BILL ANALYSIS
AB 42
Page 1
ASSEMBLY THIRD READING
AB 42 (Blakeslee)
As Amended June 1, 2009
Majority vote
UTILITIES AND COMMERCE 13-0 NATURAL
RESOURCES 7-0
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|Ayes:|Fuentes, Duvall, Tom |Ayes:|Skinner, Gilmore, |
| |Berryhill, Blakelsee, | |Brownley, Chesbro, Hill, |
| |Buchanan, Carter, Fong, | |Huffman, Logue |
| |Furutani, Krekorian, | | |
| |Skinner, Smyth, Swanson, | | |
| |Torrico | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 12-0
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|Ayes:|De Leon, Ammiano, Charles | | |
| |Calderon, Davis, Fuentes, | | |
| |Hall, John A. Perez, | | |
| |Price, Skinner, Solorio, | | |
| |Torlakson, Krekorian | | |
|-----+---------------------------+---+--------------------------|
| | | | |
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SUMMARY : Requires Pacific Gas and Electric Company (PG&E) to
conduct seismic fault studies or surveys in the vicinity of the
Diablo Canyon nuclear powerplant in order to maintain reliable
operation of the electrical grid and mitigate impacts to customer
rates that could result from a seismic event. Specifically, this
bill:
1)Requires PG&E to, in furtherance of the specific recommendations
made by the California Energy Commission (CEC), to conduct
seismic fault studies or surveys, including three-dimensional
geophysical seismic reflection mapping, for the area in the
vicinity of Diablo Can yon nuclear powerplant.
2)Provides the reason for the study is to maintain reliable
operation of the electrical grid and mitigate impacts to customer
rates that could result from a seismic event.
3)Requires PG&E to seek funding for the studies or surveys in its
application to the California Public Utilities Commission (PUC)
for license renewal of the Diablo Canyon nuclear powerplant in
AB 42
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compliance with a PUC decision.
4)Authorizes CEC, in consultation with the California Geologic
Survey and the Seismic Safety Commission, to participate in
development of the study or survey designs, and requires CEC, in
conjunction with those other entities, to conduct or facilitate a
peer review of the studies or surveys with 120 days of receipt
from PG&E.
5)Requires CEC to include the study or survey findings and
recommendations in its integrated energy policy report.
6)Requires PG&E to be responsible for funding all costs associated
with a peer review of any studies or surveys conducted pursuant
to 1) above.
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7)Requires PUC to expedite issuance of its decision approving the
recovery of costs so that the decision is made within 120 days of
filing the application, and requires PUC to allow PG&E to fully
recover in rates all reasonable costs associated with the studies
or surveys and peer review.
FISCAL EFFECT : According to the Assembly Appropriations Committee:
1)CEC will incur one-time special fund costs for contracts of
$50,000 for the peer review.
2)Minor absorbable costs to PUC.
COMMENTS : The state's two operating nuclear plants, PG&E-owned
Diablo Canyon and Southern California Edison-owned (SCE) San Onofre
Nuclear Generating Station (SONGS), account for 12% of the state's
electricity supply. Each plant faces uncertain amount of damages
due to earthquakes erupting directly below the plants, or ground
motion resulting from a nearby earthquake rupture.
AB 1632 (Blakeslee), Chapter 722, Statutes of 2006, directed CEC to
determine the potential vulnerability of the state's largest
generating plants due to aging or a major seismic event, assess the
impacts that such a disruption would have on system reliability,
public safety, and the economy, and evaluate other major issues
related to the future role of these plants in the state's energy
portfolio in order to be ready should a disruption occur. CEC
recommended that a high quality three-dimensional geophysical
seismic reflection mapping should be conducted.
On November 21, 2008, PG&E announced that it had discovered an
additional earthquake fault several miles offshore from their
Diablo Canyon nuclear powerplant. Another known fault resides just
about a half a mile offshore from Diablo Canyon. The discovery of
the second fault raises new questions about the seismic risks of
Diablo Canyon; in particular the plant's vulnerability to a major
disruption in electricity generation due to an earthquake, which
could impact the reliability of the state's energy supply and
greatly increase costs to ratepayers.
PG&E believes the three-dimensional geophysical seismic reflection
mapping is not necessary given the two-dimensional mapping it is
currently doing. This bill does not compel PG&E to do such
mapping, but instead requires PG&E to conduct those studies or
surveys necessary to maintain reliable operation of the electrical
grid and mitigate impacts to customer rates that could result from
a seismic event.
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The Seismic Vulnerability Advisory Team, comprised of experts from
CEC, California Geologic Survey, and Seismic Safety Commission,
provided technical review and input during the development of the
AB 1632 report. This bill would permit those parties to
participate in the development of the study and conduct or
facilitate a peer review of the study or survey.
Diablo Canyon and SONGS have been operating for roughly half of
their 40-year initial license periods. PG&E sought $16.8 million
in ratepayer funds (which included $5 million for legal and
technical staff to counter public intervention against extending
the operating license) to explore the feasibility of extending its
licenses for another 20 years until the early to mid-2040s.
(Diablo Canyon's operating licenses expire in 2024 and 2025, while
SONGS operating licenses expire in 2022). This bill requires PG&E
to seek funding for the studies or surveys in its application to
the PUC to extend the nuclear powerplants' operating license for
the following 20 years.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083 FN:
0001260