PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.B
Meeting Date: December 16, 2025
TITLE:
2026 Federal Legislative Agenda
RECOMMENDATION:
Approve the 2026 Federal Legislative Agenda.
DISCUSSION:
Thorn Run Partners currently provides the City with grant writing and legislative advocacy services at the federal level. As part of its services, Thorn Run has formulated the City's Federal Legislative Agendas for several years and provided focused and effective grant writing and legislative advocacy services in accordance therewith. Thorn Run has been very successful in helping to obtain funds for various City priorities and acting as a liaison to federal legislators with respect to complex issues.
2026 Legislative Agenda
Thorn Run has proposed a Federal Legislative Agenda for 2026, provided as Attachment
1. The legislative agenda serves as the City's official policy document for interacting with federal officials and for taking positions on legislation. At this meeting, Greg Burns of Thorn Run will review the proposed 2026 Legislative Agenda and provide an overview of current activity at the federal level.
Conclusion and Recommendation
Staff recommends that the Council approve the City’s 2026 Federal Legislative Agenda (Attachment 1).
FISCAL IMPACT:
There is no fiscal impact associated with this action.
ATTACHMENTS:
1. 2026 Federal Legislative Agenda
Submitted by: Jorge Garcia, City Manager
City Manager Approval:
Council Agenda 12-16-2025 12.B-1
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Cityȱ ofȱPismoȱBeach,ȱCaliforniaȱ
2026ȱFederalȱLegislativeȱAgenda
Council Agenda 12-16-2025 12.B-2
Attachment 1
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Prepared by Thorn Run Partners for the
Pismo Beach City Council
Mayor Ed Waage
Mayor Pro Tempore Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton
Jorge Garcia, City Manager
Questions regarding the information in this book may be directed to:
Greg Burns Jorge Garcia
(202) 390-3204 (805) 773-7007
December 2025
Council Agenda 12-16-2025 12.B-3
Attachment 1
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City of Pismo Beach
2026 Federal Legislative Agenda
Water Resources and Infrastructure
Central Coast Blue & Infrastructure
Support continued full funding the Bureau of Reclamation’s Title XVI Program. Support City efforts to secure federal funding for the Central Coast Blue project as well as other infrastructure projects while federal agencies implement the Bipartisan Infrastructure Law.
Coastal Erosion and Resilience
Support funding and policies that addresses the impacts of coastal erosion and resilience.
Defense Issues
Vandenberg Space Force Base
Support federal investment in Vandenberg Space Force Base to enhance the nation’s national security and provide economic benefits to the greater northern Santa Barbara and southern San Luis Obispo community.
Public Safety
Emergency Services Support, Emergency Management Reform, and Wildfire and the Wildland Urban Interface
Support funding for important public safety and wildfire and the wildland urban interface grants.
Monitor changes to the Federal Emergency Management Agency. Support any City of Pismo Beach applications for these funds.
Energy & Environment
Energy Issues
Support the continued operation of the Diablo Canyon Nuclear Power Plant. Oppose the expansion of offshore oil and gas exploration in California’s federal waters. Monitor the development of offshore wind energy off the coast of California.
Land and Water Conservation Fund; Open Space Opportunities & Park Amenities Support the state conservation grant program of the Land and Water Conservation Fund, which would provide opportunities for the City of Pismo Beach for acquisition or land preservation improvement opportunities.
Endangered Species Act Issues; Designation of Critical Habitat for the Monarch Butterfly Monitor the classification of the monarch butterfly as a threatened species and the subsequent designation of critical habitat for the species.
Social Services
Community Development Block Grant Program
Support adequate funding for the Community Development Block Grant program for future fiscal years.
Council Agenda 12-16-2025 12.B-4
Attachment 1
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FEDERAL ISSUE: Central Coast Blue & Infrastructure
BACKGROUND: To respond to increasingly frequent drought concerns, the City of Pismo Beach created Central Coast Blue, a recycled water project to boost the region’s water supply and relieve concerns related to groundwater overdraft. The project will utilize an effluent stream that is otherwise pumped into the ocean and put it through an advanced filtration process and then inject it into the groundwater basin, thereby helping to provide a sustainable source of water for the region. Not only will the recycled water augment the natural ground water supplies, it will also create a barrier to help prevent saltwater intrusion into the basin. Once complete, the project could recycle up to 900 acre-feet of water per year and up to an additional 3,530 acre-feet per year should additional phases be completed.
To capture federal funding for the project, the City of Pismo Beach submitted a feasibility study to the Bureau of Reclamation’s Title XVI WIIN Act Program that was approved in 2018. Since then, the City was awarded $796,094 in FY 2018, $1.7 million in FY 2021, and $14,124,000 in FY 2022 from the Bureau’s Title XVI program for Central Coast Blue. The City may seek additional funding to reach the maximum 25 percent federal contribution (the cap for which was recently increased to $40 million per project). The project has also received state funding and up to $36 million in financing from the federally-funded, state-administered revolving loan fund (SRF).
The City of Pismo Beach is pursuing a fixed-price design-build contract as the preferred delivery model for the design and construction of the Central Coast Blue project, which will initially serve City interests. The total estimated project construction cost is $59.1 million. Grant sources total up to $39.5 million and the SRF loan request is $36.3 million, anticipated to be finalized by the first quarter of 2026.
In other initiatives, the City successfully competed for a Safe Streets for All grant for $160,000 to help develop a Vision Zero Action Plan. The funding will play a critical role in advancing the City’s Action Plan, aimed at eliminating roadway fatalities and serious injuries. Ensuring the safety of all who use our roads—whether driving, biking, or walking—is a top priority, and this grant will enable the City to take meaningful steps toward a safer, more connected community.
Furthermore, in the Fiscal Year 2026 Transportation, Housing and Urban Development appropriations bill, Representative Carbajal has supported $2 million for the Shell Beach Road Path project. While this funding remains pending, it is possible it could be finalized by Congress before the end of the year or shortly thereafter.
Finally, as we reach the end of the Bipartisan Infrastructure Law (BIL), which included a surface transportation authorization plus additional funding for a variety of infrastructure projects, we have consistently raised concern that the next iteration of the surface transportation law will look much different than the BIL. First, there will be far less money, much of that will be directed to states for traditional highway formula programs, and transit funding could come under attack.
POSITION: Support City efforts to secure federal funding for the Central Coast Blue project as well as other infrastructure projects.
Council Agenda 12-16-2025 12.B-5
Attachment 1
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FEDERAL ISSUE: Coastal Erosion and Resilience
BACKGROUND: Coastal erosion poses significant threats to communities like Pismo Beach, where the natural beauty of the coastline underpins the local economy, tourism, and quality of life. The City supports federal policies and funding that promote the development and implementation of sustainable solutions to mitigate erosion, enhance resilience, and preserve vital coastal ecosystems. Prioritizing shoreline stabilization, habitat restoration, and the use of innovative approaches can ensure long-term protection of public infrastructure, private property, and environmental resources.
The City advocates for legislation that increases federal investment in coastal resilience programs, such as grants through NOAA’s Coastal Resilience Fund and funding for the U.S. Army Corps of Engineers' coastal projects. Supporting community-based planning efforts and removing barriers to accessing federal resources will empower small and mid-sized coastal communities like Pismo Beach to address erosion effectively. The City also encourages policies that promote intergovernmental collaboration.
By aligning with federal initiatives and advocating for robust funding and legislation, the City seeks to safeguard its shoreline for future generations while maintaining its role as a thriving coastal community.
POSITION: Support funding and policies that addresses the impacts of coastal erosion and resilience.
Council Agenda 12-16-2025 12.B-6
Attachment 1
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FEDERAL ISSUE: Vandenberg Space Force Base
BACKGROUND: Federal support for Vandenberg Space Force Base (VSFB), located in California, is a key aspect of U.S. national security and space exploration initiatives. Vandenberg has historically been vital for satellite launches, missile testing, and supporting military and civilian space missions. In recent years, the federal government has continued to provide substantial support to the base, both in terms of funding and infrastructure development, due to its growing importance in national defense and commercial space activities.
The federal investment in Vandenberg’s expansion and mission diversity provides significant economic benefits to the Santa Barbara/San Luis Obispo County regions. The increased demand for space missions and associated infrastructure creates jobs and drives economic activity in the region.
Vandenberg Space Force Base receives significant funding through annual defense budgets. These funds are typically allocated for base maintenance, facility upgrades, and support for military and space-related missions. The budget also supports the modernization of facilities, particularly those related to launch and tracking operations, to ensure the base can handle the increasing demand for space missions.
Recently, the federal government has invested heavily in modernizing Vandenberg's infrastructure. This includes the construction of new launch facilities, expanded control centers, and improved logistical support systems. These upgrades enable VSFB to support both national defense missions and the growing commercial space sector.
As the U.S. Space Force continues to grow, Vandenberg’s role becomes even more crucial. The establishment of Space Force as a separate branch of the military has led to increased federal funding for base operations and expansion. The Space Force’s mission to enhance and protect space-based capabilities has translated into a focus on developing more robust space infrastructure at Vandenberg, including defense systems for monitoring and protecting U.S. assets in space.
Federal support for Vandenberg Space Force Base is comprehensive, spanning military, commercial, scientific, and environmental sectors. The base’s growing role in national defense, space exploration, and commercial satellite launches ensures continued investment and infrastructure development, strengthening its position as a key asset for the U.S. government’s space ambitions.
Recent investment in Vandenberg focuses on bolstering its role as a commercial and national security spaceport, highlighted by a new $9.5 million state grant to the Space Vandenberg initiative, managed by REACH, intended to support over $600 million in planned federal spaceport improvements. This funding aims to support planned federal infrastructure improvements, promote regional economic growth, develop workforce training programs, and foster innovation in the space industry. The initiative is a collaborative effort by the state of California and regional partners to meet the increasing demand for launch capacity and strengthen the region's position in the global space economy.
POSITION: Support federal investment in Vandenberg Space Force Base to enhance the nation’s national security and provide economic benefits to the greater northern Santa Barbara and southern San Luis Obispo community.
Council Agenda 12-16-2025 12.B-7
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FEDERAL ISSUE: Emergency Services Support, Emergency Management Reform, and Wildfire and the Wildland Urban Interface
BACKGROUND:
Emergency Services Support -- Firefighters
The Federal Emergency Management Agency (FEMA) routinely makes funds available to local governments via competitive grant solicitations. The two primary FEMA programs that provide financial support for local fire rescue and emergency services are the Staffing for Adequate Fire & Emergency Response Grants (SAFER) and the Assistance to Firefighters Grants (AFG). The City of Pismo Beach may compete for these types of funds.
The primary goal of the AFG program is to meet the firefighting and emergency response needs of fire departments and nonaffiliated emergency medical service organizations by helping them to obtain critically needed equipment, protective gear, emergency vehicles, training, and other resources required to protect the public and emergency personnel from fire related hazards.
Meanwhile, the SAFER program was created to provide funding directly to fire departments and volunteer firefighter interest organizations to help them increase or maintain the number of trained, “front line” firefighters available to their communities. The goal of SAFER is to enhance the local fire departments’ abilities to comply with staffing, response, and operational standards established by the National Fire Protection Association (NFPA).
Recently, these fire safety programs have been funded with relatively healthy amounts by Congress; such funding may continue.
Emergency Services Support – Police
Local police departments in the United States receive funding from a variety of federal sources, typically through grants and programs administered by different federal agencies. These federal resources are often aimed at supporting law enforcement operations, enhancing public safety, or addressing specific issues like community policing, crime prevention, or technology improvements.
The programs most relevant to the City of Pismo Beach may be some of those offered by the Department of Justice, including:
x Edward Byrne Memorial Justice Assistance Grant (JAG) Program: This is one of the largest sources of federal funding for local law enforcement. It provides flexible funding that can be used for a variety of purposes, such as crime prevention, law enforcement programs, and equipment.
While the City does not receive a direct allocation due to its size, the City and County of San Luis Obispo both do and could opt to share funding.
x Community Oriented Policing Services (COPS) Office: COPS offers various competitive grants to local police departments to support community policing initiatives, improve public safety, and enhance police-community relations.
x COPS Hiring Program (CHP): A specific competitive program under the COPS Office that funds the hiring of new officers or retaining existing officers to increase community policing efforts.
Council Agenda 12-16-2025 12.B-8
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Federal Emergency Management Agency Reform
The Administration has quietly ushered in a variety of reforms that may change the federal government’s response to disasters. Specifically, the Administration proposed increasing the disaster declaration per capita threshold from $1.89 to $7.56 per person, which will have the effect of limiting the number of disasters that receive federal support. In California, the new minimum damage threshold would now be ~$ 298.6 million to qualify for federal engagement, a significant increase. This change would have meant that 71 percent of disasters nationwide from 2008 - 2024 would not have qualified for federal support, shifting $41 billion in federal disaster assistance to state and local governments during that time.
FEMA also proposes to not support federal cost shares exceeding 75 percent, costing state and local governments significantly more after disasters as the typical prior cost share was 90 percent. FEMA proposes to not cover reimbursement for Category G, or recreational facilities, which will leave local governments with significantly more responsibility to rebuild such community assets.
The Administration will stop approving new allocations of Hazard Mitigation Grant Program funding, which historically has been allocated at rates equaling 15 percent of the amount FEMA intended to spend on a disaster, eliminating key funding for projects to improve resilience after a disaster.
Finally, the FEMA Reform Council, appointed by the President when he took office, is expected to release their report on additional changes to FEMA on December 11.
Meanwhile, Congress has proposed its own set of bi-partisan reforms, but these remain silent on all FEMA has already implemented and the fate of the legislation is unclear, as is Administration support for such a bill.
Wildfire and the Wildland Urban Interface
Pismo Beach has a major risk of wildfire over the next 30 years. 99% of properties in Pismo Beach are at risk of being affected by a wildfire, and wildfires can cause significant damage to properties and infrastructure. In addition to damaging properties, wildfire can also cut off access to utilities, emergency services, impact evacuation routes, and may impact the overall economic well-being of an area.
As recently as November 2024, four acres of the Pismo Preserve burned. Over the past several years, major fires in the region have proved threatening to the City, highlighting the need for better planning and fire prevention.
Meanwhile, the federal government offers some resources to help address these issues. For example, the U.S. Forest Service offers the Community Wildfire Defense Grants program, whereby they will offer a total of $200 million to assist local communities at risk of wildfire damage with planning or implementation projects to mitigate wildfire damage.
The Forest Service will provide funding to at-risk communities in areas identified as having a high risk of being damaged by wildfires. This opportunity may be a good way to develop a Community Wildfire Protection Plan if one does not already exist. The grant emphasizes funding for the most at-risk communities, so the City’s high risk would likely make an application more competitive.
POSITION: Support funding for important public safety and wildfire and the wildland urban interface grants. Monitor changes to the Federal Emergency Management Agency. Support any City of Pismo Beach applications for these funds.
Council Agenda 12-16-2025 12.B-9
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FEDERAL ISSUE: Energy Issues
BACKGROUND:
Diablo Canyon Nuclear Power Plant
The Diablo Canyon Nuclear Power Plant was planned to close in 2025 under a 2016 agreement between Pacific Gas and Electric (PG&E), then-Governor Jerry Brown, labor unions representing plant workers, and environmentalists who objected to the plant's location near an earthquake fault line, the potential for dangerous accidents and the problem of what to do with radioactive waste. More recently, Governor Newsom and the California legislature extended the plant's life span to 2030 to stave off blackouts while the state pursues its goal of a carbon-free grid by 2045. In November 2023, PG&E officially requested federal permission from the Nuclear Regulatory Commission (NRC) to keep the Diablo Canyon plant open for 20 more years. The NRC’s evaluation of the request may take years to complete and will include opportunities for public comment.
Meanwhile, in 2024, the Civil Nuclear Credit Program funded by the Inflation Reduction Act finalized terms for $1.1 billion in credit payments to PG&E. The credits are slated to be paid in installments for a four-year period of performance from 2023 through 2026, with the amount of the annual payment to be adjusted based on several factors, including actual costs incurred to extend the operation of the Diablo Canyon Power Plant.
Oil & Gas Exploration
For many years, the federal government has developed five-year Outer Continental Shelf (OCS) Oil and Gas Leasing programs to guide energy exploration activities in federal waters. The last two OCS Oil and Gas Leasing programs for 2012-2022 did not include new oil or gas leasing sales off the coasts of California, Oregon, and Washington.
However, in 2018, the Bureau of Ocean Energy Management (BOEM) released a draft proposed program (DPP) for the National Outer Continental Shelf Oil and Gas Leasing Program for 2019-2024. The DPP included 47 potential lease sales in 25 of the 26 planning areas, including the Pacific Coast, regardless of previous efforts to keep certain areas free from drilling. The City commented in opposition to the DPP, particularly in opposition to the two leases in the Southern California region, which includes the water off the shores of Pismo Beach.
Most recently, the Administration released a new five-year OCS draft plan that includes opening all of the California coastline to drilling. Predictably, the California Congressional delegation opposes this proposal. The plan calls for lease sales in California to occur beginning in 2027, but the future of the plan remains murky.
Offshore Wind Development
In 2021, the Bureau of Ocean Energy Management (BOEM) announced the designation of the Morro Bay Wind Energy Area (WEA). The Morro Bay WEA is located approximately 20 miles offshore the central California coastline and comprises approximately 240,898 acres (376 square miles).
In 2022, BOEM announced results from their wind energy auction for five leases offshore California, drawing competitive high bids from 5 companies covering 373,268 total acres off central and northern Council Agenda 12-16-2025 12.B-10
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California. BOEM claimed the leased areas could produce over 4.6 gigawatts of offshore wind energy, enough to power over 1.5 million homes.
Upon entering office for his second term, President Trump issued an executive order to temporarily withdraw all areas on the Outer Continental Shelf (OCS) from offshore wind leasing and paused new approvals, permits, and loans for wind projects. BOEM rescinded all previously designated Wind Energy Areas (WEAs), effectively halting the process for new leases in previously targeted locations.
POSITION: Support the continued operation of the Diablo Canyon Nuclear Power Plant. Oppose the expansion of offshore oil and gas exploration in California’s federal waters. Monitor the development of offshore wind energy off the coast of California.
Council Agenda 12-16-2025 12.B-11
Attachment 1
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FEDERAL ISSUE: Land and Water Conservation Fund; Open Space Opportunities & Park Amenities
BACKGROUND: The Land and Water Conservation Fund Act of 1965 was enacted to help preserve, develop, and assure access to outdoor recreation facilities for our nation. The law created the Land and Water Conservation Fund (LWCF) in the U.S. Treasury as a funding source to implement outdoor recreation goals.
The LWCF has been the principal source of monies for land acquisition for outdoor recreation by four federal agencies—the National Park Service, Bureau of Land Management, Fish and Wildlife Service, and Forest Service. The LWCF also funds a matching grant program via the National Park Service to assist states (and local governments as sub-recipients) in acquiring recreational lands and developing outdoor recreational facilities. A portion of the appropriation is divided equally among the states, with the remainder apportioned based on need, as determined by the Secretary of the Interior. The states award their grant money through a competitive selection process based on statewide recreation plans, as well as establish their own priorities and criteria. This state program could offer opportunities for the City of Pismo Beach to either purchase open space opportunities or for additional public park amenities.
The LWCF is authorized at $900 million annually. The Great American Outdoors Act, which became law in 2020, mandates that the LWCF will receive its authorized funding with 40 percent, or $360 million, allocated annually to the state grant program. Given relatively recent funding of between $100 and $125 million to the program from Congress for the past several years, this is basically a tripling of the funding and should increase the monies available to California from about $11 million to at least $33 million, thereby increasing the City’s future opportunities.
Apart from mandatory funding for the LWCF, the Great American Outdoors Act also creates a National Parks and Public Land Legacy Restoration Fund that will be funded by up to $1.9 billion per year for the next five years to help restore maintenance backlogs on National Park Service and other federal lands.
POSITION: Support the state conservation grant program of the Land and Water Conservation Fund, which provides opportunities for the City of Pismo Beach for acquisition or land preservation improvement opportunities.
Council Agenda 12-16-2025 12.B-12
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FEDERAL ISSUE: Endangered Species Act Issues; Designation of Critical Habitat for the Monarch Butterfly
BACKGROUND: The City of Pismo Beach is well-known as a home to a large, seasonal monarch butterfly population from November through February. In 2014, the U.S. Fish and Wildlife Service (USFWS) received a petition to list the monarch butterfly as an endangered species.
In 2024, the USFWS proposed listing the monarch butterfly as a threatened species under the Endangered Species Act, determining that the monarch requires federal protections — albeit with some management flexibility that has yet to be fully defined, but with a designated critical habitat that includes portions of the City of Pismo Beach and 4,395 acres in coastal California.
Critical habitat is a specific geographic area(s) that contains features essential for the conservation of a threatened or endangered species and that may require special management and protection. Federal agencies are required to consult with the USFWS on actions they carry out, fund, or authorize to ensure that their actions will not destroy or adversely modify critical habitat. According to the USFWS, a critical habitat designation generally has no effect on situations that do not involve a federal agency—for example, a private landowner undertaking a project that involves no federal funding or permit.
The listing proposal specifies some 4(d) exemptions, including injuring or killing monarchs due to vehicle strikes and the nonlethal collection for possession or research of 250 or fewer monarchs per year. When it comes to more potentially controversial exemptions, such as for wind farms, infrastructure projects or pesticide use, USFWS didn't come to any final conclusions but is asking for public input.
Next steps on this proposed listing will be implemented by the incoming Trump administration.
Comments on the listing were considered if received by mid-May 2025. The USFWS will review these comments and write the final decision. The final determination may differ from the draft proposal because the agency will consider all comments received during the comment period as well as any information that may become available after the proposal. Protections for the monarch butterfly would apply after the effective date of a final rule.
An unofficial count of the butterfly population in 2024 showed there were less than 10,000 monarchs at western overwintering sites, higher than the count of about 2,000 four years before, but lower than the previous year count of more than 200,000. These figures remain down from the millions of Western monarch butterflies that are thought to have existed in the past.
Meanwhile, the International Union for Conservation of Nature (IUCN) has decided North America’s monarch butterfly is not “endangered.” Instead, the species is only “vulnerable” to extinction.
Forecasting future monarch populations is difficult, meaning interested parties need to keep a close watch on populations into the future.
POSITION: Monitor the classification of the monarch butterfly as a threatened species and the subsequent designation of critical habitat for the species.
Council Agenda 12-16-2025 12.B-13
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FEDERAL ISSUE: Community Development Block Grant Program BACKGROUND: The Community Development Block Grant (CDBG) program is a flexible program that provides communities with federal funding to address a wide range of unique community development needs. The CDBG program provides annual grants on a formula basis to participating jurisdictions, including San Luis Obispo County, from which the City receives a sub-allocation.
The City of Pismo Beach must use CDBG funding to target those in the community that are most economically vulnerable. In previous years, the City received sub-allocations from San Luis Obispo County and awarded those funds to the Community Action Partnership of San Luis Obispo County (CAPSLO). This CDBG funding enabled CAPSLO to provide a variety of home repairs for lower income families, seniors, and disabled individuals in Pismo Beach, reviving a City partnership with CAPSLO to address affordable housing.
Congress provided the CDBG program with $3.3 billion in FY 2025. This resulted in an allocation to San Luis Obispo County of just over $1.79 million.
POSITION: Support adequate funding for the Community Development Block Grant program for future fiscal years.
Council Agenda 12-16-2025 12.B-14
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