Trump Administration awards Diablo Canyon Power Plant $271 million

August 14, 2026

Diablo Canyon Nuclear Power Plant

By KAREN VELIE

The U.S. Department of Energy announced today it has awarded $271 million to help support Diablo Canyon Nuclear Power Plant’s extended operations. Diablo Canyon Power Plant provides nearly ten percent of California’s power.

“A win for President Trump’s energy agenda, funding will allow the power plant to continue to provide secure power to residents, while keeping thousands of high-paying jobs in the region, according to the Department of Energy.

The Nuclear Regulatory Commission announced in April it had approved the renewal of the operating licenses of the Diablo Canyon Nuclear Power Plant for an additional 20 years. However, the renewal plan requires state approval.

Last week, Gov. Gavin Newsom announced he will not work to renew licenses to keep Diablo Canyon Nuclear Power Plant in San Luis Obispo County operating beyond 2030. Newsom said he will leave that decision up to the next administration.

“Keeping Diablo Canyon online is critical to meeting California’s growing demand for affordable, reliable, and secure electricity,” said Assistant Secretary for Nuclear Energy Ted Garrish. “The civil nuclear credit program is helping preserve this vital source of baseload power and ensuring that we don’t prematurely take reliable generation off the grid.

“The Department of Energy is committed to unleashing American nuclear energy and keeping facilities like Diablo Canyon operating safely and reliably for the American people.”

Because of the nuclear credit program, which was “created to provide strategic investments to preserve the nation’s existing nuclear fleet and protect high-paying American jobs,” the Diablo Canyon plant is able to stay open.

“Under the program, Pacific Gas and Electric is eligible to receive up to $1.1 billion to support activities necessary to keep Diablo Canyon operating,” according to  the Department of Energy. “Funds can be used to help cover the cost of reactor component replacements, equipment upgrades, and fuel procurement, or address unforeseen costs associated with extending the plant’s operations and maintaining continued service.”