BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1463


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          SENATE THIRD READING


          SB  
          1463 (Moorlach)


          As Amended  June 30, 2016


          Majority vote


          SENATE VOTE:  38-0


           ------------------------------------------------------------------ 
          |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              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |9-0  |Williams, Jones,      |                    |








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          |Resources       |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Gomez, Hadley,        |                    |
          |                |     |Harper, McCarty,      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Mark Stone, Wood      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |15-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Chang, Eggman, |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Weber, Wood, McCarty  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          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 subject to conditions that increase fire  
          hazards associated with overhead utility facilities generally  
          and at specific locations.  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 subject to conditions that increase fire hazards  
            associated with overhead utility facilities generally and at  
            specific locations.
          2)Requires the CPUC to develop a definition of "enhanced  
            mitigation measures" in Rulemaking 15-05-006 (Filed May 7,  








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            2015), Order Instituting Rulemaking to Develop and Adopt  
            Fire-Threat Maps and Fire-Safety Regulations, or in another  
            appropriate proceeding, as specified.


          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. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill would have increased costs of $582,000 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.  In addition, this bill would have minor  
          costs to the CPUC. 


          COMMENTS:  


          1)Author's Statement:  According to the author, "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 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 [CPUC]  
            outline how Fire Map 2 will be created by taking into account  
            the concerns of local governments and fire departments."
          2)Background:  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  








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            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. 
          3)Rulemaking 15-05-006:  In May 2015, the CPUC closed R.  
            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 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 (City), all parties  
            supported the adoption of Fire Map 1.  


          4)City of Laguna Beach:  According to the City, the City has  
            been plagued by utility caused fires for years.  The City  
            expressed concerns with Fire Map 1 because, they argue, 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  
            parties agreed that the concerns expressed by the City can be  
            addressed during the development of Fire Map 2, including  
            adjustments to reflect historical fires and local knowledge.
            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 subject to conditions that  
            increase fire hazards associated with overhead utility  








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            facilities generally and at specific locations 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. 




          Analysis Prepared by:                                             
                          Edmond Cheung / U. & C. / (916) 319-2083  FN:  
          0004115