Newsom Introduces Bill to Keep Diablo Canyon Nuclear Power Plant Open

Proposed bill would keep the plant open for 5 to 10 years, provide funding through a forgivable loan, and streamline regulatory approval of an extension.

California Governor Gavin Newsom presented draft legislation that includes an extension of the 2,250 MW Diablo Canyon nuclear power plant by 10 years to 2035. The extension would authorize a forgivable $1.4 billion loan for plant owner Pacific Gas & Electric (PG&E) and streamline environmental reviews. The plant is the largest power source in California and provides more than 8% of the state’s electricity, including approximately 17% of its zero-emissions electricity.

Extension as Part of Climate Plan

The proposed legislation states that the “impacts of climate change are occurring sooner and with greater intensity and frequency than anticipated, causing unprecedented stress on California’s energy system.” Citing “supply chain disruptions, the impact of tariff disputes, and other delays in installation of new clean energy generation and storage systems,” the legislation notes a “substantial risk” that there will not be a sufficient supply of zero-emissions energy by the time of the scheduled plant closure.

The legislation also places the extension within California’s greenhouse gas emissions reduction plan. It states that if the powerplant operations are not extended, “increased energy production from greenhouse-gas-emitting sources will result, exacerbating the climate impacts already stressing California’s energy system…”

The legislation argues that “[c]ontinued operations of the Diablo Canyon powerplant for an additional five to ten years beyond 2024-25 is therefore critical to ensure statewide energy system reliability and to minimize the emissions of greenhouse gasses while additional renewable energy resources come online, until those new renewable energy resources are adequate to meet demand.”

Regulatory Streamlining

In addition to the forgivable loan to PG&E, the legislation would also streamline and expedite the regulatory process for the extension. It would require state agencies to take action on an application or request for an extension within 180 days of submission and would exempt the extension from the California Environmental Quality Act and coastal development permitting. The California Coastal Commission would also not be able to require new studies or collect additional data in connection with a certification of the plant’s under the federal Coastal Zone Management Act. Additionally, the bill would require the plant to pay a “mitigation fee” of $10 per million gallons of water for the impacts of ocean water intake at the plant.

Debate over Plant Closure

Diablo Canyon’s two units are scheduled to be retired in 2024 and 2025, but there is increasing support for keeping the plant open to avoid power shortages in the state. In addition to Newsom, California Senator Diane Feinstein recently reversed course to support extending the life of Diablo Canyon. She noted that closure of the plant could lead to “years of electricity shortfalls” and argued that the utility be relicensed and retirement delayed under the state can “replace its production with clean sources.”