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Environmental Group Sues Energy Department Over Diablo Canyon Funding

The Diablo Canyon Nuclear Power Plant is seen on June 1, 2023, in Avila Beach, Calif. An environmental group has filed a lawsuit against the U.S. Energy Department challenging its award of over

An environmental group has filed a lawsuit against the U.S. Energy Department over its decision to award more than $1 billion to support the continued operation of California's last nuclear power plant, Diablo Canyon, beyond its planned closure in 2025. The move has sparked a new legal battle over the fate of the plant's twin reactors.

The complaint, filed by Friends of the Earth in U.S. District Court in Los Angeles, alleges that the funding awarded to plant operator Pacific Gas & Electric was based on an outdated and flawed analysis that failed to adequately consider the risks of earthquakes and other potential serious events. The group criticized the safety assessment as 'grossly deficient' and accused the Energy Department of relying on a 50-year-old environmental analysis.

Diablo Canyon, located on a bluff overlooking the Pacific Ocean between Los Angeles and San Francisco, has been operational since the mid-1980s and currently supplies up to 9% of California's electricity on a daily basis.

In 2016, a plan was agreed upon by PG&E, environmental organizations, and plant worker unions to close Diablo Canyon by 2025. However, this agreement was overturned by the California Legislature in 2022 following Governor Gavin Newsom's reversal of his stance, citing the need for the plant's power to prevent blackouts during the state's transition to renewable energy sources and to address climate change challenges.

Disputes have arisen regarding the safety of Diablo Canyon's aging reactors, potential additional costs to taxpayers, and the necessity of its electricity output in the context of increasing renewable energy sources like solar power.

PG&E maintains that the plant is safe, a position supported by the Nuclear Regulatory Commission. The Biden administration approved $1.1 billion in Energy Department funding in January through the civil nuclear credit program, aimed at assisting financially struggling nuclear power reactor operators as part of efforts to reduce greenhouse gas emissions.

PG&E aims to secure a 20-year extension of its federal licenses, with the state retaining control over the plant's operational timeline. A state judge has conditionally approved a plan to extend Diablo Canyon's operation for an additional five years, until 2030.

California, known for its environmental activism, has a complex history with nuclear power. The debate surrounding Diablo Canyon comes at a time when the nuclear industry is being reconsidered in the fight against climate change, given its low carbon emissions compared to fossil fuels, despite concerns about radioactive waste disposal.

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