Governor Jerry Brown has signed a bill intended to cushion the economic impact of the Diablo Canyon Power Plant closure.
Pacific Gas and Electric Company (PG&E) plans to decommission the nuclear power plant located near Avila Beach by 2025.
The plant contributes an estimated $1 billion annually to the local economy.
Senate Bill 1090 requires the California Public Utilities Commission (CPUC) to approve an $85 million community impact mitigation settlement to San Luis Obispo County, several cities and school districts following the retirement of the power plant. It also requires full funding for a $350 million program designed to keep PG&E workers from leaving the closing plant early.
In January, the CPUC approved PG&E’s proposal to close the plant but denied the $85 million settlement unless the utility company was to receive "express legislative authorization" or uses shareholder funds. The CPUC said in its decision it was concerned about the legality of having ratepayers pay for the $85 million and whether those funds would be distributed fairly.
SB 1090 was co-authored by Sen. Bill Monning (D-Carmel) and Assemblyman Jordan Cunningham (R-San Luis Obispo).