For Diablo Canyon, the issue is whether the Newsom administration, in concert with investor-owned PG&E, can find a way to unspool the 2016 closure agreement agreed to by environmentalists, plant worker unions and the utility.
The debate over the plant comes as the long-struggling nuclear industry sees climate change as a reason for optimism. President Joe Biden has embraced nuclear power generation as part of his strategy to halve greenhouse gas emissions by 2030, compared to 2005 levels.
The plant on the coast midway between Los Angeles and San Francisco produces 9% of the electricity for California's nearly 40 million residents. The state earlier set aside up to $75 million to extend operation of older power plants scheduled to close, but it’s not yet clear whether taxpayers might be covering part of the bill — and, if so, how much — to keep Diablo running.
Plant workers now support keeping the reactors open for an extended run while anti-nuclear activists and environmentalists have rejoined a battle they thought was settled six years ago. There's also concern about the aging plant's safety. Construction at Diablo Canyon began in the 1960s and critics say potential shaking from nearby earthquake faults not recognized when the design was first approved — one nearby fault was not discovered until 2008 — could damage equipment and release radiation.
PG&E is considering applying for a share of $6 billion in federal funding the Biden administration established to rescue nuclear plants at risk of closing. The utility announced the move after Newsom suggested a longer operating run would help the state deal with potential future electricity shortages.
Factors cited in the lease agreement echo language in the closing pact, including that the utility would not seek an extended operating license and PG&E was expected to use that period through 2025 to develop a portfolio of greenhouse gas-free renewables and efficiencies to replace Diablo Canyon's power.PG&E’s decision to close Diablo Canyon came at a time of rapid change in the energy landscape.
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