THE 30,000 FT
LEVEL. I REALLY FEEL LIKE I'M
STILL SCRATCHING MY HEAD ABOUT
WHY THIS SOLUTION THAT IS BEFORE
US IS QUITE SO COMPLICATED. UM
AND IT DOES INCLUDE IN MY VIEW.
SOME COMEBACK. ACTUALLY IT JUST
SEEMS UNNECESSARY. UH SO NO ONE
OF THE EXAMPLES THAT WAS
HIGHLIGHTED IN MANY OF THE
LETTERS OF SUPPORT WAS, UH, THE
BIDEN ADMINISTRATION'S RECENT
ACTION TO REQUIRE THAT LOW
CARBON CONCRETE BE USED IN ALL
MAJOR INFRASTRUCTURE PROJECTS
ACROSS THE COUNTRY. SO THAT
SOUNDS LIKE A GREAT THING THAT
SOUNDS LIKE A GOOD THING. IT
ALSO SOUNDS LIKE A PRETTY
STRAIGHTFORWARD THING TO
IMPLEMENT. SO I DON'T
UNDERSTAND. WHY DON'T WE JUST
WHY DON'T WE JUST DO THAT HERE
IN CALIFORNIA AND SAY HERE'S OUR
DEFINITION OF LOW CARBON
CONCRETE? THAT'S WHAT WE'RE
USING FOR ALL OF OUR PROJECTS.
I'VE DONE. I'M SURE THAT THAT AH
DOES THAT THAT THAT'S MISSING
SOMETHING. BUT IF THAT'S WHAT
WE'RE DOING AT THE FEDERAL
LEVEL, WHY DO WE HAVE A
SOLUTION? THAT IS SO COMPLICATED
HERE? AND I'M ACTUALLY ASK, UH,
MR DUGAN FOR THAT QUESTION,
WE'RE ONE STEP AHEAD OF THE
FEDERAL PROCESS. THEY'VE JUST
STARTED HAVING THE DISCUSSION
YOU'RE HAVING TODAY ABOUT HOW
THEY ACHIEVE THAT. AND WE'RE
INVOLVED WITH ALL OUR NATIONAL
ASSOCIATIONS IN WASHINGTON IN
HELPING THEM HAVE THAT
DISCUSSION WITH THE FEDERAL
ADMINISTRATION. BUT UM WE'RE TWO
STEPS AHEAD OF THAT HERE.
SEVERAL STATES HAVE ALREADY
ADOPTED STATUTES LIKE THIS THAT
HAVEN'T ADDRESSED SOME OF THE
CHALLENGES THIS BILL HAS. IT'S
BEEN INFORMED BY WHAT'S OCCURRED
AND I WANT TO BELIEVE COLORADO
AND NEW YORK WITH THE BILLS THAT
HAVE ALREADY PASSED, WE'RE TWO
STEPS AHEAD OF THAT FEDERAL
PROCESS BECAUSE NOW IT WILL
START THE PROCESS OF HOW HOW DO
WE MEASURE THAT? KNOWING THAT WE
HAVE SUPPLY CHAIN, UH, ISSUES TO
CONSIDER NOT PROBLEMS BUT ISSUES
WE HAVE TO ACKNOWLEDGE. WHAT
DOES IT TAKE TO MANUFACTURE
CEMENT AND THEN MIX IT INTO
CONCRETE? THE DIFFERING NEEDS OF
YOU KNOW WHETHER IT'S A HEAVY
CEMENT OR A LIGHT CEMENT OR
READY TO CURE QUICK OR NOT READY
TO CURE QUICK WHEN IT TURNS INTO
CONCRETE. THOSE ARE VARIABLES,
SO WE'RE BASICALLY 10 STEPS
AHEAD OF HIM. YOU ALL ARE BY
CONSIDERING THIS LEGISLATION.
THAT'S THE ANSWER TO YOUR
QUESTION, UNFORTUNATELY, BECAUSE
THEY'LL HAVE TO GO THROUGH THESE
ADOPTED PRINCIPLES AND OUR
NATIONAL ASSOCIATION, THE
NATIONAL RADIO MICS ASSOCIATION
, NATIONAL STONE SAND AND GRAVEL
ASSOCIATION. THE NATIONALS.
PORTLAND'S CEMENT ASSOCIATION
ARE ALL HAVING THOSE DIALOGUES
WITH ADMINISTRATIVE DEPARTMENTS
AT THE FEDERAL LEVEL NOW. AND SO
IF WE ARE 10 STEPS, OR HOWEVER
MANY STEPS AHEAD, WE ARE TWO
STEPS TWO STEPS AHEAD.
CALIFORNIA VERY PROUD. TWO STEPS
AHEAD, THEN. CAN WE NOT DEFINE A
STANDARD FOR LOW CARBON
CONCRETE. THAT. THEN THE FOLKS
YOU KNOW IN THE FIELD ON THE
GROUND. POURING THIS STUFF AND
BUILDING CALIFORNIA. CAN CAN USE
RATHER THAN HAVE TO MANAGE THIS
, YOU KNOW TO THAT, I GUESS 10
DECIMAL POINT, SO I ACTUALLY HAD
THIS DISCUSSION WITH SEVERAL OF
OUR OPERATORS WHILE WE WERE
WORKING ON THE BILL. AND THIS IS
ACTUALLY SIMPLER THAN THAT,
BECAUSE YOU'D HAVE TO HAVE A
DIFFERENT LEVEL FOR EVERY SINGLE
DIFFERENT MIXED DESIGN THAT THE
CONTRACTOR MIGHT NEED KNOWING
CONDITIONS CHANGE WHETHER IT'S
WARM OR COLD, RIGHT WHETHER THEY
NEEDED TO CURE QUICK OR NOT,
WHETHER THEY'RE BEHIND AND
THEY'RE BEING FLOGGED TO HURRY
UP BECAUSE THEY HAVE LIQUIDATED
DAMAGES IF THEY DON'T DELIVER
PROJECT ON TIME. THEN THEY'D
HAVE TO INCORPORATE ALL THAT IN
THEIR SUBCONTRACTING BID THAT'S
ACTUALLY MORE COMPLEX SOLUTION
TO HAVING A NET. END OF PROJECT
BUDGET AND EXPECTING ALL THEIR
PROVIDERS AT RISK OF FINANCIAL
PENALTY, AND YOU KNOW, AS IT
SAYS IN THE BILL, ASSUMING ALL
LIABILITY MEETING THAT NEED WE
WILL BE PRODUCING BY BATCH E. P
D S BUT THE DIFFERENT MIXED
DESIGNS THAT ARE REQUIRED BY A
CONTRACTOR CHANGED DURING A
PROJECT AND I THINK YOU WANTED
TO, BECAUSE THAT'S WHY THE
CONTRACTORS ARE GOOD AT WHAT
THEY DO. THAT'S WHY THE TWO OR
THREE OR FOUR MAJOR CONTRACTORS
THAT BID ON THE REALLY BIG
PROJECTS DO WHAT THEY DO THEY
KNOW HOW TO DO THAT MIXED
DESIGN. THEY KNOW HOW TO REQUIRE
THE RIGHT MATERIALS FOR THE
CIRCUMSTANCES. AND THAT ALL I
DON'T THINK YOU WOULD WANT TO
LEGISLATE THAT BECAUSE THAT'S
WHAT MAKES A SUCCESSFUL RIGHT
PROJECT. WHEN YOU LOOK AT OUR
NEW BUILDING ACROSS THE STREET
HERE, OR YOU LOOK AT THE LITTLE
BUILDING ACROSS THE STREET FROM
OUR OLD OFFICE AT AT ON J.
STREET AT I WANT TO SAY 11TH AND
J. YOU LOOK AT THAT BUILDING
THAT'S GOING UP RIGHT NOW.
RIGHT? THERE WERE CHANGES AND WE
RAJ TO FOUR DIFFERENT CONCRETE
COMPANIES DELIVER CONCRETE TO
THAT PROJECT, AND I WAS THEIR
OFFICE WAS IN OUR OFFICE SO I
WOULD TALK TO THEM. AND IT'S
THAT DAILY. OKAY WE NEED TO
TWEAK THIS. WE NEED TO TWEAK
THIS SUPPLY. WE NEED TO TWEAK
THIS TIMING. THAT WOULD BE MORE
YOU WANT TO LEAVE THAT I THINK
FOR THE CONTRACTORS TO DELIVER
ON THE NET OUTCOME, WHICH IS
WHAT THIS BILL IS ABOUT. THIS IS
A WORKABLE SOLUTION FROM THE
PRACTICAL SIDE, ACCORDING TO OUR
MEMBERS, I THINK THE BOTTOM LINE
I THINK THE BOTTOM LINE KIND OF
IN MY ANALYSIS IS THAT JUST BY
DEFINITION, THERE'S A LOT OF
COMPLEXITY THAT SOMEBODY HAS TO
MANAGE, RIGHT SO IT'S EITHER
GOING TO BE YOUR GUYS OR IT'S
GOING TO BE THERE, GUYS AND
RIGHT NOW. IT'S THEIR GUYS AND
THAT'S WHY YOU'RE DO YOU KNOW
WHAT I'M SAYING? THAT I THINK
THAT THAT'S WHY THERE'S THIS
TENSION. UM YOU KNOW THE SIMPLER
APPROACH THAT THEY'RE PROPOSING
AND THAT I JUST ASKED YOU ABOUT.
CREATES A LOT OF COMPLEXITY FOR
YOUR FOLKS RIGHT SO WELL AND FOR
THE BIDDER. YEAH THE CONTRACTOR
. I WANT TO ASK ONE OTHER
QUESTION ABOUT THE RETROACTIVITY
BECAUSE KIND OF A QUICK POP ON
THAT FIRST I WOULD LIKE TO ASK
THE CONTRACTORS. UM BECAUSE THE
POINT POINT TO UNDERSTAND HERE
IS WHAT WE HAVE THE FLEXIBILITY
OF THIS CARBON BUDGET, AND WE
JUST HEARD WHY THAT'S IMPORTANT.
THE CONTRACTOR STILL CAN UNDER
THIS BILL REQUIRE THAT EACH
BATCH MEET THE PD. BUT THAT'S
REALLY THE TWO OPTIONS. THAT'S
WHAT THEY'VE BEEN ASKING FOR
FIVE YEARS IS THIS ONE IDEA THEY
WILL NOT GET OFF OF THAT EACH E
P D SHOULD FOR EACH BATCH. HAS
TO MEET THE THRESHOLD AND. AND
SO WE'VE OFFERED THEM AND THEY
WOULDN'T TELL ME IF YOU WAS
WRONG. WE'VE OFFERED THEM SAY
YES. YOU CAN DO IT THAT WAY. IF
YOUR IF YOU THINK YOU CAN MAKE
IT WORK, YOU CAN DO IT THAT WAY.
BUT WE THINK YOU'RE GOING TO
WANT THIS FLEXIBILITY. THAT'S
WHY WE BUILT IN THE FLEXIBILITY.
IS THAT NOT TRUE THAT WE HAVE
OFFERED THAT YOU CAN A
CONTRACTOR UNDER THIS BILL CAN
DO EXACTLY WHAT YOU WANT, WHICH
IS AN E P D FOR EACH BATCH. IF
AGREED TO CONTRACT YES, BUT THE
LIABILITY THANK YOU DOESN'T
APPLY. AFFECTIONS RATHER
UNDERSTAND THAT SO I JUST WAS
IMPORTANT POINT. THE CONTRACTORS
JUST AGREED THAT THEY CAN DO
EXACTLY WHAT THEY WANTED FOR
FIVE YEARS THEY CAN DO UNDER
THIS BILL. IF THEY THINK THEY
CAN WORK IT UNDER CONTRACT TO
THE E P D FOR EACH BATCH. THEY
CAN DO THAT, BUT WE LAYER ON
THIS FLEXIBILITY. AGAIN EXACTLY
WHAT I'VE BEEN ASKING, BUT WE
ALSO LAY ON THIS FLEXIBILITY
BECAUSE WE THINK FOR THE REASONS
WERE MENTIONED. THAT THEY ARE
GOING TO WANT THAT, AND THAT'S
GOING TO BE BETTER FOR THE
INDUSTRY. AND THEN LET ME ASK
YOU, SENATOR ABOUT, UH, THE
QUESTION OF RETROACTIVITY
BECAUSE I THINK YOU SAID IT'S
NOT RETROACTIVE. SO I GUESS IT
SOUNDS LIKE YOUR INTENTION WAS
NOT THAT IT SHOULD BE
RETROACTIVE. BUT THE LANGUAGE
HAS DRAFTED IS INDEED
RETROACTIVE CASE, ALEX WHERE YOU
JUST WERE HAPPY TO CLARIFY THAT
CERTAINLY JUST AN AMBIGUITY AT
BEST. I THINK IT WAS NOT
REJECTED OUT OF HAND. THIS IS
ABOUT APPLYING TO PROJECTS GOING
FORWARD. OF COURSE. OKAY, SO
THAT I THINK THERE'S ALSO BEEN A
CONCERN RAISED ABOUT MOVING
TOWARDS PERFORMANCE BASED
SPECIFICATIONS. WHICH TO YOUR
BAKING ANALOGY. ASSEMBLYMEMBER'S
WILSON IS IMPORTANT, WE THINK,
BECAUSE YOU CAN JUST USE LESS
CEMENT. AND HAVE THE SAME STRONG
PRODUCT AND THAT STARTS RIGHT
AWAY. BUT TO THE EXTENT
PRACTICAL, OKAY, WE'RE STILL
ALLOWING AGENCIES TIME TO MOVE
ALL THIS FORWARD, BUT WE'RE
HAPPY TO CLARIFY THE INTENT.
THIS IS NOT ABOUT APPLYING TO
PROJECTS THAT ARE ALREADY IN
CONSTRUCTION AND THEN ALRIGHT,
SO RETROACTIVITY. THAT'S
SOMETHING YOU'RE COMMITTED TO
ADDRESSING AND CLARIFYING AND
AMENDING IN THE NEXT COMMITTEE,
OKAY? UM AND THEN CAN WE JUST
COME BACK TO THIS QUESTION OF
KIND OF LIABILITY AND
INDEMNIFICATION, WHICH SEEMS TO
BE THE OTHER STICKING POINT.
WHERE AGAIN. IT FEELS AS IF, UH
YOUR INTENT IS IN FACT, THAT
CONTRACTORS WOULD BE
INDEMNIFIED, BUT THE LANGUAGE IS
DRAFTED MAKES IT FROM THE
CONTRACTORS PERSPECTIVE, NOT
WORTH THE PAPER. IT'S WRITTEN
ON, I BELIEVE WAS THE QUOTE. SO,
UM I SUPPOSE, IS THERE IS THERE
A CAN? CAN YOU COMMIT TO WORKING
ON THAT? AS WE MOVE INTO THE
NEXT COMMITTEE SHOULD THIS BILL
ADVANCE? ABSOLUTELY ABSOLUTELY.
I WOULD COMMIT TO THAT AGAIN. WE
FEEL THAT WE DO THAT WITH THE
LIABILITY GUARANTEE WHICH
OBVIOUSLY A LITTLE SURPRISED.
YOU GUYS AGREED TO, BUT THEY DID
AGREE TO IT. UM AND YOU KNOW, I
DO WANT TO SAY CONTRACTORS DO
WITHHOLD PAYMENTS RIGHT FROM
SUPPLIERS. UM UNTIL THEY GET ALL
THE PAPERWORK THAT HAPPENS
TODAY. SO THERE ARE TIMELESS,
BUT THERE SHOULD BE NO PROBLEM
IN KNOWING WHETHER AND BY HOW
MUCH SPIRES EXCEEDED THE CARBON
TARGETS BEFORE RELEASING THE
RETENTION, RIGHT, SO THAT EXIST
TODAY, RIGHT? CORRECT. YEAH. SO
I DO FEEL THAT, UM AH, I DO FEEL
WE TRY TO ADDRESS THAT, BUT
WE'RE ABSOLUTELY COMMITTED TO
WORKING WITH IT AND GOING
FORWARD. UM AND MR BAUER YOU IF
I COULD JUST RESPOND TO THE
RETENTION COMMENT. RETENTION
FOLLOWS VERY STRICT GUIDELINES
ON PUBLIC WORKS PROJECTS.
THERE'S TIME THAT WE HOLD AND
HAVE TO RELEASE FUNDS AND
PERCENTAGES THAT WE CAN WITHHOLD
ON RETENTION OF PUBLIC WORKS
PROJECTS. IT'S LIMITED TO 5% ON
BUILDINGS IN HIGHWAY CALTRANS
PROJECTS. RETENTION IS 00% SO IT
DOES NOT PROVIDE A FINANCIAL
SHIELD FOR THE CONTRACTOR WHO
MAY BE FACING FURTHER ACTION IN
THE COURT. OKAY? THANK YOU.
ALRIGHT ANY OTHER QUESTIONS
BEFORE WE OKAY? UM. AS I SAID,
I'VE BEEN TRYING REALLY HARD TO
WRAP MY HEAD AROUND THIS ONE. UH
AND I THINK YEP, BASED ON YOUR
COMMITMENT TO ADDRESS THE RED
RETROACTIVITY AND BASED ON YOUR
COMMITMENT TO WORK ON THE
IDENTIFICATION LANGUAGE. UM. AS
WELL AS THE ACKNOWLEDGMENT THAT
THERE IS, IN FACT, YOU KNOW,
SOMEWHERE IN THERE A SIMPLE
SOLUTION. I'M STILL VERY WORRIED
ABOUT THE COMPLEXITY. UM I'LL
SUPPORT IT SO THAT THEY CAN
CONTINUE TO MOVE THROUGH THE
PROCESS. UM, SHOULD IT MOVE
THROUGH THE COMMITTEE. UM SO
THAT'S WHERE THAT'S WHERE I AM.
SENATOR. WOULD YOU LIKE TO
CLOSE? THANK YOU. UM, I DON'T
KNOW. IT'S BEEN A LONG
DISCUSSION. I'M REALLY GRATEFUL
TO THE COMMITTEE FOR DIVING INTO
A YOU KNOW WHAT IS A INHERENTLY
COMPLEX AGAIN? I'M JUST VERY
GRATEFUL TO THE WITNESSES. AND
FOR FOLKS THAT CAME TO TAKE. I
MEAN, WE HAVE A CHANCE TO DO
SOMETHING HISTORIC. WE CERTAINLY
DO. COMMIT TO WORKING FORWARD.
UM AGAIN. WE'VE JUST TRIED TO BE
REALLY CLEAR THAT TODAY THE
CONTRACTORS CAN DO WHAT THEY
WANT. THEY CAN. THEY CAN MAKE
SURE THAT EACH BATCH MEETS THE
SPECIFICATION. WE JUST THINK
THEY'RE GOING TO WANT THIS
FLEXIBILITY. THAT'S WHAT WE
BUILT IT IN. WE THINK IT'S
BETTER FOR, UH UM FOR EVERYONE
AS A WHOLE AND FOR THE
SUPPLIERS. AND WE THINK THEY'RE
GOING TO WANT IT. UM I
APPRECIATE YOUR CONSIDERATION
AND SUPPORT AND WE DO COMMIT TO
CONTINUE TO WORK FORWARD ON
LIABILITY. UM AND WE'LL
CERTAINLY CLARIFY ANYTHING ABOUT
PERSPECTIVE. GOING FORWARD
APOLOGIZING. THAT'S NOT CLEAR.
WE THOUGHT IT WAS BUT WE THINK
IT'S A RARE OPPORTUNITY AND WE
EXPECTEDLY ASK FOR YOUR VOTE.
OKAY. UM, DO WE HAVE A MOTION?
AND I WILL. SECOND IT SECRETARY
CALLED THE ROLE THE MOTION IS DO
PASS AND REFER TO NATURAL
RESOURCES COMMITTEE.
PETRIE-NORRIS. AYE. PATERSON
GRAY. LACKEY MEDINA. STONE. AND
WILSON. MM. OKAY I 24 THAT BILL.
FAILED SO. WE'LL CONTINUE. I
ASSUME TO WORK ON THIS AND NOT
THE COMING YEAR. THANK YOU
APPRECIATE YOUR CONSIDERATION.
ALRIGHT MADAM SECRETARY. IF YOU
CAN PLEASE GO AHEAD AND REVIEW
THE BILLS THAT ARE ON CALL. SB 5
43 IS DUE PAST AND REFERRED TO
APPROPRIATIONS COMMITTEE BETWEEN
NORRIS PATERSON. GRAY. LACKEY,
MATINA STONE. AND WILSON. SB 5
61 IS DO PASS AND REFER TO
HOUSING AND DEVELOPMENT
PETRIE-NORRIS. ALRIGHT,
PATTERSON. NO VOTE. GREAT
BLACKIE. MEDINA AND STONE. OKAY?
BEST SB 7 78. AND THAT WAS YES.
SB 10 69 AND SB 11 92 ARE BOTH
ON CONSENT STONE. SB 12 51 IS DO
PASS AND REFERRED TO
TRANSPORTATION STONE. SB 13. OH,
FIVE, IS DUE PAST AND REFERRED
TO APPROPRIATION STONE. SB 13 21
IS DO PASS AND REFER TO
APPROPRIATIONS STONE. AND US WE
13 87 8 STEW PASTON REFERRED TO
JUDICIARY STONE. OKAY I BELIEVE
THAT CONCLUDES OUR BUSINESS AND.
OKAY WITH THAT OUR BUSINESS IS
CONCLUDED, AND THAT CONCLUDES
THIS TODAY'S HEARING OF THE
ASSEMBLY'S ACCOUNTABILITY AND
ADMINISTRATIVE REVIEW COMMITTEE
. THANK YOU.