BILL ANALYSIS                                                                                                                                                                                                    ”



                                                                       AB 361


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          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  |                   |
          |                |      |HernŠndez,             |                   |
          |                |      |                       |                   |
          |                |      |                       |                   |
          |                |      |Jones-Sawyer, Levine,  |                   |
          |                |      |Mayes, Perea, Salas,   |                   |
          |                |      |Steinorth, Waldron,    |                   |
          |                |      |Wilk                   |                   |
          |                |      |                       |                   |
          |----------------+------+-----------------------+-------------------|
          |Utilities       |15-0  |Rendon, Patterson,     |                   |
          |                |      |Achadjian, Bonilla,    |                   |
          |                |      |Burke, Dahle, Eggman,  |                   |
          |                |      |Cristina Garcia,       |                   |
          |                |      |Hadley,                |                   |
          |                |      |                       |                   |








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          |                |      |                       |                   |
          |                |      |Roger HernŠndez,       |                   |
          |                |      |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.   








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            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  








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            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  








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            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  








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          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  








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          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  








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          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:                                               








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          Eric Johnson / G.O. / (916) 319-2531  FN: 0000795