Quick Take
The Santa Cruz County Board of Supervisors voted unanimously Tuesday to shelve a local ordinance regulating battery storage systems following a decision by the developer of a project proposed for outside Watsonville to seek approval through the state.
After working nearly two years to develop an ordinance to regulate battery storage systems in Santa Cruz County, the board of supervisors is now shelving the set of local rules despite pushback from community members.
The unanimous decision by the five-member board on Tuesday follows a move by Massachusetts-based developer New Leaf Energy to withdraw its application for a proposed battery storage facility with the county, and instead seek state approval through the California Energy Commission.
The county will now recommend that the state energy commission consider a draft ordinance when evaluating the proposed project at 90 Minto Rd. outside Watsonville.
“Two years’ worth of work with several departments in addressing the board’s concerns and the community’s concerns went into that draft ordinance,” Stephanie Hansen, assistant director of community development and infrastructure for the county, told supervisors.
The draft ordinance provides a “great blueprint” for the energy commission on what the county believes is important in the development of a battery storage facility, Hansen said.
Earlier this year, the board approved moving forward with an environmental review of the draft ordinance that would have started in the summer, along with further review from various county commissions. The ordinance itself was expected to be adopted by November under the county’s previous timeline.
The environmental review would have analyzed both the long-term impacts of the ordinance and the New Leaf project, according to Hansen. While the county would have jurisdiction over who would conduct the review, New Leaf would have footed the bill.
But now, with New Leaf seeking approval from the state, conducting an environmental review would be costly for the county, which is already facing financial challenges, according to a county staff report. Staff previously told Lookout that the environmental review could cost roughly $500,000.
Hansen said it’s not advisable to adopt an ordinance like this one without an environmental analysis.
New Leaf Energy submitted an application with Santa Cruz County in December 2024 to build a $200 million battery storage facility. That occurred just weeks before a massive blaze at a battery facility in nearby Moss Landing.
The Minto Road project aims to reduce the number of power outages in the area and support the local power grid with renewable energy, according to Max Christian, a senior developer with New Leaf.
Under the state energy commission’s opt-in certification process, developers are able to bypass the local process due to a 2022 law establishing the commission’s authority to approve renewable energy projects. The law was passed to help the state reach its goal of having 100% of its electricity grid supply come from renewable sources by 2045.
New Leaf submitted its full application to the state energy commission on June 8. Residents are welcome to submit public comments on the commission’s website throughout the process.
While there is no guarantee that the state energy commission will use Santa Cruz County’s draft ordinance in making its decision on the Minto Road project, Hansen said the commission wants to hear from the community and county about what their concerns are.
The county will also ask that the state consider a few requirements suggested by District 3 Supervisor Justin Cummings regarding the preservation of agricultural land, as the proposed project site would use a portion of an apple orchard, and if there is a potential change in ownership of the facility.
Days before the board of supervisors discussed the draft ordinance, Drew Bohan, executive director of the state energy commission, visited the project site outside Watsonville and spoke with concerned South County residents who gathered at Pinto Lake City Park.
Bohan traveled from the Sacramento area on Sunday to get a closer look at the neighborhood in which New Leaf’s project is proposed and learn a bit about residents’ concerns.
District 4 County Supervisor-elect Tony Nuñez, who attended the community meeting, told Lookout that he was “delightfully surprised” that Bohan wanted to see the site, meet with residents and take questions about the project and the commission’s “opt-in” process.
“I’ve learned more about [the project] in the last two hours than I’ve known about this project at all,” Bohan told community members. “We’re just at the very, very early stages of it. But we will become experts on this project.”
Bohan took the time to explain the state energy commission’s “opt-in” process, including a rough timeline. Currently, the commission is reviewing New Leaf’s application to determine its completeness, and will publish a letter with the outcome after a 30-day review, he said.
If the commission determines that the application is incomplete, it will work with New Leaf to gather more information, which could take another 10 months, Bohan said.
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, said Bohan.
Residents also grilled Bohan about the process and shared their concerns about the project, including emergency response to potential fires and the proximity of the proposed facility to homes.
“We want to make sure that the public is engaged,” Bohan said. “Our job is to be transparent and provide the information we learn to the public and invite comments.”
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