CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 8
Placement: Business
Meeting Date: January 12, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Assistant City Manager
SUBJECT: Request from County of San Luis Obispo for Support of Legislation Supporting Extended Operations of Diablo Canyon Power Plant and Restoration of Unitary Tax Treatment
RECOMMENDATION
Consider authorizing the County of San Luis Obispo to include the City as a supporter of the County’s request for legislation to authorize operations of the Diablo Canyon Power Plant (DCPP) for an additional 20 years, restore pre-decommissioning unitary tax treatment for the DCPP, and support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP.
BACKGROUND
San Luis Obispo is the host county for the Diablo Canyon Power Plant (DCPP), the only operating commercial nuclear power plant in California which provides approximately 9% of the State’s total power generation. Historically, the DCPP was assessed a unitary tax, providing approximately $21 million in revenues for the County, cities, school districts and special districts. The DCPP also provides a number of high-wage jobs within the County, further supporting the region’s economy.
In 2016, Pacific Gas and Electric Company (PG&E) announced that DCPP would close by 2025 after a decommissioning process with a corresponding reduction in local tax revenues, the loss of approximately 1,500 jobs and other indirect economic impacts to the region. However, in 2022, following an increase in energy demand and future projections, the State Legislature approved and the Governor signed Senate Bill 846 to extend operations at DCPP through 2030 to ensure energy reliability as California continued developing clean energy supplies. However, this legislation included provisions to exempt new investment in DCPP from extending its operations which prevented restoration of unitary tax revenues to the region. As a result, unitary tax receipts have been reduced to $8 million in countywide revenues as the assessed value of the plant has declined pending its planned closure.
On December 16, 2025, the County Board of Supervisors approved the circulation of a draft letter to agencies that have received DCPP unitary tax revenue to request State legislation in the 2026 legislative session to:
1) Authorize operations of the DCPP for an additional 20 years; 2) Restore pre-decommissioning unitary tax treatment for the DCPP or provide other financial mitigations to the County and local jurisdictions impacted by exemptions to the taxable value of the DCPP during the period of extended operations; and Staff Report: County Request to Support Diablo Canyon Power Plant Extension Page 2 January 12, 2026
Multi-Year Goals
☐ Public Safety and Community Services ☒ Economic Development and Housing ☐ Community Infrastructure ☒ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement 3) Support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP.
The County is seeking support from cities within San Luis Obispo County for this request to the legislature in the interest of having a unified coalition of agencies to convey the importance of this issue to the long-term financial stability and public benefit of the region. Participation in the request would include the inclusion of the City’s name and/or logo on the letter to the legislature.
Staff is bringing this request to the Council as the City’s Legislative Platform does not provide policy guidance on considering this request. Representatives of the County will attend the Council meeting and provide further information on this request which is also being considered by other cities this month.
FISCAL IMPACT
There are no funding impacts to this staff report.
ALTERNATIVES
The Council has the following alternatives to consider:
1) Consider authorizing the County of San Luis Obispo to include the City as a supporter of the County’s request for legislation to authorize operations of the Diablo Canyon Power Plant (DCPP) for an additional 20 years, restore pre-decommissioning unitary tax treatment for the DCPP, and support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP; or 2) Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
ATTACHMENTS
1. Letter Requesting Legislation Supporting Extended Operations of DCPP, Coastal Land Conservation, and Restoration of Unitary Tax Treatment
Draft
COUNTY OF SAN LUIS OBISPO BOARD OF SUPERVISORS
John Peschong District One Supervisor
Bruce Gibson District Two Supervisor
Dawn Ortiz-Legg Chairperson, District Three Supervisor
Jimmy Paulding Vice-Chairperson, District Four Supervisor Heather Moreno District Five Supervisor
Katcho Achadjian Government Center County of San Luis Obispo 1055 Monterey Street | San Luis Obispo, CA 93408 | (P) 805-781-5450 | (F) 805-781-1350 [email protected] | slocounty.ca.gov
12/16/2025
To: Members of the California State Legislature
Cc: Relevant Legislative Committees
Subject: Request for Legislation Supporting Extended Operations of Diablo Canyon Power Plant, Coastal Land Conservation, and Restoration of Unitary Tax Treatment Dear Members of the Legislature:
On behalf of the County San Luis Obispo Board of Supervisors, we write to express our firm support for legislative action to enact measures authorizing Diablo Canyon Power Plant (DCPP) to operate for up to twenty (20) additional years, restore unitary tax treatment for DCPP, and support coastal land conservation and public access near the facility.
As the host county for California’s only operating commercial nuclear power plant which provides approximately 9% of the State’s total generation of power, San Luis Obispo County recognizes Diablo Canyon as a critical component of the State’s clean energy infrastructure. Extending the plant’s operational life for up to 20 years would provide stable, carbon free baseload power that strengthens grid reliability, reduces greenhouse gas emissions, and advances California’s clean energy and climate goals.
Continuation of operations, however, must be accompanied by fiscal fairness for the communities that host and support the facility. We therefore urge the Legislature to restore predecommissioning unitary taxation for DCPP during any extended period of operation. Historically, unitary tax revenues have been distributed to the County, cities, school districts, and special districts, supporting essential public services, educational programs, infrastructure maintenance, and public safety. Restoration of this tax structure is critical to maintaining the fiscal stability of local governments and public agencies.
If restoring the pre-decommissioning unitary tax treatment proves infeasible, we request alternate financial mitigations to the County and local jurisdictions impacted by exemptions of taxable value on the DCPP during the period of extended operations established by the statutory prohibition against including operating costs in PG&E’s rate base.
In tandem with extended operations, we support further conservation and public access frameworks for lands surrounding Diablo Canyon. Protecting these coastal and natural resources ensures long term environmental stewardship while providing opportunities for responsible public Attachment 1
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County of San Luis Obispo Government Center
1055 Monterey Street | San Luis Obispo, CA 93408 | (P) 805-781-5000 | (F) XXX-XXX-XXXX [email protected] | slocounty.ca.gov
access and public benefit. This balanced approach of clean energy, fiscal stability, and environmental conservation serves both local communities and the broader interests of the State.
In addition, future DCPP allocations related to changes in the values being assessed for portions of the property that may legislatively transition from highest and best use assessed acres of land towards lower value assessed acres of land due to new conservation restrictions should not financially penalize the affected region with lower assessed revenue figures.
Accordingly, we respectfully request that the Legislature:
1. Support the Nuclear Regulatory Commission’s regulatory approval process and establish a state licensing pathway to authorize DCPP to operate for up to 20 additional years.
2. Enact legislation restoring historic pre-decommissioning unitary tax treatment for Diablo Canyon Power Plant including land valuation for the duration of its extended operations or provide alternate equivalent financial mitigations.
3. Support the California Coastal Commission’s land conservation and public access plan for lands surrounding Diablo Canyon, in coordination with appropriate regulatory and conservation agencies.
Taken together, these actions represent a prudent and forward-looking policy framework that balances California’s clean energy needs with local fiscal health, environmental protection, and community interests.
Thank you for your attention to this important matter. We stand ready to work collaboratively with the Legislature to enact legislation that reflects these priorities and supports a sustainable and equitable future for San Luis Obispo County and the State of California.
Sincerely,
Chair
County San Luis Obispo Board of Supervisors
San Luis Obispo County
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