Key facts about the wildfire legislation

AB1054, a bill crafted to address the wildfire crisis and its impact on the state’s investor-owned electric utilities, appears poised to move swiftly through the Assembly following passage in the Senate Monday.

WHAT WOULD THE BILL DO?

The marquee component of AB1054 is a $21 billion wildfire fund that would help PG&E, Southern California Edison and San Diego Gas & Electric if their power lines are involved in more conflagrations. PG&E could access the fund only if it resolves its current wildfire claims and exits bankruptcy protection by June 30 next year. The bill would also require electric utilities to seek annual safety certifications from the state. The bill would also create an advisory board that would make recommendations about wildfire safety to state regulators.

WHO WILL PAY FOR IT?

The state would continue a Department of Water Resources charge that puts a few extra dollars on customers’ monthly utility bills. The charge, which originates from the energy crisis in the 2000s, was supposed to end in the coming years, and the governor’s advisers have said its extension could net $10.5 billion. Utilities themselves would also likely be expected to match the $10.5 billion using money diverted from shareholders.

HOW LIKELY IS THE BILL TO PASS?

Lawmakers need to assemble a two-thirds majority for AB1054 to become law. Some members have pushed for additional provisions, including around wildfire prevention and preparedness, and some consumer advocates have voiced discomfort with parts of the bill. Up From The Ashes, a group that lobbies for wildfire victims, and the California State Association of Counties have both said they support the bill. PG&E has taken a neutral position, according to a company spokeswoman.

WHAT’S NOT IN THE BILL?

AB1054 does not propose any changes to inverse condemnation, the legal doctrine that holds California utilities responsible for damage caused by their equipment even if they were not negligent. PG&E cited the doctrine as a factor in its bankruptcy filing.

ARE THERE OTHER RELATED BILLS?

Yes. A second bill, split off from AB1054, would create a new entity called the California Catastrophe Response Council to oversee the administrator of the wildfire fund. The bill would also create a new government entity called the Office of Energy Infrastructure Safety that would eventually assume the duties of a temporary wildfire safety division that would be established at the California Public Utilities Commission. The second bill can pass on a majority vote, but it would be operative only if AB1054 passes as well.