Diablo Canyon Joint Proposal Parties Applaud Signing of SB 1090; Legislation Approves Remaining Goals of Historic Agreement

September 20, 2018

SAN FRANCISCO Calif. — 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 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.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric energy companies in the United States. Based in San Francisco, with more than 20,000 employees, the company delivers some of the nation's cleanest energy to nearly 16 million people in Northern and Central California. For more information, visit pge.com and pge.com/news.