The Barbed Wire - February 07, 2020

February 7, 2020
RCRC Engages in PG&E Co-Op Discussion and Outlines Questions on Behalf of Rural Communities
RCRC Files Comments on the Draft Water Resilience Portfolio Initiative
President Trump Delivers 4th State of the Union Address
Cannabis Update
Bill of the Week: Assembly Bill 1958 (Cooper) – State Plan of Flood Control
BULLETIN BOARD
LEGISLATIVE AND REGULATORY UPDATE

RCRC Engages in PG&E Co-Op Discussion and Outlines Questions on Behalf of Rural Communities

In early January, RCRC staff and a number of members of the RCRC Board of Directors met with San Jose Mayor Sam Liccardo and Mr. Dan Richard (at their request) to explore the option of Pacific Gas and Electric Company (PG&E) becoming a customer-owned utility post-bankruptcy.  In response to those meetings, RCRC posed a list of lengthy questions on how such a co-op model would be structured, governed, and operated.  

“Given the devastating impacts recent wildfires and PSPS events have had on our member counties, we are interested in improving utility governance, increasing responsiveness to customers, and enhancing safety cultures,” stated the letter, signed by eight members of the RCRC Board of Directors.  “Energy usage and demographics make rural California sensitive to the prospective rate hikes that will be necessary to upgrade PG&E’s aging infrastructure to reduce future wildfire risk, increase system reliability, and avoid the need for widespread PSPS events.  We are intrigued by your efforts to refocus PG&E on its customers, reduce the cost of acquiring capital for system improvements, and compensating wildfire victims.  At the same time, we have many questions about how a very large customer-owned utility will be structured and operated.”

The questions RCRC posed cover a number of issues associated with the proposal, including items related to:

  • Governance;
  • Corporate structure;
  • CPUC oversight, service territory, and protections for rural ratepayers;
  • Taxation;
  • Provider of last resort; and,
  • Financial and operational stability.

As a whole, RCRC would very much like to see an alternative model for the PG&E territory that vastly improves the status quo once it emerges from bankruptcy.  However, until the questions posed in the letter are answered, RCRC cannot endorse the proposal. 

RCRC’s letter can be accessed here.  As of publication, RCRC has not received a response.

RCRC Files Comments on the Draft Water Resilience Portfolio Initiative

Earlier this week, RCRC staff provided input on the Draft Water Resilience Portfolio Initiative, a suite of recommended actions to help California cope with more extreme droughts and floods, rising temperatures, declining fish populations, aging infrastructure and other challenges.  

“We appreciate that the Draft creates an opportunity for us to step back and re-assess how we think about California’s collective water future: from the upper watersheds to the managed systems that support our communities,” outlined Mary-Ann Warmerdam, RCRC Senior Legislative Advocate.  “The Public Comment Draft outlines a series of actions that recognizes regional diversity, local water management challenges, and the need for statewide investments in a variety of sectors.  RCRC believes the comprehensive nature of the Draft is both its strength as well as its weakness.  Namely, we would suggest that effort be made to identify priorities that can be achieved in specified timeframes; without some sense of the priorities, we are concerned that everything is a priority effectively translating into nothing being a priority, or so history would suggest.”

RCRC’s letter can be accessed here.

President Trump Delivers 4th State of the Union Address

On Tuesday, President Trump delivered his 4th State of the Union (SOTU) address.  During the address, President Trump called on Congress to "rebuild America's infrastructure," by passing the Senate Environment and Public Works Committee bill along with calls for increasing rural broadband access. 

The America’s Transportation Infrastructure Act (ATIA) (S. 2302) is the Senate’s $287 billion reauthorization of the expiring Fixing America’s Surface Transportation Act.  The ATIA is largely a continuation of highway policy as it has been done for decades, although it also has a first-ever climate title and buy-in from Democrats on the Environment and Public Works Committee.  In contrast to the Senate bill, last week House Democrats announced their $760 billion infrastructure plan, which includes yet-to-be produced surface transportation legislation from House Transportation Chairman Peter DeFazio (D-Oregon) and a laundry list of other priorities.  The two competing pieces of legislation are nowhere close to a compromise agreement.  However, with President Trump’s promotion of the Senate’s bill in his SOTU address, with its significantly lower price tag, the Senate proposal has quickly become the more realistic goal for an infrastructure deal.  Despite calls for compromise, both the Senate and House proposals are unlikely to ultimately pass the opposing chamber unless the November elections significantly alter the Congressional power balances.

Cannabis Update

On Wednesday, Politico held a webinar with its staff of Cannabis reporters.  The hour-long briefing focused on the current status of federal Cannabis legislation among other areas of Cannabis policy.  

The following is of particular interest to RCRC member counties:

Federal Cannabis Banking Legislation

On banking legislation, the Senate version of the bill has been “slowly meandering through the Senate” with its status subject to change week-by-week.  Despite this stalling, some Senators continue to express optimism in its revival, including one of the bill’s Senator sponsors Jeff Merkley (D-Oregon).  Senate Banking Committee Chairman Mike Crapo (R-Idaho) recently issued his guidance on what he would like changed in the legislation in order to gain his support.  Of the multiple changes that Senator Crapo detailed, the one that has seen by far the most industry backlash has been his proposal to only permit banks to accept marijuana clients that sell products with a maximum two percent THC concentration.  This two percent THC cap is significantly lower than most commercially viable cannabis products and is viewed as a non-starter for the currently legal cannabis industry.  THC level caps in general are also a concern for the banking industry, which worries that the existence of any THC cap would burden banks with the responsibility of monitoring and policing their cannabis clients in order to avoid penalty or fines from regulators.  Crapo has expressed some room for negotiation on his criticisms of the bill, but negotiations on the specifics of what he would compromise have yet to be discussed.

As for next steps for the legislative process, the lead Senators on the bill, Senator Merkley and Senator Cory Gardner (R-Colorado), are due to meet to discuss an immediate response to Senator Crapo’s demands, but have yet to do so because of the delay caused by the impeachment trial.  However, the window for getting a final version of the bill through the Senate and signed by the President is becoming more and more narrow given the month and a half delay and the quickly-approaching deadline of the November elections. 

Additional Marijuana Legislation

The MORE act, which is Representative Jerry Nadler’s (D-New York) bill to de-schedule marijuana and create a variety of social equity drug rehabilitation programs, is currently working its way through the eight committees of jurisdiction.  It has passed the House Judiciary Committee and the House Small Business Committee waived its jurisdiction, meaning that as of now only six more remain.  Further news is expected within the next two weeks on whether the remaining committees will hold a hearing or waive their jurisdiction.

Bill of the Week: Assembly Bill 1958 (Cooper) – State Plan of Flood Control

RCRC has lent its support to Assembly Bill 1958, authored by Assembly Member Jim Cooper (D-Elk Grove).  AB 1958 would protect critical flood protection infrastructure by bolstering the maintenance of levees throughout California. 

AB 1958 strengthens protections against the various threats to premature levee damages by prohibiting a person from concealing, defacing, destroying, modifying, cutting, altering, or physically or visually obstructing any levee that is part of the State Plan of Flood Control.  In addition, AB 1958 would authorize the Central Valley Flood Protection Plan and/or its designees to inspect and remove any obstructions made to any levee, and further authorizes peace officers to enforce provisions punishable by a misdemeanor. 

RCRC’s letter can be accessed here.  AB 1958 was introduced mid-January and awaits committee assignment.  Please contact Mary-Ann Warmerdam, RCRC Senior Legislative Affairs Advocate, at (916) 447-4806 or mwarmerdam@rcrcnet.org for more information.

BULLETIN BOARD

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

 

Fish and Game Commission Proposes Public Use Changes to Wildlife Areas, Public Lands, and Ecological Reserves

The California Fish and Game Commission (Commission) is a Gubernatorially-appointed body with regulatory authority over the state’s public lands and wildlife conservation.  In January, the Commission released a regulatory proposal to make public use changes to California Department of Fish and Wildlife’s lands, including designating recently acquired lands and removing properties the Department no longer possesses or manages.  

The proposal includes designating one property as a wildlife area, seven properties as ecological reserves, and making other site-specific changes that generally impact public access and/or public safety on these managed lands in various RCRC member counties, including Inyo, Mono, San Luis Obispo, Napa and Sonoma counties.

The Commission is holding two public hearings on this proposal and will accept comments orally or in writing no later than April 16, 2020.  The public hearings are scheduled for Friday, February 21st at 8 a.m., and Thursday, April 16th at 8 a.m. in Sacramento.

Click here  

 

GO-Biz Announces Cannabis Equity Grants for Local Jurisdictions

The Governor’s Office of Business and Economic Development (GO-Biz) has announced $30 million is available for cities and counties to promote equity and eliminate barriers to populations and communities that were disproportionately harmed by cannabis prohibition. Grant applications must be received by March 9, 2020 and will be awarded no later than May 1, 2020 for assistance in Cannabis Equity Assessment and Program Development, or Assistance for Cannabis Equity Program Applicants and Licensees.

Click here.

 

Central Valley Flood Protection Board Hosts Workshop on Climate Change in the San Joaquin Basin

The Central Valley Flood Protection Board will host a workshop on climate change in the San Joaquin Basin as it relates to the 2022 Central Valley Flood Protection Plan  (CVFPP) Update.

Department of Water Resources CVFPP Planning team will present information on current challenges, solutions analyzed in the San Joaquin Basin-Wide Feasibility Study and 2017 CVFPP Update, and an overview of the approach for analyzing climate change in the 2022 CVFPP Update.

Click here

 

Western Interstate Region Conference Coming to California

Join RCRC, Mariposa County, and the California State Association of Counties (CSAC) for the 2020 National Association of Counties’ (NACo) Western Interstate Region (WIR) Conference at Tenaya Lodge at Yosemite!  Mariposa County Supervisor Kevin Cann serves as WIR President, and is looking forward to hosting his colleagues from the 15 western states in Mariposa County.  Read More…

 

Shasta County Seeks Health and Human Services Deputy Branch Director

Click here

 

Alpine County Seeks Director of Finance

Click here

LEGISLATIVE AND REGULATORY UPDATE

RCRC members are encouraged to share letters addressed to state and federal representatives and regulatory bodies with RCRC’s Government Affairs staff.  Click “Read More” to access information related to the current status of legislation and regulations impacting California’s rural counties. 

 

Assembly Bill 19 (Waldron): Forestry and Fire Protection: Grant Program: Assembly Bill 19 Appropriates monies from the General Fund to the Department of Forestry and Fire Protection to be used to provide the local assistance grants for fire prevention activities. Requires the Department to prioritize projects that manage vegetation along streets and roads to prevent the ignition of wildfire and that need the funds for purposes of purchasing equipment necessary for the project. Status: AB 19 failed passage in the Assembly Appropriations Committee.  RCRC Status: Support

Assembly Bill 134 (Bloom): Safe, Clean, Affordable, and Accessible Drinking Water. Assembly Bill 134 would require funding from a Safe Drinking Water Fund or Safe and Affordable Drinking Water Fund to be displayed in the Governor's annual budget and requires the board by a specified date of each year to review the assessment of funding need and to prioritize the public water systems. Status: AB 134 awaits consideration in the Senate Environmental Quality Committee and the Senate Natural Resources & Water Committee.  RCRC Position: Watch

Assembly Bill 352 (Garcia): Wildfire Prevention, Safe Drinking Water.  Assembly Bill 352 enacts the Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of 2020, which, if approved by the voters, would authorize the issuance of bonds in the amount of $3,920,000,000 pursuant to the State General Obligation Bond Law to finance a wildlife prevention, safe drinking water, drought preparation, and flood protection program. Status: AB 352 awaits consideration in the Senate Environmental Quality Committee. RCRC Status: Watch

Assembly Bill 464 (Garcia): State Global Warming Solutions Act of 2006. Assembly Bill 464 Defines district under the State Global Warming Solutions Act to mean an air pollution control or an air quality management district. Specifies that the definition of contribution of natural sources under the Act includes contribution from catastrophic wildfires. Status: AB 464 has passed in the Assembly and awaits consideration from the Senate. RCRC Status: Support

Assembly Bill 916 (Muratsuchi): Oppose: Glyphosate. Assembly Bill 916 Prohibits a city, county, charter city, city and county, or a special district, as defined, from using any pesticide that contains the active ingredient glyphosate. Status: AB 916 awaits consideration in the Senate Agriculture Committee and the Senate Environmental Quality Committee. RCRC Status: Oppose

Assembly Bill 1080 (Gonzalez)/Senate Bill 54 (Allen): Circular Economy and Plastic Pollution Reduction. Assembly Bill 1080/SB 54 requires the state to reduce the waste associated with single use packaging and products 75 percent by 2030, requires the state to set standards for what is considered recyclable and compostable, and promotes the development of in-state manufacturing that uses recycled materials. Status: AB 1080 and SB 54 awaits consideration in the Senate and Assembly; respectively (Inactive File). RCRC Status: Support

Assembly Bill 1071 (Limon): Climate Change: Agriculture: Agricultural Climate: Assembly Bill 1071 requires the council to provide guidance in the development of, and to coordinate the activities of member agencies of the council for, a grant program, known as the Agricultural Climate Adaptation Tools Program, as specified, to provide funding for activities that include development of specified planning tools for adapting to climate change and developing resiliency strategies in the agricultural sector, using the best available science. Status: AB 1071 has passed in the Senate and awaits consideration in the Assembly. RCRC Status: Watch

Assembly Bill 1509 (Mullin): Solid Waste: Lithium Ion Batteries: Assembly Bill 1509 establishes the Lithium Ion Battery Recycling Program in the Department of Resources Recycling and Recovery. It requires a covered entity to provide a list of covered products that it sells or offers for sale in the state to the department and the total number of each covered product it sold in the state during the prior year, and to update those lists annually. Status: AB 1509 awaits consideration in the Senate Environmental Quality Committee. RCRC Status: Support in Concept

Assembly Bill 1840 (Ting): Recycling: Reports: Assembly Bill 1840 requires the Department of Resources Recycling and Recovery to make recommendations to the Legislature on how to improve the California Beverage Container Recycling and Litter Reduction Act to increase recycling of beverage container materials within the state and increase consumer redemption convenience. Status: AB 1840 awaits consideration from the Assembly Natural Resources Committee. RCRC Status: Pending

Assembly Bill 1841 (Salas): District Agricultural Associations: Fiscal Audits. Assembly Bill 1841 would require district agricultural associations to annually report the salary information of their employees and requires the chief executive officer and each director of a district agricultural association to attend ethics and conflict-of-interest training classes each year. Status: AB 1841 awaits consideration from the Assembly Agriculture Committee. RCRC Position: Watch

Assembly Bill 1847 (Levine): Electrical Corporations: Public Administrator: Assembly Bill 1847 authorizes the Public Utilities Commission, if the commission adopts a decision that includes findings that an electrical corporation is not complying with state law or rules, regulations, or other directives from the commission, to appoint a public administrator to the electrical corporation up to 180 days. Vests the public administrator with oversight authority over the electrical corporation's activities that impact public safety. Status: AB 1847 awaits consideration from the Assembly Utilities and Energy Committee. RCRC Status: Watch

Assembly Bill 1907 (Santiago): California Environmental Quality Act: Shelters: Assembly Bill 1907 Exempts from environmental review under the California Environmental Quality Act certain activities approved by or carried out by a public agency in furtherance of providing emergency shelters, supportive housing, or affordable housing. Status: AB 1907 awaits consideration from the Assembly Natural Resources and Housing and Community Committee. RCRC Status: Support

Assembly Bill 1915 (Chu): Electrical Corporations: Deenergization Events: Assembly Bill 1915 requires the PUC to establish rules under which PSPS events can be undertaken and to do a post-event review of the duration and geographic range of an event.  If the utility failed to comply with the rules and customers incurred losses, the PUC shall order the utility to pay claims for losses. Status: AB 1915 awaits consideration by the Assembly Utilities and Energy Committee. RCRC Status: Support

Assembly Bill 1916 (Chu): Deenergization Events: Notification: Languages:  Assembly Bill 1916 requires utilities to provide PSPS notifications in various languages, to survey customers to determine language preference and determine medical needs that require accommodation during a PSPS event, and to mitigate PSPS impacts for customers who rely on medical equipment or who have a medical condition that puts them at greater risk during a PSPS event. Status: AB 1916 awaits consideration by the Assembly Utilities and Energy Committee. RCRC Status: Pending

Assembly Bill 1919 (Bauer-Kahan): Pesticides: Enforcement Action. Assembly Bill 1919 allows the Director of Pesticide Regulation to determine that if violations of specified provisions of law relating to pesticides have been committed, the Director may levy a civil penalty for each violation. Status: AB 1919 awaits consideration from the Assembly Environmental Safety, Toxic Materials and Judiciary Committee. RCRC Position: Watch

Assembly Bill 1936 (Rodriguez): Price Gouging: Public Safety Power Shutoffs: assembly Bill 1936 provides that the state’s anti-price gouging laws apply upon the announcement of a public safety power shutoff. Status: AB 1936 awaits consideration from the Assembly Public Safety Committee. RCRC Status: Pending

Assembly Bill 1958 (Cooper): State Plan of Flood Control: Facilities: Assembly Bill 1958 would protect critical flood protection infrastructure by bolstering the maintenance of levees throughout California. Status: AB 1958 awaits consideration from the Assembly Water, Parks and Wildlife Committee. RCRC Status: Support

Assembly Bill 2033 (Wood): Deenergization: Spoilage Claims: Assembly Bill 2033 requires an electrical corporation that engages in a public safety power shutoff to compensate a customer for any qualified claim for spoilage of food or medication if the customer experienced an interruption in electrical service for greater than 8 hours and received less than 24 hours’ notice of the interruption. Status: AB 2033 awaits consideration in the Assembly RCRC Status: Support

Senate Bill 45 (Allen): Wildfire, Drought, and Flood Protection Bond Act 2020. Senate Bill 45 enacts the Wildfire, Drought, and Flood Protection Bond Act of 2020, which, if approved by voters, authorizes the issuance of bonds to finance projects to restore fire damaged areas, reduce wildfire risk, create healthy forests and watersheds, reduce climate impacts on urban areas and vulnerable populations, protect water supply and water quality, protect rivers, lakes and streams, reduce flood risk, protect fish and wildlife from climate impacts, and protect coastal lands and resources. Status: SB 45 has passed out from the Senate and awaits consideration from the Assembly. RCRC Status: Support

Senate Bill 378 (Wiener): Electrical Corporations: Deenergization Events: Senate Bill 378 makes a number of changes to increase disclosure of electrical system infrastructure needs and to improve the implementation of PSPS events, evaluate their impacts, and compensate individuals and local governments for associated losses.  The bill also incentivizes well-constructed, surgical PSPS events that are no larger than necessary to avoid wildfire risk. Status: SB 378 has passed out from the Senate and awaits consideration from the Assembly. RCRC Status: Support

Senate Bill 431 (McGuire): Mobile Telephony Service Base Transceiver Station Tower:  Senate Bill 431 requires the commission, in consultation with the Office of Emergency Services, to develop and implement performance reliability standards, as specified, for all mobile telephony service base transceiver station towers, commonly known as "cell towers," located within a commission-designated Tier 2 or Tier 3 High Fire Threat District. Status: SB 431 awaits consideration in the Assembly Communications and Conveyance Committee. RCRC Status: Pending

Senate Bill 559 (Hurtado): California Water Commission: Grant: Friant-kern Canal. Senate Bill 559 requires the grant to be part of a comprehensive solution to groundwater sustainability and subsidence in the San Joaquin Valley and would require the joint powers authority to demonstrate a funding match of at least 35 percent from user fees, local sources, federal funding, or a combination of these sources. Status: SB 559 failed passaged in the Assembly Appropriations Committee. RCRC Position: Support

Senate Bill 596 (Stern): In-home Supportive Services: Senate Bill 596 requires a county human services agency to inform each applicant for benefits under the IHSS program that the applicant may be eligible to receive that higher energy allowance and any advanced notifications that may be provided by a utility in an emergency. Status: SB 596 has passed out from the Senate and awaits consideration from the Assembly. RCRC Status: Support

Senate Bill 753 (Stern): Public Social Services: Emergency Notification: Senate Bill 753 permits elderly or disabled clients telephone numbers and e-mail addresses to be disclosed to the first responder and would specifically identify a public safety power shut-off as a public safety emergency. Status: SB 753 has passed out from the Senate and awaits consideration from the Assembly. RCRC Status: Support

Senate Bill 755 (Rubio): Insurance: Residential Property Insurance: Senate Bill 755 requires specified insurers who fail to renew or offer renewal of a policy of residential property insurance to make certain notifications to a policyholder regarding other options the policyholder may have, including information about the FAIR plan. Status: SB 755 passed in the Senate and awaits consideration from the Assembly. RCRC Status: Support

Senate Bill 799 (Dodd): Local Agency Services: Contracts: Napa & San Bernardino: Senate Bill 799 deletes the repeal date with regard to the pilot program under the Cortese Knox Hertzberg Local Government Reorganization Act in the Counties of Napa and San Bernardino. Status: SB 799 awaits consideration from the Senate Governance and Finance Committee.  RCRC Status: Watch

Senate Bill 807 (Nielson): Reclamation District No. 108: Hydroelectric Power: Senate Bill 807 Authorizes Reclamation District No. 108 to continue to exercise hydroelectric power authority until after January 1, 2021. Status: SB 807 awaits consideration from the Senate Governance and Finance Committee. RCRC Status: Support

Senate Bill 862 (Dodd): Planned Power Outage: Public Safety: Senate Bill 862 clarifies that public safety power shutoffs are included in the California Emergency Services Act and expands the universe of medically sensitive individuals for whom electrical corporations must mitigate public safety power shutoff event impacts. Status: SB 862 has been referred to the Senate Committee on Energy, Utilities and Communications. RCRC Status: Pending

Senate Bill 884 (Dodd): Education Finance: Emergencies: Power Shutoffs: Senate Bill 884 provides schools with funding to make up instructional days lost as a result of emergencies or other extraordinary conditions. Status: SB 884 awaits consideration in the Senate. RCRC Status: Pending

Senate Bill 917 (Wiener): Consumer Energy and Conservation Financing Authority: Senate Bill 917 Renames the California Consumer Power and Conservation Financing Authority the California Consumer Energy and Conservation Financing Authority it to acquire, by eminent domain, the assets or ownership PG&E and to break up the service territory if others want to take over the provisions of electricity in their over areas. Status: SB 917 has been recently introduced and awaits committee assignment. RCRC Status: Oppose.Unless. Amend