BILL NUMBER: SB 1028	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 17, 2016

INTRODUCED BY   Senator Hill

                        FEBRUARY 12, 2016

   An act to add  Sections 761.1 and 761.2 to  
  Chapter 6 (commencing with Section 8385)   to
Division 4.1 of  the Public Utilities Code, relating to public
utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1028, as amended, Hill. Electrical corporations:  local
publicly owned electric utilities: electrical cooperatives: 
wildfire mitigation plans.
   The California Constitution establishes the Public Utilities
Commission, authorizes the commission to establish rules for all
public utilities, subject to control by the Legislature, and
authorizes the Legislature, unlimited by the other provisions of the
California Constitution, to confer additional authority and
jurisdiction upon the commission that is cognate and germane to the
regulation of public utilities. The Public Utilities Act provides the
commission with broad authority over public utilities, including
electrical  corporations and local publicly owned electric
utilities or electrical cooperatives.   corporations,
while local publicly owned electric utilities and electrical
cooperatives are under the direction of   their governing
boards.  Existing law establishes requirements for equipment,
practices, and facilities for public utilities, including standards,
enforceable by the commission, for installation and maintenance of
wires or cables used to conduct electricity. Under existing law, a
violation of the Public Utilities Act or any order, decision, rule,
direction, demand, or requirement of the commission is a crime.
   This bill would require each electrical  corporation and
each   corporation,  local publicly owned electric
 utility or   utility, and  electrical
cooperative to  construct and maintain its electric plant
  construct, maintain, and operate its electrical lines
and equipment  in a manner that  would prevent it from
causing a catastrophic wildfire.   will minimize the
risk of catastrophic wildfire   posed by those electrical
lines and equipment.  The bill would require each electrical
corporation  and each local publicly owned electric utility
or electrical cooperative  to annually prepare a wildfire
mitigation plan. The bill would require each electrical corporation
to submit its plan to the commission  and each local publicly
owned electric utility or electrical cooperative to submit its plan
to its governing board  for approval, as specified. The bill
would require the commission  and the governing board
 to accept, accept provisionally, or reject the submitted
plan, as specified.  The bill would require the governing board
of a local publicly owned electric utility or electri   cal
cooperative to determine whether any portion of the geographical area
where the utility's overhead electrical lines and equipment are
located has a significant risk of catastrophic wildfire resulting
from those electrical lines and equipment and, if so, would require
the local publicly owned electric utility or electrical cooperative
to   annually present to the board for its approval 
 those wildfire mitigation measures the utility intends to
undertake to minimize the risk of its overhead electrical lines and
equipment causing a catastrophic wildfire.  By placing
additional duties upon local publicly owned electric utilities, the
bill would impose a state-mandated local program. Because a violation
of these provisions  by an electrical corporation  would be
a crime, the bill would impose a state-mandated local program. 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for specified reasons.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
 
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Chapter 6 (commencing with Section
8385) is added to Division 4.1 of the   Public Utilities
Code   , to read:  
      CHAPTER 6.  WILDFIRE MITIGATION


   8385.  (a) For purposes of this chapter, the following shall
apply:
   (1) "Compliance period" means a one-year period beginning
approximately with the start of the fall fire season for the service
territory of the electrical corporation, electrical cooperative, or
local publicly owned electric utility.
   (2) "Electrical cooperative" has the same meaning as defined in
Section 2776.
   (b) The commission shall supervise an electrical corporation's
compliance with the requirements of this chapter pursuant to the
Public Utilities Act (Part 1 (commencing with Section 201) of
Division 1). Nothing in this chapter provides the commission with
authority or jurisdiction over an electrical cooperative or local
publicly owned electrical corporation.
   8386.  (a) Each electrical corporation shall construct, maintain,
and operate its electrical lines and equipment in a manner that will
minimize the risk of catastrophic wildfire posed by those electrical
lines and equipment.
   (b) Each electrical corporation shall annually, on or before
February 1, prepare and submit a wildfire mitigation plan for the
next compliance period to the commission for acceptance. The wildfire
mitigation plan shall include:
   (1) An accounting of the responsibilities of persons responsible
for executing the plan.
   (2) The objectives of the plan.
   (3) A description of the preventive strategies and programs to be
adopted by the electrical corporation to minimize the risk of its
electrical lines and equipment causing catastrophic wildfires.
   (4) A description of the metrics the electrical corporation plans
to use to evaluate the plan's performance and the assumptions that
underlie the use of those metrics.
   (5) A discussion of how the application of previously identified
metrics to previous plan performances has informed the plan.
   (6) A description of the processes and procedures the electrical
corporation will use to do the following:
   (A) Monitor and audit the implementation of the plan.
   (B) Identify any deficiencies in the plan or the plan's
implementation and correct those deficiencies.
   (C) Monitor and audit the effectiveness of inspections, including
inspections performed by contractors, carried out under the plan.
   (7) Any other information that the commission may require.
   (c) The commission shall act expeditiously, but no later than 30
days before the beginning of the compliance period, to accept, accept
provisionally, or reject the electrical corporation's wildfire
mitigation plan.
   (1) Any provisional acceptance by the commission shall state all
of the following:
   (A) The period for which the provisional acceptance will be in
force.
   (B) The extent to which the wildfire mitigation plan has been
accepted.
   (C) Any limitations or conditions that shall apply during the
provisional acceptance period.
   (2) If the commission rejects the electrical corporation's
wildfire mitigation plan, the commission shall provide the electrical
corporation with an opportunity to resubmit a wildfire mitigation
plan within 30 days.
   (3) If the commission determines that an electrical corporation
will not be able to prepare an acceptable wildfire mitigation plan
before the beginning of the compliance period, the commission may
determine the contents of the electrical corporation's wildfire
mitigation plan.
   (d) The commission shall conduct or contract for audits to
determine if an electrical corporation is satisfactorily complying
with its accepted wildfire mitigation plan.
   (e) The commission may contract with an independent third party to
evaluate wildfire mitigation plans or to conduct audits and
inspections authorized by this section, and may require electrical
corporations to reimburse any related expenses.
   8387.  (a) Each local publicly owned electric utility and
electrical cooperative shall construct, maintain, and operate its
electrical lines and equipment in a manner that will minimize the
risk of catastrophic wildfire posed by those electrical lines and
equipment.
   (b) The governing board of the local publicly owned electric
utility or electrical cooperative shall determine, based on
historical fire data and local conditions, and in consultation with
the fire departments or other entities responsible for control of
wildfires within the geographical area where the utility's overhead
electrical lines and equipment are located, whether any portion of
that geographical area has a significant risk of catastrophic
wildfire resulting from those electrical lines and equipment.
   (c) If, pursuant to subdivision (b), the governing board
determines that there is a significant risk of catastrophic wildfire
resulting from the utility's electrical lines and equipment, the
local publicly owned electric utility or electrical cooperative shall
annually present to the board for its approval those wildfire
mitigation measures the utility intends to undertake to minimize the
risk of its overhead electrical lines and equipment causing a
catastrophic wildfire. 
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act or
because costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.  
  SECTION 1.    Section 761.1 is added to the Public
Utilities Code, to read:
   761.1.  (a) For purposes of this section, the following terms
shall have the following meanings:
   (1) "Electric plant" means "electric plant" as defined in Section
217.
   (2) "Compliance period" means a one-year period beginning
approximately with the start of the fall fire season.
   (b) Each electrical corporation shall construct and maintain its
electric plant in a manner that will prevent the electric plant from
causing a catastrophic wildfire.
   (c) Each electrical corporation shall annually, on or before April
1, prepare and submit a wildfire mitigation plan for the next
compliance period to the commission for acceptance. The wildfire
mitigation plan shall include:
   (1) An accounting of the responsibilities of persons responsible
for executing the plan.
   (2) The objectives of the plan.
   (3) A description of the preventative strategies and programs to
be adopted by the electrical corporation to minimize the risk of its
electric plant causing catastrophic wildfires.
   (4) A description of the metrics the electrical corporation plans
to use to evaluate the plan's performance and the assumptions that
underlie the use of those metrics.
   (5) A discussion of how the application of previously identified
metrics to previous plan performances has informed the plan.
   (6) A description of the processes and procedures the electrical
corporation will use to do the following:
   (A) Monitor and audit the implementation of the plan.
   (B) Identify any deficiencies in the plan or the plan's
implementation and correct those deficiencies.
   (C) Monitor and audit the effectiveness of inspections, including
inspections performed by contractors, carried out under the plan.
   (7) Any other information that the commission may require.
   (d) The commission shall act expeditiously, but no later than 30
days before the beginning of the compliance period, to accept, accept
provisionally, or reject the electrical corporation's wildfire
mitigation plan.
   (1) Any provisional acceptance by the commission shall state all
of the following:
   (A) The period for which the provisional acceptance will be in
force.
   (B) The extent to which the wildfire mitigation plan has been
accepted.
   (C) Any limitations or conditions that shall apply during the
provisional acceptance period.
   (2) If the commission rejects the electrical corporation's
wildfire mitigation plan, the commission shall provide the electrical
corporation with an opportunity to resubmit a wildfire mitigation
plan within 30 days.
   (3) If the commission determines that an electrical corporation
will not be able to prepare an acceptable wildfire mitigation plan
before the beginning of the compliance period, the commission may
determine the contents of the electrical corporation's wildfire
mitigation plan.
   (e) The commission shall conduct or contract for audits to
determine if an electrical corporation is satisfactorily complying
with its accepted wildfire mitigation plan.
   (f) The commission may contract with an independent third party to
evaluate wildfire mitigation plans or to conduct audits and
inspections authorized by this section, and may require electrical
corporations to reimburse any related expenses.  
  SEC. 2.    Section 761.2 is added to the Public
Utilities Code, to read:
   761.2.  (a) For purposes of this section, the following terms
shall have the following meanings:
   (1) "Electric plant" means "electric plant" as defined in Section
217.
   (2) "Compliance period" means a one-year period beginning
approximately with the start of the fall fire season.
   (b) Each local publicly owned electric utility or electrical
cooperative shall construct and maintain its electric plant in a
manner that will prevent the electric plant from causing a
catastrophic wildfire.
   (c) Each local publicly owned electric utility or electrical
cooperative shall annually prepare and submit a wildfire mitigation
plan for the next compliance period to its governing board for
acceptance.
   (d) Each governing board of a local publicly owned electric
utility or electrical cooperative shall act to accept, accept
provisionally, or reject the wildfire mitigation plan submitted by
the local publicly owned electric utility or electrical cooperative.
 
  SEC. 3.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution for certain costs that may be incurred by a local agency
or school district because, in that regard, this act creates a new
crime or infraction, eliminates a crime or infraction, or changes the
penalty for a crime or infraction, within the meaning of Section
17556 of the Government Code, or changes the definition of a crime
within the meaning of Section 6 of Article XIII B of the California
Constitution.
   However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.