HomeMy WebLinkAboutItem 5h - Approve Draft Ltr to Legislators regarding Diablo Canyon Power Plant Item 5h
Department: Administration
Cost Center: 1001
For Agenda of: 2/3/2026
Placement: Consent
Estimated Time: N/A
FROM: Whitney McDonald, City Manager
Prepared By: Natalie Harnett, Policy and Project Manager
SUBJECT: APPROVE A DRAFT LETTER TO LEGISLATORS REGARDING DIABLO
CANYON POWER PLANT
RECOMMENDATION
Approve sending a letter to members of the California State Legislature on behalf of the
City of San Luis Obispo titled “Request for State Legislation Supporting Coastal Land
Conservation and Restoration of Tax Revenue for Impacted School Districts and Local
Government Service Providers Related to Diablo Canyon Power Plant” (Attachment A)
POLICY CONTEXT
The City Council annually adopts a Legislative Action Platform (“Legislative Platform”)
that establishes the City’s positions on legislative matters of importance . It does not
extend to advocacy for or against any individual project, program, or entitlement
application unless specifically noted. On December 22, 2025, the City received a request
to join in efforts to seek legislative support on a part of an issue not included in the City’s
current Legislative Platform, therefore, the matter was presented to the Council for
direction on January 20, 2026. Specifically, Council considered an invitation from the
County of San Luis Obispo (County) to join a letter to the Legislature regarding Diablo
Canyon Power Plant (DCPP). Council opted not to sign the letter and instead appointed
an ad hoc committee to provide direction to staff on preparing a draft letter aligned with
guiding principles and the City’s Legislative Platform, and to return to Council for appr oval
at the February 3, 2026 City Council meeting.
DISCUSSION
Background
This is a follow-up item from the January 20, 2026 City Council meeting where Council
considered an invitation from the County to join a letter to the Legislature regarding Diablo
Canyon Power Plant. The County’s proposed letter included three primary requests from
the Legislature:
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Item 5h
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
DCPP including land valuation for the duration of its extended operations or
provide alternative 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.
Following consideration of public comment and deliberation, Council opted not to sign the
letter and instead appointed an ad hoc committee consisting of Council Member Marx
and Council Member Shoresman to provide direction to staff on preparing a draft letter
aligned with guiding principles and the City’s Legislative Platform, and to return to Council
for approval at the February 3, 2026 City Council meeting.
Following Council direction on January 20, staff prepared a draft letter for legislative
advocacy regarding DCPP. Council declined to join the County’s proposed letter due to
language supporting a 20-year license extension. The City has not previously taken a
position for or against the license extension and during the January 20th meeting, Council
reaffirmed that approach. Instead, the City’s focus has been on ensuring that any
continued operation prioritizes public saf ety, provides appropriate fiscal mitigation for
local impacts, and incorporates long-term land conservation planning. Council supported
addressing fiscal mitigation and land conservation and requested a letter reflecting the
City’s adopted Legislative Platform, past actions on the issue, and 2016 Guiding
Principles.
The draft proposed letter prepared by staff and reviewed and proposed by the ad hoc
committee is provided in Attachment A and urges state legislation to:
Support coastal land conservation and public access planning.
Restore lost tax revenues for local governments and school districts impacted by
continued DCPP operations.
Ensure public safety, fiscal equity, and long-term planning during the current
extension through 2030 and any future operations.
DCPP is currently operating under SB 846 authorization through 2030 (Unit 1) and
2030/2031 (Unit 2). In June 2025, the Nuclear Regulatory Commission (NRC) completed
its safety and environmental review, finding the plant safe for up to 20 additional years.
This review did not grant the extension but allows operations while PG&E’s license
renewal application is under review. The California Coastal Commission approved a key
permit in December 2025 requiring land conservation measures, while final approval from
the Regional Water Quality Control Board for water usage remains pending. PG&E’s
current license application seeks an extension through 2045.
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Item 5h
Previous Council or Advisory Body Action
On January 20, 2026, Council considered joining the County’s letter and appointed an ad
hoc committee (Council Members Marx and Shoresman) to guide preparation of a City -
specific letter. The committee met on January 23, 2026, and the final draft reflects their
direction.
Public Engagement
Notice of this agenda item was provided through the meeting's posted agenda. The public
may submit comments in writing before the meeting or share their input during the public
meeting.
CONCURRENCE
The ad hoc committee concurs with the recommendation.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report because the action does not constitute a “Project” under CEQA
guidelines Section 15378.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2025-26
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund N/A N/A N/A N/A
State
Federal
Fees
Other:
Total N/A N/A N/A N/A
ALTERNATIVES
1. Modify the letter. Council may direct staff to make specific changes to the draft letter
before approval.
2. Do not send a letter. Council may choose not to send a letter, resulting in no City
action on this legislative item at this time.
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Item 5h
ATTACHMENTS
A - Draft Letter to Legislators Regarding Diablo Canyon Power Plant
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City of San Luis Obispo, Office of the City Council, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7114, slocity.org
Date
To: Members of the California State Legislature
Subject: Request for State Legislation Supporting Coastal Land Conservation and Restoration of
Tax Revenue for Impacted School Districts and Local Government Service Providers Related to
Diablo Canyon Power Plant
Dear Members of the California State Legislature:
On behalf of the City of San Luis Obispo (City), and consistent with our previous advocacy and current
legislative platform, we write today seeking the state legislature’s support for coastal land
conservation and restoration of tax revenue that has been eliminated, despite continued operation
of Diablo Canyon Power Plant (DCPP). We believe these are essential considerations that must be
included in long-term planning during the current extension to 2030 and if continued operation is
contemplated beyond 2030 as well.
The City has consistently emphasized that any period of continued operation must be accompanied
by strong public safety protections, fiscal certainty for impacted local governments and school
districts, and continued planning for both eventual decommissioning and future land use. Cities,
counties, school districts, and special districts have planned, staffed, and delivered essential public
services based on long-standing fiscal assumptions tied to the facility’s operating timeline. As State
policy related to DCPP continues to evolve, it is critical that the communities bearing these impacts
are treated equitably and not left to absorb the consequences of statewide decisions. As the
Legislature evaluates potential actions related to DCPP, the City respectfully urges consideration of
the following principles:
Public Safety and Emergency Preparedness: The City is located within ten miles from the
DCPP in evacuation or “Protective Action Zone” 8. The safe operation of DCPP must remain
the foremost priority. Continued operation should continue to be subject to rigorous
regulatory oversight and include sustained funding for local and regional emergency
preparedness, spent fuel storage security and ongoing long-term planning, public safety
services, and other coordination activities that protect the City and surrounding
communities. Evacuation planning should be improved, in case of a nuclear disaster.
Fiscal Mitigation: School districts and local governments in the region have experienced
significant fiscal impacts resulting from changes to DCPP’s operating assumptions, including
the loss of historic unitary tax revenues. These revenues, eliminated in 2025, risk causing the
loss of classrooms, student services, public safety, infrastructure maintenance, other core
community services, and also funding for emergency planning and response while the state’s
only nuclear power plant continues to operate. It’s essential that the funding formula used
to pay for these services adjust for the unanticipated, continued operation of DCPP and the
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impact that places on local communities. If it is decided that the previous tax structure is no
longer appropriate, we ask that the legislature provide equivalent, reliable fiscal mitigation
for affected jurisdictions for the duration of continued DCPP operations. Any alternative
approach should ensure fiscal equity among impacted agencies and avoid shifting the
financial burden of State policy decisions onto local governments and schools.
Long-Term Planning and Land Conservation: Legislative actions should support continued
regional and local planning for eventual decommissioning, workforce transition, and future
land use. The City also supports the conservation of coastal lands surrounding Diablo Canyon
and the expansion of appropriate public access, in coordination with regulatory agencies,
Tribal communities, and conservation partners, while ensuring that land conservation efforts
benefit local jurisdictions.
The City of San Luis Obispo stands with its neighboring cities, school districts, and regional partners
in urging the Legislature to adopt a balanced approach that protects public safety, supports
education and essential services, and provides fiscal certainty for communities hosting critical
infrastructure on behalf of the State.
We appreciate the Legislature’s continued engagement and look forward to working collaboratively
to advance solutions that are equitable, transparent, and responsive to local impacts.
Thank you for your consideration.
Sincerely,
Erica A. Stewart
Mayor, City of San Luis Obispo
Cc: Relevant Legislative Committees
Senator John Laird
Assemblymember Dawn Addis
County Board of Supervisors
Cal Cities
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