Quick Take
The California Energy Commission has determined that New Leaf Energy’s application for its proposed battery storage project in Watsonville is incomplete, and needs further information from the company.
The California Energy Commission has determined that an application from Massachusetts-based developer New Leaf Energy for its proposed battery storage facility located in Watsonville is incomplete following a 30-day review.
The state energy commission finished its initial review of New Leaf’s application on July 8. It determined that the developers need additional information for more than a dozen data reports, including an assessment of potential habitat impacts if the facility experiences a fire and additional details on water supply and stormwater control measures.
The state commission is also asking New Leaf to provide additional information on proposed fire prevention protocols, emergency response times and fire suppression systems and other elements that “verify the proposed project features are adequate to mitigate adverse impacts to operations personnel, emergency first responders and the public.”
Drew Bohan, executive director of the state energy commission, told South County residents in late June while visiting the project site on Minto Road that if the commission determines New Leaf’s application incomplete, his staff will work with developers to gather the missing information. Bohan added the process could take another 10 months.
Once that process is complete, the state commission will prepare its own environmental impact report on the project and will have 270 days to make a decision. The commission engages in conversations with local governments throughout the approval process.
There will be at least two public hearings in Santa Cruz County — most likely in the Watsonville community — before the commission takes a final vote in Sacramento, according to Bohan.
New Leaf originally submitted an application with Santa Cruz County in December 2024 to build a $200 million battery storage facility. However, following a massive fire at a battery facility in nearby Moss Landing, just a few weeks after in early 2025, residents have grown skeptical and cautious about these types of plants.
For over a year and half, South County residents have formed several grassroots organizations with the goal of ensuring New Leaf’s project doesn’t get approved. Community members have also been outspoken about how county officials have handled the issue, especially as the project is located near homes and agricultural land.
Just last week, the Santa Cruz County Board of Supervisors unanimously approved to shelve an ordinance regulating battery storage systems after New Leaf withdrew its application with the county in May, in order to seek approval through the state energy commission.
The county will now recommend that the state energy commission consider the draft ordinance when evaluating the proposed project at 90 Minto Rd. outside Watsonville.
County staff consider the now-shelved ordinance as a “great blueprint” for the energy commission on what the county believes is important in the development of a battery storage facility.
