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