Amended in Senate April 22, 2013

Amended in Senate April 8, 2013

Amended in Senate April 1, 2013

Senate BillNo. 418


Introduced by Senator Jackson

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(Principal coauthor: Senator Block)

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(Principal coauthor: Assembly Member Atkins)

February 20, 2013


An act tobegin delete add Section 1091.5 toend deletebegin insert repeal Section 350 ofend insert the Public Utilities Code,begin insert and to repeal Section 1 of Chapter 677 of the Statutes of 2012,end insert relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 418, as amended, Jackson. Energy:begin delete nuclear fission powerplants.end deletebegin insert reports.end insert

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(1) Existing law requires the Independent System Operator, in consultation with the California Energy Resources Conservation and Development Commission, the Public Utilities Commission, the Western Electricity Coordinating Council, and concerned regulatory agencies in other western states, to provide a specified report to the Legislature and to the Oversight Board within 6 months after the Federal Energy Regulatory Commission approved the Independent System Operator.

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This bill would repeal this provision.

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(2) Existing law requires the Governor’s Office of Business and Economic Development to consult with the Legislative Analyst’s Office, among others, to review and identify efficient and cost-effective methods for the state to create jobs in advanced manufacturing and report its findings to the Legislature by January 1, 2017.

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This bill would repeal this provision.

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(1) Under existing law, the Public Utilities Commission, commonly known as the PUC, has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Act prohibits any electrical corporation from beginning the construction of, among other things, a line, plant, or system, or of any extension thereof, without having first obtained from the PUC a certificate that the present or future public convenience and necessity require or will require that construction. A violation of the act, or an order, decision, rule, direction, demand, or requirement of the PUC is a crime.

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Existing federal law requires an operator of a nuclear fission thermal powerplant to obtain from the federal Nuclear Regulatory Commission a license for the operation of the powerplant.

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This bill would enact the Nuclear Energy Planning and Responsibility Act and would require the PUC to require an applicant electrical corporation applying for ratepayer funding, or reopening an existing application for ratepayer funding, for the relicensing of a nuclear fission thermal powerplant with a generation capacity of 50 megawatts or greater by the federal Nuclear Regulatory Commission, to submit a detailed study of the project needs and costs in order to assess the cost-effectiveness of the continued operation of the nuclear fission thermal powerplant. The bill would require the PUC to make the study available on its Internet Web site and to independently review the study to assess the cost-effectiveness of the continued operation of the nuclear fission thermal powerplant. Because a violation of this provision is a crime, this bill would impose a state-mandated local program.

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(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

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begin insertSection 350 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
2repealed.end insert

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3

350.  

The Independent System Operator, in consultation with
4the California Energy Resources Conservation and Development
P3    1Commission, the Public Utilities Commission, the Western
2Electricity Coordinating Council, and concerned regulatory
3agencies in other western states, shall within six months after the
4Federal Energy Regulatory Commission approval of the
5Independent System Operator, provide a report to the Legislature
6and to the Oversight Board that does the following:

7(a) Conducts an independent review and assessment of Western
8Electricity Coordinating Council operating reliability criteria.

9(b) Quantifies the economic cost of major transmission outages
10relating to the Pacific Intertie, Southwest Power Link, DC link,
11and other important high voltage lines that carry power both into
12and from California.

13(c) Identifies the range of cost-effective options that would
14prevent or mitigate the consequences of major transmission
15outages.

16(d) Identifies communication protocols that may be needed to
17be established to provide advance warning of incipient problems.

18(e) Identifies the need for additional generation reserves and
19other voltage support equipment, if any, or other resources that
20may be necessary to carry out its functions.

21(f) Identifies transmission capacity additions that may be
22necessary at certain times of the year or under certain conditions.

23(g) Assesses the adequacy of current and prospective
24institutional provisions for the maintenance of reliability.

25(h) Identifies mechanisms to enforce transmission right-of-way
26maintenance.

27(i) Contains recommendations regarding cost-beneficial
28improvements to electric system reliability for the citizens of
29California.

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30begin insert

begin insertSEC. 2.end insert  

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begin insertSection 1 of Chapter 677 of the Statutes of 2012 is
31repealed.end insert

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32

SECTION 1.  

(a) The Governor’s Office of Business and
33Economic Development, established pursuant to Section 12096.2
34of the Government Code, shall review and identify efficient and
35cost-effective methods for the state to create jobs in advanced
36manufacturing. In undertaking this review, the office shall consult
37with the Legislative Analyst’s Office and engage other government
38and private sector stakeholders who have expertise in
39manufacturing, workforce development, education, and economic
40development. The Governor’s Office of Business and Economic
P4    1Development shall report its findings to the Legislature on or before
2January 1, 2017.

3(b) A report submitted pursuant to subdivision (a) shall be
4submitted in compliance with Section 9795 of the Government
5Code.

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6

SECTION 1.  

This act shall be known, and may be cited, as the
7Nuclear Energy Planning and Responsibility Act.

8

SEC. 2.  

Section 1091.5 is added to the Public Utilities Code,
9to read:

10

1091.5.  

(a) Upon application to the commission for ratepayer
11funding, or reopening of an existing application for ratepayer
12funding, for the relicensing of a nuclear fission thermal powerplant
13with a generation capacity of 50 megawatts or greater by the federal
14Nuclear Regulatory Commission, the commission shall require
15the applicant electrical corporation operating the nuclear fission
16thermal powerplant to submit a detailed study of the project needs
17and costs in order to assess the cost-effectiveness of the continued
18operation of the nuclear fission thermal powerplant.

19(b) The study shall include, but is not limited to, all of the
20following areas of concern:

21(1) The effect of the nuclear fission thermal powerplant on
22system reliability and the affordable supply of electricity, including
23planned provisions for emergency operations and unplanned
24shutdowns as well as the costs of replacement power.

25(2) The costs attributable to major disruptions in electrical
26generation due to aging or major seismic events that may require
27repair, replacement, or retrofit in excess of fifty million dollars
28($50,000,000) at the nuclear fission thermal powerplant.

29(3) The costs of responding to, or mitigating for, any new federal
30requirements that have arisen or are anticipated to become
31enforceable during the period of the license extension.

32(4) Potential state and local costs and impacts associated with
33current and accumulating high-level radioactive waste and its
34ongoing storage at the nuclear fission thermal powerplant.

35(5) Potential state and local costs associated with mitigation or
36alternatives to the use of once-through cooling at the nuclear fission
37thermal powerplant as required by state or federal law.

38(6) Potential state and local costs associated with expanding
39and maintaining emergency planning zones.

P5    1(7) Costs associated with achieving compliance with
2requirements for a federal consistency certification granted by the
3California Coastal Commission to the electrical corporation,
4required for the relicensing of the nuclear fission thermal
5powerplant by the federal Nuclear Regulatory Commission.

6(c) The commission shall make the study publicly available on
7its Internet Web site and shall independently review the study to
8assess the cost-effectiveness of the continued operation of the
9nuclear fission thermal powerplant.

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SEC. 3.  

No reimbursement is required by this act pursuant to
11Section 6 of Article XIII B of the California Constitution because
12the only costs that may be incurred by a local agency or school
13district will be incurred because this act creates a new crime or
14infraction, eliminates a crime or infraction, or changes the penalty
15for a crime or infraction, within the meaning of Section 17556 of
16the Government Code, or changes the definition of a crime within
17the meaning of Section 6 of Article XIII B of the California
18Constitution.

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