BILL ANALYSIS Ó
SB 968
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SENATE THIRD READING
SB
968 (Monning)
As Amended August 17, 2016
2/3 vote. Urgency
SENATE VOTE: 36-0
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities & |15-0 |Gatto, Patterson, | |
|Commerce | |Burke, Chávez, Dahle, | |
| | |Eggman, Cristina | |
| | |Garcia, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Hadley, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Ting, | |
| | |Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |15-0 |Gonzalez, Bigelow, | |
SB 968
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| | |Bloom, Bonilla, | |
| | |Bonta, Chang, Eggman, | |
| | |Eduardo Garcia, | |
| | |Jones, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Weber, Wood, McCarty | |
| | | | |
| | | | |
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SUMMARY: Requires the California Public Utilities Commission
(CPUC) to cause an assessment of the economic impacts, for the
County of San Luis Obispo and the surrounding regions that could
occur if or when the Diablo Canyon Nuclear Powerplant
temporarily or permanently shuts down. Specifically, this bill:
1)Requires the CPUC to cause an assessment to be completed by
July 1, 2018, of the adverse and beneficial economic impacts,
and the net economic effects, for the County of San Luis
Obispo and the surrounding regions, that could occur if the
Diablo Canyon Units 1 and 2 powerplant were to temporarily or
permanently shut down before the power plant's current
operating licenses or when it closes upon the expiration of
its current licenses.
2)Requires the assessment to include a specified review of
potential actions for the state and local jurisdictions to
consider in order to mitigate the adverse economic impact of a
shutdown.
3)Requires the assessment to be conducted by an independent
third party, as specified.
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4)Requires the assessment to consist of, but not be limited to,
all of the following:
a) Estimate of any changes in local tax revenues, changes
in workforce populations, changes in indirect or induced
economies, and potential impacts to ratepayers from a
shutdown;
b) A review of the economic impacts that affected the
region surrounding the San Onofre Nuclear Generating
Station (SONGS) after it was decommissioned by the Southern
California Edison Company and of the relevant
decommissioning plans of SONGS;
c) A review of the regions in the United States similar to
the region surrounding the County of San Luis Obispo that
have experienced the decommissioning of a nuclear
powerplant and of the resulting economic impacts of the
decommissioning on those regions; and
d) Identification of any contingency plans that could
mitigate the adverse economic impact of a shutdown to state
and local jurisdictions, the local workforce, and entities
receiving enhanced tax revenue.
5)Requires the independent third party to consult with the Board
of Supervisors of the County of San Luis Obispo, the governing
board of the San Luis Coastal Unified School District, the
Center for Labor Research and Education at the University of
California, Berkeley, the regional economic development group
of the County of San Luis Obispo, and other relevant
governmental entities or community-based organizations to
assist in an accurate assessment of the economic and workforce
impacts of a shutdown.
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6)Requires the CPUC to make the assessment publically available
on its Internet Web site, distribute copies to relevant state
and local jurisdictions, and convene a public forum in the
County of San Luis Obispo on the findings and recommendations
of the assessment.
7)Appropriates $400,000 from the nuclear decommissioning trust
funds to be used for additional staffing to urgently
effectuate the specified third-party assessment.
8)Includes an urgency clause allowing the provisions of this
bill to take effect immediately upon enactment.
FISCAL EFFECT: According to the Assembly Appropriation
Committee, this bill appropriates $400,000 to the CPUC to fund
the assessment and hire limited-term staff to provide oversight.
In addition, the CPUC estimates it will require $250,000 to
contract with an independent third party to perform the
assessment and an additional $170,000 to provide oversight.
COMMENTS:
1)Background: The Diablo Canyon Powerplant is a two-unit
nuclear powerplant operated by the Pacific Gas and Electric
Company (PG&E), and is the only remaining operating nuclear
powerplant in California. According to PG&E, the powerplant
produces approximately 20% of PG&E's overall electricity
production and 10% of California's energy load. The
powerplant is licensed by the federal Nuclear Regulatory
Commission (NRC) to operate until 2024 and 2025, for units 1
and 2. In June 2016, PG&E announced that it would not renew
its license for the Diablo Canyon Powerplant.
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2)Diablo's Economic Impacts on the Region: According to the
author, having unbiased and accurate economic data for local
planning and discussion is valuable because the region
surrounding the Diablo Canyon Powerplant is heavily reliant on
the plant. Arguably, shuttering of Diablo Canyon would have a
major impact on the economies of San Luis Obispo and its
surrounding regions. The loss of jobs resulting from the
closure of Diablo Canyon potentially would have a ripple
effect on the business and economic health of the region.
This bill requires the CPUC to cause an assessment to be
completed by July 1, 2018, of the adverse and beneficial
economic impacts, and the net economic effects, for the County
of San Luis Obispo and the surrounding regions, that could
occur if or when the Diablo Canyon Units 1 and 2 powerplant
temporarily or permanently shuts down. In addition, this bill
requires the assessment to be conducted by an independent
third party, and requires the independent third party to
consult with specified entities. Furthermore, this bill also
requires the assessment to include a review of potential
actions for the state and local jurisdiction to consider in
order to mitigate the adverse economic impact of a shut down.
This bill appropriates $400,000 from the nuclear
decommissioning trust funds to be used for additional staffing
to urgently effectuate the specified third-party assessment.
Analysis Prepared by:
Edmond Cheung / U. & C. / (916) 319-2083 FN:
0004383
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