THIRD READING  

Bill No: SB 1448

Author: Bradford (D)

Amended: 6/2/20

Vote: 21

SENATE ENERGY, U. & C. COMMITTEE: 12-0, 5/26/20

AYES: Hill, Bradford, Chang, Dahle, Dodd, Hertzberg, McGuire, Pan, Rubio, Skinner, Stern, Wiener

NO VOTE RECORDED: Moorlach

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Fire prevention: electrical corporations: wildfire mitigation plans: workforce diversity

SOURCE: Author

DIGEST:

This bill requires an electrical corporation’s wildfire mitigation plan to include a description of how the electrical corporation will develop sufficient numbers of experienced personnel necessary to complete the work described in the plan, as provided.

ANALYSIS:

Existing law:

1. Establishes the California Public Utilities Commission (CPUC), which has regulatory authority over public utilities, including electrical corporations. (California Constitution Article XII, §§3 and 4)
2. Requires each electrical corporation to annually prepare and submit a wildfire mitigation plan to the CPUC for review and approval, as specified. (Public Utilities Code §8386)
3. Requires an electrical corporation’s wildfire mitigation plan to include specified components. (Public Utilities Code §8386)
4. Establishes the California Conservation Corps (CCC) to train young men and women to engage in projects that include, but are not limited to, preserving, maintaining, and enhancing environmentally important lands and waters, accomplish useful and needed public works projects in both urban and rural areas, and assist in fire prevention and suppression. (Public Resources Code §14000 et seq.)
5. Establishes the Community Conservation Corps, commonly known as the local conservation corps, to mean nonprofit public benefit corporation or an agency operated by a city, county, or city and county, and is certified by the CCC as meeting specified criteria. (Public Resources Code §14507.5)

This bill requires an electrical corporation’s wildfire mitigation plan to include a description of how the electrical corporation will develop sufficient numbers of experienced personnel necessary to complete the work described in the plan, including:

1. The extent to which the electrical corporation is seeking to develop as part of its workforce current and former members of CCC crews;
2. Current and former crew members of community conservation corps, as defined in Public Resources Code Section 14507.5; and
3. Formerly incarcerated conservation crew members.

Background

Wildfire Mitigation Plan (WMP). As a result of SB 1028 (Hill, Chapter 598, Statutes of 2016), and further expanded by SB 901 (Dodd, Chapter 626, Statutes of 2018) and AB 1054 (Holden, Chapter 79, Statutes of 2019), electric investor-owned utilities (IOUs) are required to file a WMP with guidance by the CPUC, specifically the Wildfire Safety Division (WSD). The CPUC also reviews and determines whether to approve these plans and ensures compliance with guidance and statute. The electric IOUs’ WMPs detail, describe and summarize electric IOU responsibilities, actions, and resources to mitigate wildfires. These actions include plans to harden their system to prevent wildfire ignitions caused by utility infrastructure, such as widespread electric line replacement with covered conductors designed to lower wildfire ignition, pole replacement, and other actions. The plans also include information regarding the electric IOUs’ efforts to conduct extensive vegetation management to reduce the risk of tree branches, grasses, and other vegetation from coming into contact with utility infrastructure. Electric utility employees conduct some of the wildfire mitigation work. However, electric utilities also contract with third parties for much of the work. In response to recent catastrophic and deadly fires caused by utility infrastructure, the state has imposed additional requirements on electric utilities to reduce their wildfire risks. The aggressive efforts to mitigate more of their infrastructure has also challenged the existing available workforce supply to conduct these activities.

CCC, local conservation corps. The CCC was established in 1976 by then-Governor Jerry Brown who modeled the CCC after the original Civilian Conservation Corps of the 1930s established by then-President of the United States Franklin Roosevelt which helped put mostly men to work during the Great Depression. The CCC is a department within the California Natural Resources Agency and is the oldest conservation corps in the nation. The program provides young men and women, ages 18-25 years old, a year of paid service to the State of California during their year of service. CCC members come from across the state and work on environmental projects and respond to natural and man-made disasters. The CCC enrolls, roughly, 3,000 members each year, gaining skills and experience with the intent of leading to meaningful careers. The CCC also annually certifies local conservation corps, pursuant to Public Resources Code §14507.5, by ensuring the local conservation corps meets statutory criteria defining a community conservation corps and, when applicable, specified grant funding criteria. The local conservation corps can be nonprofit public benefit corporations or an agency operated by a city, county, or city and county. There are 14 local conservation corps currently certified by the CCC working in regions across the state, including throughout Southern California, the Bay Area, and many areas of the Central Valley.

Comments

This bill notes the intent of the Legislature to expand opportunities for meaningful employment in electrical grid modernization, vegetation management, and wildland firefighting. This bill requires electric IOUs to include additional information in their wildfire mitigation plans about how the utility and its contractors are developing sufficient workforce for the wildfire mitigation work. SB 1448 specifically requires information regarding the efforts to develop as part of the workforce current and former members of the CCC and local conservation corps, including formerly incarcerated members. The author notes, the crux of this bill is to address the shortages in existing electric utility wildfire mitigation workforce by providing opportunities for current and former members of the CCC and local conservation corps who have developed skills that can help fill the needs of the electric utilities. Some of the state’s largest electrical utilities, including Pacific Gas & Electric at a recent hearing of the Senate Energy, Utilities, and Communications Committee, have noted that labor shortages for wildfire mitigation work have been a challenge. Both the CCC and the local conservation corps acquire skills that could provide a potential pool of candidates to help utilities address wildfire risks, including wildland fire suppression and vegetation management, among others.

Related/Prior Legislation

SB 247 (Dodd, Chapter 406, Statutes of 2019) made several changes related to the vegetation management requirements of electrical corporations, including: specifying qualifications and prevailing wages for line clearance tree trimmers, and other requirements.

AB 1054 (Holden, Chapter 79, Statutes of 2019) shifted the responsibility for review of wildfire mitigation plans from the CPUC to the WSD of the CPUC (temporarily located there) and made modifications to the review process, among other provisions.

AB 111 (Committee on Budget, Chapter 81, Statutes of 2019) required, by January 1, 2020, the CPUC to establish the WSD within the CPUC and requires all functions of the WSD to be transferred to Office of Energy Infrastructure Safety, effective July 1, 2021.

SB 901 (Dodd, Chapter 626, Statutes of 2018) established the requirement that the wildfire mitigation plans of each electrical corporation meet a number of specified requirements, among other provisions.

SB 1028 (Hill, Chapter 598, Statutes of 2016) required electric IOUs to file annual wildfire mitigation plans and requires the CPUC to review and comment on those plans. The bill also required POU and electrical cooperatives to determine their risk of catastrophic wildfire that can be caused by their electric lines and equipment and, if a risk exists, submit wildfire mitigation plans to their governing board for its approval.

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

SUPPORT: (Verified 6/9/20)

California Association of Local Conservation Corps

California Forestry Association

Midpeninsula Regional Open Space District

Sonoma Clean Power

The Forestry and Fire Recruitment Program

The Utility Reform Network

OPPOSITION: (Verified 6/9/20)

None received

ARGUMENTS IN SUPPORT: According to the author:

California’s electric utilities are investing substantially in improving grid resiliency in line clearing, vegetation management, and other work throughout the State. The hardworking individuals tasked with completing this work are making California safer. We all have an interest in ensuring there continues to be enough experienced people who can do this work and reduce the risk of wildfires. SB 1448 does so by requiring utilities to plan and invest in workforce development. This includes several groups of potential workers who have experience working on similar issues, such as state and local conservation camp crew members, as well as formerly incarcerated conservation crew members. Increasing the use of these groups with direct, relevant experience will reduce costs and increase safety.

Prepared by: Nidia Bautista / E., U., & C. / (916) 651-4107

6/10/20 13:25:18

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SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Ben Hueso, Chair

2019 - 2020 Regular

Bill No: Hearing Date: 5/26/2020

SUBJECT:

DIGEST: This bill requires an electrical corporation’s wildfire mitigation plan to include a description of how the electrical corporation and its contractors will develop a diverse workforce to complete the vegetation management, system hardening, and grid modernization work that it and its contractors are undertaking currently and in the future.

ANALYSIS:

Existing law:

1. Establishes the California Public Utilities Commission (CPUC) has regulatory authority over public utilities, including electrical corporations. (California Constitution Article XII, §§3 and 4)
2. Requires each electrical corporation to annually prepare and submit a wildfire mitigation plan to the CPUC for review and approval, as specified. (Public Utilities Code §8386)
3. Requires an electrical corporation’s wildfire mitigation plan to include specified components. (Public Utilities Code §8386)
4. Declares that is the policy of California to aid in the interests of women, minority, disabled veteran, and lesbian, gay, bisexual, and transgender business enterprises (WMDVLGBTBEs), encourages greater economic opportunity for these groups and promotes competition among utilities to procure contracts with diverse businesses. (Public Utilities Code §8281)
5. Establishes the California Conservation Corps (CCC) to train young men and women to engage in projects that include, but are not limited to, preserving, maintaining, and enhancing environmentally important lands and waters, accomplish useful and needed public works projects in both urban and rural areas, and assist in fire prevention and suppression. (Public Resources Code §14000 et seq.)
6. Establishes the Community Conservation Corps, commonly known as the local conservation corps, to mean nonprofit public benefit corporation or an agency operated by a city, county, or city and county, and is certified by the California Conservation Corps as meeting specified criteria. (Public Resources Code §14507.5)

This bill requires an electrical corporation’s wildfire mitigation plan to include a description of how the electrical corporation and its contractors will develop a diverse workforce to complete the vegetation management, system hardening, and grid modernization work that it and its contractors are undertaking currently and in the future.

Background

Wildfire Mitigation Plan (WMP). As a result of SB 1028 (Hill, Chapter 598, Statutes of 2016), and further expanded by SB 901 (Dodd, Chapter 626, Statutes of 2018) and AB 1054 (Holden, Chapter 79, Statutes of 2019), electric investor-owned utilities (IOUs) are required to file WMPs with guidance by the CPUC, specifically the Wildfire Safety Division (WSD). The CPUC also reviews and determines whether to approve these plans and ensures compliance with guidance and statute. The electric IOUs’ WMPs detail, describe and summarize electric IOU responsibilities, actions, and resources to mitigate wildfires. These actions include plans to harden their system to prevent wildfire ignitions caused by utility infrastructure, such as widespread electric line replacement with covered conductors designed to lower wildfire ignition, pole replacement, and other actions. The plans also include information regarding the electric IOUs’ efforts to conduct extensive vegetation management to reduce the risk of tree branches, grasses, and other vegetation from coming into contact with utility infrastructure. Electric utility employees conduct some of the wildfire mitigation work. However, electric utilities also contract with third parties for much of the work. In response to recent catastrophic and deadly fires caused by utility infrastructure, the state has imposed additional requirements on electric utilities to reduce their wildfire risks. The aggressive efforts to mitigate more of their infrastructure has also challenged the existing available workforce supply to conduct these activities.

Diversity at the CPUC. Beginning in 1986, the Legislature enacted a series of statutes, resulting in the CPUC adopting General Order (GO) 156, which established the Supplier Diversity Program for the purpose of encouraging greater participation in utility contracts by women and minority-owned businesses. Disabled- veteran-owned business enterprises were added in 1990, and in 2014, lesbian, gay, bisexual, and transgender business enterprises were added through statute. Under GO 156, the CPUC monitors utilities’ procurement from firms that are majority ownership of women, minority, disabled, veteran, lesbian, gay, bisexual, and transgender business enterprises (WMDVLGBTBEs). More recently, legislation, SB 255 (Bradford, Chapter 407, Statutes of 2019), expands the CPUC supplier diversity program by lowering the revenue threshold for participation from $25 million to $15 million in California and including community choice aggregators (CCAs), electric service providers (ESPs), distributed energy resource companies, and certain wholesale electric generators as entities included in the program. As part of the program, the CPUC also administers a certification clearinghouse, which is a database that identifies firms that have voluntarily obtained certification as WMDVLGBTBEs. The Supplier Diversity Program is a tool through which the state can leverage the economic power of the utility sector to address historic structural inequities for economic opportunity and ensure that WMDVLGBTBEs are included in contracting opportunities, including renewable energy contracts. The CPUC, in turn, is required to make an annual progress report to the Legislature. Based on its most recent report, the CPUC notes in 2018 the utilities reached a new high of procuring more than $12 billion from WMDVLGBTBEs. The utilities spent 33.9 percent of their total procurement with diverse suppliers in 2018, exceeding the CPUC’s GO 156 overall WMDVLGBTBE 21.5 percent goal.

California Conservation Corps (CCC), local conservation corps. The CCC was established in 1976 by then-Governor Jerry Brown who modeled the CCC after the original Civilian Conservation Corps of the 1930s established by then-President of the United States Franklin Roosevelt which helped put mostly men to work during the Great Depression. The CCC is a department within the California Natural Resources Agency and is the oldest conservation corps in the nation. The program provides young men and women, ages 18-25 years old, a year of paid service to the State of California During their year of service. CCC members come from across the state and work on environmental projects and respond to natural and man-made disasters. Roughly, 3,000 members are enrolled each year gaining skills and experience that lead to meaningful careers. The CCC also annually certifies local conservation corps, pursuant to Public Resources Code §14507.5, by ensuring the local conservation corps meets statutory criteria defining a community conservation corps and, when applicable, specified grant funding criteria. The local conservation corps can be nonprofit public benefit corporations or an agency operated by a city, county, or city and county. There are 14 local conservation corps currently certified by the CCC working in regions across the state, including throughout Southern California, the Bay Area, and many areas of the Central Valley.

Comments

SB 1448. This bill notes the intent of the Legislature to expand opportunities for meaningful employment in electrical grid modernization, vegetation management, and wildland firefighting. This bill would require electric IOUs to include additional information in their wildfire mitigation plans about how the utility and its contractors are developing a diverse workforce for the wildfire mitigation work. SB 1448 would specifically require information regarding the efforts to develop as part of the workforce current and former members of the CCC and local conservation corps, including formerly incarcerated members. In speaking with the author’s office, the crux of this bill is to address the shortages in existing electric utility wildfire mitigation workforce needs by providing opportunities for current and former members of the CCC and local conservation corps who have developed skills that can help fill the needs of the electric utilities. Both the CCC and the local conservation corps have varying skills that could provide a potential pool of candidates to help utilities address wildfire risks, including wildland fire suppression and vegetation management, among others.

Need for amendments. The author’s office has noted his interest is primarily the aspect of creating an opportunity for members of the CCC, local conservation corps, including previously incarcerated members who have already developed some skills that could be useful to the electric utilities’ efforts. Additionally, the author’s office has noted the intent of this bill is not to require specific hiring which could trigger human resources and other legal issues. In this regard, the author and committee may wish to amend this bill to clarify that the electric utilities should describe how they will develop sufficient numbers of experienced personnel necessary to complete the work in their respective plans, including whether they are creating opportunities for the current and former members of the CCC and local conservation corps.

Public Utilities Code Section 8386 (c)

(22) (A) A description of how the electrical corporation and its contractors will develop sufficient numbers of experienced personnel necessary to complete the work described in the plan, including a diverse workforce to complete the vegetation management, system hardening, and grid modernization work that it and its contractors are undertaking currently and in the future.

(B) The description described in subparagraph (A) shall include the extent to which the electrical corporation is seeking to develop as part of its workforce and its contractors’ workforce current and former members of California Conservation Corps crews, current and former members of local conservation corps crews, as defined in Public Resources Code Section 14507.5, and formerly incarcerated conservation crew members.

(22) (23)  Any other information that the Wildfire Safety Division may require.

Prior/Related Legislation

SB 247 (Dodd, Chapter 406, Statutes of 2019) makes several changes related to the vegetation management requirements of electrical corporations, including: specifying qualifications and prevailing wages for line clearance tree trimmers, and other requirements.

AB 1054 (Holden, Chapter 79, Statutes of 2019) shifted the responsibility for review of wildfire mitigation plans from the CPUC to the WSD of the CPUC (temporarily located there) and made modifications to the review process, among other provisions.

AB 111 (Committee on Budget, Chapter 81, Statutes of 2019) required, by January 1, 2020, the CPUC to establish the WSD within the CPUC and requires all functions of the WSD to be transferred to Office of Energy Infrastructure Safety, effective July 1, 2021.

SB 901 (Dodd, Chapter 626, Statutes of 2018) established the requirement that the wildfire mitigation plans of each electrical corporation meet a number of specified requirements, among other provisions.

SB 1028 (Hill, Chapter 598, Statutes of 2016) required electric IOUs to file annual wildfire mitigation plans and requires the CPUC to review and comment on those plans. The bill also required POU and electrical cooperatives to determine their risk of catastrophic wildfire that can be caused by their electric lines and equipment and, if a risk exists, submit wildfire mitigation plans to their governing board for its approval.

SB 255 (Bradford, Chapter 407, Statutes of 2019) expanded the CPUC supplier diversity program by lowering the revenue threshold for participation from $25 million to $15 million in California and including CCAs, ESPs, distributed energy resource companies, and certain wholesale electric generators as entities included in the program.

AB 1678 (Gordon, Chapter 633, Statutes of 2014) extended provisions of the CPUC’s Supplier Diversity Program to LGBT business enterprises.

AB 2758 (Bradford, Chapter 475, Statutes of 2010) required cable corporations, with gross annual revenues exceeding $25 million, to annually submit a detailed and verifiable plan for increasing procurement from diverse businesses. It specified that renewable energy, wireless telecommunications, broadband, smart grid and rail projects should be projects of focus for utility procurement with diverse businesses.

AB 873 (Davis, Chapter 316, Statutes of 2008) required each water corporation with 10,000 or more service connections to submit annual plans for increasing procurement from women- and minority-owned businesses and disabled veteran business enterprises to encourage each electrical, gas, water, and telephone corporation that is not required to submit a plan under current law to voluntarily adopt a plan for increasing women, minority, and disabled veteran business enterprises procurement in all categories.

AB 3678 (Moore, Chapter 1259, Statutes of 1986) codified the broader parameters of GO 156, and required each electrical, gas, and telephone corporations, with gross annual revenues exceeding $25 million, to annually submit a detailed and verifiable plan for increasing diverse business procurement in all categories that includes short- and long-term goals and timetables, and furnish an annual report.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

California Association of Local Conservation Corps, if amended

California Forestry Association

Midpeninsula Regional Open Space District

Sonoma Clean Power

The Utility Reform Network

OPPOSITION:

None recieved

ARGUMENTS IN SUPPORT: According to the author:

California’s electric utilities are investing substantially in improving grid resiliency in line clearing, vegetation management, and other work throughout the State. The hardworking individuals tasked with completing this work are making California safer. We all have an interest in ensuring there continues to be enough experienced people who can do this work and reduce the risk of wildfires. SB 1448 does so by requiring utilities to plan and invest in workforce development. This includes several groups of potential workers who have experience working on similar issues, such as state and local conservation camp crew members, as well as formerly incarcerated conservation crew members. Increasing the use of these groups with direct, relevant experience will reduce costs and increase safety.

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