A sneaky, indirect plan that could shut down Diablo Canyon by out-of-state coal interests

Diablo Canyon should power California's future instead of Wyoming coal

Californians for Green Nuclear Power (CGNP) has opposed this innocuously-named proposal since it was announced in 2024. SB 540 (Becker, 2025) is a form of California Independent System Operator (CAISO) grid regionalization, which has been opposed for good cause by the California legislature since at least 2016. CGNP has opposed a plan to transition California from nuclear to coal since its founding in 2013.

Search for Wyoming on the Clean Air Task Force’s map https://www.tollfromcoal.org/#/map/(title:none//detail:none//map:none/WY)

The text of SB 540 (Becker, 2025) is available at the official California Legislative Information website https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB540 Copies of the press release are available on request via CGNP’s email below. Make no mistake. This legislation would replace CAISO’s in-state governance with a multistate board. One of the confirmatory details is the legislation is backed by organizations opposed to nuclear power.

Here is the summary of our objections which were filed on May 8, 2024. CGNP's objections have been ignored. Additional details regarding our opposition are found at

https://tinyurl.com/WWGPI-Opposed

This proposal has been artfully packaged by skilled public relations professionals. The branding is "Pathways initiative" instead of "CAISO grid regionalization.” We would not be surprised if the multi-billionaire Warren Buffett is bankrolling this initiative, since he will be able to sell even more of his coal-fired power from Wyoming and nearby states into the lucrative California power market if the initiative succeeds.

Here's the summary based on our best understanding. If the plan results in wholesale electric power contracts between California and other states, independent of the name of the organization, the 2016 Supreme Court Decision Hughes v. Talen Energy, establishes those contracts are regulated by the Commerce Clause of the U.S. Constitution. This is federal preemption. Once CAISO is transformed into a multistate entity, California will lose its control over its electric power policies which were established in the wake of the ENRON energy crisis from 1999 to 2001. If this change is implemented, out-of-state coal interests will likely be able to successfully challenge California environmental laws such as SB 846 (Dodd, 2022) in federal court if those laws provide subsidies and incentives. SB 846 facilitates extended operation of Diablo Canyon Power Plant at least until 2030.

For a clear example of a failed national energy policy, consider Germany which shut down its fleet of safe, reliable, well-maintained, and cost-effective nonpolluting nuclear power plants and replaced nuclear with coal and Russian natural gas. Germany's GDP has been contracting for the past few years as unemployment rises. Here is an article with details from the February 21, 2025 Wall Street Journal, “Why Germany’s Confidence Is Shattered and Its Economy Is Kaput.” https://www.wsj.com/world/europe/why-germanys-confidence-is-shattered-and-its-economy-is-kaput-d1d95890

We look forward to your feedback. We plan to oppose CAISO grid regionalization in upcoming hearings before the California State Senate and California Assembly.

DISCLAIMER: This message does not constitute legal advice. Please consider consulting with experienced legal professionals for further details regarding how this proposed legislation might affect your interests.

/s/ Gene Nelson, Ph.D. CGNP Senior Legal Researcher and President
Californians for Green Nuclear Power, Inc. (CGNP)
1375 East Grand Ave Ste 103 #523
Arroyo Grande, CA 93420-2421
363 - 4697 cell in area code 805
Government [at]CGNP dot org email (Please substitute the @ and period.)
https://CGNP.org website
https://greennuke.substack.com/ GreenNUKE Substack

__________________

Here's CGNP's summary objections from about 9 months ago.

Western Interstate Energy Board Committee on Regional Electric Power Cooperation (WIEB-CREPC)
1600 Broadway, Suite 1020
Denver, Colorado 80202
(720) 897-4600
https://www.westernenergyboard.org/wwgpi/ website
Comments@WestWidePathwaysInitiative.org email
May 8, 2024

OPPOSE the West-Wide Governance Pathways Initiative (WWGPI)

SUMMARY:

The WWGPI is likely supported by vigorous lobbying by coal interests in states such as Wyoming with weak environmental protections. Independent nonprofit Californians for Green Nuclear Power (CGNP) believes the purpose of the WWGPI is to eventually implement a west-wide RTO or ISO to replace the California Independent System Operator (CAISO) for the state of California, despite a consistent rejection by the California legislature of CAISO grid regionalization plans. The California legislature rejected CAISO grid regionalization as a consequence of grid governance concerns and environmental concerns - this is a "state's rights" issue. CAISO has a footprint covering a large part of California and a small portion of Nevada. CAISO is controlled by a board selected by the Governor of California, yielding state control. CAISO's mandates were changed as a consequence of ENRON's profiteering schemes which significantly harmed the economic interests of California electricity and natural gas ratepayers.

California is vulnerable to out-of-state interests taking advantage of California's structural deficiency of a lack of in-state generation to serve all of the state's load coupled with high in-state demand. California imports roughly 1/3 of its annual power consumption of about 300 TWh / year, where a TWh is 1 billion kilowatt-hours. This is the largest amount of electricity imports of any state. California imports roughly 95% of the natural gas consumed in the state.

In a videoconference about 3 years ago, CGNP observed a pair of WIEB-CREPC officials describing a plan where the west-wide RTO would be created with participation of the western states except California. Then, plan proponents would "circle back" to include California. The harms to California include the potential nullification of California environmental laws such as SB 1368 (Perata, 2006) as a consequence of the 2016 U.S. Supreme Court decision in Hughes v. Talen Energy. In multistate RTOs or ISOs, state environmental laws regarding electricity generation policies are at risk for nullification as a consequence of federal preemption based on the U.S. Constitution's Commerce Clause. The ENRON saga also serves to illustrate how out-of-state firms took advantage of the essentially inelastic demand for electricity and natural gas to supply energy to California's industries and residences in our modern society. For the above reasons, the WWGPI should be rejected.

You can help CGNP fight Wyoming coal interests by mailing your tax-deductible donation check to our address above.