By Malena Carollo | CalMatters

Two weeks before the 2022 legislative session ended, Gov. Gavin Newsom’s administration came to lawmakers with a big ask: authorize a $1.4 billion state loan to keep open California’s last nuclear power plant, Diablo Canyon. The money was supposed to be a stopgap that would be fully repaid by an expected federal award. There was even a fail-safe: if the award fell short, other federal funds or profits from Diablo Canyon’s final year could cover the difference.

The bill passed.

Despite promises from Newsom’s administration and legislators at the time, CalMatters found the state may be required to forgive as much as $588 million, about 42% of the loan.

That’s partly because the maximum available federal award would never have covered the full loan. PG&E ap

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