Plans to build industrial port near Avila Beach in peril

December 11, 2025

Early site rendering of example of integration at Port San Luis.

By KAREN VELIE

The company in line to construct an offshore wind maintenance facility in rural Avila Beach terminated its contract with the Port San Luis Harbor District on Dec. 4. Two days earlier, Port San Luis Harbor District commissioners voted to delay plans to accept a $3 million grant to study industrialization of the port.

Part of the $3 million grant, $1.9 million, was slated to go to Clean Energy Terminals to study constructing an industrial facility at Port San Luis.

“Unfortunately, due to unprecedented uncertainties caused by changes in federal energy policy and changes in clean energy industry conditions, we have taken the difficult decision to pause our private-sector development activities related to the project,” according to a Dec. 4 letter from Clean Energy Terminals to the harbor district. “This letter is a formal notification of our decision to terminate the project evaluation agreement.”

Harbor district commissioners had planned to move forward with approval of the grant on Dec. 2, but after listening to public comment the commissioners voted unanimously to delay the vote while two other studies are underway.

While the majority of public speakers were opposed to the project, several speakers argued they needed more information to make an informed opinion.

Opponents of accepting the grant questioned the need for another study before two other studies are finished. Others argued it would be a waste of taxpayer funds to pay for a study while the federal government is planning to put a halt to wind mills off the coast of Morro Bay.

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