| 1 | | - | Senate Bill No. 884 CHAPTER 819An act to amend Section 8385 of, and to add Section 8388.5 to, the Public Utilities Code, relating to electricity. [ Approved by Governor September 29, 2022. Filed with Secretary of State September 29, 2022. ] LEGISLATIVE COUNSEL'S DIGESTSB 884, McGuire. Electricity: expedited utility distribution infrastructure undergrounding program.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Under existing law, it is the policy of this state to achieve, whenever feasible and not inconsistent with sound environmental planning, the undergrounding of all future electric and communication distribution facilities that are proposed to be erected in proximity to designated state scenic highways and that would be visible from those highways if erected above ground. The commissions existing Electric Tariff Rule 20 establishes policies for the undergrounding of electrical facilities and includes, among other programs, the Rule 20A undergrounding program that requires electrical corporations to convert overhead electrical facilities to underground facilities when it is in the public interest for specified reasons.This bill would require the commission to establish an expedited utility distribution infrastructure undergrounding program, and would authorize only those electrical corporations with 250,000 or more customer accounts within the state to participate in the program. In order to participate in the program, the bill would require a large electrical corporation to submit a distribution infrastructure undergrounding plan, including the undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas that it will construct as part of the program, to the Office of Energy Infrastructure Safety, which would be required to approve or deny the plan within 9 months. If the office approves the large electrical corporations plan, the bill would require the large electrical corporation to submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and would require the commission to approve or deny the plan within 9 months. If the plan is approved by the office and commission, the bill would require the large electrical corporation to file specified progress reports, include additional information in its wildfire mitigation plans, hire an independent monitor to review and assess its compliance with its plan, apply for available federal, state, and other nonratepayer moneys throughout the duration of the approved plan, and use those nonratepayer moneys to reduce the programs costs on its ratepayers, as specified. The bill would authorize the commission to assess penalties on a large electrical corporation that fails to substantially comply with the commission decision approving its plan.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 8385 of the Public Utilities Code is amended to read:8385. (a) For purposes of this chapter, the following definitions shall apply:(1) Compliance period means a period of approximately one year.(2) Deenergization event means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.(3) Electrical cooperative has the same meaning as defined in Section 2776.(4) Large electrical corporation has the same meaning as defined in Section 3280.(5) Office means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.(b) Beginning July 1, 2021, the office shall supervise an electrical corporations compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this chapter affects the commissions authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility.SEC. 2. Section 8388.5 is added to the Public Utilities Code, to read:8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.(b) Only a large electrical corporation may participate in the program.(c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components:(1) A 10-year plan for undergrounding distribution infrastructure.(2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.(3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan.(4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan.(5) A plan for utility and contractor workforce development.(6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.(d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:(1) Publish the plan for public comment.(2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan.(e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and including all of the following:(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.(B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporations historical undergrounding costs.(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.(D) A strategy for achieving cost reductions over time.(2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).(3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporations general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.(4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.(5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.(6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.(f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:(1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.(2) Include ongoing work plans and progress in annual wildfire mitigation plan filings.(3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporations compliance with its plan and submit a report with the office each December 1 over the course of the plan.(g) (1) In reviewing and assessing the large electrical corporations compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporations progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitors report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan.(2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitors report.(3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.(h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.(i) (1) The office shall consider the independent monitors report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission.(2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.(j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the programs costs on the large electrical corporations ratepayers.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 1 | + | Enrolled September 01, 2022 Passed IN Senate August 30, 2022 Passed IN Assembly August 30, 2022 Amended IN Assembly August 25, 2022 Amended IN Assembly August 15, 2022 Amended IN Assembly June 23, 2022 Amended IN Assembly June 13, 2022 Amended IN Senate April 26, 2022 Amended IN Senate April 07, 2022 Amended IN Senate March 16, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 884Introduced by Senator McGuireJanuary 26, 2022An act to amend Section 8385 of, and to add Section 8388.5 to, the Public Utilities Code, relating to electricity.LEGISLATIVE COUNSEL'S DIGESTSB 884, McGuire. Electricity: expedited utility distribution infrastructure undergrounding program.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Under existing law, it is the policy of this state to achieve, whenever feasible and not inconsistent with sound environmental planning, the undergrounding of all future electric and communication distribution facilities that are proposed to be erected in proximity to designated state scenic highways and that would be visible from those highways if erected above ground. The commissions existing Electric Tariff Rule 20 establishes policies for the undergrounding of electrical facilities and includes, among other programs, the Rule 20A undergrounding program that requires electrical corporations to convert overhead electrical facilities to underground facilities when it is in the public interest for specified reasons.This bill would require the commission to establish an expedited utility distribution infrastructure undergrounding program, and would authorize only those electrical corporations with 250,000 or more customer accounts within the state to participate in the program. In order to participate in the program, the bill would require a large electrical corporation to submit a distribution infrastructure undergrounding plan, including the undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas that it will construct as part of the program, to the Office of Energy Infrastructure Safety, which would be required to approve or deny the plan within 9 months. If the office approves the large electrical corporations plan, the bill would require the large electrical corporation to submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and would require the commission to approve or deny the plan within 9 months. If the plan is approved by the office and commission, the bill would require the large electrical corporation to file specified progress reports, include additional information in its wildfire mitigation plans, hire an independent monitor to review and assess its compliance with its plan, apply for available federal, state, and other nonratepayer moneys throughout the duration of the approved plan, and use those nonratepayer moneys to reduce the programs costs on its ratepayers, as specified. The bill would authorize the commission to assess penalties on a large electrical corporation that fails to substantially comply with the commission decision approving its plan.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 8385 of the Public Utilities Code is amended to read:8385. (a) For purposes of this chapter, the following definitions shall apply:(1) Compliance period means a period of approximately one year.(2) Deenergization event means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.(3) Electrical cooperative has the same meaning as defined in Section 2776.(4) Large electrical corporation has the same meaning as defined in Section 3280.(5) Office means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.(b) Beginning July 1, 2021, the office shall supervise an electrical corporations compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this chapter affects the commissions authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility.SEC. 2. Section 8388.5 is added to the Public Utilities Code, to read:8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.(b) Only a large electrical corporation may participate in the program.(c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components:(1) A 10-year plan for undergrounding distribution infrastructure.(2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.(3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan.(4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan.(5) A plan for utility and contractor workforce development.(6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.(d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:(1) Publish the plan for public comment.(2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan.(e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and including all of the following:(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.(B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporations historical undergrounding costs.(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.(D) A strategy for achieving cost reductions over time.(2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).(3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporations general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.(4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.(5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.(6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.(f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:(1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.(2) Include ongoing work plans and progress in annual wildfire mitigation plan filings.(3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporations compliance with its plan and submit a report with the office each December 1 over the course of the plan.(g) (1) In reviewing and assessing the large electrical corporations compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporations progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitors report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan.(2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitors report.(3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.(h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.(i) (1) The office shall consider the independent monitors report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission.(2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.(j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the programs costs on the large electrical corporations ratepayers.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 14 | 30 | | |
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| 15 | 31 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 16 | 32 | | |
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| 17 | 33 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 18 | 34 | | |
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| 19 | 35 | | SB 884, McGuire. Electricity: expedited utility distribution infrastructure undergrounding program. |
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| 20 | 36 | | |
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| 21 | 37 | | Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Under existing law, it is the policy of this state to achieve, whenever feasible and not inconsistent with sound environmental planning, the undergrounding of all future electric and communication distribution facilities that are proposed to be erected in proximity to designated state scenic highways and that would be visible from those highways if erected above ground. The commissions existing Electric Tariff Rule 20 establishes policies for the undergrounding of electrical facilities and includes, among other programs, the Rule 20A undergrounding program that requires electrical corporations to convert overhead electrical facilities to underground facilities when it is in the public interest for specified reasons.This bill would require the commission to establish an expedited utility distribution infrastructure undergrounding program, and would authorize only those electrical corporations with 250,000 or more customer accounts within the state to participate in the program. In order to participate in the program, the bill would require a large electrical corporation to submit a distribution infrastructure undergrounding plan, including the undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas that it will construct as part of the program, to the Office of Energy Infrastructure Safety, which would be required to approve or deny the plan within 9 months. If the office approves the large electrical corporations plan, the bill would require the large electrical corporation to submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and would require the commission to approve or deny the plan within 9 months. If the plan is approved by the office and commission, the bill would require the large electrical corporation to file specified progress reports, include additional information in its wildfire mitigation plans, hire an independent monitor to review and assess its compliance with its plan, apply for available federal, state, and other nonratepayer moneys throughout the duration of the approved plan, and use those nonratepayer moneys to reduce the programs costs on its ratepayers, as specified. The bill would authorize the commission to assess penalties on a large electrical corporation that fails to substantially comply with the commission decision approving its plan.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason. |
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| 22 | 38 | | |
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| 23 | 39 | | Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Under existing law, it is the policy of this state to achieve, whenever feasible and not inconsistent with sound environmental planning, the undergrounding of all future electric and communication distribution facilities that are proposed to be erected in proximity to designated state scenic highways and that would be visible from those highways if erected above ground. The commissions existing Electric Tariff Rule 20 establishes policies for the undergrounding of electrical facilities and includes, among other programs, the Rule 20A undergrounding program that requires electrical corporations to convert overhead electrical facilities to underground facilities when it is in the public interest for specified reasons. |
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| 24 | 40 | | |
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| 25 | 41 | | This bill would require the commission to establish an expedited utility distribution infrastructure undergrounding program, and would authorize only those electrical corporations with 250,000 or more customer accounts within the state to participate in the program. In order to participate in the program, the bill would require a large electrical corporation to submit a distribution infrastructure undergrounding plan, including the undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas that it will construct as part of the program, to the Office of Energy Infrastructure Safety, which would be required to approve or deny the plan within 9 months. If the office approves the large electrical corporations plan, the bill would require the large electrical corporation to submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and would require the commission to approve or deny the plan within 9 months. If the plan is approved by the office and commission, the bill would require the large electrical corporation to file specified progress reports, include additional information in its wildfire mitigation plans, hire an independent monitor to review and assess its compliance with its plan, apply for available federal, state, and other nonratepayer moneys throughout the duration of the approved plan, and use those nonratepayer moneys to reduce the programs costs on its ratepayers, as specified. The bill would authorize the commission to assess penalties on a large electrical corporation that fails to substantially comply with the commission decision approving its plan. |
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| 26 | 42 | | |
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| 27 | 43 | | Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. |
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| 28 | 44 | | |
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| 29 | 45 | | Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program. |
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| 30 | 46 | | |
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| 31 | 47 | | The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. |
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| 32 | 48 | | |
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| 33 | 49 | | This bill would provide that no reimbursement is required by this act for a specified reason. |
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| 34 | 50 | | |
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| 35 | 51 | | ## Digest Key |
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| 36 | 52 | | |
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| 37 | 53 | | ## Bill Text |
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| 38 | 54 | | |
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| 39 | 55 | | The people of the State of California do enact as follows:SECTION 1. Section 8385 of the Public Utilities Code is amended to read:8385. (a) For purposes of this chapter, the following definitions shall apply:(1) Compliance period means a period of approximately one year.(2) Deenergization event means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.(3) Electrical cooperative has the same meaning as defined in Section 2776.(4) Large electrical corporation has the same meaning as defined in Section 3280.(5) Office means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.(b) Beginning July 1, 2021, the office shall supervise an electrical corporations compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this chapter affects the commissions authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility.SEC. 2. Section 8388.5 is added to the Public Utilities Code, to read:8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.(b) Only a large electrical corporation may participate in the program.(c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components:(1) A 10-year plan for undergrounding distribution infrastructure.(2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.(3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan.(4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan.(5) A plan for utility and contractor workforce development.(6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.(d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:(1) Publish the plan for public comment.(2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan.(e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and including all of the following:(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.(B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporations historical undergrounding costs.(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.(D) A strategy for achieving cost reductions over time.(2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).(3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporations general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.(4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.(5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.(6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.(f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:(1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.(2) Include ongoing work plans and progress in annual wildfire mitigation plan filings.(3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporations compliance with its plan and submit a report with the office each December 1 over the course of the plan.(g) (1) In reviewing and assessing the large electrical corporations compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporations progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitors report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan.(2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitors report.(3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.(h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.(i) (1) The office shall consider the independent monitors report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission.(2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.(j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the programs costs on the large electrical corporations ratepayers.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 40 | 56 | | |
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| 41 | 57 | | The people of the State of California do enact as follows: |
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| 42 | 58 | | |
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| 43 | 59 | | ## The people of the State of California do enact as follows: |
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| 44 | 60 | | |
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| 45 | 61 | | SECTION 1. Section 8385 of the Public Utilities Code is amended to read:8385. (a) For purposes of this chapter, the following definitions shall apply:(1) Compliance period means a period of approximately one year.(2) Deenergization event means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.(3) Electrical cooperative has the same meaning as defined in Section 2776.(4) Large electrical corporation has the same meaning as defined in Section 3280.(5) Office means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.(b) Beginning July 1, 2021, the office shall supervise an electrical corporations compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this chapter affects the commissions authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility. |
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| 46 | 62 | | |
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| 47 | 63 | | SECTION 1. Section 8385 of the Public Utilities Code is amended to read: |
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| 48 | 64 | | |
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| 49 | 65 | | ### SECTION 1. |
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| 50 | 66 | | |
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| 51 | 67 | | 8385. (a) For purposes of this chapter, the following definitions shall apply:(1) Compliance period means a period of approximately one year.(2) Deenergization event means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.(3) Electrical cooperative has the same meaning as defined in Section 2776.(4) Large electrical corporation has the same meaning as defined in Section 3280.(5) Office means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.(b) Beginning July 1, 2021, the office shall supervise an electrical corporations compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this chapter affects the commissions authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility. |
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| 52 | 68 | | |
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| 53 | 69 | | 8385. (a) For purposes of this chapter, the following definitions shall apply:(1) Compliance period means a period of approximately one year.(2) Deenergization event means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.(3) Electrical cooperative has the same meaning as defined in Section 2776.(4) Large electrical corporation has the same meaning as defined in Section 3280.(5) Office means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.(b) Beginning July 1, 2021, the office shall supervise an electrical corporations compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this chapter affects the commissions authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility. |
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| 54 | 70 | | |
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| 55 | 71 | | 8385. (a) For purposes of this chapter, the following definitions shall apply:(1) Compliance period means a period of approximately one year.(2) Deenergization event means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.(3) Electrical cooperative has the same meaning as defined in Section 2776.(4) Large electrical corporation has the same meaning as defined in Section 3280.(5) Office means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.(b) Beginning July 1, 2021, the office shall supervise an electrical corporations compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this chapter affects the commissions authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility. |
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| 56 | 72 | | |
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| 57 | 73 | | |
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| 58 | 74 | | |
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| 59 | 75 | | 8385. (a) For purposes of this chapter, the following definitions shall apply: |
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| 60 | 76 | | |
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| 61 | 77 | | (1) Compliance period means a period of approximately one year. |
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| 62 | 78 | | |
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| 63 | 79 | | (2) Deenergization event means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire. |
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| 64 | 80 | | |
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| 65 | 81 | | (3) Electrical cooperative has the same meaning as defined in Section 2776. |
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| 66 | 82 | | |
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| 67 | 83 | | (4) Large electrical corporation has the same meaning as defined in Section 3280. |
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| 68 | 84 | | |
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| 69 | 85 | | (5) Office means the Office of Energy Infrastructure Safety, within the Natural Resources Agency. |
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| 70 | 86 | | |
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| 71 | 87 | | (b) Beginning July 1, 2021, the office shall supervise an electrical corporations compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). Nothing in this chapter affects the commissions authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility. |
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| 72 | 88 | | |
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| 73 | 89 | | SEC. 2. Section 8388.5 is added to the Public Utilities Code, to read:8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.(b) Only a large electrical corporation may participate in the program.(c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components:(1) A 10-year plan for undergrounding distribution infrastructure.(2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.(3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan.(4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan.(5) A plan for utility and contractor workforce development.(6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.(d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:(1) Publish the plan for public comment.(2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan.(e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and including all of the following:(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.(B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporations historical undergrounding costs.(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.(D) A strategy for achieving cost reductions over time.(2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).(3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporations general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.(4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.(5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.(6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.(f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:(1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.(2) Include ongoing work plans and progress in annual wildfire mitigation plan filings.(3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporations compliance with its plan and submit a report with the office each December 1 over the course of the plan.(g) (1) In reviewing and assessing the large electrical corporations compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporations progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitors report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan.(2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitors report.(3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.(h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.(i) (1) The office shall consider the independent monitors report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission.(2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.(j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the programs costs on the large electrical corporations ratepayers. |
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| 74 | 90 | | |
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| 75 | 91 | | SEC. 2. Section 8388.5 is added to the Public Utilities Code, to read: |
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| 76 | 92 | | |
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| 77 | 93 | | ### SEC. 2. |
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| 78 | 94 | | |
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| 79 | 95 | | 8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.(b) Only a large electrical corporation may participate in the program.(c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components:(1) A 10-year plan for undergrounding distribution infrastructure.(2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.(3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan.(4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan.(5) A plan for utility and contractor workforce development.(6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.(d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:(1) Publish the plan for public comment.(2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan.(e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and including all of the following:(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.(B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporations historical undergrounding costs.(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.(D) A strategy for achieving cost reductions over time.(2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).(3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporations general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.(4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.(5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.(6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.(f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:(1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.(2) Include ongoing work plans and progress in annual wildfire mitigation plan filings.(3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporations compliance with its plan and submit a report with the office each December 1 over the course of the plan.(g) (1) In reviewing and assessing the large electrical corporations compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporations progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitors report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan.(2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitors report.(3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.(h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.(i) (1) The office shall consider the independent monitors report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission.(2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.(j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the programs costs on the large electrical corporations ratepayers. |
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| 80 | 96 | | |
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| 81 | 97 | | 8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.(b) Only a large electrical corporation may participate in the program.(c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components:(1) A 10-year plan for undergrounding distribution infrastructure.(2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.(3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan.(4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan.(5) A plan for utility and contractor workforce development.(6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.(d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:(1) Publish the plan for public comment.(2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan.(e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and including all of the following:(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.(B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporations historical undergrounding costs.(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.(D) A strategy for achieving cost reductions over time.(2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).(3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporations general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.(4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.(5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.(6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.(f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:(1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.(2) Include ongoing work plans and progress in annual wildfire mitigation plan filings.(3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporations compliance with its plan and submit a report with the office each December 1 over the course of the plan.(g) (1) In reviewing and assessing the large electrical corporations compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporations progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitors report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan.(2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitors report.(3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.(h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.(i) (1) The office shall consider the independent monitors report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission.(2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.(j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the programs costs on the large electrical corporations ratepayers. |
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| 82 | 98 | | |
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| 83 | 99 | | 8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.(b) Only a large electrical corporation may participate in the program.(c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components:(1) A 10-year plan for undergrounding distribution infrastructure.(2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.(3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan.(4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan.(5) A plan for utility and contractor workforce development.(6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.(d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:(1) Publish the plan for public comment.(2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan.(e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and including all of the following:(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.(B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporations historical undergrounding costs.(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.(D) A strategy for achieving cost reductions over time.(2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).(3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporations general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.(4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.(5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.(6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.(f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:(1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.(2) Include ongoing work plans and progress in annual wildfire mitigation plan filings.(3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporations compliance with its plan and submit a report with the office each December 1 over the course of the plan.(g) (1) In reviewing and assessing the large electrical corporations compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporations progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitors report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan.(2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitors report.(3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.(h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.(i) (1) The office shall consider the independent monitors report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission.(2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.(j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the programs costs on the large electrical corporations ratepayers. |
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| 84 | 100 | | |
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| 85 | 101 | | |
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| 86 | 102 | | |
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| 87 | 103 | | 8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section. |
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| 88 | 104 | | |
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| 89 | 105 | | (b) Only a large electrical corporation may participate in the program. |
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| 90 | 106 | | |
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| 91 | 107 | | (c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components: |
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| 92 | 108 | | |
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| 93 | 109 | | (1) A 10-year plan for undergrounding distribution infrastructure. |
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| 94 | 110 | | |
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| 95 | 111 | | (2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program. |
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| 96 | 112 | | |
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| 97 | 113 | | (3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan. |
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| 98 | 114 | | |
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| 99 | 115 | | (4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan. |
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| 100 | 116 | | |
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| 101 | 117 | | (5) A plan for utility and contractor workforce development. |
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| 102 | 118 | | |
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| 103 | 119 | | (6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain. |
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| 104 | 120 | | |
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| 105 | 121 | | (d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following: |
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| 106 | 122 | | |
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| 107 | 123 | | (1) Publish the plan for public comment. |
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| 108 | 124 | | |
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| 109 | 125 | | (2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shutoffs, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan. |
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| 110 | 126 | | |
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| 111 | 127 | | (e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plans costs and including all of the following: |
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| 112 | 128 | | |
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| 113 | 129 | | (A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan. |
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| 114 | 130 | | |
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| 115 | 131 | | (B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporations historical undergrounding costs. |
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| 116 | 132 | | |
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| 117 | 133 | | (C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale. |
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| 118 | 134 | | |
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| 119 | 135 | | (D) A strategy for achieving cost reductions over time. |
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| 120 | 136 | | |
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| 121 | 137 | | (2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1). |
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| 122 | 138 | | |
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| 123 | 139 | | (3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporations general rate case or a commission-approved balancing account ratemaking mechanism for system hardening. |
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| 124 | 140 | | |
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| 125 | 141 | | (4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days. |
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| 126 | 142 | | |
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| 127 | 143 | | (5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application. |
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| 128 | 144 | | |
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| 129 | 145 | | (6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable. |
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| 130 | 146 | | |
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| 131 | 147 | | (f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following: |
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| 132 | 148 | | |
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| 133 | 149 | | (1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites. |
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| 134 | 150 | | |
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| 135 | 151 | | (2) Include ongoing work plans and progress in annual wildfire mitigation plan filings. |
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| 136 | 152 | | |
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| 137 | 153 | | (3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporations compliance with its plan and submit a report with the office each December 1 over the course of the plan. |
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| 138 | 154 | | |
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| 139 | 155 | | (g) (1) In reviewing and assessing the large electrical corporations compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporations progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitors report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan. |
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| 140 | 156 | | |
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| 141 | 157 | | (2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitors report. |
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| 142 | 158 | | |
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| 143 | 159 | | (3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office. |
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| 144 | 160 | | |
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| 145 | 161 | | (h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website. |
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| 146 | 162 | | |
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| 147 | 163 | | (i) (1) The office shall consider the independent monitors report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission. |
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| 148 | 164 | | |
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| 149 | 165 | | (2) The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan. |
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| 150 | 166 | | |
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| 151 | 167 | | (j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the programs costs on the large electrical corporations ratepayers. |
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| 152 | 168 | | |
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| 153 | 169 | | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 154 | 170 | | |
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| 155 | 171 | | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 156 | 172 | | |
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| 157 | 173 | | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 158 | 174 | | |
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| 159 | 175 | | ### SEC. 3. |
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