RES-2015-145 RESOLUTION NO. 2015- 145
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AUTHORIZING THE COMMENCEMENT OF
DECOMMISSIONING OF UNITS 2 AND 3 OF THE SAN
ONOFRE NUCLEAR GENERATING STATION EFFECTIVE
JUNE 7, 2013.
WHEREAS, the City of Anaheim ( "Anaheim ") is a party to the San Onofre Units
2 and 3 Participation Agreement, as amended, effective November 1, 1977, with Southern
California Edison Company ( "Edison "), San Diego Gas & Electric Company ( "SDG &E "), and
the City of Riverside ( "Riverside "), pursuant to which, among other things, Edison sold certain
undivided ownership interests in the San Onofre Nuclear Generating Station ( "SONGS ") Unit 2,
Unit 3, and the common facilities (collectively "Units 2 and 3 ") to Anaheim and Riverside; and
WHEREAS, Unit 2 was placed in commercial operation on August 18, 1983, and
Unit 3 was placed in commercial operation on April 1, 1984; and
WHEREAS, the United States Nuclear Regulatory Commission ( "NRC "), an
agency of the United States Government, pursuant to the Atomic Energy Act of 1954, as
amended, and the Energy Reorganization Act of 1974, promulgated regulations in Title 10,
Chapter I of the Code of Federal Regulations, Part 50, which require holders of nuclear energy
generating licenses issued pursuant to 10 CFR Part 50 to provide assurance, by means of an
external trust, that funds will be available when needed for required decommissioning activities;
and
WHEREAS, as a former owner of an undivided 3.16% ownership interest in
SONGS Units 2 and 3, Anaheim holds NRC Facility Operating License Nos. NPF -10 (Unit 2)
and NPF -15 (Unit 3) and entered into the Decommissioning Trust Fund Agreement dated
November 6, 1990 ( "Trust Fund ") to provide financial assurance for the ultimate
decommissioning of SONGS Units 2 and 3; and
WHEREAS, in response to a 2003 determination by Edison, as operating agent
for the co- owners, that a significant capital project was needed to replace the aging steam
generators in SONGS Units 2 and 3, Anaheim elected to proceed under a clause in the February
26, 1987, Second Amended San Onofre Operating Agreement, as amended ( "Operating
Agreement "), that allowed co- owners the option to assign their respective ownership shares to
Edison rather than continue in any major investment of capital; and
WHEREAS, this election resulted in a Settlement Agreement between Edison and
Anaheim, which was approved by City Council on December 20, 2005 ( "Settlement
Agreement "), whereby among others things (1) Anaheim transferred its 3.16% ownership
interest in SONGS to Edison, (2) Anaheim had no further obligation to pay operating and capital
expenses once its ownership interest teiiiiinated on December 29, 2006, and (3) Anaheim
continued to be a licensee on the SONGS Units 2 and 3 licenses issued by the NRC; and
WHEREAS, pursuant to both the Operating Agreement and the Settlement
Agreement, Anaheim remained obligated to pay for its pro -rata share of decommissioning costs
when SONGS Units 2 and 3 cease operations and are permanently shut down; and
WHEREAS, on June 12, 2013, Edison submitted to the NRC a Certification of
Permanent Cessation of Power Operations providing notice that it had permanently ceased power
operation of SONGS Units 2 and 3 on June 7, 2013, and thereby beginning the decommissioning
process; and
WHEREAS, on September 23, 2014 in accordance with 10 CFR Part 50, Edison,
as the primary NRC license holder, submitted to the NRC an Irradiated Fuel Management Plan
( "IFMP "), Site Specific Decommissioning Cost Estimate ( "DCE "), and Post - Shutdown
Decommissioning Activities Report ( "PSDAR "); and
WHEREAS, pursuant to the terms of the Operating Agreement and the Settlement
Agreement, the SONGS participants will commence decommissioning activities for SONGS
Unit 2 and 3 effective June 7, 2013; and
WHEREAS, in order to draw on the Trust Fund, the City Council must make a
determination that Anaheim is required to commence decommissioning of SONGS Unit 2, Unit
3, and the common facilities and must authorize the commencement of decommissioning
effective June 7, 2013.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Anaheim as follows:
1. The City Council hereby determines, pursuant to the teens of the Second
Amended San Onofre Operating Agreement and the Settlement Agreement, that Anaheim is
required to commence decommissioning of San Onofre Nuclear Generating Station Unit 2, Unit
3, and the common facilities.
2. The City Council, on behalf of the City of Anaheim and no others, hereby
authorizes the commencement of decommissioning of San Onofre Nuclear Generating Station
Unit 2, Unit 3, and the common facilities located in San Diego County, California effective June
7, 2013.
3. The Public Utilities General Manager, the Public Utilities Assistant General
Manager - Power Supply, the City Clerk, and the other officers, employees and agents of the
City of Anaheim are hereby authorized and directed, for and in the name of the City of Anaheim,
to do any and all things and to take all actions, including execution, certification, and /or delivery,
as required, of any and all such documents, certificates, notices, consents, disclosures, plans,
reports, filings, declarations, and compliance submittals which they, or any of them individually,
may deem necessary, appropriate, or advisable in order to commence decommissioning of San
Onofre Nuclear Generating Station Unit 2, Unit 3, and the common facilities and participate in
San Onofre Nuclear Generating Station decommissioning activities and undertakings.
2
THE FOREGOING RESOLUTION was approved and adopted by the City
Council of the City of Anaheim at a regular meeting of said City Council held on the 7th day
of April , 2015, by the following roll call vote:
AYES: Council Members Kring, Murray, Brandman and Vanderbilt
NOES: None
ABSENT: None
ABSTAIN: Mayor Tait
CITY OF ANAHEIM____
t
/7--- ��
MAYOR OF THE CITY OF ANAHEIM
AT EST
CITY CLERK O THE CITY OF ANAHEIM
108319
3