CC SR 20200721 F - SB 1312
RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 07/21/2020
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to authorize the Mayor to sign a letter in support of
SB 1312.
RECOMMENDED COUNCIL ACTION:
(1) Authorize the Mayor to sign a letter in support of SB 1312 to reduce wildfire risk.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Megan Barnes, Senior Administrative Analyst
REVIEWED BY: Karina Bañales, Deputy City Manager
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft letter in support of SB 1312 (page A-1)
B. Text of SB 1312 (as amended June 2, 2020) (page B-1)
BACKGROUND AND DISCUSSION:
Following multiple public safety power shutoffs (PSPS) in Northern California, in
February 2020, Senator Mike McGuire of Healdsburg introduced legislation proposing
numerous requirements related to reducing wildfire risks and ensuring PSPS events
have smaller footprints and shorter durations.
Senate Bill No. 1312 would provide a framework to shorten and decrease the frequency
of PSPS events and to ultimately eliminate their use by requiring investor-owned utilities
to take both short- and long-term steps to harden their infrastructure. Specifically, SB
1312 would:
Require that IOUs identify power lines that are more likely to cause power shutoff
events or wildfires.
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Require IOUs to include details about the lines that cause the power shutoffs in
their after-event reports, including how many miles of lines were impacted and
how many circuits were impacted.
Require IOUs to harden their infrastructure that caused the power shutoff event
and report back to the California Public Utilities Commission (CPUC) on their
progress one year after the shutoff event.
Require the CPUC to hold hearings to determine whether a power shutoff event
is in accordance with standards and authorize the commission to levy fines if
needed.
Prohibit IOUs from charging Californians for electricity not provided during a
power shutoff event when power is cut.
Authorize the California Office of Emergency Services (OES), Cal Fire, and the
CPUC to create consistent procedures for power shutoff events in the best
interest of Californians by collaborating on what each agency needs, including
the notification process, guidelines on how lines will be re-powered, and what the
footprint of the outage will be.
Require that IOUs identify and harden power lines that are more likely to cause
PSPS events or wildfires within a four-year timeline instead of the 12-14 years
proposed by Pacific Gas & Electric.
In addition to these provisions, and of particular interest to Rancho Palos Verdes, SB
1312 would require the CPUC to revise Electric Tariff Rule 20 to authorize and fund,
whenever feasible, the undergrounding of electrical infrastructure within a commission-
designated Tier 2 or Tier 3 high fire threat area for purposes of wildfire mitigation.
For the past year, the City has been advocating for the CPUC to amend the Rule 20
program, which allows local governments to pay for costly undergrounding projects with
utility ratepayer funds, to include wildfire prevention projects. Currently, the program is
primarily focused on aesthetics and does not factor in fire hazard. Unless projects meet
the program’s limited eligibility criteria — namely, being located along a major street —
they are left to be funded by property owners who are proactive, willing and able to foot
the bill.
In October 2019, the City brought a resolution to the League of California Cities Annual
Conference calling on the CPUC to expand the Rule 20 program to include wildfire
mitigation as an eligible project. The resolution won the support of fire-prone cities
across the state and was referred to two of the League’s policy committees so language
revisions could be reconciled. Ultimately, in February 2020, the League’s Board of
Directors adopted the City’s proposal as an official League policy. The League is now
advocating for this change to the CPUC, which is in the process of revising the Rule 20
program, and the addition of wildfire prevention criteria was included among revisions
proposed by CPUC staff.
SB 1312 would make this proposal a reality by requiring the CPUC to revise Rule 20 to
allow undergrounding in Tier 2 or Tier 3 high fire threat areas for wildfire prevention.
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Virtually the entire Palos Verdes Peninsula falls within a CPUC-designated Tier 2 High
Fire Threat District. SB 1312 is now in the Assembly.
For these reasons, Staff recommends the City Council authorize the Mayor to sign a
letter to Senator McGuire, as drafted, or with revisions, supporting SB 1312.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available
for the City Council’s consideration:
1. Identify revised language to add to the letter.
2. Do not authorize the Mayor to sign the letter.
3. Take other action as deemed appropriate by the City Council.
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July 21, 2020 Via Email
The Honorable Mike McGuire
California State Senate
State Capitol, Rm. 5061
Sacramento, CA 95814
SUBJECT: Notice of Support for SB 1312
Dear Senator McGuire:
The City of Rancho Palos Verdes is pleased to support SB 1312, which would make
numerous changes related to utility-initiated power shutoffs to reduce their impacts on
local communities, and require the CPUC to revise the Electric Tariff Rule 20 program
to include wildfire mitigation.
Last fall, cities all across the state experienced unprecedented and widespread power
shutoffs. These utility-initiated power shutoffs were in response to high wildfire threats
and in an attempt to mitigate the start of a utility-initiated wildfire. Our City understands
the necessity to have these power shutoffs, but wants to ensure that the processes and
procedures of these shutoffs are established and with clear expectations.
SB 1312 would require electrical corporations to both report on and take steps to
upgrade at-risk infrastructure, and require a report detailing the steps the utility took to
mitigate against the use of a power shutoff. By implementing these changes, this bill
would provide local governments with a better understanding of the condition and
decision making behind these power shutoffs. The provisions of this bill should support
and compliment, not supplant, CPUC rulemaking on public safety power shutoffs. Both
cities and counties need to be notified concurrently with the state when electrical
corporations decide to shutoff and restore power.
Rancho Palos Verdes is the most populated California city with 90% or more of
residents living in a Cal Fire-designated Very High Fire Hazard Severity Zone, and
wildfire prevention is a top priority of our City. We strongly support the inclusion of
wildfire mitigation as an eligible use for projects funded by the Rule 20 program. In fact,
we have been advocating for this change for the past year, gaining the support of the
League of California Cities, the California Contract Cities Association, and fire-prone
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Senator Mike McGuire
July 21, 2020
Page 2
cities across the state. Cities need every tool available to them to defend against wildfire
threats and make our communities safer. By allowing Rule 20 funds to be spent on
wildfire mitigation, where appropriate, the risk of a utility power line-sparked wildfire will
decrease. We appreciate the inclusion of this language and thank you for your
leadership on this.
SB 1312 takes several important steps to ensure that the use of utility-initiated power
shutoffs are done in a thoughtful and deliberate way, while seeking to reduce the
frequency of their use to when absolutely necessary.
For these reasons, the City of Rancho Palos Verdes supports SB 1312.
Sincerely,
John Cruikshank
Mayor
cc: Assemblymember Chris Holden, Chair, Utilities and Energy Committee
Ben Allen, Senator, 26th State Senate District
Al Muratsuchi, Assembly Member, 66th Assembly District
Jeff Kiernan, League of California Cities
Meg Desmond, League of California Cities
Marcel Rodarte, California Contract Cities Association
Rancho Palos Verdes City Council
Ara Mihranian, City Manager
Karina Bañales, Deputy City Manager
A-2
AMENDED IN SENATE JUNE 2, 2020
AMENDED IN SENATE MAY 19, 2020
AMENDED IN SENATE APRIL 22, 2020
AMENDED IN SENATE MARCH 25, 2020
SENATE BILL No. 1312
Introduced by Senators McGuire and Stern
February 21, 2020
An act to amend Section 320 of, and to add Article 14 (commencing
with Section 925) to Chapter 4 of Part 1 of Division 1 of, the Public
Utilities Code, relating to public utilities.
legislative counsel’s digest
SB 1312, as amended, McGuire. Electrical corporations:
undergrounding of infrastructure: deenergization.
(1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations. Under existing law, the Legislature has declared that it is
the policy of this state to achieve, whenever feasible and not inconsistent
with sound environmental planning, the undergrounding of all future
electric and communication distribution facilities that are proposed to
be erected in proximity to designated state scenic highways and that
would be visible from those highways if erected above ground. The
commission’s existing Electric Tariff Rule 20 establishes policies for
the undergrounding of electric facilities and includes, among other
programs, the Rule 20A undergrounding program, which requires
electrical corporations to convert overhead electric facilities to
underground facilities when it is in the public interest for specified
reasons.
95 B-1
This bill would require the commission to revise Electric Tariff Rule
20 to additionally authorize and fund, whenever feasible, the
undergrounding of electrical and communication infrastructure within
certain commission-designated high fire-threat areas for purposes of
wildfire mitigation.
(2) Existing law requires each electrical corporation to annually
prepare a wildfire mitigation plan and to submit its plan to the
commission for review and approval, as specified. Existing law requires
the wildfire mitigation plan to include, among other things, protocols
for disabling reclosers and deenergizing portions of the electrical
distribution system that consider the associated impacts on public safety.
This bill would require the commission to develop a standard against
which to measure the prudency of an electrical corporation’s conduct
of a public safety power shutoff, as defined, and an electrical
corporation’s fire risk mitigation capital expenditures on the distribution
or transmission infrastructure that motivated the public safety power
shutoff. The bill would require an electrical corporation that conducts
a public safety power shutoff to report specified information about the
shutoff and its infrastructure expenditures to the commission. The bill
would require the commission to hold a public hearing to determine
whether a public safety power shutoff was conducted prudently. The
bill would require the commission, if it determines a shutoff or related
expenditures were not conducted prudently, to levy fines and penalties
against the electrical corporation.
The bill would require an electrical corporation to notify the
commission, the Office of Emergency Services, and the Department of
Forestry and Fire Protection of a potential public safety power shutoff.
The bill would also require an electrical corporation, on or before July
1, 2021, to identify and report to the commission at least 15% of its
transmission and distribution infrastructure that is most likely to cause
a public safety power shutoff or ignite a wildfire, that needs fire risk
mitigation capital expenditures, and for which fire risk mitigation capital
expenditures have not been made by July 1, 2021. The bill would require
fire risk mitigation capital expenditures to be made on at least 50% of
that infrastructure so that a public safety power shutoff is not necessary
due to that infrastructure except in extraordinary circumstances by July
1, 2023, on at least 75% of that infrastructure by July 1, 2024, and on
all of that infrastructure by July 1, 2025.
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— 2 — SB 1312 B-2
(3) Under existing law, a violation of the Public Utilities Act, or any
order, decision, rule, direction, demand, or requirement of the
commission, is a crime.
Because the provisions of the bill would be included in the act and
would require action by the commission, a violation of which would
be a crime, this 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.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 320 of the Public Utilities Code is
line 2 amended to read:
line 3 320. (a) (1) The Legislature hereby declares that it is the policy
line 4 of this state to achieve, whenever feasible and not inconsistent
line 5 with sound environmental planning, the undergrounding of all
line 6 future electric and communication distribution facilities that are
line 7 proposed to be erected in proximity to any highway designated a
line 8 state scenic highway pursuant to Article 2.5 (commencing with
line 9 Section 260) of Chapter 2 of Division 1 of the Streets and
line 10 Highways Code and that would be visible from those scenic
line 11 highways if erected above ground. The commission shall prepare
line 12 and adopt by December 31, 1972, a statewide plan and schedule
line 13 for the undergrounding of those utility distribution facilities in
line 14 accordance with that policy and the rules of the commission
line 15 relating to the undergrounding of facilities.
line 16 (2) The commission shall coordinate its activities regarding the
line 17 plan with local governments and planning commissions concerned.
line 18 (3) The commission shall require compliance with the plan upon
line 19 its adoption.
line 20 (4) This subdivision shall not apply to facilities necessary to
line 21 the operation of any railroad.
line 22 (b) The commission shall revise Electric Tariff Rule 20 to
line 23 additionally authorize and fund, whenever feasible, the
line 24 undergrounding of electrical and communication infrastructure
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SB 1312 — 3 — B-3
line 1 within a commission-designated Tier 2 or Tier 3 high fire-threat
line 2 area for purposes of wildfire mitigation.
line 3 SEC. 2. Article 14 (commencing with Section 925) is added
line 4 to Chapter 4 of Part 1 of Division 1 of the Public Utilities Code,
line 5 to read:
line 6
line 7 Article 14. Public Safety Power Shutoffs
line 8
line 9 925. For purposes of this article, “public safety power shutoff”
line 10 means the deenergization of any portion of the electrical
line 11 distribution or transmission system to reduce the risk of wildfire
line 12 ignition.
line 13 926. (a) (1) The commission shall develop a standard against
line 14 which to measure the prudency of an electrical corporation’s
line 15 actions regarding both of the following:
line 16 (A) A public safety power shutoff, as to which the standard
line 17 shall measure only the electrical corporation’s compliance with
line 18 all applicable statutory standards and procedures, and with the
line 19 provisions of the electrical corporation’s wildfire mitigation plan
line 20 described in Section 8386.
line 21 (B) The electrical corporation’s fire risk mitigation capital
line 22 expenditures on distribution or transmission infrastructure after a
line 23 public safety power shutoff pursuant to subdivisions (d) and (e).
line 24 (2) The commission shall develop the standard described in
line 25 paragraph (1) in a manner that does not increase the liability of
line 26 the state for any damage or injury arising from a wildfire, public
line 27 safety power shutoff, or any related conduct or incident.
line 28 (b) An electrical corporation shall report to the commission on
line 29 a public safety power shutoff within 10 business days after each
line 30 deenergization event in accordance with decisions of the
line 31 commission. In addition to requirements imposed by the
line 32 commission, a report provided pursuant to this subdivision shall
line 33 set forth the portions of the electrical corporation’s distribution or
line 34 transmission infrastructure, presented in an identifiable format,
line 35 where safety risk motivated the electrical corporation to initiate
line 36 the public safety power shutoff.
line 37 (c) (1) Within 60 days of a public safety power shutoff by an
line 38 electrical corporation, the commission shall hold a hearing, which
line 39 shall be open and available to the public for participation, on the
line 40 shutoff. Upon completion of the hearing, the commission shall
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— 4 — SB 1312 B-4
line 1 make a determination whether the public safety power shutoff was
line 2 conducted prudently.
line 3 (2) If the commission determines the public safety power shutoff
line 4 was not conducted prudently, the commission shall levy fines and
line 5 penalties against the electrical corporation.
line 6 (d) Within 60 days of a hearing held pursuant to paragraph (1)
line 7 of subdivision (c), an electrical corporation shall report to the
line 8 commission on the steps it will take to reduce the risk along the
line 9 portions of distribution or transmission infrastructure described in
line 10 subdivision (b) to prevent future public safety power shutoffs due
line 11 to the risk posed by that infrastructure.
line 12 (e) (1) Within one year of a public safety power shutoff, an
line 13 electrical corporation shall report to the commission on the fire
line 14 risk mitigation capital expenditures made on the distribution or
line 15 transmission infrastructure described in subdivision (b) to prevent
line 16 future public safety power shutoffs due to the risk posed by that
line 17 infrastructure. If the fire risk mitigation capital expenditures
line 18 described in the report under subdivision (d) are not made within
line 19 one year of a public safety power shutoff, the electrical corporation
line 20 shall outline in the report under this paragraph the additional time
line 21 required to make the fire risk mitigation capital expenditures.
line 22 (2) If the commission determines pursuant to subdivision (a)
line 23 that an electrical corporation’s failure to make fire risk mitigation
line 24 capital expenditures on its infrastructure following a public safety
line 25 power shutoff was not prudent, the commission shall levy fines
line 26 and penalties against the electrical corporation.
line 27 927. (a) (1) An electrical corporation shall notify the
line 28 commission, the Office of Emergency Services, and the Department
line 29 of Forestry and Fire Protection of a potential public safety power
line 30 shutoff. An electrical corporation shall provide an updated notice
line 31 to those state agencies during each stage of a potential public safety
line 32 power shutoff, as specified in paragraph (2), to the extent the scope
line 33 or scale of the potential public safety power shutoff changes.
line 34 (2) An electrical corporation shall notify the commission, the
line 35 Office of Emergency Services, and the Department of Forestry
line 36 and Fire Protection when it does each of the following:
line 37 (A) Activates deenergization protocols.
line 38 (B) Decides to deenergize a portion of its transmission and
line 39 distribution infrastructure.
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SB 1312 — 5 — B-5
line 1 (C) Begins deenergizing a portion of its transmission and
line 2 distribution infrastructure.
line 3 (D) Initiates reenergization protocols.
line 4 (E) Completes reenergization protocols.
line 5 (3) Notice provided pursuant to this subdivision shall be
line 6 conducted in accordance with forms and detailed mapping
line 7 procedures specified by the Office of Emergency Services.
line 8 (b) Deenergization protocols established by the commission
line 9 shall include contingency plans for when other natural disasters,
line 10 including wildfires, occur concurrently with a public safety power
line 11 shutoff.
line 12 (c) The Office of Emergency Services, the Department of
line 13 Forestry and Fire Protection, and the commission may jointly adopt
line 14 emergency regulations based on the risks to public health and
line 15 safety resulting from public safety power shutoffs. The adoption
line 16 of a regulation authorized by this subdivision is deemed to address
line 17 an emergency, for purposes of Sections 11346.1 and 11349.6 of
line 18 the Government Code, and the Office of Emergency Services, the
line 19 Department of Forestry and Fire Protection, and the commission
line 20 are hereby exempted for this purpose from the requirements of
line 21 subdivision (b) of Section 11346.1 of the Government Code. The
line 22 commission, in consultation with the Office of Emergency Services
line 23 and the Department of Forestry and Fire Protection, may adopt
line 24 emergency regulations, pursuant to its authority under Section
line 25 701, to address the risks to public health and safety resulting from
line 26 public safety power shutoffs.
line 27 928. (a) (1) On or before January 1, 2021, the commission
line 28 shall identify any specific information, other than the information
line 29 described in subparagraphs (A) and (B) of paragraph (2), needed
line 30 for the reports relating to fire risk mitigation capital expenditures
line 31 described in paragraph (2).
line 32 (2) On or before July 1, 2021, an electrical corporation shall
line 33 identify and report each of the following to the commission:
line 34 (A) At least 15 percent of the electrical corporation’s
line 35 transmission and distribution infrastructure that is most likely to
line 36 cause a public safety power shutoff or ignite a wildfire, that needs
line 37 fire risk mitigation capital expenditures, and for which fire risk
line 38 mitigation capital expenditures have not been made by July 1,
line 39 2021.
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— 6 — SB 1312 B-6
line 1 (B) All fire risk mitigation capital expenditures made between
line 2 July 1, 2019, and July 1, 2021, by region, type of line, and other
line 3 relevant factors.
line 4 (C) Any other information identified by the commission pursuant
line 5 to paragraph (1).
line 6 (b) (1) On or before July 1, 2023, fire risk mitigation capital
line 7 expenditures shall be made on at least 50 percent of the
line 8 infrastructure identified pursuant to subparagraph (A) of paragraph
line 9 (2) of subdivision (a) so that a public safety power shutoff is not
line 10 necessary due to that infrastructure except in extraordinary
line 11 circumstances.
line 12 (2) On or before July 1, 2024, fire risk mitigation capital
line 13 expenditures shall be made on at least 75 percent of the
line 14 infrastructure identified pursuant to subparagraph (A) of paragraph
line 15 (2) of subdivision (a) so that a public safety power shutoff is not
line 16 necessary due to that infrastructure except in extraordinary
line 17 circumstances.
line 18 (3) On or before July 1, 2025, fire risk mitigation capital
line 19 expenditures shall be made on all of the infrastructure identified
line 20 pursuant to subparagraph (A) of paragraph (2) of subdivision (a)
line 21 so that a public safety power shutoff is not necessary due to that
line 22 infrastructure except in extraordinary circumstances.
line 23 (c) An electrical corporation may recover in rates its costs
line 24 incurred for fire risk mitigation capital expenditures on its
line 25 infrastructure pursuant to this section, and consistent with Section
line 26 8386.3. Sections 8386.3 and 8386.4.
line 27 929. An electrical corporation shall not charge ratepayers for
line 28 electricity service not provided during a public safety power
line 29 shutoff.
line 30 SEC. 3. No reimbursement is required by this act pursuant to
line 31 Section 6 of Article XIIIB of the California Constitution because
line 32 the only costs that may be incurred by a local agency or school
line 33 district will be incurred because this act creates a new crime or
line 34 infraction, eliminates a crime or infraction, or changes the penalty
line 35 for a crime or infraction, within the meaning of Section 17556 of
line 36 the Government Code, or changes the definition of a crime within
line 37 the meaning of Section 6 of Article XIIIB of the California
line 38 Constitution.
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SB 1312 — 7 — B-7