All News Releases By Date

PG&E TO PAY $14 MILLION TO SETTLE DIABLO CANYON MISSING DATA CASE

Release Date: 5/27/1997
Contact Information: DAVEN OSWALT (CAL/EPA) (916) 324-9670; DAVID SCHMIDT (U.S. EPA) (415) 744-1578

     San Francisco -- A team of state and federal environmental and law enforcement officials today announced the settlement of one of the largest environmental cases in California history. Under the terms of an agreement filed today, Pacific Gas and Electric will pay more than $14 million to settle allegations of deliberate violation of state and federal clean water laws at its Diablo Canyon Nuclear Power Plant located near San Luis Obispo on the central California coast.

     "Given  PG&E's outstanding environmental record in many areas, the rogue behavior of senior officials in delayed and misleading reporting is both surprising and disappointing.  The substantial settlement amount agreed to in this case sends a strong signal to others tempted to cross over the line of legality,"  said California Secretary for Environmental Protection James M. Strock.
   
    "The state's negotiations and ultimate settlement highlight the importance of both compliance with state and environmental laws and maintaining corporate responsibility," said Attorney General Dan Lungren. "We are pleased that PG&E agreed to resolve this case and provide data to better monitor Diablo Canyon's impact on the environment."

     The consent decree filed today in U.S. District Court, Northern District of California, settles allegations of tampering with and withholding data related to the amount of sea life killed by the 2.5 billion gallon per day cooling water intake system at PG&E's Diablo Canyon Nuclear Power Plant.  The complaint alleges that in a series of reports, testimony and other documents, PG&E withheld and misrepresented data, information and analysis which would have allowed the state's Central Coast Regional Water Quality Control Board to get a clear picture of the damage the plant's operations are causing to water quality and sea life.

     Specifically, PG&E is accused of incomplete and misleading reporting to environmental regulators. PG&E claimed that measuring the amount of small fish and other organisms at the outflow of the cooling system was an accurate way to measure the amount of sea life at the intake port.  To support such a misleading conclusion, evidence indicates PG&E omitted more than half of the actual test results which showed up to a 90 percent reduction in sea life as it passes through the cooling system.  Such measurements and reports are required by state and federal clean water laws to ensure that companies like PG&E use the best technology available to minimize adverse environmental impacts of their operations.
                               
    Court documents detail how for several years, PG&E continued to submit misleading and inaccurate reports to state environmental regulators -- removing the data from early drafts compiled by their own staff and consultants.  In late 1991, individuals from PG&E and its consultants discovered that the data showing heavy losses of sea life had never been reported to state and federal agencies and these omissions were reported to a PG&E Vice President in March of 1992.  But it was not until July of 1994 that PG&E finally turned over the data to the Central Coast Regional Water Quality Control Board -- some of it dating back to June of 1985.

     "This case isn't only about the environment, it's about integrity," said Felicia Marcus, Regional Administrator for U.S. EPA's Western Region.  "PG&E is paying a hefty price for taking the wrong course here.  This settlement sends a loud and clear message, from both the state and federal government that such conduct is just plain wrong.  California's Central Coast is a national treasure."

     "The settlement sends a clear message of the importance of full and complete data disclosure.  Without proper information, the state environmental officials cannot properly monitor and protect water resources.  The regional board is satisfied that the case is resolved and the focus is now on the health of the resource.  PG&E is cooperating in current efforts to evaluate impacts of Diablo Canyons cooling water intake system.  The regional board is particularly pleased a substantial portion of the settlement will be used to address water quality issues," said Harold "Rusty" Fairly, Chairman of the Central Coast Water Board.

     "State and federal environmental officials must be able to rely on the accuracy of the information submitted under our environmental laws so they can protect public health and the environment," said Lois Schiffer, Assistant U.S. Attorney General in charge of the Justice Departments Environmental and Natural Resources Division. "The message here is clear: If you mislead agencies responsible for protecting our environment, you will pay a heavy price."
   
    "Ultimately, this case demonstrates the importance of a strong, innovative, and flexible state/federal enforcement program.  This settlement guarantees that resources will be spent on protecting and improving the environment, rather than on protracted litigation," said Steven A. Herman, Associate Administrator for Enforcement, U.S. EPA.
   
    "The Consent Decree represents a satisfactory way to resolve the serious violations of  PG &E's permit," said Michael Yamaguchi, U.S. Attorney for the Northern District of California, San Francisco.  "Critical data required by the permit were simply not reported and these omissions had the potential to cause harm to marine wildlife.  We are pleased that PG &E has, under terms of the Consent Decree, elected to pay penalties for its past violations and work with the environmental agencies toward prevention of future problems and improvement of the environment."
                             
    More than $6 million of the settlement payment will be used to fund two important  environmental enhancement projects: $3.7 million to the non-profit Bay Foundation of Morro Bay for estuary protection and enhancement measures in the Morro Bay area and $2.5 million to San Jose State University as an endowment for the State's Mussel Watch Program which currently monitors water quality by studying accumulation of pollutants in mussels at sites throughout the state.  California and U.S. EPA supports the use of such creative settlements as a means to gain additional environmental improvement from violators.

     For more information, including copies of the complaint and settlement agreement, please contact Daven Oswalt, Cal/EPA's Communications Director at(916) 324-9670.

                                  #   #   #