Gender

California’s Absurd ‘Gay Certification’ Process For Utility Contracts

California utilities face scrutiny over a new LGBTQ+ certification rule for contractors, raising concerns about bureaucracy, compliance costs, and fairness in state contracting.

June 26, 2026
2 min read

(California Globe) Recent reporting has pulled back the curtain on yet another California scheme that prioritizes identity over merit in the distribution of public resources.

Through the California Public Utilities Commission’s Supplier Diversity Program under General Order 156, large investor-owned utilities face escalating procurement “goals” for state-certified LGBT Business Enterprises (LGBTBEs).

These targets reached 1.5 percent in 2024 and beyond, channeling hundreds-of-millions of dollars (figures cited in recent analyses approach $633 million annually across related categories) toward businesses whose owners must prove their sexual orientation or transgender identity to government-approved certifiers.

This is not neutral supplier outreach. It is preferential treatment baked into the contracting process for entities ultimately funded by ratepayers.And the mechanism for accessing those preferences is a bureaucratic checklist so intrusive and subjective that it would be laughable–if it were not backed by the force of state policy and the threat of penalties for misrepresentation.

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