Quick Take
New Leaf Energy, the developer behind a proposed battery storage facility near Watsonville, confirmed to Lookout that it is officially exploring a path to approval from the California Energy Commission as opposed to seeking approval from Santa Cruz County.
The developer behind a proposed battery storage facility near Watsonville is now exploring a path to approval from the state’s energy commission.
Massachusetts-based developers New Leaf Energy confirmed to Lookout that it has submitted a pre-application to the California Energy Commission to explore the idea of opting in for approval at the state level for its proposed project on 90 Minto Rd., just outside of Watsonville, as opposed to seeking approval from Santa Cruz County.
The pre-application process is meant to better understand the approval process and requirements at the state level, said Max Christian, a senior developer for New Leaf Energy, via email. He added that the decision to submit a pre-application followed “a careful analysis” of changes made to the county’s battery storage ordinance in January by the board of supervisors.
A pre-application does not mean New Leaf is committed to the state route, said Christian, and added that full commitment would be indicated by submitting a full application to the state energy commission.
“New Leaf Energy will continue to evaluate both local and state paths for the best opportunity to stay on schedule to secure an approved permit in early 2027,” he said.
County officials said they are disappointed in New Leaf’s decision to explore the state option, while acknowledging that state approval has always been available to the developer.
“Going through the state process has always been an option for the applicant, and while we are disappointed, we hope to see some of those standards carried forward as the project proceeds,” said county spokesperson Jason Hoppin. “We also remain open to a local process should the applicant choose to do so.”
Hoppin added that the county ordinance’s framework includes the strictest local fire, emergency response and environmental protection standards for proposed battery storage projects anywhere.
County elected officials voted earlier this year to send new battery storage rules to environmental review, in an effort to maintain local control over any potential projects, including New Leaf’s, that might be proposed at the county level.
Christian added that some of the amendments made to the ordinance at the Jan. 13 meeting raised “serious concerns about the project’s ability to meet the newly introduced requirements.”
New Leaf took issue with one of the new rules that requires additional approval from the board of supervisors if there is a change in ownership of the facility. The requirement would create a “significant hurdle to project financing,” and is also unprecedented in the energy industry, according to Christian.
The company is also concerned about two other requirements regarding the preservation of agricultural land, as the project site will use a portion of an apple orchard.
New Leaf added that the county’s decision to add the changes without considering their potential impacts to the project is why it felt compelled to keep the state approval route open.
In the past, Christian told Lookout that New Leaf is committed to going through the local permitting process, despite the fact that the company could bypass local laws by seeking approval for the project directly from the state energy commission.
New Leaf submitted its project application in December 2024, weeks before a massive fire at a battery storage facility in Moss Landing that intensified community concern over these types of facilities. The developer have previously told community members and local elected officials that its project will be much safer and use different batteries than were stored at the Moss Landing facility.
Have something to say? Lookout welcomes letters to the editor, within our policies, from readers. Guidelines here.
