PRINTER'S NO. 2133
No. 1743 Session of 1989
INTRODUCED BY ITKIN AND J. L. WRIGHT, JUNE 20, 1989
REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 20, 1989
AN ACT
1 Creating a fee system to cover the costs related to the
2 establishment of a low-level radioactive waste disposal
3 regional facility in Pennsylvania.
4 TABLE OF CONTENTS
5 Chapter 1. General Provisions
6 Section 101. Short title.
7 Section 102. Legislative findings and purpose.
8 Section 103. Definitions.
9 Chapter 3. Regional Facility Siting Fund
10 Section 301. Regional Facility Siting Fund.
11 Section 302. Fund contribution.
12 Section 303. Reconciliation of control account.
13 Section 304. Records and audits.
14 Section 305. Default.
15 Section 306. Withdrawal from Compact.
16 Section 307. Participation in regulatory proceedings.
17 Section 308. Retention of records.
18 Section 309. Construction.
1 Section 310. Expiration of fund.
2 Chapter 11. Miscellaneous Provisions
3 Section 1101. Retroactivity.
4 Section 1102. Effective date.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 CHAPTER 1.
8 GENERAL PROVISIONS
9 Section 101. Short title.
10 This act shall be known and may be cited as the Low-Level
11 Radioactive Waste Disposal Regional Facility Act.
12 Section 102. Legislative findings and purpose.
13 (a) Findings.--The General Assembly finds:
14 (1) That the Low-Level Radioactive Waste Policy
15 Amendments Act of 1985 and the Appalachian States Low-Level
16 Radioactive Waste Compact Law, adopted pursuant thereto,
17 requires the Commonwealth to timely provide a regional
18 facility for disposal of low-level radioactive waste
19 generated within Compact member states; that the waste
20 generators are required, under the terms of the Appalachian
21 States Low-Level Radioactive Waste Compact Law and the Low-
22 Level Radioactive Waste Disposal Act, to pay the costs of
23 developing, establishing, and operating the low-level
24 radioactive waste disposal facility; and that such costs
25 associated with preconstruction development of the facility
26 are estimated to be approximately $33,000,000.
27 (2) That the costs for implementing the nuclear power
28 plant related requirements of the Radiation Protection Act
29 have increased, and such costs are to be covered by power
30 reactor fees.
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1 (3) That those activities which generate low-level
2 radioactive wastes requiring disposal contribute to the
3 health and welfare of the citizens of the Compact member
4 states, and advance payment of funds by certain waste
5 generators will enhance the timely availability of a disposal
6 site and reduce the costs of waste disposal.
7 (b) Purpose.--The General Assembly therefore establishes
8 that the purposes of this act are as follows:
9 (1) To establish a low-level radioactive waste disposal
10 regional facility siting fund which would:
11 (i) Require nuclear power reactor constructors and
12 operators situated in this Commonwealth to pay to the
13 Department of Environmental Resources funds to be
14 utilized for reasonable and proper expenses, subject to
15 limitations set forth herein, that are incurred by the
16 department, its consultants, and the selected regional
17 facility operator in execution of activities required by
18 section 307 of the Low-Level Radioactive Waste Disposal
19 Act.
20 (ii) Authorize and encourage other potential users
21 of the regional facility to make voluntary payments to
22 the department for the purposes stated in subparagraph
23 (i).
24 (2) To provide for the recovery of an equitable portion
25 of funds advanced by persons described under paragraph (1) by
26 allowing them credits against surcharges to be billed to all
27 waste depositors by the department.
28 (3) To increase the existing reactor fees assessed under
29 the Radiation Protection Act to cover the costs of
30 implementing the requirements of the Radiation Protection
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1 Act.
2 Section 103. Definitions.
3 The following words and phrases when used in this act shall
4 have the meanings given to them in this section unless the
5 context clearly indicates otherwise:
6 "Appalachian States Low-Level Radioactive Waste Compact Law."
7 The act of December 22, 1985 (P.L.539, No.120).
8 "Contributor." A person who is mandated to make or who is
9 voluntarily making contributions to the fund.
10 "Department." The Department of Environmental Resources of
11 the Commonwealth.
12 "Fund." The Regional Facility Siting Fund created by this
13 act.
14 "Low-Level Radioactive Waste Disposal Act." The act of
15 February 9, 1988 (P.L.31, No.12).
16 "Low-Level Radioactive Waste Policy Amendments Act of 1985."
17 Public Law 99-240, 99 Stat. 1842, 42 U.S.C. § 2021b et seq.
18 "Radiation Protection Act." The act of July 10, 1984
19 (P.L.688, No.147).
20 "Waste depositor." Any person disposing of low-level
21 radioactive waste in the regional facility during the operative
22 period of this act.
23 CHAPTER 3
24 REGIONAL FACILITY SITING FUND
25 Section 301. Regional Facility Siting Fund.
26 (a) Establishment.--There shall be established within the
27 State Treasury an interest-bearing, non-lapsing, restricted
28 account to be known as the Regional Facility Siting Fund.
29 (b) Deposits.--All mandated and voluntary contributions
30 under this act, together with actual interest earned on these
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1 contributions by the State Treasurer, shall be deposited into
2 the fund. Separate accounting of contributions and actual
3 interest earned thereon shall be continuously maintained for
4 purposes of implementing sections 306 and 310.
5 (c) Appropriation and purpose.--Moneys in the fund are
6 hereby appropriated and, upon authorization of the Governor, may
7 be expended by the department on a continuing basis solely for
8 the following purposes:
9 (1) Reimbursement of expenses incurred by the regional
10 facility operator for regional facility site selection,
11 regional facility design and land purchase activities, but
12 not to include any profit.
13 (2) Fees paid by the department to consultants.
14 (3) Cost of the department for its expenses.
15 (d) Disbursements.--Each disbursement from the fund shall be
16 deemed to be made from both contributions, and actual interest
17 earned thereon, in the same proportion as each bears to the
18 fund's total balance at the time of such disbursement.
19 Section 302. Fund contribution.
20 (a) Maximum fund contribution.--The sum of $33,000,000,
21 exclusive of interest earned or imputed, shall be the maximum
22 amount to be paid by mandated fund contributors. The actual
23 amounts to be paid by mandated fund contributors shall be
24 ratably reduced to the extent that the department determines
25 that an amount less than $33,000,000 suffices for the purposes
26 of this act, to the extent of voluntary contributions received
27 or reasonably anticipated, or to the extent of actual
28 commitment, for the purposes of this act, of financial resources
29 by persons or organizations other than mandated or voluntary
30 contributors. It is the intent of this section that no funds
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1 significantly in excess of those reasonably required to
2 effectuate the purposes of this act be paid into the fund.
3 (b) Mandated fund contributors.--
4 (1) Each person who is constructing or is operating in
5 Pennsylvania, pursuant to a construction permit or operating
6 license issued by the United States Nuclear Regulatory
7 Commission, one or more of the nine nuclear power reactor
8 facilities identified in this subsection, which are expected
9 to produce electric energy for commercial purposes and low-
10 level radioactive waste for significant portions of the
11 functional life of the regional facility, shall pay to the
12 department a mandated contribution in the form of a fee for
13 each such reactor facility in the amount and at such time as
14 follows:
15 Date of required payment Fee per reactor
16 Not later than the 30th day
17 following the effective date
18 of this act................................$133,000
19 July 1, 1989...............................$800,000
20 July 1, 1990.............................$1,200,000
21 July 1, 1991...............................$933,000
22 July 1, 1992...............................$333,000
23 July 1, 1993...............................$264,000
24 (2) The provisions of this subsection shall be
25 applicable to the following nuclear power reactor facilities,
26 which are producing or are reasonably anticipated to produce
27 electric energy for commercial purposes and are generating or
28 are reasonably anticipated to generate low-level radioactive
29 waste throughout a significant portion of the functional life
30 of the regional facility:
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1 (i) Beaver Valley - No. 1
2 (ii) Beaver Valley - No. 2
3 (iii) Limerick - No. 1
4 (iv) Limerick - No. 2
5 (v) Peach Bottom - No. 2
6 (vi) Peach Bottom - No. 3
7 (vii) Susquehanna - No. 1
8 (viii) Susquehanna - No. 2
9 (ix) Three Mile Island - No. 1
10 (c) Voluntary fund contributors.--Any person, other than one
11 required to make fund contributions pursuant to subsection (b),
12 in an Appalachian States Compact member state who anticipates
13 future use of the regional facility may, in one or more of the
14 annual payment periods specified in subsection (b), make a
15 voluntary contribution to the fund by payment to the department.
16 Unless clearly stated otherwise, for the purposes of this act
17 generally, and for the purposes of section 303 specifically, a
18 person making such a voluntary contribution shall, to the extent
19 of that contribution, be regarded without distinction as a
20 mandated contributor. Such designation does not obligate or
21 require future contributions by such persons. Voluntary
22 contributions shall be applied by the department to reduce the
23 fees of mandated contributors on a pro rata basis.
24 (d) Contributor reconciliation accounts.--At all times
25 during the effective period of this act, the department shall
26 maintain a reconciliation ledger consisting of a reconciliation
27 account for each person making a contribution under this
28 section. Contributions by such person, and the imputed
29 interested accrued pursuant to subsection (e), shall be promptly
30 debited to the contributor's reconciliation account. Fee
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1 payments, and imputed interest thereon, by a person who is a
2 mandated contributor for more than one nuclear power reactor
3 facility shall, for the purposes of this act, be merged in a
4 single reconciliation account in the name of such person.
5 (e) Imputed interest.--Mandated and voluntary contributions
6 made under this section shall accrue imputed interest. Such
7 interest shall be computed on an annual basis for the period
8 beginning with the time of receipt of a contribution and ending
9 on each successive June 30th. Such interest shall be simple
10 annual interest at a rate equal to the rate then being imposed
11 by the Department of Revenue for unpaid State taxes due and
12 payable to the Commonwealth. It is the intent of this subsection
13 to properly recognize the time value of funds contributed so as
14 to allow for inclusion of that additional imputed interest in
15 fixing surcharges provided for by section 303. Accordingly,
16 withdrawal from the fund and expenditure by the department of
17 funds contributed under this section shall not be credited
18 against, deducted from, or otherwise cause to diminish the debit
19 balance of contributors' reconciliation accounts on which
20 imputed interest is accrued under this subsection. The imputed
21 interest required by this subsection is a separate and distinct
22 calculation for the purpose of implementing section 303 and
23 shall not, for any purpose or in any circumstance, be regarded
24 as the actual interest on amounts in the fund which may be
25 earned pursuant to section 301(a).
26 (f) Final value of contributions.--For the purposes of
27 determining surcharges and otherwise administering the
28 provisions of section 303, the debit balance in each
29 contributor's reconciliation account as of June 30, 1994,
30 together with imputed interest accrued thereon, shall be
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1 regarded as the final reconciliation account value of each
2 contributor, and the sum of all such contributor's final
3 reconciliation account values shall be regarded as the final
4 reconciliation control account value. No further imputed
5 interest shall be accrued after that date on the final
6 reconciliation account value of each contributor's account.
7 Section 303. Reconciliation of control account.
8 (a) Intent.--It is the intent of this section to provide a
9 procedure to assure that each fund contributor be provided
10 credits, to the extent of its final reconciliation account
11 value, against surcharges to be imposed on all waste depositors
12 under section 315(c) of the Low-Level Radioactive Waste Disposal
13 Act.
14 (b) Reconciliation period for final reconciliation control
15 account.--The final reconciliation account value of each
16 contributor shall be reconciled over ten annual reconciliation
17 periods against any surcharges on waste depositors imposed by
18 the department under section 315(c) of the Low-Level Radioactive
19 Waste Disposal Act. The first annual reconciliation period shall
20 commence with the first day of the first month of the fifth
21 calendar quarter during which waste is deposited in the regional
22 facility.
23 (c) Reconciliation credits.--For each annual reconciliation
24 period, the department shall determine the revenue required by
25 all surcharges to be imposed under section 315(c) of the Low-
26 Level Radioactive Waste Disposal Act and add to such requirement
27 an additional amount equal to one-tenth of the final
28 reconciliation control account value, the sum to be termed the
29 annual reconciliation period revenue. An annual reconciliation
30 period surcharge rate applicable to current reconciliation
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1 period disposal operations shall be then determined by dividing
2 the annual reconciliation period revenue by the total volume of
3 waste deposited in the regional facility by all waste depositors
4 during the preceding 12 months. The annual surcharge rate thus
5 determined shall be multiplied by the volume of waste deposited
6 at the regional facility in the current reconciliation period by
7 each waste depositor and the resulting surcharge assessed upon
8 each such waste depositor. The surcharge assessment of such a
9 waste depositor who is a fund contributor shall be credited in
10 an amount up to one-tenth of its final reconciliation account
11 value. If, in any reconciliation period, the applicable
12 surcharge assessment shall be less than one-tenth of the fund
13 contributor's final reconciliation account value, the difference
14 may be carried over and usable as additional credit against
15 applicable surcharges in the next reconciliation period or
16 alternatively applied to any permit fee imposed under section
17 315(a) of the Low-Level Radioactive Waste Disposal Act.
18 Section 304. Records and audits.
19 (a) Records.--In addition to the particular records and
20 accounts specified elsewhere in this act, the department, at all
21 times during the effective period of this act, shall maintain
22 such additional records and accounts in such form and manner as
23 will allow detailed review, examination and audit, by the
24 Auditor General, of all monetary transactions pursuant to this
25 act.
26 (b) Fiscal audits.--Within 120 days following June 30 of
27 each of the fiscal years 1990 through 1994 and the fiscal year
28 in which the facility begins licensed operations, the department
29 shall furnish to each fund contributor three copies of a
30 financial audit performed in accordance with generally accepted
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1 auditing standards compatible with the most intensive current
2 practices of the Department of the Auditor General. Such audit
3 shall be performed by the Department of the Auditor General.
4 (c) Expenses.--The department may withdraw from the fund
5 such amounts as are reasonably necessary and proper for
6 reimbursement of audit costs.
7 Section 305. Default.
8 (a) Default.--For the purposes of this act, a default shall
9 be deemed to be a material failure to timely make available for
10 waste deposition a functioning regional facility conforming in
11 all material respects to applicable law. In addition to any
12 other such circumstance or set of circumstances, any of the
13 following shall be deemed to be a default:
14 (1) Termination of the contract to be entered into by
15 the department on or about July 1, 1989, with a regional
16 facility operator, prior to submittal to the appropriate
17 Federal agency of a license application for such a facility.
18 (2) Failure by the regional facility operator to
19 commence physical construction of a regional facility by
20 January 1, 1996, at a site having final approval of the
21 Secretary of Environmental Resources.
22 (3) Failure by the department to move forward to site
23 approval and to operate a site where there has been a default
24 by the regional facility operator.
25 (b) Declaration of default.--The Appalachian States Compact
26 Commission may declare a default when a majority of fund
27 contributors request such, setting forth in a written
28 declaration, the circumstances constituting the default.
29 (c) Special rights and remedies.--
30 (1) Upon the declaration of default, the rights and
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1 remedies specified in this subsection shall be available to
2 fund contributors, and duties specified by this subsection
3 shall be imposed on the department.
4 (2) Each fund contributor shall, within 60 days of
5 declaration of default, be refunded a pro rata amount of
6 unexpended contributions, including actual interest earned
7 thereon, remaining in the fund in the proportion that each
8 contributor's contributions to the date bears to the total
9 contributions of all contributors to that date. Contributions
10 in transit or received by the department on or after that
11 date shall not be deposited in the fund, but shall be
12 returned to the sender.
13 (3) The department shall refund to fund contributors all
14 moneys, including the portion thereof attributable to actual
15 interest earned thereon, previously released to the facility
16 operator to the extent that the department has or will
17 receive any or all of such moneys as a result of the default.
18 From time to time, upon recovery of reasonable amounts of
19 such moneys, the department shall refund these moneys to each
20 fund contributor in the same pro rata proportion stated in
21 paragraph (2).
22 (d) Remedies preserved.--Nothing in this section shall be in
23 any way construed to limit the rights and remedies available to
24 a fund contributor at law or equity. In no event shall the
25 department or the Commonwealth be liable for unrecovered
26 expended portions of the fund.
27 Section 306. Withdrawal from Compact.
28 In the event that a Compact member state withdraws from the
29 Compact before June 30, 1994, any person in such Compact member
30 state who has made voluntary contributions shall be entitled to
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1 a refund of such contributions, not to include any actual
2 interest earned on such contributions. The department may,
3 pursuant to section 303, impose additional fees on mandated
4 contributors sufficient to provide the amount to be refunded.
5 This refund shall be paid when such additional fees become
6 available to the department.
7 Section 307. Participation in regulatory proceedings.
8 (a) Department.--Upon request of a contributor that is a
9 public utility, the department may agree to appear in
10 proceedings before or present appropriate submittals to that
11 contributor's public utility regulatory body regarding the
12 contributor's contribution to the fund. A contributor making
13 such request shall compensate the department for its actual
14 costs for travel, lodging and other out-of-pocket or
15 administrative expenses incurred in compliance with this
16 request.
17 (b) Affidavit.--If the department does not appear, it will
18 submit an affidavit providing information relative to such
19 contributions and surcharges relating to the fund and made or
20 imposed under this act.
21 Section 308. Retention of records.
22 The department shall retain, in a reasonably accessible form
23 and place, all records pertaining to contributions, surcharges
24 and reconciliations made under this act for a period of seven
25 years beyond its termination. The department shall permit
26 reasonable access to such records by persons who have paid such
27 contributions or surcharges.
28 Section 309. Construction.
29 This act shall be construed in pari materia with the
30 Appalachian States Low-Level Radioactive Waste Compact Law, the
19890H1743B2133 - 13 -
1 Radiation Protection Act, and the Low-Level Radioactive Waste
2 Disposal Act.
3 Section 310. Expiration of fund.
4 The fund shall expire one year following the last day of the
5 tenth annual reconciliation period pursuant to section 303.
6 Unexpended amounts then remaining in the fund attributable to
7 actual contributions, and exclusive of actual interest earned on
8 such contributions, shall be refunded to each contributor in the
9 proportion that each contributor's contributions to the fund
10 bears to the total of all such contributions. Unexpended amounts
11 then remaining in the fund attributable to actual interest
12 earned on contributions shall be transferred to the Low-Level
13 Waste Fund, as established under the Low-Level Radioactive Waste
14 Disposal Act.
15 CHAPTER 11
16 MISCELLANEOUS PROVISIONS
17 Section 1101. Retroactivity.
18 Section 302 of this act shall be retroactive to July 1, 1989.
19 Section 1102. Effective date.
20 This act shall take effect immediately.
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