BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          AB 42 -  Blakeslee                                Hearing Date:   
          July 7, 2009               A
          As Amended:         June 23, 2009            FISCAL       B
                                                                        
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                                      DESCRIPTION
           
           Current law  requires the owner of a nuclear power plant to  
          establish an externally managed, segregated fund to ensure that  
          funds are available for decommissioning of the facility when  
          necessary.

           Current law  requires the CEC to assess existing scientific  
          studies to determine the vulnerability of nuclear facilities to  
          major disruptions due to aging or a major earthquake and the  
          resulting impacts on reliability, public safety, and the  
          economy.

           This bill  requires the Pacific Gas & Electric Company (PG&E) to  
          conduct specific seismic fault studies or surveys near the  
          Diablo Canyon Nuclear Power Plant (Diablo) to ensure its  
          reliable and safe operation.  The CEC would be required to  
          conduct or facilitate a peer review of any studies or surveys  
          conducted within 120 days of receipt of the study or survey.

                                      BACKGROUND
           
          Diablo is a two-unit nuclear power plant located in San Luis  
          Obispo County.  The power production facility and support  
          operations sit on approximately 700 acres adjacent to the  
          Pacific Ocean between Avila Beach and Montano del Oro State  
          Park. In total the Diablo site includes approximately 12,000  
          acres of California coastline.
           
          Together the two units produce approximately 2,300 megawatts of  
          electricity, enough to meet the needs of 2.3 million households  
          in northern and central California.  Diablo Canyon provides  
          approximately 20 percent of the electricity delivered into the  











          PG&E service territory. Units 1 and 2 began commercial operation  
          in 1985 and 1986 and are licensed by the Nuclear Regulatory  
          Commission (NRC) to operate for a 40 year period. 

          Since the initial siting of Diablo PG&E and the state have been  
          aware that the plant lies within a seismically active zone.   
          This resulted in the establishment of PG&E's Long Term Seismic  
          Program (LTSP) which has continued to monitor and study the  
          potential impact of the zone.  After the 2003 San Simeon  
          earthquake, the epicenter of which was located approximately 35  
          miles north of the site, seismic experts have identified another  
          potential seismic hazard and the resulting possibility of an  
          earthquake directly beneath the plant. The deep geometry of  
          faults that bound the area where Diablo sits are not understood  
          sufficiently to rule out a San Simeon-type earthquake directly  
          beneath the plant. 

                                       COMMENTS

             1.   Further Study Needed  - In response to 2006 legislation  
               (AB 1632, Blakeslee, Statutes of 2006, Chapter 722) the CEC  
               studied the vulnerability of the state's operating nuclear  
               power plants to a major disruption due to a major seismic  
               event or plant aging.  Released in 2008 the CEC recommended  
               that PG&E continue its LTSP and also use threedimensional  
               geophysical seismic reflection mapping and other advanced  
               techniques to explore fault zones near Diablo Canyon which  
               is required by this bill.  The2. point is to determine  
               "whether the plant was built with sufficient design margins  
               to continue operating reliably after experiencing these  
               larger ground motions."

              3.   What About SONGS  ? - The CEC report also assessed the  
               seismic safety of the San Onofre Nuclear Generating Station  
               (SONGS).  The report recommended that Southern California  
               Edison (SCE) develop an active seismic hazards research  
               program similar to PG&E's LTSP and undertake specified  
               investigations and research.  This bill does not address  
               the SONGS plant.    SCE advises that they will have a  
               response and a plan shortly.

             4.   Study & Survey Design Participants  - This bill permits  
               the CEC to consult with the California Geologic Survey and  
               Seismic Safety Commission and requires the CEC to consult  










               with those parties in conducting a peer review of the  
               research.  An earlier version of this bill also included  
               the California Coastal Commission (CCC) which was amended  
               out of the bill in the Assembly.  The CCC opines that it  
               would be "prudent to include their participation in these  
               efforts at the outset, to ensure that the tests are  
               designed and interpreted in a manner that will be of use to  
               the CCC's future responsibilities."  The CCC is asking that  
               they be amended back into the bill.

              5.   Ratepayer Impacts  - PG&E would be permitted to fully  
               recover all costs associated with the studies and surveys  
               required in this bill from ratepayer funds. 

                                    ASSEMBLY VOTES
           
          Assembly Floor                     (75-0)
          Assembly Appropriations Committee  (12-0)
          Assembly Natural Resources Committee                            
          (7-0)
          Assembly Utilities and Commerce Committee                       
          (13-0)

                                       POSITIONS
           
           Sponsor:
           
          Author


























           Support:
           
          California Church IMPACT
          California League of Conservation Voters
          City of Morro Bay
          Clean Power Campaign
          County of San Luis Obispo
          Environment California
          Sierra Club California
          Santa Barbara County Board of Supervisors

          Oppose:
           
          None on file

          






































          Kellie Smith 
          AB 42 Analysis
          Hearing Date:  July 7, 2009