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Even before Pacific Gas & Electric was hit last Thursday with a $2.14 billion penalty for sparking devastating wildfires in 2017 and 2018, a bill was introduced to prohibit the utility from deducting it or other safety penalties from its tax liability.

It would be “obscene” to allow PG&E to take a tax deduction on the penalty imposed for sparking deadly wildfires, Sen. Jerry Hill (D-San Bruno) said. The fires at issue killed 120 people, destroyed 14,000 homes and wrought destruction across Northern California’s wine country and the town of Paradise.

Hill’s SB 1139 would not only bar PG&E from writing off penalties for safety violations. It applies to any private electric or gas utility that commits safety violations and is penalized by the California Public Utilities Commission.

“We should not allow PG&E, or any other electric or gas company, to claim a tax savings windfall for failing to make their systems safe,” Hill said.

Five years ago Hill sought to prevent PG&E from taking a tax deduction on the $1.6-billion fine the CPUC imposed on PG&E for its 2010 explosion of a natural gas pipeline that killed eight people and leveled a neighborhood in San Bruno, in Hill’s district.

SB 1139 would require utility companies to certify under penalty of perjury that none of the claimed tax write-offs were related to safety-related penalties.

The bill can't be heard by a legislative committee before March 21 because it was introduced in late February. It will be taken up first by the Senate Governance and Finance Committee.

The legislation is an urgency measure, requiring a two-thirds vote for passage.

Another bill related to utility safety is SB 947 by Sen. Bill Dodd (D-Napa). It would require the CPUC to evaluate aligning utility investments, ratemaking, expenses and operations with financial performance-based incentives and performance metrics. The measure requires the CPUC to evaluate the effect of the new metrics on utility safety, reliability and cost efficiencies, and report on the review by Jan. 1, 2022.

SB 947 is scheduled to be heard by the Senate Energy Utilities & Commerce Committee March 17.

Another bill introduced late last month seeks to advance the development of clean microgrids.

To keep power flowing during shutoffs, especially for critical services and vulnerable populations, SB 1215 introduced by Sen. Henry Stern (D-Calabasas), would establish the Local Government Deenergization Event Resiliency Program, overseen by the Office of Emergency Services. The program would support and fund microgrids and other local resiliency efforts. An unspecified sum from the State’s General Fund would be allocated to the new program for local renewable microgrid projects.

The bill would require utilities that provide distribution services to allow microgrid projects to continue operating even while disconnected from the system or permit it to disconnect from the utility grid.

SB 1215 also would require the California Public Utilities Commission and the California Independent System Operator to develop a method to account for the resource adequacy value of distributed storage no later than March 31, 2021. Resource adequacy is the supply cushion in place to ensure high electricity demand is met. The measure cannot be heard before March 22 because of its late introduction date.

A related bill would set wildfire mitigation safety shutoff protocols. SB 801 by Sen. Steve Glazer (D-Orinda) would require utilities to deploy backup generation or provide financial aid for backup power to customers with recognized medical needs.

It is scheduled to be heard by the Senate energy committee March 17.

SB 801 would go into effect immediately if it is approved by two-thirds of legislators.

Two other bills direct the California Energy Commission to help increase the amount of renewables, and clean transportation fuels and backup power during power outages.

SB 1240 by Sen. Nancy Skinner (D-Berkeley) would require the California Energy Commission, in coordination with the state grid operator, to evaluate ways to allow third parties to access investor-owned distribution systems. The measure aims to permit local governments and others to more easily participate in distribution transactions. That includes more fueling of the grid with distributed renewables and storage systems connected to the utility system, as well as backup resources, such as microgrids, which can provide power during power shutoffs.

SB 1240 was introduced last month and so can't be heard before March 22.

Another measure, SB 895 by Sen. Bob Archuleta (D-Pico Riviera) would require the CEC to provide technical assistance on the development of zero-emission fuels, fueling infrastructure, and fuel transportation technologies. It is among the energy bills to be heard March 17 by the Senate energy committee.