Project: Seahawk Energy Storage
Application No.: 241473
APN: 051-101-77
Applicant: Sequoia Energy Storage 1, LLC
Project Planner: Evan.Ditmars@santacruzcountyca.gov
Status:
Public Meetings
No public meetings are currently scheduled for this project.
Past public meetings: None
At least three public hearings are required for consideration; review of the project’s consistency with agricultural protection policies by the Agricultural Policy Advisory Commission (APAC) is required to move the project to the Planning Commission, who will consider the project and provide a recommendation to the Board of Supervisors. The required CEQA review process, which will be conducted prior to considering the project at public hearing, also prescribes a public review and comment period. Public participation is welcomed at all phases of this project.
Minto Road Project, Application 241473
On December 17, 2024, “Sequoia Energy Storage 1, LLC” submitted an application (#241473) to develop an 800-megawatt hour (MWh) utility-scale battery energy storage BESS facility at 90 Minto Road in the unincorporated area of Watsonville in Santa Cruz County. The preliminary project proposal includes about three hundred lithium iron phosphate (LFP) battery units staggered pairs across a 14-acre site. Batteries are contained within a shipping container-style structure, include independent fire protection systems, and adjacent module pairs are physically separated to avoid fire spread.
Following staff review of the submitted materials, the project was determined to be “incomplete,” requiring clarification, revision, or supplementation of application materials. Furthermore, upon application completion, both the proposed project and the developing energy storage ordinance require evaluation for compliance with CEQA; the preliminary staff determination indicates that an Environmental Impact Report (EIR) document is likely to be required. The applicant has hired a consultant to begin preparation of an initial study, which will provide a deeper understanding of the impacts of the project and will identify focus areas for further environmental review, as required. It is anticipated that both the ordinance and project application would be evaluated by the EIR document.
Background
Utility-scale battery energy storage (BESS) is a rapidly evolving technology, but the local regulatory framework for evaluating these projects remains underdeveloped. On August 13, 2024, the Board of Supervisors directed Community Development and Infrastructure Department staff to begin development of an ordinance regulating the siting of battery energy storage projects in unincorporated Santa Cruz County.
Currently, smaller scale energy facilities (“microgrids”) which serve a small geographic area such as a college campus, hospital, or business center, are conditionally permitted (requiring a conditional use permit, public hearing, and environmental review under the California Environmental Quality Act [CEQA]) in most zone districts. County Code does not define the permitting requirements to develop projects where power may be distributed locally, regionally, or beyond for the larger transmission grid (“utility-scale”). As there has been an uptick in interest for this type of project in recent years to support clean energy goals, improve resiliency, and reduce power outages, consideration of how, where, and under what circumstances these projects should occur has been determined to be necessary.
The need for proactive regulation is heightened by recently enacted State legislation, such as AB205, which allows the California Energy Commission to override local regulations with findings of public convenience and necessity. Adopting a local ordinance ensures that projects submitted under AB205 either comply with locally developed, site-specific requirements or require findings of overriding public convenience and necessity if non-compliant. Without a regulatory framework, community involvement in the development of these types of projects becomes diminished.
Ordinance Development
As directed by the Board of Supervisors, the Community Development and Infrastructure Department is currently developing an ordinance to allow and regulate BESS facilities on parcels greater than 10 acres that are adjacent to existing transmission substations. The County Zoning Code and Zoning Map would be amended to allow and regulate these facilities within an “Energy Storage Combining District.” Impacts under the proposed Ordinance must be analyzed under CEQA prior to adoption. The draft ordinance would require written approval from the local Fire agency before approval of the project.
Additional Resources
- The applicant has developed a website for additional project information, available here:
- Information from the County of Monterey about the Moss Landing Battery Fire is available here.