California, long a leader in aggressive renewable energy mandates, is showing early signs of softening its decades-old ban on new nuclear power. Bloomberg reported cracks are appearing in the state’s 1976 moratorium, driven by surging electricity demand from AI data centers and the challenge of hitting absurd climate targets like 90% clean electricity by 2035 and 100% by 2045.
At the center of the development is Assembly Bill 2647, introduced last month by Democratic Assembly Member Lisa Calderon with Republican co-sponsors. The legislation would exempt “advanced nuclear reactors”, defined as systems licensed by the Nuclear Regulatory Commission since 2005, from the state’s long-standing prohibition. Calderon stated the bill keeps nuclear “on the table” as an essential tool for reliable, low-carbon power.
The move aligns with a broader U.S. resurgence in nuclear interest, but in California it comes against a backdrop of chronic grid strain.
The state has already leaned on its sole remaining nuclear facility, Diablo Canyon, to avoid worse outcomes. In 2022/23, Governor Gavin Newsom pushed through lawsuits for an extension of the plant’s operations past its original 2025 closure date after warnings of rolling blackouts. It was a glaring admission that electric grids are far from being sustainable with just wind and sunlight.
PG&E Launches $73B California Grid Plan To Feed Starving AI https://t.co/tsmtfalX1K
— zerohedge (@zerohedge) September 30, 2025
Just last week, Diablo Canyon cleared its final state permitting hurdles, paving the way for continued operation through at least 2030 and potentially longer pending federal relicensing.
We’ve chronicled these pressures for years. As far back as 2023 we detailed the legal battles surrounding Diablo Canyon’s then-planned shutdown. Last year, we also noted Newsom’s clean-energy claims and how extensions of both Diablo Canyon and natural-gas plants were critical to preventing blackouts during peak summer demand.
Even with massive investments in solar, wind, and batteries, California’s grid has repeatedly flirted with instability, especially when intermittent renewables fall short during heat waves or evening ramps. The AI boom has only accelerated the problem; data centers are projected to drive unprecedented load growth nationwide, and California utilities are scrambling to keep pace.
The bill does not mandate new reactors or repeal the moratorium outright. It simply removes a regulatory barrier rooted in 1950s-era technology concerns and unresolved federal waste-storage issues. Whether it passes and whether utilities or tech firms actually pursue advanced nuclear projects remains to be seen.
Tyler Durden
Fri, 03/06/2026 – 22:10
