Regional wildfire partnerships., the official text

An act to add Article 6.1 (commencing with Section 63048.51) to Chapter 2 of Division 1 of Title 6.7 of the Government Code, and to amend Sections 4208 and 4208.1 of, and to add Section 4208.2 to, the Public Resources Code, relating to fire prevention, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

Existing law establishes in the Department of Conservation the Regional Forest and Fire Capacity Program to support regional leadership to build local and regional capacity and develop, prioritize, and implement strategies and projects that create fire adapted communities and landscapes by improving ecosystem health, community wildfire preparedness, and fire resilience. Existing law requires the department, upon appropriation, among other things, to provide block grants to regional entities, as defined, to develop regional strategies and projects that create fire adapted communities and landscapes, as provided. Existing law authorizes regional entities to implement collaborative planning efforts with specified local entities and develop regional priority strategies that develop and support specified goals.
This bill would revise and recast the Regional Forest and Fire Capacity Program. The bill would, among other things, authorize regional entities to (1) implement collaborative planning efforts with insurance companies, private and public utilities, and other private and public entities, and (2) develop regional priority strategies that develop and support fire-resistant homes, businesses, and public buildings, as provided. The bill would authorize a public regional entity, or an entity or entities designated by a public regional entity, to organize a regional wildfire partnership, defined as either a partnership between a public regional entity and specified private entities or a joint powers authority, as provided, in order to support the regional priority strategies. The bill would require a regional wildfire partnership to submit an annual report to the Department of Conservation, as provided, and would require the department to make the reports publicly available on its internet website.
Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) within the Governor’s Office of Business and Economic Development and, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities, as provided.
This bill would authorize the I-Bank, in coordination with the Treasurer and the Department of Conservation, to issue revenue bonds to finance regional priority strategies developed by regional wildfire partnerships. The bill would establish the Regional Wildfire Partnership Revolving Fund (revolving fund) in the State Treasury, require moneys generated from the sale of bonds to be deposited in the revolving fund and used exclusively to support a regional wildfire partnership, and continuously appropriate moneys in the revolving fund to the I-Bank to support a regional wildfire partnership. By establishing a continuously appropriated fund, the bill would make an appropriation. The bill would require a regional wildfire partnership receiving funds from the I-Bank to enter into a repayment and participation agreement with the bank, specifying the funding commitments and reporting obligations. The bill would also authorize the I-Bank to provide technical assistance to regional wildfire partnerships.

The people of the State of California do enact as follows:

SECTION 1.
(a) The Legislature finds and declares all of the following:
(1) Wildfires pose an existential threat to communities in the wildland-urban interface, causing catastrophic loss of life, property, and natural resources and imposing escalating costs on homeowners, local governments, utilities, insurers, and the state.
(2) Effective wildfire risk reduction requires landscape-scale, regionally coordinated investment strategies that integrate vegetation management, structure hardening, community preparedness, and infrastructure resilience.
(3) Current wildfire spending is insufficient to result in the needed risk reduction at the scale required. In addition, current spending is not directed enough towards structural hardening and communitywide risk reduction.
(4) In the 2025–26 fiscal year, the State of California spent roughly $4,000,000,000 on wildfire, 90 percent of which went towards firefighting and fire suppression, and only 10 percent towards prevention.
(5) In 2025, according to Stanford University researchers, investor-owned utility planned wildfire expenditures totaled more than $9,000,000,0000, to be spent primarily on distribution line right-of-way clearance.
(6) Regional entities with established relationships, local expertise, and accountability to affected communities are best positioned to develop and implement strategies tailored to their regions’ distinct risk profiles, resources, and stakeholder networks.
(7) Sustainable financing for wildfire resilience requires aligning the financial interests of the many parties that benefit from risk reduction, including local governments, water agencies, electrical corporations, insurers, reinsurers, and state and federal agencies, so that each contributor participates on terms that serve its institutional objectives.
(8) Innovative financing models hold significant promise for mobilizing private capital to supplement public funding for wildland-urban interface resilience.
(9) California Infrastructure and Economic Development Bank financing tools, catalytic state funding, and a clear statutory framework can lower transaction costs and attract participation by entities that might otherwise lack a pathway for investment.
(10) The state’s existing Regional Forest and Fire Capacity Program and the Wildfire and Forest Resilience Task Force framework provide an appropriate institutional foundation upon which to build a more comprehensive regional resilience financing system.
(b) (1) It is the intent of the Legislature to incentivize, on a voluntary basis, Regional Fire and Forest Capacity Program regional entities and other capable regional organizations to develop and implement wildfire resilience financing plans through regional public-private partnerships that improve regional wildfire prevention, reduce future losses from wildfire, prioritize communitywide risk reduction, improve the availability and affordability of insurance, and reduce the risk of utility-sparked fires.
(2) It is also the intent of the Legislature to achieve all of the following:
(A) Provide a flexible suite of financing tools including, but not limited to, revenue bond financing that regional entities may deploy as appropriate to their circumstances.
(B) Establish a catalytic state investment sufficient to demonstrate the viability of regional financing strategies and attract participation by private utilities, insurers, and other private entities.
(C) Enable performance-based financing structures in which upfront capital investments are supported by multiyear revenue commitments from beneficiary entities tied to verified reductions in wildfire risk and losses.
(D) Encourage private utilities, insurers, and other private entities to participate in regional wildfire resilience financing plans by creating a clear legal and institutional framework for their contributions, while preserving regulatory flexibility and recognizing each entity’s distinct institutional objectives.
(E) Maintain flexibility so that regions may design programs consistent with their own circumstances, available resources, and stakeholder composition, without requiring participation by any particular entity.

SEC. 2.
Article 6.1 (commencing with Section 63048.51) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read:
6.1.
Regional Wildfire Partnerships63048.51.
For purposes of this article, the following definitions apply:
(a) “Regional wildfire partnership” or “partnership” has the same meaning as that term is defined in Section 4208 of the Public Resources Code.
(b) “Revolving fund” means the Regional Wildfire Partnership Revolving Fund established pursuant to subdivision (c) of Section 63048.52.

63048.52.
(a) The bank, in coordination with the Treasurer and the Department of Conservation, may issue revenue bonds to finance regional priority strategies developed by a regional wildfire partnership pursuant to Article 11 (commencing with Section 4208) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code.
(b) A partnership receiving funding for a regional priority strategy developed pursuant to Article 11 (commencing with Section 4208) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code shall enter into a repayment and participation agreement with the bank, specifying the funding commitments and reporting obligations.
(c) (1) The Regional Wildfire Partnership Revolving Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, moneys in the revolving fund are hereby continuously appropriated to the bank without regard to fiscal year for the purposes of this article.
(2) Moneys generated from the sale of bonds shall be deposited into the revolving fund.
(d) The bank may distribute proceeds from the revolving fund to a partnership.
(e) The bank may also provide technical assistance to a partnership.

63048.53.
(a) The bank may issue taxable or tax-exempt revenue bonds pursuant to Chapter 5 (commencing with Section 63070) to finance regional priority strategies developed by a partnership pursuant to Article 11 (commencing with Section 4208) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code. The proceeds of the bonds shall be deposited into the revolving fund, as provided in Section 63048.52, and used exclusively for the purposes of supporting regional priority strategies developed by a partnership pursuant to Article 11 (commencing with Section 4208) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code. Bond proceeds may also be used to fund necessary reserves, capitalized interest, or costs of issuance.
(b) Bonds issued under this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state or a pledge of the faith and credit of the state or of any political subdivision, other than the bank, but shall be payable solely from the revolving fund and the assets of the revolving fund, and the security provided by the revolving fund. All bonds issued under this article shall contain on the face of the bonds a statement to that effect.

SEC. 3.
Section 4208 of the Public Resources Code is amended to read:
4208.
For purposes of this article, the following definitions apply:
(a) “Department” means the Department of Conservation.
(b) “Eligible coordinating organization” means a local government, tribal government, resource conservation district, joint powers authority, or nongovernmental organization with a history of providing technical assistance and demonstrated capacity to coordinate regional partners across the state.
(c) “Program” means the Regional Forest and Fire Capacity Program.
(d) “Regional entity” means a state conservancy, local government, tribal government, resource conservation district, joint powers authority, or nongovernmental organization with a history of implementing related projects, demonstrated capacity to work across regional partners, and ability to serve as fiscal administrators for the program.
(e) “Regional wildfire partnership” means either of the following, organized by either a public regional entity or a public entity or entities designated by a public regional entity:
(1) A cooperative arrangement, contractual agreement, memorandum of understanding, or other similar arrangement between public regional entities and private entities, including, but not limited to, those private entities identified in paragraph (2) of subdivision (b) of Section 4208.1, built on the expertise of each partner, that best meets the region’s needs through the appropriate allocation of resources, personnel, risks, and funding for the purposes of the development and implementation of regional priority strategies to identify and reduce wildfire risk. This partnership may also include nonpublic regional entities.
(2) A joint powers authority formed in accordance with the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code). These joint powers authorities may enter into cooperative agreements, contractual agreements, memoranda of understanding, or other similar agreements with private entities including, but not limited to, those private entities identified in paragraph (2) of subdivision (b) of Section 4208.1, for the purposes of the development and implementation of regional priority strategies to identify and reduce wildfire risk.
(f) “Statewide implementation” means identifying and supporting regional entities in every part of the state that contains or is adjacent to a very high or high fire hazard severity zone identified by the State Fire Marshal pursuant to Section 51178 of the Government Code or Article 9 (commencing with Section 4201).

SEC. 4.
Section 4208.1 of the Public Resources Code is amended to read:
4208.1.
(a) There is hereby established in the department the Regional Forest and Fire Capacity Program to support regional leadership to build local and regional capacity and develop, prioritize, and implement strategies and projects that create fire adapted communities and landscapes by improving ecosystem health, community wildfire preparedness, and fire resilience. For strategies and projects that seek to create fire adapted communities, regional entities shall maximize risk reductions to people and property, especially in the most vulnerable communities.
(b) (1) The department shall, upon an appropriation by the Legislature for these purposes, do both of the following:
(A) (i) Provide block grants to regional entities to develop regional strategies that develop governance structures, identify wildfire risks, foster collaboration, and prioritize and implement projects within the region to achieve the goals of the program.
(ii) Regional priority strategy development shall be in coordination with public landowners and other relevant forest and fire planning efforts in wildfire and forest resiliency planning, which may include, but not be limited to, efforts of private entities and nongovernmental organizations.
(B) Ensure, to the extent feasible, there are regional entities to cover every part of the state that contains or is adjacent to a very high or high fire hazard severity zone identified by the State Fire Marshal pursuant to Section 51178 of the Government Code or Article 9 (commencing with Section 4201).
(2) Regional entities may implement program activities directly or provide subgrants or contracts, and collaborative planning efforts with local entities, including municipal governments, tribal governments, nongovernmental organizations, community organizations, fire safe councils, land trusts, resource conservation districts, joint power authorities, special districts, fire departments, residents, private and public forest landowners and managers, businesses, insurance companies, private and public utilities, including, but not limited to, water and electric utilities, and other private and public entities, to assist the regional entity in accomplishing all of the following objectives:
(A) Develop regional priority strategies that develop and support any combination of the following:
(i) Fire adapted communities and landscapes by improving forest health, watershed health, or fire risk reduction.
(ii) Fire-resistant homes, businesses, and public buildings by expanding structure hardening and retrofitting opportunities.
(iii) Fire resilience needed to achieve local, regional, or statewide public safety, climate resiliency, and ecosystem goals included in the “Agreement for Shared Stewardship of California’s Forest and Rangelands” and “California’s Wildfire and Forest Resilience Action Plan.”
(B) Complete project development and permitting to generate implementation-ready projects that address regional landscape resilience and community fire protection priorities for funding consideration.
(C) Implement forest management demonstration projects that showcase scalable models for management, funding, and achieving and quantifying multiple benefits.
(D) Implement community fire preparedness demonstration projects that create durable risk reduction for structures and critical community infrastructure.
(E) Develop outreach, education, and training as needed to facilitate and build capacity to implement this section.
(F) Collect and assess data and information as needed to identify and map communities, infrastructure, forests, and watersheds at risk of, and vulnerable to, wildfire, in collaboration with appropriate state agencies, including, but not limited to, the Department of Forestry and Fire Protection.
(c) The department shall, upon an appropriation by the Legislature for these purposes, provide block grants to eligible coordinating organizations under the program to support the statewide implementation of the program through coordination of and technical assistance to regional entities, as well as to support forest health and resilience efforts across regions and throughout the state.
(d) (1) A public regional entity, or a public entity or entities designated by a public regional entity, may organize a regional wildfire partnership.
(2) A regional wildfire partnership shall be eligible for financing from the Regional Wildfire Partnership Revolving Fund established pursuant to Article 6.1 (commencing with Section 63048.51) of Chapter 2 of Division 1 of Title 6.7 of the Government Code for purposes of supporting regional priority strategies.
(3) Only a regional wildfire partnership shall be eligible for financing from the Regional Wildfire Partnership Revolving Fund. A regional entity that is not a regional wildfire partnership shall remain eligible for grants and other financing from sources other than the Regional Wildfire Partnership Revolving Fund.
(e) To maximize the benefits of the program, the department shall do all of the following:
(1) Facilitate peer-to-peer learning within and between regions to share information, experiences, and resources to build regional capacity.
(2) Provide technical assistance to regions to enhance regional capacity and assist in the development and prioritization of projects.
(3) Assist regions in identifying potential funding sources for regional priorities.
(4) Encourage the development of local cost share opportunities.
(5) Publish and update on the department’s internet website the following information related to implementation of the program:
(A) A list of regional entities and eligible coordinating organizations funded by the program.
(B) The outcomes of any block grant provided to a regional entity or eligible coordinating organization, including a summary of the benefits, such as the number of people and properties for which wildfire risk has been mitigated, ecosystem health benefits, or other measurements of progress towards state goals for public health and safety, climate resilience, and biodiversity, as applicable.
(C) A description of progress towards ensuring there are regional entities to cover every part of the state that contains or is adjacent to a very high or high fire hazard severity zone identified by the State Fire Marshal pursuant to Section 51178 of the Government Code or Article 9 (commencing with Section 4201).
(f) Until July 1, 2025, the department may authorize advance payments on a grant awarded under this section in accordance with subdivision (d) of Section 11019.1 of the Government Code.

SEC. 5.
Section 4208.2 is added to the Public Resources Code, immediately following Section 4208.1, to read:
4208.2.
A regional wildfire partnership shall, no later than December 31 of the year it was created, and annually thereafter, submit a report to the department regarding whether any funds, other than program grants, were used to achieve projects identified in their regional priority strategies. The department shall make the report publicly available on its internet website.