"This money will be used for the benefit of all the citizens of our city and to help us, as a community, get beyond the tragedy and devastation caused by PG&E's explosion and fire," San Bruno Mayor Jim Ruane said in a joint news release.
"The community of San Bruno has suffered through a terrible tragedy and we understand that this accident will affect this community forever," PG&E President Chris Johns said.
The city will establish a separate not-for-profit public purpose entity to manage the funds and determine how the restitution should be spent for the benefit of the community as a whole, the statement said.
"This $70 million payment is in addition to PG&E's commitment to fund replacement and repair of the city's infrastructure and other costs related to the accident and restoration of the neighborhood," it said. "The utility will not seek to recover the contribution through insurance or customer rates."
During a public board meeting after delivering their final report on the matter, National Transportation Safety Board investigators sharply criticized pipeline owner PG&E for the explosion, saying the pipe was inadequate from the time it was installed in 1956.
That was compounded "by a litany of failures" over the years, including poor record-keeping, inadequate inspection programs and "an integrity management program without integrity," NTSB Chairwoman Deborah Hersman said.
"It was not a question of if this pipeline would burst," she said. "It was a question of when."
Hersman said the probe yielded "troubling revelations about a company that exploited weaknesses in a lax system of oversight, and government agencies that placed a blind trust in operators to the detriment of public safety."