California Lawmakers Pass Bill to Extend Diablo Canyon Operations to 2030

California lawmakers on Sept. 1 passed a bill to provide a $1.4 billion loan to extend operations at the state’s last operating nuclear power plant Diablo Canyon by an additional five years. The plant’s two units are scheduled to be retired in 2024 and 2025. The proposal, also part of Governor Gavin Newsom’s agenda, cleared the Assembly by a 69-3 vote shortly after the Senate passed it on a 31-1 vote. The bill now heads to the Governor’s desk to be signed into law. California is expected to witness greater than anticipated electricity load growth and needs to plan for continued load growth because of the increasing electrification of transportation and other sectors.

Diablo Canyon, owned and operated by Pacific Gas & Electric, consists of two units that have been operating since 1985 (Unit 1) and 1986 (Unit 2), with a combined generation capacity of 2,240 megawatts. California has been evaluating a delay of the planned retirement of the plant, in order to maintain electricity reliability as new projects come online. Earlier this year, the state requested the U.S. Energy Department to consider adjustments to the federal nuclear credit program guidance to address the unique circumstances of the Diablo Canyon Power Plant slated for closure in 2025.

The California Energy Commission recently held a workshop on electric reliability needs amid climate change, supply chain delays, and other factors impacting new generation and energy storage projects. The workshop discussed the role that the nuclear plant could have in supporting mid-term electric reliability and California’s clean energy transition including actions that are required to maintain the option of extending, for a limited term, the operating license of the plant.

Diablo Canyon currently contributes about 17 percent of the state’s zero-carbon electricity supply and 8.6 percent of its total supply. The extension of the nuclear plant’s operating life still requires approval by federal, state, and local regulatory entities. The closure of the plant is expected to increase demand for electricity from other sources, particularly natural gas-fired generation, which could affect the state’s ability to meet its greenhouse gas emission targets.

Nuclear energy plays a vital role in achieving a carbon-free, reliable, and affordable energy transition in California, and with the bill, PGE will be able to extend Diablo Canyon’s operation, which will help the state meet its climate goals and provide residents with a reliable clean energy source, said Nuclear Energy Institute in a press release.