Amended in Senate March 14, 2016

Senate BillNo. 968


Introduced by Senator Monning

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(Coauthor: Senator Jackson)

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(Coauthor: Assembly Member Achadjian)

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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 amended, 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,begin insert no later than July 1, 2018,end insert conducted by an independentbegin delete thirdend deletebegin insert 3rdend insert party,begin insert selected as specified,end insert of the adverse economic impact that couldbegin delete occurend deletebegin insert occur, and of potential ways to mitigate that adverse economic impact,end insert if the Diablo Canyon Units 1 and 2 powerplant were to temporarily or permanently shut down before the powerplant’s current operating licensesbegin delete expire.end deletebegin insert expire or if the Pacific Gas and Electric Company were to decideend insertbegin insert not to pursue license renewal.end insert The bill would require the commission to consider any further assessments or reviews needed that could assist local efforts to prepare for abegin delete suddenend delete 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:

P2    1

SECTION 1.  

Section 712.5 is added to the Public Utilities
2Code
, to read:

3

712.5.  

(a) begin insert(1)end insertbegin insertend insert The commission shall require the Pacific Gas
4and Electric Company to submit anbegin delete assessmentend deletebegin insert assessment, no
5later than July 1, 2018,end insert
of the adverse economic impact for the
6region surrounding the County of San Luis Obispo that could occur
7if the Diablo Canyon Units 1 and 2 powerplant were to temporarily
8or permanently shut down before the powerplant’s current
9operating licenses from the Nuclear Regulatory Commissionbegin delete expire.
10Theend delete
begin insert expire or if the Pacific Gas and Electric Company were to
11decide not to pursue license renewal. The assessment shall include
12a review, as described in paragraph (4) of subdivision (b), of
13potential actions for the state and local jurisdictions to consider
14in order to mitigate the adverse economic impact of a shutdown.end insert

15begin insert(2)end insertbegin insertend insertbegin insertTheend insert assessment shall be conducted by an independent third
16begin delete party whose independence and qualifications can reasonably be
17verified by the commission.end delete
begin insert party, selected in accordance with
18paragraph (1) of subdivision (c).end insert

19(b) The assessment shall consist of, but not be limited to, all of
20the following:

21(1) Estimates of any decreases in local tax revenues, decreases
22in workforce populations, losses in indirect or induced economies,
23and potential impacts to ratepayers from an early shutdown.

24(2) A review of the economic impacts that affected the region
25surrounding the San Onofre Nuclear Generating Station after it
26was decommissioned by the Southern California Edison Company
27and of the relevant decommissioning plans of the San Onofre
28Nuclear Generating Station.

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P3    1(3) A review of regions in the United States similar to the region
2surrounding the County of San Luis Obispo that have experienced
3the decommissioning of a nuclear powerplant and of the resulting
4adverse economic impacts of the decommissioning on those
5regions.

end insert
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6(3)

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7begin insert(4)end insert Identification of any contingency plans that could mitigate
8the adverse economic impact ofbegin delete an earlyend deletebegin insert aend insert shutdown to state and
9local jurisdictions, the local workforce, and entities receiving
10enhanced tax revenue.

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11(c) The

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begin insert

12(c) (1) The commission shall require the Pacific Gas and
13Electric Company to issue a request for proposal for the
14independent third party that will ensure that the selected party is
15able to make an independent review and analysis of the data
16described in subdivision (b). The commission shall make the final
17selection of the independent third party from the list of qualified
18bidders.

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19begin insert(2)end insertbegin insertend insertbegin insertTheend insert independent third party shall consult with the Board of
20Supervisors of the County of San Luis Obispo, the governing board
21of the San Luis Coastal Unified School District, and other relevant
22governmental entities to assist in an accurate assessment of
23decreases in local tax revenues.

24(d) The commission shall make the assessment publicly available
25on its Internet Web site and place it as an item on the agenda at
26the next commission meeting after the assessment is made publicly
27available for purposes of collecting and recording public comment,
28and hold any subsequent public meetings as necessary.

29(e) The commission shall consider any further assessments or
30reviews needed that could assist local efforts in the region
31surrounding the County of San Luis Obispo to prepare for abegin delete suddenend delete
32 closure of the Diablo Canyon Units 1 and 2 powerplant and make
33those considerations and findings publicly available.

34

SEC. 2.  

The Legislature finds and declares that a special law
35is necessary and that a general law cannot be made applicable
36within the meaning of Section 16 of Article IV of the California
37Constitution because, currently, the Diablo Canyon Units 1 and 2
38powerplant, owned and operated by the Pacific Gas and Electric
39Company, is the last operating nuclear powerplant in California
40and its continued operation is uncertain as Diablo Canyon Units
P4    11 and 2 are only authorized to operate until 2024 and 2025,
2respectively. Local communities were ill-prepared and given no
3notice after the sudden closure of the San Onofre Nuclear
4Generating Station was announced on June 7, 2013, and the state
5is still responding, at significant cost, to the sudden, permanent,
6and unexpected loss of baseline electricity. Therefore, an
7assessment is needed from the Pacific Gas and Electric Company
8on the adverse economic impact specific tobegin delete an early shut downend deletebegin insert a
9shutdownend insert
of the Diablo Canyon Units 1 and 2 powerplant to
10provide the state, and local communities, with valuable and
11necessary information to plan and prepare for that circumstance,
12if needed.



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