This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

 THIRD READING  

Bill No: AB 111

Author: Committee on Budget

Amended: 7/8/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-1, 7/10/19

AYES: Mitchell, Nielsen, Beall, Caballero, Leyva, McGuire, Monning, Moorlach, Pan, Roth, Skinner, Umberg, Wieckowski

NOES: Jones

NO VOTE RECORDED: Dahle, Hurtado, Stern, Stone

ASSEMBLY FLOOR: Not relevant

SUBJECT: Wildfire agencies: public utilities: safety and insurance

SOURCE: Author

DIGEST:

This bill establishes the California Energy Infrastructure Safety Act and creates new governmental structures to carry out the Act.

ANALYSIS: This bill, specifically:

1. Creates the California Catastrophe Response Council (CCRC) to oversee the California Earthquake Authority (CEA) with regard to the Wildfire Fund and requires the CCRC to consist of nine members, as follows:
   1. The Governor;
   2. The Treasurer;
   3. The Insurance Commissioner;
   4. The Secretary of the Natural Resources Agency;
   5. Three members of the public appointed by the Governor;
   6. A member appointed by the Senate Committee on Rules; and,
   7. A member appointed by the Speaker of the Assembly.
2. Requires the CEA governing board to exercise the powers of the CCRC until a majority of CCRC members are appointed.
3. Requires the CCRC to appoint a Wildfire Fund Administrator (Administrator) and oversee the Administrator’s operation, management and administration of the Wildfire Fund. Until the Administrator is appointed, the CEA will exercise the powers of the Administrator.
4. Establishes the Office of Energy Infrastructure Safety (OEIS) within the Natural Resources Agency.
5. Requires the Governor to appoint a director to OEIS, subject to Senate confirmation.
6. Requires the OEIS and the California Public Utilities Commission (CPUC) to enter into a memorandum of understanding to develop consistent approaches and share data related to electric infrastructure safety.
7. Requires, by January 1, 2020, the CPUC to establish the Wildfire Safety Division (WSD) within the CPUC and requires all functions of the WSD to be transferred to OEIS, effective July 1, 2021.
8. Requires the WSD to do the following:
   1. Oversee and enforce electrical corporations’ compliance with wildfire safety;
   2. In consultation with the California Wildfire Safety Advisory Board (Advisory Board), develop and recommend to the CPUC performance metrics to achieve maximum feasible risk reduction, which will be used to develop a wildfire mitigation plan and evaluate an electrical corporation’s compliance with that plan;
   3. Develop a field audit program for wildfire mitigation plan compliance by each electrical corporation;
   4. Consult with the Office of Emergency Services, as specified;
   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 incident; and
   6. Review, in coordination with the Advisory Board and CPUC staff, safety requirements for electrical transmission and distribution infrastructure and provide recommendations to the CPUC to address and mitigate risks associated with climate change and wildfire.
9. Establishes the Advisory Board to advise the WSD and requires the Advisory Board:
   1. To consist of seven members, as follows:
      1. Five members appointed by the Governor.
      2. One member appointed by the Senate Committee on Rules.
      3. One member appointed by the Assembly.
   2. To meet at least quarterly and alternate meeting locations between northern, central, and southern California, when feasible.
10. Appropriates $47.6 million from the CPUC Utilities Reimbursement Account and $2.5 million from the CPUC Public Advocate’s Office Account to the CPUC to support its fulfillment of duties pursuant to the California Energy Infrastructure Safety Act.
11. Specifies that AB 111 becomes operative only if AB 1054 (Holden, et al., 2019) becomes effective before January 1, 2020.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

SUPPORT: (Verified 7/10/19)

None received

OPPOSITION: (Verified 7/10/19)

None received

Prepared by: Joanne Roy / B. & F.R. / 916-651-4103

7/11/19 10:15:03

**** END ****

(Without Reference to File)

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 111

Author:(Committee on Budget)

As Amended Ver:July 8, 2019

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

SB 111 is the trailer bill on energy infrastructure safety. This bill does the following:

1. Creates the California Catastrophe Response Council, composed of nine members, to oversee the California Earthquake Authority and the Wildfire Fund Administrator.
2. Requires the California Catastrophe Response Council to appoint the Wildfire Fund Administrator and oversee the administrator’s operations, management, and administration of the Wildfire Fund.
3. Specifies that the California Earthquake Authority shall exercise the powers of the administrator until an administrator is appointed.
4. Creates the Office of Energy Infrastructure Safety within the Natural Resources Agency.
5. Specifies the annual salary of the Director of the Office of Energy Infrastructure Safety.
6. Specifies that the Office of Energy Infrastructure and Safety, effective July 1, 2021, is the successor to and is vested with all of the duties, powers, and responsibilities of the Wildfire Safety Division, including but not limited to, the power to compel information and conduct investigations.
7. Specifies that the Public Utilities Commission and the Office of Energy Infrastructure Safety shall enter into a memorandum of understanding to develop consistent approaches and share data related to electric infrastructure safety.
8. Establishes the California Wildfire Safety Advisory Board.
9. Appropriates $47,600,000 from the Public Utilities Commission Utilities Reimbursement Account and $2,500,000 from the Public Utilities Commission Public Advocate’s Office Account to the Public Utilities Commission for the purposes of fulfilling its duties in this bill.
10. Makes a number of declarations and findings.

The Senate Amendments:

COMMENTS:

This bill creates the California Catastrophe Response Council and the Office of Energy Infrastructure Safety, a new entity under the Natural Resources Agency, in order to ensure energy infrastructure safety in California.

According to the Author:

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: July 8, 2019

CONSULTANT: Susan Chan / BUDGET / (916) 319-2099 FN: 0001248

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 111 Hearing Date: July 10, 2019

Subject: Wildfire agencies: public utilities: safety and insurance

Summary:

This bill establishes the California Energy Infrastructure Safety Act and creates new governmental structures to carry out the act.

Proposed Law:

Specifically, this bill:

1. Creates the California Catastrophe Response Council (CCRC) to oversee the California Earthquake Authority (CEA) with regard to the Wildfire Fund and requires the CCRC to consist of nine members, as follows:
   1. The Governor;
   2. The Treasurer;
   3. The Insurance Commissioner;
   4. The Secretary of the Natural Resources Agency;
   5. Three members of the public appointed by the Governor;
   6. A member appointed by the Senate Committee on Rules; and,
   7. A member appointed by the Speaker of the Assembly.
2. Requires the CEA governing board to exercise the powers of the CCRC until a majority of CCRC members are appointed.
3. Requires the CCRC to appoint a Wildfire Fund Administrator (Administrator) and oversee the Administrator’s operation, management and administration of the Wildfire Fund. Until the Administrator is appointed, the CEA will exercise the powers of the Administrator.
4. Establishes the Office of Energy Infrastructure Safety (OEIS) within the Natural Resources Agency.
5. Requires the Governor to appoint a director to OEIS, subject to Senate confirmation.
6. Requires the OEIS and the California Public Utilities Commission (CPUC) to enter into a memorandum of understanding to develop consistent approaches and share data related to electric infrastructure safety.
7. By January 1, 2020, requires the CPUC to establish the Wildfire Safety Division (WSD) within the CPUC and requires all functions of the WSD to be transferred to OEIS, effective July 1, 2021.
8. Requires the WSD to do the following:
   1. Oversee and enforce electrical corporations’ compliance with wildfire safety;
   2. In consultation with the California Wildfire Safety Advisory Board (Advisory Board), develop and recommend to the CPUC performance metrics to achieve maximum feasible risk reduction, which will be used to develop a wildfire mitigation plan and evaluate an electrical corporation’s compliance with that plan;
   3. Develop a field audit program for wildfire mitigation plan compliance by each electrical corporation;
   4. Consult with the Office of Emergency Services, as specified;
   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 incident; and
   6. Review, in coordination with the Advisory Board and commission staff, safety requirements for electrical transmission and distribution infrastructure and provide recommendations to the CPUC to address and mitigate risks associated with climate change and wildfire.
9. Establishes the Advisory Board to advise the Wildfire Safety Division.
   1. Requires the advisory board to consist of seven members, as follows:
      1. Five members appointed by the Governor.
      2. One member appointed by the Senate Committee on Rules.
      3. One member appointed by the Assembly.
   2. Requires the advisory board to meet at least quarterly and alternate meeting locations between northern, central, and southern California, when feasible.
10. Appropriates $47.6 million from the CPUC Utilities Reimbursement Account and $2.5 million from the CPUC Public Advocate’s Office Account to the CPUC to support its fulfillment of duties pursuant to the California Energy Infrastructure Safety Act.
11. Specifies that AB 111 becomes operative only if AB 1054 (Holden, et al.) becomes effective before January 1, 2020.

Support:

None on file.

Opposed:

None on file.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 111

Author:(Ting)

As Introduced Ver:December 3, 2018

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

Major Provisions

COMMENTS:

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

UPDATED:

VERSION: December 3, 2018

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000154