Diablo Canyon, California’s only nuclear power plant, can stay open past 2025, possibly as much as another 20 years, the U.S. Nuclear Regulatory Commission said Thursday in a critical decision for the state’s power grid.
The NRC shared the decision in a letter to PG&E, giving it the OK to continue operating Diablo Canyon past its scheduled closing while federal regulators review the plant’s new license renewal.
Diablo Canyon, located just north of Avila Beach in San Luis Obispo County, was set to stop operating its two twin reactors in 2024 and 2025.
The long-planned closure became a battle front in recent years when California was unable to procure enough clean electricity to replace the nuclear power plant, which produces about 9% of the state’s total power.
With a push from Gov. Gavin Newsom, the California State Legislature passed Senate Bill 846 in September, allowing up to $1.4 billion to be allocated to PG&E to fund the nuclear power plant’s license renewal costs for staying open through 2030.
In an October letter to the NRC, PG&E asked federal regulators to simply resume its review of its 2009 license renewal application. PG&E had withdrawn that application in 2018 after it announced plans to close the plant. However, the NRC denied that request in January.
Also in the October letter, PG&E requested the NRC grant it an exemption from a federal law that states it must file license renewal applications more than five years before the license expires.
The law allows for a nuclear power plant to continue operating past its originally scheduled closure date if the NRC is still reviewing its license renewal application — as long as that application was filed more than five years before the expiration date.
The NRC granted PG&E’s exemption request on Thursday. That means the utility company can continue operating Diablo Canyon past 2025 — as long as it submits a new license renewal application to the NRC by Dec. 31, according to the letter sent by the NRC to PG&E.
“After evaluating the company’s exemption request, the NRC staff determined that the exemption is authorized by law, will not present undue risk to the public health and safety, and is consistent with the common defense and security,” a statement by the NRC said.
“In addition, the staff determined Diablo Canyon’s continued operation is in the public interest because of serious challenges to the reliability of California’s electricity grid.”
Once submitted, it will likely take the NRC about 22 months to review PG&E’s license renewal application, the NRC’s statement said. If PG&E is granted a license renewal from the NRC, it could operate Diablo Canyon nuclear power plant for another 20 years, according to the NRC’s statement.
“We are pleased the NRC approved our exemption request,” said Paula Gerfen, senior vice president and chief nuclear officer at PG&E, in a news release. “PG&E will continue on the path to extend our operations beyond 2025 to improve statewide electric system reliability and reduce greenhouse gas emissions as additional renewable energy and carbon-free resources come online.”
PG&E also pointed out in its news release that the California Energy Commission adopted a report on Tuesday that found the state could have energy reliability deficiencies from 2024 to 2030 if Diablo Canyon were to shut down its reactors in 2024 and 2025.
The exemption request from PG&E didn’t come without opposition.
In a petition to the NRC in mid February, three organizations — Environmental Working Group, Mothers for Peace and Friends of the Earth — argued that the agency did not have the proper precedent to grant PG&E the exemption request.
The groups worry about the safety risks that could come along with the 38-year-old plant’s continued operation.
“The NRC has never allowed a reactor to operate past its license expiration dates without thoroughly assessing the safety and environmental risks,” said Diane Curran, legal counsel for Mothers for Peace, in a news release about the February petition.
“It would be irrational and irresponsible for the NRC to permit PG&E to operate aging and deteriorating reactors encumbered by aging equipment risks, seismic risks and environmental impacts without a thorough environmental and safety review.”
The groups advocated for the closure of Diablo Canyon while the NRC reviewed PG&E’s license renewal application.
Hallie Templeton, legal director of Friends of the Earth, said in a statement Thursday that the NRC’s decision to grant PG&E the exemption request is concerning.
“This is an ominous warning sign for how independent the NRC will be in evaluating the earthquake risk and the overall operational integrity of the Diablo Canyon reactors,” Templeton said.
“We will consider all available means to ensure that they are held to the letter of the law on this and future decisions and do not put people and the environment at risk.”
