While state and federal agencies continue to decide the fate of Diablo Canyon nuclear power plant, San Luis Obispo County wants to study another way the facility’s power-generating life might be extended.
That would be by adding new nuclear reactors.
On Tuesday, the San Luis Obispo County Board of Supervisors approved a $25,000 contract with Solestiss, a Maine-based nuclear energy consulting firm, to assess the economic impact of keeping Diablo Canyon open for another 20 years.
A $10,000 portion of the study will investigate the feasibility of developing a new advanced large-scale nuclear reactor and small modular reactors.
Small modular reactors — or SMRs — are reduced, theoretically easier-to-assemble reactors that can be more conveniently located near power-hungry areas than traditional plants, but this emerging technology does not yet exist in the United States beyond the design stage.
State law currently prevents new nuclear power from being built in California, but some SLO County supervisors hope the Solestiss study can help change that.
“California currently faces legislative obstacles to future nuclear development,” Supervisor Dawn Ortiz-Legg told The Tribune. “This study will examine those challenges and help identify pathways to responsibly expand nuclear technologies.”
One proposed state law, AB 305, seeks to exempt small modular reactors — or SMRs — from the nuclear plant building moratorium.
“The nuclear industry is rapidly evolving, and one reality is clear: the demand for clean, reliable and abundant energy will continue to grow,” Ortiz-Legg said.
However, others on the board see the study as a political effort through use of a pro-nuclear company to lobby in support of such legislation.
“Overall, it looks to me that the Solestiss contract is an attempt by a board majority to develop promotional materials for their position on extending operations at Diablo Canyon,” Supervisor Bruce Gibson told The Tribune.
The contract approval came just days before the California Coastal Commission’s decision to extend Diablo Canyon’s operations until 2030.
Solestiss CEO Brook Morrison told The Tribune the company cannot comment on contractual details, but she said her educational and professional background in environmental stewardship responsibilities for lands contaminated by the United States’ nuclear energy programs represents the values of Solestiss.
“I bring a deep passion for environmental stewardship to solving our nation’s unprecedented energy demand challenges today,” Morrison said.
What will the Solestiss study entail?
Over nine weeks, Solestiss will prepare a 20- to 30-page white paper assessing the economic impacts of approving Diablo Canyon for a 20-year term versus the current 5-year extension, according to the contract agreement.
The study will evaluate short-term — five-year — operational cost, jobs creation and revenues generated by taxes and exporting excess power. It will also include a short section comparing the economic contributions of nuclear power in countries with energy mixes similar to California’s, like the United Kingdom or Ontario, Canada.
Five to 10 pages of the paper will be dedicated to a high-level feasibility overview of the regulatory, technical, economic and logistical requirements for developing new reactors in SLO County, including an advanced, full-sized AP1000 pressurized water reactor and small modular reactors.
The contract did not specify if these technologies would be proposed as replacements or additions to the plant’s current pressurized water reactors.
The study will look at the state and federal regulatory pathways for these technologies, seismic and environmental land-use considerations, financing options, timelines, economics benefits and risks and integration with California’s energy grid and goals, according to the contract. It will not, however, provide detailed engineering designs for SMRs or advocate on behalf of the county.
The contract states the overview will be “forward-looking and non-binding” and draw from ongoing SMR projects, citing initiatives from SMR companies like NuScale Power and GE Vernova Hitachi Nuclear Energy as examples.
However, no SMR projects have broken ground in the United States.
There were in development worldwide as of Sept. 30, but only two were operating commercially: the KLT-40S in Russia and HTR-PM in China. Both projects had longer development timelines, higher costs and lower initial capacity factors than expected, according to a Stanford University fact sheet on SMRs.
NuScale holds the only Nuclear Regulatory Commission certified SMR design in the country, but the company canceled the deployment of its first design, originally set to launch next year, due to timeline delays and cost overruns. Its updated design was approved in May, with an operational goal of 2030.
Meanwhile, GE Hitachi is building the first SMR in North America in Canada at the Darlington Nuclear Generating Station, with the first of up to four units aiming to be operational by 2028.
The Trump administration has made significant investments in nuclear power, overhauling the Nuclear Regulatory Commission and vowing to launch new nuclear technologies like SMRs within two and a half years, according to executive orders signed in May.
With this new boost, the Solestiss study may position Diablo Canyon to benefit from some of these federal subsidies and shortened regulatory timelines, if state legislation allows down the line.
The results of the Solestiss study will be presented at a future county board meeting when completed.
How long will Diablo Canyon stay open?
Solestiss’ study will evaluate the economic impacts of keeping Diablo Canyon open for another 20 years, but the plant currently only has state approval for a five year life-extension.
PG&E originally planned to shut down the plant’s two reactors in 2024 and 2025, before the state Legislature passed SB 846 in 2022 — directing PG&E to keep Diablo open to support California’s electrical grid until 2030.
Even with the state Legislature’s blessing, PG&E needs to secure multiple permits to keep the plant operating.
On Thursday, the California Coastal Commission gave PG&E a coastal development permit to continue operating the power plant until 2030.
Then, in February, PG&E must get a permit from the Central Coast Regional Water Quality Control Board to operate the once-through cooling system. Next year, the U.S. Nuclear Regulatory Commission will consider whether to award PG&E a 20-year license to operate the plant.
Even if the U.S. Nuclear Regulatory Commission approves a 20-year license, PG&E can only run the power plant for five years — as authorized by current state law. The state Legislature would need to pass another law to allow PG&E to operate the power plant past 2030.
PG&E is aware of the Solestiss study, but the company noted that small modular reactors are currently prohibited by state law.
“While we have studied extensive options for future activities at Diablo Canyon, that has not included SMR evaluation due to the state prohibition,” PG&E said in a statement.
PG&E has other priorities at the moment.
“At Diablo Canyon, we are focused on continuing to safely provide four million Californians with clean, reliable, affordable electricity through 2030, and possibly beyond should the state need Diablo Canyon longer to ensure grid reliability and a clean energy supply,” PG&E’s statement said.
SLO County supervisors support responsible nuclear power
The SLO County Board of Supervisors unanimously passed the Solestiss contract in Tuesday’s consent agenda, but only three of the five supervisors are all-in on extending Diablo Canyon’s operations another 20 years instead of five, Gibson said.
“I’m not necessarily opposed to it operating longer — it is indeed carbon-free electricity,” he said. “Any extension past 2030, however, would take new state legislation‚ and that legislation would certainly once again look at the need for and cost of Diablo power, as well as safety and reliability issues and its environmental impacts.”
Gibson said he is supportive of looking into new nuclear technology like SMRs, but doing so would require a thoughtful and objective approach, which he is unconvinced Solestiss can provide.
He said that, as an adviser to and advocate for nuclear power developers, Solestiss would likely provide an “enthusiastic endorsement” of extending the plant’s life by setting a low bar for the feasibility of SMRs and positing Diablo Canyon as a great place to host the budding technology.
“Solestiss is in the business of promoting and developing SMRs,” he said. “ ... I just don’t expect a particularly objective analysis to result from it.”
Ortiz-Legg, however, sees the study as a recognition of the county’s critical leadership in the field of nuclear energy as home to California’s last operating nuclear power plant.
“We also recognize the extensive regulatory processes required for any nuclear project, and we understand that progress will not happen overnight,” she said. “Our goal is simply to ensure that we are doing everything possible to voice our support for the industry, highlight the remarkable expertise and institutional knowledge at Diablo Canyon and promote our region as a leading center for nuclear energy.”
Gibson is less convinced.
“When Diablo was heading for decommissioning, we were well into envisioning a post-Diablo economy here is SLO County — we will adapt to its eventual closure, whenever that happens,” Gibson said.