California 2021 2021-2022 Regular Session

California Assembly Bill AB983 Amended / Bill

Filed 06/15/2021

                    Amended IN  Senate  June 15, 2021 Amended IN  Assembly  April 12, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 983Introduced by Assembly Member Eduardo GarciaFebruary 18, 2021 An act to add Chapter 2.6 (commencing with Section 2100) to Part 1 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 983, as amended, Eduardo Garcia. Public contracts: construction projects: community workforce 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, as defined, for construction projects related to battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe 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 Agreements2100. 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 todays 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. (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.(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.(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. (g) It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.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 battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.(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 all of the following:(1) 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. (2) Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.(3) Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.(d) This chapter shall apply only to the extent permissible under state and federal law.

 Amended IN  Senate  June 15, 2021 Amended IN  Assembly  April 12, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 983Introduced by Assembly Member Eduardo GarciaFebruary 18, 2021 An act to add Chapter 2.6 (commencing with Section 2100) to Part 1 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 983, as amended, Eduardo Garcia. Public contracts: construction projects: community workforce 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, as defined, for construction projects related to battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Senate  June 15, 2021 Amended IN  Assembly  April 12, 2021

Amended IN  Senate  June 15, 2021
Amended IN  Assembly  April 12, 2021

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 983

Introduced by Assembly Member Eduardo GarciaFebruary 18, 2021

Introduced by Assembly Member Eduardo Garcia
February 18, 2021

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

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 983, as amended, Eduardo Garcia. Public contracts: construction projects: community workforce 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, as defined, for construction projects related to battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.

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, as defined, for construction projects related to battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.

## Digest Key

## Bill Text

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 Agreements2100. 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 todays 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. (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.(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.(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. (g) It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.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 battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.(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 all of the following:(1) 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. (2) Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.(3) Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.(d) This chapter shall apply only to the extent permissible under state and federal law.

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

## 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 Agreements2100. 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 todays 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. (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.(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.(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. (g) It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.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 battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.(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 all of the following:(1) 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. (2) Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.(3) Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.(d) This chapter shall apply only to the extent permissible under state and federal law.

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

### SECTION 1.

 CHAPTER 2.6. Community Workforce Agreements2100. 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 todays 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. (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.(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.(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. (g) It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.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 battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.(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 all of the following:(1) 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. (2) Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.(3) Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.(d) This chapter shall apply only to the extent permissible under state and federal law.

 CHAPTER 2.6. Community Workforce Agreements2100. 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 todays 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. (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.(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.(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. (g) It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.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 battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.(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 all of the following:(1) 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. (2) Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.(3) Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.(d) This chapter shall apply only to the extent permissible under state and federal law.

 CHAPTER 2.6. Community Workforce Agreements

 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 todays 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. (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.(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.(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. (g) It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.



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 todays 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. 

(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.

(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.

(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. 

(g) It is the intent of the Legislature to expand the use of CWAs on climate investments involving battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.

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 battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.(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 all of the following:(1) 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. (2) Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.(3) Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.(d) This chapter shall apply only to the extent permissible under state and federal law.



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 battery manufacturing and lithium-based technology. technology in the Salton Sea geothermal resource area.

(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 all of the following:

(1) 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. 

(2) Mechanisms to involve members of the impacted communities throughout the implementation and monitoring process of the agreement.

(3) Pathways for individuals of minority and low-income groups to access apprenticeships and employment opportunities.

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