Quick Take
Santa Cruz County officials published an updated version of proposed regulations for battery storage facilities ahead of a second hearing on the proposed rules on Tuesday.
Ahead of a second hearing next week, Santa Cruz County staff shared the latest version of proposed regulations for battery storage facilities, which would require ongoing soil and water monitoring, emergency access and potential chemical runoff.
The updated draft, now available on the county’s informational website, includes recommendations made by county supervisors, who cited environmental and safety concerns in November when they unanimously agreed to delay any decision on the battery storage ordinance.
If approved by the board at a second hearing next Tuesday, Jan. 13, the ordinance would undergo a county environmental review, which is expected to be completed by the end of summer, according to a staff report. Then the regulations would come back to the supervisors and the county’s planning and environmental commissions for further review before a vote to adopt them, which staff expect will happen no later than November.
The ordinance was first introduced to elected officials months before last January’s fire at a battery storage facility in Moss Landing, not far south of the Santa Cruz-Monterey county line, and also before Massachusetts-based developer New Leaf Energy submitted an application to build a battery storage facility on Minto Road outside Watsonville. Since then, the set of rules has undergone changes, tightening rules for any battery storage facility in Santa Cruz County.
The new draft ordinance requires developers to use the safest and latest technology available commercially — a recommendation proposed by Supervisor Felipe Hernandez, whose District 4 is where New Leaf is proposing to build its battery storage facility. Applicants are “strongly encouraged to select technologies with no or low thermal runaway risk,” it reads. County staff also require a third-party written evaluation of the technology proposed and its fire risk.
Following the fire in Moss Landing, in which lithium-based batteries ignited, community members pushed for any proposed facility in the county to use safer alternatives, such as sodium-based batteries, to help mitigate fire risk.
Under the proposed regulations, developers would have to provide a chemical runoff and containment plan in the event that the emergency response leads to water, fire retardant or other materials flowing beyond the facility. Developers would also have to submit plans to continuously monitor air, water and soil quality.
County staff also added a recommendation suggested by Supervisor Monica Martinez: requiring developers to provide proof of fire insurance to pay for damage in case of a fire, including reimbursement or compensation to any individuals injured by a fire. Developers would also have to pay for upgrades to roads and drainage systems around a new facility and hire union labor to build the facility.
While supervisors are pushing for strong safety regulations, they also face pressure from New Leaf Energy to move forward with environmental review.
Max Christian, project lead for New Leaf Energy, told Lookout via email that the company appreciates the work county staff have done to update the ordinance, and is still reviewing the changes. He said that the company is supportive of insurance requirements that align with industry standards, adding that liability insurance are typical requirements for battery storage facilities in California.
The company looks forward to Tuesday’s meeting and is hopeful that supervisors will vote to move forward with environmental review, Christian said.
“New Leaf supports a strong ordinance in Santa Cruz County that matches recent state actions and best practices that have been developed since the Moss Landing fire and are reflected in [California Public Utilities Commission] updates, [state] Sen. [John] Laird’s legislation and updates to state fire codes,” Christian said.
County supervisors delayed the battery storage discussion three times since a draft ordinance was first introduced in 2024. First, county officials said they wanted to review environmental tests after the Moss Landing fire. Then, they waited on statewide battery storage safety regulations authored by state Sen. John Laird to pass the state Legislature and become law.
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