BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1346 (Gray) - Office of Emergency Services: State Emergency Plan and statewide earthquake early warning system ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 31, 2016 |Policy Vote: G.O. 12 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1346, an urgency measure, would delete funding restrictions and conditions that must be met before the Office of Emergency Services (OES) can take actions to establish a statewide earthquake early warning system (EEWS), including an existing prohibition against using the General Fund for that purpose, as well as a deadline to identify funds by a July 1, 2016 sunset date. The bill would also require OES to update the State Emergency Plan on or before January 1, 2018 and every five years thereafter, as specified. Fiscal Impact: Initial estimated capital costs of approximately $28 million (General Fund) to establish the EEWS, according to a recent EEWS Project Implementation Framework report (see staff comments). Staff notes that the 2016-17 Budget includes a AB 1346 (Gray) Page 1 of ? one-time General Fund appropriation of $6.875 million for capital funding for EEWS purposes. Ongoing annual administrative costs of approximately $17 million (General Fund) beginning in 2017-18, according to the Project Implementation Framework report (see staff comments). Staff notes that the 2016-17 Budget includes a one-time General Fund appropriation of $3.125 million for state operations related to the development of the EEWS: $734,000 for 4 PY of staff at OES, $150,000 for a financial strategy contract, and $2.241 million for public education and training. OES indicates that it would incur minor and absorbable costs to update the State Emergency Plan (SEP) by January 1, 2018 because they currently make frequent updates pursuant to federal requirements. Background: California is the second most seismically active state in the country, behind Alaska. The Uniform California Earthquake Rupture Forecast (UCERF) forecasts a 99.7% chance of a magnitude 6.7 or larger earthquake in the state during the next 30 years. Some countries that experience high seismic activity have developed early earthquake warning (EEW) systems. Currently, Japan is the only country with a nationwide system, while Turkey, Mexico, Taiwan, and others have implemented local systems. Generally, these detection systems are based upon the finding that the first waves emanating from the epicenter of the earthquake, primary waves (P-waves), cause less damage but travel faster than the slower and damage-causing secondary waves (S-waves). This "single-station" approach can be used in conjunction with a "network approach" that combines signals from a regional seismic network of sensors that is capable of characterizing large and complex earthquakes as they evolve. EEW systems harness the sensor signals and provide a warning to the public and active users of the system before a shaking event. Depending on the distance from the epicenter, these systems can provide advanced warning time ranging from seconds to minutes, outside a 20-mile "blind zone" near an epicenter. This would allow for emergency shutdowns of critical infrastructure, such as trains, utilities, and industrial processes, and allow the general public to take protective action. AB 1346 (Gray) Page 2 of ? The California Geological Survey (CGS), within the Department of Conservation, currently operates over 5,000 seismic instruments that monitor ground movement around the state through the Strong Motion Instrumentation Program (SMIP). This is the largest portion of the broader California Integrated Seismic Network (CISN), which is comprised of 1,900 monitoring sites operated in partnership with the U.S. Geological Survey, Caltech, and the UC Berkeley Seismological Lab. Information from these instruments is used for research and planning purposes, and to produce "Shakemaps," which inform emergency responders where the worst shaking occurred within minutes of an earthquake. The U.S. Geological Survey is currently operating a small warning system pilot program based on this instrumentation network, and additional federal and foundation grants have been awarded to support the development of a local earthquake early warning system for the Los Angeles and Long Beach areas. Existing inoperative law requires OES, in collaboration with specified entities, to develop a comprehensive statewide EEWS that includes specified features through a public-private partnership. This provision is only operative if OES identified funding for the system from non-General Fund sources, including federal funds, revenue bonds, local funds, and private funds, by July 1, 2016. If the funding is not identified by that date, the requirement to establish an EEWS is repealed. Proposed Law: AB 1346, an urgency measure, would delete restrictions and conditions for funding and establishing an EEWS, and require OES to update the SEP every five years. Specifically, this bill would: Delete provisions that prohibit OES from identifying the General Fund as a funding source for the purpose of establishing the EEWS. Delete provisions that limit EEWS funding to federal funds, revenue bond funds, local funds, and private funds. Delete provisions indicating that the requirement to establish the EEWS is inoperative until OES identifies non-General Fund funding for that purpose AB 1346 (Gray) Page 3 of ? Delete provisions that repeal the statute on July 1, 2016 if non-General Fund funding for the EEWS is not identified by that date, and delete a requirement for OES to notify the Secretary of State that funding was not identified by that date. Require OES to update the SEP by January 1, 2018 and every five years thereafter, and require the SEP to be consistent with the Safeguarding California Plan, the California Climate Adaptation Planning Guide, and the internet website cal-adapt.org, as specified. Related Legislation: SB 135 (Padilla), Chap. 342/2013, requires OES to establish a statewide EEWS, as specified. This requirement is only operative after OES identifies non-General Fund funding for the system, and only if it does so by January 1, 2016. SB 494 (Hill), Chap. 799/2015, established the California Earthquake Safety Fund to be used for seismic safety and earthquake-related programs, including the EEWS, and extended the OES deadline for identifying non-General funds for the system until July 1, 2016. Staff Comments: Despite the restrictions in the recently repealed law that explicitly state that the requirement to establish an EEWS in consultation with stakeholders is inoperative until OES identifies sufficient funding, OES established a working group in 2013 to formally initiate the EEWS planning process. The working group released a "California Earthquake Early Warning System, Project Implementation Framework" in April of this year. The Implementation Framework describes how the EEWS could be implemented for public use by building upon the existing CISN and ShakeAlert systems, including a five-year implementation schedule that outlines governance needs, capital and operational needs, and system deployment and public outreach plans. The Framework calls for expanding the current sensor network by 646 EEW-capable seismic stations (from the current 469 stations), improving field telemetry for data communications, constructing AB 1346 (Gray) Page 4 of ? and upgrading central processing and notification centers, establishing public notification paths, raising awareness through public education efforts, and building in incremental performance improvements. The Project Implementation Framework report also includes a cost estimate that calls for one-time capital expenditures of $22 million for new and upgraded seismic stations, GPS equipment, telemetry, microwave nodes, and other overhead costs, one-time costs of $6 million to develop a public education and outreach program (including social science, public health, and risk communications research), and ongoing personnel and operating costs of $17 million annually. Staff notes that the 2016-17 Budget includes a one-time General Fund appropriation of $10 million to support the implementation of the California EEWS. According to the Budget Change Proposal (BCP) submitted by OES with the Governor's May Revision, $6.875 million will be used for capital costs, including seismic stations, GPS equipment, telemetry, and microwave nodes, and $3.125 million will be used for "recurring costs" of $2.241 million for public education and training, $150,000 for a financial strategy, and $734,000 for 4 permanent PY of OES staffing (even though the funding is one-time). The BCP cited the statutory requirement for OES to establish the EEWS as justification for the funding, but failed to note the following: (1) that OES is prohibited from identifying the General Fund as a funding source for purposes of establishing the EEWS; (2) that the requirement to establish the EEWS is inoperative until OES identifies sufficient non-General Fund resources for that purpose; and (3) that the statutory requirement was set to expire before the budget year began. Staff notes that the funding restrictions (limiting the EEWS funding sources to federal funds, revenue bond funds, local funds, and private funds), as well as the deadline to identify funds (both conditions that this bill seeks to delete), were amended into SB 135 by this Committee when it was released from the Suspense File and approved on May 23, 2013. -- END -- AB 1346 (Gray) Page 5 of ?