BILL ANALYSIS Ó SB 1463 Page 1 Date of Hearing: June 22, 2016 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Mike Gatto, Chair SB 1463 (Moorlach) - As Amended April 19, 2016 SENATE VOTE: 38-0 SUBJECT: Electrical lines: mitigation of wildfire risks SUMMARY: Requires the California Public Utilities Commission (CPUC), in consultation with the California Department of Forestry and Fire Protection (CAL FIRE), to prioritize areas in which communities are at high risk from the consequences of wildfire, and develop a definition of "enhanced mitigation measures" when determining areas susceptible to wildfires hazards posed by overhead electrical lines and equipment. Specifically, this bill: 1)Requires the CPUC, in consultation with CAL FIRE, in determining areas in which to require enhanced mitigation measures for wildfire hazards posed by overhead electrical lines and equipment, to prioritize areas in which communities are at high risk from the consequences of wildfires. 2)Requires the CPUC to develop a definition of "enhanced mitigation measures" in Rulemaking 15-05-006 (Filed May 7, 2015), Order Instituting Rulemaking to Develop and Adopt Fire-Threat Maps and Fire-Safety Regulations, or in another appropriate proceeding. SB 1463 Page 2 3)Requires any findings supporting a decision to approve the boundaries for specified areas to describe how the CPUC incorporated the concerns of local governments, fire departments, or both in determining those boundaries. EXISTING LAW: 1)Requires the CPUC to develop formal procedures to consider safety in a rate case application by an electrical corporation or gas corporation. Requires the procedures to include a means by which safety information acquired by the CPUC through monitoring, data tracking and analysis, accident investigations, and audits of an applicant's safety programs may inform the CPUC's consideration of the application. (Public Utilities Code Section 750) 2)Establishes the Very High Fire Hazard Severity Zones in order classify lands in the state in accordance with whether a very high fire hazard is present so that public officials are able to identify measures that will retard the rate of spread, and reduce the potential intensity, of uncontrolled fires that threaten to destroy resources, life, or property, and to require that those measures be taken. (Government Code Section 51175 et seq.) 3)Establishes the California Emergency Services Act and provides that the state recognizes its responsibility to mitigate the effects of natural, manmade, or war-caused emergencies that result in conditions of disaster or in extreme peril to life, property, and the resources of the state, and generally to protect the health and safety and preserve the lives and property of the people of the state. (Government Code Section 8550 et seq.) SB 1463 Page 3 4)Specifies the intent of the Legislature that the CPUC assess the consequences of its decisions, including economic effects, and assess and mitigate the impacts of its decision on customer, public, and employee safety, as part of each ratemaking, rulemaking, or other proceeding, and that this be accomplished using existing resources and within existing CPUC structures. Requires the CPUC to take all necessary and appropriate actions to assess the economic effects of its decisions and to assess and mitigate the impacts of its decisions on customer, public, and employee safety. (Public Utilities Code Section 321.1) FISCAL EFFECT: Unkown. COMMENTS: 1)Author's Statement: "On May 26, 2016, the CPUC approved the final version of Fire Map 1. The City of Laguna Beach was placed within the low-risk margins of the Utility Fire Threat Index. However, 90% of the City of Laguna Beach falls within a Very High Fire Hazard Severity Zone on the CAL FIRE Fire Resources and Assessment Program (FRAP) map which takes into account variables such as fire history, a measure that evaluates the cost and consequence of fire and housing and population density. These factors were left out of Fire Map 1's development. It is essential that the Public Utilities Commission outline how Fire Map 2 will be created by taking into account the concerns of local governments and fire departments." 2)Background: Every year, high temperatures fuel wildfires across the state. Such wildfires are perpetuated due to strong winds and difficult terrain, and pose a danger to people and property in high wildfire areas. For example, in 2007 wildfires spread throughout Southern California killing 17 people, destroying thousands of homes, and burning more than 780 square miles. SB 1463 Page 4 Wildfires can be caused by many factors, such as high temperature, excess vegetation, strong winds, arson, accidents, etc. However, several of the worst wildfires in the state were caused by power lines, including the Grass Valley Fire, the Malibu Canyon Fire, the Rice Fire, the Sedgewick Fire, and the Witch Fire. These five wildfires burned over 334 square miles of terrain. In response to the wildfires, in 2008 the CPUC initiated a rulemaking (R. 08-11-005) to consider and adopt regulations to reduce the fire hazards associated with overhead power lines and aerial communication facilities in close proximity to power lines. Many of the fire-safety regulation adopted in the rulemaking applied to high fire-threat areas, which are areas that had an elevated risk of power-line fires initiating and spreading rapidly. As part of the rulemaking, CAL FIRE was tasked with developing a statewide fire-threat map that would show in great detail the risk of power-line fires occurring and spreading rapidly throughout the state. The CAL FIRE maps would be used to established new High Fire-Threat District boundaries where stronger fire-safety regulations adopted in the rulemaking would apply. These stronger regulations include, rules requiring utilities to design, construct, and maintain their facilities for known local conditions, minimum and increased frequencies for patrol inspections, expanded vegetation clearance requirements, and requirements on investor owned utilities in Southern California to prepare and submit plants to reduce power-line fires during extreme fire weather. 3)Rulemaking 15-05-006: In May 2015, the CPUC closed Rulemaking 08-11-005 and opened a successor rulemaking (R. 15-05-006). The focus of R.15-05-006 is to develop and adopt a Fire Map to depict the physical and environmental conditions associated with an elevated potential for utility associated wildfires and to delineate the boundaries of a new High Fire-Threat District where stronger fire safety regulations are adopted. CAL FIRE SB 1463 Page 5 was tasked to develop Fire Map 1 which is to be used as the foundation for the development of Fire Map 2 to delineate High-Fire Threat District boundaries. In April 2016, CAL FIRE completed its development of Fire Map 1. Fire Map 1 was specifically designed to identify areas where environmental conditions posted an elevated hazard for the ignition and rapid spread of power-line fires. With the exception of the City of Laguna Beach, all parties supported the adoption of Fire Map 1. CAL FIRE and relevant parties agreed to address several issues as they develop Fire Map 2, including examining vegetation issues in low wind areas, include utility knowledge of local conditions, and investigate whether wind should be a factor in the definition of High Fire Threat Districts. 4)City of Laguna Beach: According to the City of Laguna Beach, the City has been plagued by utility caused fires for years. This includes five recent fires that involved power-line facilities, including a 15 acre fire in July 2015 caused by downed power lines. The City expressed concerns with Fire Map 1 because, they argue, contrary to experience and CAL FIRE mapping, the City is depicted on Fire Map 1 in a low fire-hazard area where, in fact, the City faces very high fire-risk. The City argues that Fire Map 1 depicts fire hazard using only a limited snap shot of the variables that should be considered in analysis of utility caused wildfires. This bill requires the CPUC, in consultation with CAL FIRE, in R.15-05-006, or another appropriate proceeding to prioritize areas in which communities are at high risk from the consequences of wildfires and develop a definition of "enhanced mitigation measures." This bill also requires any findings supporting a decision to approve the boundaries for specified areas to describe how the CPUC incorporated the concerns of local governments, fire departments, or both in determining those boundaries. The author may wish to consider an amendment to better align the SB 1463 Page 6 bill with R.15-05-006 by specifying that the CPUC shall prioritize those communities with additional factors and conditions that affect fire hazards associated with overhead utility facilities generally and at specific locations. 5)Development of Fire Map 2: Although power-line fires caused by power-lines in developed areas under fire-weather conditions can pose a grave risk to communities, the most catastrophic power-line fires in California history were caused in less developed areas and grew under several fire-weather conditions such as strong winds, low humidity, and elevated temperatures. The primary goal of the proceeding is to ensure that utility fires do not become mega fires, by addressing areas with abundant fuels and severe fire weather. Fire Map 1 was developed to serve as a foundation for developing Fire Map 2. The parties agreed that the concerns expressed by the City of Laguna Beach can be addressed during the development of Map 2, including adjustments to reflect historical fires and local knowledge. In addition, the Fire Map 1 proposed decision encouraged Southern California Edison to further engage with the City of Laguna Beach to explain fire-safety regulation and to discuss what additional measures may be warranted for the Laguna Beach Area. 6)Arguments in Support: According to the City of Laguna Beach, the sponsor of the bill, "The City of Laguna Beach has been plagued by well-documented, utility-caused fires for years and has consequently undertaken efforts to protect its residents and businesses through maximizing the use of underground utility-related infrastructure to avoid future fire-related disasters [?] The City is concerned that Fire Map 1 may be used by utilities to justify providing a less-safe level of service than would otherwise be required if the City remained in a high risk zone. It is critical that as this map is developed, appropriate factors are taken into consideration to ensure that a high level of safety is maintained in our communities." 7)Arguments in Opposition: According to the California Cable and SB 1463 Page 7 Telecommunications Association, "This bill fails to clearly limit the enhanced mitigation measures to potential 'wildfires' resulting from overhead electrical lines or equipment. This bill would result in prohibitive new costs and impede the deployment of broadband, create new safety risks in the local communities, and unfairly shift costs to all electric service ratepayers without providing any greater protection from wildfires." 8)Suggested Amendment: 761.2. (a) In determining areas in which to require enhanced mitigation measures for wildfire hazards posed by overhead electrical lines and equipment, the commission, in consultation with the Department of Forestry and Fire Protection, shall prioritize areas in which communitiesare at high risk from the consequences of wildfireshave additional factors and conditions that affect fire hazards associated with overhead utility facilities generally and at specific locations. Consistent with Section 321.1 of this chapter, tThe commission shall develop a definition of "enhanced mitigation measures" for purposes of this subdivision in Rulemaking 15-05-006 (Filed May 7, 2015), Order Instituting Rulemaking to Develop and Adopt Fire-Threat Maps and Fire-Safety Regulations, or in another appropriate proceeding. 9)Related Legislation: SB 1028 (Hill) of 2016: Requires CPUC regulated utilities to file wildfire mitigation plans and requires the CPUC to vote to approve and audit those plans. Requires publicly-owned utilities to file wildfire mitigation plans with their governing boards. Pending in Assembly Utilities and Commerce Committee. SB 1463 Page 8 REGISTERED SUPPORT / OPPOSITION: Support City of Laguna Beach (Sponsor) City of Aliso Viejo City of Irvine City of Malibu Orange County Fire Chiefs Association Rural County Representatives of California Opposition California Cable and Telecommunications Association Analysis Prepared by:Edmond Cheung / U. & C. / (916) 319-2083 SB 1463 Page 9