PG&E agrees to pay $16 million to San Luis Obispo County agencies

August 17, 2026

Diablo Canyon Nuclear Power Plant

By KAREN VELIE

PG&E has agreed to provide over $16 million to governments and school districts in San Luis Obispo County, Senator John Laird (D- Santa Cruz) announced today. The agreement mirrors legislation authored by Laird, Senate Bill 931, which would ensure funding for communities impacted by the ongoing operation of the Diablo Canyon Power Plant.

While the state has permitted Diablo Canyon Power Plant to continue operating through 2030, it did not extend the community funding established to offset local impacts. To address the gap, Laird introduced SB 931 to ensure continued support for local governments, schools, and services impacted by the plant’s ongoing operations.

Under the agreement reached, PG&E will make 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 due by Dec. 31.

“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,” Laird said. “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.”

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

The U.S. Department of Energy announced last week it has awarded $271 million to help support Diablo Canyon Nuclear Power Plant’s extended operations. Diablo Canyon Power Plant provides nearly ten percent of California’s power.