BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 657|
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THIRD READING
Bill No: SB 657
Author: Monning (D), et al.
Amended: 6/23/15
Vote: 27 - Urgency
SENATE ENERGY, U. & C. COMMITTEE: 10-0, 6/16/15
AYES: Hueso, Fuller, Cannella, Hertzberg, Hill, Lara, Leyva,
McGuire, Morrell, Wolk
NO VOTE RECORDED: Pavley
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Diablo Canyon Units 1 and 2: enhanced seismic
studies and review: independent peer review panel
SOURCE: Author
DIGEST: This bill requires the California Public Utilities
Commission (CPUC) to convene, or continue, until August 25,
2025, the independent peer review panel (IPRP) to review Pacific
Gas and Electric's (PG&E) seismic studies of PG&E's Diablo
Canyon Power Plant, a nuclear facility on the Central Coast.
ANALYSIS:
Existing law:
1)Requires the California Energy Commission (CEC) to compile and
assess scientific studies to determine the potential
vulnerability of the state's largest generating plants due to
aging or a major seismic event, assess the potential state and
local costs associated with accumulating waste at California's
nuclear power plants, and adopt the assessment by November 1,
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Page 2
2008. (Public Resources Code §25303)
2)Requires all charges demanded or received by any public
utility for any product or commodity furnished or any service
rendered be just and reasonable, and further requires every
public utility to furnish and maintain such adequate,
efficient, just, and reasonable service, instrumentalities,
equipment, and facilities as are necessary to promote the
safety, health, comfort, and convenience of its patrons,
employees, and the public. (Public Utilities Code §451)
This bill:
1)Requires the CPUC to convene, or continue, until August 25,
2025, the IPRP to conduct an independent review of PG&E's
Diablo Canyon Units 1 and 2 powerplant, including the
surrounding areas of the facility and areas of nuclear waste
storage.
2)Requires the IPRP to contract with CEC, the California
Geological Survey, the Coastal Commission, the Alfred E.
Alquist Seismic Safety Commission, the Office of Emergency
Services, and the County of San Luis Obispo to participate on
the panel.
Background
Diablo Canyon - nuclear power on the seismically active Central
Coast. Diablo Canyon Power Plant is a two-unit nuclear
powerplant located in San Luis Obispo County. The power
production facility and support operations sit on approximately
900 acres adjacent to the Pacific Ocean between Avila Beach and
Montano del Oro State Park. According to PG&E, the plant
produces approximately 10 percent of California's energy load
and about 20 percent of PG&E's overall electricity production.
The powerplant is licensed by the federal Nuclear Regulatory
Commission (NRC) to operate until 2024 and 2025, respectively,
for units 1 and 2.
Since the initial siting of Diablo Canyon, PG&E and the state
have been aware that the plant lies within a seismically active
zone. Recently, seismologists have become aware of the
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Page 3
possibility of an earthquake directly beneath the powerplant.
In 2008, in response to statutory direction, the CEC released
its assessment of the potential vulnerability of Diablo Canyon
to a major disruption due to a seismic event
[http://www.energy.ca.gov/2008publications/CEC-100-2008-008/CEC-1
00-2008-008-CMF.PDF]. As part of that assessment, the CEC
recommended that PG&E use three-dimensional geophysical seismic
reflection mapping and other advanced techniques to supplement
ongoing seismic research programs; and that CEC and other
appropriate state agencies evaluate whether these studies should
be required as part of the Diablo Canyon license renewal
feasibility studies for the CPUC. Soon after, the CPUC directed
PG&E to incorporate the recommendations from the CEC report into
its feasibility study to extend the operating licenses of Diablo
Canyon.
In 2009, PG&E filed an application with NRC to extend Diablo
Canyon's operation by 20 years. The licensing decision rests
wholly with the NRC. However, the CPUC will decide the
reasonableness of PG&E's request to recover the costs for
continued operation of the powerplant.
In 2010, the CPUC formally decided to convene, via contract, its
IPRP, composed of itself, the CEC, the California Geological
Survey, the California Coastal Commission, and the California
Seismic Safety Commission. The IPRP would conduct an independent
review of PG&E's seismic studies to enhance CPUC's ability to
assess the reasonableness of Diablo Canyon's proposed license
renewal.
The IPRP has conducted several reports assessing PG&E's seismic
studies of Diablo Canyon. Following the 2011 earthquake in
Japan that severely damaged the Fukushima Daiichi nuclear power
plant, NRC required PG&E to conduct additional, advanced seismic
studies of the area around and underneath Diablo Canyon. PG&E
requested that NRC delay its decision on PG&E's relicensing
request so that PG&E could conduct the seismic studies. The NRC
agreed. The contract for the IPRP expires on November 30, 2015.
PG&E's advanced seismic studies are ongoing. They will likely
continue past 2015.
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Related Legislation
AB 361 (Achadjian, 2015) extends, until July 1, 2024, the method
for funding state and local costs for emergency service
activities associated with a nuclear powerplant, with respect to
a utility operating a nuclear powerplant with a generating
capacity of 50 megawatts or more, thereby extending an amount,
as specified, available for disbursement for local costs for the
Diablo Canyon site. The bill is currently under consideration
by the Senate Floor.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, approximate
annual costs of $200,000 until FY 2025-26 to the Public
Utilities Reimbursement Account (special) for IPRP contract
costs. All costs are anticipated to be reimbursed by PG&E.
SUPPORT: (Verified8/28/15)
Alliance for Nuclear Responsibility
California Coastal Commission
California Public Utilities Commission
County of San Luis Obispo
County of Santa Barbara
Pacific Gas and Electric Company
Physicians for Social Responsibility-Los Angeles
Physicians for Social Responsibility-San Francisco Area Chapter
San Luis Obispo Mothers of Peace
Sierra Club California
Sierra Club-Santa Lucia Chapter
Several individuals
OPPOSITION: (Verified8/28/15)
None received
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ARGUMENTS IN SUPPORT: The author contends the Legislature needs
to act to ensure the IPRP exists throughout Diablo Canyon's
licensure so that it may continue its independent, impartial,
expert review of PG&E's seismic studies.
Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
8/30/15 19:48:50
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