The California Disaster Assistance Act generally provides that the state share for disaster project allocations to local agencies is no more than 75% of total state eligible costs, except for specified events for which the state share is up to 100% of state eligible costs.

This bill would add the forest fires that occurred in the County of Lake in 2015 to the list of events for which the state share of state eligible cost is up to 100%.

This bill would declare that it is to take effect immediately as an urgency statute.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 937 (McGuire) - Disaster relief: County of Lake: fires

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 937, an urgency measure, would provide state disaster-related relief to local agencies impacted by the wildfires that occurred in Lake County in 2015.

Fiscal Impact:

Estimated General Fund costs of approximately $2 million, payable over several fiscal years beginning in 2016-17, based upon preliminary estimates of eligible disaster-related costs.

Background:

Lake County experienced three major forest fires in 2015. While the Rocky and Jerusalem fires were destructive, scorching 94,556 acres, the Valley Fire was the third largest wildfire in California history. This devastating fire burned for over a month after it started on September 12, 2015, destroying over 1,900 structures, including 1,300 homes, and displacing nearly 20,000 residents of the area. The author indicates that the Valley fire ultimately burned 170,623 acres and caused more than $1.3 billion in damage.

Existing law provides that the Federal Emergency Management Agency (FEMA) pays local governments for 75 percent of eligible disaster mitigation costs for federally-declared natural disasters. Existing state law, the California Disaster Assistance Act (CDAA), requires the state to pay 75 percent of the remaining 25 percent of eligible costs for any state-declared emergency. Local governments cover the remaining amount. Eligible costs include local expenditures for debris removal, emergency work, and repair or replacement of public facilities damaged as a result of a disaster event.

Existing law, AB 2140 (Hancock), Ch. 739/2006, prohibits the state share for any eligible project from exceeding 75 percent of state eligible costs unless the local agency has adopted a local hazard mitigation plan as part of the safety element of its general plan. For some statutorily specified disasters, the state has paid 100 percent of the non-federal eligible disaster mitigation costs.

Proposed Law:

SB 937, an urgency bill, would add the forest fires that occurred in Lake County in 2015 to the statutory list of natural disasters for which the state will pay up to 100 percent of the non-federal portion of local disaster-related costs that are eligible for reimbursement.

Related Legislation:

The following measures were intended to provide CDAA disaster relief to local agencies, but none of them were enacted:

AB 18 (Dodd), which was held on this Committee’s Suspense File last year, would have added the South Napa Earthquake that occurred on August 24, 2014 to the list of disasters eligible for full state reimbursement of local costs.

AB 1429 (Chesbro), which was vetoed by Governor Brown in 2011, would have added the tsunami that affected Del Norte County in March of 2011 to the list of disasters eligible for full state reimbursement of local costs. The veto message stated the following:

The state has not paid for a local government's share of disaster costs since 2006 and this measure would cost the state over $1 million. In addition, if I sign this measure, other counties that sustain similar damages would likely request the same relief -- a precedent that the state currently cannot afford.

Staff notes that AB 1308 (Cox) and SB 1537 (Kehoe), both of which would have provided full state reimbursement of local disaster-related costs related to specified wildfires, were chaptered by Governor Schwarzenegger in 2008, but failed to become operative because they were contingent upon the enactment of SB 1764 (Kehoe), which was vetoed. As noted in the above veto message of AB 1429 (Chesbro), the state has not provided full reimbursement of local agency disaster-related costs since 2006, when AB 1798 (Berg), Chap 896/2006, added severe rainstorms in specified northern California counties to the list of disasters eligible for full state reimbursement of local agency costs.

Staff Comments:

Payment of local shares of disaster-related costs is made with a Budget Act appropriation to the California Emergency Management Agency, based on preliminary estimates. Because the state attempts to reimburse all claims received in the budget year, and does not control when claims are submitted, the amount appropriated rarely matches the amount ultimately required in any given year. When claims exceed the budget appropriation, a supplemental appropriation may be made.

The Office of Emergency Services’ preliminary estimates indicate that total local agency costs associated with the Valley, Rocky, and Jerusalem fires that are eligible for reimbursement are estimated to be approximately $32.15 million, $24.1 million of which is covered by the federal government. Under this bill, the state would pay its share of $6,027,000, and assume the local share of $2,009,000.

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SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: 937 Hearing Date: 3/8/2016

SUBJECT: Disaster relief: County of Lake: fires

DIGEST: This bill adds the forest fires that occurred in the County of Lake in 2015 to the list of events for which the state share of state eligible cost is up to 100% under the California Disaster Assistance Act (CDAA).

ANALYSIS:

Existing law:

1. Establishes the CDAA which generally provides that the state must pay 75% of the non-federal share of eligible costs for any state declared emergency. For some statutorily specified disasters the state is required to pay 100% of the non-federal cost.
2. Prohibits the state share for any eligible project from exceeding 75% of total state eligible costs unless the local agency is located within the city, county, or city and county that has adopted a local hazard mitigation plan, in accordance with the federal Disaster Mitigation Act of 2000, as part of the safety element of its general plan, as specified.

This bill:

1. Adds the forest fires that occurred in the County of Lake in 2015 to the list of events for which the state share of state eligible cost is up to 100% under the CDAA.
   
2. Contains an urgency clause, to take effect immediately.

Background

The California Disaster Assistance Act (CDAA) reimburses local governments for debris removal, emergency work, and repair or replacement of public facilities damaged by a disaster upon a Governor's proclamation. The state share of eligible expenses is 75%, and local jurisdictions are responsible for the remaining 25%. When there is a federal declaration, the Federal Emergency Management Agency (FEMA) pays 75% and the state pays 75% of the remaining 25% of eligible costs for any state-declared emergency. For some statutorily specified disasters, the state has paid 100% of the non-federal eligible disaster mitigation costs. Existing law, AB 2140 (Hancock, Chapter 739, Statutes of 2006), prohibits the state share for any eligible project from exceeding 75% of state eligible costs unless the local agency has adopted a local hazard mitigation plan as part of the safety element of its general plan.

Purpose of SB 937. According to the author’s office, “in 2015, over 50% of all wild-land fire activity in the entire State of California was in just one county, the County of Lake. Three major fires impacted the County of Lake: The Rocky, Jerusalem and the Valley. The Rocky and Jerusalem fires were incredibly destructive, scorching 94,556 acres, but the Valley Fire was of historic proportion. The Valley Fire was the third worst wild-land fire in California history. The devastating blaze started on September 12, 2015 and didn’t stop for nearly a month after its initial spark. At its peak, 48 acres burned every minute. And in the end, over 1,900 structures burned to the ground, including 1,300 homes. Nearly 20,000 residents were evacuated and ultimately 170,623 acres burned and more than $1.3 billion in damage resulted from the historic disaster. These fires were exacerbated by a severe drought.”

Additionally, the author’s office notes that Lake County is one of the state’s most severely disadvantaged communities with high poverty levels and unemployment at twice the national average. Furthermore, the author’s office contends that the catastrophic fires of 2015 triggered a multi-year drop in property, sales, and bed taxes, since much of the taxable property burned in the fire. The author's office states that this bill seeks disaster relief by adding the Lake County fires of 2015 to the list of events for which the state will pay up to 100% of the non-federal portion of disaster-related costs that are eligible for reimbursement. If passed by the Legislature and signed by the Governor, SB 937 will take effect immediately in order to relieve the burden of Lake County municipalities and residents.

Prior Disasters. Payment of local shares of disaster-related costs has been statutorily extended in the following disasters:

• The October 17, 1989, Loma Prieta earthquake;
• The October 20, 1991, East Bay fire;
• The fires that occurred in southern California from October 1, 1993, to November 30, 1993;
• The January 17, 1994, Northridge Earthquake;
• The storms that occurred in California in January and February, 1995;
• The storms that occurred in California in December, 1996 and early January of 1997;
• The winter storms and flooding that occurred from February 1, 1998, to April 30, 1998;
• The wildfires that occurred in southern California commencing October 21, 2003;
• The December 22, 2003, San Simeon Earthquake;
• The storms, flooding, debris flows, and mudslides that occurred during December 27, 2004, to January 11, 2005;
• The storms, flooding, landslides, and mud and debris flows that occurred in southern California during the period from February 16, 2005, to February 23, 2005;
• The storms, flooding, mudslides, and landslides that occurred in northern California during the period from December 17, 2005, to January 3, 2006;
• The storms and flooding that occurred in northern and central California during the period from March 29, 2006, to April 16, 2006.

Prior/Related Legislation

AB 18 (Dodd, 2015) adds the South Napa earthquake that occurred in Napa County on August 24, 2014 to the list of disaster events for which the state share of state eligible costs is 100%. (Held in Senate Appropriations Committee)

AB 1429 (Chesbro, 2011) would have added the tsunami that occurred in Del Norte County on March 2011 to the list of disaster events for which the state share of state eligible costs is 100%. (Vetoed – Governor’s message noted, “The state has not paid for a local government's share of disaster costs since 2006 and this measure would cost the state over $1 million. In addition, if I sign this measure, other counties that sustain similar damages would likely request the same relief – a precedent that the state currently cannot afford.”)

SB 1537 (Kehoe, Chapter 355, Statutes of 2008) added the wildfires that occurred in southern California, commencing on or about October 20, 2007, to the list of disasters eligible for full state reimbursement of local agency costs under the CDAA. [SB 1537 failed to become operative because it was contingent upon the enactment of SB 1764 (Kehoe, 2008) which was vetoed.]

SB 1764 (Kehoe, 2008) would have required a local agency, on or after January 1, 2010, to obtain an annual certification by the State Fire Marshal (SFM) to be eligible to receive a percentage for a state share in excess of 75%. Also, would have required the SFM to specify the possible percentage a local agency may receive in excess of the 75% based upon certain criteria and regulations to be promulgated by SFM on or before July 1, 2009. (Vetoed by Governor)

SB 1308 (Cox, Chapter 400, Statutes of 2008) included the Angora Fire which occurred in the Lake Tahoe Basin commencing June 24, 2007, to the list of disasters eligible for full state reimbursement of local agency costs under the CDAA. [AB 1308 failed to become operative because it was contingent upon the enactment of SB 1764 (Kehoe, 2008) which was vetoed.]

AB 49 (Arambula, 2007) would have amended the CDAA by adding the extreme cold weather that occurred throughout California during the month of January 2007 to the list of specific events eligible for full state reimbursement of local agency costs. (Held in Assembly Appropriations Committee)

AB 1798 (Berg, Chapter 896, Statutes of 2006) added the severe rainstorms that occurred in selected counties in Northern California from December 17, 2005, to January 3, 2006, to the list of disasters eligible for full state reimbursement of local agency costs under the CDAA.

AB 2140 (Hancock, Chapter 739, Statutes of 2006) prohibited the state share for any eligible project from exceeding 75% of total state eligible costs unless the local agency is located within a city, county, or city and county that has adopted a local hazard mitigation plan as part of the safety element of its general plan, as specified.

AB 2735 (Nava, Chapter 897, Statutes of 2006) added the severe rainstorms that occurred in select counties in Northern California from December 17, 2005, to January 3, 2006, to the list of disasters eligible for full state reimbursement of local agency costs under the CDAA.

AB 164 (Nava, Chapter 623, Statutes of 2005) added the severe storms, flooding, debris flows, and mudslides that occurred in the Counties of Kern, Los Angeles, Santa Barbara and Ventura in December 2004, January 2005, February 2005, and March 2005, to the list of disasters eligible for full state reimbursement of local agency costs under the CDAA.

SB 457 (Kehoe, Chapter 622, Statutes of 2005) added the severe rainstorms, floods, mudslides, and other events that occurred in the Counties of Orange, Riverside, San Bernardino, and San Diego during December 2004, January 2005, February 2005, March 2005, and June 2005 to the list of disasters eligible for full state reimbursement of local agency costs under the CDAA.

AB 1510 (Kehoe, Chapter 772, Statutes of 2004) added the Southern California wildfires that occurred during October and November 2003 and the San Simeon earthquake that occurred during December 2003 to the list of disasters eligible for full state reimbursement of local agency costs under the CDAA.

SB 438 (Soto, 2003) would have amended the CDAA by adding the wildfires that occurred in Southern California beginning October 21, 2003, and the December 22, 2003, San Simeon earthquake to the list of disasters eligible for full state reimbursement of local agency costs. (Vetoed by the Governor)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

California Professional Firefighters

California State Association of Counties

Calpine Corporation

City of Clearlake

City of Lakeport

Hidden Valley Lake Community Services District

Lake County Board of Supervisors

Lake County Chamber of Commerce

Lake County Office of Education

Lake County Wine Studio

Middletown Rancheria

Rural County Representatives of California

South Lake County Fire Protection District

And, several private individuals

OPPOSITION:

None received.