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 provisions.

Board staff and agency partners summarized the proposed changes and examples of how OTC funds are currently used. Jonathan (first name only in transcript) of the State Water Board’s Division of Water Quality summarized the MOU revisions and said they were responsive to public comments and to updated interim mitigation calculations. Jen Eckerley, executive director of the Ocean Protection Council, described OPC’s four investment priorities for OTC funds: monitoring and research, outreach and education to improve MPA (marine protected area) compliance, support for enforcement and compliance, and habitat restoration. Amy Hutzel (transcript: Amy Hutsell), executive officer of the State Coastal Conservancy, reviewed four Conservancy projects funded to date with OTC funds, including Via Creek (San Luis Obispo County), Ormond Beach planning work, the Los Cerritos Wetlands southern area restoration in Seal Beach, and Newland Marsh in Huntington Beach.

Key details and funding examples: - OPC annual allocation proposed to rise to $6,500,000 to support MPA network program costs. The remainder of annual interim mitigation funds would go to the Coastal Conservancy. - The Conservancy will aim to use at least 50% of cumulative interim mitigation funds it receives through 2030 for work in the Diablo Canyon geographic region (to reflect Diablo Canyon’s significant relative contribution to OTC impacts). - Examples of projects described by the Conservancy and OPC presenters: Via Creek restoration ($2,000,000 in OTC funds for construction), Ormond Beach restoration and public access (Conservancy used $1,500,000 in OTC funds for environmental compliance and related studies; state Coastal Conservancy approved a separate $35,000,000 general‑fund award for construction), Los Cerritos Wetlands southern area (roughly $12 million in OTC and related contributions toward a ~ $26 million construction budget; construction due fall 2025), and Newland Marsh planning and acquisition (conservancy OTC funds of ~$396,000 for acquisition, ~$556,000 for restoration planning).

Transparency, tribal and community engagement: The proposed MOU directs the OPC and Conservancy to maintain a central website listing current projects and prospective project opportunities and to seek early input from tribes within a reasonable vicinity of OTC facilities and from representatives of systemically excluded communities. Staff said OPC and the Conservancy are committed to at least one public webinar annually, public staff reports, and annual reporting to the Water Board.

Public comments: Several community speakers urged faster decommissioning and stronger local engagement for projects near Ormond Beach Generating Station. Elma Del Aguila (South Oxnard resident) and Odette Morgan (community organizer, CAUSE) asked that the board and partner agencies ensure meaningful, accessible community engagement, that meeting times be accessible to working families, and that materials be available in Spanish and Mixteco. Commenters asked the board to “not enable another extension” of the Ormond Beach facility and urged that mitigation funds (and other funding) be prioritized for local restoration and for community access to restored beaches.

Board action and next steps: The presentation was informational; the board did not vote on the MOU. Staff sought written feedback through June 21 and expect to finalize the MOU in August. The OPC and Coastal Conservancy staff said they intend to continue presenting on fund use at public Water Board meetings and to make draft project proposals available for public comment prior to final authorization.

Ending: Staff and agency presenters emphasized leveraging OTC funds with other state and regional funding (including recent climate package appropriations) and pledged to continue tribal consultation and outreach. Board members praised the collaborative updates and asked staff and agency partners to continue work on transparency and community engagement as projects move from planning into construction.