Amended in Assembly August 1, 2016

Amended in Assembly June 28, 2016

Amended in Senate May 31, 2016

Amended in Senate March 31, 2016

Amended in Senate March 14, 2016

Senate BillNo. 968


Introduced by Senator Monning

(Coauthor: Senator Jackson)

(Coauthor: Assembly Member Achadjian)

February 8, 2016


An act to add Section 712.5 to the Public Utilities Code, relating tobegin delete electricity.end deletebegin insert electricity, and making an appropriation thereforend insertbegin insert.end insert

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.begin insert Existing law establishes the Public Utilities Commission Utilities Reimbursement Account and authorizes the commission to annually determine a fee to be paid by every public utility providing service directly to customers or subscribers and subject to the jurisdiction of the commission, except for a railroad corporation.end insert

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 orbegin delete ifend deletebegin insert whenend insert the Pacific Gas and Electric Companybegin delete were to decide not to pursue license renewal.end deletebegin insert closes the powerplant upon the expiration of its current licenses. The bill would appropriate $400,000 from the account to the commission for additional staffing to urgently effectuate the third party assessment.end insert

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: begin deleteno end deletebegin insertyesend insert. 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) (1) The commission shall cause an assessment to
4be completed by no later than July 1, 2018, of the adverse and
5beneficial economic impacts, and the net economic effects, for the
6County of San Luis Obispo and the surrounding regions, that could
7occur if the Diablo Canyon Units 1 and 2 powerplant were to
8temporarily or permanently shut down before the powerplant’s
9current operating licenses from the Nuclear Regulatory
10Commission expire orbegin delete ifend deletebegin insert whenend insert the Pacific Gas and Electric
11Companybegin delete were to decide not to pursue license renewal.end deletebegin insert closes the
12powerplant upon the expiration of its current licenses.end insert
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.

P3    1(2) The assessment shall be conducted by an independent third
2 party, selected in accordance with paragraph (1) of subdivision
3(c).

4(b) The assessment shall consist of, but not be limited to, all of
5the following:

6(1) Estimates of any changes in local tax revenues, changes in
7workforce populations, changes in indirect or induced economies,
8and potential impacts to ratepayers from a shutdown.

9(2) A review of the economic impacts that affected the region
10surrounding the San Onofre Nuclear Generating Station after it
11was decommissioned by the Southern California Edison Company
12and of the relevant decommissioning plans of the San Onofre
13Nuclear Generating Station.

14(3) A review of regions in the United States similar to the
15County of San Luis Obispo and the surrounding regions that have
16experienced the decommissioning of a nuclear powerplant and of
17the resulting economic impacts of the decommissioning on those
18regions.

19(4) Identification of any contingency plans that could mitigate
20the adverse economic impact of a shutdown to state and local
21jurisdictions, the local workforce, and entities receiving enhanced
22tax revenue.

23(c) (1) The commission shall issue a request for proposal for
24the independent third party that will ensure that the selected party
25is able to make an independent review and analysis of the data
26described in subdivision (b).

27(2) The independent third party shall consult with the Board of
28Supervisors of the County of San Luis Obispo, the governing board
29of the San Luis Coastal Unified School District, the Center for
30Labor Research and Education at the University of California at
31Berkeley, the regional economic development group of the County
32of San Luis Obispo, and other relevant governmental entities or
33community-based organizations to assist in an accurate assessment
34of the economic and workforce impacts of a shutdown.

35(d) The commission shall make the assessment publicly available
36on its Internet Web begin delete site and place it as an item on the agenda at
37the next commission meeting after the assessment is made publicly
38available for purposes of collecting and recording public comment.end delete

39
begin insert site, distribute copies to relevant state and local jurisdictions, and
P4    1convene a public forum in the County of San Luis Obispo on the
2findings and recommendations of the assessment.end insert

3

SEC. 2.  

The Legislature finds and declares that a special law
4is necessary and that a general law cannot be made applicable
5within the meaning of Section 16 of Article IV of the California
6Constitution because, currently, the Diablo Canyon Units 1 and 2
7powerplant, owned and operated by the Pacific Gas and Electric
8Company, is the last operating nuclear powerplant inbegin delete California
9and its continued operation is uncertain as Diablo Canyon Units
101 and 2 are only authorized to operate untilend delete
begin insert California, and, on
11June 21, 2016, the Pacific Gas and Electric Company announced
12that it would not renew its licenses for Diablo Canyon Units 1 and
132, which are set to expire inend insert
2024 and 2025, respectively.begin insert In
14addition, a joint proposal governing the closure of the Diablo
15Canyon Units 1 and 2, which included an orderly replacement of
16electricity from generating resources that do not emit greenhouse
17gases and an employee retention severance program, was signed
18by interested parties.end insert
Local communities were ill-prepared and
19given no notice after the sudden closure of the San Onofre Nuclear
20Generating Station was announced on June 7, 2013, and the state
21is still responding, at significant cost, to the sudden, permanent,
22and unexpected loss of baseline electricity. Therefore, an
23assessment is needed on the economic impact specific to a
24shutdown of the Diablo Canyon Units 1 and 2 powerplant to
25provide the state, and local communities, with valuable and
26necessary information to plan and prepare for that circumstance.
27
begin insert The findings and recommendations made are not intended to
28interfere with or invalidate the joint proposal and can be used by
29local communities and parties to the joint proposal to provide
30further information and recommendations to minimize the local
31economic and other impacts that the planned closure may cause.end insert

32begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The sum of four hundred thousand dollars ($400,000)
33is hereby appropriated from the Public Utilities Commission
34Utilities Reimbursement Account to the Public Utilities Commission
35for additional staffing to urgently effectuate the third-party
36assessment pursuant to Section 712.5 of the Public Utilities Code.

end insert


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