BILL ANALYSIS Ó SB 1028 Page 1 SENATE THIRD READING SB 1028 (Hill) As Amended May 31, 2016 Majority vote SENATE VOTE: 39-0 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+-----------------------+-------------------| |Utilities |15-0 |Gatto, Patterson, | | | | |Burke, Chávez, Dahle, | | | | |Eggman, Cristina | | | | |Garcia, Eduardo | | | | |Garcia, Hadley, | | | | | | | | | | | | | | |Roger Hernández, | | | | |Obernolte, Quirk, | | | | |Santiago, Ting, | | | | |Williams | | | | | | | |----------------+-----+-----------------------+-------------------| |Appropriations |15-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, Bonta, | | | | |Chang, Eggman, Eduardo | | | | |Garcia, Jones, | | SB 1028 Page 2 | | |Obernolte, Quirk, | | | | |Santiago, Weber, Wood, | | | | |McCarty | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Requires electric utilities to construct, maintain and operate their electric lines and equipment in a manner to minimize the risk of catastrophic wildfire, and to prepare and submit wildfire mitigation plans. Specifically, this bill: 1)Requires electrical corporations regulated by the California Public Utilities Commission (CPUC) to develop and submit wildfire mitigation plans, and requires the CPUC to act expeditiously, as defined, on each plan submitted, and to conduct audits to ensure electrical corporations are satisfactorily complying with accepted plans. 2)Authorizes the CPUC to determine the content of an electrical corporation's wildfire mitigation plan if it determines an electrical corporation will not be able to prepare an acceptable one. 3)Requires publicly-owned utilities to file wildfire mitigation plans with their governing boards, at an interval to be determined by the board. Fire prevention plans prepared pursuant to the Federal Power Act and approved by federal government may be used to meet this requirement. FISCAL EFFECT: According to the Assembly Appropriations Committee: 1)Increases costs of approximately $620,000 (Utilities Reimbursement Account) to the CPUC for staffing, training, and SB 1028 Page 3 equipment costs. 2)Increases contracting costs of approximately $250,000 annually for three years for the CPUC to contract with a fire mitigation consultant. 3)Publicly-owned utility requirements will not result in reimbursable state-mandates because the utilities have the authority to charge fees and generate revenue to offset their costs. COMMENTS: 1)Purpose: Fire prevention efforts have traditionally focused on measures to prevent utilities' equipment and infrastructure from sparking fires. This bill, modeled after a similar effort in Victoria, Australia, is intended to provide a different approach to fire prevention by requiring a utility to prepare wildfire mitigation plans. 2)Background: In October of 2007, a series of large wildfires ignited and burned hundreds of thousands of acres in several counties in Southern California. The fires displaced nearly one million residents, destroyed thousands of homes, and took the lives of 17 people. The Witch Fire, one of the nation's most damaging, was ignited by power lines. More recently, the September 2015 Butte Fire burned more than 70,000 acres in Amador and Calaveras Counties, destroyed 818 structures, and caused two fatalities. This fire may have been caused by contact between an electric overhead line and a tree. SB 1028 Page 4 In 2008, the CPUC initiated a rulemaking proceeding to address fires related to utility poles. The CPUC's efforts have resulted in additional requirements on utilities to reduce the likelihood of fires started by or threatening utility facilities, including improved vegetation management. Utilities are now also required to develop electric utility fire prevention plans. The first phase also adopted fire hazard maps of high-risk areas in Southern California. In May 2015, the CPUC opened a new rulemaking proceeding to develop and adopt fire-threat maps and fire-safety regulations (R. 15-05-006). Analysis Prepared by: Darion Johnston / U. & C. / (916) 319-2083 FN: 0004093