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California Legislators Pass Law to Keep Diablo Canyon Open


An aerial view of Diablo Canyon, the only remaining working nuclear plant in California, is seen in these aerial photos taken on December 1, 2021, near Avila Beach, California. Set on 1,000 acres of scenic beachfront land just north and west of Avila Beach, the controversial power plant operated by Pacific Gas & Electric (PG&E) broke ground in 1985.

George Rose | Getty Images News | beautiful pictures

California lawmakers are circulating draft legislation that would keep the state’s last operational nuclear plant, Diablo Canyon, open after its planned closure date of 2025, though challenges remain. considerable political and logistical ahead before that can happen.

Plans to close Diablo Canyon have been underway since 2016. But severe symptoms of climate change – heat and drought – have hit the state hard, and delays have slowed the process. building wind and solar energy sources, legislators and local utility representatives PG&E are reviewing.

The Diablo Canyon Power Station currently provides 8.6% of the state’s electricity and 17% of the state’s carbon-free electricity supply. The two operating reactors are scheduled to be decommissioned on November 2, 2024 and August 26, 2025. But California probably won’t be able to ramp up renewable energy sources from wind and solar. fast enough to meet that capacity.

“Two things have changed since last year” David Victor, professor of innovation and public policy in the School of Global Strategy and Policy at UC San Diego, told CNBC. “One is that grid operators have focused more on reliability and the challenges of maintaining grid reliability. An unreliable grid is not only bad for the economy, but also bad for the economy. very bad for politicians.”

California Governor Gavin Newsom also showed some willingness to keep the nuclear power plant open, and that helped catalyze these latest moves.

“The other thing that has changed, perhaps even more importantly, is that the governor has signaled his interest in a possible extension to the a helpful comment for the Los Angeles Times. That was a few months ago and has not been related to analytic theory and lobbying,” Victor said.

Draft legislation in the California legislature

According to Governor Newsom’s office, a copy of the draft bill was sent to lawmakers on Thursday, and shared with CNBC on Monday.

The bill says the California energy grid will struggle to keep up with demand.

“The effects of climate change are occurring earlier with greater intensity and frequency than anticipated, placing unprecedented strain on California’s energy system.” draft law read. “These effects also drive higher demand as more frequent and intense heatwaves hit California and the Western region, and reduce supply as drought conditions affect production. hydroelectricity and fires threaten the electrical infrastructure.”

It then points to the difficulty of ramping up renewable energy sources in time to make the transition.

“Due to supply chain disruptions, the impact of tariff disputes, and other delays in the installation of new clean energy production and storage systems, including wind and solar projects that have battery storage, there is a big risk that not enough new clean energy supplies will be brought online in time to ensure the reliability of the power system when the Diablo Canyon power plant is scheduled to be shut down “, the draft law reads.

If California does not expand Diablo Canyon operations, the state will depend on energy sources that release greenhouse gases, which accelerate climate change, the bill argues.

The proposal would keep unit 1 open until October 31, 2029, and unit 2 until October 31, 2030. After five years, the state will assess whether units should open. in five years or not, with a deadline set for October 31, 2035, according to a memo on the law shared by the governor’s office with CNBC on Monday.

The Newsom office points out that it is working to get renewable energy sources online faster.

“In June, the state took action to streamline the licensing of clean energy projects to bring more renewable energy and storage online,” the governor’s office said in a statement. text provided to CNBC.

PALM SPRINGS, CA – March 27: Giant wind turbines powered by strong winds in front of solar panels on March 27, 2013 in Palm Springs, California. According to reports, California continues to lead the nation in green technology and has the lowest per capita greenhouse gas emissions, even with a growing economy and population. (Photo by Kevork Djansezian / Getty Images)

Kevork Djansezian | Getty Images News | beautiful pictures

It’s not easy to reverse direction

Victor advocates prolonging the life of Diablo Canyon. But he also knows that a lot of effort has been put into the closure plan.

“And they’re going to feel betrayed. So the politics of this can be very bad. And the utility is stuck in the middle – with big risks,” Victor told CNBC.

While the conversations within the California legislature are an important step in starting the processes to keep Diablo Canyon open, there are numerous logistics and staffing needs that need to be addressed to keep Diablo Canyon open. for the factory to operate.

Victor told CNBC.

“The new proposal, along with the federal incentives, will help a lot. But people seem to forget that there’s a lot of machinery that needs to happen to keep a plant running. A submission needs to be made. extension to the Nuclear Regulatory Commission. , workers are needed and so far, almost all workers are focused on the different jobs and utilities that have helped them find those jobs. ,” Victor said.

“You can imagine dealing with all of these problems individually, but doing it all at once with a tight schedule would be a challenge,” he said.

According to a memo from the governor’s office, if Diablo tries to renew its license to operate, the state of California will lend $1.4 billion to the utility company operating the plant, PG&E, to help support costs related to the plant. the release. In addition, PG&E can apply to receive federal funds from the U.S. Department of Energy $6 billion program passed as part of bipartisan Infrastructure Law which was intended to preserve the existing US nuclear power reactor fleet. “The proposed language provides a pathway to relicensing at the U.S. Nuclear Regulatory Commission so that PG&E can apply for this funding,” the memo from the governor’s office said.

Above On July 28, PG&E announced its second quarter financial report. And during the discussion about the utility company’s financial results, the CEO, Patricia K. Poppe, addressed the future of Diablo Canyon.

“Earlier this year, Governor Newsom contacted us asking us to evaluate keeping Diablo Canyon open beyond its projected retirement periods in 2024 and 2025 to support capacity and reliability,” Poppe said. of the state’s power supply,” Poppe said. “We are exploring the possibility of opening this plant for the benefit of California. This is not an easy choice and it will require a lot of coordination between the state, multiple regulators and PG&E as well as Many other agencies are affected by the outcome of this decision.”

Poppe said that if Diablo Canyon is to be expanded, PG&E needs to know soon because there are a lot of steps to take to keep the plant running.

“We really felt the urgency to move from the inactivity position to the life extension position. So the most important thing for us right now is that we have certainty when making decisions. We had to make sure Poppe said, “What actions would we take if we were, in fact, to change the position of the tree.”

Reversing the process would be a challenge, but Poppe also noted a shift in the state’s perception of nuclear energy. “We like the fact that the value of that plant is being recognized by the state,” Poppe said.

She said PG&E will try to access federal funds. “We think DOE funding is a possibility, and certainly the state has expressed an interest in maximizing that and ensuring that Diablo Canyon is included in the DOE’s program to pull,” Poppe said. prolong the life of the nucleus,” said Poppe. “Again on a national scale, I think there’s been a real shift in view of the value of these payload nuclear facilities. And so, with that, we’re going to move on. working through the finances, and that will be second to making sure that the factory is ready and safe and able to operate for the state.”

But the clock is ticking. The legislation must be passed by the end of August and then signed into law by September, Poppe said.



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