By admin 
PG&E will pay San Luis Obispo County $16.6 million to make up for lost unitary tax payments related to the continued operation of the Diablo Canyon nuclear power plant.
Read more Sacramento weekend roundup: Cockfighting bill, inaugural Bugtopia and more
The county will receive two annual payments of $8.3 million this year and next, through an agreement recently secured by Sen. John Laird and announced Monday morning.
The county will allocate that funding “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 news release from Laird’s office said.
The first payment will be made on Dec. 31, Laird’s office said.
PG&E agreed to provide the funding after Laird introduced Senate Bill 931, which would have restored funding to local agencies through 2030. The agreement mirrors the proposed bill, Laird’s office said, but was not secured through the legislative process.
“PG&E has now volunteered to provide the payments that would be required under SB 931,” the release said. “In addition, the funds will come from PG&E, not state taxpayers and not utility ratepayers.”
Laird will no longer pursue the bill now that the private agreement was reached, the release said.
The agreement comes after years of budget cuts and community concerns as local agencies, including schools and county offices, prepared to lose unitary tax funding due to the planned closure of Diablo Canyon.
When the state Legislature passed Senate Bill 846 to extend the power plant’s operations until 2030, it did not restore the funding designed to compensate the community for impacts caused by the power plant.
Laird said he will continue to advocate for the remaining three years of funding that PG&E has not yet agreed to pay.
“I will be addressing the remaining shortfall in the future,” Laird said in the release. “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.”
Assemblymember Dawn Addis co-sponsored Senate Bill 931 with Laird, and she applauded the recent agreement.
Read more Highway 1 still closed as Big Sur wildfire grows to more than 5,000 acres
“Since my time in the Legislature, I have worked non-stop to ensure San Luis Obispo County residents’ voices are at the table,” she said in the news release. “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.”
San Luis Obispo County CEO Matt Pontes called the funding a “win for the communities of San Luis Obispo County.”
“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,” he said in the news release.
County Supervisor Dawn Ortiz-Legg was also happy about the agreement, she said.
“We’re pleased to see a stopgap measure instituted by the senator’s office to help us get through these next couple years before legislation for extension can occur,” she told The Tribune.
San Luis Obispo County Supervisor Bruce Gibson said the $16.6 million is “a good start,” but there’s more work to be done.
“The county and its school districts deserve a fair and guaranteed revenue stream over the entire period to 2030, and the $8.3 million amount seems low to me — apparently calculated on depreciated values for the plant,” he said in a statement sent to The Tribune. “That valuation doesn’t square with PG&E’s thought that the plant is good to go until 2045.”
PG&E also celebrated the agreement.
“It helps address near-term community needs while recognizing the vital role Diablo Canyon plays in delivering reliable, clean and affordable energy,” PG&E senior director Tom Jones said in the release. “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.”
The San Luis Coastal Unified School District, which has cut around $10 million from its budget over the last three years by eliminating positions and increasing class sizes, among other impacts, has been particularly vocal about its frustrations with the loss in PG&E funding despite Diablo’s continued operations.
The Tribune reached out to San Luis Coastal officials on Monday morning for a response to the agreement, but did not immediately receive a response.
This story was originally published August 17, 2026 at 12:04 PM with the headline “PG&E to pay SLO County $16 million to make up for lost Diablo Canyon tax money.”
Read more This NC-based chain ranks No. 1 for fast-food breakfast for 4th year in a row