BILL ANALYSIS Ó
AB 361
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
361 (Achadjian)
As Amended September 3, 2015
2/3 vote. Urgency
--------------------------------------------------------------------
|ASSEMBLY: | 75-0 | June 2, 2015) |SENATE: |40-0 | (September 8, |
| | | | | |2015) |
| | | | | | |
| | | | | | |
--------------------------------------------------------------------
Original Committee Reference: G.O.
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. In addition, requires the Public Utilities
Commission (PUC) 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, as defined.
The Senate amendments:
1)The PUC shall 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
AB 361
Page 2
Units 1 and 2 powerplant, including the surrounding areas of
the facility and areas of nuclear waste storage.
2)Provide the independent peer review panel shall contract with
the Energy Commission, the California Geological Survey of the
Department of Conservation, the California Coastal Commission,
the Alfred E. Alquist Seismic Safety Commission, the Office of
Emergency Services, and the County of San Luis Obispo to
participate on the panel and provide expertise, as specified.
3)Add coauthors.
4)Add urgency clause.
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.
AB 361
Page 3
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 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.
7)Provides that the PUC has regulatory authority over public
utilities, including electrical corporations.
8)Authorizes PUC to fix the rates and charges for every public
utility, and requires that those rates and charges be just and
reasonable. Requires PUC, 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, as specified.
AS PASSED BY THE ASSEMBLY, this bill extended 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.
FISCAL EFFECT: According to the Senate Appropriations
Committee, total revenues of $8.5 million to the NPASA (special)
to cover OES's costs between 2019 and 2024. In addition, a
AB 361
Page 4
pass-through of $13.3 million to the NPASA (special) that is
collected and distributed by OES on behalf of local agencies for
their costs between 2019 and 2024.
COMMENTS: This bill as amended is consistent with Assembly
actions.
Purpose of this bill: According to the author, the Diablo
Canyon power plant pays into the NPASA under the OES. They are
currently scheduled to stop paying into the account on July 1,
2019, which is before their current license expires on August
26, 2025. Therefore, the author argues, "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."
The author further argues that, "if the plant were 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."
Nuclear Power Plant Regulation: In 1979, following the accident
at Three Mile Island nuclear power plant in Pennsylvania, the
California State Legislature mandated that 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 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
AB 361
Page 5
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.
Emergency Response and Recover: In the event of an emergency at
one of California's nuclear power plants, 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. The CDPH would be responsible for
providing radiological assessments during all phases of such
emergencies and will be the technical lead during "ingestion
pathway" and "recovery" phases of an emergency.
Prior Legislation: 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. This bill also revised the funding levels
payable from the account beginning fiscal year 2009-10 and
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).
AB 361
Page 6
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:
Eric Johnson / G.O. / (916) 319-2531 FN:
0002235