Bill blocks PG&E tax breaks following San Bruno blast

SACRAMENTO, Calif. (KGO) -- California legislators will hold a hearing on a bill that prevents PG&E from taking tax deductions on the fine it received following the deadly San Bruno pipe blast.

Senator Jerry Hill, D-San Mateo/Santa Clara Counties and Assembly Member Kevin Mullin, D-San Mateo, first introduced the legislation know as Senate Bill 681 in June.

The company was fined $1.6 billion for the 2010 explosion that killed eight people and destroyed dozens of homes.

Under current state and federal laws, $1.3 billion of that fine is deductible, which calculates to about $115 million for the utility.

The bill would prevent deductions on punitive fines.