Mr.

Chairman and members, Senate Bill 1090 has been

constructed as a three-legged stool to maintain the safe and
secure operation of the plant through to its retirement. The bridge
funding provided by the Community Impact Mitigation Program is
at least as important as the other two legs.
PG&E announced in June 2016 that it would not seek to renew
the federal licenses for Diablo Canyon Units 1 and 2 when those
licenses expire in 2024 and 2025. Although PG&E had
negotiated closure terms with some other parties, and had
included community mitigation funding of $49 million in that
settlement, it soon became clear that $49 million was an
inadequate amount to maintain services during the nine-year
closure period.
San Luis Obispo County, the San Luis Coastal Unified School
District, and the seven cities, began meeting with PG&E and the
Board of Equalization to try and determine the true effect of the
decision to set a plant retirement date. In the end, we arrived at a
figure of $85 million to be collected as part of rates over a nine-
year period.
The Community Impact Mitigation Fund Has Two Components,
the Essential Services Mitigation Fund will consist of $75 million
and is designed to sustain essential services at current levels.
The services to be funded include the Sheriff’s department, public
health and safety programs, fire districts water and flood control
districts, infrastructure maintenance and educational programs
and school staff.
The Economic Development Fund of $10 million is designed to
provide seed funding for early and targeted local economic
redevelopment by the County and its seven cities. It is crucial
that the plant’s host community begin restructuring its economy
before the plant is closed.
The Community Impact Mitigation Fund Is Bridge Funding To
Allow Safe Plant Operation By Experienced Diablo Employees
Until Plant Retirement.
Employee retention is essential for Diablo Canyon because each
nuclear power plant has unique operating requirements. Our plan
allows the existing experienced work force at Diablo to avoid
leaving for better jobs at plants that are not planning to close.
These employees will be assisted with the employee retention
components of this bill, but they need to be assured that their
community will continue to provide their families with decent
educational opportunities and necessary public services.
The ratepayers will see a small increase in their energy bills, a
few cents per month, but the program does not go on in
perpetuity. The rate increase will be in effect for about eight
years. This is an equitable bridge funding support provision for
the community that has supported the plant during its entire
operating life and will support the spent fuel facility at the plant for
the foreseeable future.

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