Supplemental Packet

Board of Directors Supplemental Packet

Friday December 11, 2019 9:00 A.M.

Rural County Representatives of California 1215 K Street, Suite 1650 Sacramento, California 95814

Supplemental Packet Table of Contents December 11, 2019

1. Public Safety Power Shut-Offs Update Page 1 Staci Heaton, Senior Regulatory Affairs Advocate John Kennedy, Legislative Advocate Leigh Kammerich, Regulatory Affairs Specialist

2. Forest Management and Wildfire Update Page 23 Staci Heaton

3. Water Issues Update Page 47 Mary-Ann Warmerdam, Senior Legislative Advocate Arthur Wylene, General Counsel

4. State Legislative Update Page 51 Governmental Affairs Staff

5. Federal Legislative Update Page 63 Governmental Affairs Staff

To: RCRC Board of Directors From: Staci Heaton, Senior Regulatory Affairs Advocate John Kennedy, Legislative Affairs Advocate Leigh Kammerich, Regulatory Affairs Specialist Date: December 9, 2019 Re: Public Safety Power Shut-Offs Update

Summary This memo provides a summary of the progress of the state’s activities to mitigate impacts from investor-owned utilities’ (IOUs) Public Safety Power Shut-Off (PSPS) events, both by the Legislature and the California Public Utilities Commission (CPUC).

Background Since being granted party status in March 2019, RCRC has been involved with the CPUC proceedings to determine how IOUs conduct de-energization of their power lines during extreme weather conditions and elevated threats of wildfire. These de-energization, or PSPS, protocols will be incorporated within future utility Wildfire Mitigation Plans.

On November 13th, RCRC was also granted party status for the Order Instituting Rulemaking Regarding Emergency Disaster Relief Program, which opened on March 22, 2018 to establish comprehensive post-disaster consumer protection measures for all electric, gas, telephone, water and sewer utilities customers in areas subject to a gubernatorially declared state of emergency.

CPUC Update and October Public Safety Power Shutoffs After the dismal failure of the PSPS event the week of October 7th that spanned 35 counties in Pacific Gas and Electric Company (PG&E) service territory and six counties in Southern California Edison’s service area and left more than two million people without power, CPUC President Marybel Batjer sent a scathing letter to PG&E and called an emergency meeting on October 18th. At that meeting, high-ranking PG&E officials were questioned on what went wrong, and what needed to occur to prevent wholesale breakdowns in the future. The failures of PG&E to work with local governments on previously-approved protocols were prominently on display. RCRC’s October 17th letter to President Batjer was received by all the Commissioners, referred to, and quoted during the emergency meeting.

On November 13th, the CPUC voted unanimously to open an investigation—which RCRC is also a party to—into the major IOUs’ handling of October PSPS events. The CPUC

RURAL COUNTY REPRESENTATIVES OF CALIFORNIA 1215 K STREET, SUITE 1650 SACRAMENTO, CA 95814 PHONE: 916-447-4806 FAX: 916-448-3154 WEB: WWW.RCRCNET.ORG 1 also announced a hearing directing company executives from major telecommunications companies to appear before the CPUC to explain their performance during the October PSPS events and whether they complied with the requirements adopted in earlier stages of the Emergency Disaster Relief Program Proceeding. The CPUC could sanction PG&E and Southern California Edison and issue $100,000 per day enforcement actions for each regulation violation, like the failure to properly communicate with customers and coordinate with local governments.

On November 1st, the CPUC suspended the procedural schedule of the De-Energization Proceeding’s Phase 2, Track 2 comments. A new scoping memo will be released to refocus the direction of the De-Energization Proceeding given the massive scale and frequency of recent PSPS events. RCRC and other parties’ prior comments will remain as part of the record.

After being contacted by multiple CPUC representatives, RCRC participated in the Pre- Hearing Conference for the Emergency Disaster Relief Program Proceeding at the CPUC on November 20th. RCRC communicated the need for telecommunications system resiliency during PSPS events and natural disasters, and enumerated numerous system deficiencies and the impacts to residents, local governments, and emergency responders. At the meeting, industry executives argued that backup power is not necessary at most communications facilities, and that simply receiving a text message would be adequate notification for a PSPS event or evacuation order. In response, RCRC pointed to the widespread communications systems outages that left entire counties without cellular, landline, and internet service, and the debilitating impacts to local fire departments, public safety officials, and medically sensitive residents. Furthermore, RCRC noted that there were numerous instances where residents received text messages informing them of events – but then could not click through to access the outage maps or “additional information” features included in the text message because there was no internet access. In September, the CPUC adopted a new equity and resiliency budget under the Self- Generation Incentive Program (SGIP). That program provides $100 million in incentives for the installation of energy storage projects for low-income customers and critical facilities in high fire threat areas. RCRC staff continues to engage with the CPUC to ensure that our counties will have access to these funds.

Legislative Update RCRC was actively engaged during the 2019 Legislative Session on de-energization bills, and strongly supported a few recently-enacted measures that will help improve community resilience to PSPS events, including:

 Senate Bill 167 (Dodd) requires utility de-energization protocols to mitigate impacts to medical baseline customers. Utility medical baseline customers only represent a small share of those with access and functional needs (AFN) who are dependent upon electricity for medical equipment. Furthermore, some of those AFN residents may not be considered “customers” because they reside in a multi-family dwelling or mobile home park with a master meter and where facility owner is considered the “customer.” RCRC will continue to ensure that these mitigation requirements apply to all sensitive residents who are dependent on electricity.

2  Senate Bill 560 (McGuire) improves the resilience of mobile telephone communication systems and requires those providers to inform local public safety and emergency response offices of system capabilities during a PSPS event.  Assembly Bill 1144 (Friedman) dedicates 10 percent of Self-Generation Incentive Program revenues for 2020 to projects that support the resiliency of critical infrastructure in high fire threat districts.

On October 24th, Senate President pro Tem Toni Atkins (D-San Diego) announced the creation of a PSPS working group, consisting of Senators Susan Rubio (D-Baldwin Park), Mike McGuire (D-Healdsburg), Bill Dodd (D-Napa), Hannah-Beth Jackson (D-Santa Barbara), Ben Hueso (D-San Diego), Ben Allen (D-Santa Monica), Henry Stern (D- Canoga Park), Nancy Skinner (D-Berkeley), Jerry Hill (D-San Mateo), and Scott Wiener (D-San Francisco).

On October 25th, Governor Newsom announced that $26 million of a $75 million one-time General Fund appropriation passed in the 2019 Budget Act would be available for county governments, with a $150,000 base grant guaranteed to each county, and a base grant of $350,000 to counties with populations greater than 50,000 that experienced a PSPS.

On November 18th, the Senate Committee on Energy, Utilities, and Communications conducted an eight-hour oversight hearing that investigated the serious deficiencies with the current PSPS process and reviewed options to reduce the impact of future PSPS events. Several RCRC member counties were represented on the various panels and in public comment testimony. RCRC sent a letter to the Committee on November 5th outlining over two dozen discrete actions to immediately and significantly reduce the impacts associated with PSPS events. In addition to extensive discussions with legislators in advance of the hearing, RCRC testified to offer our rural perspectives and experiences.

The Legislature will consider several PSPS-related bills when they reconvene in January 2020, including:

 Senate Bill 431 (Wiener), which would establish minimum battery backup requirements for cell towers located in high fire threat districts. The bill awaits its first hearing in the Assembly Communications and Conveyance Committee.  Senate Bill 378 (Wiener), which, among other things, would require utility shareholders to reimburse customers, local governments, and others for costs accrued during a PSPS event, require the CPUC to report on the economic, environmental and public safety impacts of PSPS events, and impose penalties on utilities for every hour a PSPS event is in place. The bill is awaiting referral in Senate Rules Committee.

Public Safety Power Shutoffs, Policy Principles To better inform adoption of the RCRC policy principles at the January 2020 Board Meeting, RCRC staff has included draft PSPS principals to guide our involvement and negotiation of de-energization practices in the next legislative year.

While RCRC staff firmly believe that PSPS should only be used as a last resort, we do not underestimate the risk of wildfire danger, and appreciate the role that expertly- informed, well-tailored PSPS events could play in avoiding catastrophic wildfires like the

3 ones that devastated the town of Paradise in Butte County and the Coffey Park neighborhood in Sonoma County.

Staff Recommendation RCRC staff will continue to advocate for changes to reduce the size, scope, and impact of PSPS events at the CPUC and the Legislature. RCRC staff will update the Board of Directors on these and other related issues as they continue to progress.

Attachments  RCRC Letter to CPUC President Batjer  RCRC Letter to Senate Energy and Utilities Committee  CalOES Fact Sheet, Local Government Public Safety Power Shutoff Resiliency Program

October 17, 2019

Ms. Marybel Batjer President California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102-3298

Dear President Batjer:

On behalf of the Rural County Representatives of California (RCRC), we want to thank you for your October 14, 2019 letters to Investor Owned Utilities (IOUs) following the largest Public Safety Power Shutoff (PSPS) in California history. We support your outlined directives and believe they are vital to protect public health and safety and avoid unnecessary impacts to Californians. RCRC is an association of thirty-seven rural California counties, and its Board of Directors is comprised of elected supervisors from those member counties.

RCRC’s member counties comprise more than 58% of the land mass in California and have a population greater than twenty-four U.S. states. More than 75% of the U.S. Forest Service’s land in California is within our jurisdiction. With extensive forested lands, our members have deep expertise on forestry and vegetation management issues. Given that much of the state’s high fire hazard severity zones are in RCRC counties, our members have suffered the lion’s share of destruction caused by catastrophic wildfires over the past decade and communities within our counties have experienced most of the state’s PSPS events.

RCRC has a broad interest in the effective implementation of Senate Bill 901 and Assembly Bill 1054 and has been actively involved as a party in both the Wildfire Mitigation Plans Proceeding (R.18-10-007) and the De-Energization Proceeding (R. 18- 12-005). We wholeheartedly agree that the execution of the recent large-scale PSPS event was a failure and share the concerns expressed in your letters. That being said, we do not underestimate the risk of wildfire danger and appreciate the role that expertly- informed, tailored PSPS events could play in avoiding catastrophic wildfires like the one that devastated the town of Paradise. We acknowledge that PG&E’s post-PSPS inspections did identify at least 100 instances1 “of ‘damage or hazard’ to its infrastructure

1 Sacramento Bee, Called Greedy by Gavin Newsom and others, PG&E defends mass shutoff as ‘right call’ https://www.sacbee.com/news/california/fires/article236312378.html 1215 K Street, Suite 1650, Sacramento, CA 95814 | www.rcrcnet.org | 916.447.4806 | Fax: 916.448.3154

ALPINE AMADOR BUTTE CALAVERAS COLUSA DEL NORTE EL DORADO GLENN HUMBOLDT IMPERIAL INYO LAKE LASSEN MADERA MARIPOSA MENDOCINO MERCED MODOC MONO MONTEREY NAPA NEVADA PLACER PLUMAS SAN BENITO SAN LUIS OBISPO SHASTA SIERRA SISKIYOU SONOMA SUTTER TEHAMA TRINITY TULARE TUOLUMNE YOLO YUBA

5 Ms. Marybel Batjer October 17, 2019 Page 2 as a result of the windy conditions that prompted the utility to cut power to roughly 738,000 customers” last week, including tree branches that came into contact with or caused distribution lines to fall to the ground in Napa, Shasta, and Glenn Counties.2 These instances could have potentially caused fire events under the wrong circumstances, and we appreciate that those deficiencies can now be corrected. While the actual cause remains under investigation, the recent Saddleridge Fire in Los Angeles County reportedly began near the base of a transmission tower that was not de-energized during Southern California Edison’s (SCE) recent PSPS event.3 However, PSPS events alone are not a panacea for preventing wildfire events during high risk conditions.

While we appreciate these risks and acknowledge the role that PSPS events play in their avoidance, we are deeply concerned that the current notification and execution of PSPS events and subsequent restoration of power unnecessarily endanger lives and property and the operation of critical infrastructure. These impacts are even more acute for low-income residents and those who rely on electricity to power medical devices. Furthermore, rural areas are often populated by a higher percentage of elderly persons— many of whom are dependent on fixed incomes—and their local governments may lack the resources to fully mitigate the impacts of PSPS events on critical infrastructure and sensitive populations. Counties operate many critical facilities that pose a danger to public safety should they experience de-energization. When, and if, back-up generation fails, there must be contingency plans in place—such as the potential to evacuate a jail - - which is no small undertaking especially if large swaths of the state concurrently experience a de-energization event like the week of October 7, 2019. With next year’s elections on the horizon, democracy is at stake if there is a PSPS event that would impact voting centers, another effect that has not been properly considered during PSPS discussions. Needless to say, communication and proper planning is key, particularly as we continue to learn more about the potential for profound impacts on California's communities during PSPS events. For these reasons, it is imperative that IOUs work more closely with local government and public safety partners.

RCRC strongly supported a few recently-enacted bills that we believe will help improve community resilience to PSPS events; however, our recent experiences show that much more work will be needed. Those measures include:

 SB 167 (Dodd), which requires utility de-energization protocols to mitigate impacts to medical baseline customers. While this is a good starting point, we acknowledge that utility medical baseline customers only represent a small share of those with access and functional needs (AFN) who are dependent upon electricity for medical equipment. Furthermore, some of those AFN residents may not be considered “customers” because they reside in a multi-family dwelling or

2 KQED News, PG&E Confirms 50 Instances of Damage or Hazard to its Equipment During Outages https://www.kqed.org/news/11779839/pge-confirms-50-instances-of-damage-or-hazard-to-its-equipment- during-outages 3 ABC News, Saddleridge fire began near base of transmission tower in northern Los Angeles: Investigators https://abcnews.go.com/US/saddleridge-fire-began-base-transmission-tower-northern-los/story?id=66282782

6 Ms. Marybel Batjer October 17, 2019 Page 3

mobile home park with a master meter and where facility owner is considered the “customer.”  SB 560 (McGuire), which will improve the resilience of mobile telephone communication systems and require those providers to inform local public safety and emergency response offices of system capabilities during a PSPS event.  AB 1144 (Friedman), which dedicates 10% of Self-Generation Incentive Program revenues for 2020 to projects that support the resiliency of critical infrastructure in high fire threat districts. We sincerely appreciate your recent Decision (D.19-09- 027) establishing a new $100 million resiliency program to install energy storage to mitigate the impacts of PSPS events due to high wildfire risk. We believe that these resources are vital to help low-income customers, vulnerable households, and critical services facilities remain operational and avoid potentially devastating impacts resulting from a loss of power.

As mentioned, we applaud a number of the directives contained in your October 14th letter to PG&E and look forward to the weekly corrective action reports as a first step toward tangibly making progress to mitigate future missteps. In particular, we believe that major utility improvements are needed in the following areas:

 Ensuring reliable access to meaningful information about PSPS-impacted areas and service restoration times. Given PG&E's frequent warnings over several months that Californians should anticipate large-scale PSPS outages, the utility failed to ensure that its primary internet and telephone interfaces with consumers could handle the volume of traffic that occurred. Utilities should ensure that these critical information systems remain accessible and enlist surge capacity to respond to customers in a timely manner.  Improving communication and coordination with counties. o We appreciate your reiteration of the concerns that RCRC and the Joint Local Governments (Mendocino, Napa, and Sonoma Counties, and the City of Santa Rosa) have repeatedly voiced during the various Rulemakings. For example, we have systematically heard that inaccurate information has been communicated belatedly, and there has been little follow-through when IOUs are given feedback from local jurisdictions. We believe that your requirement for utilities to solicit feedback from local governments and to identify specific actions to address that feedback will help ensure that our comments to utilities do not simply fall on deaf ears. o We agree that communication with locals needs to be vastly improved, as the existing processes have proven neither timely nor effective to facilitate a two-way dialogue in which questions can be asked and answered. o We strongly support directing utilities to work with local governments to identify locations for PSPS community resource centers well in advance. Strong consultation and coordination with local government representatives are essential to ensure that residents have access to the services and resources needed during an extended outage. We agree that the centers should be identified in collaboration with local personnel and that the

7 Ms. Marybel Batjer October 17, 2019 Page 4

decision on which center to open should be made jointly with the impacted local government. It is also vital that those facilities be operated to meet the needs of the local community, both with respect to the services provided and the hours of operation. We have heard a number of unacceptable anecdotal reports of centers being ill-equipped to support AFN residents, shutting down at 8:00 p.m. at night, or being located in neighboring counties (if opened at all). o We believe it is imperative to embed and empower utility liaisons in County Emergency Operations Centers to quickly resolve issues as they arise. We appreciate your direction that those liaisons must have the latest event information and be empowered to resolve local issues as they arise. Local governments should not be left alone and in the dark during these events. o We urge the CPUC to include County elections offices in the definition of “critical facilities.” It is unclear what impact a PSPS event would have on elections, both with respect to early voting and at polling places on Election Day. As the state has moved away from paper ballots, it is crucial that we fully evaluate how to ensure the predictability and integrity of our elections processes in light of these new PSPS events. This designation is even more important because D. 19-05-042 requires utilities to partner with critical facilities to assess the ability of each facility to maintain operations during de-energization events of varying length and to help assess the need for backup generation.  Improving identification, notification, and mitigation of needs for AFN populations. o We appreciate that IOUs have been directed to share information about medical baseline customers with counties in order to assist with the logistics of keeping medically-fragile and low-income individuals safe during a power outage. o We acknowledge that the utilities remain responsible for notifying customers of PSPS events; however, the universe of those enrolled in medical baseline programs pales in comparison to those residents who rely upon electricity for life-saving and medical equipment. We encourage the CPUC to direct utilities to survey their customers (and those who live in units served by a master meter) to better understand who needs advanced notification and how to properly mitigate PSPS events for those residents. o As expressed in previous comments to the CPUC, the existing utility requirement to sign a non-disclosure agreement (NDA) in order for local governments to obtain information about medical baseline customers is unnecessarily restrictive and impedes the timely provision of assistance by the resources at hand. Local governments have a great deal of experience in keeping sensitive medical information confidential and so appreciate your specific direction that NDAs not be required. We remain confident in our ability to keep personal information confidential.  Improving accuracy and availability of maps. We agree that PG&E needs to improve its maps and better integrate those maps with other GIS systems. Just

8 Ms. Marybel Batjer October 17, 2019 Page 5

as importantly, those maps must be distributed in a timely manner and should indicate the probability that a given area will be de-energized.  Enhancing transparency of the PSPS declaration process. There needs to be greater understanding of the factors that the utilities consider in determining whether to declare a PSPS. These factors should be clearly articulated and explained to stakeholders.  Reducing service restoration times. While we understand the need for post-event system inspections, we support your efforts to accelerate service restoration consistent with D. 00-05-002, which requires service restoration within an average of 12 hours after major storms. We believe the recommendation for PG&E to request resources to perform post-event inspections through mutual assistance processes is innovative and has the potential to significantly expedite service restoration.  Identifying costs resulting from PSPS events. While PSPS is a powerful risk- avoidance tool, these events result in considerable costs for local governments, businesses, and residents. In addition to local costs related to procuring backup generation resources for critical facilities that must remain operational, locals have shouldered increased personnel costs associated with deploying public safety and social services personnel to maintain order during PSPS events and ensure that AFN residents have been adequately notified and are prepared. You may be aware how de-energization impacts businesses, especially with respect to the loss of perishable goods; however, it appears that at least some insurers are refusing to cover these costs because the insured had advanced warning of the event (in some cases as little as a few hours). Perhaps most troubling are the impacts for low-income residents. Not only do many experience work closures and, therefore, a commensurate pay cut, but food spoilage may mean many run the risk of going hungry or risking food-borne illness because of their inability to afford to replace lost perishables. RCRC encourages the CPUC or the utilities to perform a survey to better understand the local cost impacts resulting from PSPS events and efforts to improve the resiliency of critical infrastructure.

In conclusion, we thank you for your commitment to public safety and for clearly articulating measurable actions for PG&E and other IOUs to take on PSPS events. And, we should stress that these events should always remain a last resort utilized solely to protect the public from catastrophic wildfire.

Sincerely,

MATT KINGSLEY Member, Inyo County Board of Supervisors RCRC Chair

9 Ms. Marybel Batjer October 17, 2019 Page 6 cc: The Honorable Gavin Newsom, Governor of the State of California Commissioner Liane M. Randolph, California Public Utilities Commission Commissioner Martha Guzman Aceves, California Public Utilities Commission Commissioner Clifford Rechtschaffen, California Public Utilities Commission Commissioner Genevieve Shiroma, California Public Utilities Commission Members of the California State Legislature Members of the RCRC Board of Directors

November 5, 2019

The Honorable Benjamin Hueso Chair, Senate Energy, Utilities & Communications Committee State Capitol, Room 4035 Sacramento, CA 95814

RE: Suggested Changes to Minimize Impacts from Utility Public Safety Power Shutoff Events

Dear Senator Hueso:

On behalf of the Rural County Representatives of California (RCRC), we appreciate the opportunity to provide comments on how to improve Public Safety Power Shutoff (PSPS) events to avoid unnecessary impacts to the state. RCRC is an association of thirty-seven rural California counties, and its Board of Directors is comprised of elected supervisors from those member counties. These comments are based upon our member counties’ PSPS experiences over the last year.

RCRC is keenly interested in the effective implementation of Senate Bill 901 and Assembly Bill 1054 and has been actively involved in related proceedings at the California Public Utilities Commission (CPUC). RCRC’s member counties comprise more than 58 percent of the land mass in California and have a population greater than twenty-four U.S. states. Home to the vast majority of the state’s forested lands and high fire hazard severity zones, our members have suffered the lion’s share of destruction caused by catastrophic wildfires over the past decade and experienced most of the state’s PSPS events.

We do not underestimate the risk of wildfire danger and appreciate the role that expertly-informed, tailored PSPS events play in avoiding catastrophic wildfires like the one that devastated the town of Paradise; however, PSPS events alone are not a panacea for preventing wildfire events during high risk conditions. We remain deeply concerned that the current notification and execution of PSPS events and subsequent restoration of power unnecessarily endangers lives and property and the operation of critical infrastructure.

1215 K Street, Suite 1650, Sacramento, CA 95814 | www.rcrcnet.org | 916.447.4806 | Fax: 916.448.3154

11 Suggested Changes to Minimize Impacts from Utility Public Safety Power Shutoff Events November 5, 2019 Page 2

Rural areas are hardest hit by PSPS events and often lack the resources to fully mitigate impacts on critical infrastructure and sensitive populations. Our communities are home to a higher percentage of elderly and low-income individuals who are least able to bear the impacts of PSPS events. Furthermore, our residents are more likely to rely on private groundwater wells and may not have the resources to acquire the backup generation necessary to maintain access to something as basic as water for drinking, bathing, and sanitation. Our counties often find themselves having to invest in new backup generation resources and deploy additional public safety, social services, and health workers to address the myriad communication, emergency response, transportation, and life-sustaining needs brought about by PSPS events.

While the CPUC has given utilities the ultimate responsibility for notifying customers of PSPS events, it has become clear that those notifications are not always getting through to residents either because they reside in a facility served by a master meter or because of a loss of power to both telecommunications infrastructure. Furthermore, while utilities may be making additional efforts to reach medical baseline customers, it is not clear that similar communications are being made to a number of other sensitive populations that are either not enrolled in, or not eligible for, the utility’s medical baseline program.

To mitigate the impacts of deenergization on residents, utilities have made efforts to set up Community Resources Centers (CRCs) in the deenergized areas. Unfortunately, those CRCs have been too few in number, too far from residents, open too few hours, and sometimes delayed in opening. To mitigate the impacts to of the October 9th event that shut off power to over 700,000 customers (over 1.5 million people), PG&E set up 33 CRCs across 33 counties. PG&E doubled the number of CRCs set up to mitigate the impact of the much larger October 26th and 29th events that impacted over 900,000 customers (over 2 million people); however, that is still a ratio of one CRC per over 25,000 residents. Failure to plan ahead and properly coordinate with local governments led to significant delays in opening many CRCs. Furthermore, most of those CRCs were only open from 8:00 a.m. to 8:00 p.m. and so could not serve customers dependent upon electricity to recharge medical devices with a battery life of less than 12 hours. Sonoma County’s experience is even bleaker, as 185,000 residents were evacuated in response to the Kincade Fire, which may have been caused by a PG&E transmission line that was not deenergized. For many residents living in Western Sonoma County whose electricity and gas were both shut off, the nearest CRC was nearly an hour away.

Some of the most recent PSPS events also wreaked havoc on local communications infrastructure, which inhibited the notification process and precluded individuals from being able to reach out for help in the event of an emergency. In total, over 450,000 Californians lost communication services, with 22 percent of cell sites out of service in Sonoma County and 15 percent in Napa County. Portions of Mendocino County that already lacked cell phone coverage lost landline phone service, thereby

12 Suggested Changes to Minimize Impacts from Utility Public Safety Power Shutoff Events November 5, 2019 Page 3 leaving those residents without any communications capabilities. Even more troublingly, some local fire departments also lost communications capabilities.

Clearly, significant long-term changes are needed to improve the electrical transmission and distribution systems and communications infrastructure. Ideally, electrical system improvements will reduce fire risk, create linkages that decrease the scope of future PSPS events, and promote local resiliency. We believe that distributed energy generation, energy storage, and microgrids also play a complimentary role in ensuring the future resiliency of rural communities. Finally, the telecommunications industry must invest in backup power to avoid future widespread systems outages like those experienced in late October’s PSPS events.

In addition to longer-term system-wide improvements, RCRC believes many changes can be implemented now to immediately and significantly reduce the impacts associated with PSPS events. We offer the following suggestions to improve event planning, notification, and execution, and post-event service restoration:

Improve notification and sharing information with local governments  Eliminate cumbersome restrictions that inhibit the provision of emergency services by allowing information about medical baseline customers, Access and Functional Needs (AFN) populations, and critical facilities to be shared between utilities and local agencies while maintaining the confidentiality of sensitive information. o Prohibit the use of nondisclosure agreements prior to sharing with local agencies information on medical baseline customers, AFN customers, and critical facilities. o Generally require local agencies to maintain the confidentiality of that information, but allow it to be used or disclosed as necessary to plan for, prepare for, or respond to public safety power shutoff events.  Require advance notification to public safety partners before public notification so locals can prepare for and respond to inquiries from the public.  Require utilities to share the same maps and information regarding the areas impacted by a PSPS event with public safety partners that they use in internal operations.  Require utilities to coordinate with local telecommunications providers and emergency response partners to ensure the resiliency of communications systems during a PSPS event.  Require utilities to work with customers with master meters to obtain contact information about residents served by those meters in order to provide notifications.  Require utilities to communicate customer notifications through multiple mediums, especially for and tailored to known AFN populations.  Fully embed local representatives in utility emergency operations centers.

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 Ensure utilities have adequate capacity to handle the volume of traffic on websites and call volumes anticipated for a given PSPS event.

Expand access to and services provided by community resource centers  Require utilities to coordinate in advance with local governments to identify sites for community resource centers and the level of services that will be available at those centers. o Require standing contracts to be executed in advance to ensure that CRCs can be opened quickly when needed. o Require the utility to ensure that the CRCs can provide the services and supplies required by medical baseline and AFN populations as suggested by the respective local government. o Require the utility to work with the impacted local government to identify the CRC to be opened from the prepared list of facilities o Ensure that the CRC is open 24 hours a day from the beginning of the PSPS event until the final service restoration.  Allow local governments to site and operate community resource centers and require the utility to reimburse the local government for costs incurred in setting up and operating the CRC.  Require the utility to establish one CRC for each 5,000 residents impacted, either itself or through reimbursement of local governments. Require CRC siting to reflect the geographic distribution of residents impacted by the PSPS.

Improve notification and mitigation for baseline and Access and Functional Needs (AFN) populations  Modify SB 167 (Dodd) of 2019’s requirement for utilities to mitigate the impacts of deenergization on medical baseline “customers” to additionally include mitigation of impacts on all persons who rely upon “life-support equipment, as defined in PUC Section 739(c)(2),” including those who live within a facility served by a master meter.  Require the CPUC to direct utilities to expand the list of medical baseline and AFN populations that require advanced warning of PSPS events by: o Working with willing community-based organizations that serve AFN individuals to identify those who need advanced warning. o Surveying customers (and residents who live in units served by a master meter) to determine whether the individual uses “life-support equipment, as defined in PUC Section 739(c)(2)” or has another reasonable need for receiving advanced warning. o Accepting and incorporating lists voluntarily submitted by local agencies of those residents who meet the requirements above.

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 Allow self-identification as an AFN customer for purposes of receiving advanced notification of PSPS events.  Require the CPUC to direct utilities to provide backup equipment, battery storage for devices, or transportation and lodging resources for people within the footprint of a PSPS that are disabled or who rely upon “life-support equipment.” o Require utilities to enter into MOUs with paratransit and other transportation providers to provide non-emergency transportation, at the utility’s expense, for customers who need it, including isolated elderly who are dependent on durable medical equipment or life support equipment and cannot get to CRCs or other locations without assistance. o Provide lodging resources for those who need to temporarily relocate to a hotel with power to operate their medical devices.  Require utilities to identify independent living facilities, assess the ability of each facility to maintain operations during de-energization events of varying length, and to help assess the need for backup generation at those facilities.

Expand the definition of “critical facilities”  Expand the definition of “critical facilities” for which the utility must currently provide advanced notification, assess the ability of each facility to maintain operations during de-energization events of varying length, and assess the need for backup generation to include the following: o Schools and school districts o Facilities designated by a local government as a staging or shelter site o Independent living facilities o Private industrial facilities necessary for operation of emergency response operations (pipelines, etc.)  Require utilities to provide backup generation to local elections departments and polling places in the event a PSPS occurs on an election day, to multi-story independent living facilities with a substantial number of low-income residents, and to locally designated staging or shelter sites that are operated as Community Resource Centers.

Evaluate and mitigate PSPS costs and impacts  Require the CPUC or the utilities to perform a survey to better understand the local cost impacts resulting from PSPS events and efforts to improve the resiliency of critical infrastructure.  Require utilities to work with the California Department of Public Health to perform health impact assessments of PSPS events due to downstream consequences of shutting off power.  Require utilities to reimburse local governments for equipment necessary for maintaining operation of critical facilities during a PSPS event.

15 Suggested Changes to Minimize Impacts from Utility Public Safety Power Shutoff Events November 5, 2019 Page 6

 Require utilities to reimburse local governments for emergency, health, and social services personnel costs associated with responding to PSPS events and notifying and mitigating impacts on sensitive populations.  Allow critical facilities to utilize generators to maintain operations without counting against local time limits on the operation of those generators.  Allow manufacturers, solid waste processing facilities, and other businesses to reduce PSPS-related losses by requiring utilities to waive time of use charges for a number of hours commensurate with the duration of the PSPS event.

Establish clear system restoration goals  Accelerate service restoration to achieve an average system restoration of 12 hours after the “all clear” is given. o Allow utilities to draw on mutual assistance processes to expedite service restoration where possible. o Prioritize restoration of circuits serving critical facilities and those with high proportions or medical baseline and AFN populations  Require utilities to promptly notify local governments as service is incrementally restored.

Improve the scrutiny and utility of post-event reports  Require the submission of utility PSPS post-event reports as part of on-going proceedings, with service provided to all parties involved in that proceeding and to all local agencies impacted by the event. o Allow all local agencies impacted by the PSPS event to receive party status and intervenor compensation, provide their own comments on their PSPS experiences, comment on the utility post-event report, and make recommendations for the utility to improve its processes. o Require the utility to respond to comments and recommendations, including whether the recommendations will be incorporated for future events and an explanation for why any recommendation will not be incorporated.  Require utilities to specify in the report the number of hours in advance the warning was given to each public safety, local government, and critical infrastructure contact and to disclose the number of customers and critical facilities provided with less than two-hours advanced notice of a PSPS event.  Require the CPUC to evaluate utility post-event reports and comments by interested parties and consider whether additional changes to the rules governing PSPS events are warranted.

16 Suggested Changes to Minimize Impacts from Utility Public Safety Power Shutoff Events November 5, 2019 Page 7

In conclusion, we reiterate that PSPS events should always remain a last resort utilized solely to protect the public from catastrophic wildfire and offer these suggestions to minimize the impacts related to those events. We happily offer our assistance in drafting legislation to implement these recommendations.

Sincerely,

MATT KINGSLEY Member, Inyo County Board of Supervisors RCRC Chair cc: The Honorable Gavin Newsom, Governor of the State of California Commissioner Marybel Batjer, President, California Public Utilities Commission Commissioner Liane M. Randolph, California Public Utilities Commission Commissioner Martha Guzman Aceves, California Public Utilities Commission Commissioner Clifford Rechtschaffen, California Public Utilities Commission Commissioner Genevieve Shiroma, California Public Utilities Commission Members of the California State Legislature Members of the RCRC Board of Directors

17 18 Local Government Public Safety Power Shutoff Resiliency Program

Investor-owned utilities (IOUs) have significantly increased the use of Public Safety Power Shutoffs (PSPS) on their energized power lines to prevent wildfires during high wind or other severe weather events. As a result, affected areas may be without power for several hours, days, and in some cases, more than a week. To mitigate the impact of utility use of PSPS on public health, safety, and commerce in affected communities, Governor Newsom and the State Legislature included a $75 million one-time General Fund appropriation in the 2019 Budget Act to support state and local government efforts. This funding is particularly intended to protect public safety, vulnerable populations and individuals, and to improve resiliency in response to utility-led PSPS actions. Funding will be available to support equipment purchases and to improve local preparedness and response to PSPS events.

Funding Allocation:

LOCAL GOVERNMENT

$37.5 million to be shared among jurisdictions as follows:

Counties: $26 million Every California county will be eligible for at least a $150,000 base grant, with additional funding based on the population size of the county and experience of IOU-initiated PSPS events. Specifically, counties will receive the following:

 Base grant of $150,000 o County that has not experienced PSPS o County that has experienced PSPS and has a population of less than 50,000  Base grant of $350,000 o County has a population of more than 50,000 and has experienced PSPS  Additional funding: o A total of $10.3 million allocated to each county on a per capita basis

As a condition of receiving funding, counties will be required to collaborate with cities within their jurisdiction to support critical infrastructure and resiliency county-wide, with a particular focus on public safety, vulnerable communities and individuals with access and functional needs.

Cities: $10 million

19 The allocation guarantees that Californians in the state’s most populous and vulnerable cities receive state grant support. Further, all incorporated cities statewide can apply for competitive grants based on PSPS-vulnerability factors.

Direct city allocations:  San Jose, Los Angeles, San Diego, and Oakland are guaranteed $500,000 each;  All other cities will compete for funds with a streamlined process. Cities will be required to outline how they intend to use the funds as well as information on the following factors: o Population o Days of PSPS experienced o Money in disaster reserve fund compared to total budget

As a condition of receiving funding, cities will be required to collaborate with the county within which they are located. Funding will support critical infrastructure and resiliency with a focus on public safety, vulnerable communities and individuals with access and functional needs. Total individual allocations will be capped at a maximum of $500,000.

For cities that are competing for funds, the Governor's Office of Emergency Services Director, in consultation with the League of California Cities, will make award determinations taking into account the above-noted three factors, plus all other available facts and circumstances.

Tribes: $1.5 million Federally recognized tribes compete based on the same factors as cities, however, they are subject to a different allocation cap.

Eligible Use of Grant Funds by Local Governments Includes:

 One-time costs to secure equipment, such as generators and/or generator connections, fuel storage, and other backup energy sources for essential facilities, such as fire stations, community centers, health facilities, and other facilities that are critical to communities’ function during one of these interruptions.  One-time costs associated with identifying and equipping resource centers for the public to access during electric disruptions.  Backup emergency communications equipment, such as battery- powered radios.  Public education materials or supplies focused on individual/family preparedness for electric (PSPS) disruptions.

20  Development/update of contingency plans for electrical disruptions that include considerations such as protecting individuals with access and functional needs, medical baseline and socially vulnerable populations, transportation, emergency public information, and preservation of essential functions.  Development/update of government Continuity of Operations plans.  Risk assessments for critical infrastructure and lifelines.  Post-event reports that identify lessons learned to inform continual improvements.

What is NOT eligible:

Response costs associated with electric disruption events including Emergency Operations Center staffing, security, law/fire response, other overtime charges, etc.

STATE OF CALIFORNIA

$37.5 million for state agencies and departments to ensure continuity of operations and public services statewide.

21 22 To: RCRC Board of Directors From: Staci Heaton, Senior Regulatory Affairs Advocate Date: December 9, 2019 Re: Forest Management and Wildfire Update

Summary Several efforts are underway in the Legislature and various state and federal agencies to address California's persistent catastrophic wildfire events. This memo provides an update on many of those activities, as well as RCRC's involvement and advocacy efforts.

Background California has experienced increased levels of wildfire risk, and faster, more intense burning fires each year over the past decade due to years of mismanaged forests combined with escalating impacts from climate change. Last year eclipsed the 2017 fire season, with the Camp Fire in Butte County now recorded as the most destructive wildfire in California State history, the Mendocino Complex Fire as the largest wildfire in modern history, and the Carr Fire destroying more than 1,000 homes and killing six. In November, the state suffered several more catastrophic fire events, most notably the Kincade Fire, which burned 77,758 acres in Sonoma County, and destroyed or damaged 120 structures. The state is undertaking a number of actions designed to respond to California’s increased fire activity in both the near and long-term, and the federal government has also begun taking measures to respond to increased wildfire activity nationwide.

Issue Homeowners Insurance Availability and Affordability In early August, California Insurance Commissioner Ricardo Lara formed a “Strike Team” of Department of Insurance (DOI) staff to visit communities impacted by insurance non- renewals and dramatic premium increases in high fire risk areas throughout the state. Since the formation of the team, Commissioner Lara has taken two significant actions to address wildfire insurance availability and affordability. First, Commissioner Lara issued an order on November 14th requiring the Fair Access to Insurance Requirements (FAIR) Plan to offer a comprehensive policy by July 1, 2020, in addition to its current fire-only policy offerings (attached). The order also required the FAIR Plan to offer a no-fee monthly payment plan, as well as additional payment options such as automatic electronic transfers or no-fee credit card payments.

RURAL COUNTY REPRESENTATIVES OF CALIFORNIA 1215 K STREET, SUITE 1650 SACRAMENTO, CA 95814 PHONE: 916-447-4806 FAX: 916-448-3154 WEB: WWW.RCRCNET.ORG 23 Subsequently, Commissioner Lara also ordered a voluntary year-long moratorium on all homeowners insurance non-renewals on December 12th, pursuant to Senate Bill 824, which he authored while a member of the State Senate (attached). An RCRC supported bill, SB 824 allows for the prohibition of non-renewals in an area for one year after a state of emergency has been declared.

Meanwhile, on November 8th the Department of Insurance convened its first Climate Insurance Working Group to discuss the future of insurance coverage in light of potential future climate-related disasters such as wildfires, flood, and sea level rise. RCRC staff attended the meeting and voiced concerns over the almost complete lack of real rural representation on the working group, and has subsequently met with Department of Insurance staff to brainstorm ideas on the fire insurance issue and how to proceed with the working group. RCRC also sent a letter to the Department of Insurance requesting a more complete breakdown of the data call issued in August, as well as a request for a rural representative on the working group (Attachment 3).

Finally, RCRC’s Homeowners Insurance Ad Hoc Committee held its November 14th meeting at the Ronald Reagan Presidential Library in Ventura County. Members of the Committee met with FAIR Plan President Anneliese Jivan, Ventura County Fire Department Deputy Chief John Spykerman, and planning staff from both Ventura County and the City of Thousand Oaks to discuss the impacts of recent wildfire events on insurance availability and premiums, as well as how a more suburban area is responding in its land use policies.

Forest Management Task Force RCRC President Greg Norton presented at the December 9, 2019 meeting of the Forest Management Task force, briefing the group on the formation of Golden State Natural Resources (GSNR), including an overview of the wood pellets project, the 20-year Master Stewardship Agreement with the USDA Forest Service Pacific Southwest Region, and GSNR’s plans moving forward.

CPUC Wildfire Hazard Mitigation Plans Proceeding The Wildfire Mitigations Plan Proceeding is ongoing. In mid-September, the Safety and Enforcement Division of the CPUC held workshops on Wildfire Mitigation Plans’ ignition and risk metrics, data collection, and reporting compliance. On November 6th the major IOU’s filed progress reports on their Wildfire Mitigation Plan efforts (Attachment 4).

California Vegetation Treatment Program EIR The California Board of Forestry (BoF) has released its final California Vegetation Treatment Program Environmental Impact Report (CalVTP EIR) for approval by the BoF at its December 11th meeting. RCRC filed comments on the draft in July of this year, and BoF staff incorporated most of our requested changes into the final document. The full VTP EIR package, including BoF response to comments, can be viewed on the CalVTP webpage: https://bof.fire.ca.gov/projects-and-programs/calvtp/

Staff Recommendation RCRC will continue to update the RCRC Board of Directors on the state’s activities on forest health and wildfire prevention as the Administration and Legislature continue to map out their plans into 2020.

24 Attachments  California Insurance Commissioner Ricardo Lara’s Order to the FAIR Plan, November 14, 2019  California Insurance Commissioner Ricardo Lara’s Notice to Insurance Providers, December 5, 2019  RCRC Wildfire Data Request Letter to the Department of Insurance, dated November 5, 2019  PG&E Progress Report of Wildfire Mitigation Plan

25 26

28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

governed by Chapter 9 of Part 1, Division 2 of the California Insurance Code Insurance California the of 2 Division 1, Part 9of Chapter by governed Insurance Property Basic writing in engaged and write to licensed insurers admitted Chapter 9; Chapter appro ; supervision Commissioner’s Insurance California the to (“Chapter 9”) (“Chapter THE CALIFORNIA FAIR PLAN ASSOCIATION, ASSOCIATION, PLAN FAIR CALIFORNIA THE of Matter the In

val of the FAIR Plan’s Plan of Operation if he or she feels it is necessary to carry out the purposes of purposes the out carry to necessary it is feels she or he if Operation of Plan Plan’s FAIR the of val WHEREAS, pursuant to section 10095, subdivision (f), the Commissioner may revoke his or her or his revoke may Commissioner the (f), subdivision 10095, section to pursuant WHEREAS, WHEREAS, WHEREAS, the California FAIR Plan Association (“FAIR Plan”) is an involuntary association of all all of association involuntary an is Plan”) (“FAIR Association Plan FAIR California the WHEREAS, WHEREAS, pursuant to section 10091, subdivision (c), (c), subdivision 10091, section to pursuant WHEREAS, WHEREAS,

WHEREAS, to ensure the availability of availability the ensure to WHEREAS,

;

(Italics added.) added.) (Italics by the market insurance normal the through which for property qualified insuring for (d) and brokers; line surplus licensed and insurers admitted by provided market insurance (c) (b) California; (a) (Italics added.) added.) (Italics commissioner the by property such mischief malicious and vandalism and endorsement coverage extended and policy fire standard the under insured perils from commissioner, the by designated areas urban or geographic those in location a fixed at property personal tangible or real to loss direct against …insurance basic property i property basic obtaining in use, maximum encourage to to provide for the equitable distribution among admitted insurers of the responsibility responsibility the of insurers admitted among distribution equitable the for provide to of availability the assure to of in State the located property for market insurance property in the stability assure to

: are purposes Plan’s FAIR the 10090, section to pursuant subject is Plan FAIR the of administration (g), subdivision 10095, section to pursuant

BEFORE THE INSURANCE COMMISSIONER COMMISSIONER INSURANCE THE BEFORE

by the industry placement facility with the approval of the commissioner or commissioner the of approval the with facility placement industry the by

Respondent. Respondent.

and such other insurance coverages as may be added with respect to to respect with added be may as coverages insurance other and such OF THE STATE OF CALIFORNIA CALIFORNIA OF STATE THE OF , but shall not include insurance on automobile or farm risks; risks; farm or automobile on insurance include not shall but ,

basic property insurance insurance property basic

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ORDER NO. 2019 ORDER NO.

basic property i property basic

establishment establishment

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, sections 10090 et seq. seq. et 10090 sections ,

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[Chapter 9] [Chapter

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means …; current current

…

;

Plan of Plan

28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

for other coverages; coverages; other for lines allied and fire dwelling I Division for million $1.5 of limits such limit to Coverage A for A for Coverage to limit such combined basic current O an HO an purchase 9, to 9, to Division I Division the to addition voluntary market; market; voluntary standard forms such as anHO as such forms standard that that wildfire policies homeowners of numbers significant Division I dwelling fire and allied l allied and fire dwelling I Division well as accidental discharge or overflow of water or st or water of overflow or discharge accidental as well and vandalism endorsement; coverage extended policy; fire standard the under compensation; compensation; ; value rental fair and expenses living additional including use, of loss and freezing; sleet; or snow, ice, 2 1 policies contain policies lines allied to Plan FAIR the requires 05/31/19) (Ed. Operation and other areas of the state state the of areas other and homeowners comprehensive for demand growing the meet to insufficient significant numbers of homeowners policies homeowners of numbers significant herein as “HO as herein Services Office, Inc.

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to to 2

Plan of Operation is inconsistent with this Order Order this with inconsistent is Operation of Plan ; ’s Division I Division ’s Plan FAIR of number asignificant WHEREAS, Plan’s FAIR the WHEREAS, WHEREAS, the Commissioner Commissioner the WHEREAS, WHEREAS, WHEREAS, WHEREAS, under the the under WHEREAS, the majority majority the include not do WHEREAS, the Commissioner has determined that the coverages offered offered coverages the that determined has Commissioner the WHEREAS, Insurance Insurance the of aversion offer market voluntary the in insurers homeowners’ certain WHEREAS,

respond to the unmet demand for homeowners insurance in the state; state; in the insurance homeowners for demand unmet the to respond

coverage limit of $1.5 million, and certain of such policyholders have allocated all or a portion a portion or all allocated have policyholders such of certain and million, $1.5 of limit coverage

3”) 3”)

medical payments to others; damage to property of others; others; of property to damage others; to payments medical - 3 policy or a policy with coverages equivalent to those included in an HO an in included those to equivalent coverages with apolicy or 3 policy

that

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s coverage the includes

dwelling fire and allied lines policies the FAIR Plan offers as of the date of this of date the of as offers Plan FAIR the policies lines allied and fire dwelling

3 policy with certain California amendatory endorsements (collectively referred to to referred (collectively endorsements amendatory California certain with 3 policy does not require the FAIR Plan to offer the option option the offer to Plan FAIR the require not does it that extent the to and

ing, ing,

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of 2

Plan of Operation currently provides combined coverage coverage combined provides currently Operation of Plan current coverages included in a included coverages

feels feels

the coverages set forth in section 10091, subdivision (c), but (c), subdivision 10091, in section forth set coverages the

resulting in resulting press

current current

; current current

in areas in areas

28 it is necessary

as required by the FAIR Plan’s current Plan of Operation Operation of Plan current Plan’s FAIR the by required as

specified in sect

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Plan of Operation, the FAIR Plan is required to use use to required is Plan FAIR the Operation, of Plan offer Plan of Operation (Ed. 05/31/19) 05/31/19) (Ed. Operation of Plan

publicly publicly throughout the State of California exposed to to exposed California of State the throughout those policyholders policyholders those eam, personal personal eam,

to to , under its Division I Division its under add additional coverages to the definition of definition the to coverages additional add

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ion 10091, subdivision (c) [perils insured insured [perils (c) subdivision 10091, ion

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policyholders have purchased the the purchased have policyholders

ry market market ry volunta liability; incidental incidental liability; homeowners

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program

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in the FAIR Plan’s Plan’s in the FAIR in August 2019 policy available in the the in available policy

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renew renew 3 policy 3

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are are of

28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

additional fees and/or to remit payment by credit card and electronic funds transfer with no additional fees additional no with transfer funds electronic and card credit by payment remit to and/or fees additional option to pay their insurance premiums for for premiums insurance their pay to option the policyholders I Division offer to Plan FAIR the require not it does that extent the to 05/31/09) (Ed. insurance creating a financial burden on applicant burden afinancial creating I Division

the HO the dwelling I Division current its Order this with inconsistent is Operation of Plan the extent the to 05/31/19) (Ed. Operation of Plan Plan’s FAIR the of approval his revoke 9, to lines andallied fire dwelling installments and installments

with coverages equivalent to those included in an HO in included those to equivalent coverages with ; offered currently limit coverage combined million $1.5 the above business existing no has Plan lines allied and fire dwelling I Division current its about 1993, so so 1993, about million; $1.5 of excess policy a will California additional additional I Division current Plan’s FAIR the for limit coverage

3 or equivalent policy required by this Order this by required policy equivalent or 3 1. ORDERED IS IT THEREFORE, NOW WHEREAS, the Commissioner feels it is necessary to revoke the FAIR Plan’s Plan of Operation Operation of Plan Plan’s FAIR the revoke to necessary is it feels Commissioner the WHEREAS, WHEREAS, the FAIR Plan currently only permits applicants and policyholders to pay in quarterl in pay to policyholders and applicants permits only currently Plan FAIR the WHEREAS, Chapter of purposes the out carry to order in necessary, is it feels Commissioner the WHEREAS, WHEREAS, the Commissioner has determined a significant number of homeowners in the state of state in the homeowners of number a significant determined has Commissioner the WHEREAS, WHEREAS, the Commissioner has determined that the liability coverage in the HO the in coverage liability the that determined has Commissioner the WHEREAS, s increase Plan FAIR the if impact norate is there determined has Commissioner the WHEREAS, WHEREAS, the Commissioner has determined that $3 million is an appropriate appropriate an is million $3 that determined has Commissioner the WHEREAS, d crease in not has limit coverage combined million $1.5 combined the WHEREAS, with coverages equivalent to those included in an HO an in included those to equivalent coverages with

, contrary to the purposes of Chapter 9; and and 9; Chapter of purposes the to contrary , in monthly installments or to remit payment by credit card and electronic funds transfer, thus thus transfer, funds electronic and card by credit payment remit to or installments in monthly

$3 policies the FAIR Plan offers under Division I as of the date of this Order this of date the of as I Division under offers Plan FAIR the policies HO an in included those to equivalent the FA the The Commissioner revokes his approval of the FAIR Plan’s Plan’s FAIR the of approval his revokes Commissioner The 5/31/19) 5/31/19) combined in combined $3million the of excess in 00,000

be required to purchase a FAIR Plan dwelling fire or allied lines lines allied or fire dwelling Plan a FAIR purchase to required be

it a.

does not offer offer not does ; inflation with pace keep to failed has

IR Plan Plan IR

basic property insurance insurance property basic of definition the amending Operation of Plan a revised approval, Commissioner’s the for submit Order, this of date the of 30days within shall, Plan FAIR The tion tion Opera of Plan revised

the the

is req is extent the definition of definition the extent

to to

fire and allied lines policies, and a $3.3 million combined coverage limit for for limit coverage combined million a $3.3 and policies, lines allied and fire

be available for the HO the for available be

applicants or policyholders the ability to pay the pay to ability the policyholders or applicants

uired to offer the option of an HO of option the offer to uired

s and s

that the the that

basic property insurance insurance property basic

reducing insureds reducing for Division I Division for

to offer to

combined combined FAIR Plan offer a $3 million combined coverage limit for for limit coverage combined a$3million offer Plan FAIR

- basic property insurance insurance property basic 3 policy 3

dwelling fire and allied lines policie lines allied and fire dwelling ;

3 policy policy 3

3 or equivalent policy required by this Order this by required policy equivalent 3 or in addition to the dwelling fire and allied lines lines allied and fire dwelling the to in addition

, in addition to the dwelling fire and allied lines lines allied and fire dwelling the to in addition ,

required isrequired n Pla FAIR the that such

coverage limits to $3 million million $3 to limits coverage

coverage required by this Order for Division I Division for Order this by required coverage

required by this Order, Order, this by required 3 policy 3 ’

ability ability

- 3 policy or 3 policy

in monthly installments with no no with installments in monthly

to at at

current current

basic property property basic obtain and afford combined combined

for Division I Division for

a policy with with a policy policy,

Plan of Operation Operation of Plan

insurance premium insurance or the HO the or coverage limits in limits coverage ;

requires requires

s; s;

because the FAIR FAIR the because

combined combined

does not does

coverages coverages since on or on since -

3 or

up to an under the the under - 3 policy or 3 policy

specify specify (Ed. (Ed. policy policy ;

for for

28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

3. 2.

million combined coverage limit for its current Division I dwelling fire and allied lines policies; policies; lines allied and fire dwelling I Division current its for limit coverage combined million The Commissioner revokes his approval of the FAIR Plan’s Plan’s FAIR the of approval his revokes Commissioner The Plan FAIR the require not does Operation of Plan the extent the to 05/31/19) with no additional fees noadditional with transfer funds electronic and card by credit pay to ability the policyholders and applicants I s fee additional no with installments, HO the and policies, lines allied premiums insurance I Division pay to option the 5/31/19) T s revoke he Commissioner a. a. b. c. c. b.

Commissioner’s approval, a revised Plan of Operation Operation of Plan a revised approval, Commissioner’s the for submit Order, this of date the of 30days within shall, Plan FAIR The Commissioner’s approval, a revised Plan of Operation Operation of Plan a revised approval, Commissioner’s the for submit Order, this of date the of 30days within shall, Plan FAIR The and allied lines policies lines allied and its for limit coverage combined $3 million the policyholders existing and applicants to offer to Plan FAIR the Operation of Plan revised Plan’s FAIR The Div current its policyholders or applicants offer ; 2020 1, June before or on date an effective offer applicants or policyholders policyholders or applicants offer limit coverage combined increased the reflect aseparate submit 2019, 1, December than later no shall, Plan FAIR The , 2020 1, June coverages equivalent to those included in an HO an in included those to equivalent coverages ; coverage liability for option The FAIR Plan shall file a rate application supporting the HO the supporting application arate file shall Plan FAIR The limit of $3 of limit HO an in included those to equivalent coverages and renewing policyholders policyholders and renewing under Division I as of the date of this Order this of date the of as I Division under Plan Plan ’s Plan FAIR The ; coverage liability for option policyholder’s the at available the FAIR Plan’s current dwelling fire and allied lines policies, and the HO the and policies, lines allied and fire dwelling current Plan’s FAIR the policy policy an HO Order this of date the of as I Division under offers Plan FAIR the policies

the extent extent the

offer

with a with - 3 policy or 3 policy

.3 ,

million combined addition to the dwelli re and allied lines policies; policies; lines allied and re fi dwelling I ision that it does not not does it that ; s

4 o that the rates for the HO the for rates the that o

revised

up to $300,000 of which shall be available at the policyholder’s policyholder’s the at available be shall which of $300,000 to up his approval of the FAIR Plan’s Plan’s FAIR the of approval his policy with coverages equivalent to those included in an HO in included those to equivalent coverages with policy

current D current

coverage limit of $3.3 $3.3 of limit coverage . - 3 or equivalent policy required by this Order by this required policy equivalent 3 or 30

Plan of Operation Operation of Plan

, and also does not require the FAIR Plan to allow Division Division allow to Plan FAIR the require not does andalso ,

the option of option the and

require require ivision I dwelling dwelling I ivision

the option to pay Division I insurance premiums premiums I insurance pay to Division option the option the ng fire and allied lines policies FAIR Plan offers offers Plan FAIR policies lines allied and ng fire

the FAIR Plan to offer applicants or policyholders policyholders or applicants offer to Plan FAIR the

for for

purchasing an HO an purchasing - 3 or equivalent policy will be approved with with approved be will policy equivalent 3 or

of a $3 million combined coverage limit for for limit coverage combined million $3 a of , shall, shall, shall shall the FAIR Plan’s current dwelling fire and fire dwelling current Plan’s FAIR the

, 20 1, June than later no

s million

fire and allied lines policies lines allied and fire for its current Division I dwelling fire fire dwelling I Division current its for include a requirement that the FAIR FAIR the that arequirement include - - no later than April 1, 2020, 2020, 1, April than later no 3 policy, sufficiently in advance of of advance in sufficiently 3 policy, 3 policy with a combined coverage coverage acombined with 3 policy

current current current current ,

up to $300,000 of which shall be shall which of $300,000 to up

that that that that

require require Plan of Operation (Ed. (Ed. Operation of Plan Plan of Operation Operation of Plan - 3 -3 -3 policy or a policy with with a policy or policy

policy policy

s s

the FAIR Plan to to Plan FAIR the the FAIR Plan to to Plan FAIR the ,

to in monthly or

offer a$3 offer

to to a policy a policy ,

rule filing to to filing rule 3 or the the ; applicants applicants

and and require require

option of option (Ed. (Ed.

with with

3 for for

28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Executed this Executed ORDERED SO IS IT b.

the ability to pay by credit card and electronic funds transfer with no additional fees additional no with transfer funds electronic and card by credit pay to ability the FAIR policies policies insurance lines allied and fire dwelling I Division existing Plan’s FAIR the for premiums require the the require ’s Plan FAIR The and fees additional no with transfer funds electronic and card by credit pay to ability the s fee Order this by required policy equivalent

14th

also re andalso ,

Plan to offer Division I dwelling fire and allied lines lines allied and fire dwelling I Division offer to Plan day day

. in monthly installments, with no additional fee no additional with installments, in monthly

of November 2019. November of

FAIR Plan Plan FAIR 5

s quire revised

the FAIR Plan Plan to FAIR the 31

offer offer Plan of Operation shall, no later than February 1, 2020, 2020, 1, February than later no shall, Operation of Plan

applicant

______Insurance Commissioner Commissioner Insurance R ICARDO LARA ICARDO LARA s ,

in monthly installments, wi installments, in monthly allow allow or policyholders policyholders or

Division I Division

s , and shall also require the the require also andshall ,

policyholders policyholders and applicants policyholders andpolicyholders applicants

the option to to option the

th no additional additional no th

pay pay insurance insurance

. ;

RICARDO LARA CALIFORNIA INSURANCE COMMISSIONER

NOTICE

TO: All Admitted and Non-Admitted Insurers Writing Residential and Commercial Property Insurance in California FROM: Commissioner Ricardo Lara DATE: December 5, 2019 RE: Request for a Moratorium on Non-Renewals After Recent Wildfire Activity

Data released by the Department of Insurance this year shows a troubling increase in insurer-initiated non-renewals affecting Californians in areas across the state with risk of wildfire.1 In order to provide California homeowners, renters, and businesses peace of mind, and to allow time for stakeholders to come together to work on lasting solutions and help reduce wildfire risk, the Commissioner is hereby requesting that all admitted and non-admitted insurers writing residential2 and commercial property insurance in the state of California cease non-renewing due to wildfire risk all policyholders for one year from the date of this notice.

California’s property insurers are taking action statewide to reevaluate their risk and retreat from areas they identify as having higher wildfire risk. In many communities across the state, finding affordable comprehensive fire insurance has become difficult. So difficult that real estate transactions have stalled or been cancelled. If this trend is allowed to continue, it could further disrupt local real estate markets and cause property values to decline, reducing tax revenue available for vital services to residents such as fire protection, community fire mitigation, law enforcement, road repairs, and hospitals in these communities. Commissioner Lara has met with many of these affected communities and policyholders over the last year who are facing non-renewals and rising premiums.

On October 27, 2019, Governor Gavin Newson declared a state of emergency for the entire state of California3 due to extreme fire danger conditions, one of several such Declarations4 for wildfires the Governor issued this year. Because the fires identified in the Governor’s Declarations were located throughout the state, Commissioner Lara is calling on insurers to immediately voluntarily cease non- renewing all homeowners, condo unit owners, mobile homeowners, residential renters, and commercial property policies for one year from the date of this notice (until December 5, 2020) for the reasons specified above.

1 See: http://www.insurance.ca.gov/0400-news/0100-press-releases/2019/release063-2019.cfm. 2 Pursuant to section 675.1, subdivision (d), “residential property insurance” has the meaning set forth in section 10087, subdivision (a): [a] “policy of residential property insurance” shall mean a policy insuring individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes or a tenant's policy insuring personal contents of a residential unit located in this state. 3 See: https://www.gov.ca.gov/wp-content/uploads/2019/10/2019-17-Fire-weather-conditions-State-of-Emergency-Signed- 10.27.19.pdf. 4 See: https://www.gov.ca.gov/wp-content/uploads/2019/10/10.11.19-State-of-Emergency-Due-to-Fires-attested.pdf; and https://www.gov.ca.gov/2019/10/25/governor-newsom-declares-state-of-emergency-in-sonoma-and-los-angeles-counties-due-to- fires/.

CALIFORNIA DEPARTMENT OF INSURANCE PROTECT • PREVENT • PRESERVE

33 December 5, 2019 Page 2 of 2

Commissioner Lara is also issuing the bulletin required by Senate Bill 824 (Lara) and Insurance Code section 675.1, subdivision (b) specifying which ZIP codes are within or adjacent to the fire perimeters established pursuant to the Governor’s October 11, 25, and 27, 2019 Declarations. Insurers shall not cancel or non-renew for one year any homeowners, condo unit owners, mobile homeowners, or residential renters policies5 due to wildfire risk that are located in a ZIP Code identified by that bulletin, or any subsequent bulletin containing additional ZIP Codes.

If you are an insurer with questions regarding this notice, please contact:

Risa Salat-Kolm Attorney III Legal Division - Enforcement Bureau 45 Fremont Street, 21st Floor San Francisco, CA 94105 (415) 538-4127 [email protected]

5 Id. at fn. 2.

CALIFORNIA DEPARTMENT OF INSURANCE PROTECT • PREVENT • PRESERVE

November 5, 2019

The Honorable Ricardo Lara Insurance Commissioner California Department of Insurance 300 Capitol Mall, Suite 1700 Sacramento, CA 95814

Dear Commissioner Lara:

On behalf of the Rural County Representatives of California (RCRC), I am writing to express our appreciation for the attention your office has given to the growing access and affordability problem in California’s high wildfire risk areas, particularly in our rural communities. RCRC is an association of thirty-seven rural California counties, and its Board of Directors is comprised of elected supervisors from those member counties. RCRC member counties have been the epicenter for the insurance nonrenewal epidemic since the sweeping tree mortality problem hit the central and southern Sierras in 2015, with the issue now spreading to other areas of the state as wildfires have begun new patterns of devastation.

While we appreciate the work your office has done, RCRC believes much more must be done by all parties — insurers, homeowners, the state, and local governments — to fully mitigate the difficulties homeowners are having in obtaining affordable and accessible insurance coverage. This will continue to hold true as long as the state continues to experience wildfires like the Kincade Fire (Sonoma County), the Easy Fire (Ventura County), and the Maria Fire (Ventura County) endanger homes in the wildland urban interface year-after-year. A vital part of this work is having up-to-date data available to the public regarding non-renewals to give lawmakers, homeowners, and local governments an accurate picture of the current insurance landscape.

It is for these reasons RCRC requests not only an update to the data call released in August 2019, which included data through 2018, but also a more detailed breakdown of the insurance landscape through the data already released. While it is valuable to know the number of non-renewals by county, by year, whether they were initiated by the insurer or the insured, and the number of new and renewed FAIR Plan policies, these figures only tell part of the story. Many of the homeowners who suffered losses in the 2015 and 2017 wildfires were either underinsured or relocated and reestablished in another area in the time it took their claims to process, leading to many

1215 K Street, Suite 1650, Sacramento, CA 95814 | www.rcrcnet.org | 916.447.4806 | Fax: 916.448.3154

35 Insurance Commissioner Ricardo Lara November 5, 2019 Page 2 of the insurer-initiated non-renewals in those areas. It would be extremely helpful to indicate how many simply chose not to rebuild because of insufficient coverage, or whether they non-renewed with one insurer but initiated a new policy with a different insurer, etc. These are the types of informational items that would give a complete picture to all parties involved as to why policies were not renewed by homeowners.

RCRC would also like to have information specific to the 2018 fires, particularly the Camp Fire (Butte County). We understand that data on insurance non-renewals and premium increases have a lag time after a major catastrophic event such as the one in the Town of Paradise, but we would ask that the information be made available to the public as soon as possible. We would also ask that not only non-renewal information be made available, but information on premium increases for all areas of the state to accompany the information on non-renewals. While the ability to obtain coverage is important, and many rural homeowners understand that policies in their areas will be more expensive going forward, coverage still needs to be affordable for homeowners in socioeconomically disadvantaged rural communities.

Finally, RCRC is pleased that you have convened the California Climate Insurance Working Group to explore strategies to reduce risk from climate change- related threats. RCRC would recommend the addition of a rural county government representative to the working group, since most of the state’s destructive wildfires have occurred in rural communities and the wildland urban interface. Such a rural perspective on land use and smart development decisions is vital to risk reduction going forward.

We appreciate your consideration of our recommendations. Please do not hesitate to contact me if you have any questions or want to discuss our comments and concerns further.

Sincerely,

STACI HEATON Senior Regulatory Affairs Advocate

cc: Joel Laucher, Senior Advisor, California Department of Insurance Members of the RCRC Board of Directors

36 WMP Activities Summary Not Started Completed Ahead of Plan On Track Off Track

Evaluation of HFRA PSPS Operation Practices Risk Analysis Vegetation Management OP-2: Hire PSPS-1: De-Energization Notifications OP-1: Review VM-1: Hazard Tree Management Program (HTMP) additional EVAL-1: Complete and update RA-1: Conduct PSPS-1.1: Notifications to public PSPS-1.2: Notifications to staff for evaluation of non- Annual risk analysis safety agencies and local gov’t CalOES via State warning system Wildfire CPUC HFRA for System based on new VM-2: Inspect and clear Infrastructure VM-1.1: Perform tree retention or exclusion PSPS-1.3: Notifications to the PSPS-1.4: Enhance Emergency Operating expanded scope VM-1.2: Perform risk- brush around poles Protection specific threat CPUC Outage Notification System Bulletin 322 based tree removals Team assessments

Emergency Preparedness DEP-1: Customer Education and Engagement DEP-2: Emergency Responder Training DEP-3: Bolster Incident Mgmt. & Support VM-4: DRI quarterly inspections and removals DEP-1.1: DEP-1.2: DEP-1.3: DEP-2.2: Conduct DEP-3.1: DEP-3.2: Train, VM-3: Achieve DEP-2.1: Wildfire Conduct a Develop local Execute local Internal IMT Training Determine exercise, and tree-to-line response training for direct mail gov’t ed. and gov’t ed. and around WF response positions that qualify new staff clearance VM-4.1: Perform new or existing VM-4.2: Remove trees in accordance campaign for engagement engagement and de-energization need enhanced to meet identified distance of 12 all quarterly DRI responders with Veg Mgmt program HFRA meeting plan meeting protocols staffing need feet in HFRA inspections

System Hardening Situation Awareness VM-6.1: Inspect VM-6.2: Inspect VM-5: LiDAR inspections vegetation adjacent vegetation adjacent SA-2: Fire Potential of transmission (220kV and SH-2: Conduct evaluation of SH-3: Install at least 1,100 composite SA-1: Install new to Distribution to Transmission Index Phase II. above) Undergrounding in HFRA poles additional weather Circuit Miles Circuit Miles SH-1: Install 96 circuit Enhance units miles of Covered capabilities of FPI Conductor Alternative Technologies 37 SH-5: Install 50 Remote Controlled SH-6: Update at least 150 existing AT-1: Alternative Technology Pilots AT-2: GSRP Wildfire Mitigation Automatic Reclosers (RARs) RAR Settings SA-3: Install ATProgram-2.1: Evaluate Study additional HD SA-4: Procure and AT-1.2: Pilot Distribution Fault Cameras Install high Meter Anticipation devices performance AT-1.1: Pilot installation SH-7: Circuit Breaker Fast Curve Alarming for computing of 50 CAL FIRE-exempt SH-4: Install 7,500 Downed AT-2.2: Evaluate cluster weather surge arrestor units Current Limiting Fuses SH-7.2: Conduct Circuit breaker SA-5: Develop Energized Beyond Visual Line of SH-7.1: Develop Engineering plan and fuels (CLFs) upgrades and setting updates Asset Reliability Conductor Sight Unmanned to upgrade Circuit Breaker relays modeling system and Settings according to plan & Risk Analytics Aerial System Capability

AT-3: Alternative Technology Evaluations AT-4: Alternative Technology Inspections Implementation AT-3.1: Evaluate AT-4.1: Develop IN-1: Distribution Enhanced IN-2: Transmission Enhanced IN-5: Infrared Inspection, Corona Rapid Earth Fault AT-3.4: standard installation Overhead Inspections and Overhead Inspections and Scanning, and High Definition Current IN-3: Perform quality review on Evaluate practices for aeolian Remediation in HFRA Remediation in HFRA imagery of overhead transmission Limiters/Arc transmission and distribution structures substation- vibration dampers facilities and equipment Suppression Coils class IN-1.1: Complete visual IN-2.1: Complete visual electronic AT-4.2: Develop inspection for all inspection for all IN-5.1: Complete IR, Corona and AT-3.2: Evaluate fuses standard installation distribution circuits in transmission circuits in IN-4: Infrared Inspection of hot spots on HD image scanning of all alternate fault practices for ridge HFRA HFRA overhead distribution facilities and overhead transmission lines in detection pin construction for equipment HFRA technology AT-3.5: conductor rebuild IN-4.1: Inspect 50% of overhead Evaluate lines in HFRA branch line IN 1.2: Remediate all IN 2.2: Remediate all AT-3.3: Evaluate AT-4.3: Update protection to conditions that create conditions that create IN-5.2: Integrate remediation fire retardant distribution overhead include fire risk under fire risk under IN-4.2: Remediate condition’s as with EOI activities barrier for wood requirements for single phase distribution transmission required based on inspection poles connector selection results reclosing in HFRA

4 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track Operational-related Activities

PSPS: De-Energization Notifications (PSPS-1): HFRA Evaluation of HFRA (EVAL-1) Notifications to Public Safety Agencies and Local Boundary Volume vs 2019 Goal: Evaluation complete; PFM filed on 8/19/2019 Local Govt and Key Actions: The technical review of non-CPUC HFRA evaluation Government (PSPS-1.1) Evaluation Agency PSPS results was completed and the non-CPUC HFRA boundary Petition for Volume vs 2019 Goal: Sent notifications for each of the 7 events to Modification (PFM) was submitted. Notifications date in 2019 Complete Key Actions: This Activity is triggered by a PSPS event where SCE is On required to submit ESRB-8 documentation to confirm it met the Track requirements outlined by the CPUC. Expansion of Wildfire Risk Analysis (RA-1) Wildfire Risk Volume vs 2019 Goal: On track to conduct risk analysis Notifications to CalOES via State Warning System Analysis State PSPS (PSPS-1.2) incorporating 2018 fire ignition data, additional system information, and consequence modeling to evaluate wildfire risk at a circuit Notifications Volume vs 2019 Goal: Sent notifications for each of the 7 events to segment level.

38 date in 2019 On Key Actions: SCE is developing and testing revisions to its wildfire Key Actions: This Activity is triggered by a PSPS event where SCE is risk modeling methodology that include segment-level probability of On required to submit ESRB-8 documentation to confirm it met the Track ignition calculations that incorporate system characteristics, fault / requirements outlined by the CPUC. Track fire history, and local conditions, as well as localized ignition consequence risk. Notifications to the CPUC (PSPS-1.3) CPUC PSPS Volume vs 2019 Goal: Sent notifications for each of the 7 events to Notifications Review and Update Annual System Operating date in 2019 SOB Review Bulletin 322 (OP-1) Key Actions: This Activity is triggered by a PSPS event where SCE is and Update Volume vs 2019 Goal: Review and update to non-CPUC required to submit ESRB-8 documentation to confirm it met the HFRA complete On requirements outlined by the CPUC. Complete Key Actions: System Operating Bulletin (SOB) 322 was revised to Track include additional details on operating restrictions during elevated Enhance Emergency Outage Notification System fire weather threats, blocking subtransmission reclosers, fast curve settings, and operations during PSPS events. (PSPS-1.4) Emergency Volume vs 2019 Goal: PSPS messaging will be delivered in English Notification plus the 5 primary additional languages within SCE's service area Hire Hire Additional Staff for Wildfire Infrastructure Enhancements Key Actions: All work tracks for this goal have begun. SCE.com Team Additional Protection Team (OP-2) is in in process of creating landing pages for In Language PSPS Meteorologist Volume vs 2019 Goal: Hired one additional meteorologist On notifications. Translation vendor is in process of voice and text Key Actions: Completed hiring of one additional meteorologist for translations into the 5 additional languages. PSPS notification the Wildfire Infrastructure Protection Team. Track vendor ready to begin work to integrate voice messaging into their Complete platform as soon as translation recordings delivered.

7 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track

Inspection-related Activities

EOI Enhanced Overhead Inspections (IN-1 & IN-2) Infrared Infrared Inspection, Corona Scanning, and High Inspections & HD Volume vs 2019 Goal: Dist. Trans. Imagery Definition Imagery of Overhead Transmission Distr. 100% of structures inspected Facilities and Equipment: Complete IR, Corona and 100% 100% Distr. 80% of notifications remediated Inspected Trans. 100% of structures inspected On HD Image Scanning of All Overhead Transmission Trans. 40% of notifications remediated Lines in HFRA (IN-5.1) 80% 40% Key Actions: All EOI P1 notifications have been remediated within Track Volume vs 2019 Goal: 5,716 of 6,513 miles planned of overhead Remediated compliance dates and the top 2% of REAX scored P2’s have also been transmission lines have been flown utilizing IR and Corona scanning. remediated. Remaining P2 notifications are being remediated based 452 miles were loaded above 40% of rated capacity. on required compliance dates. Key Actions: Data collection was temporarily restarted in June to collect IR/Corona data on generation ties coming out of Big Creek and Bishop. That data has been provided to Transmission Engineering for analysis and has since been received back. All data QC HFRA QC HFRA Inspections (IN-3) collection is currently on hold until ground temperatures decrease. 39 Inspections Volume vs 2019 Goal: 17,080 of 7,500 structures inspected Key Actions: Performed quality reviews on transmission and Infrared Inspection, Corona Scanning, and High distribution structures in HFRA based on EOI inspections, more than Integrate 228% doubled the goal amount, no further actions expected. Remediation Definition Imagery of Overhead Transmission w/EOI Activities Structures Inspected Facilities and Equipment: Integrate Remediation with EOI Activities (IN-5.2) On Volume vs 2019 Goal: Collaborating with Transmission Engineering to integrate remediation with their EOI work. Track Key Actions: Any Priority 1 conditions or notification items are immediately provided to Transmission for evaluation and Overhead Line Infrared Inspection of Hot Spots on Overhead remediation. Priority 2 and 3 notifications will go through gate Inspections Distribution Facilities and Equipment (IN-4) keeping and are entered into SAP with a completion date based on Volume vs 2019 Goal: Approximately 15% completed of goal fire tier compliance timelines Key Actions: Distribution IR Scanning encountered a slow start due 15% to GIS system data discrepancies; however, data issues have been resolved and production will increase significantly in September. The IR Scans Completed program has identified several severe hotspot conditions in Redlands District (switches, splices, connectors) and several hot connectors in Arrowhead district

8 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track System Hardening Activities

Composite Composite Pole Installation (SH-3) WCCP WCCP (SH-1) Volume vs 2019 Goal: 81 of 96 (84%) circuit miles installed Poles Volume vs 2019 Goal: 145 of 1,100 (13%) poles installed Key Actions: 324 circuit miles of non-Grid Resiliency overhead Key Actions: The current plan to meet the 1,100 composite pole conductor work has been redesigned for covered conductor in HFRA. installations is more heavily weighted with installations in Q4 2019 as 84% Some of this work will be executed in 2019. Advancing a portion of 13% compared to the original goal plan created in 2018. Work orders Circuit Miles including approximately 900 composite poles are in construction and work scheduled to begin construction in 2020 to 2019. Poles Installed Installed are expected to be complete by year-end. In addition, construction of two circuits have been advanced from 2020 to 2019. Current outlook is Activity is expected to meet goal by year-end. 40

Underground Evaluation of Undergrounding in HFRA (SH-2) Fuses Current Limiting Fuses (SH-4) work in HFRA Volume vs 2019 Goal: On track to conduct assessment of Volume vs 2019 Goal: 7,441 of 7,500 (99%) fuse locations undergrounding for HFRA completed On Key Actions: SCE has identified high risk circuit segments in HFRA for Key Actions: Contractors on track to meet targets. internal evaluation and consideration as a potential wildfire risk 99% Track mitigation. SCE has assembled cross-functional teams including Fuse locations engineering, risk, and local district personnel to further evaluate completed potential underground scope at a local level for mitigation effectiveness, construction feasibility, and conditions/attributes that support undergrounding of overhead lines to mitigate wildfire risk.

9 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track System Hardening Activities

Circuit Breaker RARs Install 50 Remote Controlled Automatic Reclosers Circuit Breaker Fast Curve: Develop Engineering (RARs) (SH-5) Fast Curve Plan to Upgrade Remaining Circuit Breaker Relays Volume vs 2019 Goal: 4 of 50 (8%) RARs installed. Although the and Update Settings (SH-7.1) 8% goal plan assumed 10 installations per month from August through On Volume vs 2019 Goal: CB relays and update settings December, the current plan accelerates RAR installations and will SH-7.1.A: 60 Substations with 300 circuits scoped RARs Installed result in being ahead of plan each month until the goal is met. Track SH-7.1.B: 45 Substations with 68 circuits being scoped Key Actions: Additional RARs are being accelerated from 2020 to Key Actions: 7.1.A Projects scoped and handed off for design. 7.1.B help ensure the successful 2019 outcome for RAR installations Job walks scheduled for scoping activities to be completed by year- end. 41

Circuit Breaker RAR Settings Update At Least 150 Existing RAR Settings (SH-6) Circuit Breaker Fast Curve: Execute Circuit Breaker Volume vs 2019 Goal: 139 of 150 (93%) existing RAR settings Fast Curve Relay and Settings Upgrades according to plan (SH- Key Actions: Install remaining 11RAR settings in substations by year 7.2) end to meet 2019 goal. 93% On Volume vs 2019 Goal: All projects have commenced engineering design, engineering contracts have been issued to the regional RARs Updated Track engineering vendors who are currently working on the design. Construction dates are being scheduled. Key Actions: SH-7.2.A Engineering Milestone - Complete engineering for 22 stations by 3/25/2020, SH-7.2.B Major Materials – Complete procurement of major material for 22 stations by 9/7/2020, SH-7.2.C Construction Complete – In-Service 22 stations by 12/31/2020

10 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track Situational Awareness Activities

Weather Weather Stations (SA-1) Modeling Procure and Install High Performance Computing Stations Volume vs 2019 Goal: 277 of 315 (88%) Weather stations complete System Cluster Weather and Fuels Modeling System (SA-4) Key Actions: Preparing crews for more rural areas; install pace will Volume vs 2019 Goal: 0 out of 2 HPCCs operational slow due to accessibility challenges with remote locations of Key Actions: Continue to support vendor in operationalizing HPCC 88% remaining sites 0% at primary site, expected Q3. Backup site expected to be operational Weather Operational in Q4. Expecting to meet goal by year end. Stations HPCCs

Fire Potential Index Phase 2: Enhance Capabilities of FPI Phase 2 FPI (SA-2) Volume vs 2019 Goal: Enhanced capabilities of FPI by increasing 42 granularity, adding historical climatology data, and expanding to Analytics Develop Asset Reliability & Risk Analytics Capability Complete cover all of SCE’s service territory. (SA-5) Key Actions: Fire Potential Index (FPI) Phase 2 consisted of the FPI On Volume vs 2019 Goal: Complete implementation of advanced being calculated at the circuit level across its HFRA below 6,000 feet. analytics platform and tools. Track Key Actions: SCE has completed an initial prototype of its in- house analytics capabilities to assess the structures/poles and associated conductor with the highest probability for wildfire HD Cameras HD Cameras (SA-3) ignition. SCE will continue to develop and mature its ignition Volume vs 2019 Goal: 56 of 62 (90%) HD cameras installed modeling and the ability of wildfire mitigations to reduce risk at a Key Actions: SCE and UCSD working in close coordination with local structure/pole/conductor level. fire agencies for new camera locations. SCE working closely with local 90% fire agencies and SCE fire management team to site the remaining Cameras locations. Installed

11 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track Vegetation Management Activities

Enhanced Perform Tree Specific Threat Assessments (VM-1.1) DRI Perform All Quarterly DRI Inspections (VM-4.1) Volume vs 2019 Goal: Veg. Mgmt Volume vs 2019 Goal: 50,845 of 125,000 trees (83% of YTD target) Inspection • Quarterly DRI Inspections on track Key Actions: Continue weekly discussions with Assessment • 7,793 trees identified for removal in 2019 YTD contractors regarding status of resource commitments for certified Key Actions: Continue historic continuous inspections (repeating 41% arborists.. 7,793 Trees approximately every 3 months) of areas identified by the CA Tree Trees Identified Mortality Task Force to identify trees that are dead, diseased, or dying. Assessed DRI Tree Inspections & Removals (VM-4.2) Enhanced Volume vs 2019 Goal: >96% of active inventory removed less than Perform Risk-based Tree Removals (VM-1.2) DRI Veg. Mgmt Volume vs 2019 Goal: 1,006 of 7,500 trees (44% of YTD target) 180 days old Removals Key Actions: Address roadblocks for 9,400+ removal prescriptions in • 7,793 trees identified for removal in 2019 YTD inventory. Streamline process for obtaining environmental clearance • 6,970 trees removed in 2019 YTD 13% and permission from private and public property owners. Continue to • Year-end outlook tracking to ~50% of ~30,000 WMP metric

43 Trees strategize locations for assessment based on risk posed by tree 97% forecast Removed density and patrol frequency in addition to wildfire potential. Likely % Active Inv. Key Actions: Continue historic removal of trees identified as dead, will not meet goal due to lack of agency approvals. <180 days diseased, or dying. Easing of drought conditions has reduced the volume of trees requiring removal (30,000 originally forecast based on historic average). Poles Inspect and Clear Brush Around Poles (VM-2) Volume vs 2019 Goal: 49,265 of 100,000 poles (99% of YTD target) LiDAR Inspections of Transmission (220kV and Key Actions: Contractor continues to add resources needed to LiDAR complete work on increased pole population. above) (VM-5) 49% Volume vs 2019 Goal: 290 of 1,000 circuit miles flown (174% of YTD target) Poles Cleared 29% Key Actions: Executed four contracts to obtain LiDAR data on all bulk transmission lines and select sub-transmission lines. Vegetation data Circuit Miles received in Q2 is being used to identify trimming locations in Big Achieve Tree-to-line Clearance Distance of 12 Feet Inspected Creek area to ensure sufficient clearance under maximum conductor Annual in HFRA (VM-3) sag and sway conditions. Pruning Volume vs 2019 Goal: Obtain clearance distance of 12' as achievable QC HFRA Inspect Vegetation Adjacent to T&D Circuit Miles New Clearance Key Actions: New standard (12’ at time of trim) for distribution Inspections (VM-6.1 & VM-6.2) Dist. Trans. Volume vs 2019 Goal: Inspected vegetation adjacent to 476 of 450 Distance voltages piloted in Q1 and Q2. Implemented across HFRA for pruning taking place in June and beyond. Tree-specific exceptions distribution circuit miles and 511 of 400 transmission circuit miles Implemented evaluated to ensure regulatory clearance distance maintained. Hired 106% 128% Key Actions: Independent QC of annual pruning implemented across territory. Evaluates clearance distance obtained and prioritizes “notification consultants” to provide direct customer interaction and Circuit Miles higher QC volume in HFRA. Work is ongoing in accordance with address local opposition to deeper pruning. Working with local Inspected governments that have imposed additional restrictions/approvals to annual cycle. deeper cuts.

12 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track Alternative Technology Activities

Surge Arrestor Alternative Technology Pilots: Pilot Installation of Fault Current Alternative Technology Evaluations: Evaluate Rapid Units Limiters/ Arc 50 CAL FIRE-exempt Surge Arrestor Units (AT-1.1) Suppression Coils Earth Fault Current Limiters/Arc Suppression Coils Volume vs 2019 Goal: 25 of 50 pilot units installed (AT-3.1) 50% Key Actions: Pilot units being installed in Victorville District and plan Volume vs 2019 Goal: Conduct assessment by end of 2019 to have all pilot units installed by end of year. On Key Actions: Candidate substations/circuits identified and Units Installed engineering models for pilot substation built. Simulation testing Track targeted for late September.

Meter Alternative Technology Pilots: Pilot Meter Alarming Fault Alternative Technology Evaluations: Evaluate Alarming for Downed Energized Conductor (AT-1.2) Detection Alternate Fault Detection Technology (AT-3.2)

44 Volume vs 2019 Goal: Completed pilot meter alarming for downed Volume vs 2019 Goal: Conduct technology assessment by end Complete energized conductor On of 2019 Key Actions: Pilot is now operational system wide Key Actions: Open Phase Protection - 12 units installed in alarming Track mode for monitoring. Pilot radio deployment targeted for October. Lab testing of isolation banks targeted for late September.

GSRP Wildfire Mitigation: Evaluate Distribution Alternative Technology Evaluations: Evaluate Fire Fault Devices Fault Anticipation Devices (AT-2.1) Fire Retardant Barrier for Wood Poles (AT-3.3) Volume vs 2019 Goal: Evaluate fault technology and complete pilot Retardant Volume vs 2019 Goal: Evaluate use of wood pole with protective On installation of at least 10 DFA devices. Engineering design is Pole Wraps barrier complete for 60 DFA devices to be installed at 7 substations. 0 Key Actions: Completed evaluation of new fire-retardant wrap for Track installations have been completed as of August 2019. Complete wood poles as an alternative to fire-resistant composite Key Actions: Install all devices per plan prior to year-end. First poles; published associated design standards. Implementing fire- device will be installed October 2019. retardant wrap based on positive testing.

GSRP Wildfire Mitigation: Evaluate Beyond Visual Unmanned Fuses Alternative Technology Evaluations: Evaluate Aerial Systems Line of Sight Unmanned Aerial System (AT-2.2) Substation-class Electronic Fuses (AT-3.4) Volume vs 2019 Goal: Develop statement of work, issue RFP , select Volume vs 2019 Goal: Conduct technology assessment by end of vendor, and perform demonstration flights On 2019 On Key Actions: Next steps include issuing the purchase order, Key Actions: In process of hiring vendor to complete assessment. conducting UAV patrol flights, and drafting a final report on Track Anticipate completing assessment by year-end. Track successes, lesson-learned, and suggestions for operationalization

13 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track Alternative Technology Activities (Cont.)

Branch Line Alternative Technology Evaluations: Evaluate Branch Conductor Alternative Technology Implementation: Develop Protection Line Protection to Include Single Phase Reclosing Rebuild Standard Installation Practices for Ridge Pin (AT-3.5) Standards Construction for Conductor Rebuild (AT-4.2) On Volume vs 2019 Goal: Complete evaluation Volume vs 2019 Goal: Standards published and operational Key Actions: Published pilot FuseSaver standards. Material being Complete Key Actions: Installation practices updated for inclusion of ridge pin Track finalized for pilot unit installs. Targeting 4th quarter installation of 8 construction in high wind areas and is operational. pilot units in Menifee. Evaluation expected to be completed by year end. Alternative Technology Implementation: Update Vibration Alternative Technology Implementation: Develop Dist. Overhead Dampers Standard Installation Practices for Aeolian Vibration Requirements Distribution Overhead Requirements for Connector 45 Dampers (AT-4.1) Selection in HFRA (AT-4.3) On Volume vs 2019 Goal: Evaluate need for aeolian vibration dampers Complete Volume vs 2019 Goal: Design and Construction standards published publish standards for use. Standards published for use of aeolian for connector selection for use in HFRA Track dampers with existing conductor. Key Actions: The connector selection standards updated to Key Actions: SCE is working with vendors on product evaluation for require the use of CAL FIRE exempt bolted wedge connectors when need and use of aeolian dampers with covered conductor. working in HFRA.

14 WMP Activities Status vs. WMP Activity Goals

Not Started Completed Ahead of Plan On Track Off Track Emergency Preparedness Activities

Customer Education and Engagement: Conduct a Direct Mail IMT De- Emergency Responder Training: Conduct Internal Campaign Direct Mail Campaign for HFRA (DEP-1.1) Energization IMT Training Around Wildfire Response and De- Volume vs 2019 Goal: On track to reach approximately 1.5 million Training energization Protocols (DEP-2.2) customers in HFRA through 2019 direct mailer Volume vs 2019 Goal: Conduct internal IMT Training around wildfire On Key Actions: SCE's Dear Neighbor letter to be sent to each customer Complete response and de-energization protocol Track in HFRA commenced on 9/5. Dear Neighbor Letter for customers in Key Actions: Conducted initial training of 175 persons on PSPS non-HFRA is under review and the target mail date by early October. Incident Management Teams; Have continued to train additional persons as needed and identified and will continue trainings as needed. Develop Local Customer Education and Engagement: Develop Meeting Plans Local Government Education and Engagement Enhance Bolster Incident Mgmt. & Support: Determine Meeting Plan (DEP-1.2) Staffing Positions That Need Enhanced Staffing (DEP-3.1) 46 Complete Volume vs 2019 Goal: Develop meeting plan Volume vs 2019 Goal: Currently expanding teams to enable Key Actions: Local Government Education and Engagement additional scalability and additional training sessions will be held for Community Meeting Plan has been developed and is the framework On new personnel being added to the teams; On track to meet year end for SCE's execution. goal Track Key Actions: Stood up dedicated PSPS IMT and Task Force effective June, 2019. Provided specialized training and exercises for all PSPS Execute Local Customer Education and Engagement: Execute Local IMT and Task for members. Meeting Plans Government Education and Engagement Meetings According to Plan (DEP-1.3) Train New Bolster Incident Mgmt. & Support: Train, Exercise, 72% Volume vs 2019 Goal: 105 of 145 (72%) community meetings Staff and Qualify New Staff to Meet Identified Need Cities Key Actions: On track. Of the 145 cities in HFRA, SCE has met with (DEP-3.2) 105 cities as of 9/5/2019 Engaged On Volume vs 2019 Goal: Currently expanding teams to enable additional scalability and additional training sessions will be held for Track new personnel being added to the teams; On track to meet year end goal WF Response Emergency Responder Training: Wildfire Response Key Actions: Stood up dedicated PSPS IMT and Task Force effective Training Training for New or Existing Responders (DEP-2.1) June, 2019. Provided specialized training and exercises for all PSPS Volume vs 2019 Goal: Wildfire response training for new or existing IMT and Task for members. On responders Key Actions: Currently conducting training sessions for PSPS Incident Track Management Teams; On track to meet year-end goal

15 To: RCRC Board of Directors From: Mary-Ann Warmerdam, Senior Legislative Advocate Arthur Wylene, General Counsel Date: December 9, 2019 Re: Water Issues Update

Summary This memo provides an update on current issues involving California water policy.

Background As noted in previous memos, the Newsom Administration has started somewhat deliberately as it reviewed the various items affecting California’s water system. The Governor formalized this review with the issuance of Executive Order N-10-19, at the end of April. See below for additional detail.

State Issue Update

Water Resiliency Initiative Portfolio As noted above, the Governor’s April Executive Order directed state agencies to solicit input from Californians to help shape the roadmap for meeting the future water needs of the state. While seeking to get input on all aspects of California’s water system, the primary focus was to secure insights into ensuring environmental and economic resilience through the 21st century. This was done through a series of workshops held by the California Natural Resources Agency (CNRA), the California Environmental Protection Agency (CalEPA), and the California Department of Food & Agriculture (CDFA) over the course of the summer. Written comments were also accepted through a portal managed by the CNRA which closed earlier this fall. The resulting comments, both written and oral, were provided by a broad range of individuals and organizations, including RCRC.

The goal of this effort was to broaden California’s approach in meeting its water system needs against the backdrop of existing challenges including: unsafe drinking water, major flood risks, severely depleted groundwater basins, and a continuing decline of aquatic species.

The input from this exercise was to be used to inform the agencies of a suite of recommendations which were submitted to the Governor in November. A final draft is expected to be circulated in early January with a finalized document to be released in the first quarter of 2020.

RURAL COUNTY REPRESENTATIVES OF CALIFORNIA 1215 K STREET, SUITE 1650 SACRAMENTO, CA 95814 PHONE: 916-447-4806 FAX: 916-448-3154 WEB: WWW.RCRCNET.ORG

47 Sustainable Groundwater Management Act (SGMA) See separate memo provided in the December 2019 Board Packet.

General Obligation Bonds to Fund Resource Programs During the last two weeks of the Legislative Session, there was a flurry of activity around moving a “resource-based” bond for consideration on the March 2020 ballot. Two vehicles were identified: Senate Bill 45, authored by Senator Ben Allen (D-Santa Monica), and Assembly Bill 352, authored by Assembly Member Eduardo Garcia (D-Riverside). While not identical, the proposals were reasonably similar in the areas identified for investment as well as within $149 million of each other, at approximately $4 billion. It should be noted that the RCRC Board of Directors reviewed and voted to “Support” SB 45 earlier this year.

Neither of these two measures was ultimately considered by the Legislature in the final days of the 2019 Legislative Session. However, both authors have continued to work on amendments over the Fall Recess with an eye toward moving the measures in early January 2020 to be included on the March 2020 ballot. While technically possible, it is considered to be unlikely that one (or both) measures would have the political support needed to move that quickly upon the Legislature’s return in January, particularly given that the Administration is signaling a reluctance to move a bond prior to their releasing the Water Resilience Initiative Portfolio as authorized by the Governor’s Executive Order issued this summer.

Two additional measures are also “in play”: Assembly Bill 1298, authored by Assembly Member Kevin Mullin (D-San Mateo), which touches on some of the same areas as SB 45 and AB 352. However, the current version of AB 1298 is lacking detail in key policy areas as well as clarity in how the funding will be allocated. Nevertheless, the author has indicated he will be providing amendments to the Assembly Water, Parks & Wildlife Committee for their consideration upon their return in January. The final bond proposal is being circulated by the Conservation Strategy Group through the initiative process for the March 2020 ballot as well.

Federal Update

The Water Quality Protection and Job Creation Act On October 29th, the House Committee on Transportation and Infrastructure approved the Water Quality Protection and Job Creation Act (H.R.1497). The bill was introduced by Chairman Peter A. DeFazio (D-Oregon), Water Resources Subcommittee Chairwoman Grace F. Napolitano (D-California), and Representatives Don Young (R-Alaska) and John Katko (R-New York). This bill authorizes federal appropriations for major Clean Water Act infrastructure programs administered by the U.S. Environmental Protection Agency (EPA), including the Clean Water State Revolving Fund (SRF). The SRF, the primary source of federal funding for wastewater infrastructure, was last reauthorized by Congress in 1987 and expired in 1994. Since then, Congress has continued to fund our nation’s wastewater infrastructure through annual appropriations bills, providing more than $43 billion in federal capitalization assistance to states since 1987. This also includes a recommended appropriation of $1.784 billion for the SRF in the fiscal year 2020 appropriations bill (H.R. 3055). These designated appropriations contain assistance specifically for small and rural communities across the country to improve their

48 wastewater infrastructure by ensuring that these communities receive the resources needed to help address their infrastructure, as well as additional permit flexibility to help communities address local water quality challenges. RCRC is reviewing this measure.

Drought Resiliency and Water Supply Infrastructure Act On June 20th, Senator Dianne Feinstein introduced S. 1932, the Drought Resiliency and Water Supply Infrastructure Act, a bipartisan bill that builds on Feinstein’s 2016 drought legislation - the Water Infrastructure Improvements for the Nation (WIIN) Act). S. 1932 would: 1) extend the WIIN Act for an additional five years; 2) create a new loan program for water agencies at 30-year U.S. Treasury rates to attract new investment in water supply projects; and, 3) authorize $140 million in habitat restoration and environmental compliance projects. The five-year extension of the WIIN Act is projected to lead to $670 million of investment for surface and groundwater storage projects and provide; $100 million for water recycling projects. The bill did receive a hearing in the Senate Energy and Water Subcommittee on Water and Power on July 18th. However, more recently, it has lost momentum as is not considered likely to move further; RCRC has a “Watch” position on the measure.

SAVE Water Resources Act On June 13th, the House Natural Resources Subcommittee on Water, Oceans, and Wildlife (Committee) held a hearing on H.R. 2473, the SAVE Water Resources Act introduced by freshman Representative Josh Harder (D-Stanislaus). The bill would increase water storage in California, promote innovation, and invest in rural water infrastructure. The bill has not yet received a full markup, but is expected to move through the Committee following regular order. RCRC supports this measure; however, there has been no recent action.

Water Resources Research Amendments Act Also introduced by Representative Harder, H.R. 3510 is an additional water-related measure. This measure was briefly considered during a legislative hearing in the House Natural Resources Subcommittee on Water, Oceans, and Wildlife. The legislation would re-authorize a program discontinued in 2011 that was designed to create water resource research institutions with a focus on finding locally tailored solutions to water challenges. H.R. 3510 would authorize the program through 2024, and places an emphasis on finding modern solutions to address water problems. In addition, it would address problems that arise in agriculture during times of drought. RCRC is reviewing the measure.

Water Justice Act On July 22nd, Senator Kamala Harris introduced the draft text of the Water Justice Act, a measure that would invest $250 billion in projects that provide safe drinking water, at an affordable rate, sustainably. The Water Justice Act would also declare a drinking water infrastructure emergency, and direct $50 billion in emergency funds toward communities and schools with contaminated drinking water for testing and remediation of contaminants. In addition, the bill would provide $170 million in programs previously authorized by the Safe Drinking Water Act and Clean Water Act. The Water Justice Act provides states with assistance to offset the cost of water bills for low-income communities and households “that are environmentally at-risk”. An additional $20 billion in water sustainability and conservation programs would also be authorized under this measure.

49 The measure was officially introduced during the first week of September and does not have a co-sponsor in the Senate. The House version of the bill was introduced by Representatives Daniel Kildee (D-Michigan) and Brenda Lawrence (D-Michigan).

Bureau of Reclamation: Friant-Kern Canal Fix Last week, the Bureau of Reclamation announced it is seeking public comment on its plan to restore a 33-mile stretch of the Friant-Kern Canal which has lost over half of its capacity due to subsidence. The Canal, which was designed to deliver water to over 1-million acres of farmland in the eastern San Joaquin Valley, is a key component of California’s water infrastructure and will be critical in addressing long-term sustainability of the region’s groundwater aquifers. The Friant Water Authority, the non-federal operating entity for the canal, is supporting the design and feasibility assessment of the proposed project and is working with the Bureau of Reclamation to meet state and federal environmental requirements.

The Bureau published the notice in the Federal Register asking for comments over the next 30 days. In addition, the Bureau plans to hold a scoping meeting in Porterville on December 18th from 5:30 p.m. to 7:30 p.m. at the US Forest Service Office. A copy of the notice and the environmental documents may be found online at https://www.usbr.gov/mp/nepa/nepa_project_details.php?Project_ID=41341.

Staff Recommendation Information Only. RCRC staff will continue to engage in these policy areas as necessary to ensure the concerns of RCRC member counties are addressed.

50 State Legislative Update December 9, 2019

Agriculture CA AB 409 AUTHOR: Limon [D] TITLE: Climate Change: Agriculture: Agricultural Climate LAST AMEND: 08/12/2019 SUMMARY: Requires the Strategic Growth Council to provide guidance in the development of, and to coordinate the activities of member agencies of the council for, a grant program, known as the Agricultural Climate Adaptation Tools Program. Provides for developing resiliency strategies in the agricultural sector, using the best available science. Requires the Council to conduct specified pilot projects that meet needs of certain farmers and ranchers. STATUS: 08/30/2019 In SENATE Committee on APPROPRIATIONS: Held in committee. Lobbyist: John, Mary-Ann Position: Watch 03/27/2019

CA AB 468 AUTHOR: Muratsuchi [D] TITLE: Pesticides: Schoolsites: Organic Landscape Management LAST AMEND: 04/22/2019 SUMMARY: Prohibits the outdoor use at a schoolsite of a pesticide that contains glyphosate. Requires pest management practices employed in place of the use of glyphosate at a schoolsite are consistent with the state policy to use effective least toxic pest management practices at schoolsites. Adds to the duties of schools. Imposes a state mandated local program. Provides that, if the Commission on State Mandates determines mandated costs are included, reimbursement shall be made pursuant to statutory provisions. STATUS: 04/22/2019 From ASSEMBLY Committee on EDUCATION with author's amendments. 04/22/2019 In ASSEMBLY. Read second time and amended. Re-referred to Committee on EDUCATION. Lobbyist: Mary-Ann Position: Watch 02/12/2019

CA AB 916 AUTHOR: Muratsuchi [D] TITLE: Pesticide Use: Glyphosate LAST AMEND: 06/20/2019 SUMMARY: Prohibits a city, county, charter city, city and county, or a special district, as defined, from using any pesticide that contains the active ingredient glyphosate. STATUS: 06/26/2019 Re-referred to SENATE Committees on AGRICULTURE and ENVIRONMENTAL QUALITY. Lobbyist: Mary-Ann Position: Oppose 06/28/2019

51 CA AB 986 AUTHOR: Rivas R [D] TITLE: REEAL Act LAST AMEND: 04/22/2019 SUMMARY: Enacts the Regional Economies and Equity in Agricultural Lands Act. Requires the Department of Conservation, in consultation with the Department of Food and Agriculture, to establish the REEAL Program and Fund. Requires the Department, under the Program, to award grants to certain eligible entities to protect agricultural lands and to make agricultural lands accessible to socially disadvantaged farmers and ranchers. STATUS: 05/16/2019 In ASSEMBLY Committee on APPROPRIATIONS: Held in committee. Lobbyist: Mary-Ann Position: Watch 04/16/2019

CA SB 253 AUTHOR: Dodd [D] TITLE: Environmental Farming Incentive Program LAST AMEND: 08/14/2019 SUMMARY: Requires the Scientific Advisory Panel on Environmental Farming to assist government agencies to incorporate the conservation of natural resources and ecosystem services practices into agricultural programs. Requires the Department of Food and Agriculture with advice from the Panel, to establish and administer the California Environmental Farming Incentive Program to support on farm practices seeking to optimize environmental benefits while supporting the state's agricultural economy. STATUS: 08/30/2019 In ASSEMBLY Committee on APPROPRIATIONS: Held in committee. Lobbyist: Mary-Ann Position: Support 08/16/2019

Cannabis CA AB 1356 AUTHOR: Ting [D] TITLE: Cannabis: Local Jurisdictions: Commercial Cannabis LAST AMEND: 05/16/2019 SUMMARY: Exempts a local jurisdiction that, on or before, and until specified dates, submitted to the electorate of that jurisdiction, a certain local ordinance or resolution relating to retail cannabis commercial activity that received a specified vote of the electorate. Provides that these provisions are prohibited from being construed to require a local jurisdiction to authorize adult use retail cannabis commercial activity. STATUS: 05/30/2019 In ASSEMBLY. From third reading. To Inactive File. Lobbyist: Paul Position: Oppose 05/21/2019

CA SB 153 AUTHOR: Wilk [R] TITLE: Industrial Hemp LAST AMEND: 09/05/2019

52 SUMMARY: Revises provisions regulating the cultivation and testing of industrial hemp to conform with the requirements for a state plan under the federal Agricultural Marketing Act and federal Agriculture Improvement Act. Revises the definition of industrial hemp and replacing the terms "seed breeder," "seed cultivar," and "seed development plan" with the defined terms "hemp breeder," "cultivar," and "variety development plan," respectively. STATUS: 10/12/2019 Chaptered by Secretary of State. Chapter No. 2019-838 Lobbyist: Paul Position: Support 09/09/2019

CA SB 527 AUTHOR: Caballero [D] TITLE: Williamson Act: Cultivation of Cannabis and Hemp LAST AMEND: 06/17/2019 SUMMARY: Authorizes rules to provide that commercial cultivation of cannabis pursuant to the Medical and Adult-use Cannabis Regulation and Safety may constitute a compatible use on contracted or noncontracted lands within an agricultural preserve. STATUS: 09/06/2019 *****To GOVERNOR. 09/06/2019 Signed by GOVERNOR. 09/06/2019 Chaptered by Secretary of State. Chapter No. 2019-273 Lobbyist: Paul Position: Support 06/25/2019

Climate Change CA AB 352 AUTHOR: Garcia E [D] TITLE: Wildfire Prevention, Safe Drinking Water LAST AMEND: 08/14/2019 SUMMARY: Enacts the Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of 2020, which, if approved by the voters, would authorize the issuance of bonds in the amount of $3,920,000,000 pursuant to the State General Obligation Bond Law to finance a wildlife prevention, safe drinking water, drought preparation, and flood protection program. STATUS: 08/14/2019 From SENATE Committee on ENVIRONMENTAL QUALITY with author's amendments. 08/14/2019 In SENATE. Read second time and amended. Re-referred to Committee on ENVIRONMENTAL QUALITY. Lobbyist: John, Staci Position: Watch 02/05/2019

Corrections CA SB 144 AUTHOR: Mitchell [D] TITLE: Criminal Fees LAST AMEND: 05/21/2019 SUMMARY: Repeals the authority to collect these fees, among others. Makes the unpaid balance of any court-imposed costs unenforceable and uncollectible and would

53 require any portion of a judgment imposing those costs to be vacated. Deletes the authority of the court to impose liens on the defendant's property and make a post-trial determination of the defendant's ability to pay and to order the defendant to pay the costs of the public defender. STATUS: 07/09/2019 In ASSEMBLY Committee on PUBLIC SAFETY: Not heard. Lobbyist: Paul Position: Oppose 06/18/2019

Emergency Services CA SB 160 AUTHOR: Jackson [D] TITLE: Emergency Services: Cultural Competence LAST AMEND: 09/03/2019 SUMMARY: Requires a county to integrate cultural competence into its emergency plan upon the next update to its emergency plan. Requires a county to provide a forum for community engagement in geographically diverse locations in order to engage with culturally diverse communities. STATUS: 10/02/2019 Signed by GOVERNOR. 10/02/2019 Chaptered by Secretary of State. Chapter No. 2019-402 Lobbyist: Tracy Position: Watch 01/29/2019

Energy CA SB 378 AUTHOR: Wiener [D] TITLE: Electrical Corporations: Deenergization Events LAST AMEND: 09/06/2019 SUMMARY: Requires an electrical corporation to annually report to the commission, the Office of Emergency Services, the Department of Forestry and Fire Protection, the Independent System Operator, and county governments within its service territory on the age, useful life, and condition of the electrical corporation's equipment, including the date of most recent inspection and maintenance records. STATUS: 09/06/2019 From SENATE Committee on RULES with author's amendments. 09/06/2019 In SENATE. Read second time and amended. Re-referred to Committee on RULES. Lobbyist: John Position: Pending 12/09/2019

CA AB 1347 AUTHOR: Boerner Horvath [D] TITLE: Electricity: Renewable Energy SUMMARY: Establishes the policy of the state that eligible renewable energy resources and zero carbon resources supply a percentage of all retail sales of electricity to state and local government buildings by a certain date, and to all the State end use customers by a certain date. STATUS: 03/11/2019 To ASSEMBLY Committees on UTILITIES AND ENERGY and

54 NATURAL RESOURCES. Lobbyist: John Position: Pending 02/25/2019

CA SB 584 AUTHOR: Moorlach [R] TITLE: Electricity: Undergrounding of Electrical Wires LAST AMEND: 04/29/2019 SUMMARY: Requires the Public Utilities Commission to require electrical corporations to develop and administer programs to provide matching funds to local jurisdictions for conversion projects to replace overhead electrical infrastructure with underground electrical infrastructure in a Tier 3 High Fire-threat District or wildland urban interface area. STATUS: 05/16/2019 In SENATE Committee on APPROPRIATIONS: Held in committee. Lobbyist: John Position: Watch 12/05/2019

CA SB 774 AUTHOR: Stern [D] TITLE: Electricity: Microgrids LAST AMEND: 05/01/2019 SUMMARY: Requires each electrical corporation to collaborate with certain entities in its service territory to identify locations where sources of back-up electricity may provide increased electrical distribution grid resiliency. Authorizes electrical corporations to file applications with the Public Utilities Commission to invest in, and deploy, microgrids to increase that resiliency and prohibits the Commission from approving microgrid applications that use a certain cost-recovery mechanism. STATUS: 06/06/2019 To ASSEMBLY Committee on UTILITIES AND ENERGY. Lobbyist: John Position: Watch 05/28/2019

Fish & Wildlife CA AB 1788 AUTHOR: Bloom [D] TITLE: Pesticides: Use of Anticoagulants LAST AMEND: 06/24/2019 SUMMARY: Creates the California Ecosystems Protection Act of 2019 and expand this prohibition against the use of a pesticide containing specified anticoagulants in wildlife habitat areas to the entire state. Expands the exemption for agricultural activities to include activities conducted in certain locations and would also exempt from its provisions the use of pesticides by any governmental agency employee who uses pesticides for public health activities. STATUS: 08/19/2019 In SENATE Committee on APPROPRIATIONS: Not heard. Lobbyist: Mary-Ann Position: Watch 02/25/2019

55 Housing CA ACA 1 AUTHOR: Aguiar-Curry [D] TITLE: Local Government Financing: Affordable Housing LAST AMEND: 03/18/2019 SUMMARY: Creates an exception to the 1% limit on the ad valorem property tax rate on real property that would authorize a city or county to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing, if the proposition proposing that tax is approved by 55% of the voters of the city or county. STATUS: 08/19/2019 In ASSEMBLY. Read third time. Failed to pass ASSEMBLY. (44-20) 08/19/2019 In ASSEMBLY. Motion to reconsider. Lobbyist: Paul, Tracy Position: Support 05/09/2019

CA SCA 1 AUTHOR: Allen [D] TITLE: Public Housing Projects SUMMARY: Repeals provisions prohibiting the development, construction, or acquisition of a low-rent housing project in any manner by any state public body until a majority of the qualified electors of the jurisdiction in which the development, construction, or acquisition of the project is proposed approve the project by voting in favor at an election. STATUS: 09/10/2019 In SENATE. Read third time. Adopted by SENATE. *****To ASSEMBLY. (40-0) Lobbyist: Tracy Position: Support 07/24/2019

Juveniles CA SB 284 AUTHOR: Beall [D] TITLE: Juvenile Justice: County Support of Wards LAST AMEND: 04/09/2019 SUMMARY: Increases an annual rate, as specified, by persons committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, if the offense on which the commitment is based, had it been filed in a court of criminal jurisdiction at the time of adjudication, had a maximum aggregate sentence of fewer than 7 years or if the offense on which the commitment is based occurred when the person was 15 years of age or younger. STATUS: 10/12/2019 Vetoed by GOVERNOR. Lobbyist: Paul Position: Oppose 09/05/2019

Land Use/Planning CA AB 1483 AUTHOR: Grayson [D] TITLE: Housing Data: Collection and Reporting LAST AMEND: 09/06/2019

56 SUMMARY: Requires a city, county, or special district to maintain on its internet website a current schedule of fees, exactions, and affordability requirements imposed by the city, county, or special district, including any dependent special district, applicable to a proposed housing development project, all zoning ordinances and development standards, and annual fee reports or annual financial reports. STATUS: 10/09/2019 Chaptered by Secretary of State. Chapter No. 2019-662 Lobbyist: Tracy Position: Oppose.Unless.Amend 08/16/2019

CA AB 1484 AUTHOR: Grayson [D] TITLE: Mitigation Fee Act: Housing Developments LAST AMEND: 09/06/2019 SUMMARY: Prohibits a local agency from imposing a housing impact requirement adopted by the local agency on a housing development project, as defined, unless specified requirements are satisfied by the local agency, including that the housing impact requirement be roughly proportional in both nature and extent to the impact created by the housing development project. STATUS: 09/09/2019 In SENATE. Read second time. To third reading. 09/09/2019 In SENATE. Senate Rule 29.10(b) suspended. 09/09/2019 Re-referred to SENATE Committee on RULES. Lobbyist: Tracy Position: Pending 08/27/2019

CA SB 182 AUTHOR: Jackson [D] TITLE: Local Government: Planning and Zoning: Wildfires LAST AMEND: 09/06/2019 SUMMARY: Requires the safety element, upon the next revision of the housing element or the hazard mitigation plan, on or after January 1, 2020, whichever occurs first, to be reviewed and updated as necessary to include a comprehensive retrofit strategy to reduce the risk of property loss and damage during wildfires, as specified. Requires the planning agency to submit the adopted strategy to the Office of Planning and Research for inclusion. STATUS: 09/13/2019 From SENATE Committee on HOUSING: Return to the Floor for further consideration. (10-0) 09/13/2019 In SENATE. Ordered returned to ASSEMBLY. *****To ASSEMBLY. Lobbyist: Staci, Tracy Position: Support 08/16/2019

Parks/Conservancies CA AB 1111 AUTHOR: Friedman [D] TITLE: Office of Outdoor Recreation LAST AMEND: 08/12/2019 SUMMARY: Establishes the Office of Outdoor Recreation in the Office of the Governor. Requires the Office to undertake certain activities, including supporting the

57 outdoor recreation economy and working toward equitable access to outdoor areas of the state by engaging in specified activities. Requires the Office to create an advisory committee to provide advice, expertise, support, and service to the office. Authorizes the Office to receive the assistance and funds from public and private sources. STATUS: 08/30/2019 In SENATE Committee on APPROPRIATIONS: Held in committee. Lobbyist: Mary-Ann Position: Support 07/24/2019

Public Records CA AB 212 AUTHOR: Bonta [D] TITLE: Counties: Recording Fees LAST AMEND: 04/01/2019 SUMMARY: Authorizes a fee for each document filed with a county recorder to be used for restoration and preservation of the county recorder's permanent archival microfilm, to implement and fund a county recorder archive program as determined by the county recorder, or to implement and maintain or utilize a trusted system for the permanent preservation of recorded document images. STATUS: 07/01/2019 Chaptered by Secretary of State. Chapter No. 2019-41 Lobbyist: Tracy Position: Watch 01/24/2019

Resources CA AB 1298 AUTHOR: Mullin [D] TITLE: Bond Act LAST AMEND: 08/22/2019 SUMMARY: Enact the Climate Resiliency, Fire Risk Reduction, Recycling, Groundwater and Drinking Water Supply, Clean Beaches, and Jobs Infrastructure Bond Act which would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance a climate resiliency, fire risk reduction, recycling, groundwater and drinking water supply, clean beaches, and jobs infrastructure program. STATUS: 09/06/2019 Re-referred to ASSEMBLY Committee on WATER, PARKS AND WILDLIFE. Lobbyist: John, Mary-Ann Position: Watch 12/05/2019

CA SB 633 AUTHOR: Stern [D] TITLE: Toxic Substances: Cleanup Standards LAST AMEND: 09/06/2019 SUMMARY: Requires that any cleanup standards finalized, on and after a specified date, by the Department of Toxic Substances Control for a site contaminated with any material over which the Department has jurisdiction to be, at a minimum, protective of reasonably foreseeable land uses of the site. Requires the Department to consider the history of, and potential for, future migration of

58 contamination offsite or to groundwater or surface water. STATUS: 09/06/2019 In ASSEMBLY. Read third time and amended. To third reading. 09/06/2019 In ASSEMBLY. Assembly Rule 77.2 suspended. 09/06/2019 Re-referred to ASSEMBLY Committee on ENVIRONMENTAL SAFETY AND TOXIC MATERIALS. Lobbyist: John Position: Pending

Solid Waste CA SB 634 AUTHOR: Glazer [D] TITLE: Beverage Container Recycling and Litter Reduction Act LAST AMEND: 09/06/2019 SUMMARY: Increases the total number of exemptions that may be granted to 40% of the number identified as eligible. Requires the department to review exemptions every 2 years to determine if each exemption still meets the prescribed exemption criteria. STATUS: 09/13/2019 In ASSEMBLY. Suspend Assembly Rule 96. 09/13/2019 Re-referred to ASSEMBLY Committee on RULES. Lobbyist: John Position: Watch

CA AB 1080 AUTHOR: Gonzalez [D] TITLE: Solid Waste: Packaging and Products LAST AMEND: 09/09/2019 SUMMARY: Enacts the California Circular Economy and Pollution Reduction Act. Imposes a comprehensive regulatory scheme on producers, retailers, and wholesalers of single-use packaging, as defined, and priority single-use products, as defined, to be administered by the department. STATUS: 09/14/2019 In SENATE. From third reading. To Inactive File. Lobbyist: John Position: Support 09/12/2019

CA AB 1509 AUTHOR: Mullin [D] TITLE: Solid Waste: Lithium Ion Batteries LAST AMEND: 05/01/2019 SUMMARY: Establishes the Lithium Ion Battery Recycling Program in the Department of Resources Recycling and Recovery. Requires a covered entity to provide a list of covered products that it sells or offers for sale in the state to the department and the total number of each covered product it sold in the state during the prior year, and to update those lists annually. STATUS: 06/06/2019 To SENATE Committee on ENVIRONMENTAL QUALITY. Lobbyist: John Position: Support.In.Concept 04/05/2019

59 CA SB 54 AUTHOR: Allen [D] TITLE: Solid Waste: Packaging and Products LAST AMEND: 09/10/2019 SUMMARY: Amends the Alcoholic Beverage Control Act. Authorizes the Department of Alcoholic Beverage Control to suspend or revoke the certificate of compliance of an out of state vendor that fails to comply with the provisions of the State Circular Economy and Pollution Reduction Act. STATUS: 09/12/2019 In ASSEMBLY. Read second time. To third reading. Lobbyist: John, Mary, Staci Position: Support 09/09/2019

CA SB 68 AUTHOR: Galgiani [D] TITLE: Hazardous Waste: Treated Wood Waste LAST AMEND: 09/03/2019 SUMMARY: Relates to existing law which requires each wholesaler and retailer of treated wood and treated wood-like products to post information that contains a specified message at or near the point of display or customer selection of the products. Requires the message to include an additional specified statement relating to the internet website at which the list of approved landfills that accept treated wood waste can be found. STATUS: 09/11/2019 In ASSEMBLY. To Inactive File. Lobbyist: John, Staci Position: Support 05/28/2019

Telecommunications CA AB 1366 AUTHOR: Daly [D] TITLE: Voice Over Internet Protocol LAST AMEND: 09/06/2019 SUMMARY: Extends until a specified date the qualified prohibition upon the commission, a department, an agency, or a political subdivision of the state regulating VoIP and Internet Protocol enabled service, with the additional qualification that the commission, a department, an agency, or a political subdivision of the state would be authorized to exercise regulatory jurisdiction and control as expressly and specifically directed by the Legislature in the interest of public safety, or consumer protection. STATUS: 09/11/2019 In SENATE Committee on ENERGY, UTILITIES AND COMMUNICATIONS: Held in committee. Lobbyist: Tracy Position: Pending 04/15/2019

CA SB 431 AUTHOR: McGuire [D] TITLE: Mobile Telephony Service Base Transceiver Station Tower LAST AMEND: 06/12/2019 SUMMARY: Requires the commission, in consultation with the Office of Emergency Services, to develop and implement performance reliability standards, as specified, for all mobile telephony service base transceiver station towers, commonly known as

60 "cell towers," located within a commission-designated Tier 2 or Tier 3 High Fire Threat District. STATUS: 06/17/2019 Re-referred to ASSEMBLY Committee on COMMUNICATIONS AND CONVEYANCE. Lobbyist: John, Tracy Position: Pending 06/17/2019

CA SB 670 AUTHOR: McGuire [D] TITLE: Telecommunications: Community Isolation Outage LAST AMEND: 09/03/2019 SUMMARY: Requires the Office of Emergency Services, on or before a specified date, to adopt, by regulation, appropriate thresholds for a community isolation outage. Requires a provider of telecommunications services, that provides access to 911 services to notify the Office, as provided, whenever a community isolation outage limiting the provider's customers' ability to make 911 calls or receive emergency notifications. STATUS: 10/02/2019 Signed by GOVERNOR. 10/02/2019 Chaptered by Secretary of State. Chapter No. 2019-412 Lobbyist: Tracy Position: Support 08/16/2019

Water CA AB 441 AUTHOR: Eggman [D] TITLE: Water: Underground Storage LAST AMEND: 03/27/2019 SUMMARY: Provides that any diversion of water to underground storage constitutes a diversion of water for beneficial use for which an appropriation may be made if the diverted water is put to beneficial use. Provides that the forfeiture periods of a water right do not include any period when the water is being used in the aquifer or storage area or is being held in underground storage for later application to beneficial use. STATUS: 05/16/2019 In ASSEMBLY Committee on APPROPRIATIONS: Held in committee. Lobbyist: Mary-Ann Position: Pending 02/12/2019

CA SB 45 AUTHOR: Allen [D] TITLE: Wildfire Prevention, Drinking Water, Drought, and Flood LAST AMEND: 09/10/2019 SUMMARY: Enacts the Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act, which, if approved by the voters, would authorize the issuance of bonds to the State General Obligation Bond Law to finance projects for a wildfire prevention, safe drinking water, drought preparation, and flood protection program. STATUS: 09/10/2019 From SENATE Committee on APPROPRIATIONS with author's amendments.

61 09/10/2019 In SENATE. Read second time and amended. Re-referred to Committee on APPROPRIATIONS. Lobbyist: Mary-Ann Position: Support 05/02/2019

CA SB 204 AUTHOR: Dodd [D] TITLE: State Water Project: Contracts LAST AMEND: 05/17/2019 SUMMARY: Requires the Department of Water Resources to provide at least 10 days' notice to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature before holding public sessions to negotiate any potential amendment of a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, or that would permanently transfer a contractual water amount between contractors. STATUS: 06/06/2019 To ASSEMBLY Committee on WATER, PARKS AND WILDLIFE. Lobbyist: Mary-Ann Position: Watch 02/05/2019

CA SB 414 AUTHOR: Caballero [D] TITLE: Small System Water Authority Act of 2019 LAST AMEND: 06/25/2019 SUMMARY: Creates the Small System Water Authority Act of 2019 and states legislative findings and declarations relating to authorizing the creation of small system water authorities that will have powers to absorb, improve, and competently operate noncompliant public water systems. STATUS: 08/30/2019 In ASSEMBLY Committee on APPROPRIATIONS: Held in committee. Lobbyist: Mary-Ann Position: Support 08/16/2019

CA SB 559 AUTHOR: Hurtado [D] TITLE: California Water Commission: Grant: Friant-kern Canal LAST AMEND: 07/03/2019 SUMMARY: Appropriates funds to the Department of Water Resources for the purposes of restoring the Friant-kern Canal to its full capacity. Requires the grant to be part of a comprehensive solution to groundwater sustainability and subsidence in the San Joaquin Valley and would require the joint powers authority to demonstrate a funding match of at least 35% from user fees, local sources, federal funding, or a combination of these sources. STATUS: 08/30/2019 In ASSEMBLY Committee on APPROPRIATIONS: Held in committee. Lobbyist: Mary-Ann Position: Support 06/13/2019

62 To: RCRC Board of Directors From: Paul A. Smith, Vice President Governmental Affairs Sheryl Cohen, Partner, American Continental Group Date: December 9, 2019 Re: Federal Legislative Update

Summary This memo provides an update on a number of issues being addressed at the federal level.

Issues

Secure Rural Schools and Payments In Lieu of Taxes On Thursday, November 21st, the Senate Energy & Natural Resources Committee held a hearing titled “Full Committee Hearing on SRS and PILT, and to Receive Testimony on Pending Legislation.” The panel featured the Director of the Office of Budget at the U.S. Department of the Interior, the Associate Deputy Chief at the Forest Service, a representative from the National Association of Counties (NACo), and a High School science teacher from rural West Virginia. The hearing featured virtually unanimous support for continued funding of the Secure Rural Schools (SRS) and Payments in Lieu of Taxes (PILT) programs. Throughout the proceedings, Senators made reference to their local counties that rely so heavily on these programs and expressed concern over the “roller coaster” each county has to endure in determining whether or not funds will be properly allocated each year. Witnesses called for either a longer-term or permanent funding allocation. Three bills were discussed by the Senators that would work toward this goal. The first bill was titled “A bill to extend the Secure Rural Schools and Community Self-Determination Act of 2000” (S. 430), which would provide two additional years of authorization for SRS. The second bill was titled the “Forest Management for Rural Stability Act” (S.1643), which would create a permanent endowment fund to ensure that SRS and PILT remain funded indefinitely. This fund would begin with an initial investment from Congress and comprise of annual deposits from payments of the forest revenue sharing program. The interest from this endowment would then subsequently fund SRS and PILT. The third bill was titled the “Small County PILT Parity Act” (S. 2108), which would expand existing PILT to include counties that have a population of less than 5,000 people, without affecting funding for larger counties.

RURAL COUNTY REPRESENTATIVES OF CALIFORNIA 1215 K STREET, SUITE 1650 SACRAMENTO, CA 95814 PHONE: 916-447-4806 FAX: 916-448-3154 WEB: WWW.RCRCNET.ORG

63 Appropriations On November 21st, the previous continuing resolution (CR) was extended through December 20th. Currently, Congress is scrambling to determine which bills can be approved by the deadline and which departments will have to operate on another CR likely running into early next year. Combining the 12 annual spending bills into an omnibus package would be the quickest way for appropriators to wrap up the process, but it also could increase the odds of a stalemate with the White House over border wall funding. House Democratic are insisting that such a complete omnibus package must be finalized before any of the individual 12 spending bills can reach the floor. On December 3rd, Senate Appropriations Chairman Richard Shelby (R-Alabama) expressed doubt that all 12 bills could be finalized before the December 20th deadline.

Moreover, not much progress has been made between Democrats and Republicans on trying to get approximately $30 billion in tax extenders on any such year-end CR. The Democratic priority list for such extenders is currently too large for Republicans to handle because it includes the Child Tax Credit (CTC) and addressing “the Cadillac tax,” which helps to fund the Affordable Care Act, among non-starters for Republicans.

Cannabis and Hemp Banking On November 20th, the Democratic-controlled House Judiciary Committee passed the “Marijuana Opportunity, Reinvestment and Expungement” (MORE) Act (H.R. 3884) in a 24-10 vote, setting the stage for a full House Floor vote. The vote saw two Republicans, Representatives Matt Gaetz (R-Florida) and Tom McClintock (R-California), join the Democrats in support of the bill. The bill would remove marijuana from the list of federally controlled substances, allow states to set their own marijuana policy, and require federal courts to expunge prior convictions for marijuana offenses. A 5% tax on marijuana products would also establish a trust fund for programs designed to help people disproportionately impacted by the "war on drugs," including job training and treatment for substance abuse.

Taking marijuana off of the controlled substance list is crucial for cannabis banking advocates because de-scheduling the plant would effectively accomplish the same goals as the previously reported on “Secure And Fair Enforcement” (SAFE) Banking Act of 2019 (H.R. 1595). The House approved the SAFE Banking Act in September, along largely bipartisan lines but questions remain as to if and when action will be taken in the Senate. Senate Banking Committee Chair Mike Crapo (R-Idaho) said in an interview that he would like to hold a vote on a bipartisan marijuana banking bill “as soon as we can,” but also acknowledged that the House impeachment inquiry into President Trump may delay congressional action on cannabis reform.

On November 19th, federal and state financial regulatory agencies issued guidance clarifying that banks no longer have to take extra steps to report their customers for cultivating hemp. Until hemp was legalized under the 2018 Farm Bill, banks that worked with hemp growers were required to file suspicious activity reports (SARs) for accounts associated with the crop. It took the USDA almost a year to finalize rules for the industry, but once they were released on October 31st, bank regulators prepared to take action.

64 Rural Broadband and Telecommunications On November 20th, the House Energy and Commerce Committee voted and passed out of committee the “Broadband Deployment Accuracy and Technological Availability Act” or the Broadband DATA Act (HR 4229), which would require the government to collect granular information about which areas in the U.S. have access to high-speed internet and which do not. The Senate Commerce Committee advanced its own version of the Broadband DATA Act earlier this year, meaning there is significant momentum to move the bill to President Trump's desk.

Additionally, there have been numerous legislative proposals introduced in recent weeks related to rural broadband. Some of the key proposals include: the Broadband Parity Act, bipartisan legislation introduced by Senators Shelley Moore Capito (R-West Virginia) and Jacky Rosen (D-Nevada), that would bring all federal broadband programs to the current definition of what the Federal Communications Commission (FCC) defines as high-speed internet (currently 25/3 Mbps); the “Rural Broadband Financing Flexibility Act” (S. 2866), led by Senator Capito, which would allow state and local governments to issue tax- exempt bonds to finance public-private rural broadband projects, and allow the federal government to assist state and local governments in bond payments; and the “Rural Broadband Investment Tax Credit Act” (S. 2867), led by Senator Maggie Hassan (D-New Hampshire) which would create a federal tax credit that states and localities could direct toward rural broadband projects.

On December 4th, Federal Communications Commission (FCC) Chairman Ajit Pai announced his intention to establish the 5G Fund, which would provide up to $9 billion in Universal Service Fund support available to carriers to deploy advanced 5G mobile wireless services in rural America, with a particular focus on hard-to-serve areas with sparse populations and/or rugged terrain. This fund would replace the planned Mobility Fund Phase II, which would have provided federal support for 4G LTE service in unserved areas. However, FCC staff found too many problems in the programs’ broadband mapping accuracy to continue. The new fund would also set aside at least $1 billion specifically for deployments facilitating precision agriculture needs.

Disaster Relief Representative Mike Thompson’s (D-Napa) Disaster Tax Relief Bill (H.R. 3301) was approved by the House Committee on Ways and Means in June but has since been struggling to make its way out of the House. The bill includes an extension of important disaster tax relief provisions to help regions hit by natural disasters, including California’s wildfires. With the latest outbreak of wildfires in the state, the bill has re-entered the spotlight and RCRC is working on a new method to get it passed. This strategy includes attaching the bill as one of the 30 tax extenders House Democrats are looking to renew. Republicans, including Senate Finance Chairman Charles E. Grassley (R-Iowa), have said that Democrats are asking for too much in return for movement on these extenders.

The importance of getting tax extenders passed promptly has only intensified for California with the recent threat from President Trump to possibly pull California's federal aid for combating wildfires. In 2017, California spent nearly $1.8 billion dollars fighting

65 wildfires. The federal government refunds up to 75 percent of firefighting funds and, as per the 2018 federal spending bill, allows the US Forest Service to tap into up to $2 billion in FEMA funds to help fight California wildfires.

State and Local Tax Cap The House Ways and Means Committee will mark-up draft legislation to eliminate the $10,000 limit on deductions for state and local taxes for 2020 and 20201, double the deduction to $20,000 for couples for 2019 and pay for the changes by permanently restoring the top marginal tax rate for individuals to 39.6 percent.

Committee Democrats have been debating among themselves the shape of the rollback and how to pay for it for at least three months. There is expected to be no Republican support in the committee for rolling back the deduction limitation, which was imposed in 2017’s federal tax reform measure.

United States–Mexico–Canada Agreement House Democrats and the Trump Administration are on the verge of coming to an agreement on the updated NAFTA deal, the United States–Mexico–Canada Agreement (USMCA). The timeline for an agreement to be reached by the end of the year is looking more and more formidable. Passing the USMCA by the end of the year has always been a high priority for Congress because of the impending impeachment activities. Despite Congress extending its legislative schedule by one week until December 20th, the window for coming to an on-time agreement is extremely tight because once an agreement is reached, ratifying a trade deal requires a series of timely procedural steps laid out in the 2015 trade promotion law.

As negotiations continue, new points of tension have continued to emerge between the three countries. For example, a recent disagreement has emerged between the U.S. and Mexico over how to ensure Mexico fully implements its landmark labor reforms as required under the USMCA.

Infrastructure Chairman of the House Committee on Transportation and Infrastructure Peter DeFazio (D-Oregon) plans to introduce legislation by early next year for a surface transportation bill. Despite this assurance, questions have begun to arise from those in the infrastructure policy space about why the federal government has been so significantly struggling to pass meaningful infrastructure reform. A recent report from the Brookings Institute argues that it is not politics or money that has hindered meaningful infrastructure legislation, but rather a commitment to using 20th century tactics to try and develop in the 21st century.

Staff Recommendation Informational only. RCRC staff and its federal advocacy team will continue to pursue a robust federal affairs program to address our federal priorities.