Pacific Gas and Electric Co.'s announcement yesterday that it would shutter California's last nuclear plant and replace the power with energy efficiency and renewable energy was the result of a confluence of progressive state policies, CEO Anthony Earley said.

The closure of Diablo Canyon's two nuclear reactors on California's central coast in 2024 and 2025 will likely mean the end of nuclear power in the state, due to an existing state moratorium on new plants until the problem of radioactive waste is dealt with permanently.

The agreement came about through negotiations with labor unions and environmental groups, whose leaders said it could serve as a model for other states seeking to shut down nuclear or fossil-fueled plants.

But Early noted that California's unique suite of policies formed the basis for the deal.

He cited last year's passage of S.B. 350, a bill that raised the state's renewable portfolio standard (RPS) to 50 percent and mandated a doubling of energy efficiency by 2030 as well as continued growth of rooftop solar systems and local governments procuring their own electricity, a practice known as community choice aggregation.

"All of these things have contributed to our conclusion that we can phase out Diablo Canyon," Earley said.

The agreement commits PG&E to using renewables for 55 percent of its total retail sales by 2031.

He said the deal would not have happened if PG&E had gotten its way in negotiations last year to redefine RPS-eligible renewables to include nuclear power.

"We actually do believe that we could have had a lower-cost strategy that way, and we would have been using nuclear," he said. "Given the current state policies, this is the best solution for us."

Renewables target 'significant'

The agreement still needs approval by the California Public Utilities Commission. The PUC also will also be in charge of approving the procurement of replacement power and approving the use of $400 million in decommissioning funds on retaining and retraining workers at the plant and compensating the city of San Luis Obispo for lost property taxes.

PG&E also needs approval from the State Lands Commission to extend the lease on the state's coast through 2025; it currently is set to expire in 2018. A hearing Tuesday will determine whether the utility has to perform an environmental impact report on the lease extension.