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SB-1003 Electricity: wildfire mitigation.(2023-2024)



Current Version: 08/28/24 - Amended Assembly

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SB1003:v93#DOCUMENT

Amended  IN  Assembly  August 28, 2024
Amended  IN  Assembly  August 19, 2024
Amended  IN  Assembly  June 20, 2024
Amended  IN  Assembly  June 03, 2024
Amended  IN  Senate  March 21, 2024
Amended  IN  Senate  March 07, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1003

Introduced by Senator Dodd

February 01, 2024

An act to amend Section 8386 of Sections 8557, 15472, 15473, 15475, 15475.1, 15475.2, and 15475.6 of, and to repeal Sections 15475.4 and 15475.5 of, the Government Code, to amend Sections 326.1, 326.2, 451.1, 8385, 8386, 8386.1, 8386.2, 8386.3, 8386.4, 8386.5, 8387, 8388.5, and 8389 of, and to repeal Section 326 of, the Public Utilities Code, and to amend Section 351 of the Water Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


SB 1003, as amended, Dodd. Electrical corporations: wildfire mitigation plans. Electricity: wildfire mitigation.
Existing law establishes the Wildfire Safety Division and requires the division to perform certain regulatory functions related to wildfire mitigation plans of electrical corporations. Existing law transferred all functions of the Wildfire Safety Division to the Office of Energy Infrastructure Safety effective July 1, 2021.
This bill would repeal the Wildfire Safety Division.
Existing law requires electrical corporations to construct, maintain, and operate their electrical lines and equipment in a manner that will minimize the risk of catastrophic wildfire posed by those electrical lines and equipment.
This bill would require those actions to take into account the time required to implement proposed mitigations and the amount of risk reduced for the cost and risk remaining.
Existing law requires each electrical corporation to annually prepare and submit a wildfire mitigation plan that covers at least a 3-year period and authorizes the office to allow for annual submissions to be updates to the last approved comprehensive wildfire mitigation plan, but requires the electrical corporation to submit a comprehensive wildfire mitigation plan at least once every 3 years for review. Existing law requires wildfire mitigation plans to include, among other things, a list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the electrical corporation’s service territory, and a description of the actions the electrical corporation will take to ensure its system will achieve the highest level of safety, reliability, and resiliency, as specified.
This bill instead would require each electrical corporation to submit a wildfire mitigation plan to the office for review at least once every 4 years. The bill would require each electrical corporation, beginning January 1, 2026, to submit a preliminary wildfire mitigation plan to the office at the earliest date of one year before the filing of its general rate case application or concurrent with the filing of its Risk Assessment Mitigation Phase application with the Public Utilities Commission (PUC). The bill would revise those wildfire mitigation plan requirements to, among other things, require the list to also include particular risks and risk drivers associated with the speed with which wildfire risk mitigation measures can and will be deployed by the electrical corporation, and require the presentation of certain cost-efficiency measures adopted by the PUC, as specified.
Existing law requires the office to approve or deny each wildfire mitigation plan and update submitted by an electrical corporation within 3 months of its submission. Existing law establishes procedures for the office to oversee compliance with an approved wildfire mitigation plan. Existing law requires the PUC to consider whether the cost of implementing an electrical corporation’s wildfire mitigation plan is just and reasonable in the electrical corporation’s general rate case application.
This bill instead would require the office to approve or deny a wildfire mitigation plan submitted by an electrical corporation within 9 months of its submission. The bill would, for a general rate case application filed after January 1, 2027, require an electrical corporation to file the wildfire mitigation plan approved by the office or, if the plan has not been approved by the office, the preliminary wildfire plan filed with the office, and any applicable decision from the office, with the general rate case application. The bill would require an electrical corporation, within 45 days of the PUC’s decision on whether the cost of implementing the electrical corporation’s wildfire mitigation plan is just and reasonable in the electrical corporation’s general rate case or any PUC order modifying that decision, to submit to the office a revised wildfire mitigation plan that conforms to the PUC’s revenue authorization. The bill would require the office to approve the revised wildfire mitigation plan within 2 months of submission and would require the electrical corporation to file the approved revised wildfire mitigation plan as an information-only submittal with the PUC. The bill would revise and recast provisions related to the oversight by the office in the implementation of, and the enforcement by the PUC of, the finally approved wildfire mitigation plan.
Existing law requires the PUC to establish an expedited utility distribution infrastructure undergrounding program for large electrical corporations. In order to participate in the program, existing law requires a large electrical corporation to submit to the office a distribution infrastructure undergrounding plan, as provided. Upon approval of the plan by the office, existing law requires the large electrical corporation to submit to the PUC an application requesting review and conditional approval of the plan’s costs and other specified information.
This bill would revise the provisions related to the expedited utility distribution infrastructure undergrounding program to, among other things, specify that the approval of a distribution infrastructure undergrounding plan is not a project for purposes of the California Environmental Quality Act, as specified.
Existing law requires the California Wildfire Safety Advisory Board to annually make recommendations to the office on various topics, including the appropriate scope and process for assessing the safety culture of an electrical corporation. Existing law requires the office to annually issue an analysis and recommendation to the PUC on the recommendations provided by the board. Existing law requires the PUC to annually adopt and approve, among other things, a process for the office to conduct annual safety culture assessments for each electrical corporation.
This bill would repeal those provisions.
Existing law requires local publicly owned electric utilities and electrical cooperatives to annually prepare and submit to the board, on or before July 1 of each year, wildfire mitigation plans.
This bill instead would require, after January 1, 2026, local publicly owned electric utilities and electrical cooperatives to prepare and submit to the board wildfire mitigation plans at least once every 4 years on a schedule determined by the board.
Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because a violation of a PUC action implementing the requirements of this bill 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 a specified reason.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires electrical corporations to construct, maintain, and operate their electrical lines and equipment in a manner that will minimize the risk of catastrophic wildfire posed by those electrical lines and equipment.

This bill would require those actions to take into account both the time required to implement the proposed mitigations and the amount of risk reduced for the cost and risk remaining.

Existing law requires electrical corporations to annually prepare and submit their wildfire mitigation plan to the Office of Energy Infrastructure Safety for review and approval. Existing law requires the wildfire mitigation plans to include, among other things, a description of preventive strategies and programs to minimize the risk of catastrophic wildfire, including consideration of dynamic climate change risk, a list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the electrical corporation’s service territory, and a description of where and how the electrical corporation considered undergrounding electrical distribution lines within those areas of its service territory with the highest wildfire risk, as specified.

This bill would revise those wildfire mitigation plan requirements to, among other things, require the preventive strategies and programs to also include consideration of their cost efficiencies, as specified, and the relative reduction of exposure to wildfire risk caused by variations in implementation timelines for the preventive strategies and programs, require the list to also include particular risks and risk drivers associated with the speed in which wildfire risk mitigation measures can and will be deployed by the electrical corporation, require the presentation of certain cost-efficient measures adopted by the commission, and require the electrical corporation to explain the reasonableness of the mitigation selected in the description of where and how the electrical corporation considered undergrounding electrical distribution lines, as specified.

Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.

To the extent that the commission would issue an order, decision, rule, direction, demand, or requirement to implement this bill, a violation of which 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 a specified reason.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 8557 of the Government Code is amended to read:

8557.
 (a) “State agency” means any department, division, independent establishment, or agency of the executive branch of the state government.
(b) “Political subdivision” includes any city, city and county, county, district, or other local governmental agency or public agency authorized by law.
(c) “Governing body” means the legislative body, trustees, or directors of a political subdivision.
(d) “Chief executive” means that individual authorized by law to act for the governing body of a political subdivision.
(e) “Disaster council” and “disaster service worker” have the meaning prescribed in Chapter 1 (commencing with Section 3201) of Part 1 of Division 4 of the Labor Code.
(f) “Public facility” means any facility of the state or a political subdivision, which facility is owned, operated, or maintained, or any combination thereof, through moneys derived by taxation or assessment.
(g) “Sudden and severe energy shortage” means a rapid, unforeseen shortage of energy, resulting from, but not limited to, events such as an embargo, sabotage, or natural disasters, and that has statewide, regional, or local impact.
(h) For purposes of this chapter, a “deenergization event” means a planned power outage, undertaken by an electrical corporation, as defined in Section 218 of the Public Utilities Code, to reduce the risk of wildfires caused by utility equipment, pursuant to Public Utilities Commission Resolution ESRB-8 and any decisions issued by the commission, the former Wildfire Safety Division, as set forth in former Section 326 of the Public Utilities Code, the Office of Energy Infrastructure Safety, or any other agency with authority over electrical corporations. A deenergization event begins when an electrical corporation provides notice to any state agency or political subdivision of the potential need to initiate a planned deenergization of the electrical grid, and ends when the electrical corporation restores electrical services to all deenergized customers, or when the electrical corporation cancels the deenergization event for some or all of its affected customers, and rescinds the notice of the potential need to initiate the deenergization event. A deenergization event does not include any planned outages in connection with regular utility work.

SEC. 2.

 Section 15472 of the Government Code is amended to read:

15472.
 For purposes of this part: part, the following definitions apply:
(a) “Commission” means the Public Utilities Commission.

(a)

(b) “Director” means the Director of the Office of Energy Infrastructure Safety.
(c) “Electrical corporation” has the same meaning as set forth in Section 218 of the Public Utilities Code.

(b)

(d) “Office” means Office of Energy Infrastructure Safety.

(c)“Regulated entity” means an entity that is regulated by the office.

SEC. 3.

 Section 15473 of the Government Code is amended to read:

15473.
 (a) There is in state government, within the Natural Resources Agency, the Office of Energy Infrastructure Safety. The office shall be under the supervision of the Director of the Office of Energy Infrastructure Safety, who shall have all rights and powers of a head of an office as provided by this code.
(b) The director shall be appointed by, and hold office at the pleasure of, the Governor. The appointment of the director is subject to confirmation by the Senate.
(1) The director shall receive an annual salary as set forth in Section 11552.
(2) The Governor may appoint a deputy director of the office. The deputy director shall hold office at the pleasure of the Governor.
(c) In carrying out the provisions of this part, the director may:
(1) Cooperate and contract with public and private agencies for the performance of acts, the rendition of services, and the affording of facilities as may be necessary and proper.
(2) Do other acts and things as may be necessary and incidental to the exercise of powers and the discharge of duties conferred or imposed by the provisions of this part, including, but not limited to, all of the following:
(A) Employ and prescribe duties of staff members as necessary to carry out the duties of the office.

(B)Employ and prescribe duties for staff designated as investigators. The personnel classification of the investigators shall be consistent with the technical qualifications needed to conduct the investigations.

(C)Designate staff as compliance officers or hearing examiners.

(D)

(B) Conduct investigations in any part of the state, compel information, and hold hearings, public meetings, or workshops as necessary to carry out the powers, duties, and responsibilities of the office, consistent with the exercise of its authority pursuant to this part, Section 326 of, part and Sections 8385 to 8389, inclusive, of, Chapter 6 (commencing with Section 8385) of Division 4.1 of the Public Utilities Code, or other statutes pertaining to the office.

(E)

(C) Adopt, amend, and repeal regulations as necessary to carry out the powers, duties, and responsibilities of the office, consistent with Section 15475. The adoption, amendment, or repeal of regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare.

(F)

(D) Require a regulated entity under the office’s jurisdiction to file an incident report with the office concerning any matter regulated by the office concerning a regulated entity’s infrastructure.
(d) The director and deputy director may administer oaths, certify to all official acts, serve warrants, and issue subpoenas for the attendance of witnesses and the production of papers, including computer modeling, programs, maps, geographic information systems data, and other digital records, waybills, books, accounts, documents, and testimony in any inquiry, investigation, or hearing in any part of the state.
(e) The director has the power of a head of a department pursuant to Article 2 (commencing with Section 11180) of Chapter 2 of Part 1.

SEC. 4.

 Section 15475 of the Government Code is amended to read:

15475.
 (a) The office is the successor to, and, effective July 1, 2021, is vested with, all of the duties, powers, and responsibilities of the Wildfire Safety Division established pursuant to Section 326 of the Public Utilities Code, including, but not limited to, the power to may compel information and conduct investigations. All laws prescribing the duties, powers, and responsibilities of the Wildfire Safety Division to which the office succeeds, together with all lawful rules and regulations established under those laws, are expressly continued in force. In carrying out its duties, powers, and responsibilities pursuant to this part and Section 326 of, and Sections 8385 to 8389, inclusive, of, Chapter 6 (commencing with Section 8385) of Division 4.1 of the Public Utilities Code, or other statutes pertaining to the office, the following powers, duties, and responsibilities vested in the office are acknowledged and confirmed:

(a)

(1) The office shall adopt, amend, or repeal emergency regulations to implement this part in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1). The adoption, amendment, or repeal of these regulations shall be deemed to be an emergency for the purpose of Section 11342.545 and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, or general welfare.

(b)

(2) The office may require information and data, including monitoring, verification of every regulated entity under the office’s jurisdiction and any business that is a subsidiary or affiliate of a regulated entity with respect to or that may influence any matter concerning wildfire safety, or that is necessary or useful for the office to perform and exercise its duties, powers, and responsibilities.

(c)

(3) The office shall provide for the confidentiality of records, the protection of proprietary information, and the protection of the reasonable expectation of customers of public utilities in the privacy of customer-specific records maintained by the regulated entity. entity under the office’s jurisdiction. As the successor entity to the former Wildfire Safety Division, the office shall continue to have access to and transfer any confidential information received by the former Wildfire Safety Division under the authority of the Public Utilities Commission to the office consistent with appropriate protections to maintain the confidentiality of that information. The office and the Public Utilities Commission shall agree upon provisions for the transfer of that information.

(d)

(4) The office may require the production, within this state, at a time and place as it designates, of any books, accounts, papers, records, including computer modeling, programs, and other digital records, kept by a regulated entity under the office’s jurisdiction in any office or place within this state, or, at its option, verified copies in lieu thereof, so that an examination thereof may be made by the office or under its direction to the extent the production of the records relates to an investigation that falls within the duties, powers, and responsibilities of the office.

(e)

(5) The office and persons employed by the office, may, at any time, inspect the accounts, books, papers, and documents, including any digital information, of any regulated entity. entity under the office’s jurisdiction. The office and any of its designees or employees authorized to administer oaths may examine under oath any officer, agent, or employee of a regulated entity under the office’s jurisdiction in relation to its business and affairs concerning matters within the duties, powers, and responsibilities of the office. This subdivision also applies to inspections of the accounts, books, papers, and documents of any business that is a subsidiary or affiliate, or a corporation that holds a controlling interest in a regulated entity that is subject to regulation by the office. under the office’s jurisdiction.

(f)

(6) Each regulated entity under the office’s jurisdiction shall cooperate fully with the office in any investigation conducted consistent with this section, regardless of pending litigation or other investigations, including, but not limited to, those that may be related to investigations conducted by the Public Utilities Commission, or the Department of Forestry and Fire Protection. The office and the Public Utilities Commission will cooperate and coordinate consistent with the memorandum of understanding required by Section 15476.

(g)

(7) Every regulated entity under the office’s jurisdiction shall furnish to the office, in the form and detail as the office prescribes, all tabulations, computations, and other information required for the office to perform its duties, powers, and responsibilities, and shall make specific answers to all questions submitted by the office. Every regulated entity under the office’s jurisdiction receiving from the office any blanks with directions to fill them shall answer fully and correctly each question propounded to it, and if it is unable to answer any question, it shall give a good and sufficient reason for that failure.

(h)

(8) Every regulated entity under the office’s jurisdiction shall furnish those reports to the office at the time and in the form as the office may require in which the regulated entity shall specifically answer all questions propounded by the office. The office may require any regulated entity under the office’s jurisdiction to file reports or periodic special reports, or both, concerning any matter about which the office is authorized by any law to inquire or to keep itself informed, or that it is required to enforce. All reports shall be under oath when required by the office.

(i)

(9) The office and persons employed by or acting on behalf of the office may enter and inspect regulated entity the property, records, and equipment of a regulated entity under the office’s jurisdiction at any time and anywhere within the state. Any member of the inspection party may utilize use whatever measurement and evaluation devices, including, but not limited to, photographic equipment and temperature measurement devices, that are determined to be necessary. Documentation of the inspection shall be the property of the office. This subdivision paragraph is not a limitation upon the authority of any agency to inspect pursuant to any other law.

(j)

(10) The office and persons employed by or acting on behalf of the office may inspect at any time and anywhere within the state, all regulated entities’ properties and equipment for purposes of carrying out the duties, powers, and responsibilities of the former Wildfire Safety Division as set forth in this part or Section 326 of, and Sections 8385 to 8389, inclusive, of, Chapter 6 (commencing with Section 8385) of Division 4.1 of the Public Utilities Code, which are vested in the office as the division’s successor, or other statute pertaining to the office.
(b) The office shall do all of the following:
(1) Oversee electrical corporations’ performance with wildfire safety pursuant to Chapter 6 (commencing with Section 8385) of Division 4.1 of the Public Utilities Code.
(2) Develop performance metrics to achieve maximum feasible risk reduction to be used to develop the wildfire mitigation plan and evaluate an electrical corporation’s performance relative to the implementation of that plan. For this purpose, “maximum feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, legal, social, and technological factors.
(3) Develop a field audit and performance oversight program to assess wildfire mitigation plan implementation by each electrical corporation.
(4) Support efforts to assess and analyze fire weather data and other atmospheric conditions that could lead to catastrophic wildfires and to reduce the likelihood and severity of wildfire incidents that could endanger the safety of persons, properties, and the environment within the state.
(5) Retain appropriate staff that includes experts in wildfire, weather, climate change, emergency response, and other relevant subject matters.
(6) Review, as necessary, in coordination with the California Wildfire Safety Advisory Board and necessary commission staff, safety requirements for electrical transmission and distribution infrastructure and infrastructure and equipment attached to that electrical infrastructure, and provide recommendations to the commission to address the dynamic risk of climate change and to mitigate wildfire risk.

SEC. 5.

 Section 15475.1 of the Government Code is amended to read:
15475.1.

(a)The office may determine that a regulated entity is not in compliance with any matter under the authority of the office. If necessary, the office may undertake an investigation into whether the regulated entity is noncompliant with its duties and responsibilities or has otherwise committed violations of any laws, regulations, or guidelines within the authority of the office.

(b)

15475.1.
 (a) The office’s primary objective is to ensure that regulated entities under the office’s jurisdiction are reducing wildfire risk and complying with energy infrastructure safety measures as required by law. adhering to their approved wildfire mitigation plans.
(b) The office is charged with assessing and evaluating electrical corporations’ performance of the mitigation activities and strategies outlined in the wildfire mitigation plans. The office shall assess whether electrical corporations deviate from their plans and evaluate the strength and quality of their performance relative to the plan.

SEC. 6.

 Section 15475.2 of the Government Code is amended to read:

15475.2.
 (a) (1) The office may issue a notice of defect or violation nonperformance to direct the regulated entity an electrical corporation to correct any defect or noncompliance nonperformance with the approved wildfire mitigation plan or failure to comply with any laws, regulations, or guidelines within the authority of the office. plan.
(2) The notice of nonperformance shall identify deficiencies and may prescribe corrective actions and timelines.
(3) The notice of nonperformance shall be posted on the office’s internet website and shall be served electronically on the electrical corporation.
(b) The office shall adopt guidelines pursuant to Section 15475.6 setting forth the policies and procedures for administering the duties of this section.

SEC. 7.

 Section 15475.4 of the Government Code is repealed.
15475.4.

(a)A compliance officer designated by the director may issue notices of defect or violation to any regulated entity. The notice of defect or violation shall allege the deficiency, violation, or failure to act. The notice of defect or violation shall be posted on the office’s internet website.

(b)The notice of defect or violation shall be served electronically on the individual designated by the regulated entity and shall inform the regulated entity so served that a hearing to take public comment or present additional information may be requested by the regulated entity within 30 days after the regulated entity has been served. The hearing shall be presided over by a designated hearing examiner. If a petition for hearing is not filed within the 30-day period, the amount determined and conditions set forth in the citation or notice of defect or violation become final at the expiration of the 30-day period. The hearing process shall be set forth in regulations adopted by the office.

(c)If a hearing is requested, after consideration of information presented, the hearing examiner shall issue a proposed determination. The public, stakeholders, and the regulated entity may provide comment on the proposed determination. After considering stakeholder, regulated entity, and public comment, the director may adopt, with or without revision, the proposed determination of the hearing examiner. The director may also reject the proposed determination of the hearing examiner.

(d)The office shall adopt regulations setting forth the policies and procedures for administering the duties of this section.

SEC. 8.

 Section 15475.5 of the Government Code is repealed.
15475.5.

(a)The decisions of the office are subject to judicial review in the superior court. The superior court shall give preference to cases seeking judicial review of decisions of the office over all civil actions or proceedings pending before the superior court. Appeals of the superior court’s decision of those cases shall be given preference in hearings before the court of appeal and the Supreme Court.

(b)Within 30 days after service of a decision issued by the office pursuant to Section 15475.4, a regulated entity or aggrieved stakeholder may file with the superior court a petition for writ of review. If no petition is filed within the time provided by this section, the determination of the office is not subject to review by any court or agency.

(c)The decision of the office shall be sustained by the court unless the court finds that (1) the office proceeded without, or in excess of its jurisdiction, (2) that, based exclusively upon review of the record before the office, the decision is not supported by substantial evidence in light of the whole record, or (3) that the office failed to proceed in a manner required by law.

SEC. 9.

 Section 15475.6 of the Government Code is amended to read:

15475.6.
 (a) (1) The office shall adopt guidelines setting forth the requirements, format, timing, and any other matters required to exercise its powers, perform its duties, and meet its responsibilities described in this part and Sections 326, 326.1, 326.1 and 326.2 of, and Chapter 6 (commencing with Section 8385) of Division 4.1 of of, the Public Utilities Code at a publicly noticed meeting during which the office presents proposed guidelines or guideline amendments and allows all interested stakeholders and members of the public an opportunity to comment. Not less than 10 days’ public notice shall be given of any meetings required by this section, before the office initially adopts guidelines. Substantive changes to the guidelines shall not be adopted without at least 30 days’ written notice to the public and opportunity to comment. Any guidelines adopted pursuant to this section are exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. Any duly adopted rules or guidelines in effect and utilized by the Wildfire Safety Division at the time of transition to the office shall remain valid and in effect as to the office pending the adoption of new or amended guidelines by the office pursuant to this section. Code.
(2) Before adopting guidelines, the office shall hold at least one public meeting or workshop and allow all interested stakeholders and members of the public an opportunity to comment. Not less than 10 days’ public notice shall be given of any meetings or workshops required by this section.
(b) Substantive changes to the guidelines shall not be adopted without at least 30 days’ written notice to the public and opportunity to comment. This notice period may run concurrently with the meeting notice requirements in subdivision (a). If a substantive change is made after the 30-day public comment period and before the adoption of the guidelines, the full text of the resulting guidelines, with the change clearly indicated, shall be made available to the public for comments for at least 10 days before the office adopts the guidelines.
(c) Any guidelines adopted pursuant to this section are exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. Any duly adopted rules or guidelines in effect and used by the former Wildfire Safety Division as of July 1, 2021, shall remain valid and in effect as to the office pending the adoption of new or amended guidelines by the office pursuant to this section.

SEC. 10.

 Section 326 of the Public Utilities Code is repealed.
326.

(a) By January 1, 2020, the commission shall establish the Wildfire Safety Division within the commission, located in Sacramento, California. The Wildfire Safety Division shall do all of the following:

(1)Oversee and enforce electrical corporations’ compliance with wildfire safety pursuant to Chapter 6 (commencing with Section 8385) of Division 4.1.

(2)In consultation with the California Wildfire Safety Advisory Board, develop and recommend to the commission performance metrics to achieve maximum feasible risk reduction to be used to develop the wildfire mitigation plan and evaluate an electrical corporation’s compliance with that plan. For this purpose, “maximum feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, legal, social, and technological factors.

(3)Develop a field audit program for wildfire mitigation plan compliance by each electrical corporation.

(4)Consult with the Office of Emergency Services in the office’s management and response to utility public safety power shutoff events and utility actions for compliance with public safety power shutoff program rules and regulations.

(5)Support efforts to assess and analyze fire weather data and other atmospheric conditions that could lead to catastrophic wildfires and to reduce the likelihood and severity of wildfire incidents that could endanger the safety of persons, properties, and the environment within the state.

(6)Retain appropriate staff that includes experts in wildfire, weather, climate change, emergency response, and other relevant subject matters.

(7)Review, as necessary, in coordination with the California Wildfire Safety Advisory Board and necessary commission staff, safety requirements for electrical transmission and distribution infrastructure and infrastructure and equipment attached to that electrical infrastructure, and provide recommendations to the commission to address the dynamic risk of climate change and to mitigate wildfire risk.

(b)Effective July 1, 2021, all functions of the Wildfire Safety Division shall be transferred to the Office of Energy Infrastructure Safety established pursuant to Section 15473 of the Government Code.

SEC. 11.

 Section 326.1 of the Public Utilities Code is amended to read:

326.1.
 (a) There is hereby established the California Wildfire Safety Advisory Board. The board shall advise the Wildfire Safety Division Office of Energy Infrastructure Safety established pursuant to Section 326. 15473 of the Government Code.
(b) The board shall consist of seven members. Five members shall be appointed by the Governor, one member shall be appointed by the Speaker of the Assembly, and one member shall be appointed by the Senate Committee on Rules. The members of the board shall serve four-year staggered terms. The initial members of the board shall be appointed by January 1, 2020. The Governor shall designate three of the initial members who shall serve two-year terms. Members of the board shall be selected from industry experts, academics, and persons with labor and workforce safety experience or other relevant qualifications and shall represent a cross-section of relevant expertise including, at all times, at least three members experienced in the safe operation, design, and engineering of electrical infrastructure.
(c) The board shall meet at least quarterly and alternate meeting locations between northern, central, and southern California, when feasible.
(d) Members of the board who are not salaried state service employees shall be eligible for reasonable compensation, not to exceed a per diem of four hundred dollars ($400), for attendance at board meetings.
(e) All reasonable costs incurred by the board, including staffing, travel at state travel reimbursement rates, and administrative costs, shall be reimbursed through the Public Utilities Commission Utilities Reimbursement Account provided for in Section 402 and shall be part of the budget of the commission. Office of Energy Infrastructure Safety. The commission office shall consult with the board in the preparation of this portion of the commission’s office’s proposed annual budget.
(f) Communications by the board, its staff, and individual members of the board are not subject to the commission’s ex parte rules set forth in Article 1 (commencing with Section 1701) of Chapter 9.

SEC. 12.

 Section 326.2 of the Public Utilities Code is amended to read:

326.2.
 The California Wildfire Safety Advisory Board shall do all both of the following:

(a)Develop and make recommendations to the Wildfire Safety Division related to wildfire safety and mitigation performance metrics.

(b)Develop and make recommendations related to the contents of wildfire mitigation plans pursuant to Chapter 6 (commencing with Section 8385) of Division 4.1.

(c)

(a) Review and provide comments and advisory opinions to each local publicly owned electric utility utilities and electrical cooperative cooperatives regarding the content and sufficiency of its their wildfire mitigation plan plans and recommendations on how to mitigate wildfire risk.

(d)

(b) Provide other advice and recommendations related to wildfire safety as requested by the Wildfire Safety Division. Office of Energy Infrastructure Safety.

SEC. 13.

 Section 451.1 of the Public Utilities Code is amended to read:

451.1.
 (a) For purposes of this section, the following terms have the following meanings:
(1) “Covered wildfire” has the same meaning as defined in Section 1701.8.
(2) “Wildfire Fund” means the Wildfire Fund created pursuant to Section 3284.
(b) When determining an application by an electrical corporation to recover costs and expenses arising from a covered wildfire, the commission shall allow cost recovery if the costs and expenses are just and reasonable. Costs and expenses arising from a covered wildfire are just and reasonable if the conduct of the electrical corporation related to the ignition was consistent with actions that a reasonable utility would have undertaken in good faith under similar circumstances, at the relevant point in time, and based on the information available to the electrical corporation at the relevant point in time. Reasonable conduct is not limited to the optimum practice, method, or act to the exclusion of others, but rather encompasses a spectrum of possible practices, methods, or acts consistent with utility system needs, the interest of the ratepayers, and the requirements of governmental agencies of competent jurisdiction. Costs and expenses in the application may be allocated for cost recovery in full or in part taking into account factors both within and beyond the utility’s control that may have exacerbated the costs and expenses, including humidity, temperature, and winds.
(c) An electrical corporation bears the burden to demonstrate, based on a preponderance of the evidence, that its conduct was reasonable pursuant to subdivision (b) unless it has a valid safety certification certificate pursuant to Section 8389 for the time period in which the covered wildfire that is the subject of the application ignited. If the electrical corporation has received a valid safety certification certificate for the time period in which the covered wildfire ignited, an electrical corporation’s conduct shall be deemed to have been reasonable pursuant to subdivision (b) unless a party to the proceeding creates a serious doubt as to the reasonableness of the electrical corporation’s conduct. Once serious doubt has been raised, the electrical corporation has the burden of dispelling that doubt and proving the conduct to have been reasonable.
(d) If an electrical corporation has drawn amounts from the Wildfire Fund for eligible claims for a covered wildfire, then the electrical corporation shall file an application to recover costs and expenses pursuant to Section 1701.8 after it has paid substantially all third-party liability claims arising from the covered wildfire.
(e) Notwithstanding Section 451, this section shall direct the commission’s evaluation of applications for recovery of costs and expenses arising from a covered wildfire. This section shall not apply to any other applications for cost recovery.
(f) This section shall not affect any civil action, appeal, or other action or proceeding.
(g) This section shall become inoperative if Section 3292 becomes inoperative pursuant to subdivision (k) of that section and this section shall be repealed on the first January 1 more than three months after this section becomes inoperative. The commission shall notify the Secretary of State as to whether this section becomes inoperative and is repealed.

SEC. 14.

 Section 8385 of the Public Utilities Code is amended to read:

8385.
 (a) For purposes of this chapter, the following definitions shall apply:

(1)“Compliance period” means a period of approximately one year.

(2)

(1) “Deenergization event” means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.

(3)

(2) “Electrical cooperative” has the same meaning as defined in Section 2776.
(3) “Electrical corporation” has the same meaning as defined in Section 218.
(4) “Large electrical corporation” has the same meaning as defined in Section 3280.
(5) “Local publicly owned electric utility” has the same meaning as defined in Section 224.3.

(5)

(6) “Office” means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.
(7) “Independent transmission owner” means an electrical corporation that owns a transmission asset that is not required by the commission to seek commission approval for general rate increases.
(b) Beginning July 1, 2021, the office shall supervise oversee an electrical corporation’s compliance adherence with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this This chapter affects does not affect the commission’s authority or jurisdiction over an electrical corporation, electrical cooperative, independent transmission owner, or local publicly owned electric utility.

SEC. 15.

 Section 8386 of the Public Utilities Code is amended to read:

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. equipment, taking into account both the time required to implement the proposed mitigations and the amount of risk reduced for the cost and risk remaining.
(b) Each electrical corporation shall annually prepare and submit a wildfire mitigation plan to the Wildfire Safety Division for review and approval. In calendar year 2020, and thereafter, the plan shall cover at least a three-year period. The division submit a wildfire mitigation plan to the office for review at least once every four years. The office shall establish a schedule for the submission of subsequent comprehensive wildfire mitigation plans, which may allow for the staggering of compliance evaluation and performance periods for each electrical corporation. In its discretion, the division may allow the annual submissions to be updates to the last approved comprehensive wildfire mitigation plan; provided, that each electrical corporation shall submit a comprehensive wildfire mitigation plan at least once every three years.
(c) (1) Beginning January 1, 2026, each electrical corporation shall submit a preliminary wildfire mitigation plan to the office at the earliest date of one year before the filing of its general rate case application or concurrent with the filing of its Risk Assessment Mitigation Phase application with the commission. The wildfire mitigation plan shall cover the same period as the general rate case period.
(2) Paragraph (1) does not apply to independent transmission owners.

(c)

(d) The wildfire mitigation plan shall include all of the following:
(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, including consideration of dynamic climate change risks.
(4) A description of the metrics the electrical corporation plans to use to evaluate the plan’s performance measure and track the implementation of the plan 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 electrical corporation’s protocols for disabling reclosers and deenergizing portions of the electrical distribution system that consider the associated impacts on public safety. As part of these protocols, each electrical corporation shall include protocols related to mitigating the public safety impacts of disabling reclosers and deenergizing portions of the electrical distribution system that consider the impacts on all of the following:
(A) Critical first responders.
(B) Health and communication infrastructure.
(C) Customers who receive medical baseline allowances pursuant to subdivision (c) of Section 739. The electrical corporation may deploy backup electrical resources or provide financial assistance for backup electrical resources to a customer receiving a medical baseline allowance for a customer who meets all of the following requirements:
(i) The customer relies on life-support equipment that operates on electricity to sustain life.
(ii) The customer demonstrates financial need, including through enrollment in the California Alternate Rates for Energy program continued pursuant to Section 739.1.
(iii) The customer is not eligible for backup electrical resources provided through medical services, medical insurance, or community resources.
(D) Subparagraph (C) shall not be construed as preventing does not prevent an electrical corporation from deploying backup electrical resources or providing financial assistance for backup electrical resources under any other authority.
(7) A description of the electrical corporation’s appropriate and feasible procedures for notifying a customer who may be impacted by the deenergizing of electrical lines, including procedures for those customers receiving medical baseline allowances as described in paragraph (6). The procedures shall direct notification to all public safety offices, critical first responders, health care facilities, and operators of telecommunications infrastructure with premises within the footprint of potential deenergization for a given event. The procedures shall comply with any orders of the commission regarding notifications of deenergization events.
(8) Identification of circuits that have frequently been deenergized pursuant to a deenergization event to mitigate the risk of wildfire and the measures taken, or planned to be taken, by the electrical corporation to reduce the need for, and impact of, future deenergization of those circuits, including, but not limited to, the estimated annual decline in circuit deenergization and deenergization impact on customers, and replacing, hardening, or undergrounding any portion of the circuit or of upstream transmission or distribution lines.
(9) Plans for vegetation management.
(10) Plans for inspections of the electrical corporation’s electrical infrastructure.
(11) A description of the electrical corporation’s protocols for the deenergization of the electrical corporation’s transmission infrastructure, for instances when the deenergization may impact customers who, or entities that, are dependent upon the infrastructure. The protocols shall comply with any order of the commission regarding deenergization events.
(12) A list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the electrical corporation’s service territory, including all relevant wildfire risk and risk mitigation information that is part of required by the commission’s Safety Model Assessment Proceeding (A.15-05-002, et al.) risk-based decisionmaking framework established in commission proceedings A.15-05-002 or R.20-07-013, or subsequent proceedings, and the Risk Assessment Mitigation Phase filings. The list shall include, but not be limited to, both all of the following:
(A) Risks and risk drivers associated with design, construction, operations, and maintenance of the electrical corporation’s equipment and facilities.
(B) Particular risks and risk drivers associated with topographic and climatological risk factors throughout the different parts of the electrical corporation’s service territory.
(C) Particular risks and risk drivers associated with the speed with which wildfire risk mitigation measures can and will be deployed by an electrical corporation within its service territory.
(13) A description of how the plan accounts for the wildfire risk identified in the electrical corporation’s Risk Assessment Mitigation Phase filing. filing, if applicable.
(14) A description of the actions the electrical corporation will take to ensure its system will achieve the highest level of safety, reliability, and resiliency, taking into account the cost and time required to achieve those benefits, and to ensure that its system is prepared for a major event, including hardening and modernizing its infrastructure with improved engineering, system design, standards, equipment, and facilities, such as undergrounding, insulating of distribution wires, and replacing poles. The electrical corporation shall present the cost-efficiency measures adopted by the commission, calculated consistent with the direction provided by the commission’s most recent risk-based decisionmaking framework proceeding for at least two reasonable mitigation alternatives for a given identified wildfire risk.
(15) A description of where and how the electrical corporation considered undergrounding electrical distribution lines within those areas of its service territory identified to have the highest wildfire risk in a commission fire threat map.
(16) A showing that the electrical corporation has an adequately sized and trained workforce to promptly restore service after a major event, taking into account employees of other utilities pursuant to mutual aid agreements and employees of entities that have entered into contracts with the electrical corporation.
(17) Identification of any geographic area in the electrical corporation’s service territory that is a higher wildfire threat than is currently identified in a commission fire threat map, and where the commission should consider expanding the high fire threat district based on new information or changes in the environment.
(18) A methodology for identifying and presenting enterprisewide safety risk and wildfire-related risk that is consistent with the methodology used by other electrical corporations unless the commission determines otherwise.
(19) A description of how the plan is consistent with the electrical corporation’s disaster and emergency preparedness plan prepared pursuant to Section 768.6, including both of the following:
(A) Plans to prepare for, and to restore service after, a wildfire, including workforce mobilization and prepositioning equipment and employees.
(B) Plans for community outreach and public awareness before, during, and after a wildfire, including language notification in English, Spanish, and the top three primary languages used in the state other than English or Spanish, as determined by the commission based on the United States Census data.
(20) A statement of how the electrical corporation will restore service after a wildfire.
(21) Protocols for compliance with requirements adopted by the commission regarding activities to support customers during and after a wildfire, outage reporting, support for low-income customers, billing adjustments, deposit waivers, extended payment plans, suspension of disconnection and nonpayment fees, repair processing and timing, access to electrical corporation representatives, and emergency communications.
(22) A description of the processes and procedures the electrical corporation will use to do all of 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 electrical line and equipment inspections, including inspections performed by contractors, carried out under the plan and other applicable statutes and commission rules.
(23) Any other information that the Wildfire Safety Division office may require.

(d)

(e) The Wildfire Safety Division office shall post all wildfire mitigation plans and annual updates on the commission’s internet website before July 1, 2021, and submitted pursuant to this section on the office’s internet website beginning July 1, 2021, for no less than two months before the division’s or office’s its decision regarding approval of the plan. The division or office shall accept comments on each plan from the public, other local and state agencies, and interested parties, and verify that the plan complies with all applicable rules, regulations, and standards, as appropriate.

SEC. 16.

 Section 8386.1 of the Public Utilities Code is amended to read:

8386.1.
 The commission shall may assess penalties on an electrical corporation that fails to substantially comply with its plan. In determining an appropriate amount of the penalty, the commission shall consider all of the following:
(a) The nature and severity of any noncompliance with the plan, noncompliance, including whether the noncompliance resulted in harm.
(b) The extent to which the commission or office has found that the electrical corporation complied failed to comply with its plans in prior years.
(c) Whether the electrical corporation self-reported the circumstances constituting noncompliance.
(d) Whether the electrical corporation implemented corrective actions with respect to the noncompliance.
(e) Whether the electrical corporation knew or in the exercise of reasonable care should have known of the circumstances constituting noncompliance.
(f) Whether the electrical corporation had previously engaged in conduct of a similar nature that caused significant property damage or injury.
(g) Any other factors established by the commission in a rulemaking proceeding, an order assessing penalties for noncompliance, consistent with this chapter.

SEC. 17.

 Section 8386.2 of the Public Utilities Code is amended to read:

8386.2.
 (a) The commission shall require a safety culture assessment of each electrical corporation to be conducted by an independent third-party evaluator. The commission shall set the schedule for each assessment, including updates to the assessment at least every five years. The electrical corporation shall not seek reimbursement for the costs of the assessment from ratepayers.
(b) The office shall conduct a wildfire-focused safety culture assessment of each electrical corporation at least once every two years.

SEC. 18.

 Section 8386.3 of the Public Utilities Code is amended to read:

8386.3.
 (a) (1) (A) The Wildfire Safety Division office shall approve or deny each wildfire mitigation plan and update submitted by an electrical corporation within three months of its submission, unless the division makes a written determination, which shall include reasons supporting the determination, that the three-month deadline cannot be met. Each electrical corporation’s approved plan shall remain in effect until the division approves the electrical corporation’s subsequent plan. The division within nine months of its submission.
(B) Notwithstanding subparagraph (A), for an electrical corporation that is not an independent transmission owner, the wildfire mitigation plan is subject to approval pursuant to Section 8386.4.
(2) The office shall consult with the Office of the State Fire Marshal on the review of each wildfire mitigation plan and update. In
(3) In rendering its decision, the division office shall consider comments submitted pursuant to subdivision (d) (e) of Section 8386. Before approval, the division office may require modifications of the plan. After approval by the division, the commission shall ratify the action of the division.
(4) The office may extend any deadlines established pursuant to this subdivision. The decision to extend deadlines shall be made in writing and include reasons supporting the determination that the deadline cannot be met.
(5) An approval of a plan pursuant to this section is not a project as defined in Division 13 (commencing with Section 21000) of the Public Resources Code, provided that environmental review otherwise required by Division 13 (commencing with Section 21000) of the Public Resources Code occurs before any project approval that would authorize physical changes being made to the environment.

(b)The Wildfire Safety Division’s approval of a plan is not a defense to any enforcement action by the office or for a violation of a commission enforcement action, decision, order, or rule.

(c)

(b) Following approval of a wildfire mitigation plan, the Wildfire Safety Division plan pursuant to subdivision (a) of this section or Section 8386.4, the office shall oversee compliance with the implementation of the plan consistent with all of the following:
(1) Three months after the end of an electrical corporation’s initial compliance period, as established by the Wildfire Safety Division pursuant to subdivision (b) of Section 8386, and annually On or before April 1, 2026, and on or before each April 1 thereafter, each electrical corporation shall file with the division a office a self-evaluation report addressing the electrical corporation’s compliance with the implementation of its approved plan during the prior calendar year.
(2) (A) Before On or before March 1, 2021, and on or before each March 1 thereafter, the Wildfire Safety Division, office, in consultation with the Office of the State Fire Marshal, shall make available a list of qualified independent evaluators with experience in assessing the safe operation of electrical infrastructure.
(B) (i) Each electrical corporation shall engage an independent evaluator listed pursuant to subparagraph (A) to review and assess the electrical corporation’s compliance with implementation of its plan. approved plan. The engaged independent evaluator shall consult with, and operate under the direction of, the office. The independent evaluator shall issue a report on or before July 1 of each year in which a report required by paragraph (1) is filed. As a part of the independent evaluator’s report, the independent evaluator shall determine whether the electrical corporation failed to fund any activities included in its plan.
(ii) The Wildfire Safety Division office shall consider the independent evaluator’s findings, but the independent evaluator’s findings are not binding on the division, except as otherwise specified. office.

(iii)The independent evaluator’s findings shall be used by the Wildfire Safety Division to carry out its obligations under Article 1 (commencing with Section 451) of Chapter 3 of Part 1 of Division 1.

(iv)The independent evaluator’s findings do not apply to events that occurred before the initial plan is approved for the electrical corporation.

(3) The commission shall authorize the electrical corporation to recover in rates the costs of the independent evaluator.
(4) The Wildfire Safety Division office shall complete its compliance performance review of an electrical corporation’s implementation of its plan within 18 months after the submission of the electrical corporation’s compliance self-evaluation report.
(5) (A) An electrical corporation shall notify the Wildfire Safety Division, within one month after it completes a substantial portion of the vegetation management requirements in its wildfire mitigation plan, of the completion. Upon receiving the notice from the electrical corporation, the division shall, Following the end of the performance period, the office may, consistent with its authority pursuant to paragraph (1) of subdivision (a) of Section 326, promptly audit the (b) of Section 15475 of the Government Code, conduct audits of the vegetation management work performed by, or on behalf of, the electrical corporation. The initial audit shall specify any failure of identify deficiencies in the electrical corporation to fully comply with corporation’s implementation of the vegetation management requirements commitments in the wildfire mitigation plan. The division office shall provide the initial audit report to the electrical corporation. The electrical corporation shall have a reasonable time, as determined by the division, to correct and eliminate office, to respond to and develop corrective actions for any deficiency specified in the audit. initial audit report.
(B) The Wildfire Safety Division office may engage its own independent evaluator, auditor, who shall be a certified arborist and shall have any other qualifications determined appropriate by the division, office, to conduct the audit specified in subparagraph (A). The independent evaluator auditor shall consult with, and operate under the direction of, the division. office.

(C)Within one year of the expiration of the time period for an electrical corporation to correct and eliminate any deficiency identified in the audit, the independent evaluator shall issue a report to the electrical corporation, the Wildfire Safety Division, and the Safety and Enforcement Division of the commission specifically describing any failure of the electrical corporation to substantially comply with the substantial portion of the vegetation management requirements in the electrical corporation’s wildfire mitigation plan. The report shall be made publicly available. The Wildfire Safety Division shall include the report in its compliance review prepared pursuant to paragraph (4).

(C) Following the expiration of the time period for an electrical corporation to respond to and develop corrective actions for any deficiency identified in the initial audit, the office or the independent auditor shall issue an updated audit report to the electrical corporation identifying any outstanding deficiency in the electrical corporation’s implementation or planned corrective actions relative to its vegetation management commitments in the electrical corporation’s wildfire mitigation plan. The report shall be made publicly available. The office shall include, if available, the report in its performance review prepared pursuant to paragraph (4).
(6) Each electrical corporation shall reimburse the Wildfire Safety Division office for the division’s office’s costs to implement this section with respect to that electrical corporation.

(d)

(c) (1) An electrical corporation shall not divert revenues authorized by the commission to implement the approved wildfire mitigation plan to any programs or activities or investments outside of the plan. plan approved pursuant to Section 8386.4. An electrical corporation shall notify the commission by advice letter of both of the following:
(A) The date when the electrical corporation projects that it will have spent, or incurred obligations to spend, its entire annual revenue requirement for vegetation management in its wildfire mitigation plan not less than 30 days before that date.
(B) A detailed summary of the electrical corporation’s workforce development efforts completed in compliance with the Office of Federal Contract Compliance Programs, including, but not limited to, all of the following:
(i) A description of and data on the extent to which the electrical corporation advertises job openings to members of California Conservation Corps crews and members of community conservation corps, as defined in Section 14507.5 of the Public Resources Code.
(ii) A description of and data on the extent to which the electrical corporation, in seeking to develop potential members of its workforce, has links to or otherwise works with community-based or other organizations that work with current members of California Conservation Corps crews and current members of community conservation corps, as defined in Section 14507.5 of the Public Resources Code, and formerly incarcerated conservation crew members.
(iii) A description of the extent to which the electrical corporation supports skill-development efforts that would assist current and former members of California Conservation Corps crews, members of community conservation corps, as defined in Section 14507.5 of the Public Resources Code, formerly incarcerated conservation crew members, and others with similar skillsets in acquiring skills needed to complete work on or near electrical facilities. Nothing in this clause alters This clause does not alter the requirements imposed on an employer pursuant to Section 12952 of the Government Code.
(2) An electrical corporation shall provide to the office a copy of the advice letter pursuant to paragraph (1) at the same time the advice letter is submitted to the commission.
(d) This section does not impose any liability on the office regarding the performance of its duties.
(e) The commission shall not allow a large electrical corporation to include in its equity rate base its share, as determined pursuant to the Wildfire Fund allocation metric specified in Section 3280, of the first five billion dollars ($5,000,000,000) expended in aggregate by large electrical corporations on fire risk mitigation capital expenditures included in the electrical corporations’ approved wildfire mitigation plans. An electrical corporation’s share of the fire risk mitigation capital expenditures and the debt financing costs of these fire risk mitigation capital expenditures may be financed through a financing order pursuant to Section 850.1 subject to the requirements of that financing order.

(f)This section does not impose any liability on the Wildfire Safety Division regarding the performance of its duties.

SEC. 19.

 Section 8386.4 of the Public Utilities Code is amended to read:
8386.4.

(a)At the time of approval of an electrical corporation’s wildfire mitigation plan, the commission shall authorize the electrical corporation to establish a memorandum account to track costs incurred to implement the plan.

(b)

8386.4.
 (a) (1) The commission shall consider whether the cost of implementing each electrical corporation’s plan is just and reasonable in its general rate case application. Each proceeding and shall approve the costs for wildfire risk mitigation programs and activities it determines are just and reasonable.
(2) In the commission’s discretion, each electrical corporation shall may establish a memorandum account to track costs incurred for fire wildfire risk mitigation that are not otherwise covered unforeseen and incremental to the wildfire risk mitigation programs and activities authorized in the electrical corporation’s revenue requirements. The commission shall review the costs in the memorandum accounts and disallow recovery of those costs the commission deems unreasonable.

(2)In lieu of paragraph (1), an electrical corporation may elect to file an application for recovery of the cost of implementing its plan as accounted in the memorandum account at the conclusion of the time period covered by the plan. If the electrical corporation files an application for cost recovery pursuant to this paragraph, the commission shall issue a proposed decision within 12 months of the filing date of the application unless the commission issues an order extending the deadline upon a finding of good cause.

(3) The chief executive officer of an electrical corporation shall certify in each general rate case application that the electrical corporation has not received authorization from the commission to recover the costs in a previous proceeding, including wildfire cost recovery applications.
(b) For a general rate case application filed after January 1, 2027, all of the following apply:
(1) The electrical corporation shall file its preliminary wildfire mitigation plan approved pursuant to subdivision (a) of Section 8386.3, or, if no plan has been approved by the office, the wildfire mitigation plan filed pursuant to subdivision (c) of Section 8386, and any applicable decision from the office, with the general rate case application and shall include testimony establishing the forecast of costs necessary to implement the programs and activities in the plan.
(2) The commission shall consult with the office regarding the programs and activities in the plan in rendering its decision pursuant to paragraph (1) of subdivision (a). The commission’s decision shall constitute approval of the revenue requirement necessary to implement the electrical corporation’s wildfire mitigation plan.
(3) Within 45 days of the commission’s decision rendered pursuant to paragraph (1) of subdivision (a) or any commission order modifying that decision, the electrical corporation shall submit a revised wildfire mitigation plan to the office that conforms to the commission’s revenue authorization. The office shall review and either approve or request modifications to the revised wildfire mitigation plan submitted in accordance with the revenue authorized pursuant to paragraph (1) of subdivision (a). The office shall approve the revised wildfire mitigation plan within two months of submission. After approval by the office, the electrical corporation shall file the approved revised wildfire mitigation plan as an information-only submittal with the commission.

(4)

(c) Nothing in this section shall be interpreted as a restriction or limitation on Article 1 (commencing with Section 451) of Chapter 3 of Part 1 of Division 1.

SEC. 20.

 Section 8386.5 of the Public Utilities Code is amended to read:

8386.5.
 The commission, the office, and the Department of Forestry and Fire Protection shall enter into a memorandum of understanding to cooperatively develop consistent approaches and share data related to fire prevention, safety, vegetation management, and energy distribution systems. The commission commission, the office, and the department shall share results from various fire prevention activities, including relevant inspections and fire ignition data.

SEC. 21.

 Section 8387 of the Public Utilities Code is amended to read:

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 wildfire posed by those electrical lines and equipment.
(b) (1) The local publicly owned electric utility or electrical cooperative shall, before January 1, 2020, prepare a wildfire mitigation plan. After January 1, 2020, 2026, a local publicly owned electric utility or electrical cooperative shall prepare a wildfire mitigation plan annually and shall submit the plan to the California Wildfire Safety Advisory Board on or before July 1 of that calendar year. Each local publicly owned electric utility and electrical cooperative shall update its plan annually and submit the update to the California Wildfire Safety Advisory Board by July 1 of each year. At least once every three years, the submission shall be a comprehensive revision of the plan. at least once every four years on a schedule determined by the California Wildfire Safety Advisory Board.
(2) The wildfire mitigation plan shall consider as necessary, at minimum, all of the following:
(A) An accounting of the responsibilities of persons responsible for executing the plan.
(B) The objectives of the wildfire mitigation plan.
(C) A description of the preventive strategies and programs to be adopted by the local publicly owned electric utility or electrical cooperative to minimize the risk of its electrical lines and equipment causing catastrophic wildfires, including consideration of dynamic climate change risks.
(D) A description of the metrics the local publicly owned electric utility or electrical cooperative plans to use to evaluate the wildfire mitigation plan’s performance measure and track the implementation of the plan and the assumptions that underlie the use of those metrics.
(E) A discussion of how the application of previously identified metrics to previous wildfire mitigation plan performances has informed the wildfire mitigation plan.
(F) Protocols for disabling reclosers and deenergizing portions of the electrical distribution system that consider the associated impacts on public safety, as well as and protocols related to mitigating the public safety impacts of those protocols, including impacts on critical first responders and on health and communication infrastructure.
(G) Appropriate and feasible procedures for notifying a customer who may be impacted by the deenergizing of electrical lines. The procedures shall direct notification to all public safety offices, critical first responders, health care facilities, and operators of telecommunications infrastructure with premises within the footprint of potential deenergization for a given event.
(H) Plans for vegetation management.
(I) Plans for inspections of the local publicly owned electric utility’s or electrical cooperative’s electrical infrastructure.
(J) A list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the local publicly owned electric utility’s or electrical cooperative’s service territory. The list shall include, but not be limited to, both of the following:
(i) Risks and risk drivers associated with design, construction, operation, and maintenance of the local publicly owned electric utility’s or electrical cooperative’s equipment and facilities.
(ii) Particular risks and risk drivers associated with topographic and climatological risk factors throughout the different parts of the local publicly owned electric utility’s or electrical cooperative’s service territory.
(K) Identification of any geographic area in the local publicly owned electric utility’s or electrical cooperative’s service territory that is a higher wildfire threat than is identified in a commission fire threat map, and identification of where the commission should expand a high fire-threat district based on new information or changes to the environment.
(L) A methodology for identifying and presenting enterprisewide safety risk and wildfire-related risk.
(M) A statement of how the local publicly owned electric utility or electrical cooperative will restore service after a wildfire.
(N) A description of the processes and procedures the local publicly owned electric utility or electrical cooperative shall use to do all of the following:
(i) Monitor and audit the implementation of the wildfire mitigation plan.
(ii) Identify any deficiencies in the wildfire mitigation plan or its implementation, and correct those deficiencies.
(iii) Monitor and audit the effectiveness of electrical line and equipment inspections, including inspections performed by contractors, that are carried out under the plan, other applicable statutes, or commission rules.
(3) The In each year it is required to submit a plan, the local publicly owned electric utility or electrical cooperative shall, on or before January 1, 2020, and not less than annually thereafter, shall present its wildfire mitigation plan in an appropriately noticed public meeting. The local publicly owned electric utility or electrical cooperative shall accept comments on its wildfire mitigation plan from the public, other local and state agencies, and interested parties, and shall verify that the wildfire mitigation plan complies with all applicable rules, regulations, and standards, as appropriate.
(c) The local publicly owned electric utility or electrical cooperative shall contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness of its wildfire mitigation plan. The independent evaluator shall issue a report that shall be made available on the internet website of the local publicly owned electric utility or electrical cooperative, and shall present the report at a public meeting of the local publicly owned electric utility’s or electrical cooperative’s governing board.

SEC. 22.

 Section 8388.5 of the Public Utilities Code is amended to read:

8388.5.
 (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.
(b) Only a large electrical corporation may participate in the program.
(c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components:
(1) A 10-year plan for undergrounding distribution infrastructure.
(2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.
(3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan.
(4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan.
(5) A plan for utility and contractor workforce development.
(6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.
(d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:
(1) Publish the plan for public comment.
(2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan or to modify and resubmit the plan.
(e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plan’s costs and including all of the following:
(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.
(B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporation’s historical undergrounding costs.
(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.
(D) A strategy for achieving cost reductions over time.
(2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).
(3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporation’s general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.
(4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.
(5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.
(6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.
(f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:
(1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.
(2) Include ongoing work plans and progress in annual wildfire mitigation plan filings.
(3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporation’s compliance with adherence to its plan and submit a report with the office each December 1 over the course of the plan.
(g) (1) In reviewing and assessing the large electrical corporation’s compliance with adherence to its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporation’s progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitor’s report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan.
(2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitor’s report.
(3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.
(h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.
(i) (1) The office shall consider the independent monitor’s report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission. provide an assessment to the commission for consideration.
(2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.
(j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the program’s costs on the large electrical corporation’s ratepayers.
(k) An approval of a plan pursuant to this section is not a project as defined in Division 13 (commencing with Section 21000) of the Public Resources Code, provided that environmental review otherwise required by Division 13 (commencing with Section 21000) of the Public Resources Code occurs before any project approval that would authorize physical changes being made to the environment.

SEC. 23.

 Section 8389 of the Public Utilities Code is amended to read:
8389.

(a)For purposes of this section, the following definitions apply:

(1)“Board” means the California Wildfire Safety Advisory Board established pursuant to Section 326.1.

(2)“Division” means the Wildfire Safety Division established pursuant to Section 326.

(3)“Office” means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.

(b)By June 30, 2020, and annually thereafter, the board shall make recommendations to the division on all of the following:

(1)Appropriate performance metrics and processes for determining an electrical corporation’s compliance with its approved wildfire mitigation plan.

(2)Appropriate requirements in addition to the requirements set forth in Section 8386 for the wildfire mitigation plan.

(3)The appropriate scope and process for assessing the safety culture of an electrical corporation.

(c)By October 31, 2020, and annually thereafter, the division shall issue an analysis and recommendation to the commission on the recommendations provided by the board pursuant to subdivision (b).

(d)By December 1, 2020, and annually thereafter, the commission, after consultation with the division, shall adopt and approve all of the following:

(1)Performance metrics for electrical corporations.

(2)Additional requirements for wildfire mitigation plans.

(3)A wildfire mitigation plan compliance process.

(4)A process for the division to conduct annual safety culture assessments for each electrical corporation.

(e)

8389.
 (a) The Director of the Office of Energy Infrastructure Safety shall issue a safety certification certificate to an electrical corporation if the electrical corporation provides documentation of the following:
(1) The electrical corporation has an approved wildfire mitigation plan. plan pursuant to subdivision (a) of Section 8386.3.
(2) The electrical corporation is in good standing, which can be satisfied by the electrical corporation having has agreed to implement the findings recommendations of its most recent safety culture assessment assessments performed pursuant to Section 8386.2 and paragraph (4) of subdivision (d), 8386.2, if applicable.
(3) The electrical corporation has established a safety committee of its board of directors composed of members with relevant safety experience.
(4) The electrical corporation has established an executive incentive compensation structure approved by the division office and structured to promote safety as a priority and to ensure public safety and utility financial stability with performance metrics, including incentive compensation based on meeting performance metrics that are measurable and enforceable, for all executive officers, as defined in Section 451.5. This may include tying 100 percent of incentive compensation to safety performance and denying all incentive compensation in the event the electrical corporation causes a catastrophic wildfire that results in one or more fatalities.
(5) The electrical corporation has established board-of-director-level reporting to the commission and office on safety issues.
(6) (A) The electrical corporation has established a compensation structure for any new or amended contracts contracts, plans, or arrangements, whether written or unwritten, for executive officers, as defined in Section 451.5, that is based on the following principles:
(i) (I) Strict limits on guaranteed cash compensation, with the primary portion of the executive officers’ compensation based on achievement of objective performance metrics.
(II) No guaranteed monetary incentives in the compensation structure.
(ii) It satisfies the compensation principles identified in paragraph (4).
(iii) A long-term structure that provides a significant portion of compensation, which may take the form of grants of the electrical corporation’s stock, based on the electrical corporation’s long-term performance and value. This compensation shall be held or deferred for a period of at least three years.
(iv) Minimization or elimination of indirect or ancillary compensation that is not aligned with shareholder and taxpayer interest in the electrical corporation.
(B) The division office shall approve the compensation structure of an electrical corporation if it determines the structure meets the principles set forth in subparagraph (A) and paragraph (4).
(C) It is the intent of the Legislature, in enacting this paragraph and paragraph (4), that any approved bankruptcy reorganization plan of an electrical corporation should, in regards to compensation for executive officers of the electrical corporation, comply with the requirements of those paragraphs.
(7) The electrical corporation is implementing the mitigation strategies in its approved wildfire mitigation plan. The electrical corporation shall file a notification of implementation of its wildfire mitigation plan with the office and an information-only submittal with the commission on a quarterly basis that details the implementation of both its approved wildfire mitigation plan and recommendations of the most recent safety culture assessments by the commission and office, and a statement of the recommendations of the board of directors safety committee meetings that occurred during the quarter. The notification and information-only submittal shall also summarize the implementation of the safety committee recommendations from the electrical corporation’s previous notification and submission. If the office has reason to doubt the veracity of the statements contained in the notification or information-only submittal, it shall perform an audit of the issue of concern. The electrical corporation shall provide a copy of the information-only submittal to the office.

(f)(1)The office shall issue an initial safety certification within 30 days of receipt of a request for that certification by an electrical corporation if the electrical corporation provides documentation that it is meeting the requirements set forth in paragraphs (1), (2), (3), and (5) of subdivision (e). A safety certification

(b) (1) A certificate shall be valid for the 12 consecutive months following the issuance of the certification. certificate.
(2) (A) Before the expiration of a certification, certificate, an electrical corporation shall submit to the division office a request for certification a certificate for the following 12 months. The division office shall issue a safety certification certificate within 90 days of a request if the electrical corporation has provided documentation that it has satisfied the requirements in subdivision (e). (a).
(B) The office may, for good cause, in writing, extend the 90-day period.
(3) All documents submitted pursuant to this section shall be publicly available on the commission’s and the office’s internet website. Beginning July 1, 2021, all documents submitted pursuant to this section shall be publicly available on the office’s internet website. The commission is no longer responsible for posting this information as of July 1, 2021; however, nothing in this section prevents the commission from posting this information. websites.
(4) (A) Notwithstanding paragraph (1), a safety certification certificate shall remain valid until the division office acts on the electrical corporation’s pending request for safety certification. a certificate.

(g)If the division determines an electrical corporation is not in compliance with its approved wildfire mitigation plan, it may recommend that the commission pursue an enforcement action against the electrical corporation for noncompliance with its approved plan.

(B) The office may extend the expiration date of a certificate if the office or the commission has not yet acted on an element of the certificate request required pursuant to subdivision (a).

SEC. 24.

 Section 351 of the Water Code is amended to read:

351.
 (a) Except in the event of a wildfire, deenergization event, or a breakage or failure of a dam, pump, pipeline, or conduit causing an immediate emergency, the governing body of a public water supplier shall make a declaration pursuant to Section 350 only after a public hearing at which consumers of the water supply shall have an opportunity to be heard to protest the declaration and to present their respective needs to the governing board.
(b) For purposes of this section, a “deenergization event” means a planned power outage, undertaken by an electrical corporation, as defined in Section 218 of the Public Utilities Code, to reduce the risk of wildfires caused by utility equipment, pursuant to Public Utilities Commission Resolution ESRB-8 and any decisions issued by the commission, the former Wildfire Safety Division, as set forth in former Section 326 of the Public Utilities Code, the Office of Energy Infrastructure Safety, or any other agency with authority over electrical corporations. A deenergization event commences when an electrical corporation provides notice to any state agency or political subdivision of the potential need to initiate a planned deenergization of the electrical grid, and ceases when the electrical corporation restores electrical services to all deenergized customers, or at such time as the electrical corporation cancels the deenergization event for some or all of its affected customers, and rescinds the notice of the potential need to initiate the deenergization event. A deenergization event does not include any planned outages in connection with regular utility work.

SEC. 25.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only 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.

The Legislature finds and declares all of the following:

(a)Electrical corporations’ infrastructure has, over the past 10 years, been the cause of the most destructive wildfires in California history.

(b)Electrical corporations are required to develop and submit wildfire mitigation plans each year for review and approval to the Office of Energy Infrastructure Safety.

(c)Wildfire mitigation plans and consequent investment have been a contributing factor to recent rate increases for California electricity consumers.

(d)Wildfire mitigation plans of electrical corporations propose a variety of strategies to reduce the chance of wildfire ignitions caused by equipment owned and operated by electrical corporations in California.

(e)These strategies vary widely in the amount of time they take to implement, from weeks to up to a decade, during which California residents may face ongoing exposure to risks from wildfire.

(f)These strategies vary widely in the cost to implement, the cost efficiency of reducing wildfire ignition risk, and impacts to electricity service reliability.

(g)The Office of Energy Infrastructure Safety and the Public Utilities Commission do not currently balance the value of mitigations with the time necessary to implement mitigations.

(h)Balancing the time value of reduced exposure to wildfire risk and the cost efficiency of mitigations into wildfire safety planning and the cost-approval processes for electrical corporations may both improve safety outcomes and reduce costs for California ratepayers.

SEC. 2.Section 8386 of the Public Utilities Code is amended to read:
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, taking into account both the time required to implement the proposed mitigations and the amount of risk reduced for the cost and risk remaining.

(b)Each electrical corporation shall annually prepare and submit a wildfire mitigation plan to the office for review and approval. In calendar year 2020, and thereafter, the plan shall cover at least a three-year period. The office shall establish a schedule for the submission of subsequent comprehensive wildfire mitigation plans, which may allow for the staggering of compliance periods for each electrical corporation. In its discretion, the office may allow the annual submissions to be updates to the last approved comprehensive wildfire mitigation plan; provided, that each electrical corporation shall submit a comprehensive wildfire mitigation plan at least once every three years.

(c)The wildfire mitigation plan shall include all of the following:

(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, including consideration of their cost efficiency, calculated consistent with the direction provided by the most recent Safety Model Assessment Proceeding (A.15-05-002, et al., R.20-07-013, or subsequent proceedings), the relative reduction of exposure to wildfire risk caused by variations in implementation timelines for preventative strategies and programs, and dynamic climate change risks.

(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 electrical corporation’s protocols for disabling reclosers and deenergizing portions of the electrical distribution system that consider the associated impacts on public safety. As part of these protocols, each electrical corporation shall include protocols related to mitigating the public safety impacts of disabling reclosers and deenergizing portions of the electrical distribution system that consider the impacts on all of the following:

(A)Critical first responders.

(B)Health and communication infrastructure.

(C)Customers who receive medical baseline allowances pursuant to subdivision (c) of Section 739. The electrical corporation may deploy backup electrical resources or provide financial assistance for backup electrical resources to a customer receiving a medical baseline allowance for a customer who meets all of the following requirements:

(i)The customer relies on life-support equipment that operates on electricity to sustain life.

(ii)The customer demonstrates financial need, including through enrollment in the California Alternate Rates for Energy program continued pursuant to Section 739.1.

(iii)The customer is not eligible for backup electrical resources provided through medical services, medical insurance, or community resources.

(D)Subparagraph (C) does not prevent an electrical corporation from deploying backup electrical resources or providing financial assistance for backup electrical resources under any other authority.

(7)A description of the electrical corporation’s appropriate and feasible procedures for notifying a customer who may be impacted by the deenergizing of electrical lines, including procedures for those customers receiving medical baseline allowances as described in paragraph (6). The procedures shall direct notification to all public safety offices, critical first responders, health care facilities, and operators of telecommunications infrastructure with premises within the footprint of potential deenergization for a given event. The procedures shall comply with any orders of the commission regarding notifications of deenergization events.

(8)Identification of circuits that have frequently been deenergized pursuant to a deenergization event to mitigate the risk of wildfire and the measures taken, or planned to be taken, by the electrical corporation to reduce the need for, and impact of, future deenergization of those circuits, including, but not limited to, the estimated annual decline in circuit deenergization and deenergization impact on customers, and replacing, hardening, or undergrounding any portion of the circuit or of upstream transmission or distribution lines.

(9)Plans for vegetation management.

(10)Plans for inspections of the electrical corporation’s electrical infrastructure.

(11)A description of the electrical corporation’s protocols for the deenergization of the electrical corporation’s transmission infrastructure, for instances when the deenergization may impact customers who, or entities that, are dependent upon the infrastructure. The protocols shall comply with any order of the commission regarding deenergization events.

(12)A list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the electrical corporation’s service territory, including all relevant wildfire risk and risk mitigation information that is part of the commission’s then applicable Safety Model Assessment Proceeding and the Risk Assessment Mitigation Phase filings. The list shall include, but not be limited to, all of the following:

(A)Risks and risk drivers associated with design, construction, operations, and maintenance of the electrical corporation’s equipment and facilities.

(B)Particular risks and risk drivers associated with topographic and climatological risk factors throughout the different parts of the electrical corporation’s service territory.

(C)Particular risks and risk drivers associated with the speed with which wildfire risk mitigation measures can and will be deployed by an electrical corporation within its service territory.

(13)A description of how the plan accounts for the wildfire risk identified in the electrical corporation’s Risk Assessment Mitigation Phase filing.

(14)A description of the actions the electrical corporation will take to ensure its system will achieve the highest level of safety, reliability, and resiliency, taking into account the cost and time required to achieve those benefits, and to ensure that its system is prepared for a major event, including hardening and modernizing its infrastructure with improved engineering, system design, standards, equipment, and facilities, such as undergrounding, insulating of distribution wires, and replacing poles. The electrical corporation shall present the cost-efficient measures adopted by the commission, calculated consistent with the direction provided by the most recent Safety Model Assessment Proceeding for at least two reasonable mitigation alternatives for a given identified wildfire risk.

(15)A description of where and how the electrical corporation considered undergrounding electrical distribution lines within those areas of its service territory identified to have the highest wildfire risk in a commission fire threat map. The electrical corporation shall explain the reasonableness of the mitigation selected, taking into account the cost efficiency, reliability impacts, and time required for installation compared to other alternatives.

(16)A showing that the electrical corporation has an adequately sized and trained workforce to promptly restore service after a major event, taking into account employees of other utilities pursuant to mutual aid agreements and employees of entities that have entered into contracts with the electrical corporation.

(17)Identification of any geographic area in the electrical corporation’s service territory that is a higher wildfire threat than is currently identified in a commission fire threat map, and where the commission should consider expanding the high fire threat district based on new information or changes in the environment.

(18)A methodology for identifying and presenting enterprisewide safety risk and wildfire-related risk that is consistent with the methodology used by other electrical corporations unless the commission determines otherwise.

(19)A description of how the plan is consistent with the electrical corporation’s disaster and emergency preparedness plan prepared pursuant to Section 768.6, including both of the following:

(A)Plans to prepare for, and to restore service after, a wildfire, including workforce mobilization and prepositioning equipment and employees.

(B)Plans for community outreach and public awareness before, during, and after a wildfire, including language notification in English, Spanish, and the top three primary languages used in the state other than English or Spanish, as determined by the commission based on the United States Census data.

(20)A statement of how the electrical corporation will restore service after a wildfire.

(21)Protocols for compliance with requirements adopted by the commission regarding activities to support customers during and after a wildfire, outage reporting, support for low-income customers, billing adjustments, deposit waivers, extended payment plans, suspension of disconnection and nonpayment fees, repair processing and timing, access to electrical corporation representatives, and emergency communications.

(22)A description of the processes and procedures the electrical corporation will use to do all of 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 electrical line and equipment inspections, including inspections performed by contractors, carried out under the plan and other applicable statutes and commission rules.

(23)Any other information that the office may require.

(d)The office shall post all wildfire mitigation plans and annual updates on the office’s internet website for no less than two months before the office’s decision regarding approval of the plan. The office shall accept comments on each plan from the public, other local and state agencies, and interested parties, and verify that the plan complies with all applicable rules, regulations, and standards, as appropriate.

SEC. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only 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.