Dixie Fire criminal case settlement update

Jul 30, 2023

By David Hollister

Plumas County District Attorney

A little over one year ago — on April 11, 2022 — the District Attorneys of Plumas, Lassen, Tehama, Shasta and Butte counties announced they had reached a settlement with PG&E over responsibility for the 2021 Dixie Fire.

The civil prosecution settlement obligated PG&E to make rapid payments to those who lost their homes in the Dixie Fire; to continue to make extensive improvements in the safety and reliability of PG&E infrastructure in the North State and the affected counties; to be subject to oversight by the District Attorneys though an independent safety monitor; and to pay nearly $30 million to recompense local charities and organizations involved in mitigating the effects of the fire as well as help safeguard against future fires. The Plumas portion for these organizations is $17 million.

The five District Attorneys, labeled the "North State DAs" in the settlement, filed a civil rather than criminal complaint in Plumas County Superior Court accusing PG&E of unlawful business practices. After negotiations with PG&E, a stipulated Final Judgment was filed on April 11, 2022 resolving the case. The DAs noted the civil judgment allowed more flexibility in demanding changes in PG&E's safety practices, and to obtain rapid restitution to those who lost homes and property in the Dixie Fire, while putting the company on essentially a five-year probation.

The DAs pursued the Dixie Fire as a civil prosecution rather than a criminal prosecution to maximize the return to the fire victims rather than to seek criminal penalties. The DAs noted the maximum criminal fines possible in the Dixie Fire was only $329,417. The civil contributions, penalties and payouts established for PG&E in the settlement judgment will instead be in the hundreds of millions of dollars.

This is separate from the settlement reached by the county of Plumas through its county counsel's office, for $7.8 million. (More details on that settlement below.)

The DAs also expressed appreciation for PG&E's good-faith cooperation in the settlement process noting the company's behavior and safety practices seem to be greatly improving under its new leadership. Additionally, the DAs felt the required five-year independent safety monitor will assure the public that PG&E will live up to its promises.

Transparency

Upon reaching this agreement, the Plumas County DA's office is striving to be as transparent as possible by:

This one-year follow-up is my effort to continue to provide updated information to the public about the settlement of the criminal case with PG&E.

Difference between Criminal and Civil Settlement

The settlement of the criminal case by way of a civil prosecution settlement discussed in this article is entirely separate and different than Plumas County's civil suit against PG&E.

The civil prosecution settlement was the result of a criminal investigation brought by the District Attorneys of the five impacted counties. Objectives of the criminal case include protecting society, restorative justice, punishing the defendant, deterring others, etc. The District Attorneys from the impacted counties cannot represent the civil interests of any person or entity damaged by the fire but, rather, represent the People of the State of California in their respective county.

In contrast, a civil settlement is the result of a (potential) civil lawsuit where each county's local government sought damages from PG&E to make their county whole. Damages suffered by Plumas County (the governmental entity) were identified in a handout provided by the Plumas County CAO at an April 25, 2023 Board of Supervisors meeting in Greenville. The handout listed damages such as reduced property taxes, damaged roads, destroyed or damaged county buildings, employment losses, etc. In Plumas County's case, the County Counsel represented Plumas County with the assistance of outside counsel. Plumas County's settlement of its lawsuit with PG&E occurred on January 17, 2023 as reported by Plumas News (https://www.plumasnews.com/ten-public-entities-including-plumas-settle-dixie-fire-claims-with-pge/) with PG&E paying Plumas County $7.8 million dollars.

Comparison between Camp and Dixie Fires

Before the Dixie Fire had been contained, and after reaching certain determinations about PG&E's potential criminal liability, I joined the other impacted DAs and analyzed all possible approaches to try and figure out what would best serve justice and Plumas County from the perspective of a criminal prosecution.

I paid close attention to the 2018 Camp Fire which leveled the town of Paradise. From that fire, the Butte County DA's office did an outstanding job and obtained convictions of 85 felony counts including 84 counts of manslaughter for those who died. PG&E was sentenced to the maximum fine allowed by law – $3,486,950 of which 30% stayed in Butte County.

In looking at our charges, if PG&E was convicted of the four felonies potentially available from the Dixie Fire, the maximum fine would be only $329,417, of which only $98,825 would stay in Plumas County. This approach certainly did not seem like justice to me. It would not punish PG&E; it would not deter PG&E; it would not direct PG&E to make necessary safety changes and, most importantly, it would not help Plumas County.

From this comparison, it became readily apparent we needed a non-traditional approach in realizing a settlement of any criminal allegations which would create a binding partnership with PG&E to help Plumas County. Without admitting guilt, PG&E agreed to substantial obligations designed to help Plumas County now and, in the future, and provide relief far greater than the $98,825 which could be realized from a traditional criminal prosecution.

As an update, here is where we stand with the main areas with PG&E one year after the settlement of the criminal case through a civil prosecution.

Wildfire Mitigation Plan

PG&E's 2022 Wildfire Mitigation Plan (WMP) formed an important part of the civil prosecution settlement. The WMP sets out the actions PG&E is taking across its territory, including portions of the North State counties, and, especially, in the High Fire Threat Districts (HFTDs), to reduce the risk of catastrophic wildfires across its entire service territory. The system-wide initiatives will be overseen by Office of Energy Infrastructure Safety (OEIS) and the California Public Utilities Commission (CPUC), with the assistance of an independent safety monitor (ISM), and subject to enforcement by the CPUC. These system-wide initiatives include enhanced powerline safety settings, line de-energizing, grounding and removal, undergrounding of 10,000 miles, real time weather assessments, real time fire behavior detection, enhanced equipment inspections and an enhanced vegetation management plan.

We continue to work with the Monitor to track these changes and expect to have the opportunity to review an annual report in the near future.

Training Program

PG&E provided $2 million to Feather River College (FRC) to develop a certificate or degree program in topics covering ecosystem restoration and applied fire management so students can be trained to respond to, and help prevent, catastrophic wildfires. FRC is currently pending the accreditation approval for a bachelor's degree in Ecosystem Restoration and Applied Fire Management. This program will allow Plumas County to grow and retain expertise critical to fire management in our county.

Hiring

PG&E is committed to posting a minimum of 100 new positions headquartered in the North State Counties. This hiring process is ongoing.

Expedited Claims (Direct Payments for Community Recovery)

In formulating a resolution meeting Plumas County's needs, I paid very close attention to what has happened to displaced residents in Butte County following the Camp Fire. By all accounts, the settlement process after Camp Fire was delayed and frustrating, at best, with the majority of claimants unable to settle their claims in a timely fashion. Given our remote location and lack of surrounding infrastructure, such delays could severely wound our recovery efforts. With PG&E's agreement, an approach was created and included in the settlement of the criminal case providing displaced residents with an option to receive an expedited payment.

The DPCR (Direct Payments for Community Recovery) Program is available to homeowners —those who own homes they did not occupy and folks who occupied but did not own the home. This program is spelled out in detail here: https://www.plumascounty.us/DocumentCenter/View/41067/Dixie-Fire—Direct-Payments-for-Community-Recovery-Framework?bidId=

As of April 28, 2023 the DPCR has shown the following results:

While not for everyone, the DPCR has been an extremely useful tool for many, allowing those to realize an expedited settlement payout to meet personal needs, including having the liquidity to be able to choose to stay in Plumas County and rebuild.

Commercial Timber Mediation

PG&E has/is satisfying this term mediating with Plumas County's commercial timber companies.

Monitor – (5 years paid for by PG&E)

A crucial component of the settlement of the criminal investigation was a Monitor to make sure PG&E complied with its obligations – not the least of which was a myriad of safety improvements. The Monitor, while paid for by PG&E, answers directly to the five North State DAs directly impacted by the Dixie Fire. The provision for a Monitor lasts five years. The Monitor has been active during this first year issuing deficiency notices and working with the North State DAs and PG&E to cure outstanding issues. This is a detailed and ongoing process with an annual compliance report forthcoming.

$17 million to local organizations (30 percent on 4/11/22; 70 percent on 7/12/22)

In reaching a resolution of the criminal case, it was important to have PG&E demonstrate their support for the recovery of our county after the Dixie Fire. It was equally important this injection of resources be as timely and as broad in coverage as possible. This demonstration of support was accomplished by an agreement where PG&E would make $17,000,000 in good-faith contributions to Plumas County organizations as directed by the Plumas County District Attorney. This is a benefit to Plumas County which could not have been achieved from a normal prosecution or civil suit.

With regard to the identification of recipients for these good faith contributions, there are a number of critical points:

Without divulging the negotiations, the $17 million in good faith contributions with all being paid by July 12, 2022 were results I did not think we could attain until very late in the negotiations.

In following up on how the good faith contributions were spent, we reached out to each recipient using the same contact information used to distribute the check(s). Multiple calls and emails were made in an effort to secure this information and afford everyone an opportunity to respond. Each organization was asked four questions: (1) how much of your contribution has been spent; (2) what was the contribution spent on; (3) is there any money left; and (4) what will you do with the remaining money? Responses are provided exactly as received whenever possible.

The DFC will continue to look at ways to keep leveraging our dollars, however, our first priority working directly with Disaster Case Management will be to help supplement the gaps for individual survivors.

Attachments-

Expenditures:

NVCF Fees $60,000

Website $11,458

Security Cameras $5,426

Hope Crisis Rebuild $59,825

Copper Creek Workforce Housing $75,000

Dixie Fire Simple Unmet Needs Roundtable $50,000

Planning and Visioning Phase 1A $20,000

Plumas Rural Services August 4th Fire Anniversary Transportation $1745

Harvest Fair Event Insurance $100

Meals/Food for Two CCA Student Workshops $1,008

Canyon Dam Tree Removal $87,450

NVCF Fee for Donation $30

Audio Equipment for Meetings $861

Total Expenditures $372,904

Commitments:

Clean Up Historical Buildings $150,000

Indian Falls Water System Phases 1& 2 $48,500

Zoom Account $149

Communications Technician – 6 months $4,000

ToolBANK Insurance $2,430

PRS Outdoor Youth Program $2,430

Total Commitments $244,679

Future plans for the funds include:

The one million dollars has been dedicated to the following activities:

Developing architectural plans for Roundhouse Council Indian Education Center rebuild in Greenville. A novel roundhouse design is being used. $125,000 (Completed draft design below.)

Upgrading the sawmill at the Indian Valley Wood Utilization Campus in Crescent Mills. $125,000

Cross laminated timber (CLT)—a much improved fire safe building panel—designs for structures and panel production operation $225,000

Workforce Housing $150,000

Support for field crews to conduct landscape cleanup and restoration $150,000

Conducting an assessment of Dixie Fire: what worked, what didn't, and what can be improved $100,000

Building organizational capacity for local business and housing development and meeting other local needs $125,000

The PCOE Foundation has not yet spent the $2 million received. The foundation has now been officially set up and we have an advisory board set up to make a spending plan. Our information can be found here: https://www.pcoe.k12.ca.us/apps/pages/PCOEFoundation

2. What was the contribution spent on? Nothing yet

3. Is there any money left? $500,000

4. What will you do with the remaining money? The goal for the PG&E settlement funds was/is to purchase a piece of land and then build a team headquarter structure that includes a place for all of our equipment. The real estate market being what it is, we have been having difficulty in finding the right piece of property. We have submitted offers and they have either been turned down or awaiting a counter offer response. I expect it will be at least another year before we find a place and build what we need.

2) What was the contribution spent on? Mostly the Indian Valley Innovation Hub efforts. We committed $50,000 to that program and have spent about $30,000. The other $20,000 is ready to go. By the way, we have leveraged that money with another $50,000 for the IVIH. The other money has been used to purchase equipment and supplies to enhance the fairgrounds as a resiliency and evacuation center; barricades, electrical improvements, scissor lift, more refrigeration.

3) Is there any money left? Yes! But we’re trying!

4) What will you do with the remaining money? Since the mission of the PSCF Foundation is to benefit the Fair, it can only be spent on Fair related projects. It's a safe bet we will continue to explore investments in equipment and appropriate improvements to the facility. Additionally, as the Innovation Hub continues to expand it's services to the residents of Plumas County, the Foundation is ready to support those services as needed. The direction of the Innovation Hub has evolved as the needs, primarily economic, have emerged. There are some exciting programs in the works that will help small businesses recover, not only in Indian Valley, but all of Plumas County. Happy to give updates as they arise.

$149,000

What was the contribution spent on?

Housing assistance, utility assistance, motel sheltering, other

assistance such as food support via food pantry and food bank.

Is there any money left?

Yes

What will you do with the remaining money?

We are developing a plan for the balance and it will go before the

PCIRC Board in June.

Please let me know if there are any questions. I know the money has been here for over a year, but it has taken that long for the bachelor's degree approval to get to this point.

We have utilized our funds as follows:

$44 Thousand allocated to the Tasmam Koyom Fencing Project to help with the safety efforts of Tasmam Koyom in order to open the campgrounds for community use.

$30 Thousand allocated to the Tribal Monitoring Project to assist work crews on all parcels affected by the Dixie Fire to protect and care for artifacts and culturally significant sights.

Both of these projects will assist the Maidu Summit to insure all properties are safe for community use.

The Maidu Summit still has 126 thousand dollars to spend, we have plans to utilize these funds to continue the cleanup efforts on our properties insuring they are safe for public use.

PCFCA MEMBERS

*Split $1,000,000 evenly ($50,000 / each agency)

We have spent most of the founds awarded, approximately $28000 as of today.

What was the contribution spent on?

Beckwourth fire district spend the founds on upgrading our communications, specific to radios. Beckwourth fire applied for a cal-fire matching grant, and we used the PG&E founds to help offset the grant money we owed.

Is there any money left?

We have approximately 7 thousand dollars left.

What will you do with the remaining money?

We plan to spend the rest of the money on wildfire PPE (personal protective equipment) as we approach this coming fire season.

The fire department is currently operating with a $730,000 budget deficit so it's hard to specify exactly what the funds paid for – they helped fill in the gap with operational expenses

5/11/22 Sierra Electronics $2,046.21 Pagers

2/17/23 KR Nida 9,213.64 Radios/Chargers

4/5/23 LN Curtis 3,886.26 Structure Boots

4/24/23 LN Curtis 38,474.87 Jaws of Life Equipment

TOTAL $53,620.98

2. Structure firefighting turnouts

3. Yes, approximately $5k

4. To be determined, but will likely be an infrared imaging camera for spotting hot spots

Hamilton Branch: Used for energy efficiency upgrades.

Regarding purchases- we have bought wildland fire personal protective clothing for all 17 volunteers, emergency responder knives with seat belt cutters & windshield breakers, structure helmets & boots, repaired/repainted the interiors of North Arm & Genesee Fire Stations, purchased & installed new BK radios into IVFD Fire Engines, purchased new fire pagers and also partially paid for engineering blueprints/plans for the new IVFD Fire Station to replace the station that was burned down during the Dixie Fire in Greenville.

We have no money left over from the $50k payment and are now using our insurance money to move forward in rebuilding the IVFD.

2. The good faith contribution has given us hope for the future by allowing us to plan for improvement projects to our infrastructure that we would have otherwise had to ignore or put off for years into the future. Those include a new roof for our fire hall, a carport for our emergency response vehicle and to replace outdated fire fighting equipment.

We are a very small community and the settlement that Mr. Hollister and other county officials helped facilitate has brought us from the brink of financial hardship to being able to provide the medical first response and firefighting assistance that our community needs and expects.

We are very grateful for this financial assistance and send sincere thanks to everyone involved.

2. The funds were spent on Extrication tools, Wildland training (S-290 intermediate Wildland training, Engine, and Crew Boss classes), Radios, Wildland pants, boots, and shirts.

3. No money is left. The total we spent is $56K.

What was the contribution spent on? Station 1 generator project: $16,484.54 was used to pay a portion of a $58,423.58, 48kw Generator to supply power to the 505 Lawrence Street fire station, truck bay, and the training facility where we operate our fire academy. Truck 8161 restoration project: $24,870.79 has been used to offset the cost associated with the restoration and certification of a 2001 American LaFrance fire truck.

Is there any money left? Yes

What will you do with the remaining money? The remaining $8,644.63 will be used for vehicle maintenance and replacement.

CHAMBERS & ROTARY

*Chambers Split $1,200,000

*Rotarians Split $200,000

2. What was the contribution spent on? N/A

3. Is there any money left? All – 300,000

4. What will you do with the remaining money? Proposed expenses include new website development; build tourism center or kiosk; insurance for community events, etc.

As I mentioned we are very careful with these funds and are sensitive to them being one time monies.

We have used some for the Recreation Economy for Rural Communities efforts, a small amount for our Administrative Director to attend a Rural Chamber of Commerce conference and we used some toward the Plumas Sierra County Fair Parade.

At this point we are not sure what else we will do with the funds but I can tell you they will be consistent with the economic interests of our community.

In May we gathered our membership to discuss their desires for the use of the money. There was consensus that it created an opportunity to build on economic initiatives we had already been working on. Following is a brief description of what we are doing with the funds this year.

Staffing. We have been relying on part time staff and volunteers to create many wins for our community these past 5 years. These funds allow us to go from a $30,000 part-time employee to a full-time position at $60,000. The funds will guarantee 3 years of the increased salary. However, a condition of employment for the position is to replace this funding with increased members and sponsorships, for sustainability.

Winter Activities. The Chamber is part of a private/public partnership being worked on with Plumas County and The Almanor Foundation to develop a Town Plaza at Chester Park.

The Town Plaza is an initiative for the advancement of community health, education, and cultural and recreational opportunities. It will be a community destination that will feature educational events, music, festivals, craft fairs, children's activities, cultural performances, and public art.

As an economic development driver, it will contain a public market space that will create opportunities for various food and retail entrepreneurs to start and grow businesses. As an event and year-round activities location it will become a regional destination that will bring local residents as well as travelers into the Town of Chester, stimulating the economy of the town.

Ice Rink. $80,000 will be used to front the cost of an ice-skating rink at Chester Park this winter. The rink is synthetic with an expected life span of 15-20 years. We estimate that with a 10-year life span the rink would cost about $8000/year. $8000/year will be re-couped through sponsorships and admissions costs.

Community Tree. $36,000 was spent to purchase a commercial Christmas tree for the Plaza. This tree will has a long life span and creates additional market activities throughout the holiday season for our businesses and entrepreneurs, as well as contributes to the sense of place our community has so desperately needed, especially since the fire.

Investments. Funds not utilized this year are being invested in laddered CDs at Edward Jones.

To answer your questions:

How much of your contribution has been spent? Answer: To date, we have spent $44,000 of the original $300,000 allocated to our Chamber.

What was the contribution spent on? Answer: As our new Board became involved in Chamber activities, we discovered many financial and operations systems needed updating to support the Chamber and the Lost Sierra Visitors Center located at the corner of Highways 70 and 89 – the only brick and mortar Visitor Center in Plumas County.

· We spent a portion of funds upgrading our Point of Service payment and bookkeeping processes.

· We hired a new Chamber of Commerce Administrative Assistant team member in October 2022 to support Chamber operations, communications, membership and financial tracking including improved accounts payables and receivables, aiding in lease negotiations, and serving as back-up support for our sole, pre-existing staff member who was trying to run both the Visitors Center and Chamber operations previously. We have also expanded both the Administrative Assistant and Visitor Center staff roles into 20 hour per week jobs to support the volume of inquiries and interest we are receiving. The Board is also discussing salary increases for our staff to acknowledge their hard work and adjust for rising living costs.

· We have invested in developing two new websites: one for the Chamber of Commerce (lostsierrachamber.org) that debuted at our Chamber Launch Event in October 2022 and went live in February 2023; and the other is a Lost Sierra Recreation website (discoverthelostsierra.com forthcoming) set to launch in May 2023.

o One of our Board Members is a marketing professional who created both sites at a discount of only $4,250 per website.

o Since the Chamber website launched, we have had 3,000 visitors per month and an average read rate of over 5 minutes.

· To complement the website launches, we have also invested in social media outreach creating Lost Sierra Chamber of Commerce accounts for Facebook and Instagram and began promoting local businesses. We will also create similar social media presence for the Lost Sierra Recreation website when it launches.

o Investing in social campaign and email blasts totaling $1,500 per month.

o Over 57,000 impressions since active management has taken place on the Discover the Lost Sierra Instagram account, and the Lost Sierra Chamber Facebook and Instagram account.

o Engagement rate is over 60% on all platforms.

In addition, we have had some successes that did not require use of this funding:

· We replaced our antiquated phone system with phones that were donated to us and created a savings over our prior phone system.

· We have held two Chamber ‘mixer’ events that engaged local business owners/members educating them about the launch of the new Chamber of Commerce activities and soliciting their input and support to assist their businesses. We have also increased our Chamber memberships.

· We held our Christmas in Portola event in December 2022 that was a community success as we gave away over 150 gifts to Portola community children.

· Created, applied, and launched a Wikipedia page defining the Lost Sierra to answer the many visitor inquiries received about the name, where the name came from, and this region that contains Plumas and Sierra Counties. This was a Board of Directors initiative that took place in the last seven months that took a large effort to compile research and facts.

· We also have new county-wide, interactive adventure promotion encouraging people to visit the area and our businesses set to start this spring/summer.

Is there any money left? Answer: Yes, approximately 85% ($256,000) of the original funding remains in our bank account. We plan to hold much of these funds in an interest earning CD, spend on activities as needed, and to support our ongoing digital marketing campaigns. Additionally, the Chamber has posted a position for a Program and Event Coordinator to be hired to support medium and large-scale Chamber and tourism revenue generating events. We intend to use a portion of the PG&E funding to pay for this position during the first year, with the expectation that the position will be funded through the event and fundraising revenue generated thereafter.

What do you plan to do with the money? Answer: One of the initiatives that our Chamber helped initiate is the formation of a Chamber Coalition that includes all four Plumas County Chambers and the two Sierra County Chambers. The Coalition began meeting in January 2023 and continue to meet on the first Wednesday of each month. Within the Coalition, we have worked on creating draft Bylaws of how the Chambers can work together on common interests such as pursuit of grant funding and hiring shared resources (e.g., grant writing and reporting resources) as well as opportunities to identify and promote regional events to draw more tourism dollars to our area. We are also discussing events in the shoulder seasons that funding would also support.

Beginning PG&E Balance $50,000

Rotary Closet ($3,500)

RYLA ($3,000)

Academic Scholarships ($1,500)

Ending Balance June 2023 $42,000

· The Rotary Closet provides both Quincy Elementary School students access to warm jackets, snow boots, tee shirts, sweat pants/shirts, socks and hygiene products.

· RYLA is a week long leadership development camp for students prior to their senior year of high school. Typically 4-5 students attend.

· Academic scholarships are given to students slated to attend either 2 or 4 year schools after graduating high school.

2) What was the contribution spent on? $10,000.00 (earmarked; not yet expended) – Indian Falls Water System-Phase 2 $ 289.57 – Picnic Tables (materials for 30 tables; wood donated & Rotary constructed) $ 500.00 – Dixie Fire Collaborative Intern Support $ 2,626.62 – Holiday Tree Lights Replacement (2 large trees by schools) $ 190.87 – Greenhouse Tarp (Rotary constructed Greenhouse purchased by partners)

3) Is there any money left? $36,392.94

4) What will you do with the remaining money? We are waiting for the Dixie Fire Collaborative-Long Term Rebuilding Project Strategy to be completed and will apply funding where it will make the most sense with other partners. Our focus is on projects with some permanence.

Other comments: We also received small donations from private parties and have been using those for things like community suppers & picnics, insurance, etc. Our Rotary Community provided us with $30,000 immediately following the fire for $500.00 gift certificates to support immediate needs of 60 families

We are reserving the remaining funds – approximately $42,000, I believe. We hope to combine these funds with other Rotary Clubs in order to receive a grant from Rotary International to fund a large joint project, "once the dust settles".