BILL ANALYSIS Ó SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS Senator Ben Hueso, Chair 2015 - 2016 Regular Bill No: AB 361 Hearing Date: 7/7/2015 ----------------------------------------------------------------- |Author: |Achadjian | |-----------+-----------------------------------------------------| |Version: |5/28/2015 As Amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Jay Dickenson | | | | ----------------------------------------------------------------- SUBJECT: California Emergency Services Act: nuclear powerplants DIGEST: This bill extends the sunset date on statute requiring a utility that operates a nuclear powerplant to fund state and local emergency response. ANALYSIS: Existing law: 1)Defines the roles and responsibilities of state and local agencies in preparing for and responding to accidents at nuclear powerplants. (Health and Safety Code §§114650 - 114685) 2)Requires a utility operating a nuclear powerplant to cover state and local costs, not reimbursed by federal funds, to prepare for and respond to accidents at nuclear powerplants. 3)Provides a method by which the California Public Utilities Commission (CPUC) is to assess the reasonable share for such an activity and directs the Office of Emergency Services to periodically notify a utility of those costs. 4)Requires such a utility to pay the assessed amount, to be paid by utility customers, to the Controller for deposit in the Nuclear Planning Assessment Special Account, the funds of which, upon appropriation, cover state and local costs, up to specified caps, to prepare for and respond to accidents at nuclear power plants. AB 361 (Achadjian) Page 2 of ? 5)Sunsets these provisions on July 1, 2019. (Government Code §8610.5) This bill: 1)Extends the sunset date to August 26, 2025. 2)Revises language specifying cost caps to refer to only the Diablo Canyon nuclear facility, the state's lone operating nuclear powerplant. Background Current state law requires a utility that operates a nuclear power plant periodically to pay an amount, determined by the CPUC, into the Nuclear Special Assessment Account. Funds in the account are to cover the state and local costs to prepare for and respond to accidents at nuclear powerplants. The statute requiring such utilities to pay into the fund sunsets on July 1, 2019. There remains one operating nuclear powerplant in California - Pacific Gas and Electric's (PG&E) Diablo Canyon Power Plant. The power production facility and support operations sit on approximately 900 acres adjacent to the Pacific Ocean between Avila Beach and Montano del Oro State Park. According to PG&E, the plant produces approximately 10 percent of California's energy load and about 20 percent of PG&E's overall electricity production. The powerplant is licensed by the federal Nuclear Regulatory Commission (NRC) to operate until 2024 and 2025, respectively, for units 1 and 2. In 2009, PG&E filed an application with NRC to extend Diablo Canyon's operation by 20 years. This bill seeks to align the statutory requirement that PG&E fund state and local emergency response to an accident at a nuclear powerplant with the existing operating license for PG&E's nuclear facility. Prior/Related Legislation AB 292 (Blakeslee, Chapter 492, Statutes of 2007) extended the sunset date, from July 1, 2009 to July 1, 2019, on the requirement that a utility that operates a nuclear powerplant fund state and local emergency response. FISCAL EFFECT: Appropriation: No Fiscal AB 361 (Achadjian) Page 3 of ? Com.: Yes Local: No PRIOR VOTES: Senate Governmental Organization Committee (12-0) Assembly Floor (75-0) Assembly Appropriations Committee (17-0) Assembly Utilities and Commerce Committee (15-0) Assembly Governmental Organization Committee (20-0) SUPPORT: Alliance for Nuclear Responsibility (source) County of San Luis Obispo County of Santa Barbara Mothers for Peace Pacific Gas and Electric Company Physicians for Social Responsibility Los Angeles Sierra Club - Santa Lucia Chapter 8 individuals OPPOSITION: None received ARGUMENTS IN SUPPORT: According to the sponsor, the state should require a utility that operates a nuclear powerplant to fund state and local emergency response to a nuclear accident at least as long as the powerplant continues to operate. -- END --