Council unanimously approves consent items after county and PG&E explain Diablo Canyon-related requests

Arroyo Grande City Council · January 14, 2026

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Summary

Arroyo Grande council approved consent items that included a county request urging state action on Diablo Canyon operations, restoration of historic unitary tax treatment, and support for Coastal Commission land-conservation plans; county and a PG&E representative addressed council questions about prior mitigation payments.

During public comment and the consent-agenda discussion on Jan. 13, San Luis Obispo County officials and a PG&E representative urged Arroyo Grande to support the county’s legislative outreach on Diablo Canyon.

County representative (recorded in the transcript as Kate Valentine) and a fourth‑district supervisor (identified in the transcript as Jimmy Pauling) described a county board letter requesting three outcomes from the state legislature: recognition of Diablo Canyon’s regional economic and energy role and support for operations of up to 20 additional years; restoration of historic unitary‑tax treatment (or another fiscal‑fairness mechanism) for the host community; and support for the California Coastal Commission’s multi‑phase land conservation and public‑access plan for the Diablo lands.

The county explained that earlier “10‑90” mitigation funds were paid out over nine annual payments (the transcript referenced an amount of about $8.3 million per year) to offset revenue losses when decommissioning was anticipated; those payments were distributed and not automatically subject to return if the plant’s tax status changes. PG&E’s representative told council that SB 846 (as referenced in the meeting) did not reimpose a unitary tax and that the question of future tax treatment is one for the legislature.

Council member Guthrie moved approval of consent items 9a–9h (which include the item reflecting county action on Diablo-related requests); the motion was seconded and passed on a unanimous roll‑call vote (Yes: Guthrie, Maravilla, Lowe, Seacrest, Mayor Ray Russom).

The council did not take additional policy action that night beyond approving the consent agenda; PG&E and the county said they would pursue legislative and administrative channels in Sacramento to address the tax and operational questions surrounding Diablo Canyon.