SB 1090: Diablo Canyon nuclear 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 (PG&E) in the County of San Luis Obispo. The Nuclear Facility Decommissioning Act of 1985 requires each electrical corporation owning or operating nuclear facilities to establish an externally managed, segregated fund for payment of decommissioning costs of those facilities, establishes requirements for the collection of moneys for decommissioning costs in the utilitys rates and charges, and requires that the expenses associated with decommissioning nuclear facilities be paid from those funds. Pursuant to the act, the commission ordered that 2 nuclear decommissioning funds be established for the Diablo Canyon Units 1 and 2 powerplant. Existing law requires 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 powerplants current operating licenses expire or when PG&E closes the powerplant upon the expiration of its current licenses. Existing law requires the commission to approve the withdrawal of $400,000 from the nuclear decommissioning funds established for the Diablo Canyon Units 1 and 2 powerplant for use by the commission for additional staffing to urgently effectuate the 3rd-party assessment. Pursuant to existing law, PG&E has filed an application with the commission seeking the commissions approval for the retirement of the Diablo Canyon nuclear powerplant.

This bill would require the commission to approve the full funding for the community impact mitigation settlement, and for the employee retention program, proposed by PG&E in a specified application submitted to the commission. The bill would require the commission to ensure that integrated resource plans avoid any increase in emissions of greenhouse gases as a result of the retirement of the Diablo Canyon nuclear powerplant.

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because this bill would amend the Public Utilities Act, and the commission would be required to issue an order, decision, rule, direction, demand, or requirement to implement the bills provisions, a violation of any of which would be a crime, this bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Diablo Canyon nuclear powerplant.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.