SACRAMENTO – Today Senator John Laird (D- Santa Cruz) announced an agreement between the County of San Luis Obispo and PG&E that will provide over $16 million in support for the community. The agreement mirrors legislation authored by Senator Laird, Senate Bill 931, that ensured funding for communities impacted by the ongoing operation of the Diablo Canyon Power Plant.

When the state extended operations at the Diablo Canyon Power Plant through 2030, it did not extend the community funding established to offset local impacts. To address the gap, Senator Laird introduced SB 931 that ensured continued support for local governments, schools, and services impacted by the plant’s ongoing operations. Today’s agreement is the first step to addressing the funding gap. Under the agreement that was reached, the county will receive two annual payments of $8.3 million that will be redistributed to local agencies whose budgets have been impacted by the accelerated decrease in unitary tax funding from the power plant and the expiration of the community fund. A partial payment is to be made by December 31, 2026.

“I authored SB 931 to make sure that the local community, including SLO County, cities, and schools, is adequately compensated for impacts associated with Diablo Canyon Power Plant’s extended operations until 2030,” stated Laird. “The bill was passed by the State Senate, as well as Assembly committees, and was positioned to go before the State Assembly floor this month. PG&E has now volunteered to provide the payments that would be required under SB 931.  In addition, the funds will come from PG&E, not state taxpayers and not utility ratepayers.  I support PG&E’s offer, which means that the local entities will soon receive the first payment of $8.3 million, followed by the second payment of the same amount next year. I’m very pleased with this outcome and sincerely appreciate the support the legislature and local parents and other community members have provided along the way. My work is not done on this matter, however.  There are still three years left (2027-2030) for which the community is still owed payments. I will be addressing the remaining shortfall in the future; but in the meantime, let’s celebrate this good news, while remaining focused on ensuring full payment for all five years of Diablo Canyon’s extension.” 

“This agreement is an important win for the communities of San Luis Obispo County,” stated Matt Pontes, Chief Executive Officer of San Luis Obispo County. “I want to personally thank Senator John Laird and his team, along with PG&E, for working hard to reach a solution that recognizes the importance of Diablo Canyon and the communities that host it. Securing two years of unitary tax revenue provides critical stability for our schools, public safety agencies, local governments and the essential services our residents rely on every day. We are especially grateful to Senator Laird for his leadership and commitment to our local communities. This agreement gives us an important bridge for the next two years, and we look forward to continuing the conversation with Senator Laird, PG&E and our state partners on a fair path forward for the years that follow.”

“We appreciate the partnership of Senator Laird, San Luis Obispo County and local leaders in reaching this agreement. It helps address near-term community needs while recognizing the vital role Diablo Canyon plays in delivering reliable, clean and affordable energy. We look forward to continuing conversations with state and local leaders, including Diablo Canyon’s role beyond 2030, to ensure local communities and the state both benefit from this critical energy resource,” said, Tom Jones, senior director, regulatory, environmental and repurpose.

“Since my time in the Legislature, I have worked non-stop to ensure San Luis Obispo County residents’ voices are at the table,” stated Assemblymember Dawn Addis. “It is crucial that PG&E fulfill its responsibility to our community by restoring critical funding that was missing from the 2025–2030 extension of Diablo Canyon Nuclear Power Plant operations. PG&E’s agreement to pay two of five years of the Essential Services Mitigation Fund is an important step forward in supporting our local communities who bear the responsibility of hosting California’s only operating nuclear power plant. This is critical for our students and the public agencies who serve the most vulnerable throughout San Luis Obispo County. I remain committed to ensuring our residents are heard, respected and their needs are fully met.”

The agreement reached between the county and PG&E addresses the issue Senate Bill 931 intended to resolve. Given this agreement legislation is no longer needed.