title
Receive a presentation by the Department of Resource Management on the NextEra Battery Energy Storage System AB 205 “Opt-In” application which allows certain developers to apply for a permit directly through the California Energy Commission (CEC); Provide direction as to whether the Board wants to request a Host Community Agreement in the County’s response to the CEC in lieu of the required Community Benefits Agreement Plan; and Provide feedback on NextEra Energy Resources’ proposed Community Benefits Plan Outline and staff recommended community benefit projects
body
Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors:
1. Receive a presentation by the Department of Resource Management on the NextEra Battery Energy Storage System AB 205 “Opt-In” application which allows certain developers to apply for a permit directly through the California Energy Commission (CEC);
2. Provide direction as to whether the Board wants to request a Host Community Agreement in the County’s response to the CEC in lieu of the required Community Benefits Agreement; and
3. Provide feedback on NextEra Energy Resources’ proposed Community Benefits Plan Outline and staff recommended community benefit projects
SUMMARY:
Solano County has experienced increased developer interest in battery energy storage projects. NextEra Energy Resources submitted an application with Solano County for a battery storage project which was put on hold on January 23, 2024 when the Board of Supervisors approved an initial 45-day moratorium on battery energy storage systems (BESS). The 45-day ordinance was subsequently extended through January 23, 2026 (Ordinance No. 2024-1852-U-E).
Assembly Bill 205 (AB 205), 2022 added Public Resources Code §25545 et seq. allowing developers of energy storage system facilities capable of storing 200 megawatt-hours (MWh) or more to “opt in” to direct permitting through the California Energy Commission (CEC). The code allows potential developers the option of bypassing the County’s ordinance by applying directly to the CEC. It also contains a requirement that an applicant include a Community Benefits Plan outline in their application.
NextEra Energy Resources is proposing to construct and operate a Corby Battery Energy Storage System (BESS) project, a 300-megawatt (MW) battery energy storage facility in unincorporated Solano County, located south of Kilkenny Road and West of Byrnes Road, close to PG&E’s Vaca-Dixon Substation. The proposed project includes an onsite substation, inverters, and other ancillary facilities such as fencing, roads, supervisory control and data acquisition system, storage containers, and trailers. This facility, if approved, will be among one of the largest BESS projects in the state, located on approximately 40 acres of predominately prime farmland, with an energy generation tie-in (gen-tie) crossing I-80 to interconnect to Pacific Gas and Electric Company’s (PG&E) Vaca-Dixon substation.
NextEra is pursuing the alternative permitting pathway through the California Energy Commission (CEC) which circumvents local permitting processes and allows direct permitting through the CEC. Staff participated in three preapplication meetings with the applicant conducted by the CEC during the summer and concluding in late September.
The CEC has requested County staff review and provide comments on NextEra’s “Opt-In” application in order to help determine its completeness, compliance with local ordinances, codes, regulations and standards. The application was submitted on November 4, 2024 and consists of over 2,500 pages and the CEC has requested comments within 30 days. Included in the application is a discussion of NextEra’s community benefits proposal and how the proposed projects may align with local needs and priorities. On October 24, 2024 representatives from NextEra met with County staff to describe intended components of their Community Benefits Plan outline. During this meeting various concepts were discussed.
FINANCIAL IMPACT:
Under Public Resources Code §25538, the County may request reimbursement from the California Energy Commission for the cost of the requested review of NextEra’s application. The cost for preparation of this staff report is nominal and included in the Department of Resource Management’s FY2024/25 Working Budget.
DISCUSSION:
The proposed project is a conditionally permitted use on A-40 zoned land with a use permit as a Utility Facility or Infrastructure Outside of a Right of Way use. The County’s current zoning regulations do not contain criteria specifically for BESS facilities, so the general criteria used for other types of use permits would be applied, such as determining the use would not be detrimental to the surrounding area, in evaluating any proposed project. However, at this time there is a moratorium in place which currently excludes the option of a conditional use permit.
At the December 5, 2023 Solano County Board of Supervisors meeting, issues related to commercial BESS projects were raised by the public and Board members, resulting in staff receiving general direction from the Board to return with a proposed urgency ordinance placing a temporary moratorium on the approval of such facilities in unincorporated Solano County. At its January 23, 2024 meeting the Board adopted an urgency ordinance establishing a moratorium through January 23, 2026.
If the CEC approves a project, the “opt-in” certification would be in lieu of any permits required by the County. The CEC’s process intends to streamline review, by requiring environmental review under CEQA be completed within 270 days after the application is deemed complete, subject to certain limited extensions. The legislation does require that any “opt-in” application be forwarded to the County for review and comment.
As required by State law, NextEra’s application included a “plan or strategy, including a timeline for execution, to obtain legally binding and enforceable agreements(s) with, or that benefit, a coalition of one or more community-based organizations prior to project certification”. In response to NextEra’s application and in anticipation of the forthcoming BESS ordinance, the County may provide input on any proposed community benefit agreement to ensure they address local needs and priorities.
In general, there are two types of benefit agreements that renewable energy developers can enter into during the permitting process to strengthen community support for their project. AB 205 requires a Community Benefits Agreement; however, a Host Community Agreement, if agreed to by the developer, could meet this Community Benefits Agreement requirement.
Host Community Agreements (HCAs): Agreements between a developer and the host jurisdiction. HCAs aim to mitigate impacts and provide compensation or benefits to offset any adverse effects on the host jurisdiction. These are not a required component of AB 205 application process but could be requested of NextEra.
Community Benefits Agreements (CBAs): Agreements between developers and Community-Based Organizations (CBOs). These agreements set forth the benefits the developer will offer the community in return for the community’s support of the project. CBAs are legally binding and enforceable in court. The State AB 205 process requires the applicant submit at least one signed agreement before permit issuance. State law provides that the benefits agreement may be with any organization that represents community interests and may include local governmental entities.
Staff is seeking direction from the Board on how to respond to NextEra’s submitted Community Benefits Plan outline, whether the County would like to request a Host Community Agreement, and on any preferred projects to include in such a request as part of its comment letter submission to the CEC.
During the October 24, 2024 meeting with County staff, NextEra identified the following community groups with which it had held discussions: Solano Community College, the Solano Economic Development Corporation, the Travis Community Consortium, the Vacaville Veterans Hall, and the Solano Land Trust. The NextEra application included an outline of a Community Benefits Plan which included the following potential commitments:
1. Solano Community College Partnership
• Proposed contribution: $200,000
• Timeframe: One-time contribution planned for Q1 2025
• Focus: Funding internships, scholarships, and equipment donations
• Goals: Support education in renewable energy sectors and the fire academy program
2. Vacaville Veterans Assistance Programs
• Proposed contribution: $10,000
• Timeframe: One-time contribution planned for Q1 2025
• Focus: Supporting local veterans' initiatives
3. Travis Fisher House Foundation
• Proposed contribution: Up to $200,000
• Timeframe: One-time contribution planned for Q1 2025
• Focus: Supporting communities around Travis Air Force Base
4. City/County Initiatives
• Proposed contribution: $100,000
• Timeframe: One-time contribution planned for Q1 2025
• Focus: To be determined
Attachment A contains a list of staff recommended projects and efforts for inclusion in a potential benefits agreement.
ALTERNATIVES:
1. The Board could choose not to provide direction on the type of preferred benefits agreement. This is not recommended as a Host Community Agreement could address several public health and safety risks by funding upgrades to systems, like a consolidated countywide dispatch system and control center as well as specialized fire suppression apparatus.
2. The Board could choose not to provide direction on the developer’s Community Benefits Outline or County-preferred community benefits. This is not recommended because the CEC is seeking County input on NextEra’s proposed Community Benefits Plan.
OTHER AGENCY INVOLVEMENT:
Staff worked with the California Energy Commission and participated in a meeting including the California Department of Toxic Substances Control, California Department of Fish and Wildlife, California Regional Water Control Boards and the City of Vacaville.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION