Lawyer suing the state over wildfire fund wants US judge overseeing probation to handle it

The San Diego lawyer suing the state over a wildfire fund bill wants to have the case presided over by the federal judge overseeing Pacific Gas & Electric Co.'s criminal probation. Both matters deal with the same questions linked to the utility's years-long unlawful conduct, Michael J. Aguirre said.

Both cases explore issues surrounding PG&E's lobbying and campaign contributions to lawmakers, said Aguirre of Aguirre Severson LLP, who represents plaintiffs in the lawsuit. Alex Cannara, Gene A. Nelson v. Dept. of Water Resources Director Karla Nemeth, et al., 19-CV04171 (N.D. Cal., filed July 19, 2019).

Aguirre filed his motion Friday seeking to have the case assigned to Judge William Alsup of San Francisco.

Alsup is overseeing PG&E's criminal probation stemming from the 2010 San Bruno pipeline explosion. USA v. Pacific Gas & Electric Company, 14-CR00172. Throughout the proceedings, the Northern District judge has used his authority to force the utility to prepare for wildfire season.

"Both actions call for determination of substantially-related questions of fact, spanning years of unlawful conduct of PG&E which led to its criminal probation as overseen by this Court," Aguirre argues in his motion. "The course of conduct attributed to PG&E in Cannara which underscores that case's various claims of relief may inform this court's disposition of PG&E's probation."

Aguirre's lawsuit is challenging the validity of AB 1054, which he claims is a bailout plan forcing utility customers to pay for uninsured wildfire liabilities as a result of the utility's political lobbying.

In a statement issued Monday, PG&E spokesperson Denny Boyles said the utility is committed to working with the governor, the California Public Utilities Commission and stakeholders to forge solutions while helping communities affected by the wildfires and keeping customer rates and bills as low as possible.

A spokesperson for the California Department of Water Resources said they couldn't comment on pending litigation. It is unclear whether the state will stipulate to having Alsup hear the case. The state has requested a 30-day extension from Aug. 15 to Sept. 13 to respond to the complaint.

Aguirre's motion argues having Alsup presiding over both cases would promote judicial economy. The motion references Alsup's experience investigating PG&E's lobbying and political contributions.

The suit also questions the timing of the bill's suspiciously speedy legislative process.

"They're pushing this plan way too fast," Aguirre said Monday, adding Gov. Gavin Newsom's plan to fast-track funds to utilities is already underway, with a hearing set for Wednesday in Sacramento, which will be headed by the California Earthquake Authority, which has been tasked with implementing the California Wildfire Fund.

The California Public Utilities Commission has also opened a proceeding to give utilities an estimated $880 million a year with a pre-hearing conference set for Thursday in San Francisco.

The court challenge of AB 1054 is assigned to U.S. Magistrate Judge Joseph C. Spero of the Northern District of California. Aguirre said he has no objection to Spero hearing the matter if his administrative motion isn't granted.

"I think we have a fair chance getting the case in front of Judge Alsup. He understands how there's been a failure to comply with safety rules, misrepresentation and obstruction of justice," Aguirre said. "He's in the perfect position to evaluate what has been done in the Legislature to accommodate PG&E. It should be, in a sense, poetic justice."