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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 Department of Forestry 

and Fire Protection, et al. 

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: December 17, 2019 

Time: 10:00 a.m. 

Ctrm: 17 

Judge: Dennis Montali 

RESPONSE OF THE CALIFORNIA STATE AGENCIES TO DEBTORS’ NOTICE

OF DESIGNATION OF CLAIMS FILED BY THE STATE OF CALIFORNIA AS

UNLIQUIDATED AND SUBJECT TO ESTIMATION UNDER SECTION 502(c)

OF THE BANKRUPTCY CODE [DOCKET NO. 4553] 

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-iTABLE OF CONTENTS 

INTRODUCTION ........................................................................................................................... 1

RESPONSE ...................................................................................................................................... 3

A. Designated Claims Not Related to the Wildfires Subject to the Estimation 

Motion Are Not Subject to Estimation .................................................................... 3

B. Section 502(c) Estimation is Applicable to Unliquidated Claims Only .................. 5

C. The California State Agencies’ Liquidated Claims are Known with

Precision or are Readily Ascertainable .................................................................... 6

1. CAL FIRE. ................................................................................................... 6

2. DTSC ......................................................................................................... 10

3. Cal State University. .................................................................................. 11

4. DDS. ........................................................................................................... 12

5. State Parks .................................................................................................. 13

D. The Liquidated Portion of the Claims of Cal OES, CalVet and Caltrans Are 

Not Subject to the Estimation Procedures .............................................................. 13

1. Cal OES ...................................................................................................... 13

2. CalVet ........................................................................................................ 15

3. Caltrans ...................................................................................................... 16

E. For Purposes of the Estimation Motion Only, State Parks Does Not Object 

to the Debtors’ Designation of Its Claims with Respect to the Nuns Fire as 

Subject to the Estimation Procedures ..................................................................... 17

RESERVATION OF RIGHTS ...................................................................................................... 18

CONCLUSION .............................................................................................................................. 18

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-iiTABLE OF AUTHORITIES 

CASES 

In re Audre, Inc. 

 202 B.R. 490 (Bankr. S.D. Cal. 1996) .................................................................................. 5, 6 

In re Fostvedt 

823 F.2d 305 (9th Cir. 1987) ...................................................................................................... 5 

FDIC v. Wenberg (In re Wenberg)

94 B.R. 631 (B.A.P. 9th Cir. 1988) ............................................................................................ 2 

Nicholes v. Johnny Appleseed (In re Nicholes)

184 B.R. 82 (B.A.P. 9th Cir. 1995) ........................................................................................ 5, 6

People v. S. Cal. Edison Co. 

56 Cal. App. 3d 593 (1976) ........................................................................................................ 9 

People v. S. Pac. Co. 

139 Cal. App. 3d 627 (1983) ...................................................................................................... 9 

People ex rel. Grijalva v. Superior Court 

159 Cal. App. 4th 1072 (2008) .................................................................................................. 9 

Reading Co. v. Brown 

391 U.S. 471 (1968) ................................................................................................................... 4 

Slack v. Wilshire Ins. Co. (In re Slack) 

187 F.3d 1070 (9th Cir. 1999) .................................................................................................... 5 

STATUTES 

11 U.S.C. § 109 ............................................................................................................................ 2, 5 

11 U.S.C. § 502 ....................................................................................................................... passim

28 U.S.C. § 959 ................................................................................................................................ 4 

California Civil Code § 3287 ........................................................................................................... 9 

California Health & Safety Code § 13009 ............................................................................. 7, 9, 11 

California Health & Safety Code § 25354 ..................................................................................... 10 

California Public Resources § 713 ................................................................................................... 7 

California Public Resources § 714 ................................................................................................... 7 

California Water Code § 80000 ....................................................................................................... 3 

California Water Code § 80106 ....................................................................................................... 4 

California Water Code § 80112 ....................................................................................................... 4 

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The California Department of Forestry and Fire Protection (“CAL FIRE”), California 

Department of Toxic Substances Control (“DTSC”), California Governor’s Office of Emergency 

Services (“Cal OES”), California Department of Veterans Affairs (“CalVet”), California State 

University, Chico (“Cal State University”), California Department of Parks and Recreation 

(“State Parks”), California Department of Transportation (“Caltrans”), California Department of 

Developmental Services (“DDS”) and California Department of Water Resources (“DWR”) 

(collectively, the “California State Agencies”) hereby file this response to the Notice of Debtors’ 

Designation of Claims Filed by the United States of America, the State of California and 

Adventist Health System as Unliquidated and Subject to Estimation Under Section 502(c) of the 

Bankruptcy Code (“Notice”) [Docket No. 4553] based on the following: 

INTRODUCTION 

The California State Agencies oppose the Debtors’ designations in the Notice on the 

following grounds: 

1. The claim filed by DWR, and the claims of CAL FIRE with respect to the 415, 

Almond, Benson, Bissett, Cienega, Corrine, Country, Harney, Northridge, Parkfield, Saddle, 

Sawmill, Soda, Table and Zenon fires, do not relate to any of the wildfires that are the subject of 

the Debtors’ Estimation Motion (defined below), should not have been included in the Notice, 

and cannot be estimated pursuant to the Debtors’ Estimation Motion. The California State 

Agencies reserve all rights with respect to whether those claims are unliquidated or otherwise 

subject to estimation under Section 502(c). And like the Debtors, the California State Agencies 

reserve all rights related to those claims, including allowance, disallowance and the determination 

of the amounts thereof.1

2. The remaining designated CAL FIRE claims, the DTSC claim, the Cal State 

University claim, the DDS claim, the five claims filed by State Parks with respect to the Camp 

1

 Only claims of the California State Agencies related to wildfires and the Debtors’ Notice are 

addressed in this response. For example, State Parks filed thirteen proofs of claim, of which only 

nine relate to wildfires. Similarly, Claim No. 77351 (“DTSC’s Wildfire Claim”) is one of ten 

proofs of claim DTSC filed in this matter. DTSC’s Wildfire Claim seeks reimbursement of 

specific costs that DTSC has incurred or will incur responding to the wildfires. DTSC’s other 

proofs of claim are unrelated to the wildfires. Other California State Agencies also may have 

filed proofs of claim that are unrelated to the wildfires. 

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Fire and the amended State Parks claim filed with respect to staff costs related to the Nuns Fire 

(collectively, the “Liquidated Claims”) are each for specific amounts that have already been spent 

by the respective state agency and are liquidated for purposes of section 502(c).2

 As such, the 

Liquidated Claims are not subject to estimation under section 502(c). 

3. For purposes of the Estimation Motion only (and reserving all other rights), the 

designated claims of Cal OES, CalVet and Caltrans include liquidated and unliquidated portions 

as explained below and, to the extent that the claims are liquidated, such claims cannot be 

estimated under section 502(c).3 For purposes of the Estimation Motion only, Cal OES, CalVet 

and Caltrans calculate the liquidated and unliquidated portions of their respective claims as 

follows: 

Entity Liquidated Portion Unliquidated Portion Total Claim

Cal OES $409,612,244.00 $2,284,452,726.00 $2,694,064,970.00

CalVet $4,385,193.55 $6,493,553.86 $10,878,747.41 

Caltrans $21,270,374.95 $203,360,053.00 $224,630,427.95

Grand Total $435,267,812.50 $2,494,306,332.86 $2,929,574,145.36

4. Each of the four claims filed by State Parks with respect to the Nuns and Tubbs 

Fires were amended to exclude amounts for the Tubbs Fire or will be withdrawn. Of the three 

amended claims, the claim relating to staff costs associated with the Nuns Fire (Claim No. 77009, 

as amended) is fully liquidated and included in the Liquidated Claims, as noted above. State 

Parks is not objecting to the Debtors’ designation that its claims, as amended, relating to lost 

revenue and property damage with respect to the Nuns Fire (Claim Nos. 60322 and 79781, as 

amended) are unliquidated solely for purposes of the Estimation Motion and without waiving any 

other rights with respect thereto. 

2

 While the Notice lists six claims for State Parks with respect to the Camp Fire, the $14,914.95 

claim for supplies was not filed, so there are only five proofs of claims filed by State Parks with 

respect to the Camp Fire. For the convenience of the Court, a chart of the 43 claims of the 

California State Agencies listed in the Notice along with a reference to the filed proof of claim 

number is attached to this brief as Exhibit A. Each of the proofs of claim listed in Exhibit A, as 

amended, are incorporated into this response as if filed herewith. 

3 See, e.g., FDIC v. Wenberg (In re Wenberg), 94 B.R. 631 (B.A.P. 9th Cir. 1988) (where the 

bankruptcy court determined portions of the FDIC’s claim were liquidated and unliquidated for 

purposes of section 109(e)). With respect to the Debtors’ designation of unliquidated claims in 

connection with the Estimation Motion only, the California State Agencies do not object to 

certain designations solely as set forth in this response. The California State Agencies reserve all 

rights with respect to such claims, including related to the allowance or disallowance and the 

determination of the amounts thereof. 

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RESPONSE 

A. Designated Claims Not Related to the Wildfires Subject to the Estimation Motion 

Are Not Subject to Estimation 

As set forth in the Notice, the motion filed by the Debtors on July 18, 2019 [Dkt. No. 

3091] (the “Estimation Motion”) “sought to establish the framework under which the Debtors 

aggregate liability for all contingent and/or unliquidated claims arising out of the 2015, 2017 and 

2018 Northern California Wildfires (the ‘Wildfires’ and the ‘Wildfire Claims’).” Notice at 2:8-

10 (footnote omitted). As specified in footnote 1 of the Notice, the Wildfires that are subject to 

the Estimation Motion are “the 2015 Butte Fire, the 2018 Camp Fire and the following 2017 

North Bay Wildfires: (1) Adobe; (2) Atlas; (3) Blue; (4) Cascade; (5) Cherokee; (6) Highway 37; 

(7) Honey; (8) La Porte; (9) Lobo; (10) Maacama; (11) McCourtney; (12) Norrbom; (13) Nuns; 

(14) Oakmont/Pythian; (15) Partrick; (16) Pocket; (17) Point; (18) Potter/Redwood; (19) Pressley; 

(20) Sullivan; (21) Sulphur and (22) Tubbs.” Notice at p.2, n.1; see also Estimation Motion at 

p.iii, n1. 

Notwithstanding that the Debtors’ Estimation Motion limits the scope of the estimation to 

certain Wildfires, the Notice includes a protective claim (which has since been amended as Claim 

No. 66196) filed by DWR, by and through its California Energy Resources Scheduling Division 

(CERS), that does not relate to any wildfire. Rather, this claim relates to charges that PG&E is 

required to bill and collect from its ratepayers pursuant to California Water Code Section 80000 

et seq. and applicable orders of the California Public Utilities Commission (CPUC). The charges 

pay for the $11.2 billion in bonds that CERS issued to pay for the power it purchased on behalf of 

the State’s investor-owned utilities during the California Energy Crisis. Because this claim does 

not relate to any wildfire, counsel for the Debtors admit that it is not subject to estimation covered 

by the Estimation Motion. 

Debtors nevertheless contend that the CERS’s claim is subject to estimation. CERS 

disagrees. PG&E is required to segregate and hold in trust all bond charges collected from its 

/// 

/// 

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ratepayers for the benefit of CERS pursuant to section 80112 of the California Water Code.4

 

Pursuant to the same section of the Water Code and related CPUC orders, PG&E must then remit 

the collected bond charge to CERS. These state law obligations continue notwithstanding that 

PG&E filed for bankruptcy. 28 U.S.C. § 959(b) (requiring debtor in possession of comply with 

applicable state law). And a debtor in possession’s compliance with state law is a fundamental 

condition to its continued operation. Thus, section 502(c) cannot be used, and should not be 

allowed to be used, by a debtor to potentially avoid its ongoing state law obligations, even when 

those obligations have not yet been liquidated.5 

Finally, and equally important, estimation of the amount of CERS’s claim, even if proper, 

is not necessary to prevent undue delay in the administration of this case. First, CERS expressly 

acknowledged in its proof of claim that PG&E is current in its remittance obligations to CERS, 

and that its claim is filed solely as a precautionary measure in case additional remittance amounts 

are determined to be due down the line. Second, for nearly two decades, including during the 

pendency of this case, CERS and PG&E have regularly and successfully engaged in an internal 

true-up process to ensure that bond remittances that were made based on forecasted energy needs 

of PG&E’s customers lined up with the actual power used.6

 Given this process and the fact that 

no additional prepetition amounts have been identified as due in the ten months since PG&E filed 

this case, it is difficult to imagine how estimation of the amount of CERS’s claim is necessary to 

prevent undue delay in the administration of this case. In short, a process exists, and has 

successfully operated for nearly twenty years, to finally determine the amount of PG&E’s bond 

charge remittances to CERS, and there is no reason to believe that, as they have in the past, the 

4

 Section 80112 of the California Water Code provides, in relevant part, that “[t]o the extent any 

moneys are received by an electrical corporation pursuant to Section 80106 in the process of 

collection, and pending their transfer to the department, they shall be segregated by the electrical 

corporation on terms and conditions established by the department and shall be held in trust for 

the benefit of the department.” 

5

 As set forth in its amended proof of claim, CERS reserves all rights to assert that its claim set 

forth in Claim No. 66196 is entitled to administrative priority. See Reading Co. v. Brown, 391 

U.S. 471 (1968) (post-petition tort liabilities of a business that continues to operate in bankruptcy 

qualify for administrative expense priority as actual and necessary expenses for the preservation 

of the estate). Conversion by PG&E of funds statutorily held in trust for CERS would satisfy this 

standard. 

6

 Pursuant to this Court’s Customer Program Order entered on March 12, 2019 [Docket No. 843], 

CERS and PG&E have operated “business as usual” during this case. 

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parties will not in the ordinary course of business be able to determine the extent to which, if at 

all, any further amounts are due. 

The Notice also includes the claims filed by CAL FIRE with respect to the following fires: 

415, Almond, Benson, Bissett, Cienega, Corrine, Country, Harney, Northridge, Parkfield, Saddle, 

Sawmill, Soda, Table and Zenon. None of these wildfires are included in the definition of 

“Wildfire” in the Estimation Motion and, therefore, are not subject estimation by the very terms 

of the Estimation Motion. The Debtors acknowledge such in the Notice. See Notice at 9:15-21. 

B. Section 502(c) Estimation is Applicable to Unliquidated Claims Only 

Bankruptcy Code section 502(c) permits the bankruptcy court to, among other things, 

estimate “any contingent or unliquidated claim, the fixing or liquidation of which, as the case may 

be, would unduly delay the administration of the case [.]” 11 U.S.C. § 502(c)(1). 

Under Ninth Circuit authority, “whether a debt is liquidated turns on whether it is subject 

to ‘ready determination and precision in computation of the amount due.’” In re Fostvedt, 

823 F.2d 305, 306 (9th Cir. 1987) (referring to the term “liquidated” as used in section 109(e)) 

(citations omitted). That same definition has been used in the context of interpreting 

“unliquidated” for section 502(c) purposes. In re Audre, Inc., 202 B.R. 490 (Bankr. S.D. Cal. 

1996). Moreover, a debt is liquidated even if liability has not been adjudicated or it is disputed. 

Slack v. Wilshire Ins. Co. (In re Slack), 187 F.3d 1070, 1074-75 (9th Cir. 1999) (section 109(e) 

case). 

“[A] contingent debt is ‘one which the debtor will be called upon to pay only upon the 

occurrence or happening of an extrinsic event which will trigger the liability of the debtor to the 

alleged creditor.’” Fostvedt, 823 F.2d at 306 (citations omitted). “[A] debt is noncontingent if all 

events giving rise to liability occurred prior to the filing of the bankruptcy petition.” Nicholes v. 

Johnny Appleseed (In re Nicholes), 184 B.R. 82, 88 (B.A.P. 9th Cir. 1995) (citing Fostvedt). As 

the Nicholes court explained: 

A tort claim ordinarily is not contingent as to liability; the events that gave rise to 

liability to the tort claim usually have occurred and liability is not dependent on 

some future event that may never happen. It is immaterial that the tort claim is not 

adjudicated or liquidated, or that the claim is disputed, or indeed that it has any of 

the many other characteristics of claims under the Code. 

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Nicholes, 184 B.R. at 88 n.7 (citation omitted). The Nicholes analysis has been applied with 

respect to interpreting “contingent” for section 502(c) purposes. Audre, Inc., 202 B.R. at 492. As 

this Court has previously noted in open court, each of the Wildfires subject to the Estimation 

Motion has occurred, so each of the California State Agencies’ claims involving those Wildfires 

is not contingent. 

C. The California State Agencies’ Liquidated Claims are Known with Precision or are 

Readily Ascertainable 

As set forth in the filed proofs of claims, the Liquidated Claims of CAL FIRE, DTSC, Cal 

State University, and DDS as well as the claims of State Parks with respect to the Camp Fire, are 

NOT contingent (as noted above) or unliquidated and thus are NOT subject to estimation 

pursuant to the express language of section 502(c). Simply by reviewing the various Liquidated 

Claims, the Court can determine that the amount of each such claim represents funds that have 

already been spent and are specified in detail in each of the Liquidated Claims. The sole 

exception to this is the DDS claim, which is based on funds that are obligated, as discussed below 

and are therefore readily determinable and liquidated. 

1. CAL FIRE: CAL FIRE filed seven separate proofs of claim related to the 

Wildfires that are included in the Estimation Motion: (a) Atlas, Adobe, Norrbom, Nuns, Partrick, 

Pocket, Pressley and Pythian/Oakmont Fires (Claim No. 77897), (b) Blue Fire (Claim No. 

75665), (c) Butte Fire (Claim No. 79729), (d) Camp Fire (Claim No. 78467), (e) Cascade, La 

Porte, Lobo and McCourtney Fires (Claim No. 77727), (f) Honey Fire (Claim No. 77667) and 

(g) Sulphur Fire (Claim No. 79752) (collectively, the “CAL FIRE Claims”). Each CAL FIRE 

Claim includes, inter alia, a supplemental statement describing the specific fire(s) and the 

grounds for CAL FIRE’s right to recovery. 

Each CAL FIRE Claim also attaches an Activity Reporting and Costs Summary that sets 

forth the specific amounts for: (a) Ground Resources, including personnel activity (subdivided 

into straight time, overtime, incidental differentials and emergency workers), equipment activity, 

and operating expenses, (b) Air Resources, including fixed wing, rotary wing, and other aircraft 

costs, and (c) administrative charges already spent by CAL FIRE in connection with the specific 

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Wildfire(s) that are the subject of that CAL FIRE Claim. In addition to the CAL FIRE Claims, 

CAL FIRE filed a separate proof of claim for a specific amount of post-petition attorneys’ fees 

incurred by CAL FIRE through October 16, 2019 (Claim No. 65505). 

While a review of the CAL FIRE Claims is enough for the Court to rule that the CAL 

FIRE Claim are liquidated and not subject to estimation, a review of California law regarding the 

basis for the CAL FIRE Claims bolsters this conclusion. Under California law, CAL FIRE is 

charged with “fire protection, fire prevention . . . of the state’s forest, range, and brushland 

resources . . . associated emergency services, and assistance in civil disasters and other nonfire 

emergencies” and “[e]nforcing forest and fire laws” in California. Cal. Pub. Res. Code §§ 713, 

714. CAL FIRE’s fire protection responsibilities include regularly responding to fire emergencies 

throughout the state. CAL FIRE also bears responsibility for investigating the origin and cause of 

fires that occur in its jurisdiction. 

California Health and Safety Code sections 13009 and 13009.1 authorize CAL FIRE to 

recover certain costs from persons who, negligently or in violation of the law, “set[] a fire, allow[] 

a fire to be set, or allow[] a fire kindled or attended by him or her to escape onto any public or 

private property.” Cal. Health & Safety Code §§ 13009, 13009.1. Recoverable costs include 

costs incurred in fighting and suppressing the fire, costs of rescue and emergency medical 

services, investigation costs, and administrative and accounting costs. Id. §§ 13009(a), 

13009.1(a). While CAL FIRE’s claim for cost recovery is statutory, the costs are recoverable 

from the responsible party “in the same manner as . . . an obligation under a contract, express or 

implied.” Id. §§ 13009(a), 13009.1(e). Each of CAL FIRE’s claims for cost recovery arising out 

of the Wildfires is liquidated because each claim is both readily determinable and is a precise 

computation of the amount due to CAL FIRE based on the respective Wildfire. 

It is CAL FIRE’s practice to complete internal processes that precisely compute the 

amount of CAL FIRE’s cost recovery claims with respect to each fire incident at issue. After 

CAL FIRE has suppressed a fire, if CAL FIRE determines that the fire was caused by negligence 

and/or violation of law (and/or for other reasons not relevant here), a CAL FIRE employee 

initiates the Activity Reporting Costs (ARC) Report for the fire, which is prepared using a CAL 

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FIRE internal ARC software program. 

The ARC software program imports qualifying, recoverable costs associated with the 

incident from various accounting programs and processes at CAL FIRE. Once all appropriate 

costs have been imported, CAL FIRE personnel begin a review and audit of the imported costs 

associated with the fire. During this review, CAL FIRE personnel collect finance documents 

related to the incident, confirm those documents correspond to the charges in the ARC, and adjust 

the costs claimed in the ARC to ensure compliance with CAL FIRE’s cost recovery policies. If a 

cost is not supported by back-up financial documents or not incurred in relation to the particular 

fire, CAL FIRE personnel make the cost “not billable,” manually removing it from the ARC. In 

this way, CAL FIRE personnel review and analyze each line-item charged to a specific fire. 

Once finished, the ARC package, generally consisting of the ARC Report and supporting 

finance documents, becomes CAL FIRE’s report of recoverable costs related to a specific 

incident. The first page of the ARC Report is the ARC Summary, which is divided into sections 

relating to suppression and investigation: Ground Resources – and further divided by personnel 

activity (subdivided by straight time, overtime, and emergency workers), equipment activity, and 

operating expenses – and Air Resources (fixed wing, rotary wing, and other); and a further 

section for the administrative charge, which covers CAL FIRE’s costs of administering a 

suppression, investigation, and cost recovery program. Subsequent pages of the ARC detail 

information including the name, class, hours, and rate of each individual who worked on a fire; a 

line item entry for each piece of equipment used, including the type of equipment, its rate, and 

amount of time it was used; line items for each operating expense claimed; and line items for each 

piece of aircraft used, including the type of aircraft, time in use, crew, and rates for both crew 

personnel and the aircraft. 

As noted above, this information is supported and has been audited to ensure that it 

reflects actual expenses that have been documented by CAL FIRE with respect to each particular 

fire. These numbers are calculated based on CAL FIRE’s records and are not subject to change, 

unless, for example, a new invoice is submitted by a cooperating agency or vendor, a new receipt 

is located to back-up an item that was manually written off the ARC for lack of documentary 

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support, or further review identifies an error in previous calculations. The potential for errors 

when one is working with a large volume of documents is true in any case and such a possibility 

does not undermine the fact that each CAL FIRE claim is certain to the penny, is based on 

concrete financial supporting documentation, and is calculated consistent with governing statutes, 

case law, and its fire cost recovery policy, as discussed in more detail below. 

Under California Health and Safety Code section 13009, “the proper measure for 

determining ‘expense’ incurred for fighting fires . . . requires that (1) the expense claimed be 

incurred in fighting the fire, (2) that said expense be the proximate result of defendant's wrongful 

conduct, and (3) that said expense be reasonably incurred.” People v. S. Cal. Edison Co., 56 Cal. 

App. 3d 593, 605 (1976). A complete ARC package lays the foundation for both the 

reasonableness and amount of CAL FIRE’s costs, as required under Section 13009, and 

California courts have held that CAL FIRE’s ARC “conclusively established” the amount CAL 

FIRE expended in recoverable fire suppression and investigation activities. Id. at 602-607. 

Moreover, the costs incurred in fighting a fire are deemed reasonable if they were actually 

incurred. See People ex rel. Grijalva v. Superior Court, 159 Cal. App. 4th 1072, 1077-78 (2008) 

(holding that based on the statutory immunities in the Government Code, arguments that CAL 

FIRE used “unreasonable or inefficient methods to fight the fire” are “foreclosed by the 

Government Code”). As a result, the costs described in CAL FIRE’s ARCs generally are not 

subject to substantial revision at trial because defendants opposing CAL FIRE’s cost recovery 

claims cannot make arguments of comparative fault or mitigation of damages to reduce CAL 

FIRE’s costs described in the ARC. Id. 

CAL FIRE’s normal procedure for fires caused negligently or in violation of the law is to 

send a Letter of Demand to the responsible party, identifying CAL FIRE’s recoverable costs, as 

described in its ARC. CAL FIRE’s transmission of its demand letter to the responsible party 

triggers prejudgment interest at a rate of ten percent per annum on the amount due. Cal. Civ. 

Code § 3287; People v. S. Pac. Co., 139 Cal. App. 3d 627, 640-41 (1983). This is because the 

fire suppression costs identified in the ARC are “certain, or capable of being made certain by 

calculation.” Cal. Civ. Code § 3287(a). 

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The weight of authority above supports the conclusion that CAL FIRE’s claims are readily 

determinable and liquidated for purposes of Bankruptcy Code section 502(c). Because the ARCs 

identify each specific recoverable expense that CAL FIRE incurred in suppressing, investigating, 

and accounting for a fire, because CAL FIRE calculates these expenses mathematically down to 

the penny, and because the amounts sought are not subject to determination through an 

evidentiary hearing under California law, CAL FIRE’s ARC-backed cost recovery claims are 

liquidated. In addition, the specific amount of post-petition attorneys’ fees already incurred by 

CAL FIRE through October 16, 2019, with respect to the Debtors’ bankruptcy case also are 

liquidated. The CAL FIRE Claims cannot be estimated. 

2. DTSC: DTSC has authority to take “immediate corrective action necessary to 

remedy or prevent an emergency resulting from a fire or an explosion of, or human exposure to, 

hazardous substances caused by the release or threatened release of a hazardous substance.” Cal. 

Health & Safety Code §§ 25354. As demonstrated in DTSC’s Wildfire Claim (Claim No. 

77351), DTSC exercised that authority to locate and remove hazardous wastes or other hazardous 

substances in individual burned structures, following the Butte, Sulphur, Cascade, McCourtney 

and Lobo, Redwood Valley, Laporte and Camp Fires. The task is well-defined and limited in 

time. After receiving a mission task from OES, DTSC directs a contractor to inspect each burned 

structure and remove and legally dispose of any hazardous substances it locates. Primarily, 

DTSC and its contractors inspect burned residential structures, but occasionally other agencies 

will call on DTSC to remove substances from individual non-residential structures. 

DTSC employs a detailed process to track costs and employee time for responding to 

cleanup of hazardous substances at each site. Exhibit C to DTSC Claim No. 77351 sets forth the 

specific amounts DTSC has already expended for contractor costs as well as travel and personal 

service costs related to the Butte, Sulphur, Cascade, McCoutney & Lobo, Redwood Valley and 

La Porte Fires. As to the Camp Fire, DTSC’s claim includes contractor costs incurred through 

February 28, 2019 and all travel and personal service costs through June 30, 2019. Like CAL 

FIRE, DTSC’s response costs have already been spent, are determinable and are therefore 

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liquidated. The DTSC Claim cannot be estimated.7

Health and Safety Code section 13009.6 provides that a public agency, such as DTSC, 

may recover emergency response expenses it incurs “to confine, prevent, or mitigate the release, 

escape, or burning of hazardous substances” from a person whose negligence causes the incident, 

where the incident results in a fire that spreads beyond where it originated. Cal. Health & Safety 

Code § 13009.6(a)(1)(B) (Emphasis added). Crucially, the “charge created against the person . . . 

is also a charge against the person’s employer if the negligence causing the incident occurs in the 

course of the person’s employment” id., § 13009.6(a)(3) and the “expenses reimbursable to a 

public agency under this section are a debt of the person liable therefor, and shall be collectible in 

the same manner as in the case of an obligation under contract, express or implied.” Id.,

§ 13009.6(a)(2). 

3. Cal State University: As described in its proof of claim (Claim No. 79746), as a 

result of the Camp Fire, the California State University, Chico campus was enveloped in smoke 

resulting in an emergency closure of the campus from November 9 to November 23, 2018. In 

addition, students, faculty and staff were required to evacuate their homes. Athletic events were 

cancelled, business property was destroyed, and Cal State University was required to staff and 

supply its Emergency Operation Center and Critical Response Unit. 

Claim No. 79746 sets forth the specific amount of funds Cal State University has 

expended as a result of the Camp Fire. These include specific amounts spent to (a) preserve its 

building and real property damaged by the Camp Fire, (b) replace computers and other business 

property destroyed in the Camp Fire (including business property located in various homes in 

Paradise and surrounding communities), (c) purchase food and other supplies for the Emergency 

Operation Center and Critical Response Unit operated in response to the Camp Fire, (d) refund 

tickets for three basketball games cancelled as a result of the Camp Fire, and (e) pay overtime to 

non-exempt and student employees called to work during the emergency closure period. Physical 

7

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contractor costs and travel and personal service costs. These additional costs are certain and 

DTSC will amend its Wildfire Claim accordingly. Additionally, in the event DTSC receives 

additional requests to remove hazardous substances from non-residential properties burned in the 

Camp Fire, it will amend DTSC’s Wildfire Claim to incorporate those costs as well. 

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receipts and reports back up each dollar spent. As shown in the Cal State University proof of 

claim, each of these costs are determinable and liquidated. The Cal State University claim cannot 

be estimated. 

4. DDS: DDS provides services to individuals with developmental disabilities. DDS 

was impacted by the Nuns-Norrbom Fire and Camp Fire.8 As described in its proof of claim 

(Claim No. 73262, as amended), the Nuns-Norrbom Fire in October 2017 caused DDS to 

evacuate all of its approximately 241 consumers housed in its Sonoma Developmental Center and 

resulted in extensive damage to that center. DDS has received over $10 million in funds from the 

Federal Emergency Management Agency (“FEMA”) as a result of Nuns-Norrbom Fire and 

asserts a claim for $4,124,246.85, which is comprised of the non-FEMA portion of the FEMA 

funds obligated on behalf of DDS. As discussed in more detail in Section D.1 below in 

connection with the Cal OES claims, funds are “obligated” when FEMA has approved the 

requested expenditure of funds and, whether or not the FEMA and non-FEMA portions have been 

fully expended, entities receiving those funds are obligated to spend the approved funds in 

accordance with the approved application. Accordingly, the DDS claim based on the NunsNorrbom Fire is liquidated for purposes of the Estimation Motion since non-FEMA portion of the 

obligated funds is readily determinable whether or not DDS has already expended the non-FEMA 

funds. 

With respect to the Camp Fire, DDS was required to house and care for approximately 

16 individuals with developmental disabilities evacuated from areas affected by the Camp Fire at 

DDS’ Porterville Developmental Center. The DDS proof of claim seeks reimbursement for 

$967,182.80 DDS spent on labor costs and supplies in doing so and as a direct result of the Camp 

Fire. Because these costs are readily determinable and already spent, the DDS claim is liquidated 

and cannot be estimated. 

/// 

/// 

8

 The original proof of claim filed by DDS did not include a breakdown of its asserted claim 

(Claim No. 73262). DDS has filed an amended Claim No. 73262 to set forth the two components 

of its claim and attaching spreadsheets in further support of its proof of claim. 

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5. State Parks: State Parks filed five proofs of claim with respect to the Camp Fire 

(Claim Nos. 60117, 61514, 77696, 77861 and 79533).9 Each of these proofs of claim seek 

reimbursement for specific, actual costs incurred by State Parks as a result of the Camp Fire. 

Four of the proofs of claim seek reimbursement for specific expenses already incurred for 

(a) labor to clean up and remove debris resulting from the Camp Fire (Claim No. 77861), 

(b) travel expenses for State Parks employees to respond to the Camp Fire (Claim No. 60117), 

(c) voyager costs for fuel used in mitigation after the Camp Fire (Claim No. 61514), and (d) labor 

costs (including overtime) for evacuation assistance, fueling vehicles, picking up supplies, 

archaeological monitoring and aiding law enforcement as a result of the Camp Fire (Claim 

No. 77696). The fifth proof of claim (Claim No. 79533) with respect to the Camp Fire seeks 

recovery of permit fees for the use of Lake Oroville State Recreational Area as a staging area for 

the Camp Fire. 

State Parks also filed a proof of claim related to its staff costs with respect to the Nuns 

Fire (Claim No. 77009, as amended). This claim is fully liquidated, as set forth in the 

spreadsheets attached to the claim setting forth amounts owed to State Parks for staff costs 

attributable to the Nuns Fire.10 

Each of these costs are determinable and liquidated, and none of the State Park claims 

filed with respect to the Camp Fire can be estimated. 

D. The Liquidated Portion of the Claims of Cal OES, CalVet and Caltrans Are Not 

Subject to the Estimation Procedures

1. Cal OES: Cal OES filed three proofs of claim, one each for the Butte Fire (Claim 

No. 79429,11 as amended), Camp Fire (Claim No. 79398, as amended) and North Bay Fires 

9

 While the Notice lists six claims for State Parks with respect to the Camp Fire, the $14,914.95 

claim for supplies was not filed, so there are only five proofs of claims filed by State Parks with 

respect to the Camp Fire. 

10 Although the seasonal employees ATO amounts are not included in the total amount for that 

spreadsheet, when all amounts on each of the spreadsheets are totaled, the amount equals 

$748,321.64. The amount listed on the proof of claim rounds down this number to a whole dollar 

amount. 

11 It appears that the Cal OES proof of claim with respect to the Butte Fire was filed twice by 

Prime Clerk, once as Claim No. 79429 and once as Claim No. 78463. 

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(Claim No. 77624,12 as amended). These claims arise out of Cal OES’ coordinating and 

providing public assistance in response to each of the referenced fires. In a catastrophic disaster, 

federal resources may be mobilized through FEMA and Cal OES to pay part of emergency work 

and the costs of rebuilding a community’s damaged infrastructure. Such assistance may include 

funding for fire abatement, debris removal, emergency protective measures and public services, 

repair or replacement of damaged public property, and grants for public schools and non-profit 

entities. 

To be eligible for funding under FEMA’s public assistance program, a state agency, 

territory, tribe, local government or private nonprofit organization must apply for funding to 

provide emergency or permanent work required as a result of a declared incident, located within 

the designated disaster area. Funding is tied directly to eligible work and must be adequately 

documented, authorized, necessary and reasonable. 

Once an application is approved by FEMA, the federal government and Cal OES enter 

into an arrangement called an “obligation.” Once funds are “obligated,” the federal government 

and Cal OES have promised to spend the money – either immediately or in the future – on the 

project approved in the application. This obligation is a legally binding agreement that will result 

in outlays, immediately or in the future. Because all entities receiving those funds are obligated 

to spend the approved funds on the approved project, the claims based on “obligated” amounts 

are readily determinable and are liquidated for purposes of section 502(c). 

All amounts listed in the proof of claim for the Butte Fire (Claim No. 79429, as amended) 

represent “obligated” funds, most or all of which have already been spent, so all funds asserted in 

that proof of claim are liquidated. With respect to the proofs of claim filed by Cal OES for the 

Camp Fire (Claim No. 79398, as amended) and the North Bay Fires (Claim No. 77624, as 

amended), the “PW Inventory” spreadsheet attached to the respective proofs of claim (divided 

into two spreadsheets labeled “Small Projects Obligated” and “Large Projects Obligated” in the 

amended proofs of claim) lists projects for which FEMA has approved funding and are 

12 It appears that the Cal OES proof of claim with respect to the North Bay Fires was filed twice 

by Prime Clerk, once as Claim No. 77624 and once as Claim No. 78495. 

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considered “obligated,” and thus are liquidated. The amounts on the “Project” and “Damage 

Item” spreadsheets for both proofs of claim (labeled as “Projects Not Obligated” and “Pending 

Projects Not Yet Written To A Project Worksheet” in the amended proofs of claim) are for 

projects for which FEMA funding has not yet been approved and, consequently, Cal OES is not 

opposing the Debtors’ designation as unliquidated for purposes of the Estimation Motion only 

(while reserving all other rights). The following chart sets forth the liquidated and unliquidated 

(for purposes of the Estimation Motion only) portions of Cal OES’ claims per fire: 

Fire Liquidated Portion Unliquidated Portion Total Claim

Butte (DR-4240) $99,354,738.00 $ -0- $99,354,738.00

Camp (DR-4407) $82,032,551.00 $2,231,447,091.00 $2,313,479,642.00

North Bay (DR-4344) $228,224,955.00 $53,005,635.00 $281,230,590.00

Total $409,612,244.00 $2,284,452,726.00 $2,694,064,970.00

The liquidated portion of the Cal OES proofs of claim set forth above are funds that Cal OES has 

either already spent or have been approved (i.e. “obligated”) to be spent on a particular project, 

are readily determinable in precise amounts. As such, these portions of the Cal OES claims need 

not be estimated. The Court should order that the Butte Fire claim and the liquidated portion of 

the North Bay Fires proof of claim are not subject to the estimation proceeding. However, 

because the majority of the amounts for the Camp Fire are unliquidated, to avoid confusion, Cal 

OES does not object to the designation of the entirety of its claim relating to the Camp Fire as 

being treated as unliquidated—for purposes of the Estimation Motion only and reserving all other 

rights. 

2. CalVet: CalVet helps veterans buy homes and farms by lending to them. 

However, the loan is best described as an installment sales contract: Cal Vet has legal title to the 

property and the veteran has an equitable interest in the property. CalVet self-insures its property, 

subject to reinsurance. 

 In its proof of claim (Claim No. 79878), CalVet asserts liquidated damages related to the 

Butte Fire and the Nuns Fire for amounts paid for damaged property and displaced temporary 

housing. In addition, CalVet asserts liquidated and unliquidated claims (for purposes of the 

Estimation Motion only while reserving all other rights) as a result of the Camp Fire including 

amounts (i) already paid to veterans for their property losses (liquidated), (ii) already paid to 

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veterans for discrete property damage to property owned by CalVet (liquidated), or (iii) expected 

to be paid (for purposes of the Estimation Motion only, unliquidated). The following chart sets 

forth the liquidated and unliquidated portions of CalVet’s claim per fire: 

Fire Liquidated Portion Unliquidated 

Portion13

Total Claim

Camp $4,256,328.47 $6,493,553.86 $10,749,882.33

Butte $108,546.99 $ -0- $108,546.99

Nuns $20,318.09 $ -0- $20,310.09

Total $4,385,193.55 $6,493,553.86 $10,878,747.41

The liquidated portion of the CalVet proof of claim are specific amounts CalVet has already spent 

as of October 4, 2019 based on checks paid to the veterans and related costs. The liquidated 

portion of CalVet’s proof of claim is readily determinable in precise amounts and cannot be 

estimated. 

3. Caltrans: Caltrans filed two proofs of claim, one for District 3 (Camp Fire) (Claim 

No. 68782) and one for District 4 (Nuns, Atlas and Highway 37 Fires) (Claim No. 72321), for 

property damage and emergency response costs in connection with Camp, Nuns, Atlas and 

Highway 37 Fires. 

As set forth in the proof of claim for Caltrans District 3 (Camp Fire) (Claim No. 68782), 

Caltrans responded to the Camp Fire by providing emergency traffic control and deploying a 

mobile satellite communication in the aftermath of the Camp Fire. Caltrans also incurred costs 

for labor and materials to, inter alia, replace damaged traffic control and advisory signs, remove 

fire debris and damaged trees and vegetation, repair damage to asphalt/concrete pavement, slabs 

and slide and slip, and inspect and examine roadways to detect hazards. The Caltrans District 3 

proof of claim contains attachments setting forth expended and projected Caltrans’ labor costs, 

operating expenses and emergency contacts with respect to the Camp Fire. As set forth in 

section 4 of Claim No. 68782, from November 2018 through June 30, 2019, Caltrans has 

expended $13,683,195.98 in labor costs, operating expenses and emergency contacts with respect 

13 The Unliquidated Portion is calculated by adding up the columns labeled “Est Dwelling”, 

“Est 5% Debris Removal Expense”, Est Bldg Code Upgrade, Incr Cost to Constr. @25%”, 

“Est Displaced Temp Housing” and “Est Future Adj Costs” as set forth in the spreadsheet at 

page 8 of the CalVet proof of claim (Claim No. 79878). 

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to the Camp Fire. These sums are liquidated and cannot be estimated. Caltrans expects to spend 

an additional $203,360,053.00, which Caltrans does not object to the Debtors’ designation as 

unliquidated for purposes of the Estimation Motion only and reserving all other rights. 

As set forth in the proof of claim for Caltrans District 4 (Nuns, Atlas and Highway 37 

Fires) (Claim No. 72321), Caltrans expended specific amounts for labor and materials to, inter 

alia, provide traffic control, replace damaged traffic control and advisory signs, remove fire 

debris and damaged trees and vegetation, reconstruct metal beam guardrails that were destroyed 

or compromised by the Nuns, Atlas and Highway 37 Fires and repair damage to drainage 

systems. Caltrans generally records damage to its property on a Caltrans Damage Assessment 

Forms (DAFs) and then enters into agreements with independent contractors to repair and replace 

the road. Under these contracts, Caltrans is obligated to pay independent contactors the specified 

amounts in the DAFs. These are not estimates but obligations of Caltrans under contracts with 

third parties for remediation and repair of fire damage. Based on the same analysis as set forth 

above with respect to Cal OES, because any unspent amounts with respect to the DAFs must be 

spent on approved projects, Caltrans’ damages for the Nuns, Atlas, and Highway 37 Fires are 

completely liquidated. 

Accordingly, Caltrans’ proof of claim for District 4 (Nuns, Atlas and Highway 37 Fires) 

(Claim No. 72321) is fully liquidated and cannot be estimated. The liquidated portion of 

Caltrans’ proof of claim for District 3 (Camp Fire) (Claim No. 68782) is readily determinable in 

precise amounts and cannot be estimated. 

E. For Purposes of the Estimation Motion Only, State Parks Does Not Object to the 

Debtors’ Designation of Its Claims with Respect to the Nuns Fire as Subject to the 

Estimation Procedures

While State Parks filed four proofs of claim that included both the Tubbs and Nuns Fires, 

each of the four claims filed by State Parks with respect to the Nuns and Tubbs Fires were 

amended to exclude amounts for the Tubbs Fire or will be withdrawn. For purposes of the 

Estimation Motion only and reserving all other rights, State Parks does not object to the 

Designation of its claims, as amended, relating to lost revenue and property damage with respect 

to the Nuns Fire (Claim Nos. 60322 and 79781, as amended) as unliquidated and subject to 

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estimation under the Estimation Motion. 

RESERVATION OF RIGHTS 

Neither this objection nor any subsequent appearance, pleading, proof of claim, claim or 

suit is intended or shall be deemed or construed as: 

a. a consent by the California State Agencies to the jurisdiction of this Court 

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

otherwise involving the California State Agencies; 

b. a waiver of any right of the California State Agencies 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, or (v) any and all rights, claims, actions, defenses, setoffs, 

recoupments or remedies to which the California State Agencies 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; or 

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

California State Agencies or any other agency, unit or entity of the State of California may have 

to this Court’s jurisdiction over the State of California, the California State Agencies or such 

other agency, unit or entity 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. 

CONCLUSION 

For the reasons set forth above, the California State Agencies request the Court to enter an 

order for purposes of the Estimation Motion only as follows: 

/// 

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(a) the claim filed by DWR (Claim No. 78143, as amended by 66196) and the filed 

claims of CAL FIRE with respect to the 415 Fire (Claim No. 77581), Almond Fire (Claim 

No. 77030), Benson Fire (Claim No. 77538), Bissett Fire (Claim No. 79403), Cienega Fire 

(Claim No. 76888), Corrine Fire (Claim No. 77661), Country Fire (Claim No. 78866), Harney 

Fire (Claim No. 79602), Northridge Fire (Claim No. 77586), Parkfield Fire (Claim No. 77745), 

Saddle Fire (Claim No. 77564), Sawmill Fire (Claim No. 79338), Soda Fire (Claim No. 77678), 

Table Fire (Claim No. 77595) and Zenon Fire (Claim No. 77572) do not relate to any of the 

Wildfires that are the subject of the Estimation Motion and shall not be estimated pursuant 

thereto; 

(b) the (i) claims of CAL FIRE with respect to the (a) Atlas, Adobe, Norrbom, Nuns, 

Partrick, Pocket, Pressley and Pythian/Oakmont Fires (Claim No. 77897), (b) Blue Fire (Claim 

No. 75665), (c) Butte Fire (Claim No. 79729), (d) Camp Fire (Claim No. 78467), (e) Cascade, La 

Porte, Lobo and McCourtney Fires (Claim No. 77727), (f) Honey Fire (Claim No. 77667), 

(g) Sulphur Fire (Claim No. 79752) and (h) post-petition attorneys’ fees (Claim No. 65505); 

(ii) claim of DTSC (Claim No. 77351); (iii) claim of Cal State University (Claim No. 79746); 

(iv) DDS (Claim No. 73262, as amended); (v) five claims filed by State Parks with respect to the 

Camp Fire (Claim Nos. 60117, 61514, 77696, 77861 and 79533); and (vi) amended claim of State 

Parks for staff costs with respect to the Nuns Fire (Claim No. 77009, as amended) are fully 

liquidated pursuant to section 502(c) and are not subject to estimation; 

(c) the claim filed by Cal OES with respect to the Butte Fire (Claim No. 79429, as 

amended) is fully liquidated pursuant to section 502(c) and is not subject to estimation; 

(d) the claim filed by Cal OES with respect to the Camp Fire (Claim No. 79398, as 

amended) is subject to estimation under the Estimation Motion; 

(e) only the unliquidated portion of the claim filed by Cal OES with respect to the 

North Bay Fires (Claim No. 77624, as amended) in the amount of $53,005,635 is subject to 

estimation under the Estimation Motion; 

(f) only the unliquidated portion of the claim filed by CalVet (Claim No. 79878) in 

the amount of $6,493,553.86 is subject to estimation under the Estimation Motion; 

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(g) the claim filed by Caltrans District 4 (Claim No. 72321) is fully liquidated 

pursuant to section 502(c) and is not subject to estimation; 

(h) only the unliquidated portion of the claim filed by Caltrans District 3 (Claim 

No. 68782) in the amount of $203,360,053.00 is subject to estimation under the Estimation 

Motion; 

(i) the amended claims of State Parks filed with respect to the Nuns Fire (Claim Nos. 

60322 and 79781, as amended) are subject to estimation under the Estimation Motion; and 

(j) all other rights of the claimants and the Debtors are reserved with respect to the 

claims addressed herein. 

Dated: November 15, 2019 Respectfully submitted, 

XAVIER BECERRA 

Attorney General of California 

MARGARITA PADILLA 

Supervising Deputy Attorney General 

By: /s/ Paul J. Pascuzzi____________________________ 

STEVEN H. FELDERSTEIN 

PAUL J. PASCUZZI 

FELDERSTEIN FITZGERALD 

WILLOUGHBY PASCUZZI & RIOS LLP 

Attorneys for California Department of Forestry and 

Fire Protection, California Department of Toxic 

Substances Control, California Governor’s Office of 

Emergency Services, California Department of Veterans 

Affairs, California State University, California 

Department of Parks and Recreation, California 

Department of Transportation, California Department of 

Developmental Services and California Department of 

Water Resources 

Case: 19-30088 Doc# 4774 Filed: 11/15/19 Entered: 11/15/19 15:57:51 Page 23

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EXHIBIT A 

Case: 19-30088 Doc# 4774 Filed: 11/15/19 Entered: 11/15/19 15:57:51 Page 24

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 Exhibit A – California State Agency Claims in Listed in Notice with Proof of Claim Numb

1 

Entity Fire(s) Alleged Damages 

Alleged Claim Amount

Proof of ClaiNumber 

California Department of Developmental Services 

Camp, NunsNorrbom 

Evaluation and care of individuals with developmental disabilities and property damage 

$5,091,429.65 73262, 

as amended 

California Department of Forestry and Fire Protection 

415*1 Suppression, 

administrative, accounting and investigation costs 

$6,043.70

(actual claim 

amount is 

$6,043.75)

77581 

California Department of Forestry and Fire Protection 

Almond* Suppression, 

administrative, accounting and investigation costs 

$20,546.16 77030 

California Department of Forestry and Fire Protection 

Atlas, Adobe, Norrbom, Nuns, Partrick, Pocket, Pressley, Pythian/Oakmont 

Suppression, administrative, accounting and investigation costs 

$117,504,408.91 77897 

California Department of Forestry and Fire Protection 

Benson* Suppression, 

administrative, accounting and investigation costs 

$125,730.70 77538 

California Department of Forestry and Fire Protection 

Bissett* Suppression, 

administrative, accounting and investigation costs 

$1,685.80 79403 

1 Fires marked with an “*” are not included in the definition of “Wildfires” that are subject to the Estimation Mo

Case: 19-30088 Doc# 4774 Filed: 11/15/19 Entered: 11/15/19 15:57:51 Page 

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 Exhibit A – California State Agency Claims in Listed in Notice with Proof of Claim Numb

2 

Entity Fire(s) Alleged Damages 

Alleged Claim Amount

Proof of ClaiNumber 

California Department of Forestry and Fire Protection 

Blue Suppression, 

administrative, accounting and investigation costs 

$172,621.03 75665 

California Department of Forestry and Fire Protection 

Butte Suppression, 

administrative, accounting and investigation costs 

$104,545,284.20 79729 

California Department of Forestry and Fire Protection 

Camp Suppression, 

administrative, accounting and investigation costs 

$109,506,276.63 78467 

California Department of Forestry and Fire Protection 

Cascade, La Porte, Lobo and McCourtney Suppression, administrative, 

accounting and investigation costs 

$11,224,238.65 77727 

California Department of Forestry and Fire Protection 

Cienega* Suppression, 

administrative, accounting and investigation costs 

$29,000,000.00

(actual claim 

amount is 

$2,900,000.00)

76888 

California Department of Forestry and Fire Protection 

Corrine* Suppression, 

administrative, accounting and investigation costs 

$9,222,550.71 77661 

California Department of Forestry and Fire Protection 

Country* Suppression, 

administrative, accounting and investigation costs 

$79,985.64 78866 

Case: 19-30088 Doc# 4774 Filed: 11/15/19 Entered: 11/15/19 15:57:51 Page 

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 Exhibit A – California State Agency Claims in Listed in Notice with Proof of Claim Numb

3 

Entity Fire(s) Alleged Damages 

Alleged Claim Amount

Proof of ClaiNumber 

California Department of Forestry and Fire Protection 

Harney* Suppression, 

administrative, accounting and investigation costs 

$5,162.11 79602 

California Department of Forestry and Fire Protection 

Honey Suppression, 

administrative, accounting and investigation costs 

$1,104,743.07 77667 

California Department of Forestry and Fire Protection 

N/A Post-petition 

attorney fees 

$82,857.25

(actual claim 

amount is 

$82,857.00)

65505 

California Department of Forestry and Fire Protection 

Northridge* Suppression, 

administrative, accounting and investigation costs 

$4,235.29 77586 

California Department of Forestry and Fire Protection 

Parkfield* Suppression, 

administrative, accounting and investigation costs 

$578,375.16 77745 

California Department of Forestry and Fire Protection 

Saddle* Suppression, 

administrative, accounting and investigation costs 

$28,347.48 77564 

California Department of Forestry and Fire Protection 

Sawmill* Suppression, 

administrative, accounting and investigation costs 

$3,524,693.08 79338 

Case: 19-30088 Doc# 4774 Filed: 11/15/19 Entered: 11/15/19 15:57:51 Page 

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 Exhibit A – California State Agency Claims in Listed in Notice with Proof of Claim Numb

4 

Entity Fire(s) Alleged Damages 

Alleged Claim Amount

Proof of ClaiNumber 

California Department of Forestry and Fire Protection 

Soda* Suppression, 

administrative, accounting and investigation costs 

$40,426.77 77678 

California Department of Forestry and Fire Protection 

Sulfur Suppression, 

administrative, accounting and investigation costs 

$2,925,443.59 79752 

California Department of Forestry and Fire Protection 

Table* Suppression, 

administrative, accounting and investigation costs 

$109,753.52 77595 

California Department of Forestry and Fire Protection 

Zenon* Suppression, 

administrative, accounting and investigation costs 

$174,341.81 77572 

California Department of Parks and Recreation 

Camp Supplies $14,914.95 NOT FILED 

California Department of Parks and Recreation 

Camp Event permit for 

power restoration 

$4,900.00 79533 

California Department of Parks and Recreation 

Camp Mitigation labor $5,691.33 77861 

California Department of Parks and Recreation 

Camp Voyager cost for 

fuel used for mitigation 

$235.62 61514 

Case: 19-30088 Doc# 4774 Filed: 11/15/19 Entered: 11/15/19 15:57:51 Page 

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 Exhibit A – California State Agency Claims in Listed in Notice with Proof of Claim Numb

5 

Entity Fire(s) Alleged Damages 

Alleged Claim Amount

Proof of ClaiNumber 

California Department of Parks and Recreation 

Camp Labor costs $122,102.52 77696 

California Department of Parks and Recreation 

Camp Travel expenses for 

employees 

$3,407.08 60117 

California Department of Parks and Recreation 

Nuns and Tubbs Loss of revenue at 

State Parks that were closed as a result of the fires 

$225,000.00 60322, 

as amended 

California Department of Parks and Recreation 

Nuns and Tubbs Fire rehabilitation $1,025,000.00 60103 

California Department of Parks and Recreation 

Nuns and Tubbs Property damage $8,580,898.00 79781, 

as amended 

California Department of Parks and Recreation 

Nuns and Tubbs Staff costs for 

property protection, safety, staffing and field patrols 

$1,029,600.00, 

amended to 

$748,321.00

77009, 

as amended 

California Department of Toxic Substances Control 

Butte, Camp, Cascade, Laporte, Lobo, McCourtney, Redwood Valley and Sulphur 

Environmental obligations and liabilities 

$7,166,391.29 77351 

2 With respect to the Debtors’ designation of unliquidated claims in connection with the Estimation Motion onl

Agencies do not object to certain designations solely as set forth in this response. The California State Agencies respect to such claims, including related to the allowance or disallowance and the determination of the amounts t

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 Exhibit A – California State Agency Claims in Listed in Notice with Proof of Claim Numb

6 

Entity Fire(s) Alleged Damages 

Alleged Claim Amount

Proof of ClaiNumber 

California Department of Transportation 

Camp Emergency 

response, cleanup and repairs of infrastructure 

$217,044,048.00 68782 

California Department of Transportation 

North Bay Fire Emergency 

response, cleanup and repairs of infrastructure 

$7,587,178.97 72321 

California Department of Water Resources 

N/A**3 Bond costs charged 

to PG&E customers 

Additional Funds 78143, 

as amended 

by 66196 

California Governor's Office of Emergency Services 

Butte Public assistance $107,737,360 79429, 

as amended 

California Governor's Office of Emergency Services 

Camp Public assistance $2,313,479,642 79398, 

as amended 

California Governor's Office of Emergency Services 

North Bay Fires Public assistance $281,230,588 77624, 

as amended 

California State University, Chico 

Camp Property damage, 

loss of income, emergency operation center costs and labor 

t

$273,460.26 79746 

3 This proof of claim does not relate to Wildfires. 

Case: 19-30088 Doc# 4774 Filed: 11/15/19 Entered: 11/15/19 15:57:51 Page 

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 Exhibit A – California State Agency Claims in Listed in Notice with Proof of Claim Numb

7 

Entity Fire(s) Alleged Damages 

Alleged Claim Amount

Proof of ClaiNumber 

Department of Veterans Affairs of the State of California 

Camp, Butte and Nuns 

Property damage and debris removal 

$10,878,747.41 79878 

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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 November 15, 2019, I served the within document: 

RESPONSE OF THE CALIFORNIA STATE AGENCIES TO DEBTORS’ NOTICE

OF DESIGNATION OF CLAIMS FILED BY THE STATE OF CALIFORNIA AS

UNLIQUIDATED AND SUBJECT TO ESTIMATION UNDER SECTION 502(c)

OF THE BANKRUPTCY CODE [DOCKET NO. 4553]

By Electronic Service only via CM/ECF. 

/s/ Sabrina M. Cisneros

Sabrina M. Cisneros 

Case: 19-30088 Doc# 4774 Filed: 11/15/19 Entered: 11/15/19 15:57:51 Page 32

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