BILL NUMBER: SB 968	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Monning

                        FEBRUARY 8, 2016

   An act to add Section 712.5 to the Public Utilities Code, relating
to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 968, as introduced, Monning. Diablo Canyon Units 1 and 2
powerplant.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
The Diablo Canyon nuclear powerplant, composed of reactor Units 1 and
2, is operated by the Pacific Gas and Electric Company in the County
of San Luis Obispo. Existing law requires the commission to convene,
or continue, until August 26, 2025, an independent peer review panel
to conduct an independent review of enhanced seismic studies and
surveys of the Diablo Canyon Units 1 and 2 powerplant, including the
surrounding areas of the facility and areas of nuclear waste storage.

   This bill would direct the commission to require the Pacific Gas
and Electric Company to submit an assessment, conducted by an
independent third party, of the adverse economic impact that could
occur if the Diablo Canyon Units 1 and 2 powerplant were to
temporarily or permanently shut down before the powerplant's current
operating licenses expire. The bill would require the commission to
consider any further assessments or reviews needed that could assist
local efforts to prepare for a sudden closure of the Diablo Canyon
Units 1 and 2 powerplant.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the Pacific Gas and Electric
Company.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 712.5 is added to the Public Utilities Code, to
read:
   712.5.  (a) The commission shall require the Pacific Gas and
Electric Company to submit an assessment of the adverse economic
impact for the region surrounding the County of San Luis Obispo that
could occur if the Diablo Canyon Units 1 and 2 powerplant were to
temporarily or permanently shut down before the powerplant's current
operating licenses from the Nuclear Regulatory Commission expire. The
assessment shall be conducted by an independent third party whose
independence and qualifications can reasonably be verified by the
commission.
   (b) The assessment shall consist of, but not be limited to, all of
the following:
   (1) Estimates of any decreases in local tax revenues, decreases in
workforce populations, losses in indirect or induced economies, and
potential impacts to ratepayers from an early shutdown.
   (2) A review of the economic impacts that affected the region
surrounding the San Onofre Nuclear Generating Station after it was
decommissioned by the Southern California Edison Company and of the
relevant decommissioning plans of the San Onofre Nuclear Generating
Station.
   (3) Identification of any contingency plans that could mitigate
the adverse economic impact of an early shutdown to state and local
jurisdictions, the local workforce, and entities receiving enhanced
tax revenue.
   (c) The independent third party shall consult with the board of
supervisors of the County of San Luis Obispo, the governing board of
the San Luis Coastal Unified School District, and other relevant
governmental entities to assist in an accurate assessment of
decreases in local tax revenues.
   (d) The commission shall make the assessment publicly available on
its Internet Web site and place it as an item on the agenda at the
next commission meeting after the assessment is made publicly
available for purposes of collecting and recording public comment,
and hold any subsequent public meetings as necessary.
   (e) The commission shall consider any further assessments or
reviews needed that could assist local efforts in the region
surrounding the County of San Luis Obispo to prepare for a sudden
closure of the Diablo Canyon Units 1 and 2 powerplant and make those
considerations and findings publicly available.
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because, currently, the Diablo Canyon Units 1 and 2 powerplant, owned
and operated by the Pacific Gas and Electric Company, is the last
operating nuclear powerplant in California and its continued
operation is uncertain as Diablo Canyon Units 1 and 2 are only
authorized to operate until 2024 and 2025, respectively. Local
communities were ill-prepared and given no notice after the sudden
closure of the San Onofre Nuclear Generating Station was announced on
June 7, 2013, and the state is still responding, at significant
cost, to the sudden, permanent, and unexpected loss of baseline
electricity. Therefore, an assessment is needed from the Pacific Gas
and Electric Company on the adverse economic impact specific to an
early shut down of the Diablo Canyon Units 1 and 2 powerplant to
provide the state, and local communities, with valuable and necessary
information to plan and prepare for that circumstance, if needed.