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	<ns0:Description>
		<ns0:Id>20250AB__122899INT</ns0:Id>
		<ns0:VersionNum>99</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-21</ns0:ActionDate>
			</ns0:Action>
		</ns0:History>
		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>AB</ns0:MeasureType>
			<ns0:MeasureNum>1228</ns0:MeasureNum>
			<ns0:MeasureState>INT</ns0:MeasureState>
		</ns0:LegislativeInfo>
		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Essayli</ns0:AuthorText>
		<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Assembly Members Alanis, Castillo, Davies, DeMaio, Flora, Gallagher, Sanchez, and Wallis)</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Essayli</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Alanis</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Castillo</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Davies</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>DeMaio</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Flora</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Gallagher</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Sanchez</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Wallis</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title> An act to amend Section 8388.5 of the Public Utilities Code, relating to electricity. </ns0:Title>
		<ns0:RelatingClause>electricity</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Electricity: expedited utility distribution infrastructure undergrounding program.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires the commission to establish an expedited utility distribution infrastructure undergrounding program for large electrical corporations. In order to participate in the program, existing law requires a large electrical corporation to submit to the Office of Energy Infrastructure Safety a distribution infrastructure undergrounding plan, as provided. Upon approval of the plan by the office, existing law requires the large electrical corporation to submit to the commission an application requesting review and conditional approval of the plan’s costs and other specified information.</html:p>
			<html:p>This bill would specify that the approval of a distribution infrastructure undergrounding plan is not a project for
		purposes of the California Environmental Quality Act, as specified.</html:p>
		</ns0:DigestText>
		<ns0:DigestKey>
			<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
			<ns0:LocalProgram>NO</ns0:LocalProgram>
		</ns0:DigestKey>
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			<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
			<ns0:ImmediateEffectFlags>
				<ns0:Urgency>NO</ns0:Urgency>
				<ns0:TaxLevy>NO</ns0:TaxLevy>
				<ns0:Election>NO</ns0:Election>
				<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
				<ns0:BudgetBill>NO</ns0:BudgetBill>
				<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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	</ns0:Description>
	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_022C0EE9-0020-4840-9BDC-C1CC1F168199">
			<ns0:Num>SECTION 1.</ns0:Num>
			<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'4.1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'8388.5.'%5D)" ns3:label="fractionType: LAW_SECTION">
				Section 8388.5 of the 
				<ns0:DocName>Public Utilities Code</ns0:DocName>
				 is amended to read:
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			<ns0:Fragment>
				<ns0:LawSection id="id_B6644216-7F40-46FA-BC0C-87173C9EF1F4">
					<ns0:Num>8388.5.</ns0:Num>
					<ns0:LawSectionVersion id="id_71BB054B-8BD0-4599-8F85-5F642BB26FF3">
						<ns0:Content>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								Only a large electrical corporation may participate in the program.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								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, at minimum, all of the following components:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								A 10-year plan for undergrounding distribution infrastructure.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								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, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								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.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation 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, cost, 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.
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								A plan for utility and contractor workforce development.
							</html:p>
							<html:p>
								(6)
								<html:span class="EnSpace"/>
								An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								Publish the plan for public comment.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								Within nine 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 electrical 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.
							</html:p>
							<html:p>
								(e)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plan’s costs and including all of the following:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporation’s historical undergrounding costs.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								How the cost targets are expected to decline over time due to cost efficiencies and economies of scale.
							</html:p>
							<html:p>
								(D)
								<html:span class="EnSpace"/>
								A strategy for achieving cost reductions over time.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1).
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporation’s general rate case or a commission-approved balancing account ratemaking mechanism for system hardening.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days.
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application.
							</html:p>
							<html:p>
								(6)
								<html:span class="EnSpace"/>
								The commission shall consider
				  continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable.
							</html:p>
							<html:p>
								(f)
								<html:span class="EnSpace"/>
								If the plan is approved by the office and commission, the large electrical corporation shall do all of the following:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								Include ongoing work plans and progress in annual wildfire mitigation plan filings.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								Hire an independent monitor, 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.
							</html:p>
							<html:p>
								(g)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								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.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitor’s report.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								On
				  or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office.
							</html:p>
							<html:p>
								(h)
								<html:span class="EnSpace"/>
								The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website.
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								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.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The commission may assess penalties on a large electrical corporation that fails to substantially comply with a commission decision approving its plan.
							</html:p>
							<html:p>
								(j)
								<html:span class="EnSpace"/>
								Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration
				  of its approved 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.
							</html:p>
							<html:p>
								(k)
								<html:span class="EnSpace"/>
								An approval of a plan pursuant to this section is not a project as defined in Division 13 (commencing with Section 21000) of the Public Resources Code, provided that environmental review otherwise required by Division 13 (commencing with Section 21000) of the Public Resources Code occurs before any project approval that would authorize physical changes being made to the environment.
							</html:p>
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