ent On gs *, é %, Qe 5 & Weed % * aoa eEINAN CG ae EDMUND G. BROWN JR + Governor 3 December 26, 2018 Honorable Holly Mitchell, Chair Honorable Phil Ting, Chair Joint Legislative Budget Committee Assembly Budget Committee Senate Budget and Fiscal Review Committee Honorable Anthony Portantino, Chair Honorable Lorena Gonzalez Fletcher, Chair Senate Appropriations Committee ‘Assembly Appropriations Committes Camp Fire, Woolsey Fire, and Hill Fire: Disaster Response-Emergency Operations Account Allocation—Statewide Costs Pursuant to the provisions of the Goverment Code section 8690.6, the following report is respectfully submitted. Government Code section 8690.6 makes Disaster Response-Emergency Operations Account funds available, upon allocation by the Director of Finance, to state agencies for disaster Fesponse operation costs incurred as a result of a proclamation by the Governor of a state emergency. On November 8, 2018, the acting Governor proclaimed a state of emergency in Butte County due to the effects of the Camp Fire. The Camp Fire is the deadliest and most destructive wildfire in California history, taking 86 lives and destroying more than 18,800 structures. The Camp Fire destroyed the Town of Paradise, which was home to almost 27,000 residents. While the Camp Fire was burning portions of Northern California, two other fires—the Hill Fire and the Woolsey Fire—were active in Los Angeles and Ventura Counties in the south. On November 9, 2018, the acting Governor proclaimed a state of emergency in Los Angeles and Ventura Counties due to the effects of these fires, which took three lives and burned more than 100,000 acres, destroying hundreds of homes and other structures. On November 12, 2018, the Govemor secured a Presidential Major Disaster Declaration to bolster the ongoing emergency response and help residents recover from the fires in Butte, Los Angeles, and Ventura Counties. The declaration helps people in the impacted counties through eligibility for programs and support, including housing assistance, food ald, unemployment assistanea, counseling and medical services and legal services. To ald in the recovery efforts, executive orders were issued to waive the one-week waiting period for unemployment insurance benefits for impacted individuals; suspend the fees associated with the replacement of specified documents and records; suspend specified procurement rules to allow state agencies to enter into contracts for goods, materials, and services necessary to quickly assist with response and recovery efforts; and strengthen coordination between state agencies on environmental restoration in fire impacted areas.-2- Recent estimates of the Camp Fire indicate that there were 19,531 private, public, commercial, and other minor structures destroyed or damagec the fire. Additionally, it is estimated that the Woolsey and Hill Fires destroyed or damaged 2,007 structures. These preliminary estimates could increase as more information is gathered on the damage. When structures are destroyed by fire, it generates debris that is dangerous to public health and the environment. Immediate removal of the debris is necessary to miligate the potential damage to the public health and the environment and to facilitate a quick recovery. The debris removal is done in two phases: the first phase is to remove all of the household hazardous waste such as paints, asbestos, propane, and other hazardous waste; and phase two is the removal of the ash and other debris. For the first phase of debris removal, Finance received, and notified the Legisleture of, requests from the California Department of Toxic Substances Control (DTSC) for $14.1 million for the removal and cleanup of household hazardous waste as a result of the Camp Fire, Woolsey and Hill Fires, For the second phase of debris removal, Finance has received a request from the California Department of Resources Recycling and Recovery (CalRecycle) for $2.077 billion for debris removal and cleanup for the Camp Fire and $140.5 milion for the Woolsey and Hill Fires, Additionally, the Office of Emergency Services expects to incur $252.1 million in costs tied to debris romoval operations. These are preliminary estimates and could increase as more information is gathered. ‘The Department of Finance, in consultation with the Office of Emergency Services, collected Information from various departments related to unexpected equipment, personnel, and other disaster assistance costs incurred in response to the acting Governor's State of Emergency Proclamations related to the November 2018 wildfires. At this time, overall costs for these fires are expected to exceed $3 billion (see Attachment I); however, the net General Fund cost will be substantially offset by federal cost sharing. While the timing and amount of federal feimbursements is unknown, the 2019-20 Governor's Budget will include an estimate of the net General Fund cost, Funding for these activities must be secured immediately to allow departments to execute contracts to begin or continue the recovery efforts. As outlined on Attachment I, the Director of Finance will allocate up to $2.895 billion from the Disaster Response-Emergency Operations Account pursuant to Government Code section 8690.6. This transfer amount has been reduced by expenditures captured through the Department of Forestry and Fire Protection "E-fund” and the previous DTSC transfer. Given the December 31, 2018 sunset of the Director of Finance's authority to access funds through the Disaster Response-Emergency Operations Account, the estimate includes $200 milion to be transferred to the Office of Emergency Services for contingent expenditures as the scope of the wildfire damages and costs are further evaluated. Itis anticipated that federal government reimbursemenis are forthcoming for a portion of these costs. Finance will continue to work with the Office of Emergency Services to ensure the state receives the maximum amount of allowable federal reimbursements.3+ We have reviewed the information submitted by impacted departments and concur with the estimates to address these immediate needs. The departments will commence work within 120 days of the Govemor’s emergency proclamations. However, based on past experience and the overall scope and complexity of the debris removal operations, itis anticipated that expenditures will continue beyond 120 days from the date of the emergency prociamations. If you have any questions or need additional Information regarding this overall request, please call Josh Gauger, Assistant Program Budget Manager, at (916) 445-8913, For specific questions regarding debris removal, please call Matt Almy, Assistant Program Budget Manager, at (916) 324-0043 Vagal. KEELY MARTIN BOSLER Director Attachment cc: Honorable Jim Nielsen, Vice Chair, Senate Budget and Fiscal Review Committee Honorable Jay Obernolte, Vice Chair, Assembly Budget Committee Honorable Richard Roth, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Shirley Weber, Chair, Assembly Budget Subcommittee No. 5 Mr. Mac Taylor, Legislative Analyst (3) Mr. Joe Stephenshaw, Staff Director, Senate Budget and Fiscal Review Committee Mr. Mark McKenzie, Staff Director, Senate Appropriations Committee Mr. Kirk Feely, Budget Fiscal Director, Senate Republican Fiscal Office Mr. Christopher W. Woods, Senate President pro Tempore’s Office (2) Mr. Christian Griffith, Chief Consultant, Assembly Budget Committee Mr, Jay Dickenson, Chief Consultant, Assembly Appropriations Committee Ms. Cyndi Hillery, Staff Director, Assembly Republican Fiscal Committee Ms. Cheri West, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Jim Richardson, Policy and Fiscal Director, Assembly Republican Leader's Office Mr, Jason Sisney, Assembly Speaker's Office (2)