WORKING DRAFT

HOUSE BILL NO.

Nuclear fuel rod storage.

Sponsored by: Joint Revenue Interim Committee

A BILL

for

AN ACT relating to taxation and revenue; providing for the taxation of a high-level radioactive waste storage facility as specified; providing for negotiation of benefits as specified; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1. W.S. 35-11-1503(d), 35-11-1504(a), (b)(iv)(intro), 35-11-1505 and 35-11-1506(a), (b)(iii), (iv)(D) and by creating a new paragraph (v) are amended to read:

35-11-1503. Preparation of the report by the department.

(d) The report shall include a proposed benefits agreement, which shall be negotiated with the person who proposes to site the high-level radioactive waste storage facility by the department of revenue with cooperation from other appropriate state agencies as requested by the department of revenue.

35-11-1504. Public review of any report for the siting of a high-level radioactive waste storage facility; submission to legislature.

(a) The department shall submit any report prepared under W.S. 35-11-1503 for public review as required under this section. The public shall be afforded an opportunity to review the report and provide comments to the director. To the extent practicable, the director shall hold public hearings throughout the state to receive comments on the report. The portion of the report containing the proposed benefits agreement prepared pursuant to W.S. 35-11-1503(d) shall be made available for public review under a format agreed upon by the department of revenue and the person undertaking the siting.

(b) Following any public review of the report as provided in this section, but in no event before the United States department of energy issues a final environmental impact statement with the Yucca mountain site recommendation submitted to the president of the United States along with a license application for Yucca mountain as the permanent repository for high-level radioactive waste, the director shall submit the report to the legislature. The submission by the director shall include:

(iv) The proposed benefits agreement, which shall be negotiated by the department of revenue with cooperation from other appropriate state agencies, including but not limited to:

35-11-1505. Benefits agreement.

(a) No benefits agreement shall be finally effective until authorized by the legislature under W.S. 35-11-1506. The benefits agreement shall be sufficient to offset adverse environmental, public health, social or economic impacts to the state as a whole, and specifically to the local area hosting the storage facility. The benefits agreement shall be attached to and made part of any permit for the facility. Failure to adhere to the benefits agreement shall be considered grounds for enforcement up to and including permit termination. No benefits agreement as provided in this section shall limit or waive any rights afforded to the state by the Nuclear Waste Policy Act, as of March 1, 1995, including any right to disapprove any site or siting.

(b) The department of revenue's recommendation for a benefits agreement shall be made to the governor and the department of environmental quality not later than November 1, 2002.

35-11-1506. Legislative approval of the siting of high-level radioactive waste storage facilities; conditions.

(a) No construction may commence, nor shall any high-level radioactive waste storage facility be sited within this state, unless the legislature has enacted legislation approving the siting, construction and operation of the facility including taxation of the facility and any materials stored in the facility in accord with this section. Any authorization of a facility under this section shall not be considered to grant to any person an exclusive right or franchise to store high-level radioactive wastes within the state.

(b) The legislature may authorize one (1) or more facilities under subsection (a) of this section if it finds that:

(iii) The proposed benefits agreement is sufficient to offset any adverse environmental, public health, social or economic impacts to the state as a whole, and specifically to the local area hosting the proposed storage facility; ~~and~~

(iv) Sufficient safeguards, by contractual assurances or other means, exist to provide that:

(D) There exists either a cooperative agreement between the state and the nuclear regulatory commission, or such other legally binding agreement for specific performance between the director and the applicant, which shall provide for state regulation of the facility;. and

(v) The facility will be taxed according to a recommendation from the department of revenue and accepted by the legislature. The department of revenue shall recommend a fair and equal taxation system for the facility and any materials stored in the facility. The department's recommendation shall be made to the governor and the department of environmental quality not later than November 1, 2002.

Section 2. This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)