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XAVIER BECERRA, SBN 118517

Attorney General of California 

MARGARITA PADILLA, SBN 99966 

Supervising Deputy Attorney General 

JAMES POTTER, SBN 166992 

Deputy Attorney General 

1515 Clay Street, 20th Floor 

P.O. Box 70550 

Oakland, CA 94612-0550 

Telephone: (510) 879-0815 

Fax: (510) 622-2270 

Margarita.Padilla@doj.ca.gov 

James.Potter@doj.ca.gov 

STEVEN H. FELDERSTEIN, SBN 059678 

PAUL J. PASCUZZI, SBN 148810 

FELDERSTEIN FITZGERALD 

WILLOUGHBY PASCUZZI & RIOS LLP 

500 Capitol Mall, Suite 2250 

Sacramento, CA 95814 

Telephone: (916) 329-7400 

Fax: (916) 329-7435 

sfelderstein@ffwplaw.com 

ppascuzzi@ffwplaw.com 

Attorneys for California Governor’s Office of 

Emergency Services and California Department 

of Veterans Affairs 

XAVIER BECERRA, SBN 118517

Attorney General of California 

DANETTE VALDEZ, SBN 141780 

ANNADEL ALMENDRAS, SBN 192064

Supervising Deputy Attorneys General 

455 Golden Gate Avenue, Suite 11000 

San Francisco, CA 94102-7004 

Telephone: (415) 510-3367 

Fax: (415) 703-5480 

Danette.Valdez@doj.ca.gov 

Annadel.Almendras@doj.ca.gov 

UNITED STATES BANKRUPTCY COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

In re: 

PG&E CORPORATION 

- and – 

PACIFIC GAS AND ELECTRIC 

COMPANY, 

Debtors.

Bankruptcy Case

No. 19-30088 (DM) 

Chapter 11 

(Lead Case) 

(Jointly Administered) 

 Affects PG&E Corporation 

 Affects Pacific Gas and 

Electric Company 

 Affects both Debtors 

Date: October 23, 2019 

Time: 10:00 a.m. (Pacific Time) 

Place: 450 Golden Gate Avenue 

 16th Floor 

 San Francisco, CA 94102 

Judge: Honorable Dennis Montali

LIMITED OBJECTION OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY 

SERVICES AND CALIFORNIA DEPARTMENT OF VETERANS AFFAIRS TO 

DEBTORS’ SUBROGATION SETTLEMENT AND RSA MOTION [DOCKET NO. 3992] 

Case: 19-30088 Doc# 4220 Filed: 10/16/19 Entered: 10/16/19 10:27:08 Page 1 of

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The California Governor’s Office of Emergency Services (“Cal OES”) and California 

Department of Veterans Affairs (“CalVet”) hereby file this limited objection and reservation of 

rights with respect to the Debtors’ Motion Pursuant to 11 U.S.C. §§ 363(b) and 105(a) and 

Fed. R. Bankr. P. 6004 and 9019 for Entry of an Order (I) Authorizing the Debtors to Enter into 

Restructuring Support Agreement with the Consenting Subrogation Claimholders, (II) Approving 

the Terms of Settlement with Such Consenting Subrogation Claimholders, Including the Allowed 

Subrogation Claim Amount, and (III) Granting Related Relief (Docket No. 3992) (the “Motion”) 

based on the following: 

1. The issue Cal OES and CalVet have with the Motion is that the definition of 

“Subrogation Claims” as set forth in the Settlement Term Sheet1

 is vague in that it could include 

certain claims of Cal OES and CalVet. 

2. Cal OES is responsible for the coordination of overall state agency response to 

disasters, including wildfires, and assisting local governments with recovery. As part of its 

mandate, Cal OES pays money to victims of wildfires and has reimbursement claims against the 

Debtors that could be construed as included in the “contractual, equitable or statutory” rights or 

“otherwise in connection with payments” language used to define Subrogation Claims. 

3. CalVet will assert claims for amounts already paid to veterans for their property 

losses for the Camp, Butte and Nuns wildfires, which also could be construed as included in the 

broad definition of Subrogation Claims. 

4. Counsel for Cal OES and CalVet has contacted counsel for the Debtors regarding 

this issue. Debtors’ counsel confirmed that the claims of Cal OES or CalVet are not included in 

the definition of Subrogation Claims and are not part of the Subrogation Claims Settlement. 

Debtors’ Counsel indicated that they will put in the revised proposed order a statement that the 

defined term Subrogation Claims does not include the claims of any Governmental Unit as 

defined in Bankruptcy Code section 101(27). Counsel for Cal OES and CalVet has not yet seen 

the specific proposed language. 

/// 

1

 Capitalized terms not otherwise defined shall have the same meaning as the Motion. 

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5. Pending inclusion of acceptable language in a revised proposed order confirming 

that the claims of Cal OES or CalVet are not included in the definition of Subrogation Claims and 

are not part of the Subrogation Claims Settlement, Cal OES and CalVet submit this limited 

objection to preserve their objection to being so included. 

6. Neither this statement nor any subsequent appearance, pleading, proof of claim, 

claim or suit is intended or shall be deemed or construed as: 

a. consent by Cal OES or CalVet to the jurisdiction of this Court or any other 

court with respect to proceedings, if any, commenced in any case against or otherwise involving 

Cal OES or CalVet; 

b. waiver of any right of Cal OES or CalVet to (i) have an Article III judge 

adjudicate in the first instance any case, proceeding, matter or controversy as to which a 

Bankruptcy Judge may not enter a final order or judgment consistent with Article III of the 

United States Constitution, (ii) have final orders in non-core matters entered only after de novo

review by a District Court Judge, (iii) trial by jury in any proceeding so triable in the Chapter 11 

Cases or in any case, controversy, or proceeding related to the Chapter 11 Cases, (iv) have the 

United States District Court withdraw the reference in any matter subject to mandatory or 

discretionary withdrawal, (v) any and all rights, claims, actions, defenses, setoffs, recoupments or 

remedies to which Cal OES or CalVet are or may be entitled under agreements, in law or in 

equity, all of which rights, claims, actions, defenses, setoffs and recoupments are expressly 

reserved hereby, (vi) the requirements for service of process under Federal Rules of Bankruptcy 

Procedure 7004 and 9014, or (vii) the requirements for service of an objection to claim under 

Federal Rule of Bankruptcy Procedure 3007, all of which rights, claims, actions, defenses, setoffs, 

and recoupments Cal OES and CalVet expressly reserve; or 

c. waiver of any objections or defenses that the State of California, Cal OES, 

CalVet or any other agency, unit or entity of the State of California may have to this Court’s 

jurisdiction over the State of California, Cal OES, CalVet or such other agency, unit or entity 

/// 

/// 

Case: 19-30088 Doc# 4220 Filed: 10/16/19 Entered: 10/16/19 10:27:08 Page 3 of

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based upon the Eleventh Amendment to the United States Constitution or related principles of 

sovereign immunity or otherwise, all of which objections and defenses are hereby reserved. 

Dated: October 16, 2019 Respectfully submitted, 

XAVIER BECERRA 

Attorney General of California 

MARGARITA PADILLA 

Supervising Deputy Attorney General 

MATTHEW C. HEYN 

Deputy Attorney General 

By: /s/ Paul J. Pascuzzi__________________________ 

STEVEN H. FELDERSTEIN 

PAUL J. PASCUZZI 

FELDERSTEIN FITZGERALD 

WILLOUGHBY PASCUZZI & RIOS LLP 

Attorneys for California Governor’s Office of 

Emergency Services and California Department of 

Veterans Affairs 

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PROOF OF SERVICE 

I, Sabrina M. Cisneros, declare: 

I am a resident of the State of California and over the age of eighteen years, and not a 

party to the within action; my business address is 500 Capitol Mall, Suite 2250, Sacramento, CA 

95814. On October 16, 2019, I served the within documents: 

LIMITED OBJECTION OF CALIFORNIA GOVERNOR’S OFFICE OF 

EMERGENCY SERVICES AND CALIFORNIA DEPARTMENT OF VETERANS 

AFFAIRS TO DEBTORS’ SUBROGATION SETTLEMENT AND RSA MOTION 

[DOCKET NO. 3992] 

By Electronic Service only via CM/ECF. 

/s/ Sabrina M. Cisneros

Sabrina M. Cisneros 

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