PG&E’s Voluntary $16 Million Payment To SLO County Nullifies Need For Current Legislation
SAN LUIS OBISPO, Calif. (KEYT) - Leaders of San Luis Obispo County are joining a state senator in celebrating a milestone agreement with PG&E regarding operations at Diablo Canyon Nuclear Power Plant.
PG&E will be voluntarily paying San Luis Obispo County $16 million over the next two years, to begin mitigating community impacts of the nuclear power plant’s extended operations.
In 2016 a plan was put in place to shut Diablo Canyon down entirely by 2025, retiring one reactor at a time over the course of several months.
“In 2016, energy efficiency was really ramping up,” says Dawn Ortiz-Legg, District 3 Supervisor County Of SLO. “Everything that we were doing was seemed to using less energy, which was great.”
The plan changed in 2022 with Senate Bill 846, extending the plant’s operation through 2030.
“What was not really calculated was that electrification of transportation was actually going to really increase the demand for electricity,” says Ortiz-Legg.
That extension created massive funding gaps for impact mitigation at local schools and public services, which had been counting on the 2025 shutdown.
“Trying to protect the Diablo lands, having seismic safety reviews that were up to date, trying to deal with the regulatory authority of the Coastal Commission, making sure there was $1 billion for renewable energy,” says John Laird, District 17 Senator for the state of California.
In January of this year, Laird introduced senate bill 931 to ensure these impacts were given funding for mitigation.
“And PG&E basically approached me to make a deal to do voluntarily, essentially what was in the bill,” says Senator Laird.
In April, the Nuclear Regulatory Commission approved the renewal of Diablo Canyon’s license for 20 more years, up through 2045.
“A formal legislation can be installed at the state and then signed by a governor in the future,” says Ortiz-Legg.
State law only authorizes the plant to operate through 2030, and more changes would need to be legislated to authorize operation for 2031 and beyond.
“This is great news for the locals,” says Laird. “And it really sets up the future conversations to make sure this continues. But there just won't be a fiscal cliff.”
PG&E has specified that this $16 million mitigation package is being provided entirely out of corporate shareholder funds, and neither taxpayers nor rate payers are being held responsible.
“And I think that this brings us some breathing room until the future governor can move forward on seeing Diablo extended,” says Ortiz-Legg. “We're going to need that energy.”
There is still a funding gap for the remaining three years of the plant’s operation, and Senator Laird says he and his team won’t rest until that gap is filled.
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