POLITICO California Playbook PM: Saving California's last nuclear power plant

Your afternoon must-read briefing on politics and government in the Golden State

May 18, 2022 View in browser   By Colby Bermel, Alexander Nieves and Juhi Doshi ATOMIC OPTIMISM: California's last nuclear plant has long been slated to close in 2025. But a series of events — and fresh worries about summertime power shortages — could end up prolonging its life. The Pacific Gas & Electric-owned Diablo Canyon Power Plant produces nearly a tenth of California's electricity, providing zero-carbon, round-the-clock power that's an increasingly valuable proposition to the state as it faces yet another summer of possible rolling blackouts. But concerns about earthquakes, tsunamis and nuclear waste storage, among other factors, forced PG&E to propose shuttering its two units in 2016. Two years later, state regulators approved their retirement. For years, policymakers and energy players assumed Diablo Canyon would decommission as scheduled. The state moved ahead with plans to replace the reactors with enough new electricity to power more than 8.6 million homes. Then things started to change: Last fall, Obama-era Energy Secretary Steven Chu — now a Stanford professor — published a study calling on California to delay Diablo Canyon's closure. Last month, a Berkeley IGS poll showed a plurality of support among state voters to build more nuclear reactors, along with opposition to shuttering Diablo Canyon. That contrasts with past anti-nuclear sentiment stemming from the Three Mile Island, Chernobyl and Fukushima disasters. The same day that favorable polling came out, the Biden administration — which has set a 2035 goal for a carbon-free electricity sector — announced a $6 billion grant program for operators of nuclear units. (Nuclear power facilities are expensive to run and some struggle to compete against low-cost renewable electricity sources like wind and solar.) In late April, Gov. Gavin Newsom told the Los Angeles Times editorial board that he supported PG&E asking the feds for a share of the $6 billion. Two weeks ago, state officials projected a possible summer electricity shortfall, and Newsom Cabinet secretary Ana Matosantos reinforced Newsom's comments. On Monday, trade groups representing the electric utility and nuclear power sectors asked Energy Secretary Jennifer Granholm for more time to apply for the federal funding. That wish was granted today. PG&E, which owns Diablo Canyon, now has until July 5 to decide whether to apply for the federal money. If it does, that could be a sign the utility will push to keep the facility alive. HAPPY WEDNESDAY AFTERNOON! Welcome to California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check of California politics and a look at what our policy reporters are watching. We'll go Monday to Thursday through June 9 before returning in August for the legislative homestretch. Got tips or suggestions? Shoot an email to katymurphy@politico.com and anieves@politico.com or send a shout on Twitter. DMs are open! WHAT YOU NEED TO KNOW TODAY GAS-REBATE DEBATE: California state lawmakers are holding hearings today to dissect Newsom's recent budget proposals, and heading that list is his plan to send checks to car owners. So far, the governor's idea — $400 per vehicle, up to two cars per person — has received an icy response from legislative leaders, who don't like the idea of tying the money to car-ownership. The Legislature, at least for the moment, is sticking with a plan that would give $200 to taxpayers making up to $125,000, or $250,000 for joint filers. Families would also receive $200 per dependent. The gap between this approach and Newsom's proposal won't be closed today, but we could get some clues about the starting points for negotiations. ON THE BEATS ANOTHER SHOT IN THE ARM: Newsom visited a clinic in Kern County this afternoon to receive his second dose of the Moderna booster and highlight the rising number of Covid-19 cases. The second booster dose of the Pfizer-BioNTech or Moderna vaccine is available to those over the age of 50. This week, the FDA approved the Pfizer-BioNTech booster for children ages 5 to 11. BABY FORMULA SUPPLY: Worried parents have been demanding state officials take action amid a severe shortage of baby formula. Newsom said today that low-income families have been hit hardest by the crisis, and that the state has been working closely with the Biden administration and others to secure and maintain supplies for the Special Supplemental Nutrition Program for Women, Infants and Children. That program, better known as WIC, covers food for kids under 5 living in or near poverty — including about half of the babies born in California. "In the short run, WIC is a top priority, and then obviously trying to do what we can to provide information to pediatricians … to look at alternative strategies and address the anxieties," Newsom said. AROUND CALIFORNIA Compiled by Chris Ramirez "LAUSD expects enrollment to plummet by 'alarming' 30% in the next decade," by the LA Times' Howard Blume: "Problems related to the enrollment drop have already surfaced. A handful of campuses — despite their importance as community anchors — have closed or are projected to close. Or, the campuses have been offered to charter schools — which are not operated by the district and compete for students. Many charters are also facing enrollment challenges and some have shut down. Having fewer students creates financial strains because state and federal funding is based primarily on enrollment. It's difficult to reduce fixed costs related to buildings and operations as the funding base shrinks. Moreover, decreased funding makes it more challenging to manage pension costs shared by all school systems as well as separate lifetime retiree health benefits that L.A. Unified has provided to long-term employees." " Vaccine mandate struck down in court as cases climb in California prisons," by the Sac Bee's Wes Venteicher: "The newly-canceled mandate was issued last fall by a U.S. District Court judge on the recommendation of J. Clark Kelso, the federal receiver who oversees health care in California's state prisons under a long-standing court order. Kelso said in his recommendation that the delta variant, which was circulating at the time, presented 'enormous risks' to those incarcerated in the tight quarters of the prisons." MIXTAPE — Two women employees at the California State University system are "dismayed" by Sonoma State University's president, Judy Sakaki, who failed to discipline a former university administrator after accusing him of sexual harassment. (LA Times) — Scientists at UC Davis discovered that redwood trees have two different types of leaves with differing purposes. The peripheral leaves produce food, but the axial leaves absorb water and can attain up to 14 gallons within an hour. (SF Chronicle) — The Sacramento office to the National Weather Service will put a fire weather watch in effect from Thursday morning to Friday evening, amid gusty winds and dryness across Northern California. (AP)   Follow us on Twitter Katy Murphy @katymurphy POLITICO California @politicoca   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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