SAN LUIS OBISPO, Calif.--(BUSINESS WIRE)--
With a shared vision of an economically strong and healthy region
following the retirement of Diablo Canyon Power Plant (DCPP), Pacific
Gas and Electric Company (PG&E), labor and leading environmental groups,
the County of San Luis Obispo, the Coalition of Cities (Arroyo Grande,
Atascadero, Morro Bay, Paso Robles, Pismo Beach and San Luis Obispo) and
the San Luis Coastal Unified School District (SLCUSD) today announced a
proposed agreement that would provide $85 million in support for the San
Luis Obispo County community.
The proposed agreement was reached following a mutual goal to ensure a
successful transition for the region over the next nine years to a
post-DCPP operations economy. The agreement fulfills a key element of
the DCPP joint proposal that was announced over the summer.
“PG&E is privileged to be part of the Central Coast community. We’ve
been here for over a century and will continue to be an active community
member for decades to come, working with local leaders to sustain a
strong and diverse economy. We appreciate this opportunity to partner
with our County, cities and other stakeholders on this important
agreement, which will greatly assist in the planning and preparation for
a future without Diablo Canyon in operation. This is an important issue
for all of us, and PG&E will continue to strongly advocate for
supporting our community as the joint proposal moves through the state’s
review process,” said Geisha Williams, president, PG&E Electric.
“PG&E is a valued community partner and its efforts to negotiate with us
and address our major concerns related to the plant’s closure further
confirms that PG&E cares about the future of our community,” said County
Board Chair and District 4 Supervisor Lynn Compton.
“This groundbreaking agreement will soften the significant impact our
community will feel once Diablo Canyon is no longer here. There is still
a difficult road ahead, but if we continue to work together, we will
shape a prosperous future for our community. This collaborative effort
is something of which we can all be proud,” said County Board Vice Chair
and District 3 Supervisor Adam Hill.
About the Agreement
The County served as the lead government agency for the local area in
negotiating the overall agreement with PG&E.
Under the first part of the agreement between PG&E, the County and
SLCUSD, a $75 million Essential Services Mitigation Fund will be created
to offset the potential negative impacts to essential services provided
to the community by the SLCUSD and the County. This will be distributed
to the County in nine equal annual installments through 2025 and the
County will redistribute the funds to local agencies whose budgets are
impacted by the inevitable decrease in unitary tax funding from the
power plant. The school district will receive the bulk of this funding.
Under a second part of the agreement between the County and the
Coalition of Cities, PG&E would create a $10 million Economic
Development Fund to ease the local economic impacts of the plant’s
closure. Each member of the Coalition of Cities will receive a portion
of $5.76 million, the County will receive $3.84 million, and the
remaining $400,000 will be allocated for regional economic development
activities. The County will be sharing a portion of the $3.84 million
with the City of Grover Beach which means that all cities in the County
will receive benefits from this settlement.
A third part of the agreement between PG&E and the County addresses the
continuation of funding for offsite community and local emergency
preparedness and planning efforts until all spent fuel is in dry cask
storage and the two nuclear reactors are fully decommissioned. This part
of the agreement also reiterates PG&E’s earlier pledge not to take
actions or make decisions on the re-use or sale of DCPP-related lands,
including Wild Cherry Canyon, until PG&E has completed a site-specific
decommissioning plan with input from the community.
Respective local governing bodies will review their portions of the
joint agreement during public meetings in December. All parties need to
officially approve the agreement and submit it to the CPUC as a
modification to PG&E’s original joint proposal. All elements of the
joint proposal are subject to the CPUC’s review and approval.
About the Diablo Canyon Joint Proposal
California’s energy landscape is changing dramatically. State policies
that focus on renewables and energy efficiency, coupled with projected
lower customer electricity demand in the future, will result in a
significant reduction in the need for the electricity produced by DCPP
past 2025.
Reflecting this change, PG&E partnered with labor and leading
environmental organizations on a joint proposal that would increase
investment in energy efficiency and renewables while retiring DCPP at
the end of its current Nuclear Regulatory Commission (NRC) operating
licenses, which expire in 2024 and 2025.
The parties to the joint proposal are PG&E, International Brotherhood of
Electrical Workers Local 1245, Coalition of California Utility
Employees, Friends of the Earth, Natural Resources Defense Council,
Environment California and Alliance for Nuclear Responsibility.
The proposal includes a PG&E commitment to a 55 percent renewable energy
target in 2031, an unprecedented voluntary commitment by a major U.S.
energy company.
Recognizing that the procurement, construction and implementation of a
GHG-free portfolio of energy efficiency and renewables will take years,
the joint parties agreed to support PG&E in obtaining the state
approvals needed to operate DCPP to the expiration of its current NRC
operating licenses.
This avoided an early shutdown of DCPP and associated negative economic
and social impacts, including replacing the plant’s output required to
meet customer demand with non-GHG-free resources.
As part of the joint proposal, PG&E immediately ceased any efforts on
its part to renew the DCPP operating licenses, and asked the NRC to
suspend consideration of the pending DCPP license renewal application.
PG&E will withdraw its license renewal application upon CPUC approval of
the joint proposal application.
PG&E does not believe long-term customer rates will increase as a result
of the joint proposal.
Commitment to Employees and the Community
The parties to the joint proposal are committed to supporting a
successful transition for the greater San Luis Obispo community and DCPP
employees.
Accordingly, a key element of the joint proposal includes proposed
payments by PG&E to the local region in support of a community
transition plan.
Additionally, PG&E's proposed DCPP retention program will serve to
support both local employees and the community. It provides incentives
to retain employees during the remaining operating years of the plant, a
retraining and development program to facilitate redeployment of a
portion of plant personnel to the decommissioning project or other
positions within the company, and severance payments upon the completion
of employment.
By ensuring that DCPP’s skilled workforce remains in the area through
financial incentives, not only will the plant continue to run safely and
reliably, but the region will also be economically supported for years
to come. These employee incentives will likely provide an unanticipated
economic boost to cities to aid in their transition.
If the joint proposal is approved by the CPUC, the nine-year $520
million employee retention and severance programs will result in a
significant local economic stimulus that could further aid cities in
planning for a successful economic transition through additional and
unanticipated tax revenue.
Re-training opportunities will also allow employees to learn new skills
that could be used to support company operations locally, or the
decommissioning of DCPP, helping ensure that employees remain in and
continue to support the region.
In the years ahead, PG&E will develop a site-specific proposal on how to
decommission DCPP. The decommissioning project is expected to be a
multi-decade, multi-billion dollar effort, resulting in continued
employment and economic spending in the community.
PG&E will also continue with its voluntary charitable support in the
region.
Additional Information
The joint proposal can be read
in its entirety here.
The August 11, 2016, joint proposal application filed at the CPUC can
be found here.
PG&E's September 26, 2016, response to public comments on the joint
proposal can
be read here.
Additional information prepared by M.J. Bradley & Associates, a
strategic environmental consulting firm, on the joint proposal can
be accessed here.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation (NYSE:PCG), is one of the largest combined natural gas
and electric energy companies in the United States. Based in San
Francisco, with more than 20,000 employees, the company delivers some of
the nation’s cleanest energy to nearly 16 million people in Northern and
Central California. For more information, visit www.pge.com/
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Source: Pacific Gas and Electric Company