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Attachment A ATTACHMENT A From: Tarrance Frierson <[email protected]> Sent: Thursday, December 31, 2020 12:31 PM To: Green, Stephanie <[email protected]>; Melton, Drisha <[email protected]>; Dilgassa, Bezawit <[email protected]> Cc: Edward A Simon <[email protected]>; Williams, Vaughn <[email protected]>; Chow, Joe <[email protected]>; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Kwan, Lili <[email protected]>; [email protected]; [email protected]; [email protected]; [email protected]; Furbush, Sydney <[email protected]>; Porter, Michelle K. <[email protected]>; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; jeni.santana@t- mobile.com; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Joycelyn Yue <[email protected]>; CASTILLO, LISA S <[email protected]>; Gleaves, Jerilyn <[email protected]> Subject: NOTICE: LGBTBE Spend Goal Recommendation -- Joint Utilities Group Importance: High Stephanie and team, Happy Holidays and hope you all are doing well. Per General Order 156, attached is the LGBTBE spend goal recommendation from the Joint Utilities (JU) group. In addition, attached are supplemental documents to support our recommendation, as well as demonstrate our commitment to inclusion and transparency throughout the goal development process. On behalf of the JU, thank you for your guidance and partnership. We are continuing to engage in discussions with the various LGBT advocacy and community-based organizations, aimed at facilitating the ongoing inclusion and development of LGBTBE suppliers. Let us know if you have any questions and we look forward to a decision for the Commissioners. Joe Chow Ed Simon Tarrance Frierson Southern California Gas Company California American Water Southern California Edison Joint Utilities Chair (2020) Co-Lead, LGBTBE Goal Analysis & Recommendation Co-Lead, LGBTBE Goal Analysis & Recommendation TARRANCE FRIERSON Principal Manager Operational Services l Supplier Diversity and Development T. 626-302-7611 l M. 626-418-2601 ADMINISTRATIVE ASSISTANT: Rebecca Casey | 626.302.4030 | [email protected] Confidentiality Notice: This communication is intended for the use of the recipient to which it is addressed and may contain confidential, personal and/or privileged information. Please contact us immediately if you are not the intended recipient of this communication, and do not distribute or take action relying on it. Any communication received in error, or subsequent reply, should be deleted or destroyed. Joint Utilities Group: LGBTBE Spend Goal Recommendation BACKGROUND & OVERVIEW On September 26, 2014, Governor Jerry Brown signed Assembly Bill (AB) 1678 into California law. The legislation championed by retired Assemblymember Rich Gordon and others, aimed to create access, and expand opportunities for Lesbian, Gay, Bisexual, Transgender Business Enterprises (LGBTBE) through the California Public Utilities Commission’s (CPUC) General Order 156 (GO 156). In June 2015, the CPUC updated Section 8.3 of GO 156 to include new reporting requirements and a five-year implementation plan specific to LGBTBEs. The following provides a high-level overview of the plan and associated requirements. • 2015: Awareness and Partnerships - Work with LGBT advocacy and community-based organizations to identify and build LGBTBE supplier pool. • 2016-2018: Focus on Inclusion, Outreach and Reporting - Update processes, procedures, and systems to facilitate the recruitment and utilization of LGBTBEs. - Support or sponsor outreach, technical assistance, and capacity building programs for LGBTBE. - Submit Annual Reports with short and long-term goals and objectives (non- numerically based), as well as begin reporting LGBTBE spend data. • 2019: Additional Reporting and Spend Goals - Report progress with LGBTBE outreach efforts and/or strategies. - Establish individual and internal numerically based targets or goals for LGBTBE procurement. • 2020: Transparency and Recommendation - Hold public workshop to review LGBTBE accomplishments, challenges, and opportunities. - CPUC Supplier Diversity staff and utilities to submit joint report and recommendation for setting a meaningful LGBTBE spend goal in GO 156. In January 2020, the Joint Utilities group along with the CPUC Supplier Diversity staff and representatives from the various LGBT advocacy, chamber, and community-based organizations initiated conversations related to establishing an aspirational and attainable LGBTBE spend goal supported by data-driven insights. In addition, the group discussed common challenges for diverse businesses, as well as potential actions that could help drive progress with the LGBTBE spend category. The meetings were collaborative, informative, and reaffirmed a shared commitment to advance opportunities for LGBTBE suppliers. RECOMMENDATION & RATIONALE The Joint Utilities (JU) is a group of industry professionals representing CPUC-regulated utilities that gather periodically to discuss issues and share best practices specific to supplier diversity program activities and advancing opportunities for diverse business enterprises. In compliance with Section 8.3.6 of General Order 156, the group collectively and respectfully submits to the California Public Utilities Commission’s (CPUC) for consideration, a LGBTBE spend goal recommendation of .50%. The spend goal recommendation is based on a review of LGBTBE spend, supplier availability, and other data between 2015 and 2020. The analysis focused on key purchasing categories, spend trends, certification stats, marketplace competition, and more. The following summarizes the key findings and information received from the utilities and other sources. • Procurement spend varied by utility sector based on business scope, purchasing needs, industry drivers, service area geography, multi-year contracts, etc. • LGBTBE 4-year (2016–2019) average spend totaled .135%, based on annual report data submitted to the CPUC. • Total LGBTBE spend exceeded $163 million dollars and increased 53% during 4-year period (2016–2019). • Total Procurement spend ranged from $139 to $20 billion dollars across 79 Standard Industrial Classification (SIC) codes during 4-year period (2016–2019). • In July 2020, the Supplier Clearinghouse database included approximately 8,300 diverse businesses, slightly over 500 were LGBTBE firms. - There have been a limited number of new and renewal certifications with LGBT- owned businesses. Reference Table 1 below. - The vast majority of LGBTBEs firms were added through a MOU “data transfer” agreement between the CPUC and the National Gay & Lesbian Chamber of Commerce (NGLCC). - Roughly 50% of the LGBTBE firms listed SIC codes 73 (Business Services) and 87 (Engineering & Management Services) as a primary code; overall there are 55 unique SIC code associations. • GO 156 limits reportable spend to firms certified through the Supplier Clearinghouse and/or the Department of General Services (for Disabled Veteran); as well as limits the alignment of spend to a single category, even if a supplier is certified across multiple diverse categories (i.e., MBE, WBE, DVBE, and LGBTBE). • Some business owners are hesitant to certify as a LGBTBE firm out of concern or risk of losing business with other clients or corporations. • Marketplace competition among diverse business enterprises is significant. TABLE 1: LGBTBE Certification Data – The Supplier Clearinghouse Data Direct CAV Renewal MOU Year Certifications1 Certifications2 Certifications3 Data Transfer4 2015 16 18 N/A N/A 2016 37 40 2 N/A 2017 28 24 4 N/A 2018 22 34 8 N/A 2019 20 13 12 265 2020 19 48 16 273 DATA SOURCE: Supplier Clearinghouse administrator, B2Gnow (provided December 28, 2020) 1. New certification requests processed with the submission of a Standard, Fast Track, or Additional (suppliers certified in other categories – MBE, WBE, etc.) application. 2. Reciprocal certification requests from suppliers certified through the NGLCC, processed with submission of a Comparable Agency Verification (CAV) application. 3. Renewal certification requests, typically suppliers whose initial application was approved through the Direct certification process. 4. Suppliers uploaded to the Clearinghouse database according to parameters defined by the Memorandum of Understanding (MOU) between the CPUC and NGLCC. Attached are copies of the presentations prepared by the JU group and the various LGBT advocacy, chamber, and community-based organizations. In addition, attached are the meeting notes from the public workshop hosted by the JU group on October 28, 2020. OTHER HIGHLIGHTS & COMMITMENTS As the journey continues and we think about next steps, it is important to celebrate and highlight other accomplishments since the passage of California Assembly Bill 1678. Members of the Joint Utilities group have established and/or expanded partnerships with multiple LGBT advocacy, chamber, and community-based organizations. Over the past four years, the utilities have contributed more than $1.3 million in sponsorship
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