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Board of Directors Supplemental Packet

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Board of Directors Supplemental Packet Board of Directors Supplemental Packet Wednesday June 17, 2020 9:00 A.M. Rural County Representatives of California 1215 K Street, Suite 1650 Sacramento, California 95814 Supplemental Packet Table of Contents June 17, 2020 1. Forest Management and Wildfire Update Page 1 Staci Heaton, Senior Regulatory Affairs Advocate 2. 2020-21 State Budget Update Page 5 Governmental Affairs Staff 3. State Legislative Update Page 35 Governmental Affairs Staff 4. Federal Legislative Update Page 47 Governmental Affairs Staff 5. California Public Utilities Commission Update Page 53 Staci Heaton John Kennedy, Legislative Advocate Tracy Rhine, Legislative Advocate Leigh Kammerich, Regulatory Affairs Specialist To: Members of the RCRC Board of Directors From: Staci Heaton, Senior Regulatory Affairs Advocate Date: June 15, 2020 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. 2018 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 2019, 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. The state is also grappling with how to ensure the safety of its residents during wildfire season should the COVID-19 pandemic stretch late into the year. Issue Wildfire and Homeowners Insurance Legislation Several wildfire prevention and homeowners insurance measures have been moving through the process since the Legislature reconvened in May. COVID-19 had cast uncertainty on what the legislative session might hold for any measures not directly related to relief for California residents to help recovery efforts once the pandemic curve has begun to decline, but a few wildfire prevention bills and, relatedly, legislation to address insurance non-renewals related to fire risk have been designated as vital legislation that needs to be addressed this session in some form. Bills that have been moving this session: Assembly Bill 3074 and Assembly Bill 3164, Assembly Member Laura Friedman’s package of bills to establish a 5-foot ember-resistant zone around homes in the 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 wildland-urban interface (WUI) and to develop a WUI risk model for use by local governments in future planning activities, passed the Assembly floor and will now begin its process in the Senate. Assembly Bill 2076 (Bigelow), which requires the California Department of Parks and Recreation to develop and implement a wildfire prevention strategy for all Department lands within high or very high fire hazard severity zones, passed the Assembly floor and now moves to the Senate. Assembly Bill 2167 (Daly), which would establish the Insurance Market Action Plan program to allow insurance companies an easier path to rate increases in exchange for agreeing to increasing their market share of policies written in high wildfire risk areas, passed the Assembly floor in somewhat of a surprise and will now move to the Senate. The bill faces opposition from the California Insurance Commissioner. Assembly Bill 3012 (Wood), which provides nonrenewed homeowners with additional assistance finding coverage and eases itemization requirements for homeowners that have suffered total losses during an emergency, passed the Assembly floor and now moves to the Senate. Assembly Bill 2367 (Gonzalez), the California Insurance Commissioner’s measure to mandate that insurance companies write policies on existing homes in high fire risk areas provided that homeowners meet specific home hardening and defensible space standards, was not heard in the Assembly and is effectively dead for this year. Governor’s Forest Management Task Force The Governor’s Forest Management Task Force met via webinar on June 8, 2020 and discussed a variety of topics related to forest management and wildfire prevention, including how the agencies plan to proceed with fire prevention efforts with extreme budgetary restrictions and updates on the 2020 fire season. CAL FIRE confirmed that fire season has already started throughout California, with more than 2,000 small wildfires already reported statewide. The state estimates a possible 60 percent increase in fire activity in 2020 due to dry conditions and climate change. The new Governments for Forest Health (Gov4FH) Working Group also met via teleconference and discussed a number of issues specifically related to local governments and forest health. Among those issues was a lengthy discussion about the state budget and what the messaging should be to the Administration regarding prioritizing funding for wildfire prevention and forest management. The next Task Force and Gov4FH meetings are set to convene next on July 13, 2020 via webinar and teleconference. California Fire Safe Councils County Wildfire Mitigation Coordinators Program The California Fire Safe Councils (CFSC) are launching a $6 million program for block grants to county groups to support implementation of fire prevention and preparedness community action in collaboration with University of California fire advisors, resource conservation districts, and others. The program is a competitive grant program, and the funds may be utilized by any local agency that qualifies, not just Fire Safe Councils. The CFSC is attempting to gauge local interest in the program and is looking for input from 2 interested counties. Interested RCRC members can contact RCRC staff for more information. 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. 3 4 To: Members of the RCRC Board of Directors From: Paul A. Smith, Senior Vice President Governmental Affairs Governmental Affairs Staff Date: June 16, 2020 Re: 2020-21 State Budget Update Summary This memo provides an analysis of the initial components of the 2020-21 State Budget Package. Background This Monday, both houses of the Legislature approved the main 2020-21 State Budget (Senate Bill 74) and two budget trailer bills – one addressing education finance and one addressing the raising of revenues - that assist in implementing the 2020-21 State Budget Package. It should be noted that as of today, the State Budget Package remains incomplete – the vast majority of the budget trailer bills still await consideration, including measures pertaining to criminal justice and corrections, resources, housing and homelessness, broadband, reform of the Department of Toxic Substances Control, and expenditures from the state’s Cap-and-Trade auction proceeds, along with a supplemental budget bill to address outstanding issues with the current fiscal year which ends on June 30th. Over the next several days and weeks, it is expected these remaining issues will be considered and adopted. It should be noted that the Legislature and the Governor do not have an agreement on the State Budget Package, which leaves some uncertainty as to the Governor’s position on the proposed spending plan which passed the Legislature on Monday. The Constitutional deadline for enacting a state spending plan is July 1st. Attachment RCRC’s Preliminary Analysis of the 2020-21 State Budget Package 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 5 6 A SUMMARY OF THE THE RURAL INITIAL 2020-21 STATE RUNDOWN BUDGET PACKAGE June 15, 2020 RURAL COUNTY REPRESENTATIVES OF CALIFORNIA 1215 K STREET, SUITE 1650 SACRAMENTO, CA 94814 95814 RCRCNET.ORG 7 RCRC’S PRELIMINARY ANALYSIS OF THE 2020-21 STATE BUDGET PACKAGE Both houses of the Legislature approved the main 2020-21 State Budget and two budget trailer bills that assist in implementing the 2020-21 State Budget Package. It should be noted that the State Budget Package remains incomplete – the vast majority of the budget trailer bills still await action, including measures pertaining to criminal justice and corrections, resources, housing and homelessness, broadband, reform of the Department of Toxic Substances Control, and expenditures from the state’s Cap-and-Trade auction proceeds, along with a supplemental budget bill to address outstanding issues with the current fiscal year which ends on June 30th. Over the next several days and weeks, it is expected these remaining issues will be considered and adopted. It should be noted that the Legislature and the Governor do not have an agreement on the State Budget Package, which leaves some uncertainty as to the Governor’s position on the proposed spending plan. Overview The $142.9 billion state spending plan, of which $147.8 billion is General Fund, attempts to address the estimated $54 billion budget deficit promulgated by the novel coronavirus (COVID-19) pandemic. The State Budget Package also counts on $14 billion in as-yet- unsecured federal funds and includes a number of trigger actions should those federal dollars not materialize. The Legislature’s budget structure differs from the Governor’s May Revision in that it assumes the federal funds up front then activates triggers based on a lack of federal funds.
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