(a) On or before July 1, 2025, the state board shall work with the labor agency to update Greenhouse Gas Reduction Fund funding guidelines for administering agencies to ensure that all applicants to grant programs listed in Section 39719 and funded by the Greenhouse Gas Reduction Fund meet all of the following standards:

1. (1) Fair and responsible employer standards, meaning documented compliance with applicable labor laws and labor-related commitments concerning wages, workplace safety, rights to association and assembly, and nondiscrimination standards.
2. (2) Inclusive procurement policies, meaning applicant procurement policies that prioritize bids from entities that demonstrate the creation of high-quality jobs or the creation of jobs in under-resourced, tribal, and low-income communities, or both the creation of high-quality jobs and the creation of jobs in those communities.
3. (3) Prevailing wage for any construction work funded in part or in full by the grant.

(b) On and after the adoption of the update pursuant to subdivision (a), all of the following shall apply:

1. (1) Applicants seeking over one million dollars ($1,000,000) in funding for construction projects shall provide evidence of a community workforce agreement.
2. (2) Administering agencies shall give preference to applicants that demonstrate a partnership with an educational institution or training program targeting residents of under-resourced, tribal, and low-income communities in the same region as the proposed project.
3. (3) Administering agencies shall give preference to applicants that demonstrate that jobs created through the proposed project will be high-quality jobs.

(c)

1. (1) Applicants for projects that involve federal funding, technical assistance, research, or funding provided pursuant to paragraph (3) or (4) of subdivision (b) of Section 39719 are exempt from this section.
2. (2) This section does not apply to an applicant who is not an employer.

3. (3)

   1. (A) This section does not apply to a housing project that will feature 100 percent affordable units, exclusive of a manager’s unit or units.

   2. (B) For purposes of this subdivision, “affordable unit” means a unit that is subject to a recorded affordability restriction for 55 years and is either of the following:

      1. (i) A rental unit dedicated to persons and families of low income, as defined in Section 50093.
      2. (ii) An owner-occupied unit dedicated to persons and families of moderate income, as defined in Section 50093.