SACRAMENTO, Calif. (AP) – An effort to block Pacific Gas and Electric Co. from getting a tax break on the $1.6 billion it was fined for the deadly 2010 San Bruno gas explosion has fallen short.
State regulators imposed the record-setting penalty in April on the state’s largest utility for the explosion that killed eight and destroyed more than three dozen homes in suburban San Francisco.
A company spokesman says the costs are tax deductible, but state regulators say the deduction should not be allowed.
SB681 by Democratic Sen. Jerry Hill of San Mateo would prevent the company from claiming the $115 million tax break.
The measure fell two votes short of the required 27-vote supermajority Thursday.
Hill says he’ll try again before lawmakers adjourn next week.