APPENDIX C

ATTACHMENT A

SAFETY COMMITTEE

Composition of Committee.

1. An Independent Safety Committee (the "committee") shall be established consisting of four members, one each appointed by the Governor of the State of California, the Attorney General, the President of the California Public Utilities Commission (CPUC) and the Chair of the California Energy Commission ("CEC"), respectively, serving staggered three-year terms. The committee shall review Diablo Canyon operations for the purpose of assessing the safety of operations and suggesting any recommendations for safe operation. Neither the committee nor its members shall have any responsibility or authority for plant operations, and they shall have no authority to direct PG&E personnel. The committee shall conform in all respects to applicable federal laws, regulations and Nuclear Regulatory Commission ("NRC") policies.
2. Committee members shall be selected from a list of candidates nominated by the CPUC, through open requests for nomination. A provision for public comment on applicants shall be established by the CPUC.
   1. At the time of the committee's initial formation, the President of the CPUC, the Dean of Engineering, and PG&E shall jointly provide a list of nine candidates. The Governor shall appoint a member for a one-year term, the Attorney General shall appoint a member for a two-year term, and the Chairman of the CEC shall appoint a member for a three-year term. Each year thereafter, the President of the CPUC shall provide to the appropriate appointing authority a list of candidates as alternatives to reappoint of that authority's designated committee member whose term is expiring. The incumbent shall be deemed an additional nominee. Each such subsequent appointment shall be for a three-year term.
   2. Should a committee member not complete the appointed term, the authority who appointed that member shall appoint a replacement to serve for the unexpired portion of the term from a list of candidates selected by the President of the CPUC through open requests for nominations.
   3. The President of the CPUC shall propose as candidates through an open request for nominations persons with knowledge, background and experience in nuclear safety issues in the field of nuclear power facilities.
   4. The Chairman of the CEC and the President of the CPUC shall exercise their powers under this agreement after consultation with their respective commissions in public session.
   5. The DCISC should consist of at least one member from the San Luis Opisbo public to represent the affected community

Scope of Committee Operations.

1. Reports and records shall be provided quarterly as available:
   1. Automatic scrams while critical
   2. Significant events
   3. Safety system actuations
   4. Forced outage rate
   5. Collective radiation exposure
   6. Industrial safety loss time accident rate
   7. NRC public reports and evaluations of Diablo Canyon
   8. Such other reports pertinent to safety as may be produced in the course of operations and may be requested by the committee.
2. Annual Site Inspection.

   The committee shall have the right to conduct an annual examination of the Diablo Canyon site. If the committee requires additional information regarding a specific issue raised by the quarterly reports, the committee may request such information, and, upon proper notice to PG&E, conduct a site visit to investigate that issue.

   PG&E shall cooperate with the committee in arranging times for the committee's visits to the site and shall be responsible for insuring the cooperation of PG&E employees and contractors in providing access to the plant and facilities of PG&E and to pertinent records. Any such site visit must comply with all applicable federal laws, regulations and NRC policies, including laws, regulations and policies governing screening of persons who may participate in site inspections.

3. Committee Reports and Recommendations.

   The committee shall prepare an annual report, and such interim reports as it deems appropriate, which reports shall include any recommendations of the committee. The report shall be submitted first to PG&E, and PG&E shall respond in writing within 45 days. PG&E's response shall be made part of the report which shall then be submitted to the CPUC, the Governor, the Attorney General and the CEC. The CPUC, the Governor, the Attorney General and the CEC, or any one of them, may file a request pursuant to 10 CFR § 2.206 for the Director of Nuclear Reactor Regulation to institute a proceeding to require PG&E to adopt any safety recommendation made by the Committee. PG&E is free to oppose any such recommendation before the NRC.

4. Confidentiality of Information.

   In the course of review of Diablo Canyon operations, committee members may receive confidential information. Federal law restricts disclosure of certain information; accordingly, committee members shall seek approval of the NRC for access to such information and shall comply with all laws, regulations and policies applicable to access to, possession and use of such information. To the extent that PG&E believes that other information sought by the committee, not regulated by the Atomic Energy Act, constitutes confidential business information, the disclosure of which might injure PG&E in its business, PG&E may so designate that information. Information so designated shall be treated as confidential and not disclosed outside the committee unless a majority of the committee challenges the propriety of the claim of confidentiality by vote taken within 30 days of designation. A dispute between the committee and PG&E on a claim of confidentiality shall promptly be submitted to binding arbitration. Committee members and all persons who receive confidential information in the course of or as a result of the committee's activities shall have a duty to maintain the confidentiality of that information and, in addition to the compliance with the requirements of federal law and regulations, shall execute a confidentiality agreement.

   The committee may contract for services, including the services of consultants and experts, to assist the committee in its safety review. Disclosure of PG&E information or records to any such person shall be governed by the provisions of this agreement in the same manner as disclosure to members of the committee. No disclosure shall be made to any person who does not have a need to receive the information in order to assist the committee in its safety review. Nor shall disclosure be made to any person with a conflict of interest.

   This provision shall not preclude the committee from submitting relevant information to the NRC or to the CPUC, the Governor, the Attorney General or the CEC to the extent permitted by federal law. Prior to the disclosure of any confidential information, however, the committee shall give PG&E notice of its intention to do so and an opportunity to designate specific documents or information which should not be publicly disclosed and to seek to prevent public disclosure by the entity to which disclosure is made.

5. Compensation of the Committee.

   Members of the committee shall be compensated in an amount established by the CPUC, to be commensurate with fees PG&E pays for similar services. The fees and expenses of the committee and its contractors shall be paid by PG&E and included in its ordinary rate base operating expenses. The fees and expenses shall not exceed $500,000 in the first year; thereafter, the $500,000 shall escalate at the same rate as the total price set for Diablo Canyon generation. The committee and its contractors shall keep accurate books, records and accounts which shall be open to inspection and audit by the CPUC or its designee and by PG&E. Such audit shall include review of the reasonableness of fees and expenses and review for conflicts of interest.

6. The DCISC shall maintain an office and staff in San Luis Obispo.
7. The DCISC shall actively involve the community, including, but not limited to, assuring that DCISC meetings are videotaped and broadcast.

(END OF APPENDIX C)