State gets extension to reply to wildfire funding bill challenge

The state has been granted a one-month extension to respond to a lawsuit challenging the constitutional validity of a wildfire funding bill enacted last month, despite opposition from plaintiffs.

Additionally, U.S. District Judge William H. Alsup, who is overseeing Pacific Gas & Electric Company's criminal probation case, declined Monday to preside over the case while acknowledging the lawsuit raises important public policy issues.

Both developments stem from efforts by plaintiffs' attorney Michael J. Aguirre of Aguirre Severson LLP. He sued the state last month challenging the constitutionality of Assembly Bill 1054, which was enacted July 12. Aguirre sought to block the state's request to extend its deadline to respond to his complaint and sought to have his case related to PG&E's criminal probation.

In his order denying Aguirre's request to relate the cases, Alsup said random judicial assignments were crucial in preserving public confidence in the legal process.

Alsup wrote that Aguirre's lawsuit deals primarily with public policy issues, including political contributions to lawmakers that enacted AB 1054, and "the extent to which liability for loss of life and property from wildfires started by PG&E and other utilities must be borne by innocent rate-paying customers."

"Despite the importance of these issues to California, their resolution will not substantially impact the ongoing supervision of the offender in the criminal probation case," Alsup concluded.

"We respect Judge Alsup's decision, and it's that type of integrity that Alsup has shown repeatedly that made us want him to handle our case in the first place," Aguirre said Thursday afternoon.

Aguirre's complaint alleges AB 1054 was a bailout created by lawmakers for utilities that negligently caused wildfires in the state. Cannara, v. California Dept. of Water Resources Director Karla Nemeth, 19-CV-04171 (N.D. Cal., filed July 19, 2019).

Defendants, which include the California Department of Water Resources, the public utilities commission, state controller and state treasurer, will now have until Sept. 13 to respond.

-- Gina Kim