California Assembly Bill AB42 Amended / Bill

 BILL NUMBER: AB 42AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 22, 2009 AMENDED IN ASSEMBLY MARCH 31, 2009 AMENDED IN ASSEMBLY MARCH 17, 2009 INTRODUCED BY Assembly Member Blakeslee DECEMBER 1, 2008 An act to add Section 565 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGEST AB 42, as amended, Blakeslee. Electricity: Pacific Gas and Electric Company: seismic fault. (1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities including electrical corporations, as defined. Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to conduct various assessments and forecasts on energy industry supply, production, transportation, delivery and distribution, demand, and prices. This bill would  require the Energy Commission, on or before April 1, 2010, in a public hearing and in consultation with the California Geologic Survey, Seismic Safety Commission, and California Coastal Commission, to determine what, if any, seismic fault and other hazard or vulnerability studies or surveys are urgently needed for the area at or near the Diablo Canyon Nuclear   Powerplant. The bill would  require  the  Pacific Gas and Electric Company to  seek funding for seismic fault studies and seismic retrofits in order to maintain reliable operation of the electrical grid and reduce impacts to customer rates as a result of a seismic event   conduct those seismic fault and other hazard or vulnerability studies or surveys at or near the vicinity of the Diable Canyon Nuclear Powerplant that are deemed urgent by the Energy Commission  . Because a violation of this requirement would be a crime, this bill would impose a state-mandated local program. The Energy  bill would require t   he  Commission  would be required to  ,in consultation with the California Geologic Survey, Seismic Safety Commission, and California Coastal Commission,  conduct  or facilitate  a peer review of any fault studies  or surveys  conducted pursuant to that requirement  within 120 days of receipt of a final study or survey  . The  Public Utilities Commission would be required to allow   bill would require the  Pacific Gas and Electric Company to fully recover  costs from all of their electrical customers for investments in fault studies and seismic retrofits   , in its electricity procurement rates, all reasonable costs associated with any studies, surveys, or peer review required pursuant to the bill. (2) 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. (3) This bill would state the findings and declarations of the Legislature concerning the need for special legislation. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) In issuing Decision 07-03-044, the Public Utilities Commission authorized an expenditure of sixteen million eight hundred thousand dollars ($16,800,000) of ratepayer funds to explore the feasibility of relicensing the Diablo Canyon Nuclear Power Plant. (b) The Public Utilities Commission, regarding the expenditure of those funds, said that Pacific Gas and Electric Company should defer, to the extent feasible, its work, its own study, and associated spending, until after the State Energy Resources Conservation and Development Commission (Energy Commission) issues its findings and conclusions pursuant to Chapter 722 of the Statutes of 2006, and that Pacific Gas and Electric Company should incorporate the findings and recommendations of that Energy Commission assessment in its own work. (c) The assessment made pursuant to Chapter 722 of the Statutes of 2006 included several findings and recommendations; in particular, the Energy Commission found that Pacific Gas and Electric Company should use three-dimensional geophysical seismic reflection mapping and other advanced techniques to explore fault zones near Diablo Canyon. (d) The July 2007 magnitude 6.8 Japan Sea earthquake located 16 kilometers from  Toyota   Tokyo  Electric Power Company's Kashiwazaki-Kariwa Nuclear Power Plant shut down the facility at a cost of some hundreds of millions of dollars per month. (e) In November 2008, the United States Geological Survey identified a previously unidentified offshore fault approximately one kilometer west of Diablo Canyon Nuclear Power Plant with an estimated ability to generate a magnitude 6.5 earthquake. SEC. 2. Section 565 is added to the Public Utilities Code, to read:  565. (a) Pacific Gas and Electric Company shall seek funding for seismic fault studies and seismic retrofits, deemed urgent by the Energy Commission or the Seismic Safety Commission, in furtherance of the recommendations made by the Energy   565.   (a)     (1)     On or before April 1, 2010, in a public hearing and in consultation with the California Geologic Survey, Seismic Safety Commission, and California Coastal Commission, the Energy Commission shall determine what, if any, seismic fault and other hazard or vulnerability studies or surveys are urgently needed for the area at or near the Diablo Canyon Nuclear Powerplant. The determination shall be made in furtherance of the responsibilities of the Energy  Commission pursuant to paragraph (8) of subdivision (a) of Section 25303 of the Public Resources Code, in order to maintain reliable operation of the electrical grid and reduce impacts to customer rates as a result of a seismic  or other catastrophic  event.  (2) Pacific Gas and Electric Company shall conduct those seismic fault and other hazard or vulnerability studies or surveys at or near the vicinity of the Diable Canyon Nuclear Powerplant that are deemed urgent by the Energy Commission pursuant to paragraph (1).   (3) The commission shall consider any seismic fault and other hazard or vulnerability studies or surveys required pursuant to this subdivision in its review of Pacific Gas and Electric Company's license renewal application required by the commission in Decision 07-03-044. The commission shall extend the June 30, 2011, application deadline, order number 11 in Decision 07-03-044, if the commission finds, upon petition or other application by Pacific Gas and Electric Company, that an extension is necessary to complete the studies or surveys or to allow the Energy Commission to complete a per review complete peer review pursuant to subdivision (b).   (4) The Energy Commission, in consultation with the California Geologic Survey, Seismic Safety Commission, and California Coastal Commission, may participate in the development of study or survey designs.  (b) (1) The Energy Commission  shall conduct   , in consultation with the California Geologic Survey, Seismic Safety Commission, and California Coastal Commission, shall conduct or facilitate  a peer review of any studies  conducted pursuant to subdivision (a)   or surveys conducted pursuant to subdivision (a) within 120 days of receipt of a final study or survey  . (2) The Energy Commission may enter into agreements with  academic and industry groups of   qualified  scientists with expertise in fault imaging and character and behavior studies to conduct an external scientific peer review of the scientific basis for any fault study  or survey  . (3) The Energy Commission shall include the findings and recommendations of  the peer review of any fault study   any studies or surveys conducted pursuant to subdivision (a)  in the integrated energy policy report as updates pursuant to subparagraph (D) of paragraph (8) of subdivision (a) of Section 25303 of the Public Resources Code. (c) The commission shall allow Pacific Gas and Electric Company to fully recover  costs from all of their electrical customers for investments in fault studies and seismic retrofits pursuant to this section.   , in its electricity procurement rates, all reasonable costs associated with any studies or surveys required pursuant to subdivision (a) and the peer review required pursuant to subdivision (b).  SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. SEC. 4. 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 of unique circumstances pertaining to Pacific Gas and Electric Company.