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(U 338-E)

2019 CEMA - A.19-07-XXX

Workpapers

Catastrophic Event Memorandum Account Testimony 2017-2018 Drought & 2017 Firestorms

Before the

Public Utilities Commission of the State of California

July 2019

DOCUMENT PAGE(S)Governor Proclamation - Pier Fire 1-3Governor Proclamation - Canyon Fire(s) 4-6Governor Proclamation - Thomas Fire 7-9Governor Proclamation - Creek and Rye Fires 10-11Governor Proclamation - Drought 12-16Governor's Executive Order B-29-15 17-23Resolution E-3238 24-29Resolution ESRB-4 30-49CEMA Notification - Pier Fire 50-51CEMA Notification - Canyon Fire(s) 52-53CEMA Notification - Thomas, Creek and Rye Fires 54-55CEMA Notification - Drought 56-57Drought – Contract Labor Summary 58-59Drought – Contract Labor Detail 60-97Firestorms – List of Firestorm Work Orders 98-99Firestorms – Contract Labor Summary 100-102Firestorms – Contract Labor Detail 103-191

EXHIBIT SCE-01

INDEX OF WORKPAPERS

CEMA - 2017-2018 Drought & 2017 Firestorms

Workpaper – Southern California Edison / 2019 CEMA

Exhibit No. SCE-01

Witness: Various

Regulatory Workpapers

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Exhibit No. SCE-01

Witness: Various

5/16/2019 Governor Brown Declares State of Emergency in Madera, Mariposa and Tulare Counties Due to Fires | Governor Edmund G. Brown Jr.

https://www.ca.gov/archive/gov39/2017/09/07/news19943/index.html 1/2

Governor Brown Declares State of Emergency inMadera, Mariposa and Tulare Counties Due to FiresPublished: Sep 07, 2017

SACRAMENTO – Governor Edmund G. Brown Jr. today issued an emergency proclamation for Madera,Mariposa and Tulare counties due to the e�ects of the Railroad, Pier, Mission and Peak fires, which haveburned thousands of acres, threatened homes and critical infrastructure and caused the evacuation ofresidents.

The full text of the proclamation is below:

PROCLAMATION OF STATE OF EMERGENCY

WHEREAS on August 29, 2017, the Railroad Fire started in Madera County and rapidly spread into MariposaCounty, and the Pier Fire started in Tulare County; and WHEREAS on September 3, 2017, the Mission Fire began burning in Madera County, and the Peak Firestarted in Mariposa County; and WHEREAS these fires have burned thousands of acres, destroyed structures and continue to threatenhomes, necessitating the evacuation of residents; and WHEREAS these fires are threatening critical infrastructure and have forced the closure of roadways; and WHEREAS extreme weather conditions and high temperatures have further increased the risk of fires; and WHEREAS the Federal Emergency Management Agency has approved Federal Fire Management AssistanceGrants for the Railroad, Pier, and Mission Fires to assist with the costs associated with fighting these fires;and WHEREAS the circumstances of these fires by reason of their magnitude, are or are likely to be beyond thecontrol of the services, personnel, equipment, and facilities of any single local government and require thecombined forces of a mutual aid region or regions to combat; and WHEREAS under the provisions of section 8558(b) of the Government Code, I find that conditions ofextreme peril to the safety of persons and property exists in Madera, Mariposa, and Tulare Counties due tothese fires.

NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, in accordance with theauthority vested in me by the State Constitution and statutes, including the California Emergency ServicesAct, and in particular, section 8625 of the Government Code, HEREBY PROCLAIM A STATE OF EMERGENCY toexist in Madera, Mariposa, and Tulare Counties.

This is historical material “frozen in time”. The website is no longer updated and links to external websites andsome internal pages may not work.

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Exhibit No. SCE-01

Witness: Various

5/16/2019 Governor Brown Declares State of Emergency in Madera, Mariposa and Tulare Counties Due to Fires | Governor Edmund G. Brown Jr.


I HEREBY ORDER that all agencies of the state government utilize and employ state personnel, equipment,and facilities for the performance of any and all activities consistent with the direction of the O�ice ofEmergency Services and the State Emergency Plan. Also, all residents are to heed the advice of emergencyo�icials with regard to this emergency in order to protect their safety.

I FURTHER DIRECT that as soon as herea�er possible, this Proclamation be filed in the O�ice of theSecretary of State and that widespread publicity and notice be given of this Proclamation.

IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California tobe a�ixed this 7th day of September 2017.

_____________________________ EDMUND G. BROWN JR. Governor of California

ATTEST:

_____________________________ ALEX PADILLA Secretary of State

###

Latest News

Governor Brown Announces Appointments

EXECUTIVE ORDER B-62-18

2018 Executive Report on Pardons, Commutations of Sentence andReprieves

2018 Executive Report on Parole Review Decisions

Form 801 Gi� to Agency Reports

3


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Witness: Various

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Exhibit No. SCE-01

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Exhibit No. SCE-01

Witness: Various

6/20/2019 Governor Brown Declares Drought State of Emergency | Governor Edmund G. Brown Jr.


Governor Brown Declares Drought State ofEmergencyPublished: Jan 17, 2014

SAN FRANCISCO – With California facing water shortfallsin the driest year in recorded state history, GovernorEdmund G. Brown Jr. today proclaimed a State ofEmergency and directed state o�icials to take allnecessary actions to prepare for these droughtconditions.

“We can’t make it rain, but we can be much betterprepared for the terrible consequences that California’s

drought now threatens, including dramatically less water for our farms and communities and increasedfires in both urban and rural areas,” said Governor Brown. “I’ve declared this emergency and I’m calling allCalifornians to conserve water in every way possible.”

In the State of Emergency declaration, Governor Brown directed state o�icials to assist farmers andcommunities that are economically impacted by dry conditions and to ensure the state can respond ifCalifornians face drinking water shortages. The Governor also directed state agencies to use less water andhire more firefighters and initiated a greatly expanded water conservation public awareness campaign(details at saveourh2o.org).

In addition, the proclamation gives state water o�icials more flexibility to manage supply throughoutCalifornia under drought conditions.

State water o�icials say that California’s river and reservoirs are below their record lows. Manual andelectronic readings record the snowpack’s statewide water content at about 20 percent of normal averagefor this time of year.

The Governor’s drought State of Emergency follows a series of actions the administration has taken toensure that California is prepared for record dry conditions. In May 2013, Governor Brown issued anExecutive Order to direct state water o�icials to expedite the review and processing of voluntary transfersof water and water rights. In December, the Governor formed a Drought Task Force to review expectedwater allocations, California’s preparedness for water scarcity and whether conditions merit a drought

This is historical material “frozen in time”. The website is no longer updated and links to external websites andsome internal pages may not work.

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Exhibit No. SCE-01

Witness: Various



declaration. Earlier this week, the Governor toured the Central Valley and spoke with growers and othersimpacted by California’s record dry conditions.

Photo captions and the full text of the emergency proclamation are below:

1.) Governor Brown announces Drought State of Emergency with Natural Resources Agency Secretary JohnLaird, Department of Water Resources Director Mark Cowin, Water Resources Control Board Chair FeliciaMarcus and Governor’s O�ice of Emergency Services Director Mark Ghilarducci (le� to right). Photo Credit:Justin Short, O�ice of the Governor.

2.) Governor Brown signs proclamation declaring Drought State of Emergency. From le� to right: CAL FIREDirector Chief Ken Pimlott, Department of Food and Agriculture Secretary Karen Ross, Secretary Laird,Director Cowin, Chair Marcus and Director Ghilarducci. Photo Credit: Justin Short, O�ice of the Governor.

For high resolution copies of these photos, please contact Danella Debel, O�ice of the Governor [email protected].

A PROCLAMATION OF A STATE OF EMERGENCY

WHEREAS the State of California is experiencing record dry conditions, with 2014 projected to become thedriest year on record; and

WHEREAS the state’s water supplies have dipped to alarming levels, indicated by: snowpack in California’smountains is approximately 20 percent of the normal average for this date; California’s largest waterreservoirs have very low water levels for this time of year; California’s major river systems, including theSacramento and San Joaquin rivers, have significantly reduced surface water flows; and groundwaterlevels throughout the state have dropped significantly; and

WHEREAS dry conditions and lack of precipitation present urgent problems: drinking water supplies are atrisk in many California communities; fewer crops can be cultivated and farmers’ long-term investments areput at risk; low-income communities heavily dependent on agricultural employment will su�er heightenedunemployment and economic hardship; animals and plants that rely on California’s rivers, including manyspecies in danger of extinction, will be threatened; and the risk of wildfires across the state is greatlyincreased; and

WHEREAS extremely dry conditions have persisted since 2012 and may continue beyond this year andmore regularly into the future, based on scientific projections regarding the impact of climate change onCalifornia’s snowpack; and

WHEREAS the magnitude of the severe drought conditions presents threats beyond the control of theservices, personnel, equipment and facilities of any single local government and require the combinedforces of a mutual aid region or regions to combat; and

WHEREAS under the provisions of section 8558(b) of the California Government Code, I find thatconditions of extreme peril to the safety of persons and property exist in California due to water shortageand drought conditions with which local authority is unable to cope.

NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, in accordance with theauthority vested in me by the state Constitution and statutes, including the California Emergency ServicesAct, and in particular, section 8625 of the California Government Code HEREBY PROCLAIM A STATE OF

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Exhibit No. SCE-01

Witness: Various



EMERGENCY to exist in the State of California due to current drought conditions.

IT IS HEREBY ORDERED THAT:

1.State agencies, led by the Department of Water Resources, will execute a statewide water conservationcampaign to make all Californians aware of the drought and encourage personal actions to reduce waterusage. This campaign will be built on the existing Save Our Water campaign (www.saveourh2o.org) and willcoordinate with local water agencies. This campaign will call on Californians to reduce their water usage by20 percent.

2.Local urban water suppliers and municipalities are called upon to implement their local water shortagecontingency plans immediately in order to avoid or forestall outright restrictions that could becomenecessary later in the drought season. Local water agencies should also update their legally required urbanand agricultural water management plans, which help plan for extended drought conditions. TheDepartment of Water Resources will make the status of these updates publicly available.

3.State agencies, led by the Department of General Services, will immediately implement water usereduction plans for all state facilities. These plans will include immediate water conservation actions, and amoratorium will be placed on new, non-essential landscaping projects at state facilities and on statehighways and roads.

4.The Department of Water Resources and the State Water Resources Control Board (Water Board) willexpedite the processing of water transfers, as called for in Executive Order B-21-13. Voluntary watertransfers from one water right holder to another enables water to flow where it is needed most.

5.The Water Board will immediately consider petitions requesting consolidation of the places of use of theState Water Project and Federal Central Valley Project, which would streamline water transfers andexchanges between water users within the areas of these two major water projects.

6.The Department of Water Resources and the Water Board will accelerate funding for water supplyenhancement projects that can break ground this year and will explore if any existing unspent funds can berepurposed to enable near-term water conservation projects.

7.The Water Board will put water right holders throughout the state on notice that they may be directed tocease or reduce water diversions based on water shortages.

8.The Water Board will consider modifying requirements for reservoir releases or diversion limitations,where existing requirements were established to implement a water quality control plan. These changeswould enable water to be conserved upstream later in the year to protect cold water pools for salmon andsteelhead, maintain water supply, and improve water quality.

9.The Department of Water Resources and the Water Board will take actions necessary to make waterimmediately available, and, for purposes of carrying out directives 5 and 8, Water Code section 13247 andDivision 13 (commencing with section 21000) of the Public Resources Code and regulations adoptedpursuant to that Division are suspended on the basis that strict compliance with them will prevent, hinder,or delay the mitigation of the e�ects of the emergency. Department of Water Resources and the WaterBoard shall maintain on their websites a list of the activities or approvals for which these provisions aresuspended.

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Exhibit No. SCE-01

Witness: Various



10. The state’s Drinking Water Program will work with local agencies to identify communities that may runout of drinking water, and will provide technical and financial assistance to help these communitiesaddress drinking water shortages. It will also identify emergency interconnections that exist among thestate’s public water systems that can help these threatened communities.

11.The Department of Water Resources will evaluate changing groundwater levels, land subsidence, andagricultural land fallowing as the drought persists and will provide a public update by April 30 thatidentifies groundwater basins with water shortages and details gaps in groundwater monitoring.

12.The Department of Water Resources will work with counties to help ensure that well drillers submitrequired groundwater well logs for newly constructed and deepened wells in a timely manner and theO�ice of Emergency Services will work with local authorities to enable early notice of areas experiencingproblems with residential groundwater sources.

13.The California Department of Food and Agriculture will launch a one-stop website(www.cdfa.ca.gov/drought) that provides timely updates on the drought and connects farmers to state andfederal programs that they can access during the drought.

14.The Department of Fish and Wildlife will evaluate and manage the changing impacts of drought onthreatened and endangered species and species of special concern, and develop contingency plans forstate Wildlife Areas and Ecological Reserves to manage reduced water resources in the public interest.

15. The Department of Fish and Wildlife will work with the Fish and Game Commission, using the bestavailable science, to determine whether restricting fishing in certain areas will become necessary andprudent as drought conditions persist.

16.The Department of Water Resources will take necessary actions to protect water quality and watersupply in the Delta, including installation of temporary barriers or temporary water supply connections asneeded, and will coordinate with the Department of Fish and Wildlife to minimize impacts to a�ectedaquatic species.

17.The Department of Water Resources will refine its seasonal climate forecasting and drought predictionby advancing new methodologies piloted in 2013.

18.The California Department of Forestry and Fire Protection will hire additional seasonal firefighters tosuppress wildfires and take other needed actions to protect public safety during this time of elevated firerisk.

19.The state’s Drought Task Force will immediately develop a plan that can be executed as needed toprovide emergency food supplies, financial assistance, and unemployment services in communities thatsu�er high levels of unemployment from the drought.

20.The Drought Task Force will monitor drought impacts on a daily basis and will advise me of subsequentactions that should be taken if drought conditions worsen.

I FURTHER DIRECT that as soon as herea�er possible, this Proclamation be filed in the O�ice of theSecretary of State and that widespread publicity and notice be given of this Proclamation.

IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California tobe a�ixed this 17th day of January, 2014.

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Exhibit No. SCE-01

Witness: Various



______________________________ EDMUND G. BROWN JR., Governor of California

ATTEST:

______________________________ DEBRA BOWEN, Secretary of State

###

Latest News

Governor Brown Announces Appointments


2018 Executive Report on Pardons, Commutations of Sentence andReprieves

2018 Executive Report on Parole Review Decisions

Form 801 Gi� to Agency Reports

16


Exhibit No. SCE-01

Witness: Various

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~xccuti\lc :Bcpertmcnt ~tote of ~lifornia


WHEREAS on January 17, 2014, I proclaimed a State of Emergency to exist throughout the State of California due to severe drought conditions; and

WHEREAS on April 25, 2014, I proclaimed a Continued State of Emergency to exist throughout the State of California due to the ongoing drought; and

WHEREAS California's water supplies continue to be severely depleted despite a limited amount of rain and snowfall this winter, with record low snowpack in the Sierra Nevada mountains, decreased water levels in most of California's reservoirs, reduced flows in the state's rivers and shrinking supplies in underground water basins; and

WHEREAS the severe drought conditions continue to present urgent challenges including: drinking water shortages in communities across the state, diminished water for agricultural production, degraded habitat for many fish and wildlife species, increased wildfire risk, and the threat of saltwater contamination to fresh water supplies in the Sacramento-San Joaquin Bay Delta; and

WHEREAS a distinct possibility exists that the current drought will stretch into a fifth straight year in 2016 and beyond; and

WHEREAS new expedited actions are needed to reduce the harmful impacts from water shortages and other impacts of the drought; and

WHEREAS the magnitude of the severe drought conditions continues to present threats beyond the control of the services, personnel, equipment, and facilities of any single local government and require the combined forces of a mutual aid region or regions to combat; and

WHEREAS under the provisions of section 8558(b) of the Government Code, I find that conditions of extreme peril to the safety of persons and property continue to exist in California due to water shortage and drought conditions with which local authority is unable to cope; and

WHEREAS under the provisions of section 8571 of the California Government Code, I find that strict compliance with various statutes and regulations specified in this order would prevent, hinder, or delay the mitigation of the effects of the drought.

NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, in accordance with the authority vested in me by the Constitution and statutes of the State of California, in particular Government Code sections 8567 and 8571 of the California Government Code, do hereby issue this Executive Order, effective immediately.

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Exhibit No. SCE-01

Witness: Various

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IT IS HEREBY ORDERED THAT:

1. The orders and provisions contained in my January 17, 2014 Proclamation, my April 25, 2014 Proclamation, and Executive Orders B-26-14 and B-28-14 remain in full force and effect except as modified herein.

SAVE WATER

2. The State Water Resources Control Board (Water Board) shall impose restrictions to achieve a statewide 25% reduction in potable urban water usage through February 28, 2016. These restrictions will require water suppliers to California's cities and towns to reduce usage as compared to the amount used in 2013. These restrictions should consider the relative per capita water usage of each water suppliers' service area, and require that those areas with high per capita use achieve proportionally greater reductions than those with low use. The California Public Utilities Commission is requested to take similar action with respect to investor-owned utilities providing water services.

3. The Department of Water Resources (the Department) shall lead a statewide initiative, in partnership with local agencies, to collectively replace 50 million square feet of lawns and ornamental turf with drought tolerant landscapes. The Department shall provide funding to allow for lawn replacement programs in underserved communities, which will complement local programs already underway across the state.

4. The California Energy Commission, jointly with the Department and the Water Board, shall implement a time-limited statewide appliance rebate program to provide monetary incentives for the replacement of inefficient household devices.

5. The Water Board shall impose restrictions to require that commercial, industrial, and institutional properties, such as campuses, golf courses, and cemeteries, immediately implement water efficiency measures to reduce potable water usage in an amount consistent with the reduction targets · ·· · mandated by Directive 2 of this Executive Order.

6. The Water Board shall prohibit irrigation with potable water of ornamental turf on public street medians.

7. The Water Board shall prohibit irrigation with potable water outside of newly constructed homes and buildings that is not delivered by drip or microspray systems.

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Exhibit No. SCE-01

Witness: Various

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8. The Water Board shall direct urban water suppliers to develop rate structures and other pricing mechanisms, including but not limited to surcharges, fees, and penalties, to maximize water conservation consistent with statewide water restrictions. The Water Board is directed to adopt emergency regulations, as it deems necessary, pursuant to Water Code section 1058.5 to implement this directive. The Water Board is further directed to work with state agencies and water suppliers to identify mechanisms that would encourage and facilitate the adoption of rate structures and other pricing mechanisms that promote water conservation. The California Public Utilities Commission is requested to take similar action with respect to investor-owned utilities providing water services.

INCREASE ENFORCEMENT AGAINST WATER WASTE

9. The Water Board shall require urban water suppliers to provide monthly information on water usage, conservation, and enforcement on a permanent basis.

10. The Water Board shall require frequent reporting of water diversion and use by water right holders, conduct inspections to determine whether illegal diversions or wasteful and unreasonable use of water are occurring, and bring enforcement actions against illegal diverters and those engaging in the wasteful and unreasonable use of water. Pursuant to Government Code sections 8570 and 8627, the Water Board is granted authority to inspect property or diversion facilities to ascertain compliance-with water rights laws and regulations where there is cause to believe such laws and regulations have been violated. When access is not granted by a property owner, the Water Board may obtain an inspection warrant pursuant to the procedures set 1 forth in Title 13 (commencing with section 1822.50) of Part 3 of the Code of Civil Procedure for the purposes of conducting an inspection pursuant to this directive.

11. The Department shall update the State Model Water Efficient Landscape Ordinance through expedited regulation. This updated Ordinance shall increase water efficiency standards for new and existing landscapes through more efficient irrigation systems, greywater usage, onsite storm water capture, and by limiting the portion of landscapes that can be covered in turf. It will also require reporting on the implementation and enforcement of local ordinances, with required reports due by December 31, 2015. The Department shall provide information on local compliance to the Water Board, which shall consider adopting regulations or taking appropriate enforcement actions to promote compliance. The Department shall provide technical assistance and give priority in grant funding to public agencies for actions necessary to comply with local ordinances.

12. Agricultural water suppliers that supply water to more than 25,000 acres shall include in their required 2015 Agricultural Water Management Plans a detailed drought management plan that describes. the actions and measures the supplier will take to manage water demand during drought. The Department shall require those plans to include quantification of water supplies and demands for 2013, 2014, and 2015 to the extent data is available. The Department will provide technical assistance to water suppliers in preparing the plans.

~~f.l U:.,lltlf•

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Exhibit No. SCE-01

Witness: Various

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13. Agricultural water suppliers that supply water to 10,000 to 25,000 acres of irrigated lands shall develop Agricultural Water Management Plans and submit the plans to the Department by July 1, 2016. These plans shall include a detailed drought management plan and quantification of water supplies and demands in 2013, 2014, and 2015, to the extent that data is available. The Department shall give priority in grant funding to agricultural water suppliers that supply water to 10,000 to 25,000 acres of land for development and implementation of Agricultural Water Management Plans.

14. The Department shall report to Water Board on the status of the Agricultural Water Management Plan submittals within one month of receipt of those reports.

15. Local water agencies in high and medium priority groundwater basins shall immediately implement all requirements of the California Statewide Groundwater Elevation Monitoring Program pursuant to Water Code section 10933. The Department shall refer noncompliant local water agencies within high and medium priority groundwater basins to the Water Board by December 31, 2015, which shall consider adopting regulations or taking appropriate enforcement to promote compliance.

16. The California Energy Commission shall adopt emergency regulations establishing standards that improve the efficiency of water appliances, including toilets, urinals, and faucets available for sale and installation in new and existing buildings.

INVEST IN NEW TECHNOLOGIES

17. The California Energy Commission, jointly with the Department and the Water Board, shall implement a Water Energy Technology (WET) program to deploy innovative water management technologies for businesses, residents, industries, and agriculture. This program will achieve water and energy savings and greenhouse gas reductions by accelerating use of cutting-edge technologies such as renewable energy-powered desalination, integrated on-site reuse systems, water-use monitoring software, irrigation system timing and precision technology, and on-farm precision technology.

STREAMLINE GOVERNMENT RESPONSE

18. The Office of Emergency Services and the Department of Housing and Community Development shall work jointly with counties to provide temporary assistance for persons moving from housing units due to a lack of potable water who are served by a private well or water utility with less than 15 connections, and where all reasonable attempts to find a potable water source have been exhausted.

19. State permitting agencies shall prioritize review and approval of water infrastructure projects and programs that increase local water supplies, including water recycling facilities, reservoir improvement projects, surface water treatment plants, desalination plants, stormwater capture, and greywater systems. Agencies shall report to the Governor's Office on applications that have been pending for longer than 90 days.

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Exhibit No. SCE-01

Witness: Various

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20. The Department shall take actions required to plan and, if necessary, implement Emergency Drought Salinity Barriers in coordination and consultation with the Water Board and the Department of Fish and Wildlife at locations within the Sacramento- San Joaquin delta estuary. These barriers will be designed to conserve water for use later in the year to meet state and federal Endangered Species Act requirements, preserve to the extent possible water quality in the Delta, and retain water supply for essential human health and safety uses in 2015 and in the future.

21. The Water Board and the Department of Fish and Wildlife shall immediately consider any necessary regulatory approvals for the purpose of installation of the Emergency Drought Salinity Barriers.

22. The Department shall immediately consider voluntary crop idling water transfer and water exchange proposals of one year or less in duration that are initiated by local public agencies and approved in 2015 by the Department subject to the criteria set forth in Water Code section 181 0.

23. The Water Board will prioritize new and amended safe drinking water permits that enhance water supply and reliability for community water systems facing water shortages or that expand service connections to include existing residences facing water shortages. As the Department of Public Health's drinking water program was transferred to the Water Board, any reference to the Department of Public Health in any prior Proclamation or Executive Order listed in Paragraph 1 is deemed to refer to the Water Board.

24. The California Department of Forestry and Fire Protection shall launch a public information campaign to educate the public on actions they can take to help to prevent wildfires including the proper treatment of dead and dying trees. Pursuant to Government Code section 8645, $1 .2 million from the State Responsibility Area Fire Prevention Fund (Fund 3063) shall be allocated to the California Department of Forestry and Fire Protection to carry out this directive.

25. The Energy Commission shall expedite the processing of all applications or petitions for amendments to power plant certifications issued by the Energy Commission for the purpose of securing alternate water supply necessary for continued power plant operation. Title 20, section 1769 of the California Code of Regulations is hereby waived for any such petition, and the Energy Commission is authorized to create and implement an alternative process to consider such petitions. This process may delegate amendment approval authority, as appropriate, to the Energy Commission Executive Director. The Energy Commission shall give timely notice to all relevant local, regional, and state agencies of any petition subject to this directive, and shall post on its website any such petition.

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Exhibit No. SCE-01

Witness: Various

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26. For purposes of carrying out directives 2-9, 11, 16-17, 20-23, and 25, Division 13 (commencing with section 21 000) of the Public Resources Code and regulations adopted pursuant to that Division are hereby suspended. This suspension applies to any actions taken by state agencies, and for actions taken by local agencies where the state agency with primary responsibility for implementing the directive concurs that local action is required, as well as for any necessary permits or approvals required to complete these actions. This suspension, and those specified in paragraph 9 of the January 17, 2014 Proclamation, paragraph 19 of the April 25, 2014 proclamation, and paragraph 4 of Executive Order B-26-14, shall remain in effect until May 31, 2016. Drought relief actions taken pursuant to these paragraphs that are started prior to May 31, 2016, but not completed, shall not be subject to Division 13 (commencing with section 21 000) of the Public Resources Code for the time required to complete them.

27. For purposes of carrying out directives 20 and 21, section 13247 and Chapter 3 of Part 3 (commencing with section 85225) of the Water Code are suspended.

28. For actions called for in this proclamation in directive 20, the Department shall exercise any authority vested in the Central Valley Flood Protection Board, as codified in Water Code section 8521, et seq., that is necessary to enable these urgent actions to be taken more quickly than otherwise possible. The Director of the Department of Water Resources is specifically authorized, on behalf of the State of California, to request that the Secretary of the Army, on the recommendation of the Chief of Engineers of the Army Corps of Engineers, grant any permission required pursuant to section 14 of the Rivers and Harbors Act of 1899 and codified in section 48 of title 33 of the United States Code.

29. The Department is directed to enter into agreements with landowners for the purposes of planning and installation of the Emergency Drought Barriers in 2015 to the extent necessary to accommodate access to barrier locations, land-side and water-side construction, and materials staging in proximity to barrier locations. Where the Department is unable to reach an agreement with landowners, the Department may exercise the full authority of Government Code section 8572. ·

30. For purposes of this Executive Order, chapter 3.5 (commencing with section 11340) of part 1 of division 3 of the Government Code and chapter 5 (commencing with section 25400) of division 15 of the Public Resources Code are suspended for the development and adoption of regulations or guidelines needed to carry out the provisions in this Order. Any entity issuing regulations or guidelines pursuant to this directive shall conduct a public . meeting on the regulations and guidelines prior to adopting them.

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Exhibit No. SCE-01

Witness: Various

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31. In order to ensure that equipment and services necessary for drought response can be procured quickly, the provisions of the Government Code and the Public Contract Code applicable to state contracts, including, but not limited to, advertising and competitive bidding requirements, are hereby suspended for directives 17, 20, and 24. Approval by the Department of Finance is required prior to the execution of any contract entered into pursuant to these directives.

This Executive Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.

I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this Order.

IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 151 day of April2015. ·

EDMUND G. BROWN JR. Governor of California

ATTEST:

ALEX PADILLA Secretary of State

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Exhibit No. SCE-01

Witness: Various

,. :

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•

•

•

E-4

PUBLIC Ul'ILITIES C(lroSSICt~ OF 'IHE STAre OF CALlFamlA

RESCLUl'ICN 00. E-3238 July 24, 1991

RESOim'IOO E-323B. ORDER AtJIH:ruZI»:; AIL urlLITIES ro ESTABLISH CATASIroPHIC tVEm' IDrnANIXM 1£'O:UlTS, AS DEFINED, 'IO IIDXlRD ccsrs RESULTI»:; f'Kl{ DfX::I.MfD DISASTERS.

'!his Resolution auth:>rizes each p.tblic utility as defired UJrler Section 216 of t.te Public Utilities Code, except carm:>n carriers an::i toll bri~ coq:ora tions, to establish a lT81Oran:itIn accoont to ra:x>rd costs of t (a) restoring utility service to its custarers; (b) repairing, replacing or restoring daImged utility facilities; ani (c) emplying with NJ DIOCffiSICN

Q\ O::tober 11, 1989, lbrthem california .,,-as rocked by a IMjor ea.rt}quake that wreaked havoc an::l des tnx:tion • Lives were lost am there was extensive damage to p.ililic and private facilities over a wide area oorth ard scuth of t.te ~ets epicenter in Santa Cruz County. Regulatei utilities' facilities were hit hard along with t.b:>se of other rusinesses, g::r.rernrent arrl irrlividuals in t.te affected area. 0J.r experieoce in the qua1


Exhibit No. SCE-01

Witness: Various

•

•

• Resolution lb. E-3238 July 24, 1991

tennine tmir reasonablemss. 'Ihe Ccmnission subsequently detennl.ood that only costs iocurred after tOO accounts "-'3re auth:>rizro "-'3re recoverable bacause to do othetwise W)Uld have constitute::f retroactive rataraking •

'lhe regulatory constraints in{::osOO by the retroactive rataraking prohibition can result in an i.n3quity. Utilities that react imoodiately to repair damage will in::ur costs that lMy rx:>t be recoverable in rates. In contrast, utilities that decide to wait for tOO Connission to aut.rorize a narorairltJn account b3fore initiating ~irs airl arergen:::y services could record tOOir entire costs for repairs, replacarent or restoration, thus preserving tha p::>Ssibility of recovering tJ-ose costs in rates.

¥.aking available a pre-€Stablished I'fHTl)rarrllIn account ... herein a utility could inToodiately record disaster related costs \oWCUld minimize this inequity. 'Ib be equitable ard as effective as p::>Ssible, fNery utility w:JUld have to l:e given autrority to pre-establish such an account ard to enter into it all costs resulting fran declared disasters. Slrce rrany hurrlreds of utilities could I:e affectE:d, \o.-e believe that it is awropriate for tOO Carrnission to establish soch accounts on a geooric basis.

'!he Ccmnission's blanket autinrization to establish catastrophic event rraroran::nxn accounts will ensure that all fOtentially affected utilities are given the IMXirrun iocentive to restore service irrrrediatelyard ca!pletely after declared disasters. BEcause the intent of such accoonts 1s to capture for consideration for later recovery only th::>se costs associated with truly unusual, catastrophic events such as the l£:.ma Prieta earth:}uake, their use will be restricted to events declared disasters by Crities. Otffir events rot so officially designated are outside tOO scq:e an1 intent of this autrority an1 will rot te considerEd for rec


Exhibit No. SCE-01

Witness: Various

. '. , . • Fesolution lb. E-323B July 24, 1991

J

•

•

•

existing rates, arrl rossihly otOOr factors relevant to the particular utility and event. Before autOOrizi.ng recsed of representatives of the regulated enerw utilities with CNl> ~rw Braoch providing an infoDMI rrarber. '!he utilities all irrlicated stxoog sUfPJrt tor the CEY.l\ as described in this resolution. 1tey also, ~r, SU


Exhibit No. SCE-01

Witness: Various

. \ t

•

•

•

• Resolution tb. E-3238 July 24, 1991

CJICD observes that th9re is a substantial dlfferen:::e be~n an established, active regulatory balaocing account such as tte Energy Cost Mjustrrent Clause (0CllC) or the Electric Revenue hijustmmt ~hanism (ERA!i) am 1:.00 prq:osed roochanism for catastrq:hlc events. FCICs, ERAMs aM other active bal~lng accounts are the subjects of stardard requlatory reviews aM usually harrlle only the differeoces be~ projocted aIrl actual results in a future period. 'Ih¥ also adiress the rrost significant of all of the utilities' h.lsiness risks. rizing utilities to establish Catastrophic EVent M;m)rardtIn kcounts in advaoce to accurulate such costs, tOO Carmission can t:arOVe a p)tential disi.rcentive to utilities' prcrrpt response to future declared disasters.

3. A catastrophic event sh::luld be defi.rro as ~ "'hlch results in the official d3claration of a disaster by carpetent state or federal auth:>rity •

-4-

27


Exhibit No. SCE-01

Witness: Various

, . . '

•

•

•

, Resolution lb. &-3238 July 24, 1991

4 • la::ause recovery in rates is J¥)t guaranteed by the creation of aM b:x:lking into rrarorardun accounts aM parties \oOJld have an OftX>rtunity to review the costs iocluded in th2ro in the future, it is afPropriate to authorize pUblic utilities, except oommon carriers and toll bridge coq:orations, to establish catastrophic Event fuTOrardIn kcamts prospectively wit:taIt hearing.

5. Each eoorgy utility desiring to avail itself of a Catastrophic Event M:m::>ra.rrllxn kcount sOCwuld be required to file am rrake effective on thirty days' ootice an advice letter with propJSed tariff sheets reflecting its establislTrent. Telecamunications, "-'ater aM othrr utilities which 00 oot irclude such accounts in ~ir tariffs sh::)uld be required to infonn the Director of CJD) in advaoce in writing of tOO effoctive date such an account is to be established. Consistent with ~ p1r'f05e of rraroran::hm accounts, 00 utility slo1ld te allo.m to make entries into its Catastrophic Event »:m:>ran::ft.rn Account for costs iocurred before its establislTrent.

6. SOCwuld a declared disaster occur, each affectOO utility \oi'hich has previously established a Catastrophic Event JoBrorarrltIn h:::ccunt sh:Juld be required to inform tOO Executive Director by letter within 30 days after the catast.ro{h.ic event, if possible, if it has started b:x:lking costs in tie CEMA. Costs lxx>ked in C'OJlreCtion with events \o.hlch oarpetent state or federal .auth:>rities do oot subsequently officially declare to be disasters sh::>uld oot be eligible for later a..'TOrtization in rates. Copies of the letter slolld be nailed to the Director of CA(]) an::J the C1CD braoch chief for that in::Iustry. ~ letter sh:Juld specify the declared disaster, date, tiIre, location, service area affocted, inpact on the utility's facilities, arrl an estinate of the extraordinary costs expectOO to be in:urred, with costs due to expense arrl capital itans s}o..n separately.

7 • ~ costs recorded in the account sh:Juld only be recoverable in rates foll~ing a request by the affocted utility, a SOCMing of their reasonableness, aM awrova1 by tie O:mnission. Soch a request shJuld be Irade by a fomal awlication specifically for that p.trpOSe, by ~lusion with a subsequent general rate case or other ratesetting request l or, for utilities eligible to request general rate iocreases by advice letter as specified in ~reral Order 96-A, Section VI, by filing an advice letter request with an awropriate sh:::Ming.

'lHEREI'OSed tariff sh::ets reflecting its establislIrent. Each other utility \o.hlch


Exhibit No. SCE-01

Witness: Various

. ., ;

•

•

•

. • Fesolution tb. E-3238 July 24, 1991

1nfonTI the Dit'eCtor of COltnission Mvisory ani O:npli~ Division lil advarce in "''riting of the effoctive date such an account is to be establistro. tb utility shall make entries into its catastJ:qlhic Event J.nrorarrlun Account for costs iocun:ed prior to its establislm:mt.

2. StoJld a dEclartrl disaster o:xur, each affected utility which has previously established a catastrophic Event furorard.in kcount shall, if {OSsible, infonn the Executive Director by letter within 30 days after tte catastrophic event if it has started b::;.oking costs in the catastrophic Event »:norarrllm kcount. Costs lx:x>ked in COf'lJ'l9ction with events which COl{letent state or federal authorities d:> rot s~ntly officially declare to be disasters shall rot be eligible for later amJrtization in rates tlmJugh tOO catastrophic Event M::=m:>rarrltin kco.mt rrechanism. Copies of the letter shall be IMiled to the Director of the Ccmni.ssion Mvisory ani catpliaoce Division arrl the camussion Advisory ani catpliaoce Division bran:::h chief for that iIrlustry. ~ letter shall sp3Cify tOO declared disaster, date, ti.rre, location, service area affected, inpact on the utllityts facilities, ard an estim3te of the extraoroi..nary costs expecte:::l to be in::urredJ with costs due to expense ani capital itans sh:Ml separately.

3. 'lhe costs recorded in a utility's catastrophic Event M:m>rardtn Account may be recovered lil rates only after a request by the affected utility, a sh:wing of their reasonabl~s I am approval by the Ccmnission. Such a request !My be m:lde by a fOrIMl application specifically for that p.lllX)Se, by i.J¥::lusion with a s~nt C]eOOral rate case or other ratesettinq request, or, for utilities eli9ible to reqoost general rate i..r'creases by advice letter as sp3Cified in Geooral O'l:'OOr 96-A, Section VI, by filing an advice letter request with an awropriate sh:Ming. Am:::mlts which ~ Ccmnission d.:es rot fird reasonable shall rot be lmluded in rates.

'Jba effective date of this Pesolution is today.

I certify that this Resolution \or'aS a


Exhibit No. SCE-01

Witness: Various

Date of Issuance June 16, 2014

96415169 1

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

SAFETY AND ENFORCEMENT DIVISION RESOLUTION ESRB-4June 12, 2014

R E S O L U T I O N

RESOLUTION ESRB-4. Directs Investor Owned Electric Utilities to take remedial measures to reduce the likelihood of fires started by or threatening utility facilities.

PROPOSED OUTCOME: This Resolution will cause Investor Owned Electric Utilities to take remedial measures to reduce the likelihood of fires associated with or threatening their facilities during the current drought.

SAFETY CONSIDERATIONS: This Resolution directs Investor Owned Electric Utilities to take measures to reduce the likelihood of fires associated with or threatening their facilities, which will increase the safety to the general public in both forested areas and at urban–rural interfaces.

ESTIMATED COST: Unknown.

__________________________________________________________

SUMMARY

On January 17, 2014, Governor Edmund G. Brown, Jr. proclaimed a State of Emergency and directed state officials to take actions to mitigate against conditions that could result from a drought.1 In conjunction with his Emergency Proclamation, the Governor stated in his press release: “We can’t make it rain, but we can be much better prepared for the terrible consequences that California’s drought now threatens, including dramatically less water for our farms and communities and increased fires in both urban and rural areas.”2

On May 6, 2014, President Obama issued a press release, entitled: “Fact Sheet: What Climate Change Means for Regions across America and Major Sectors of the

1 http://gov.ca.gov/news.php?id=18368. 2 Id.

30


Exhibit No. SCE-01

Witness: Various

Resolution ESRB-4 June 12, 2014

2

Economy.”3 The press release was accompanied by the third U.S. National Climate Assessment (NCA), the most comprehensive scientific assessment ever generated of climate change and its impacts across every region of America and major sectors of the U.S. economy.4 In President Obama’s press release, he made clear that Climate Change is already having severe impacts. Thus, he stated that we must build a “sustainable future for our kids and grandkids,” and we must further act “to reduce the greenhouse-gas pollution that is driving climate change … to cope with changes in climate that are already underway.”5 In an overview of the NCA, President Obama referred to Southwest region of the United States as the hottest and driest region in the United States, which is already a parched region that is expected to get hotter and, in the southern half, significantly drier. “Drought and increased warming foster wildfires and increased competition for the scarce water resources for people in ecosystems.”6

On May 14, 2014, Governor Edmund G. Brown, Jr. proclaimed a State of Emergency in San Diego County. The proclamation cited major wildfires which were “difficult to contain” in part due to “extremely dry conditions.” The proclamation also noted that “the fires have damaged and continue to threaten critical infrastructure, including power lines.”7

In this context, where Climate Change has facilitated and exacerbated numerous wildfires, which have damaged and could continue to threaten the critical infrastructure of the utilities, the Commission finds that an emergency exists. Therefore, the instant Resolution directs Investor Owned Electric Utilities - i.e., Pacific Gas and Electric

3 http://www.whitehouse.gov/the-press-office/2014/05/06/fact-sheet-what-climate-change-means-regions-across-america-and-major-se. 4 http://nca2014.globalchange.gov/. 5 http://www.whitehouse.gov/the-press-office/2014/05/06/fact-sheet-what-climate-change-means-regions-across-america-and-major-se. 6 Id. 7 http://gov.ca.gov/news.php?id=18527. Under Rule 13.9 of our Rules of Practice and Procedure, the Commission may take official notice of matters that may be judicially noticed by the courts pursuant to Cal. Evid. Code §§ 450, et seq. Pursuant to Cal. Evid. Code § 452(c), judicial notice may be taken of official acts of the executive department of the United States or of any state of the United States. Clearly, as the heads of the executive branches of the United States and of the State of California, respectively, President Obama’s press releases and his release of official reports, as well as the Emergency Proclamations of Governor Jerry Brown, Jr., constitute official acts. In addition, in light of the overwhelming evidence presented by the scientific community, we find that the effects of greenhouse gas emissions on Climate Change, and the extremely dry conditions, droughts and large number of wildfires, which have resulted from the greenhouse gas emissions and which California is currently experiencing, are not matters reasonably subject to dispute. Therefore, these factual matters may be judicially noticed pursuant to Cal. Evid. Code § 452(h). We therefore have provided the websites of these official acts and undisputable facts.

31


Exhibit No. SCE-01

Witness: Various


3

Company (PG&E), Southern California Edison Company (SCE); San Diego Gas and Electric Company (SDG&E); PacifiCorp; Liberty Utilities, and Bear Valley Electrical Service (hereinafter, the “IOUs”) - to take additional remedial measures to reduce the likelihood of fires associated with or threatening their facilities during the current drought. BACKGROUND Climate Change We have long recognized that Climate Change would have adverse impacts in the State of California. In Decision (D.) 07-01-039, the Commission implemented Senate Bill (SB) 1368 by adopting greenhouse gas (GHG) emission performance standards (EPS). The purpose of the EPS was to significantly limit the GHG emissions allowed from the California IOUs’ future procurement contracts for electric power. In D.07-01-039, we stated:

“As the Legislature found in SB 1368, global warming will have devastating impacts on the economy, health and environment of the State of California.”8

More specifically, we stated:

“GHG emissions contribute to climate change. By increasing the number of extremely hot days, and the ‘frequency, duration, and intensity of conditions conducive to air pollution formation, oppressive heat, and wildfires,’ the public health of Californians could be dramatically affected.”9

Thereafter, in a series of Commission decisions aimed at reducing GHG emissions through our jurisdiction over the California IOUs, the Commission has tried to significantly reduce the GHG emissions caused by the IOUs’ own generation power plants or their procurement of electric power.10 The Governor, Legislature, the Commission, the California Air Resources Board (CARB) and virtually every other state

8 D.07-01-039, mimeo., at 262, Finding of Fact 218. 9 D.07-01-039, mimeo., at 214. (Internal citations omitted.) 10 See, e.g., D.12-12-032, D.12-11-015, D.11-12-036, D.10-12-036, and D.09-09-047 (funding and promoting energy efficiency programs to reduce the demand for electricity); D.11-12-019, D.11-07-031, and D.10-09-046 (promoting the California Solar Initiative); and D.09-12-047 (self-generation incentive program).

32


Exhibit No. SCE-01

Witness: Various


4

agency have taken significant actions to reduce GHG emissions and to attempt to slow down the effects of Climate Change.11 The Firestorms in 2007 After a disastrous series of wildfires in October of 2007, some of which were reportedly caused by the electric power lines of California IOUs, the Commission in 2008 issued an Order Instituting Rulemaking (R.) 08-11-005 designed to adopt new regulations to reduce the risk of further fire hazards (hereinafter “the Fire Safety OIR”). As the Commission explained in D.14-02-015, mimeo., at 3 - 4:

In October 2007, strong Santa Ana winds swept across Southern California and caused dozens of wildfires. The resulting conflagration burned more than 780 square miles, killed 17 people, and destroyed thousands of homes and buildings. Hundreds of thousands of people were evacuated at the height of the fire siege. Transportation was disrupted over a large area for several days, including many road closures. Portions of the electric power network, public communication systems, and community water sources were destroyed.

Several of the worst wildfires were reportedly ignited by power lines. These included the Grass Valley Fire (1,247 acres), the Malibu Canyon Fire (4,521 acres), the Rice Fire (9,472 acres), the Sedgewick Fire (710 acres), and the Witch Fire (197,990 acres). The total area burned by these five power-line fires was more than 334 square miles.

In response to the widespread devastation, the Commission issued Order Instituting Rulemaking (R.) 08-11-005 to consider and adopt regulations to reduce the fire hazards associated with overhead power lines and aerial communication facilities in close proximity to power lines. Most of the Commission's regulations regarding the construction, operation, and maintenance of overhead utility facilities are in General Order (GO) 95 and GO 165. A major goal of these GOs is to minimize public safety hazards, including fire hazards, associated with overhead utility facilities.

11 In Assembly Bill (AB) 32, CARB was made the lead agency to oversee these efforts. However, the Commission, like other agencies, was required to assist and coordinate with CARB in order to reduce GHG emissions from sources under the Commission’s jurisdiction, such as the IOUs. Cal. Health and Safety Code §§ 38501(g), 38561(a) and 38562(b).

33


Exhibit No. SCE-01

Witness: Various


5

R.08-11-005 was initially divided into two phases. Phase 1 focusedon fire-prevention measures that could be implemented in time forthe 2009 autumn fire season in Southern California. Phase 1concluded with the issuance of Decision (D.) 09-08-029. Phase 2addressed matters that required more time to consider andimplement. Phase 2 concluded with the issuance of D.12-01-032.

The Pace of Climate Change Is Increasing Although the Commission has known that GHG emissions contribute to Climate Change, the catastrophic consequences of Climate Change have now become a reality and the drought conditions threaten California with more frequent and extensive wildfires. The purpose of President Obama’s May 6, 2014 press release, accompanied by the third NCA, was “to underscore the need for urgent action to combat threats from climate change, protect American citizens and communities today, and build a sustainable future … [President Obama’s Climate Action] Plan acknowledges that even as we act to reduce the greenhouse-gas pollution that is driving climate change, we must empower the Nation’s communities, businesses, and individual citizens with the information they need to cope with changes in climate that are already underway.” (Emphasis added).

The Governor’s Emergency Proclamations on January 17, 2014 on the drought conditions throughout California and on May 14, 2014 concerning the San Diego Fires and their threat to power lines are consistent with President Obama’s message that Climate Change is increasingly occurring and we need further efforts to protect the public from its adverse effects today. We had previously found that the “fire season” in Southern California has been regularly occurring in the Fall each year. That was why the Commission had expedited procedures in its Phase 1 of its Fire Safety OIR, so that the additional fire safety rules could be in place by the 2009 Fall fire season.12

In light of these climate changes, which increase the wildfire threats to the IOUs’ critical infrastructure much earlier than in previous years and more significantly throughout the year, the Commission has good cause to find that waiting 30 days for comments could cause significant harm to the public. Under Rule 14(c)(9) of the Commission’s Rules of Practice and Procedure, the Commission reaffirms that public necessity supports a shortened notice period for one-time comments instead of waiting the full 30 days for comments. Therefore, the Commission shortened the time for comments on the Draft Resolution, such that comments were due by June 9, 2014.

12 D.09-08-029, mimeo., at 2.

34


Exhibit No. SCE-01

Witness: Various


6

DISCUSSION It Is Vital to Implement Mitigation Measures Against the Increased Wildfire Risk Caused by the Current Drought and Climate Change On January 17, 2014, Governor Edmund G. Brown Jr. proclaimed a State of Emergency and directed state officials to take actions to mitigate against conditions that could result from a drought.13 In conjunction with his Emergency Proclamation, the Governor stated in his press release, “we can be much better prepared for the terrible consequences that California’s drought now threatens, including dramatically less water for our farms and communities and increased fires in both urban and rural areas.”14 Commission’s Response to State of Emergency In response to the Governor’s directive, on February 18, 2014, Denise Tyrrell, Acting Director of the Safety and Enforcement Division (SED), sent a letter to the IOUs. The first directive that Acting Director Tyrrell instructed the IOUs to comply with was to take practicable measures necessary to reduce the likelihood of fires. Specifically, Acting Director Tyrrell’s letter states:

Due to the increased chance of large and devastating fires in California, I hereby direct you and your company to take all practicable measures necessary to reduce the likelihood of fires started by your facilities. This may include, but is not limited to the following actions:

Increased inspections in fire threat areas Re-prioritization of corrective action items Modification to protective schemes.15

The Commission generally supports these directives. More specifically, the IOUs should do the following: increase vegetation inspections and remove hazardous, dead and sick trees and other vegetation near the IOUs’ electric power lines and poles; share resources with the California Department of Forestry and Fire Protection (CalFire) to staff lookouts adjacent to the IOUs’ property; and clear access roads under power lines for fire truck access. 13 http://gov.ca.gov/news.php?id=18368. 14 Id. 15 See, e.g., Attachment 1, Letter dated February 18, 2014, from Denise Tyrrell, Acting Director of the Safety and Enforcement Division to Patrick M. Hogan, PG&E’s Vice President Asset Management, Electric Operations.

35


Exhibit No. SCE-01

Witness: Various


7

Acting Director Tyrrell’s letter also offered the Safety and Enforcement Division’s assistance to IOUs for reducing the likelihood of wildfires, if, for example, and IOU discovers a Safety Hazard, as defined by General Order 95, Rule 18-B and a third party is restricting the IOU’s access to remedy the situation.16

We fully support the above directive, and by this Resolution, order the IOUs to comply. We note that nothing in this Resolution expands or restricts any requirements that are currently applied to utilities, including General Order 95. We further require that IOUs confer with Acting Director Tyrrell as to her designations of the appropriate SED staff to receive such notifications.

Subsequent Events Support Acting Director Tyrrell’s February 18, 2014 Directive

On March 26, 2014, George Gentry, Executive Officer of the California Board of Forestry and Fire Protection, sent a letter to the Commission stating, in part:

[T]he Board unanimously directed me to send a letter that not only endorsesthe action of the CPUC, but strongly encourages the CPUC to supportfunding the Utilities at the appropriate levels to conduct this importantelectric vegetation management work.…The Utilities can perform significant work that helps to ensure public safety.Given the appropriate resources, a significant public private partnership could beforged. We support timely completion of that work in the face of the extremeconditions presented by this drought.17

On May 14, 2014, Governor Edmund G. Brown Jr. proclaimed a State of Emergency in San Diego County, which cited major wildfires which were “difficult to contain” in part due to “extremely dry conditions” and which further noted that “the fires have damaged and continue to threaten critical infrastructure, including power lines.”18

Furthermore, CalFire posts fire statistical data on their website19 for fires to which CalFire has responded. This data shows that CalFire has responded to over 200 more

16 See, e.g., Attachment 1, Letter dated February 18, 2014, from Denise Tyrrell, Acting Director of the Safety and Enforcement Division to Patrick M. Hogan, PG&E’s Vice President Asset Management, Electric Operations. 17 See Attachment 2, Letter dated March 26, 2014 from George Gentry to the Commission. 18 http://gov.ca.gov/news.php?id=18527. 19 See http://cdfdata.fire.ca.gov/incidents/incidents_statsevents.

36


Exhibit No. SCE-01

Witness: Various


8

fires in 2014 as compared to 2013, during the same time period (i.e., January 1, 2014 through May 24, 2014), and over 500 more fires have occurred when compared to the five-year average for the same interval. Moreover, this period analyzed above is well before the Fall, when the fire season in Southern California has historically occurred as a result of even drier vegetation and stronger gusts of wind (i.e., the Santa Ana winds).20 The Vicious Cycle of Wildfires The problem with wildfires is not limited to the destruction they could cause to the utilities’ infrastructure (which threatens the safety and reliability of these services), let alone the threat the wildfires pose to the lives of people, the homes and businesses in the vicinity of the wildfires. The large or fast-spreading wildfires further threaten to destroy significant acres of forests, which otherwise are one of the major offsetting remedies to GHG emissions. In D.06-12-032, the Commission recognized the importance of forests in combatting Climate Change, when PG&E proposed its pilot Climate Protection Tariff (CPT) to provide offsets in advance of CARB’s implementation of cap and trade pursuant to AB 32. The Commission further stated in D.06-12-032, mimeo., at 39 – 40:

We are satisfied that forestry is an adequate sector on which to focus initial CPT program efforts, given that the California Climate Action Registry (CCAR) has already developed a protocol for forest-based projects. Moreover, no party objects to PG&E contracting for GHG reductions in the forestry sector. . . . [W]e agree with PG&E and other parties that conserving forests has positive environmental benefits beyond GHG emissions reductions, in the areas of water quality, habitat conservation, and prevention of stream erosion. Thus, we accept forestry as the first focus of PG&E's CPT project.

The President’s Climate Action Report of June 2013 provides further guidance for the current climate situation.21 At page 15, the Report identifies efforts to “reduce wildfire risk by removing extra brush and other flammable vegetation around

20 As stated, above, in the Fire Safety OIR, the Commission adopted different phases, so that by the end of Phase 1, the Commission could implement additional fire reduction standards before fire season began in the Fall season of 2009. See D.09-08-029, mimeo., at 2. 21 http://www.whitehouse.gov/sites/default/files/image/president27sclimateactionplan.pdf.

37


Exhibit No. SCE-01

Witness: Various


9

critical areas such as water reservoirs.”22 Moreover, recognizing that forests play a significant role in the mitigation of Climate Change, at page 11 the Report states:

“America’s forests play a critical role in addressing carbon pollution, removing nearly 12 percent of total U.S. greenhouse gas emissions each year. In the face of a changing climate and increased risk of wildfire, drought, and pests, the capacity of our forests to absorb carbon is diminishing. Pressures to develop forest lands for urban or agricultural uses also contribute to the decline of forest carbon sequestration. Conservation and sustainable management can help to ensure our forests continue to remove carbon from the atmosphere while also improving soil and water quality, reducing wildfire risk, and otherwise managing forests to be more resilient in the fact of climate change. The Administration is working to identify new approaches to protect and restore our forests, as well as other critical landscapes including grasslands and wetlands, in the face of a changing climate.”23

Consequently, California is currently in a vicious cycle, wherein due, in part, to Climate Change, it is losing large acres of forests from the wildfires, and less and less acres are available to remove the GHG emissions, thereby contributing to Climate Change. This is part of the reason that the Commission finds that California is currently facing an emergency situation. It is cognate and germane to our regulation of the utilities to require them to further protect their electric power lines and poles, as discussed herein, in order to prevent their facilities from causing wildfires and to protect their transmission and distribution facilities, which are threatened by wildfires. This is essential, so that the people of the State of California can continue to rely upon the IOUs’ critical electric infrastructure, for the provision of safe and reliable electric service. In addition, the utilities can help reduce the risk of wildfires by coordinating with CalFire and engaging in certain forest management efforts. The Commission’s Resolution is consistent with our obligations under AB 32 to help ensure that the IOUs under our jurisdiction reduce GHG emissions. We also find it noteworthy that in 2012, the California Legislature passed SB 1122. SB 1122 amended Cal. Pub. Util. Code § 399.20(f) by adding, among other things, a new subpart (2)(A)(iii), which directs the electrical corporations to procure at least 250 megawatts (MW) from developers of new bioenergy projects, including 50 MW from forest biomass facilities (i.e., “bioenergy using byproducts of sustainable forest management”). This subpart further clarifies that these bioenergy projects must be from 22 Id. at 15. 23 Id. at 11.

38


Exhibit No. SCE-01

Witness: Various


10

sustainable forest management in “fire threat treatment areas,” as designated by CalFire.24 Ratepayer Protections The discussion above indicates the exigent need for action on the part of IOUs to ensure public safety and reliable service from the wildfire threats. We are aware of multiple mechanisms that are already available for utilities to recover such costs. For example, in the Fire Safety OIR, we established the Fire Hazard Prevention Memorandum Accounts (FHPMAs) as a mechanism that could be used to seek recovery of costs.25 Also, IOUs have funding in their General Rate Cases (GRCs), including, specifically authorized vegetation management costs with a one-way balancing account.26 To the extent that additional funding is reasonable to address the wildfire threats, beyond such accounts, cost recovery through the Catastrophic Event Memorandum Accounts (CEMAs) may be sought. However, the Commission may analyze such costs to determine if they are truly incremental, and meet the other requirements of CEMA.27 Consistent with Commission practice, double collection of costs is strictly prohibited. In addition, only costs incurred after the effective date of SED’s Acting Director Denise Tyrrell’s February 18, 2014 letter, which are not recoverable in another utility account, shall be eligible for CEMA treatment. Further, to ensure accountability, we shall select independent auditors for the costs associated with this Resolution and to review the IOUs’ other accounts to ensure that there is no double recovery and that the costs therein are reasonable. The utilities must keep records to justify the reasonableness of their costs. IOUs shall reimburse the Commission of the audit costs through ratepayer-funding. Of course, if and when an IOU submits its CEMA filing, any interested party may protest the filing. COMMENTS California Public Utilities Code § 311(g)(1) provides that this Resolution be served on all parties and subject to at least 30 days public review and comment prior to a vote of the Commission. California Public Utilities Code § 311(g)(3) provides that this 30-day

24 The Commission’s implementation of SB 1122 is pending in another proceeding. Our point is that this legislation similarly is requiring the IOUs to coordinate with CalFire in sustainable forest management techniques on the procurement side of their business, as well. 25 “We will verify and assess the reasonableness of recorded costs in application proceedings.” D.14-02-015, mimeo., at 86. 26 See, e.g., D.13-05-010, mimeo., at 147-156. 27 D.07-07-041, mimeo., at 3-6.

39


Exhibit No. SCE-01

Witness: Various


11

period may be reduced or waived pursuant to a Commission adopted regulation. In light of Climate Change, which has created a drought, expanded fire seasons and increased the threat of wildfires to the IOUs’ critical infrastructure much earlier than in previous years and more significantly throughout the year, the Commission reaffirms that the public necessity supports a reduction on the 30-day comment period. Pursuant to Rule 14.6(c)(9) of the Commission’s Rules of Practice and Procedures, notice requirements were therefore shortened for comments on this Draft Resolution, such that one-time comments were due on Monday, June 9, 2014. Comments were submitted by: Liberty Utilities (Liberty), Mussey Grade Road Alliance (MGRA), Pacific Gas & Electric Company (PG&E), PacifiCorp, San Diego Gas & Electric Company (SDG&E), Southern California Edison Company (SCE), and The Utility Reform Network (TURN). Most of these comments were generally supportive of this Resolution, though some modifications were urged. Liberty and PacifiCorp both argue against denying recovery for incremental expenses that those utilities incurred in reliance on SED’s February 18, 2014 letter, from Acting Director Denise Tyrrell, for the time period between her letter and the June 12, 2014 effective date of this Resolution. The Commission agrees that it was justifiable for utilities to rely on SED’s Letter, particularly because Governor Brown had already issued his Emergency Proclamation concerning drought conditions in January of 2014. Such costs would still be subject to review for ratepayer protections as described above. MGRA generally supports the Commission taking reasonable steps to address climate change and the need to mitigate risks caused by the drought and wildfires. MGRA argues that this Resolution should specify how its orders exceed current regulations and should prevent interference with existing regulations and ongoing proceedings. It is clear that this Resolution does not interfere with existing regulations and ongoing proceedings, but is rather a response to an emergency situation due in part to the drought conditions described by Governor Brown in his Emergency Proclamation. The Resolution requires the utilities to go above and beyond normal operating requirements, and provides for their recovery of incremental costs to address these emergency conditions. This is part of the utilities’requirement that they must keep their facilities safe and reliable based upon their obligations under California Public Utilities Code section 451. PG&E and SDG&E fully support the prompt adoption of this Draft Resolution. PG&E further supports the necessity of reducing the 30-day comment period so that the Commission may address the ongoing statewide drought conditions. PG&E provides updated facts concerning fires, burn acreage, and other severe conditions caused by the ongoing drought. PacifiCorp and SCE also support the Resolution, but they express concerns about Ordering Paragraph 2. Sharing resources with CalFire is seen as problematic because it relies, in part, on CalFire’s actions, and the requirement to clear access roads is also

40


Exhibit No. SCE-01

Witness: Various


12

potentially problematic due to ownership concerns. Yet, both PacifiCorp and SCE state that they already cooperate with CalFire. We remind the utilities that Ordering Paragraph 2 requires them to take “practicable” steps. Therefore, the expectation is that when such impediments are not present, utilities should be able to promptly comply with the Ordering Paragraph. Should impediments arise, utilities should take practicable steps to comply. TURN generally supports the Commission taking reasonable steps to address climate change and the need to mitigate risks of wildfires. However, TURN critiques the Draft Resolution for compounding what it views as an “already unduly fractured approach to addressing wildfire-related issues regarding utility facilities.” It further critiques SED’s diligence in assessing the issues, and offers TURN’s view of regulatory accounting mechanisms. TURN would have the Commission designate a single forum for dealing with the issues raised in the Resolution. However, TURN fails to address the fact that the State of California is currently in an emergency situation. Thus, we do not have the time to start a new proceeding to analyze these issues, while Californians are put at risk. TURN also does not fully recognize the ratepayer protections contained within the Resolution. For example, we have prohibited the utilities from double recovery in the various mechanisms, and have provided for independent auditors, chosen by the Commission, to review the costs. TURN, the Office of Ratepayer Advocates, and other intervenors, may challenge the reasonableness of utility actions and incurred costs, if and when utilities seek recovery under CEMA. FINDINGS OF FACT

1. On January 17, 2014, Governor Edmund G. Brown, Jr. proclaimed a State of Emergency and directed state officials to take actions to mitigate against conditions that could result from a drought.

2. On February 18, 2014, Denise Tyrrell, Acting Director of the Safety and Enforcement Division (SED) sent a letter to all Investor Owned Electric Utilities (IOUs) that in part directed them to take all practicable measures necessary to reduce the likelihood of fires by their facilities.

3. On March 26, 2014, George Gentry, Executive Officer of the California Board of Forestry and Fire Protection, sent a letter to the Commission in support of the goals of Denise Tyrrell’s letter.

4. On May 6, 2014, President Obama issued a press release, entitled: “Fact Sheet: What Climate Change Means for Regions across America and Major Sectors of the Economy,” in conjunction with his release of the third U.S. National Climate Assessment (NCA), the most comprehensive scientific assessment ever generated of climate change and its impacts across every region of America and major sectors of the U.S. economy.

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Exhibit No. SCE-01

Witness: Various


13

5. The purpose of President Obama’s May 6, 2014 press release was “to underscore the need for urgent action to combat threats from climate change, protect American citizens and communities today, and build a sustainable future … [and to provide the Nation] with the information they need to cope with changes in climate that are already underway.” (Emphasis added.)

6. The NCA referred to Southwest region of the United States as the hottest and driest region in the United States, which will become significantly drier, resulting in drought and wildfires.

7. On May 14, 2014, Governor Edmund G. Brown, Jr. proclaimed a State of Emergency in San Diego County citing major wildfires which were “difficult to contain” in part due to “extremely dry conditions” and noting that “the fires have damaged and continue to threaten critical infrastructure, including power lines.”

8. Statistical data from CalFire indicates an increased number of wildfires from previous years during the first five months of this year.

9. Wildfires threaten the utilities’ critical infrastructure, and, therefore the reliability of their vital services.

10. Utility-linked wildfires have had devastating impacts in California. 11. In addition to all of their other devastating impacts, wildfires perpetuate the Climate

Changes by destroying numerous acres of forests, which would otherwise reduce the amount of greenhouse gas emissions responsible for much of the Climate Changes.

12. The current drought and recent fires occur as examples establishing the severity of the impacts of Climate Change on Californians.

13. There is an increased chance of large and devastating wildfires occurring this year. 14. There are multiple mechanisms that are already available for utilities to recover costs

for mitigation or prevention of wildfires. For example, in the Fire Safety OIR, we established the Fire Hazard Prevention Memorandum Accounts (FHPMAs) as a mechanism that could be used to seek recovery of costs. Also, IOUs have funding in their General Rate Cases (GRCs), including, specifically authorized vegetation management costs with a one-way balancing account.

CONCLUSIONS OF LAW 1. The state of emergency that has emerged, as demonstrated by the Governor’s two

Emergency Proclamations and President Obama’s statements in conjunction with his release of the third U.S. National Climate Assessment, necessitates immediate action.

2. The Commission may take official notice of official acts of the President of the United States and the Governor of the State of California under Rule 13.9 of our Rules of Practice and Procedure and Cal. Evid. Code § 452(c).

3. The Commission may take official notice of factual matters not reasonably subject to dispute pursuant to Cal. Evid. Code § 452(h). In light of the overwhelming evidence

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Exhibit No. SCE-01

Witness: Various


14

presented by the scientific community, we find that the effects of greenhouse gas emissions on Climate Change, and the extremely dry conditions, droughts and large number of wildfires, which have resulted from the greenhouse gas emissions and which California is currently experiencing, are factual matters not reasonably subject to dispute.

4. Pursuant to Rule 14.6(c)(9) of the Commission’s Rules of Practice and Procedure and California Public Utilities Code § 311(g)(3), the Commission has found that public necessity requires that the Commission reduce the comment period on the Draft Resolution such that one-time comments must be filed by on Monday, June 9, 2014. Notice of this Draft Resolution and the shortening of time for comments to June 9, 2014 was provided by serving the link to the Draft Resolution by e-mail on the official service list in R.08-011-005 (i.e., the Fire Safety OIR) and by web publication pursuant to the Notice for Daily Calendar.

ORDER: 1. The Executive Director shall serve this Resolution on the Investor Owned Electric

Utilities: PG&E; SCE; SDG&E; PacifiCorp; Liberty Utilities, and Bear Valley Electrical Service.

2. Investor Owned Electric Utilities must take practicable measures necessary to reduce the likelihood of fires associated with their facilities. These measures include: increasing vegetation inspections and removing hazardous, dead and sick trees and other vegetation near the IOUs’ electric power lines and poles; sharing resources with the California Department of Forestry and Fire Protection (CalFire) to staff lookouts adjacent to the IOUs’ property; and clearing access roads under power lines for fire truck access.

3. Additionally, Investor Owned Electric Utilities should examine and create public-private partner

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