PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: January 20, 2026
TITLE:
2026 State Legislative Agenda
RECOMMENDATION:
Approve the 2026 State Legislative Agenda.
DISCUSSION:
Townsend Public Affairs (Townsend) provides the City with grant writing and legislative advocacy service at the state level. As part of its services, Townsend formulates the City’s State Legislative Agendas and provides effective grant writing and legislative advocacy services. Townsend has been successful in helping to obtain funds for various City priorities and acting as a liaison to state legislators with respect to issues that may impact the City.
2026 State Legislative Agenda
Townsend has proposed a State Legislative Agenda for 2026, provided as Attachment
1. The legislative agenda serves as the City’s official policy document for interacting with state officials and for taking positions on legislation. At this meeting, Spencer Street of Townsend will review the proposed 2026 Legislative Agenda and provide an overview of current activity at the state level.
Conclusion and Recommendation
Staff recommends that the City Council approve the City’s 2026 State Legislative Agenda (Attachment 1).
FISCAL IMPACT:
There is no fiscal impact associated with this action.
ATTACHMENTS:
1. 2026 State Legislative Agenda
Submitted by: Jorge Garcia, City Manager
City Manager Approval:
Council Agenda 1-20-2026 12.A-1
2026 STATE
LEGISLATIVE
AGENDA
City of Pismo Beach, California
January 2026
Council Agenda 1-20-2026 12.A-2
Attachment 1
2026 State Legislative Agenda Page 1
Townsend Public Affairs, Inc., is proud and honored to represent the City of Pismo Beach. This legislative agenda is prepared in alignment with City Council goals and objectives, and to provide background information and recommendations for the City as part of its critical work on behalf of its residents and visitors.
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
January 2026
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2026 State Legislative Agenda Page 2
2026 State Legislative Agenda
CITY OF PISMO BEACH, CALIFORNIA
Governance, Administrative and Finance
Central to many of the City’s functions is its ability to effectively govern, administer and financially sustain its municipal operations and assets on behalf and for the benefit of its residents. Among the priorities for the City are following:
• Preserve local control by the City for its various permitting, land use, contracting and other discretionary actions;
• Ensure transparency in government and the ability of residents to participate, comment and access information on local decision-making and budgetary actions; • Maintain the ability to provide sustainable retirement and medical programs for City employees and their families; and
• Protect the City and its residents from State legislative or administrative directives without full cost-recovery or mitigation.
• Support the implementation of additional flexibilities governing open government initiatives including provisions of the Ralph M. Brown Act. • Support legislation that maintains local discretion and authority over transfer taxes and other locally approved revenue measures, opposing any state efforts to preempt, delay, or undermine their implementation.
• Support policy and regulatory reforms to tort law and liability insurance to protect the function of local governments from unforeseen risk circumstances. • Support legislative and regulatory reforms that reduce unfunded liability costs and mitigate the financial exposure of public agencies resulting from excessive litigation, statutory penalties, or outdated liability frameworks.
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The City should oppose legislative efforts to eliminate or restrict local control of permitting and cost-recovery efforts. The City should support measures increasing local autonomy, protecting privacy, and maintaining local authority over public records. The City should oppose mandates from the State that don’t include funding or other mitigation. The City should oppose any effort to restrict its ability to contract for goods or services in a way that increases costs to the City or results in the reduction of services. The City should support efforts to provide additional flexibility to the City in the provision and administration of retirement and medical benefit programs, while ensuring those programs are sustainable for past, current, and future employees.
General Infrastructure
City facilities are heavily utilized by residents and are often lower in priority compared to transportation, water, and other facilities impacted by usage, accidents, and weather. The following needs are generally high on the list of necessary improvements:
• Replacing or rehabilitating outdated public building facilities, including city hall and administrative functions, public safety facilities for law enforcement and fire departments, as well as specialized departments;
• Shore and coastal protection and erosion measures; and • Energy and water efficiency improvements to facilities that provide cost savings to the City, as well as benefits for the environment and health.
Recommendations include supporting State legislation and administrative actions to direct funding into grant programs for energy and water efficiency improvements. The City should support the capitalization of revolving loan fund programs to assist local agencies with financing of capital costs.
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Currently, funding for capital costs of building replacement and rehabilitation are severely constrained, but there are opportunities in a couple of areas:
• The Governor’s Office of Business and Economic Development (GO-Biz) and the California Infrastructure and Economic Development Bank (IBank) offer the State Infrastructure Revolving Fund Program with low-interest-rate loans, that could benefit efforts with the City’s old city hall, public safety facility improvements, and capital projects.
Transportation Infrastructure
Transportation facilities that provide safe and efficient movement of people and goods are critical to the City. Priority will be placed on efforts to secure funding for the following areas of need:
• Safety for pedestrians and bicyclists, including students, who share the transportation corridors and facilities;
• Efficient circulation in the City, particularly in the downtown core, including parking availability;
• Bridge and related infrastructure funding to ensure usage of existing facilities; • Coordination with State highways and infrastructure;
• Improvements to transportation corridors for aesthetics, environmental, and water benefits; and
• Maintenance and preservation of existing facilities to ensure life cycle usage and reduced costs of rehabilitation and replacement.
Recommendations include supporting State legislation to increase the amount of funding available through the Highway Users Tax Account and Road Maintenance and Rehabilitation Account, as well as specific grant programs. Similarly, support for efforts to expedite project delivery processes that reduce procurement or permitting lead times to enable projects to move forward. The City should support legislation and administrative actions to make grant funding more competitive for City projects, through revisions of screening and scoring criteria that create Council Agenda 1-20-2026 12.A-6
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an equitable distribution of funding for all communities. The City should oppose any attempts by the Legislature or Administration to withhold transportation funding from jurisdictions related to their progress toward or status of their Regional Housing Needs Assessment (RHNA) or Housing Element compliance. The City should support policy changes that make the use of electric bicycles safer, including but not limited to changing the definitions in law to more accurately reflect their capabilities, and requiring vendors to provide a notice of liability upon sale.
Funding and collaborative work with State agencies will help the City advance priority projects and efforts, including:
• Circulation and parking improvements with potential funding from programs such as the Caltrans Sustainable Transportation Planning Grants and congestion management funds. • Aesthetic and other improvements to corridors such as Shell Beach, that provide a visual and quality-of-life incentive to increased pedestrian and bicyclist use. The Active Transportation Program provides funding to encourage this type of usage. Similarly, Cap and Trade auction proceeds fund programs for greening improvements to public facilities (Urban and Community Forestry Program and Urban Greening Grant Program). • Regional congestion management proposals that benefit the City, including improvements to U.S. Highway 101, county and city roadways, and other modes of transportation (Solutions for Congested Corridors Program).
Water Infrastructure and Resources
The State’s ongoing drought cycles have highlighted the need for continued conservation practices, as well as a focus on ways to maximize the use of water resources, including recharging the area’s groundwater for future use and examining the potential of innovative reuse. These short-term and long-term strategies are high priorities for the Governor and Administration.
Policies related to these priorities include:
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• Continuation of the City’s history of water conservation at public facilities and by residents;
• Improvements to storm water and drainage infrastructure; • Treatment and recycling of wastewater for recharging groundwater resources; • Reuse of treated wastewater for potable and other innovative purposes; and • Pursuit of regional partnerships to effectively and efficiently leverage the infrastructure and collaboration benefits of recycled water.
Recommendations include supporting policies at the State Water Resources Control Board (Water Board) that allow local agencies to set and achieve realistic and meaningful water conservation targets and encourage the Water Board to consider the impacts to staff resources of the many reporting requirements. The City should support further efforts by the Governor and Legislature to appropriate additional funding to key water grant and loan programs, such as the Water Recycling Funding Program. Similarly, the City should support and encourage State funding for planning, outreach, design, construction, and ongoing operation efforts to local and regional projects for water recycling and basin recharge.
The City already has a strong history of working collaboratively with the Water Board on water projects. Listed below are funding opportunities available and being pursued for specific projects:
• The Water Board administers the Clean Water State Revolving Fund (SRF) which provides low-interest-rate loans and grants for water projects, particularly those involving recycled water. Supporting additional funds for the SRF program may help the City’s various water and wastewater projects advance faster toward funding.
• As part of Central Coast Blue (regional recycled water project) , the City has also successfully pursued funding from the Water Board’s Groundwater Grant Program, funded from Proposition 1.
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• Also as part of Central Coast Blue, the City is in the process of accepting a funding award from the SRF’s Recycled Water Funding Program.
Energy Infrastructure and Resources
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 will likely take years to complete and will include opportunities for public comment.
The City of Pismo Beach is supportive of keeping Diablo Canyon open to continue to provide safe, affordable, and clean energy for the region. Recommendations include supporting any legislation or budget appropriations at the State that ensures safe operation of Diablo Canyon.
Park, Recreation and Open Space
Providing residents with a high quality of life, and visitors with an incredible experience to encourage additional visits, continues to be a significant priority for the City. Tourism is one of the economic drivers for the City that provides the opportunity for increased services and infrastructure improvements that keep residents satisfied.
As part of this quality of life and visitor experience, recreational and open space opportunities are key. Important needs and policies include:
• Identifying and taking action to acquire and retain open space areas; Council Agenda 1-20-2026 12.A-9
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• Maintaining park space in the City to ensure opportunities for activity, cleanliness, and visual benefit;
• Developing improvements to park and open space facilities to ensure access; and • Leveraging partnerships to ensure all park, open space, and recreational facilities are acquired, developed, and utilized.
Recommendations include supporting State legislative efforts to increase funding for programs that support these spaces, including legislative bond measures for consideration by voters. The City should support the repurposing of previous grant funds that have not been utilized so additional cycles can be solicited. Legislative efforts to revise existing grant programs to allow for additional uses that more closely align with City needs should be supported.
The City’s priority on parks and open space is evident in its work to identify opportunities and collaborate with regional partners. Several of the specific projects and funding opportunities for the City include:
• The City has a long history of working collaboratively with the Land Conservancy of San Luis Obispo County (LCSLO) at the Pismo Preserve and remains committed to the ongoing operation and potential future additional development of the project. • The facilities and open space in Price Canyon provide an opportunity to access additional funds toward the purpose of tourism and resident quality of life. • The City will also seek to apply for funding from the programs funded by Proposition 68 or other statewide bonds to provide recreational and open space opportunities for residents and visitors as appropriate. These opportunities will contribute significantly to the City’s quality of life and economic vitality.
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Public Safety and Health
As noted above in General Infrastructure, facilities for the City’s public safety services remains a very high priority, and needs and opportunities are outlined in that section. Similarly, ensuring the City has the financial resources to provide services remains key. Several areas of policy should also be considered, including:
• Ensure appropriate funding levels for identified needs of law enforcement and fire departments;
• Support policies related to data management that provide cities maximum flexibility in meeting State standards with regards to collection, accessibility, and preservation; • Ensure the ability of local law enforcement to comply and address changes to issues such criminal sentencing policies;
• Ensure the City and its officials are prepared and able to respond appropriately to disasters and emergencies, including fire prevention and suppression; and • Ensure the City is prepared to prevent, respond, and recover from public health emergencies, including but not limited to the coronavirus (COVID-19).
Recommendations include supporting State legislative efforts or Governor’s actions to provide additional budgetary and grant funding for programs that address a need identified by the City’s police and fire departments. Similarly, the City should support efforts to prevent disasters, as well as to plan for appropriate emergency response, including training for officials and funding for equipment and other response and recovery efforts.
In particular, the City should continue to support State efforts providing funding and other coordination resources for the prevention and suppression of wildfires. These efforts should include funding and support for updated mapping resources to serve in mutual aid and other suppression activities. The City should oppose any State efforts to complicate via permitting or Council Agenda 1-20-2026 12.A-11
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increasing the cost of routine fuel modification work for wildfire prevention. These include increasing labor costs related to reclassification of public works or other unnecessary changes that increase the overall cost of effective wildfire prevention. The City should support any additional permit streamlining proposals from the Legislature or the Governor for fuel modification projects. In addition, the City should support funding for technology resources for mobile emergency operation center needs and evacuation preparedness efforts, including cellular and internet connectivity infrastructure.
The City should also support legislative efforts to improve fire safety, emergency notification, and more effective policing without compromising officer or resident safety.
Recommendations also include preparing the City and its residents for future health emergencies similar to the COVID-19 pandemic. The City should continue to support efforts by the Governor and State Legislature to provide funding to local jurisdictions with flexibility for the use of that funding to support a variety of needs unique to each jurisdiction, including the continuation of public services and personnel, backfill for lost tax revenue, and to support State and county public health outreach and efforts. The City should also support efforts to assist communities such as Pismo Beach with a significant reliance on tourism to ensure public services are not severely impacted by the loss of transient occupancy and sales tax revenues. The City should support direct funding and resource allocations to municipal governments, instead of at county or statewide levels, allowing for the rapid deployment of such items as personal protective equipment and other critical materials and funding.
Housing and Homelessness
The State Legislature and Governor continue to work on solutions to the State’s crisis regarding the availability and affordability of housing. In many areas of the State, local communities are either struggling with a lack of available housing, or with prices so high as to make Council Agenda 1-20-2026 12.A-12
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homeownership prohibitive, or both. Reports by the California Department of Housing and Community Development (HCD) and other housing stakeholders have noted concerns with “local barriers” to effectively addressing this housing situation and concerns about methodologies for the establishment of impact fees among other local policy authorities.
Every community is different, and for the City, there are several policies to consider:
• Ensure local permitting and regulatory processes do not serve as barriers to an appropriate amount of available housing;
• Examine housing affordability so families and individuals can own or rent as they choose; • Ensure there is available workforce housing to ensure a quality of life is available for all residents and individuals contributing to the City’s economy. • Ensure that appropriate economic development incentives exist to promote housing as a desirable land use policy
Recommendations include supporting State legislative efforts to streamline the development of housing, while protecting the City’s permitting, impact fee, and regulatory processes. The City should support efforts to provide funding mechanisms for developing housing and other related infrastructure, as well as funding for effective housing development and ownership programs.
The City should support efforts to provide funding for grant programs that connect housing with employment, recreation, schools, and public services. Furthermore, the City should support retooling the RHNA process to ensure that local impacts are being considered and housing production and zoning is conducted in a mindful, impactful, and regional way. The City should also support funding and policy modifications that require additional staffing resources be deployed by HCD to ensure uniformity within the housing element compliance and review process.
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The future of housing funding remains very much uncertain. While the Legislature and Governor have approved a significant amount of housing-related legislation over the last few years, the 2018 voter-approved housing bond and other mechanisms in these efforts are untested and their effectiveness in addressing the housing crisis remains to be seen. Additionally, new housing bonds have been proposed in many of the recent legislative sessions. For the City, options to consider may include:
• Creation of funding mechanisms such as financing districts and tax increment proposals that have the benefits and potential for guaranteed revenue streams; • Cap and Invest funding through the Affordable Housing and Sustainable Communities Program, which emphasizes higher density housing developments with a high degree of connectivity to jobs and transit; and
• Potential funding from the State through budgetary agreements between the Governor and Legislature.
The City should support efforts to harmonize and seek legislation mandating changes in land use to promote housing with the Coastal Act. The Coastal Act must be followed, but often conflicts with State law without much clarity on navigating between the two sets of regulations. Efforts should be made to ensure that moving forward, this conflict is addressed by future legislation.
Economic Vitality and Quality of Life
Many of the subject areas described in this platform, if not all, play key roles in the economic vitality of the City: parks and open space provide recreational opportunities, well-maintained infrastructure provides clean water and easily-navigated streets, and public safety provides peace of mind. Priorities areas to consider include:
• Ensuring the business climate is positive and able to attract and retain businesses that provide quality employment opportunities and good products and services; • Ensuring public infrastructure is adequate for business development needs; Council Agenda 1-20-2026 12.A-14
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• Supporting tourism and visitors while maintaining the quality of life for residents; and • All opportunities for economic investment and sustainability activities are pursued.
Recommendations include supporting State legislative efforts to create and foster community incentives for financing of public improvements. The City should support legislative and administrative efforts to improve the activities at GO-Biz which could benefit the City. Similarly, the City should support funding programs to support local transportation planning efforts to help circulation, parking, and other specific plan elements. The City should support additional legislative efforts to provide a framework for short-term vacation rentals that protects local control and accessibility to data, while ensuring the City captures all transient occupancy taxes.
Given the City’s status as a destination for visitors and tourism, enhancing the visitor experience is key to helping drive the City’s economic vitality. Several efforts and opportunities are below:
• The City continues to maximize the potential for places such as Pismo Preserve and Price Canyon by pursuing funding opportunities in collaboration with regional partners. These efforts will result in increased accessibility to recreational and educational opportunities. • The City continues to pursue and support the reintroduction of the Pismo Clam and potential funding from sources such as the Natural Resources Agency and Ocean Protection Council that may help with those efforts. Reintroduction of the clam will provide yet another opportunity for the City to showcase one of its best resources to visitors.
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