(Reuters) – California Governor Gavin Newsom is proposing to give PG&E Corp a $1.4 billion government loan to extend the life of a nuclear power plant it operates by a decade, as the state seeks to shore up electricity reliability while away from fossil fuels, his office announced Friday.
The proposal, which must be introduced as a bill in the state legislature, is the latest in a series of steps California has taken this year to reconsider its 2016 decision to retire the Diablo Canyon power plant by 2025.
California wants to generate all of its electricity from clean sources by 2045, but faces challenges with that transition, such as continuous power outages during a 2020 heat wave.
“The governor supports keeping all options on the table as we build our plan to provide reliable energy this summer and beyond,” a spokesman for his office said. “This includes considering a limited extension of the life of the Diablo Canyon Power Plant (DCPP), which continues to be an important resource as we transition from fossil fuel generation to greater amounts of clean energy.”
Under Newsom’s proposal, the state utility regulator would delay Diablo Canyon’s retirement between 2030 and 2035. An extension could require regulatory action by agencies including the state Water Control Board and its land, utility and coastal commissions. but it would exempt them from compliance with some environmental laws. It will also make it clear that the Coastal Commission is not to do any coastal development permits or additional surveys.
The proposed bill would also authorize a loan of up to $1.4 billion to Diablo Canyon owner PG&E to cover relicensing costs. Diablo Canyon’s current federal licenses expire in 2024 and 2025.
PG&E is also applying for separate federal funds under a $6 billion U.S. Department of Energy program aimed at saving nuclear power plants due for retirement.
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“We are proud of the role that DCPP plays in our state, and we stand ready to support if there is a change in state policy to help ensure grid reliability for our customers and all Californians at the lowest possible cost,” Linsey, PG&E spokesman Paulo said in an emailed statement.
The Biden administration is pushing to revive the languishing nuclear industry as part of a plan to cut U.S. greenhouse gas emissions, even though just under half of Americans support nuclear power for electricity generation, according to a June Reuters/Ipsos poll.
(Reporting by Nicola Groom; Editing by Aurora Ellis)
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