California Energy Commission Fast-Track Approval Request

California-based battery energy storage system (BESS) developer New Leaf Energy has withdrawn its application for local permits in Santa Cruz County and is instead seeking fast-track approval directly from the California Energy Commission (CEC). New Leaf Energy had applied to Santa Cruz County in late 2024 for permits for a BESS facility valued at approximately $200 million.

The project, known as the "90 Minto Road Energy Storage System," was designed to store renewable energy and distribute it during peak demand periods to enhance grid reliability and reduce power outages in the area. The company withdrew its county application and submitted a new application to the CEC in early June, using the Opt-in Certification Program to pursue state certification that supersedes local land-use authority.

A state law enacted in 2022 allows battery storage facilities larger than 200 MWh to fall under the CEC's jurisdiction, enabling developers to bypass local permitting processes and apply directly for state approval. The commission considers community comments during its evaluation of projects, but the ultimate approval authority rests with state rather than local authorities.

This has drawn opposition from some quarters, which prefer that local governments have more control over land-use decisions. The CEC has so far approved two solar+storage projects and one standalone BESS project through the Opt-in Certification Program, with the most recent approval being for a 400 MW/3,200 MWh BESS project called Potentia-Viridi.

Santa Cruz County had been preparing to conduct a comprehensive environmental analysis for the proposed BESS project and local ordinance. However, with the developer's decision to apply for state approval, the cost of this analysis will now fall to the county government. County officials warned that proceeding with the ordinance without the environmental analysis would be both legally and politically problematic.

County officials said the draft ordinance will be presented to state regulators as a reference document that reflects local priorities and concerns. The proposed BESS facility has raised significant concerns among some residents in Southern California, particularly after a major fire at Vistra Energy's Moss Landing facility in 2025.

Source: Energy Storage News