BILL ANALYSIS Ó SB 1463 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1463 (Moorlach) - As Amended June 30, 2016 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Natural Resources | |9 - 0 | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the California Public Utilities Commission (PUC), in consultation with CALFIRE, to prioritize areas in which communities are subject to conditions that increase fire hazards associated with overhead utility facilities, as specified, when determining areas in which to require enhanced mitigation measures. Additionally, this bill requires the PUC to develop a definition of "enhanced mitigation measures" in a specified existing proceeding or other appropriate proceeding. SB 1463 Page 2 Lastly, this bill requires the PUC to describe how it incorporated the concerns of local governments and fire departments in determining the boundaries of areas in which to require enhanced mitigation. FISCAL EFFECT: 1)Increased costs of $582,000 (State Responsibility Area fund or General Fund) over two years for CALFIRE to assist in the design and development of the revised Fire Threat Map and the development of enhanced mitigation measures. 2)Minor costs to the PUC (Public Utilities Commission Utilities Reimbursement Account). COMMENTS: 1)Purpose. On May 26, 2016, the PUC approved a final version of Fire Map 1, a statewide fire-threat map to show the risk of power-line fires occurring and spreading throughout the state. According to the author, the City of Long Beach (LBC) was placed within the low-risk margins of the Utility Fire Threat Index even though 90% of the LBC falls within a Very High Fire Hazard Zone on the CALFIRE Fire Resources And Assessment Program (FRAP) map. The author concludes that the difference between Fire Map 1 and FRAP are the variables considered, including a measure that evaluates the historical cost and consequence of previous fires, housing and population density. This bill requires the PUC to prioritize areas in similar circumstances as the LBC to determine where to require enhanced mitigation measures. SB 1463 Page 3 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 seventeen people. Several of the worst fires in the state were caused by power lines. In response to the wildfires, in 2008, the PUC 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 regulations 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, CALFIRE 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. In May 2015, the PUC 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. CALFIRE 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, CALFIRE 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 SB 1463 Page 4 exception of the LBC, all parties supported the adoption of Fire Map 1. CALFIRE 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. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081