BILL ANALYSIS Ó
AB 361
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Date of Hearing: April 22, 2015
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 361
(Achadjian) - As Amended March 26, 2015
SUBJECT: California Emergency Services Act: nuclear
powerplants
SUMMARY: Extends, until July 1, 2024, the method for funding
state and local costs for emergency service activities
associated with a nuclear powerplant, 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. Specifically, this bill:
1) States "Office" means the Office of Emergency Services (Cal
OES).
2) States "Previous fiscal year" means the fiscal year
immediately prior to the current fiscal year.
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3) States "Utility" means an "electrical corporation" as
defined in Section 218 of the Public Utilities Code.
4) Provides that State and local costs to carry out activities
pursuant to this bill and the Radiation Protection Act of 1999
that are not reimbursed by federal funds shall be borne by a
utility operating a nuclear powerplant with a generating
capacity of 50 megawatts or more.
5) States that the Public Utilities Commission (PUC) shall
develop and transmit to the office an equitable method of
assessing a utility operating a powerplant for its reasonable
share of state agency costs, as specified.
6) States that each local government involved shall submit a
statement of its costs, as required, to Cal OES.
7) States that upon notification by Cal OES, from time to time,
of the amount of its share of the actual or anticipated state
and local agency costs, a utility shall pay this amount to the
Controller for deposit in the Nuclear Planning Assessment
Special Account (NPASA), which is continued in existence, for
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allocation by the Controller, upon appropriation by the
Legislature, to carry out activities pursuant to this bill and
Radiation Protection Act of 1999.
8) Provides upon appropriation by the Legislature, the
Controller may disburse up to 80 percent of a fiscal year
allocation from the NPASA, in advance, for anticipated local
expenses, as defined in law. Cal OES shall review program
expenditures related to the balance of funds in the account and
the Controller shall pay the portion, or the entire balance, of
the account, based upon those approved expenditures.
9) Provides that the total annual disbursement of state costs
from a utility operating a nuclear powerplant within the state
for activities pursuant to this bill and the Radiation
Protection Act (RPA) of 1999, shall not exceed the lesser of the
actual costs or the maximum funding levels, as defined in
current law.
10) Provides that the total annual disbursement for each fiscal
year, commencing July 1, 2009, of local costs from a utility
shall not exceed the lesser of the actual costs or the maximum
funding levels established in this section, in support of
activities pursuant to this bill and RPA. The maximum annual
amount available for disbursement for local costs, as defined,
shall, for the fiscal year beginning July 1, 2009, be one
million seven hundred thirty-two thousand dollars ($1,732,000)
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for the Diablo Canyon site.
11) States that the amounts paid by a utility under this bill
shall be allowed for ratemaking purposes by the PUC.
12) Provides that the amounts available for disbursement for
state and local costs as specified in this bill shall be
adjusted and compounded each fiscal year by the larger of the
percentage change in the prevailing wage for San Luis Obispo
County employees, not to exceed 5 percent, or the percentage
increase in the California Consumer Price Index from the
previous fiscal year.
13) States that until July 1, 2024, the amounts available for
disbursement for state and local costs as specified in this bill
shall be cumulative biennially. Any unexpended funds from a year
shall be carried over for one year. The funds carried over from
the previous year may be expended when the current year's
funding cap is exceeded.
14) Provides that this bill shall become operative on July 1,
2019 and shall become inoperative on July 1, 2024, and, as of
January 1, 2025, is repealed. When this bill becomes
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inoperative, any amounts remaining in the special account shall
be refunded to a utility contributing to it, to be credited to
the utility's ratepayers.
EXISTING LAW:
1) Grants the California Public Utilities Commission (PUC) with
the regulatory authority over public utilities, including
electrical corporations.
2) Requires the development and maintenance of a nuclear
powerplant emergency response program by state and local
governments based on federal and state criteria.
3) The California Emergency Services Act (Act) authorizes local
government entities to create disaster councils by ordinance and
in turn develop disaster plans specific to their jurisdictions.
4) The RPA 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 Cal OES responsible for
the coordination and integration of all emergency planning
programs and response plans created pursuant to the RPA.
5) Provides under the Act, until July 1, 2019, a method for
funding state and local costs for carrying out these activities
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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.
6) Requires PUC to equitably allocate the non-reimbursed state
costs associated with the preparation and implementation of the
NPASA between the utilities. Costs for state administration and
reimbursements to local governments are specified, capped, and
paid for by utility customers.
FISCAL EFFECT: Unknown
COMMENTS:
Purpose of the bill : According to the author, existing law
requires utility companies operating a nuclear powerplant to pay
for anticipated state and local agency costs to the State
Controller, into what is called the Nuclear Planning Assessment
Special Account (NPASA). Utility companies pay the actual
expenses up to the maximum allowed under an established funding
cap. The utilities do not pay for these costs directly; rather
they are authorized by the PUC to pass these costs on to
consumers as a function of their utility rates. The expenditure
of these funds is authorized, upon appropriation by the
Legislature, on an annual basis to address planning and response
issues, and administered by Cal OES. The inoperative date of
these provisions ends on July 1, 2019.
Currently, the Diablo Canyon power plant pays into the NPASA but
is scheduled to cease payments into the account on July 1, 2019,
which is before their current license expires in July 1, 2024.
Therefore, the nuclear power plant could still be in operation
without having to contribute to the costs of emergency planning
or response should an emergency occur.
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The author states, "If the power plant was to continue in
operation without funding, then emergency preparedness and
response will be jeopardized. Continuing this account is vital
to assure the maintenance of the State's nuclear emergency
programs, which has been a model program established to
safeguard public health and safety in California."
The author maintains this bill will assist local governments
with the costs associated with emergency planning and response
in areas surrounding the Diablo Canyon site by extending the
"sunset date" of the NPASA from July 1, 2019 to December 31,
2025. This extension will ensure that these critical programs
are funded to match the duration of the nuclear power plant's
license and are vital to our local communities to guarantee that
they have the resources necessary to plan and react to any
emergency.
Background :
In 1979, following the accident at Three Mile Island nuclear
power plant in Pennsylvania, the California State Legislature
mandated that the Cal OES, together with the California
Department of Public Health (CDPH) and affected counties,
investigate the consequences of a serious nuclear power plant
accident. Based on site-specific studies in 1980, Emergency
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Planning Zones (EPZ) around the plant sites were established in
detail and integrated plans were developed. Legislation
mandating the Nuclear Power Plant Program (NPPA) has been
continuous since 1979, enacted as Government Code and Health and
Safety Code sections, called the Radiation Protection Act.
Local governments are also required to develop and maintain
radiological emergency preparedness and response plans to
safeguard the public in the EPZ around a nuclear power plant and
to take specified actions within that zone. Utilities also have
a role to play, including developing and maintaining
radiological emergency preparedness and response plans in
coordination with state and local governments and to coordinate
with state and local governments in maintaining nuclear power
plant education information.
Nuclear Power Plant Program :
The Nuclear Power Plant Program (NPPP) covers emergency planning
issues related to the States one operating nuclear power plant
Diablo Canyon Power Plant (DCPP) and one decommissioning nuclear
power plant - San Onofre Nuclear Generating Station (SONGS).
The NPPP also continues coordination with the two retired
nuclear power plants - Humboldt Bay Nuclear Power Plant and
Rancho Seco Nuclear Generating Station (RSNGS). The NPPP works
with federal, state, local and utility officials in emergency
planning, training and exercises to test emergency readiness.
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Emergency Response and Recovery :
In the event of an emergency at one of Californias nuclear power
plants, Cal OES is the lead agency to mobilize state resources
and to request and coordinate federal resources to mitigate the
effects of radiation released into the atmosphere. CDPH will
provide radiological assessments during all phases of such
emergencies and will be the technical lead during "ingestion
pathway" and "recovery" phases of an emergency.
Emergency Plans : Federal regulations require nuclear power
plants, states and surrounding counties have a federally tested
and approved emergency response plan. The Federal Emergency
Management Agency (FEMA) is responsible for ensuring adherence
to emergency planning and exercise requirements by emergency
response organizations outside of the power plant boundaries,
which is referred to as "offsite." Radiation releases are
monitored and controlled by strict Environmental Protection
Agency (EPA) guidelines to keep the public and emergency
responders safe.
Emergency Notification : In the event of a nuclear power plant
(NPP) incident, the power plant (utility company) immediately
notifies the California State Warning Center (CSWC) and counties
in the Plume Exposure Pathway Emergency Planning Zones (EPZ).
The CSWC continues the notification process to other agencies
according to procedures for NPP incidents. The power plant
provides the emergency classification level and plant
information to the CSWC for updates along the notification
chain.
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Emergency Classification Levels (ECL) : Federal guidelines
classify emergency conditions at U.S. nuclear power plants into
four levels. They are listed below in order from the least to
the most serious: Notification of Unusual Event, Alert, Site
Area Emergency and General Emergency.
Emergency Planning Zones : The EPZ is the area surrounding a
nuclear power plant for which plans/procedures exist to ensure
that prompt and effective actions occur to protect the health
and safety of the public in case of an incident.
Double referral : This bill has been double referred and should
it pass will be sent to the Assembly Committee on Utilities and
Commerce.
Prior legislation : AB 2791 (AB 2791 (Governmental Organization
Committee), Chapter 618, Statutes of 2010. Made various
statutory and technical changes to reflect the merger of the
former Office of Emergency Services and the former Office of
Homeland Security into the California Emergency Management
Agency in January 1, 2009.
AB 292 (Blakeslee), Chapter 492, Statutes of 2007. Extended the
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sunset date on the NPASA from July 1, 2009 to July 1, 2019 and
the repeals date from January 1, 2010 to January 1, 2020.
Revises the funding levels payable from the account beginning
fiscal year 2009-10. Required that any money remaining in the
account when it becomes inoperative be returned to the
contributing utility for rebates to the ratepayers.
SB 2141 (O'Connell), Chapter 543, Statutes of 1998. Stipulated
that OES shall continue to have prime responsibility for
coordinating and integrating all levels of emergency planning
and response within a "joint" state and local government
decisionmaking process. Modified the method for providing
funding to those state agencies responsible with implementing
various aspects of the NPASA. Authorized the State Controller,
upon appropriation by the Legislature, to advance up to 80% of a
fiscal year allocation from the Account to the agencies for
anticipated local costs. Extended, by 10 years, the current
sunset (July 1, 1999).
SB 876 (Hart), Chapter 759, Statutes of 1993. Updated the
state's NPERP by revising and reallocating responsibilities
between the Office of Emergency Response, Department of Health
Services, utilities, local jurisdictions, and other agencies.
The bill extended the sunset on the NPASA until 7/1/99 and
authorizes payment from the account of specific sums of money
over the next five years to state and local agencies for the
purposes of implementing the plan. Revenues to the account are
derived from fees imposed on parties owning and operating
nuclear powerplants.
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REGISTERED SUPPORT / OPPOSITION:
Support
Physicians for Social Responsibility - Los Angeles
Santa Lucia Chapter of the Sierra Club
Opposition
None on file
Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531
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