AB 1054 — Utility Wildfire Safety, the CPUC Fire Threat Map, and What It Means for Your Property

AB 1054 — Utility Wildfire Safety, the CPUC Fire Threat Map, and What It Means for Your Property

Last reviewed: March 2026 · Signed into law: July 12, 2019 · Effective: Immediately

What this law is

Assembly Bill 1054, authored by Assemblymember Holden and signed by Governor Newsom on July 12, 2019, fundamentally reshaped how California regulates electric utility wildfire risk. It established the California Wildfire Fund — a $21 billion fund to cover claims from utility-caused wildfires — and required California’s three largest investor-owned electric utilities (PG&E, Southern California Edison, and San Diego Gas & Electric) to submit annual Wildfire Mitigation Plans (WMPs) to a newly created Wildfire Safety Division at the California Public Utilities Commission (CPUC).

AB 1054 did not create the CPUC’s Fire Threat Map — that was developed in 2018 under Senate Bill 901 — but it built directly on it. The Fire Threat Map divides utility service territories into three tiers based on the risk of utility-equipment-ignited wildfires: Tier 1 (acceptable risk), Tier 2 (elevated risk), and Tier 3 (extreme risk). Under AB 1054, utilities are required to focus their wildfire mitigation investments — enhanced vegetation management, grid hardening, weather monitoring, Public Safety Power Shutoff (PSPS) protocols — in Tier 2 and Tier 3 areas.

For property owners, AB 1054 and the Fire Threat Map matter for two reasons. First, they define where utility companies are actively working to reduce equipment-related ignition risk — and that work directly affects the fire environment around properties in those areas. Second, the Tier 2 and Tier 3 designations are used by insurers, lenders, and real estate professionals as indicators of elevated wildfire risk — separate from but related to the CAL FIRE Fire Hazard Severity Zone (FHSZ) designations that govern defensible space and building code requirements.

The fire science behind it

Electric utility equipment is a documented and significant cause of California wildfires. The 2017 and 2018 Northern California fire seasons — including the Camp Fire, which destroyed Paradise and killed 85 people — were directly tied to utility equipment failures. Post-fire investigations by CAL FIRE and the CPUC confirmed that power lines, transformers, and other electrical infrastructure operating in dry, high-wind conditions can ignite fires that grow rapidly in continuous fuel beds.

The fire behavior dynamics are straightforward. A downed power line or arcing transformer in Tier 3 terrain — steep slopes, chaparral or conifer fuel types, Santa Ana or Diablo wind corridors — creates an ignition source under conditions that favor rapid fire spread. A fire that starts at a utility pole on a ridge in high wind and low humidity can travel miles in hours. The CPUC Fire Threat Map was built to identify exactly these conditions — not just where fires have burned historically, but where the combination of utility infrastructure, fuel, terrain, and weather creates the highest ignition and spread risk.

For San Diego County, SDG&E’s service territory includes significant Tier 2 and Tier 3 areas across the communities that are this site’s primary focus — Alpine, Descanso, Julian, Pine Valley, Ramona, Fallbrook, Warner Springs, and surrounding areas. These are the same communities where defensible space compliance, home hardening, and insurance access are most directly at stake. Understanding the utility fire risk layer — separate from but layered on top of the FHSZ designation — gives property owners in these communities a more complete picture of their actual fire environment. A fire-informed assessment evaluates both layers. Learn more at Cal Wildfire Defense.

Who this law applies to

AB 1054 directly governs California’s investor-owned electric utilities — PG&E, Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E) — and, through related legislation, local publicly owned electric utilities and electrical cooperatives. It is not a law that applies directly to property owners in the way PRC 4291 or AB 38 do.

However, its effects reach every property owner in utility service territories that include Tier 2 or Tier 3 fire threat areas. The Wildfire Mitigation Plans that utilities file annually under AB 1054 govern where and how utilities conduct vegetation management on and near utility infrastructure — work that occurs on or adjacent to private property throughout fire-country communities.

The CPUC Fire Threat Map also informs insurance underwriting, real estate disclosures, and lender requirements. A property in a Tier 3 utility fire threat area faces a different risk environment than a property in Tier 1 — and that difference affects the insurance market, property values, and the practical steps a property owner should take to document and manage risk.

What it requires

Utility Wildfire Mitigation Plans

Under AB 1054, each major electric utility must submit an annual Wildfire Mitigation Plan to the Office of Energy Infrastructure Safety (formerly the Wildfire Safety Division at CPUC). The plan must cover at least a three-year period and be comprehensively revised at least once every three years.

Each plan must address: vegetation management on and near utility infrastructure, grid hardening investments including undergrounding of lines in high-risk areas, weather monitoring systems, high-definition camera networks for early fire detection, Public Safety Power Shutoff (PSPS) protocols, and coordination with CAL FIRE and local fire agencies.

Enhanced vegetation management in Tier 2 and Tier 3

Utilities are required to conduct enhanced vegetation management in High Fire Threat District (HFTD) areas — the Tier 2 and Tier 3 zones on the CPUC Fire Threat Map. This means more frequent clearing of vegetation around utility lines, stricter clearance standards, and accelerated timelines compared to non-HFTD areas. In San Diego County communities, SDG&E’s HFTD vegetation management program is active in the same fire corridors where defensible space compliance is required of property owners.

Public Safety Power Shutoffs

PSPS events — planned power outages during high fire-risk weather conditions — are authorized under AB 1054 as a mitigation tool of last resort. Utilities are required to notify customers and coordinate with local emergency services before implementing a PSPS. The goal is to reduce equipment-related ignition risk during extreme fire weather. For property owners, PSPS events are a direct reminder that the fire threat environment in their community is active — not theoretical.`

The CPUC Fire Threat Map

The CPUC Fire Threat Map is publicly available and searchable by address. Tier 1 areas have acceptable utility fire risk. Tier 2 areas have elevated risk and are subject to enhanced utility mitigation requirements. Tier 3 areas have extreme risk and face the most stringent utility safety standards, including mandatory PSPS protocols during red flag conditions. Properties in Tier 2 and Tier 3 should factor their utility fire threat designation into their overall risk picture alongside their CAL FIRE FHSZ designation.

Official statutory text

The full text of AB 1054 and the CPUC Fire Threat Map viewer are available at the following official sources.

Both links open official California government sources.

Enforcement

The Office of Energy Infrastructure Safety (Energy Safety), within California’s Natural Resources Agency, oversees utility compliance with AB 1054 and reviews annual Wildfire Mitigation Plans. The CPUC retains rate-setting authority and reviews utility cost recovery requests for wildfire mitigation investments.

Utilities that fail to obtain an annual safety certification — which requires demonstrating compliance with the WMP requirements — face reduced access to the Wildfire Fund and potential CPUC enforcement action. Safety certifications are tied to executive compensation, creating direct financial accountability for wildfire safety performance.

Property owners affected by a utility-caused wildfire have recourse through the Wildfire Fund and through direct claims against the utility. The fund is designed to ensure that eligible claims are paid even when a utility’s financial position would otherwise limit recovery. Whether a utility acted reasonably — informed by whether it had a valid safety certification — affects the claims process.

Addressing the underlying risk

AB 1054 governs what utilities must do. It does not govern what property owners must do. But the fire environment it addresses — high-risk utility corridors in Tier 2 and Tier 3 areas — is the same fire environment where defensible space compliance, Zone 0 improvements, and home hardening matter most. A property that sits in a Tier 3 utility fire threat area and also carries a Very High FHSZ designation is in the highest-risk overlap zone on the risk map. Both layers should inform the property owner’s mitigation priorities.

Know your tier designation

Check the CPUC Fire Threat Map for your address. If your property is in a Tier 2 or Tier 3 area, that designation affects your insurance risk profile, your exposure to PSPS events, and the context in which your defensible space and home hardening work is evaluated. It is not the same as your CAL FIRE FHSZ designation — both are relevant, and they measure different dimensions of fire risk.

Coordinate with your utility’s vegetation management program

SDG&E conducts vegetation management on and near utility infrastructure throughout San Diego County’s fire-country communities under its annual Wildfire Mitigation Plan. That work occurs on and adjacent to private property. Property owners in Tier 2 and Tier 3 areas should understand what vegetation management the utility is responsible for versus what the property owner is responsible for under PRC 4291. The two programs are complementary but distinct — utility clearance does not satisfy a property owner’s defensible space obligation.

Document your own mitigation independently

Utility-side mitigation under AB 1054 reduces equipment-related ignition risk in the surrounding area. It does not affect how an insurer scores your specific property, and it does not satisfy your defensible space or home hardening obligations. The documentation that protects your insurance position — and gives you the evidence to claim Safer from Wildfires discounts under Section 2644.9 — comes from your own property’s inspection and mitigation record, not from the utility’s WMP.

Related laws

These laws work alongside AB 1054 or directly address the risk environment it governs.

Resources and references

The following are official sources used in preparing this page.

Disclaimers

The content on this page is provided for educational purposes only and does not constitute legal advice. Laws and regulations change — always verify current requirements with CAL FIRE, the CPUC, or a licensed attorney. Last reviewed March 2026.

Fire science content on this site has been developed with the assistance of AI tools and reviewed for accuracy against current CAL FIRE, NFPA, and peer-reviewed fire behavior research. This content is educational and does not constitute legal or professional advice. For property-specific guidance, consult a qualified wildfire mitigation professional.

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