California regulators are encouraging utility companies to steer hundreds of millions of dollars in contracts to” LGBT-certified businesses.”The efforts are part of a state diversity program that bases procurement decisions in part on the sexual orientation or gender identity of business owners.According to a report by Christopher Rufo at the City Journal, the California Public Utilities Commission (CPUC) has established procurement targets calling for major utilities to direct 1.5 percent of spending to businesses certified as LGBT-owned.SCOOP: California is pressuring public utilities to award $633 million in special contracts to “LGBT-owned” firms. To qualify, residents must go through the state’s official gay-certification program—and face up to a year in jail if they’re not gay enough.https://t.co/rOcnPqYJrl— Christopher F. Rufo (@christopherrufo) June 16, 2026Based on 2024 utility spending, that target would amount to roughly $633 million in contracts.The program is part of California’s Supplier Diversity Program, which originally focused on women- and minority-owned businesses before being expanded by Democratic lawmakers and governors to include LGBT-owned firms.Former Governor Jerry Brown signed legislation in 2014 requiring the CPUC to recognize LGBT-owned businesses, while Governor Gavin Newsom later broadened the initiative across the energy sector.Here’s the state’s official gay-certification checklist. pic.twitter.com/ObMwid1DQW— Christopher F. Rufo (@christopherrufo) June 16, 2026Utilities regulated by the CPUC spent more than $43 billion on contractors in 2024.To obtain certification, applicants must provide documentation establishing LGBT ownership.Accepted forms of evidence can include letters from LGBT organizations, media reports identifying an owner as LGBT, or statements from personal contacts.Utilities are required to track diversity spending, submit annual reports, and explain any failure to meet procurement targets.One business owner told City Journal that diversity certifications helped his company secure work with San Diego Gas & Electric.“If I was a straight, white male, I might be concerned I don’t have the same opportunity,” he told the publication. “It worked out great for me.”The policy remains in place despite California voters approving Proposition 209, which bars preferential treatment based on race, sex and ethnicity in public contracting.State records show there are approximately 451 LGBT-certified businesses already participating in the program.The post California to Impose ‘LGBT Certification’ Tests for $633 Million in Government Contracts appeared first on The Gateway Pundit.