Bill Text: CA SB1090 | 2017-2018 | Regular Session | Chaptered
Bill Title: Diablo Canyon nuclear powerplant.
Spectrum: Bipartisan Bill
Status: (Passed) 2018-09-19 - Chaptered by Secretary of State. Chapter 561, Statutes of 2018. [SB1090 Detail]
Download: California-2017-SB1090-Chaptered.html
Senate Bill No. 1090 |
CHAPTER 561 |
An act to add Section 712.7 to the Public Utilities Code, relating to electricity.
[
Approved by
Governor
September 19, 2018.
Filed with
Secretary of State
September 19, 2018.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 1090, Monning.
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 utility’s 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 powerplant’s 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 commission’s 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 bill’s 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares the following:(a) The joint proposal entered into between PG&E and interested parties governing the retirement of the Diablo Canyon Units 1 and 2 powerplant at the expiration of its current operating license period, the replacement of electrical generation capacity lost due to the closure with a portfolio of greenhouse-gas-free resources, the retention of highly skilled nuclear powerplant workers prior to the retirement, and the mitigation of the impacts of the closure on local communities, as modified by the community impact mitigation settlement, is in the interest of utility customers.
(b) The Public Utilities Commission has
invited guidance from the Legislature on the question of whether it has the legal authority to approve the community impact mitigation settlement proposed by the parties in Application 16-08-006.
(c) Operation of the powerplant through the planned retirement date of Diablo Canyon Units 1 and 2 in a safe and reliable manner requires retaining existing members of the trained workforce and for this reason the employee retention program as agreed upon in the joint proposal in Application 16-08-006 should be approved by the Public Utilities Commission without modification.
SEC. 2.
Section 712.7 is added to the Public Utilities Code, to read:712.7.
(a) The commission shall approve both of the following:(1) The full funding for the community impact mitigation settlement proposed in Application 16-08-006.
(2) The full funding for the employee retention program proposed in Application 16-08-006.
(b) The commission shall ensure that integrated resource plans are designed to avoid any increase in emissions of greenhouse gases as a result of the retirement of the Diablo Canyon Units 1 and 2 powerplant.
(c) The commission shall establish an expedited advice letter process for the approval and
implementation pursuant to subdivision (a) of the community impact mitigation settlement and the employee retention program.