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Group says plant needs more thorough review

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Concerns include earthquake risk, climate risk

By Clark Mindock

April 3 (Reuters) - An environmental advocacy group has

sued the U.S. Energy Department seeking to block $1.1 billion in

federal funding that aims to help California's PG&E ( PCG )

continue running its aging Diablo Canyon nuclear power plant.

Friends of the Earth said in its lawsuit filed Tuesday in

Los Angeles federal court that the Energy Department approved

the funding in January without adequately updating the

government's 50-year-old environmental analysis and other old

review documents for the power plant near San Luis Obispo, in

violation of federal law.

The National Environmental Policy Act requires federal

decision makers to carefully assess environmental impacts before

making significant decisions. But Friends of the Earth said the

Energy Department's review of the potential impacts from Diablo

Canyon's continued operations was based on old documents that

didn't adequately assess the threat of earthquakes from a newly

discovered fault line under the plant, the risk of damage to the

plant from storms exacerbated by climate change or concerns

about brittle components in the power plant failing.

The lawsuit seeks an order stopping the funds from being

sent to PG&E ( PCG ) until the concerns are addressed.

"This isn't simple - it's a nuclear power plant. It has very

high risk and the government is letting it operate without

thorough analysis" said Hallie Templeton, the legal director of

Friends of the Earth.

A PG&E ( PCG ) spokesperson said in a statement Wednesday that

electricity generated at the power plant would "largely be

replaced by fossil fuels" if it were to close, and said keeping

the plant open will save Californians money. The spokesperson

said the plant has been built to withstand extreme natural

disasters, including earthquakes, and that safety is the

company's most important responsibility.

The Energy Department declined to comment.

The PG&E ( PCG ) plant, which was set to fully shut in 2025, applied

for funding in the initial phase of the Energy Department's $6

billion Civil Nuclear Credit program meant to help keep

struggling nuclear power reactors open. It is the last operating

nuclear plant in California.

Democratic President Joe Biden has set a goal to decarbonize

the power grid by 2035, and his administration sees nuclear

power as a critical component of that effort.

California had been planning since 2016 to close the Diablo

Canyon plant and replace it with other carbon-free energy

sources, but changed course in 2022 as it faced challenges to

its transition away from fossil fuels like rolling blackouts

during heat waves.

Friends of the Earth has already opposed efforts to keep the

plant open in court and in administrative proceedings, largely

arguing that regulators and PG&E ( PCG ) need to better ensure the plant

is safe.

A state court judge last year rejected an effort by the

group to stop PG&E ( PCG ) from applying for 20-year license renewals

for the plant, and two U.S. appeals court challenges are

currently pending. The group has also filed petitions with the

U.S. Nuclear Regulatory Commission seeking to shut down the

plant, and has opposed PG&E's ( PCG ) efforts to renew its licenses.

The case is Friends of the Earth v. U.S. Department of

Energy, U.S. District Court for the Central District of

California, No. 2:24-cv-02678.

For the plaintiffs: Michael Lozeau and Richard Drury of

Lozeau Drury; and William Eubanks of Eubanks and Associates

For the DOE: Not yet available

Read more:

US finalizes $1.1 billion in credits for California nuclear

plant

Biden administration launches $6 bln nuclear power credit

program

California willing to keep nuclear plant running to keep

lights on