Chapter 6Wildfire Mitigation
Section § 8385
This section defines key terms related to managing electrical service interruptions to prevent wildfires, known as 'deenergization events.'
It clarifies the roles and definitions of various entities like electrical corporations and cooperatives, and explains the introduction of the Office of Energy Infrastructure Safety within the Natural Resources Agency. From July 1, 2021, this Office will oversee electrical corporations' compliance with relevant safety protocols, ensuring these activities align with the Public Utilities Act. The regulation also emphasizes that this management does not interfere with the existing authority of the commission over electrical entities.
Section § 8386
This California Public Utilities Code section requires electrical companies to design, maintain, and operate their equipment in ways that minimize wildfire risks. They need to create and regularly update a detailed wildfire mitigation plan. This plan must outline who is responsible, set clear objectives, and describe strategies to prevent wildfires, adapt to climate changes, and include safety measures such as disabling certain electric components and notifying affected individuals, including those reliant on life-support equipment. The plans should include strategies for vegetation management, infrastructure inspections, and protocols for power shutdowns, all while considering public safety and cost-effectiveness. It also stresses the importance of workforce preparedness and community communication, especially in diverse languages. Furthermore, the office is responsible for reviewing these plans and providing public access and feedback opportunities.
Section § 8386.1
This law section allows the commission to impose penalties on an electrical company if it does not follow its plan. When deciding the penalty amount, several factors are considered, including the seriousness of the noncompliance and any harm caused, whether the company has a history of noncompliance, if the company reported the issue itself, and if corrective actions were taken. It also looks at whether the company should have known about the issue and if similar misconduct has happened before causing damage or injury. Additional factors can be considered as established by the commission.
Section § 8386.10
This law states that large electrical companies in California cannot include $6 billion of fire risk mitigation expenses in their equity rate base if these expenses are approved by the commission from January 1, 2026, onward. This rule is an addition to other similar financial rules outlined in a different section. Instead, these costs can be covered through specific financing arrangements. However, this restriction does not apply to any expenses made after December 31, 2035.
Section § 8386.2
The law requires that an independent third-party evaluator conduct a safety culture assessment for each electrical company to ensure they are operating safely. These assessments need to be updated at least every five years, and the companies can't charge their customers for the costs. In addition, a separate wildfire-focused safety culture assessment must be done by a designated office every two years.
Section § 8386.3
This law describes the process and guidelines for approving, implementing, and overseeing wildfire mitigation plans by electrical corporations in California. The office responsible for wildfire mitigation must decide on these plans within nine months, considering input from the State Fire Marshal, and may require changes before approval. They can also extend deadlines if necessary. Once a plan is approved, the office will oversee its implementation, requiring annual self-evaluation reports from electrical corporations and assessments by independent evaluators to review their progress. The costs of these evaluators are recoverable by the corporations through rates.
The office can conduct audits, especially regarding vegetation management, to ensure corporations follow their commitments. They can employ independent auditors who must be certified arborists. Electrical corporations must report their spending and workforce development efforts related to wildfire mitigation, especially involving the California Conservation Corps and others.
These regulations prohibit diversion of funds intended for wildfire mitigation and set specific financial guidelines and limitations for large electrical corporations concerning fire risk mitigation capital expenditures. The section clarifies that the office is not liable for the performance of its duties.
Section § 8386.4
This section outlines the process for approving and managing costs for wildfire risk mitigation by electrical corporations in California. The commission evaluates and approves these costs based on their reasonableness during general rate case proceedings. If unexpected costs arise, corporations may use a special account to track them, but only reasonable costs are recoverable. Starting January 1, 2027, electrical corporations must include their wildfire mitigation plans and cost forecasts in their rate case applications. The commission collaborates with the office in decision-making and approves the money needed for the mitigation plans. Once the commission decides on the revenue needed, the utility must adjust and resubmit their plan to the office for final approval. The section also clarifies that it does not limit existing legal rights and obligations concerning utility charges.
Section § 8386.5
This law mandates that several California agencies work together by creating an agreement to share information and develop consistent methods for dealing with fire-related issues. These agencies must exchange data and results from activities related to fire prevention, safety inspections, and management of vegetation and energy systems to better prevent wildfires.
Section § 8386.6
This law requires that people trimming trees near power lines for wildfire safety in California must be either qualified tree trimmers or trainees supervised by qualified trimmers, following specific safety regulations.
Additionally, these qualified tree trimmers must be paid at least the same wage as a first-year apprentice electrical utility lineman, as set by the state's labor agency.
Section § 8387
This law requires local publicly owned electric utilities and electrical cooperatives to manage their electrical systems to prevent wildfires. By January 1, 2020, they must develop a wildfire mitigation plan, which needs updating and submission to the California Wildfire Safety Advisory Board every four years starting from 2026.
The plan must include clear responsibilities, objectives, and preventive measures, consider climate change risks, and outline safety protocols, particularly for public safety impacts during power outages. It should also provide steps for vegetation management, regular inspections, and listing and prioritizing wildfire risks based on geological and climatic factors.
The utility or cooperative should publicly present and invite feedback on the plan annually. They must also hire an independent evaluator to review the plan's thoroughness and share findings online and in a public meeting.
Section § 8388
This law requires electrical companies or similar entities that have contracts to buy electricity from biomass sources to either extend these contracts by at least five years or create new contracts ending later than the original expiration dates as long as they comply with certain conditions related to biomass feedstock. However, if the biomass facility is in an area with severe air pollution, these requirements may not apply unless the area voluntarily accepts severe pollution status and the air district confirms the biomass facility won't make air quality goals harder to achieve. Specifically, for facilities in the Sacramento ozone area, the biomass generator must get a letter from the local air district saying that it doesn't interfere with air quality standards before extending the contract.
Section § 8388.5
This law sets up a fast-tracked program for large electrical companies to move their power lines underground to reduce wildfire risks. Only big electric companies can join, and they need to submit a detailed 10-year plan including which projects they'll prioritize based on safety and cost, how they'll compare it to other methods, and plans for workforce development. The plan must also look at costs and benefits over time.
Once a plan is submitted, the office will publish it for public comment and decide on it within nine months. If approved, the plan goes to the commission for cost review. The commission involves public input, and has nine months to approve or suggest changes. The company must then provide updates and an independent monitor will oversee progress, submitting annual reports. Non-compliance can lead to penalties, and any external funds gained should lower costs for customers. Approval does not skip environmental checks.
Section § 8389
This law requires electrical corporations to meet specific safety criteria to receive a safety certificate from the Director of the Office of Energy Infrastructure Safety. To qualify, they need an approved wildfire mitigation plan, a safety committee with experienced members, and a compensation structure that emphasizes safety performance.
Their compensation plans for executives need to focus on performance metrics, discourage guaranteed cash incentives, and align with shareholder interests. Additionally, they must regularly report on the implementation of safety strategies and any relevant recommendations.
Certificates are valid for 12 months, and companies must reapply before expiration, with all related documents made publicly accessible. In some cases, certificate validity may be extended by the office if certain criteria haven’t yet been reviewed.