The Barbed Wire - March 29, 2019

March 29, 2019
Governor Newsom Cautions PG&E Over Potential New Board
RCRC Ready to Revisit Tribal Cannabis Pathway
CPUC Takes First Round of Comments on Utility Wildfire De-Energization Rulemaking
Disaster Relief Stalled
Cannabis Banking Update
Bill of the Week: Assembly Bill 19 (Waldron) – Forestry and Fire Protection Grant Program
BULLETIN BOARD

Governor Newsom Cautions PG&E Over Potential New Board

On Thursday, Governor Gavin Newsom sent a cautionary letter to executives at the Pacific Gas and Electric Company (PG&E) over their presumed intent to reconstitute their board of directors with out-of-state executives with little to no experience in California, and inadequate expertise in utility operations.  The letter was a strong rebuke of the utility, stating that its intended board would be more “broken public trust and its responsibilities to ratepayers, wildfire victims, and employees,” while asserting that the state and its people deserve better treatment, and imploring the utility to look for Californians who have experience to provide its leadership.  

Governor Newsom formed a “strike team” in February 2019 to advise the state on PG&E’s bankruptcy proceeding and gave the group 60 days to map out a plan to help ensure that ratepayers’ service remains intact while wildfire victims get justice and ratepayers and employees remain protected.  Results from the team’s efforts are expected within the next few weeks. 

Governor Newsom’s letter can be accessed here.

RCRC Ready to Revisit Tribal Cannabis Pathway

A number of recent press articles have inaccurately characterized the issue of Native American Tribes being excluded from participating in California’s legal cannabis industry.  While encouraging that the topic of tribal cannabis is garnering attention, it’s inaccurate to claim “the legalization of recreational marijuana in California left American Indians out in the cold,” (San Diego Union Tribune), or “there’s no path in state law for Native Americans to join the regulated market.” (The Mercury News).  Existing state law provides a pathway – though we recognize it may be less than ideal for many tribes.  

Tribes are not being shut out – quite the contrary.  RCRC devoted nearly two years working with tribal leaders developing an alternative pathway allowing cannabis operations on tribal land to interact with California’s regulated cannabis market, resulting in a Memorandum of Understanding process mirroring the pathway used by many tribes with gaming operations.  While this proposal did not make it to the Governor’s desk, we believe it still provides a viable framework for local governments and tribes.  RCRC stands ready to revisit this agreement, which represents an opportunity for advancement in the most rural, economically-depressed regions of California.

CPUC Takes First Round of Comments on Utility Wildfire De-Energization Rulemaking

The first filing period on the California Public Utility Commission (CPUC) rulemaking on de-energization practices for investor-owned utilities (IOUs) ended on Monday, with RCRC filing extensive comments on the proposal’s first phase.  

The rulemaking is looking at future practices for California’s largest IOUs when performing targeted power shut offs to prevent ignitions during high wildfire hazard conditions, such as high winds, and will ultimately dictate how IOUs communicate, coordinate, and conduct power shut offs to help prevent catastrophic wildfires.

At the direction of RCRC’s Board of Directors, RCRC filed for official party status on March 18, 2019 in order to fully participate in the de-energization rulemaking.  RCRC’s comments include specifics about the timing and frequency of communication from IOUs, particularly with local governments and critical facilities that rely on electricity such as hospitals and elderly care facilities.  RCRC’s comments can be accessed here.  For more information on the rulemaking or RCRC’s comments, please contact Staci Heaton at sheaton@rcrcnet.org, or Leigh Kammerich at lkammerich@rcrcnet.org.

Disaster Relief Stalled

U.S. Senate Appropriations Committee Chairman Richard Shelby (R-Alabama) introduced his own version of a disaster relief package for victims of hurricanes, wildfires, and other natural disasters in 2018.  The bill would provide $13.45 billion in relief, less than the $14.2 billion in a package that passed the House earlier this year.  

Minority Leader Chuck Schumer (D-New York) threatened to oppose the bill if it does not provide more aid to Puerto Rico after the President told Senate Republicans he would block additional funding to the island territory. Senate Democrats have offered three different scenarios where they would vote to move a disaster relief bill out of the Senate: 1) vote on the bill passed by House Democrats earlier this year; 2) approve a filler appropriations bill and negotiate the final deal in a Senate-House Conference Committee; or 3) adopt an amendment from Senate Appropriations Ranking Member Patrick Leahy (D-Vermont) directing more relief funds to Puerto Rico.

Negotiations took on a partisan tone this week after President Trump signaled his opposition to more aid for Puerto Rico. Senate Majority Leader Mitch McConnell (R-Kentucky) took procedural steps to block Democrats from proposing amendments to the current bill and limit debate on the Senate Floor.

Advocates for disaster relief hope the Senate will find enough common ground to approve a package that would allow the Senate to proceed to a Senate-House Conference Committee for negotiations of a final bill.

A summary outline of the Republicans’ bill can be found on the Senate Appropriations Committee website.

Cannabis Banking Update

On Wednesday, the House Financial Services Committee approved the cannabis banking bill known as the SAFE Act by a 45-15 vote. The bill, which is strongly supported by RCRC, had unanimous support from Democrats on the Committee and received 11 “yes” votes among Republicans.  The SAFE Act is the first legislation voted out of a committee in Congress that would bring the cannabis industry into the banking system.  

House Financial Services Committee Chairwoman Maxine Waters (D-Los Angeles) forced the vote over objections from Republicans who attempted to delay the vote until legislation passed to de-schedule marijuana as a federally controlled substance or until further research is conducted into the SAFE Act’s proposed changes to existing anti-money-laundering statute.

The committee approved several amendments to the bill during the markup including a proposal from Representative Katie Porter (D-Orange) to clarify that credit unions and de novo banks would get the same safe harbor as banks under the safe harbor provisions of the SAFE Act.  The Committee also approved an amendment from cosponsor Representative Steve Stivers (R-Ohio) that would extend the safe harbor to insurers servicing the cannabis industry as well.

The SAFE Act is expected to pass the House in the coming weeks, but the path forward in the Senate remains unclear.  Senate Banking Committee Chairman Mike Crapo (R-Idaho) remains aloof and has not signaled whether he will hold a hearing on cannabis banking.  Sherrod Brown (D-Ohio), Ranking Member of the Senate Banking Committee, has also said he is not “pushing” Chairman Crapo on the issue yet.

Bill of the Week: Assembly Bill 19 (Waldron) – Forestry and Fire Protection Grant Program

RCRC is proud to sponsor Assembly Bill 19, authored by Assembly Member Marie Waldron (R-Escondido).  AB 19 establishes a grant program for counties to purchase equipment to clear brush and other fire-prone materials from around local roads.  

AB 19 provides vital community protection capacity to local governments to help counties purchase equipment to perform additional vegetation clearance around local roads.  Many rural counties, where vegetation is most dense, are socioeconomically disadvantaged. AB 19 enables counties to enhance vegetation treatment programs to prevent wildfires from originating around county-maintained roads. 

RCRC’s support letter can be accessed here.  Currently, AB 19 awaits consideration in the Assembly Natural Resources Committee.  For more information please contact Staci Heaton at (916) 447-4806 or sheaton@rcrcnet.org.

BULLETIN BOARD

Announcements regarding hearings, grants, and public comment notices of importance to California's rural counties.

Cannabis Cultivation Regulation Workshop Scheduled

The California Association of Environmental Health Administrators will be sponsoring a workshop to discuss environmental and safety issues associated with cannabis cultivation on Thursday, May 30, in Murphys.  The purpose of the workshop is to review and discuss environmental and safety issues related to regulated and illegal cultivation of cannabis.

The workshop will feature speakers from the Integral Ecology Research Center, the California Department of Food and Agriculture, the California Department of Pesticide Regulation, the Central Valley Regional Water Quality Control Board, and the Berkeley Department of Environmental Science.  The workshop will be structured so that there will be plenty of time for discussion by attendees.  Policy makers, regulators, law enforcement officers, and community members are encouraged to participate.

The workshop will be held Thursday, May 30, at the Ironstone Vineyards: 894 6 Mile Road, Murphys, California.  Meeting materials, including agenda/registration form can be accessed here.

2018 Annual Water Use Report Deadlines Approaching

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2020 Census Call to Action Press Conference – Watch Live

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