Diablo Canyon Joint Proposal Parties Applaud Signing of SB 1090; Legislation Approves Remaining Goals of
Historic Agreement
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.
PG&E
Blair Jones, 415-973-5930
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