California governor proposes $1.4 billion loan to keep nuclear plant open

California Governor Gavin Newsom speaks in Los Angeles, California, U.S. June 9, 2022. REUTERS/Lucy Nicholson

Aug 12 (Reuters) – California Governor Gavin Newsom is proposing to give PG&E Corp (PCG.N) a $1.4 billion authorities loan to lengthen the lifetime of a nuclear energy plant it runs by as a lot as a decade because the state seeks to shore up electrical reliability whereas shifting away from fossil fuels, his workplace mentioned on Friday.

The proposal, which might have to be launched as a invoice within the state legislature, is the most recent in a collection of steps California has made this yr to rethink its 2016 choice to retire the Diablo Canyon energy plant by 2025. learn extra

California needs to produce all of its electrical energy from clear sources by 2045, however has confronted challenges with that transition, corresponding to rolling blackouts throughout a heatwave in 2020.

“The Governor supports keeping all options on the table as we build out our plan to ensure reliable energy this summer and beyond,” a spokesperson in his workplace mentioned. “This includes considering a limited term extension of the Diablo Canyon Power Plant (DCPP), which continues to be an important resource as we transition away from fossil fuel generation to greater amounts of clean energy.”

Under Newsom’s proposal, the state’s utility regulator would delay Diablo Canyon’s retirement to between 2030 and 2035. The extension might require regulatory actions by companies, together with the state’s water management board and its land, utilities and coastal commissions, however it will exempt them from abiding by some environmental legal guidelines. It would additionally clarify that no coastal growth permits or extra research want to be accomplished by the Coastal Commission.

The proposed invoice would additionally authorize a loan of up to $1.4 billion to Diablo Canyon proprietor PG&E to cowl relicensing prices Diablo Canyon’s present federal licenses expire in 2024 and 2025.

PG&E can be making use of for separate federal funds underneath a $6 billion U.S. Department of Energy program geared toward saving nuclear energy vegetation which might be scheduled to retire. learn extra

“We are proud of the role that DCPP plays in our state, and we stand ready to support should there be a change in state policy, to help ensure grid reliability for our customers and all Californians at the lowest possible cost,” PG&E spokesperson Lynsey Paulo mentioned in an emailed assertion.

The Biden administration has been pushing to revitalize the waning nuclear trade as a part of a plan to lower U.S. greenhouse fuel emissions, although just below half of Americans help nuclear energy to generate electrical energy, in accordance to a June Reuters/Ipsos ballot. learn extra

Reporting by Nichola Groom; Editing by Aurora Ellis

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