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CC SR 20190507 F - CCCA Fire Safety Rule 20A FundingRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 05/07/2019 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA DESCRIPTION: Consideration and possible action to receive and file a report on the City’s submittal of a proposed conference resolution to the California Contract Cities Association calling on the California Public Utilities Commission to factor fire safety into criteria for Rule 20A funding RECOMMENDED COUNCIL ACTION: (1) Receive and file a report on the City’s submittal of a proposed conference resolution to the California Contract Cities Association calling on the California Public Utilities Commission to factor fire safety into criteria for Rule 20A funding FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Ac count Number(s): ###-###-####-#### ORIGINATED BY: Megan Barnes, Senior Administrative Analyst REVIEWED BY: Gabriella Yap, Deputy City Manager APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Proposed Resolution (page A-1) B. Background Information (page B-1) BACKGROUND AND DISCUSSION: On April 2, the Public Works Director gave the City Council a presentation on utility undergrounding projects in the City, which are regulated by the state’s Electric Tariff Rule 20 program. The presentation noted that unless undergrounding projects meet limited criteria — in most cases, being located along a major street — they are ineligible to be funded entirely by utility ratepayers under Rule 20A. Instead, the cost of these projects is left to property owners who are proactive, willing and able to pay for them. The City Council directed Staff to explore options for how to add public safety to the criteria for Rule 20A funding, since power lines and electrical equipment are a leading cause of brush fires. A conference resolution was identified as a potential avenue. 1 Staff subsequently learned there was still time to submit a proposed resolution to the California Contract Cities Association (CCCA) for its Annual Municipal Seminar May 16- 19 in Indian Wells. Due to the quick deadline, Staff was unable to bring the proposed resolution before the City Council and submitted it on April 17 without cosponsors, which are not required by CCCA. The proposed resolution calls on the California Public Utilities Commission (CPUC) to amend Rule 20A to include projects in Very High Fire Hazard Severity Zones to the list of criteria for eligibility. To facilitate more undergrounding projects in these high-risk zones, the proposed resolution also calls on the CPUC to require utilities to increase their allocations for Rule 20A projects. CCCA staff confirmed receipt of the proposed resolution and said it will be posted to membership before the May conference and presented during it. Staff can also pursue a conference resolution for the League of California Cities’ Annual Conference & Expo in October in Long Beach. The deadline for submissions is in August, so there will be more time to gather support from other cities. 2 RESOLUTION CALLING ON THE CALIFORNIA PUBLIC UTILITIES COMMISSION TO AMEND RULE 20A TO ADD PROJECTS IN VERY HIGH FIRE HAZARD SEVERITY ZONES TO THE LIST OF ELIGIBILITY CRITERIA AND TO INCREASE FUNDING ALLOCATIONS FOR RULE 20A PROJECTS WHEREAS, the California Public Utilities Commission regulates the undergrounding conversion of overhead utilities under Electric Tariff Rule 20; and WHEREAS, conversion projects deemed to have a public benefit are eligible to be funded by ratepayers under Rule 20A; and WHEREAS, the criteria under Rule 20A largely restricts eligible projects to those along streets with high volumes of public traffic; and WHEREAS, the cost of undergrounding projects that do not meet Rule 20A criteria is left mostly or entirely to property owners under other parts of Rule 20; and WHEREAS, California is experiencing fire seasons of worsening severity; and WHEREAS, undergrounding overhead utilities that can spark brush fires is an important tool in preventing them and offers a public benefit; and WHEREAS, brush fires are not restricted to starting near streets with high volumes of public traffic; and WHEREAS, expanding Rule 20A criteria to include Very High Fire Hazard Severity Zones would facilitate undergrounding projects that would help prevent fires; and WHEREAS, expanding Rule 20A criteria as described above and increasing utilities’ annual allocations for Rule 20A projects would lead to more undergrounding in Very High Fire Hazard Severity Zones; and now therefore let it be, RESOLVED that by adoption of this resolution on May 17, 2019, the California Contract Cities Association calls on the California Public Utilities Commission to amend Rule 20A to include projects in Very High Fire Hazard Severity Zones to the list of criteria for eligibility and to increase utilities’ funding allocations for Rule 20A projects. A-1 Background Rancho Palos Verdes is the most populated California city to have 90 percent or more of residents living in a Cal Fire-designated Very High Fire Hazard Severity Zone. Over the years, the Palos Verdes Peninsula has seen numerous brush fires that were determined to be caused by electrical utility equipment. Across the state, some of the most destructive and deadly wildfires were sparked by power equipment. But when it comes to undergrounding overhead utilities, fire safety is not taken into account when considering using ratepayer funds to pay for these projects under California’s Electric Tariff Rule 20 program. The program was largely intended to address visual blight when it was implemented in 1967. Under Rule 20A, utilities must allocate ratepayer funds to undergrounding conversion projects chosen by local governments that have a public benefit and meet one or more of the following criteria:  Eliminate an unusually heavy concentration of overhead lines;  Involve a street or road with a high volume of public traffic;  Benefit a civic or public recreation area or area of unusual scenic interest; and,  Be listed as an arterial street or major collector as defined in the Governor’s Office of Planning and Research (OPR) Guidelines. As we know, brush fires are not restricted to erupting in these limited areas. California’s fire season has worsened in severity in recent years, claiming dozens of lives and destroying tens of thousands of structures in 2018 alone. Proposed resolution Excluding fire safety from Rule 20A eligibility criteria puts the task of undergrounding power lines in Very High Fire Hazard Severity Zones squarely on property owners who are proactive, willing and able to foot the bill. The proposed resolution calls on the California Public Utilities Commission to amend Rule 20A to include projects in Very High Fire Hazard Severity Zones to the list of criteria for eligibility. To facilitate more undergrounding projects in these high-risk zones, the proposed resolution also calls on the CPUC to require utilities to increase their allocations for Rule 20A projects. If adopted, utilities will be incentivized to prioritize undergrounding projects that could potentially save millions of dollars and many lives. B-1