The Morro Bay to Cayucos connector project is right on track. Currently, the County is working to meet certain requirements/regulations for the project and will then begin work on design to pin down its blueprints.
As part of the California Environmental Quality Act (CEQA) the County of San Luis Obispo prepared and certified an Environmental Impact Report (EIR) for the project (view it online here). The EIR identifies the ways in which the environment will be affected by the project, gathers feedback from the community, and identifies the best alignment for the path. Next, because Federal Funds will be used on the project, the County must meet National Environmental Policy Act (NEPA) requirements and is therefore preparing an Environmental Impact Assessment (EIS).
The design phase of the project is funded and will begin as the NEPA process draws to a close. Design completion is expected for August 2014.