HomeMy WebLinkAbout03-15-2016 Item 14, BeckerMAR 15 2016
From: Rochelle Becker - --
Sent: Tuesday, March 15, 2016 10:03 AM
To: E -mail Council Website
Subject: SB 968
Attachments: 128 16 Diablo econ impacts - Leg Counsel.PDF; 2 2016 SB 968 - Diablo Canyon fact
sheet.pdf, 022316 A4NR support SB968 -1.pdf
Dear Mayor Marx and Council:
I would like to take the opportunity to inform you, in advance, that I will be attending the public
comment segment of the council meeting on March 15th at which time I will ask the council to
consider offering formal support for SB 968, legislation now proposed by our district senator,
William Monning and co- authored by Assemblyman Achadjian.
I am attaching the bill language and the fact sheet provided by Mr. Monning's staff. In short, this
bill will call on PG &E to perform (under the aegis of the CPUC) an economic analysis of SLO's
financial future in the aftermath of the closing of Diablo Canyon, and to identify "mitigating
strategies" that will help to ameliorate the anticipated losses.
Therefore, on behalf of the Alliance, I will be formally asking the City to endorse this legislation.
Kindly feel free to contact me at any time if you have questions or need additional information.
Yours truly,
Rochelle
Rochelle Becker, Executive Director
Alliance for Nuclear Responsibility
PO 1328
San Luis Obispo, CA 93406
www.a4nr.org
COUNCIL MEETING: - IS -1 co
ITEM NO.:- I - --
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An act to add Section 712.5 to the Public Utilities Code, relating to
electricity.
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THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 712.5 is added to the Public Utilities Code, to read:
712.5. (a) The commission shall require the Pacific Gas and Electric Company
to submit an assessment of the adverse economic impact for the region surrounding
the County of San Luis Obispo that could occur if the Diablo Canyon Units 1 and 2
powerplant were to temporarily or permanently shut down before the powerplant's
current operating licenses from the Nuclear Regulatory Commission expire. The
assessment shall be conducted by an independent third party whose independence and
qualifications can reasonably be verified by the commission.
(b) The assessment shall consist of, but not be limited to, all of the following:
(1) Estimates of any decreases in local tax revenues, decreases in workforce
populations, losses in indirect or induced economies, and potential impacts to ratepayers
from an early shutdown.
(2) A review of the economic impacts that affected the region surrounding the
San Onofre Nuclear Generating Station after it was decommissioned by the Southern
California Edison Company and of the relevant decommissioning plans of the San
Onofre Nuclear Generating Station.
(3) Identification of any contingency plans that could mitigate the adverse
economic impact of an early shutdown to state and local jurisdictions, the local
workforce, and entities receiving enhanced tax revenue.
(c) The independent third party shall consult with the board of supervisors of
the County of San Luis Obispo, the governing board of the San Luis Coastal Unified
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School District, and other relevant governmental entities to assist in an accurate
assessment of decreases in local tax revenues.
(d) The commission shall make the assessment publicly available on its Internet
Web site and place it as an item on the agenda at the next commission meeting after EEO
the assessment is made publicly available for purposes of collecting and recording
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public comment, and hold any subsequent public meetings as necessary.
(e) The commission shall consider any further assessments or reviews needed
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that could assist local efforts in the region surrounding the County of San Luis Obispo
to prepare for a sudden closure of the Diablo Canyon Units 1 and 2 powerplant and
make those considerations and findings publicly available.
SEC. 2. The Legislature finds and declares that a special law is necessary and
that a general law cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution because, currently, the Diablo Canyon Units
1 and 2 powerplant, owned and operated by the Pacific Gas and Electric Company, is
the last operating nuclear powerplant in California and its continued operation is
uncertain as Diablo Canyon Units 1 and 2 are only authorized to operate until 2024
and 2025, respectively. Local communities were ill- prepared and given no notice after
the sudden closure of the San Onofre Nuclear Generating Station was announced on
June 7, 2013, and the state is still responding, at significant cost, to the sudden,
permanent, and unexpected loss of baseline electricity. Therefore, an assessment is
needed from the Pacific Gas and Electric Company on the adverse economic impact
specific to an early shut down of the Diablo Canyon Units 1 and 2 powerplant to provide
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the state, and local communities, with valuable and necessary information to plan and
prepare for that circumstance, if needed.
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LEGISLATIVE COUNSEL'S DIGEST
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Bill No.
as introduced,
General Subject: Diablo Canyon Units 1 and 2 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 in the County of San Luis Obispo. Existing law requires the
commission to convene, or continue, until August 26, 2025, an independent peer review
panel to conduct an independent review of enhanced seismic studies and surveys of
the Diablo Canyon Units l and 2 powerplant, including the surrounding areas of the
facility and areas of nuclear waste storage.
This bill would direct the commission to require the Pacific Gas and Electric
Company to submit an assessment, conducted by an independent third party, of the
adverse economic impact that could occur if the Diablo Canyon Units 1 and 2
powerplant were to temporarily or permanently shut down before the powerplant's
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current operating licenses expire. The bill would require the commission to consider
any further assessments or reviews needed that could assist local efforts to prepare for
a sudden closure of the Diablo Canyon Units 1 and 2 powerplant.
This bill would make legislative findings and declarations as to the necessity of
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a special statute for the Pacific Gas and Electric Company. F
Vote: majority. Appropriation: no. Fiscal committee: yes. State - mandated local
program: no.
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SB 968 FACT SHEET
SENATOR BILL MONNING
DIABLO CANYON: ADVERSE ECONOMIC IMPACT ASSESSMENT
PROPOSED BILL
Senate Bill (SB) 968 requires the Pacific Gas
and Electric Company (PG &E) to submit to
the California Public Utilities Commission an
assessment of the adverse economic impacts
that could occur in the San Luis Obispo
County region if the Diablo Canyon Nuclear
Power Plant were to temporarily or
permanently shut down.
The assessment would be conducted by an
independent third party and made publically
available.
BACKGROUND
The Diablo Canyon Power Plant (Plant) is
owned and operated by PG &E and located on
the California coast in San Luis Obispo
County. The Plant is the only nuclear power
plant operating in the state and is licensed by
the Nuclear Regulatory Commission (NRC).
Unit 1 is licensed to operate until November
2, 2024, and Unit 2 is licensed to operate until
August 26, 2025.
On November 24, 2009, PG &E filed a 20
year license renewal with the NRC but after
the accident at the Fukushima Daiichi nuclear
power plant in Japan in 2011, active efforts to
extend the license have stalled. As a result,
seismic studies and reviews are ongoing and
will need to be completed prior to NRC's
decision to extend Diablo Canyon's license.
Additionally, if PG& E continues to move
forward with the Plant's license extension,
use of the Once - Through Cooling system and
future environmental mitigation will need to
be reviewed by the State Water Resources
Control Board.
Senator Monning
A June 2013 Economic Impact Study funded
by PG &E concluded that the local economic
impact of Diablo Canyon is substantial, with
the total 2011 estimated economic impact to
be $919.8 million.
The Plant has approximately 1,483 employees
and it is estimated that this year the San Luis
Coastal Unified School District will receive
more than $10 million, 16 percent of its
operating revenue, from taxes paid by PG &E.
According to San Luis Obispo County
records, PG &E is the largest property
taxpayer in the County, paying over $25
million in 2014, much of that attributable to
its operations at Diablo Canyon.
NEED FOR LEGISLATION
While the 2013 Economic Impact Study
highlighted the economic benefits of Diablo
Canyon, the study failed to detail the adverse
economic impacts that could occur if the Plant
were to shut down.
No one can say for certain whether the Diablo
Canyon Nuclear Power Plant will continue to
operate in the near -term or long -term. Given
this uncertainty and the region's economic
reliance on the Plant, it is critical that state
regulators and the public be informed about
the potential adverse economic impacts
should the plant not be in operation and how
to best mitigate these impacts
In 2013, local communities were ill prepared
for the sudden closure of the San Onofre
Nuclear Generating Station (SONGS) in San
Diego.
Contact: Ryan Guillen at (916) 651 -4017
SB 968 Fact Sheet
Unlike the region impacted by the SONGS
closure, the San Luis Obispo region relies
more hcavily on the cconomic bcncfits
provided by Diablo Canyon and needs'
economic impact information in order to
assess how the region can absorb adverse
economic impacts should the Plant be closed.
SOLUTION
SB 968 calls for a comprehensive economic
assessment of the region that would be
impacted if the Diablo Canyon Nuclear Power
Plant temporarily or permanently closes. The
assessment would determine if there would be
decreases in local tax revenues, decreases in
the local workforce, and if there would be
indirect economic losses. Additionally, the
assessment would include a review of the
economic impacts of the closure of the San
Onofre Nuclear Generating Station and how
the community is handling decommissioning.
Assessing and planning for any adverse
economic impacts should the Diablo Canyon
Power Plant shut down is prudent and will not
take away from the existing public safety
assessments related to the Plant. SB 968 will
allow local communities and the state with the
information they need to develop potential
contingency plans should Diablo Canyon
temporarily or permanently shut down.
SUPPORT
None at this time
OPPOSITION
None at this time
Senator Monning
FOR MORE INFORMATION
Contact: Ryan Guillen
Phone: (916) 651 -4017
Email: ryan.g)td11e (g)sen.ca.gov
Contact: Ryan Guillen at (916) 651 -4017
SB 968 Fact Sheet
ALLIANCE FOR NUCLEAR RESPONSIBILITY
February 23, 2016
Senator Bill Morning
State Capitol, Room 313
Sacramento, CA 95814
RE: SB 968— SUPPORT
Dear Senator Monning:
PO Box 1328
San Luis Obispo, CA 93406
(858) 337 -2703
(805) 704 -1810
www.a4nr.org
On behalf of the Alliance for Nuclear Responsibility (A4NR), we wish to thank you for your
leadership in authoring this bill.
As our district's senator, you are keenly aware of San Luis Obispo's historical dependence on
revenue —both taxed and indirect —from PG &E's Diablo Canyon Nuclear Power Plant. While this
community has for years borne the risks from hosting this facility, it has nonetheless received the
economic benefits. However, the latest reports from the Energy Commission and CAISO indicate
that changing and newly emerging energy paradigms are creating a situation in which the energy
from Diablo Canyon will continue to diminish in importance to California's overall goals.
At the same time, PG &E's bid to relicense the facility faces increasing obstacles, not the least of
which are complex permitting requirements from the State Lands Commission, State Water
Resources Control Board and the Coastal Commission. Even the early relicensing exuberance of
PG &E's executive leadership has waned to a "non- committal" stance at best. It should be
remembered that three of four commercial reactors in California closed well in advance of their
license expiration, and that Southern California Edison shuttered San Onofre only weeks after their
own management testified to the CPUC that they fully expected one unit to restart that summer. The
decision to close Diablo Canyon will be made at 77 Beale Street, and as the lesson from San Onofre
illustrates, may be made suddenly and on the basis of cutting corporate losses.
Thus, SB 968, with its goal of evaluating San Luis Obispo's post- Diablo economic future, comes at
the right time. While the County government has discussed the need to plan for a post - Diablo
future, this bill opens the door for dialog between our local community and Sacramento.
Of all the elements in the bill, we find this section to have the most importance to the future of San
Luis Obispo:
(3) Identification of any contingency plans that could mitigate the adverse
economic impact of an early shutdown to state and local jurisdictions, the local
workforce, and entities receiving enhanced tax revenue. [emphasis added]
"Running the numbers" regarding economic losses is perhaps the cursory part of the legislation.
The development of mitigation strategies to offset the losses that would _come with the closin of
of
plant is key to insuring that this bill achieves its desired impact. True diligence and a broad,
macro -view of our region's development outlook are needed for the mitigation challenge.
While the bill asks for a look at the aftermath of the closing of SONGS, there are recent lessons to
be learned from other former reactor communities — including Crystal River, Florida and
Kewaunee, Wisconsin —that have similar populations to San Luis Obispo as well as the ancillary
drivers of tourism and agriculture. Those communities are scrambling to make up the losses and
cobble together redevelopment plans. Among the lessons: Local planners should have evaluated
land use, zoning, infrastructure, tax and housing policies in advance of closure in order to become a
competitive location for the economic drivers they now seek. Any study evolving from SB 968
should involve regional planning and economic development consultants, including overtures to the
federal government with regard to redevelopment funds as if this were a military base closure.
In closing, we thank you for taking the important steps needed to make sure that San Luis Obispo
remains "whole" as a community in the aftermath of Diablo Canyon's closing. While that decision
will be PG &E's, the ability to remain pro- active remains with us.
Yours truly,
/s/
Rochelle Becker,
Executive Director
cc: Assemblyman Mike Gatto, Chair, Assembly Utilities and Commerce Committee
Senator Ben Hueso, Chair, Senate Energy, Utilities and Communications Committee