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 require the commission to cause an assessment to be completed by no later than July 1, 2018, conducted by an independent 3rd party, selected as specified, of the adverse and beneficial economic impacts, and net economic effects, that could occur, and of potential ways for the state and local jurisdictions to mitigate the adverse economic impact, if the Diablo Canyon Units 1 and 2 powerplant were to temporarily or permanently shut down before the powerplant’s current operating licenses expire or if the Pacific Gas and Electric Company were to decide not to pursue license renewal.
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 712.5 is added to the Public Utilities
2Code, to read:
(a) (1) The commission shall cause an assessment to
4be completed by no later than July 1, 2018, of the adverse and
5beneficial economicbegin delete impactsend deletebegin insert impacts, and the net economic effects,end insert
6 for thebegin delete region surrounding theend delete County of San Luisbegin delete Obispo, and the begin insert Obispo and the surrounding
7net economic effects on that region,end delete
8
regions,end insert that could occur if the Diablo Canyon Units 1 and 2
9powerplant were to temporarily or permanently shut down before
10the powerplant’s current operating licenses from the Nuclear
11Regulatory Commission expire or if the Pacific Gas and Electric
12Company were to decide not to pursue license renewal. The
13assessment shall include a review, as described in paragraph (4)
14of subdivision (b), of potential actions for the state and local
15jurisdictions to consider in order to mitigate the adverse economic
16impact of a shutdown.
17(2) The assessment shall be conducted by an independent third
18
party, selected in accordance with paragraph (1) of subdivision
19(c).
20(b) The assessment shall consist of, but not be limited to, all of
21the following:
22(1) Estimates of any changes in local tax revenues, changes in
23workforce populations, changes in indirect or induced economies,
24and potential impacts to ratepayers from a shutdown.
25(2) A review of the economic impacts that affected the region
26surrounding the San Onofre Nuclear Generating Station after it
27was decommissioned by the Southern California Edison Company
P3 1and of the relevant decommissioning plans of the San Onofre
2Nuclear Generating Station.
3(3) A review of regions in the
United States similar tobegin delete the region the County of San Luis Obispobegin insert and the surrounding
4surroundingend delete
5regionsend insert that have experienced the decommissioning of a nuclear
6powerplant and of the resulting economic impacts of the
7decommissioning on those regions.
8(4) Identification of any contingency plans that could mitigate
9the adverse economic impact of a shutdown to state and local
10jurisdictions, the local workforce, and entities receiving enhanced
11tax revenue.
12(c) (1) The commission shall issue a request for proposal for
13the independent third party that will ensure that the selected party
14is able
to make an independent review and analysis of the data
15described in subdivision (b).
16(2) The independent third party shall consult with the Board of
17Supervisors of the County of San Luis Obispo, the governing board
18of the San Luis Coastal Unified School District, the Center for
19Labor Research and Education at the University of California at
20Berkeley, the regional economic development group of the County
21of San Luis Obispo, and other relevant governmental entities or
22community-based organizations to assist in an accurate assessment
23of the economic and workforce impacts of a shutdown.
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.
The Legislature finds and declares that a special law
29is necessary and that a general law cannot be made applicable
30within the meaning of Section 16 of Article IV of the California
31Constitution because, currently, the Diablo Canyon Units 1 and 2
32powerplant, owned and operated by the Pacific Gas and Electric
33Company, is the last operating nuclear powerplant in California
34and its continued operation is uncertain as Diablo Canyon Units
351 and 2 are only authorized to operate until 2024 and 2025,
36respectively. Local communities were ill-prepared and given no
37notice after the sudden closure of the San Onofre Nuclear
38Generating Station was announced on June 7, 2013, and the state
39is still
responding, at significant cost, to the sudden, permanent,
40and unexpected loss of baseline electricity. Therefore, an
P4 1assessment is needed on the economic impact specific to a
2shutdown of the Diablo Canyon Units 1 and 2 powerplant to
3provide the state, and local communities, with valuable and
4necessary information to plan and prepare for thatbegin delete circumstance, begin insert circumstance.end insert
5if needed.end delete
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