State Water Board staff outline proposed changes to once‑through cooling mitigation MOU, increase funding for marine protected area work

State Water Resources Control Board staff presented proposed revisions to the interim mitigation memorandum of understanding for once‑through cooling (OTC) mitigation funds and invited public feedback on the draft changes.

The staff presentation, given at the board’s June 3 meeting, said the revisions would increase the Ocean Protection Council’s annual allocation of interim mitigation funding from $5,400,000 to $6,500,000 and direct the remaining funds to the State Coastal Conservancy. The revisions also propose that the Conservancy seek to spend at least 50% of the cumulative interim mitigation funding it receives through 2030 on projects “within the geographic region of Diablo Canyon,” and expand eligible projects to include watershed restoration if they meet the MOU and OTC policy requirements.

The proposal is described in documents released May 19, 2025, and staff said they will accept written public feedback through noon on June 21, 2025; staff anticipate finalizing the MOU in August 2025.

Why it matters: OTC mitigation funds are a continuing source of state support for coastal and estuarine habitat work while several coastal power plants remain in interim compliance with the OTC policy. The proposed MOU revisions change how those funds are allocated and add transparency, tribal consultation, and community engagement…