A Central Coast lawmaker is trying to close a multi-million dollar funding gap tied to the Diablo Canyon Power Plant. The proposal comes after California extended the plant’s operations while excluding a previous tax that funded local schools and public services.
Senate Bill 931 would extend the plant’s unitary tax which provides roughly $9 million a year to local governments, fire protection, emergency services and school districts.
The funding was originally established to help offset local impacts from the plant and was expected to end when Diablo Canyon closed in 2025. But after California extended the plant’s operations through 2030, lawmakers did not extend the funding stream.
State Sen. John Laird, the bill’s author, said the gap has left local agencies facing significant shortfalls.
“It’s trying to just essentially continue what was going on for the 40 years, for the five years of the extension that has been approved by the state,” Laird said in an interview.
He said local school districts are facing severe budget pressure without the funding.
“There’s some districts, in particular the San Luis Coastal School District, that will go over a financial cliff,” Laird said. “If this isn’t extended, they will lose millions of dollars that they’ve been receiving.”
SB 931 would immediately restore the payments if signed into law and align the funding timeline with Diablo Canyon’s extended operations. The bill has cleared the Senate Appropriations Committee and now moves to the full Senate for consideration.