BILL ANALYSIS Ó AB 361 Page 1 ASSEMBLY THIRD READING AB 361 (Achadjian) As Amended May 28, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+-----------------------+-------------------| |Governmental |20-0 |Gray, Linder, | | |Organization | |Achadjian, Alejo, | | | | |Bigelow, Cooley, | | | | |Cooper, Daly, Cristina | | | | |Garcia, Eduardo | | | | |Garcia, Gipson, Roger | | | | |Hernández, | | | | | | | | | | | | | | |Jones-Sawyer, Levine, | | | | |Mayes, Perea, Salas, | | | | |Steinorth, Waldron, | | | | |Wilk | | | | | | | |----------------+------+-----------------------+-------------------| |Utilities |15-0 |Rendon, Patterson, | | | | |Achadjian, Bonilla, | | | | |Burke, Dahle, Eggman, | | | | |Cristina Garcia, | | | | |Hadley, | | | | | | | AB 361 Page 2 | | | | | | | |Roger Hernández, | | | | |Obernolte, Quirk, | | | | |Santiago, Ting, | | | | |Williams | | | | | | | |----------------+------+-----------------------+-------------------| |Appropriations |17-0 |Gomez, Bigelow, Bonta, | | | | |Calderon, Chang, Daly, | | | | |Eggman, Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, Jones, | | | | |Quirk, Rendon, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- SUMMARY: Extends the sunset date for the Nuclear Planning Assessment Special Account (NPASA) from July 1, 2019, to August 26, 2025, to continue funding emergency service programs and planning activities for the Diablo Canyon Power Plant in San Luis Obispo County. Specifically, this bill: 1)Provides that state and local costs to carry out activities pursuant to this bill and the Radiation Protection Act of 1999 (RPA) 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. 2)States that the Public Utilities Commission (PUC) shall develop and transmit to the Office of Emergency Services (Cal OES) an equitable method of assessing a utility operating a powerplant for its reasonable share of state agency costs, as specified. AB 361 Page 3 Provides that each local government involved shall submit a statement of its costs, as required, to Cal OES. The amounts paid by a utility shall be allowed for ratemaking purposes by PUC. 3)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 State Controller (Controller) for deposit in the Nuclear Planning Assessment Special Account (NPASA), which is continued in existence, for allocation by the Controller, upon appropriation by the Legislature, to carry out activities pursuant to this bill and the RPA. 4)Provides upon appropriation by the Legislature, the Controller may disburse up to 80% 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. 5)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 $1.732 million for the Diablo Canyon site. 6)Provides that the annual amount of $2.047 million for the 2009-10 fiscal year, the sum of $1.094 million shall be for support of the office for activities, as defined, and the sum of $953,000 shall be for support of the State Department of Public AB 361 Page 4 Health, as specified. 7)Provides that this bill shall become operative on July 1, 2019, and shall become inoperative on August 26, 2025, and, as of January 1, 2026, is repealed. When this bill becomes 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 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 that are not reimbursed by federal funds, with the costs borne by AB 361 Page 5 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: According to the Assembly Appropriations Committee, the NPASA had expenditures of approximately $5.5 million per year since FY 2011-12, funded entirely through regulatory fees. 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 Controller, into what is called the 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 AB 361 Page 6 response should an emergency occur. 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 August 26, 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 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 AB 361 Page 7 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 state's 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. NPPP works with federal, state, local and utility officials in emergency planning, training, and exercises to test emergency readiness. 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. In the event of an emergency at one of California's 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. Prior legislation: 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 AB 361 Page 8 the California Emergency Management Agency in January 1, 2009. AB 292 (Blakeslee), Chapter 492, Statutes of 2007. Extended the 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 decision making 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 July 1, 1999, 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. Analysis Prepared by: AB 361 Page 9 Eric Johnson / G.O. / (916) 319-2531 FN: 0000795