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California Utilities Tie Contract Goals to LGBT Certification

Large utilities must meet procurement goals that can steer contracts toward 1.5% LGBT-owned firms, a rule critics say rewards identity over cost and quality.

  • California's Public Utilities Commission set procurement goals to allocate approximately $633 million in contracts to LGBT-certified businesses by 2024.
  • Businesses must undergo a certification process involving documentation such as letters from recognized LGBT organizations or proof of LGBT status to qualify for these contracts.
  • The program expanded under Democratic governors in response to activist claims of discrimination in utility companies.
  • Some critics argue that awarding contracts based on sexual orientation is legally and ethically questionable, coinciding with a reported decrease in the number of LGBT-certified firms in 2024.
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City Journal broke the news in New York, United States on Tuesday, June 16, 2026.
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