Diablo Canyon Joint Proposal Parties Applaud Signing of SB 1090; Legislation Approves Remaining Goals of Historic Agreement
September 20 2018 - 7:13PM
Business Wire
The parties to the Diablo Canyon joint proposal agreement,
including PG&E, labor, government, community and leading
environmental groups, issued a joint statement today applauding
Governor Brown’s signing of Senate Bill (SB) 1090, a law that
implements the key remaining objectives of the Diablo Canyon joint
proposal agreement.
The parties include PG&E, International Brotherhood of
Electrical Workers Local 1245, Coalition of California Utility
Employees, Friends of the Earth, Natural Resources Defense Council,
Environment California, California Energy Efficiency Industry
Council, Alliance for Nuclear Responsibility, the County of San
Luis Obispo, the Coalition of Cities (Arroyo Grande, Atascadero,
Morro Bay, Paso Robles, Pismo Beach and San Luis Obispo) and the
San Luis Coastal Unified School District.
“The Diablo Canyon joint proposal represented a significant
milestone in the planning to help meet California’s bold clean
energy vision. This unique approach with a diverse set of
stakeholders tackled a complex issue in a collaborative and
successful way that will result in the orderly transition and
retirement of Diablo Canyon Power Plant. More specifically, it will
help protect local communities, support employees and ensure that
other carbon free resources will replace the output of Diablo
Canyon. We collectively thank the Governor and the legislature for
their wisdom in enacting this legislation, which is truly in the
public’s best interest. We are all very pleased to see that the
remaining goals of this historic agreement and transition strategy
will be enacted.”
The new law, authored by Senator Bill Monning and Assemblyman
Jordan Cunningham, was approved by both houses of the California
State legislature this year with bipartisan support. More
specifically, SB 1090:
- Requires the California Public
Utilities Commission (CPUC) to approve a community impact
mitigation settlement of $85 million;
- Directs the CPUC to manage its
integrated resource plan to ensure that there is no increase in
greenhouse gas emissions as a result of the retirement of DCPP;
and,
- Requires the CPUC to approve full
funding for a DCPP employee retention program.
About the Joint Proposal
California’s energy landscape is changing dramatically. State
policies that focus on renewables and energy efficiency, coupled
with projected lower customer electricity demand in the future,
will result in a significant reduction in the need for the
electricity produced by DCPP past 2025.
Reflecting this change, PG&E partnered with labor and
leading environmental organizations in 2016 on a joint proposal
that would increase investment in energy efficiency and renewables
while retiring DCPP at the end of its current Nuclear Regulatory
Commission (NRC) operating licenses, which expire in 2024 and
2025.
Recognizing that the procurement, construction and
implementation of a greenhouse gas-free portfolio of energy
efficiency and renewables would take time, the joint parties agreed
to support PG&E in obtaining the state approvals needed to
operate DCPP to the expiration of its current NRC operating
licenses.
The parties agreed to use the remaining time under the current
operating licenses to work to mitigate associated negative economic
and social impacts, including replacing the plant’s output with
greenhouse gas-free resources.
The joint proposal included a DCPP employee retention program to
ensure a well-trained staff is in place to safely run the plant
through 2025. A community impact mitigation program to help the
local community transition to a post-DCPP economy was also
proposed.
The CPUC authorized several elements of the joint proposal on
January 11, 2018, including approval to cease plant operations once
the NRC operating licenses expire. The CPUC also expressed its
intention to avoid any increase in greenhouse gas emissions
resulting from the closure of DCPP.
Full funding of the employee retention program was not approved
as part of the CPUC’s decision. It also expressed that legislative
authorization would be needed to approve the community impact
mitigation program. SB 1090 was introduced in the legislature to
meet these key remaining goals of the joint proposal.
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PG&EBlair Jones, 415-973-5930
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