Amended in Senate September 3, 2015

Amended in Assembly May 28, 2015

Amended in Assembly April 29, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 361


Introduced by Assembly Member Achadjian

(begin deleteCoauthor: Senator end deletebegin insertCoauthors: Senators Jackson and end insertMonning)

February 17, 2015


An act to add and repeal Section 8610.5 of the Government Code,begin insert and to add Section 712 to the Public Utilities Code,end insert relating tobegin delete emergency services.end deletebegin insert electricity, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 361, as amended, Achadjian. begin deleteCalifornia Emergency Services Act: nuclear end deletebegin insertNuclear end insertpowerplants.

Existing law, the California Emergency Services Act, authorizes local government entities to create disaster councils by ordinance and in turn develop disaster plans specific to their jurisdictions. Existing law, the Radiation Protection Act of 1999, requires local governments to develop and maintain radiological emergency preparedness and response plans to safeguard the public in the emergency planning zone around a nuclear powerplant, and generally makes the Office of Emergency Services responsible for the coordination and integration of all emergency planning programs and response plans created pursuant to the Radiation Protection Act of 1999. The California Emergency Services Act, until July 1, 2019, prescribes a method for funding state and local costs for carrying out these activities that are not reimbursed by federal funds, with the costs borne by utilities operating nuclear powerplants with a generating capacity of 50 megawatts or more.

This bill, operative July 1, 2019, would extend, until August 26, 2025, the method for funding state and local costs for emergency service activities associated with a nuclear powerplant, as described above, with respect to a utility operating a nuclear powerplant with a generating capacity of 50 megawatts or more, thereby extending an amount, as specified, available for disbursement for local costs for the Diablo Canyon site.

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the commission, for purposes of establishing rates for any electrical corporation, to disallow expenses reflecting the direct or indirect costs resulting from any unreasonable error or omission relating to the planning, construction, or operation of any portion of the corporation’s plant which cost, or is estimated to have cost, more than $50,000,000, including any expenses resulting from delays caused by any unreasonable error or omission. For these purposes, “planning” includes activities related to the initial and subsequent assessments of the need for a plant construction project and includes investigation and interpretation of environmental factors such as seismic conditions.

end insert
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This bill would require the commission to convene, or continue, until August 26, 2025, an independent peer review panel to conduct an independent review of enhanced seismic studies and surveys of the Diablo Canyon Units 1 and 2 powerplant, including the surrounding areas of the facility and areas of nuclear waste storage.

end insert
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This bill would declare that it is to take effect immediately as an urgency statute.

end insert

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 8610.5 is added to the Government Code,
2to read:

P3    1

8610.5.  

(a) For purposes of this section:

2(1) “Office” means the Office of Emergency Services.

3(2) “Previous fiscal year” means the fiscal year immediately
4prior to the current fiscal year.

5(3) “Utility” means an “electrical corporation” as defined in
6Section 218 of the Public Utilities Code.

7(b) (1) State and local costs to carry out activities pursuant to
8this section and Chapter 4 (commencing with Section 114650) of
9Part 9 of Division 104 of the Health and Safety Code that are not
10reimbursed by federal funds shall be borne by a utility operating
11a nuclear powerplant with a generating capacity of 50 megawatts
12or more.

13(2) The Public Utilities Commission shall develop and transmit
14to the office an equitable method of assessing a utility operating
15a powerplant for its reasonable share of state agency costs specified
16in paragraph (1).

17(3) Each local government involved shall submit a statement
18of its costs specified in paragraph (1), as required, to the office.

19(4) Upon notification by the office, from time to time, of the
20amount of its share of the actual or anticipated state and local
21agency costs, a utility shall pay this amount to the Controller for
22deposit in the Nuclear Planning Assessment Special Account,
23 which is continued in existence, for allocation by the Controller,
24upon appropriation by the Legislature, to carry out activities
25pursuant to this section and Chapter 4 (commencing with Section
26114650) of Part 9 of Division 104 of the Health and Safety Code.
27The Controller shall pay from this account the state and local costs
28relative to carrying out this section and Chapter 4 (commencing
29with Section 114650) of Part 9 of Division 104 of the Health and
30Safety Code, upon certification of the costs by the office.

31(5) Upon appropriation by the Legislature, the Controller may
32disburse up to 80 percent of a fiscal year allocation from the
33Nuclear Planning Assessment Special Account, in advance, for
34anticipated local expenses, as certified by the office pursuant to
35paragraph (4). The office shall review program expenditures related
36to the balance of funds in the account and the Controller shall pay
37the portion, or the entire balance, of the account, based upon those
38approved expenditures.

39(c) (1) The total annual disbursement of state costs from a utility
40operating a nuclear powerplant within the state for activities
P4    1pursuant to this section and Chapter 4 (commencing with Section
2114650) of Part 9 of Division 104 of the Health and Safety Code,
3shall not exceed the lesser of the actual costs or the maximum
4funding levels established in this section, subject to subdivisions
5(e) and (f).

6(2) Of the annual amount of two million forty-seven thousand
7dollars ($2,047,000) for the 2009-10 fiscal year, the sum of one
8million ninety-four thousand dollars ($1,094,000) shall be for
9support of the office for activities pursuant to this section and
10Chapter 4 (commencing with Section 114650) of Part 9 of Division
11104 of the Health and Safety Code, and the sum of nine hundred
12fifty-three thousand dollars ($953,000) shall be for support of the
13State Department of Public Health for activities pursuant to this
14section and Chapter 4 (commencing with Section 114650) of Part
159 of Division 104 of the Health and Safety Code.

16(d) (1) The total annual disbursement for each fiscal year,
17commencing July 1, 2009, of local costs from a utility shall not
18exceed the lesser of the actual costs or the maximum funding levels
19established in this section, in support of activities pursuant to this
20section and Chapter 4 (commencing with Section 114650) of Part
219 of Division 104 of the Health and Safety Code. The maximum
22annual amount available for disbursement for local costs, subject
23to subdivisions (e) and (f), shall, for the fiscal year beginning July
241, 2009, be one million seven hundred thirty-two thousand dollars
25($1,732,000) for the Diablo Canyon site.

26(2) The amounts paid by a utility under this section shall be
27allowed for ratemaking purposes by the Public Utilities
28Commission.

29(e) The amounts available for disbursement for state and local
30costs as specified in this section shall be adjusted and compounded
31each fiscal year by the larger of the percentage change in the
32prevailing wage for San Luis Obispo County employees, not to
33exceed 5 percent, or the percentage increase in the California
34Consumer Price Index from the previous fiscal year.

35(f) Through the inoperative date specified in subdivision (h),
36the amounts available for disbursement for state and local costs
37as specified in this section shall be cumulative biennially. Any
38unexpended funds from a year shall be carried over for one year.
39The funds carried over from the previous year may be expended
40when the current year’s funding cap is exceeded.

P5    1(g) This section shall become operative on July 1, 2019.

2(h) This section shall become inoperative on August 26, 2025,
3and, as of January 1, 2026, is repealed.

4(i) When this section becomes inoperative, any amounts
5remaining in the special account shall be refunded to a utility
6contributing to it, to be credited to the utility’s ratepayers.

7begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 712 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
8read:end insert

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9

begin insert712.end insert  

(a) The commission shall convene, or continue, until
10August 26, 2025, an independent peer review panel to conduct an
11independent review of enhanced seismic studies and surveys of
12the Diablo Canyon Units 1 and 2 powerplant, including the
13surrounding areas of the facility and areas of nuclear waste
14storage.

15(b) The independent peer review panel shall contract with the
16Energy Commission, the California Geological Survey of the
17Department of Conservation, the California Coastal Commission,
18the Alfred E. Alquist Seismic Safety Commission, the Office of
19Emergency Services, and the County of San Luis Obispo to
20participate on the panel and provide expertise.

21(c) The independent peer review panel shall review the seismic
22studies and hold public meetings.

23(d) The commission shall make reports by the independent peer
24review panel publicly available on the Internet Web site maintained
25by the commission.

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26begin insert

begin insertSEC. 3.end insert  

end insert
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This act is an urgency statute necessary for the
27immediate preservation of the public peace, health, or safety within
28the meaning of Article IV of the Constitution and shall go into
29immediate effect. The facts constituting the necessity are:

end insert
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30The Public Utilities Commission in Decision 10-08-003 (August
3112, 2010) convened an independent peer review panel to review
32the seismic studies conducted on behalf of Pacific Gas and Electric
33Company relative to the Diablo Canyon Units 1 and 2 powerplant.
34The independent peer review panel, in addition to providing
35 valuable expertise to the commission in evaluating the seismic
36studies, also operates to assure the public that the seismic studies
37are being performed in an appropriate manner. Because (1) the
38commission’s current contracts for the independent peer review
39panel are set to expire on November 30, 2015, the Diablo Canyon
40Units 1 and 2 powerplant is authorized to operate until August 26,
P6    12025, by the federal Nuclear Regulatory Commission, and there
2continues to be enhanced seismic studies and surveys conducted
3that warrant review by the independent peer review panel to ensure
4the safety of the public, and (2) continuing the Nuclear Planning
5Assessment Special Account beyond the July 1, 2019, expiration
6date is vital to provide the public assurance that the maintenance
7of the state’s nuclear emergency programs is in place, and will
8provide certainty for emergency planning and response
9preparedness should an emergency occur, it is necessary that this
10act take effect immediately.

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