State, Ocean Protection Council and Conservancy propose updates to once‑through‑cooling mitigation MOU; South Oxnard residents press for community engagement

The State Water Resources Control Board on Tuesday reviewed proposed revisions to the interim mitigation memorandum of understanding that governs how payments from once‑through cooling power plants are allocated to habitat and marine protection projects.

The changes would increase annual funding directed to the Ocean Protection Council from $5.4 million to $6.5 million, expand allowable uses of funds to include certain watershed restoration projects, and direct the State Coastal Conservancy to pursue using at least 50% of its cumulative OTC funding through 2030 for projects in the geographic region of the Diablo Canyon power plant, staff said.

Board staff said the revisions respond to public comments and to updated interim mitigation calculations adopted by the board in 2024. Jonathan (State Water Board environmental scientist) presented the proposed changes and said the updates aim to “ensure the continued effective allocation of interim mitigation funds and identify opportunities for the 3 agencies represented here to engage with and receive input from tribes, environmental justice groups, and other interested persons.”

Ocean Protection Council Executive Director Jen Eckerley described OPC priorities for the grant program as fourfold: research and monitoring, outreach and education, enforcement and compliance, and habitat restoration to “increase marine life associated with California’s marine protected areas.” She told the board OPC has invested over $30 million across those priorities as of March 2025 and that OPC will continue annual reporting, public webinars and tribal consultation around project selection.

Amy Hutsell, executive officer of the California State Coastal Conservancy, outlined projects already funded with OTC mitigation money and related leveraged dollars: Via Creek (San Luis Obispo County), Ormond Beach (230 acres in Oxnard), the 104‑acre Los Cerritos wetlands southern area in Seal Beach, and Newland Marsh in Huntington Beach. Hutsell said OTC funds have been used for planning and permitting and that larger construction dollars come from other state sources; for example, she noted the Conservancy has directed $35 million in general‑fund climate package dollars toward the Ormond Beach restoration and said construction is due to begin in 2026.

The proposed MOU would also require the Ocean Protection Council and Coastal Conservancy to maintain a central public webpage listing projects and solicit public input on proposed projects before authorizing funding. Staff said public comments on the draft fact sheet will be accepted through noon on June 21, 2025, and staff anticipate finalizing the MOU in August.

Community members from Oxnard and South Oxnard, including Elma de la Aguila and youth organizer Odette Morgan, used public comment to press for stronger community engagement, for language access, and for commitments that the board and implementing agencies not permit further extensions of nearby power plants that community members say have long limited local coastal access and harmed public health. "My community does not need more extensions," Elma de la Aguila told the board.

Board member Laurel Firestone and others asked how the program will sustain projects when OTC mitigation payments decline as plants close; Hutsell and Eckerley said they will rely on a mix of state climate funds, federal grants and improved program efficiency, and that the MOU language strengthens tribal and community consultation.

The item was presented as informational; board staff noted the draft MOU has been released for public feedback and that the board will not vote on the MOU at this meeting.

What changed and why: OPC’s annual allocation would rise to $6.5 million to account for programmatic needs for MPA management; the Conservancy may fund watershed restoration projects consistent with OTC policy; funds tied by the owners of Ormond Beach and Haines generation facilities to local projects are reflected in the draft MOU; and the MOU clarifies that the Ocean Protection Council and Coastal Conservancy will “seek concurrence” from the State Water Board on proposed projects rather than receive unilateral “approval,” reflecting collaborative oversight.

Next steps: Public comment on the draft materials through June 21, 2025; staff anticipate finalizing the MOU in August 2025. The Ocean Protection Council and Conservancy will continue presenting work items and annual updates at State Water Board meetings as projects proceed.