Bill Text: CA SB884 | 2021-2022 | Regular Session | Amended

California Senate Bill 884 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Electricity: expedited utility distribution infrastructure undergrounding program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-09-29 - Chaptered by Secretary of State. Chapter 819, Statutes of 2022. [SB884 Detail]

Download: California-2021-SB884-Amended.html

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— 2021–2022 REGULAR SESSION

Senate Bill

No. 884

Introduced by Senator McGuire

January 26, 2022

An act to ~~amend Sections 65940, 65943, and 65950 of, and to add Sections 65935 and 65960.7 to, the Government Code, and to~~ amend Section 8385 of, and to add Section 8388.5 to, the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL'S DIGEST

SB 884, as amended, 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 commission’s 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.

~~The Permit Streamlining Act requires public agencies to approve or disapprove of a development project within certain timeframes, as specified.~~

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 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 6 months. If the office approves the large electrical corporation’s plan, the bill would require the large electrical corporation to submit to the commission a copy of the plan and an advice letter requesting review and conditional approval of the plan’s costs and would require the commission to approve or deny the plan within 6 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, ~~and~~ hire an independent monitor to review and assess its compliance with its plan, ~~require each undergrounding project to fully exhaust all~~ apply for available federal, state, and other nonratepayer moneys ~~before any costs are recovered from ratepayers, and deem each undergrounding project to be a development project for purposes of the Permit Streamlining Act,~~ throughout the duration of the plan, and use those nonratepayer moneys to reduce the program’s costs on its ratepayers, as specified. The bill would authorize the commission to annually assess penalties on a large electrical corporation that fails to substantially comply with its plan.

Under existing law, a violation of ~~the Public Utilities Act or~~ any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because ~~certain of the above provisions would be part of the act and~~ a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program. ~~Additionally, by expanding the applicability of the Permit Streamlining Act to undergrounding projects, the bill would impose new duties on local agencies.~~

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 specified reasons.~~
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.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

The people of the State of California do enact as follows:

SECTION 1.Section 65935 is added to the Government Code, to read:
65935.
~~“Undergrounding development project” means an undergrounding project identified in a plan approved by the Public Utilities Commission pursuant to Section 8388.5 of the Public Utilities Code.~~
SEC. 2.Section 65940 of the Government Code, as amended by Section 4 of Chapter 161 of the Statutes of 2021, is amended to read:
65940.
(a)(1)Each public agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a development project. Each public agency shall revise the list of information required from an applicant to include a certification of compliance with Section 65962.5, and the statement of application required by Section 65943. Copies of the information, including the statement of application required by Section 65943, shall be made available to all applicants for development projects and to any person who requests the information.
(2)An affected city or affected county, as defined in Section 66300, shall include the information necessary to determine compliance with the requirements of subdivision (d) of Section 66300 in the list compiled pursuant to paragraph (1).
(b)The list of information required from any applicant shall include, where applicable, identification of whether the proposed project is located within 1,000 feet of a military installation, beneath a low-level flight path or within special use airspace as defined in Section 21098 of the Public Resources Code, and within an urbanized area as defined in Section 65944.
(c)(1)A public agency that is not beneath a low-level flight path or not within special use airspace and does not contain a military installation is not required to change its list of information required from applicants to comply with subdivision (b).
(2)A public agency that is entirely urbanized, as defined in subdivision (e) of Section 65944, with the exception of a jurisdiction that contains a military installation, is not required to change its list of information required from applicants to comply with subdivision (b).
(d)For purposes of this section, “development project” includes, but is not limited to, an undergrounding development project and a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
~~(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.~~
SEC. 3.Section 65943 of the Government Code, as amended by Section 7 of Chapter 161 of the Statutes of 2021, is amended to read:
65943.
(a)Not later than 30 calendar days after any public agency has received an application for a development project, the agency shall determine in writing whether the application is complete and shall immediately transmit the determination to the applicant for the development project. If the application is determined to be incomplete, the lead agency shall provide the applicant with an exhaustive list of items that were not complete. That list shall be limited to those items actually required on the lead agency’s submittal requirement checklist. In any subsequent review of the application determined to be incomplete, the local agency shall not request the applicant to provide any new information that was not stated in the initial list of items that were not complete. If the written determination is not made within 30 days after receipt of the application, and the application includes a statement that it is an application for a development permit, the application shall be deemed complete for purposes of this chapter. Upon receipt of any resubmittal of the application, a new 30-day period shall begin, during which the public agency shall determine the completeness of the application. If the application is determined not to be complete, the agency’s determination shall specify those parts of the application that are incomplete and shall indicate the manner in which they can be made complete, including a list and thorough description of the specific information needed to complete the application. The applicant shall submit materials to the public agency in response to the list and description.
(b)Not later than 30 calendar days after receipt of the submitted materials described in subdivision (a), the public agency shall determine in writing whether the application as supplemented or amended by the submitted materials is complete and shall immediately transmit that determination to the applicant. In making this determination, the public agency is limited to determining whether the application as supplemented or amended includes the information required by the list and a thorough description of the specific information needed to complete the application required by subdivision (a). If the written determination is not made within that 30-day period, the application together with the submitted materials shall be deemed complete for purposes of this chapter.
(c)(1)If the application together with the submitted materials are determined not to be complete pursuant to subdivision (b), the public agency shall provide a process for the applicant to appeal that decision in writing to the governing body of the agency or, if there is no governing body, to the director of the agency, as provided by that agency. A city or county shall provide that the right of appeal is to the governing body or, at their option, the planning commission, or both.
(2)There shall be a final written determination by the agency on the appeal not later than 60 calendar days after receipt of the applicant’s written appeal. The fact that an appeal is permitted to both the planning commission and to the governing body does not extend the 60-day period. Notwithstanding a decision pursuant to subdivision (b) that the application and submitted materials are not complete, if the final written determination on the appeal is not made within that 60-day period, the application with the submitted materials shall be deemed complete for the purposes of this chapter.
~~(d)Nothing in this section precludes an applicant and a public agency from mutually agreeing to an extension of any time limit provided by this section.~~
(e)A public agency may charge applicants a fee not to exceed the amount reasonably necessary to provide the service required by this section. If a fee is charged pursuant to this section, the fee shall be collected as part of the application fee charged for the development permit.
(f)Each city and each county shall make copies of any list compiled pursuant to Section 65940 with respect to information required from an applicant for a housing development project, as that term is defined in paragraph (2) of subdivision (h) of Section 65589.5, available both (1) in writing to those persons to whom the agency is required to make information available under subdivision (a) of that section, and (2) publicly available on the internet website of the city or county.
(g)For purposes of this section, “development project” includes, but is not limited to, an undergrounding development project and a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
~~(h)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.~~
SEC. 4.Section 65950 of the Government Code, as amended by Section 9 of Chapter 161 of the Statutes of 2021, is amended to read:
65950.
~~(a)A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:~~
(1)One hundred eighty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2)Ninety days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c).
(3)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c) and all of the following conditions are met:
(A)At least 49 percent of the units in the development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
~~(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.~~
~~(4)Sixty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.~~
(5)Sixty days from the determination by the lead agency that the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the project is exempt from that act.
~~(6)One hundred fifty days from the date the application for an undergrounding development project is deemed complete.~~
~~(b)This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.~~
(c)For purposes of paragraphs (2) and (3) of subdivision (a) and Section 65952, “development project” means a housing development project, as defined in paragraph (3) of subdivision (b) of Section 65905.5.
~~(d)For purposes of this section, “lead agency” and “negative declaration” have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.~~
~~(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.~~
SEC. 5.Section 65960.7 is added to the Government Code, to read:
65960.7.
(a)Notwithstanding any other law, only one permit from the lead agency and one permit from each responsible agency shall be required for all activities required to complete construction and begin operation of an undergrounding development project.
(b)When an application for an undergrounding development project complies with applicable, objective general plan, zoning, and other permitting standards and criteria in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the undergrounding development project or to impose conditions that would render the undergrounding development project financially infeasible, the local agency shall base its decision regarding the application on written findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(1)The undergrounding development project would have a specific, adverse impact on public health or safety, unless the undergrounding development project is disapproved or conditions are imposed that would render the undergrounding development project financially infeasible. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(2)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the undergrounding development project or imposing conditions on the undergrounding development project that would render it financially infeasible.
(c)If the local agency considers an undergrounding development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision, it shall provide the applicant with written documentation identifying the provision and an explanation of the reason it considers the undergrounding development project to be inconsistent, not in compliance, or not in conformity within 150 days of the date that the application for the undergrounding development project is determined to be complete.
~~(d)An application for an undergrounding development project shall be deemed approved by the applicable local agency if both of the following conditions are satisfied:~~
~~(1)(A)The local government fails to approve or disapprove the application within 150 days pursuant to paragraph (6) of subdivision (a) of Section 65950.~~
(B)Upon the expiration of the 150-day period described in subparagraph (A), the applicant shall provide notice to the local agency that the 150-day period has expired and the application is deemed approved pursuant to this paragraph. Within 30 days of receiving this notice, the local agency may seek judicial review of the operation of this section to the application.
~~(2)The applicant has complied with all public notice requirements applicable to the undergrounding development project or application.~~
(e)If the local agency requires a traffic control plan, or another submission or permit related to public safety or the obstruction of the right-of-way, the applicant shall not begin construction of the undergrounding development project until it has complied with that requirement.
~~(f)A local agency shall not unreasonably withhold, condition, or delay approval of an application for an undergrounding development project.~~

SEC. 6.SECTION 1.

Section 8385 of the Public Utilities Code is amended to read:

8385.

(a) For purposes of this chapter, the following 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 corporation’s 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 commission’s authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility.

SEC. 7.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 all of the following components:

(1) A plan for undergrounding distribution infrastructure through the year 2031.

(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, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts may be 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 vegetation management activities 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, 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 duration of the plan, and any cost containment assumptions, including the economies of scale necessary to reduce 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 six 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 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 20 days, submit to the commission a copy of the plan and an advice letter requesting review and conditional approval of the plan’s costs and including all of the following:

(A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and safety management 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 corporation’s three-year average undergrounding cost as a baseline.

(C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale for at least the first three years of the plan.

(D) A strategy for achieving cost reductions over time.

(2) Upon the commission receiving an advice letter pursuant to paragraph (1), the commission shall do all of the following:

(A) Distribute the advice letter to the service list for the large electrical corporation’s most recent general rate case proceeding.

(B) Provide notice of the advice letter in the media.

(D) Hold a public workshop for the presentation of the plan and to take public comment.

(E) On or before six months, review and approve or deny the advice letter. Before approving the advice letter, the commission may require the large electrical corporation to modify the advice letter.

(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. 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, ~~approved~~ selected by the office, to review and assess the large electrical corporation’s 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 corporation’s compliance with its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporation’s progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitor’s 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 electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitor’s 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 monitor’s report and whether the large electrical corporation has cured any deficiencies, and may recommend penalties to the commission.

(2) The commission may annually assess penalties on a large electrical corporation that fails to substantially comply with its plan.

(j)If the commission approves a plan, each undergrounding project identified in the plan shall be deemed a development project for purposes of the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code).
~~(k)Each undergrounding project constructed pursuant to~~

(j) Each large electrical corporation participating in the program shall ~~fully exhaust all~~ apply for available federal, state, and other nonratepayer moneys before any costs may be recovered from ratepayers. The commission shall ensure a large electrical corporation participating in the program continuously demonstrates that it is exhausting all available nonratepayer moneys for each undergrounding project. throughout the duration of its undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the program’s costs on the large electrical corporation’s ratepayers.

SEC. 8.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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 XIII B of the California Constitution.

SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.