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October 7, 2025
ITEM TITLE
Conditional Use Permit & Design Review: New Construction and Establishment of a Battery Energy Storage System (BESS) Facility
Report Number: 25-0223
Location: 3497 Main Street
Department: Development Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The Project qualifies for Class 3 and Class 32 categorical exemptions pursuant to Sections 15303 (New Construction or Conversion of Small Structures) and 15332 (In -fill Development Projects) of the California Environmental Quality Act (“CEQA”) Guidelines.
Recommended Action
Conduct a public hearing and adopt a resolution approving Conditional Use Permit No. CUP24 -0024 and Design Review No. DR24-0016 allowing for the establishment and construction of a battery energy storage system (“BESS”) facility, based on the required findings and subject to conditions contained in the City Council resolution.
SUMMARY
Chula Vista Energy Center 2, LLC (“Applicant”) proposes to establish and construct a 50 -megawatt BESS facility (“Project”) on a portion of a 3.82 -acre parcel already developed with an existing power generation facility in the Limited Industrial – Precise Plan zone (Attachment 1). The property is owned by 3489 Main Street Holdings, LLC (“Property Owner”) and is located in a substantially developed industrial/commercial area. Because the Project will seek to supplement the local power grid, the use has been classified as public or quasi -public and therefore, a Conditional Use Permit is required in addition to Design Review. Both discretionary actions are subject to the review and approval of the City Council after recommendation from the Planning Commission pursuant to Chula Vista Municipal Code (“CVMC”) Sections 19.14.050 (Consolidation of public hearings for multiple permit applications), 19.44.040(O) (Conditional uses), and
19.54.020(M) (Unclassified uses, Designated – Limitations and standards).
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ENVIRONMENTAL REVIEW
The Director of Development Services has determined that the Project qualifies for Class 32 and Class 3 categorical exemptions pursuant to Sections 15332 (In-fill Development Projects) and 15303 (New Construction or Conversion of Small Structures) of the CEQA Guidelines. The Project qualifies for the Class 32 Infill Exemption because the Project would affect less than five (5) acres —approximately 1.9 acres of a
3.82-acre parcel—that is partially developed and substantially surrounded by urban uses, including a meat distribution company, a printing company, metalworking, recycling and vehicle towing operations, and several distribution facilities; the Project is consistent with the General Plan’s policies and designation for the Project site (Limited Industrial and Open Space) as it is located entirely within the Limited Industrial designated portion of the site, as well as the Project site’s zoning designatio n (Limited Industrial) and applicable development regulations; the Project site has no value as habitat for endangered, rare, or threatened species; and approval of the Project will not result in significant effects relating to traffic, noise, air quality, or water quality, all as documented in the attached analyses. The site will be adequately served by utilities and public services —there are no ant icipated impacts to electrical, water, or sewer supply, nor police, school, fire, or other services. Additionally, the Project is located in an urbanized area and includes fewer than four commercial buildings not exceeding 10,000 square -feet. Additionally, the Project qualifies for a Class 3 Construction or Conversion of Small Structures Exemption because it consists of the construction of small equipment and facilities on a site already used for electrical power generation. No further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On September 24, 2025, Planning Commission recommended approval of the project to the City Council by a vote of 7 -0 (Attachment 2) . Commissioner comments and questions centered around whether the BESS facility represented a safety hazard to the community and whether the Chula Vista Fire Department (“CVFD”) was confident in its ability to address any incidents should they arise at the site . Representatives of the Applicant and the CVFD in attendance were able to detail the safety features of the BESS facility. The Applicant and CVFD adequately addressed and answered the Commissioners’ questions and concerns related to the chemical compounds used within the batteries, the monitoring and detection systems installed in all battery containers and around the site, as well as the training and preparation the CVFD will engage in to best prepare for any future incidents at the facility . Attendees at the meeting were all in support of the proposed Project.
DISCUSSION
Project Description
A BESS is a facility that stores electricity in large batteries so the power can be used later in times of need, thus helping to improve power grid reliability and support renewable energy efforts. The Project will consist of lithium-ion batteries housed in fully enclosed, reach-in, temperature-controlled containers. It will connect to the San Diego Gas and Electric (“SDG&E”) Otay 69 -kilovolt substation located approximately 1,300 feet north of the subject property using an existing transmission line. The batteries will charge during periods of high supply and low demand, discharging back to the grid during periods of low supply and high demand.
Electricity will also be discharged to the local grid during other grid events, as needed. A grid event occurs when the electrical grid experiences significant stress due to supply -demand imbalances, requiring P a g e | 3
intervention to maintain the stability and reliability of the system. The Project will operate 24 hours a day, seven days a week , with no employees on site. However, routine maintenance will be conducted on site during normal business hours. The facility will be remotely monitored and operated at all times under the direction of the California Independent System Operator (“CAISO”).
The Project will be developed in two phases, with an ultimate electrical generation capacity of 50 megawatts.
Phase one will include the installation of 56 purpose-built containers designed to house lithium-ion batteries, generators, a step -up transformer, and various other equipment on the northern portion of the property (Attachment 3). Phase two will occur over multiple years and will include the addition of supplementary cabinets and containers to compensate for the natural reduction in storage capacity of the existing batteries over time, not to exceed 50 megawatts. Two parking spaces will be provided to accommodate maintenance vehicles. The site will be secured by an existing 10-foot galvanized chain link fence and screened from view by existing tree s and shrubs located along each property line. In addition, a remotely monitored security system will be installed to enhance the protection of the site.
Project Site Characteristics
The subject property is an approximately 3.82 -acre interior lot located on the south side of Main Street, between Del Monte Avenue and Reed Court. The Project site is located over 750 feet from the Main Street right-of-way and is accessible via a private access road adjacent to the eastern property line. The nearest residential property is located more than 360 feet west of the Project site. The property is bordered by the Otay Valley Regional Park (“OVRP”) on the south end of the property. The existing power generation facility, built in 2000, provides a 300-foot separation between the new construction of the Project’s battery storage containers and the OVRP.
The site has a zoning designation of ILP (Limited Industrial – Precise Plan) and General Plan designations of IL (Limited Industrial) and OS (Open Space). The Project is proposed within the IL portion of the site. The subject property is located within a High Fire Hazard Severity Zone and Flood Plain Zone AE, the latter of which affects only the southern portion of the site. The table below identifies the zoning and General Plan land use designations of the Project site and the surrounding properties.
Land Use Designations and Existing Land Uses
General Plan Zoning Existing Land Use
Project Site Limited Industrial,
Open Space
Limited Industrial –
Precise Plan
Electrical substation
North Limited Industrial Limited Industrial –
Precise Plan
Towing yard
East Limited Industrial Limited Industrial –
Precise Plan
Industrial businesses
South (City of
San Diego)
Residential, Park,
Open Space, and
Recreation
Agricultural –
Residential, Open
Space
Otay Valley Regional Park
West Limited Industrial,
Open Space, Open
Space Preserve
Limited Industrial –
Precise Plan
Meat processing plant
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Compliance with Development Regulations
The ILP zone permits public and quasi -public uses pursuant to CVMC Chapter 19.54. The Project was thoroughly reviewed and evaluated by several divisions within the Development Services Department as well as the C VFD and the Engineering & Capital Projects D epartment. Conditions placed on the Project require compliance with California Title 24 (Building Standards) and City of Chula Vista Fire Ordinances and Construction Standards and Details. It must also maintain compliance with the brush management requirements/standards of the High Fire Hazard Severity Zones as established by the California Department of Forestry and Fire Protection (CAL Fire). The Applicant and the Project are required to comply with all local, state, and federal regulations, including but not limited to 49 C.F.R. § 173.185 of the International Fire Code. The Project will also be required to have a third -party Fire Protection Engineer (FPE), specializing in fire and life safety, review, certify, and stamp all plans and reports to ensure com pliance with applicable federal, state, and local regulations.
Given the unique nature of the Project as well as its proximity to the OVRP, the City required the Applicant to provide technical reports analyzing several issues related to the environment. Specifically, the Project was evaluated for issues related to air quality, greenhouse gas emissions, hazards analysis, and noise impacts.
The Project’s technical analyses were reviewed by Staff and evaluated through a third -party peer review process. All issues were adequately addressed by the Project team and their analyses.
The Project will conform to the Chula Vista Design Manual as it will be screened from public view along the right-of-way and from adjacent properties through the use of existing landscap ing and a 10 -foot-tall, galvanized fence. The existing power generating facility does not have an architectural style, and the proposed BESS structures are utilitarian in nature. However, the structures will be constructed using a high- quality steel material and painted white to ensure a clean and visually cohesive appearance.
The table below identifies the Project’s compliance with other ILP development regulations:
ILP Development Regulations
Requirement
Lot Coverage: 50 percent (maximum)
Height: 45 feet (maximum)
Number of Stories: 3 and one-half stories
(maximum)
Setbacks (minimum):
Front: 20 feet
Rear: 0 feet
Exterior Side: 15 feet
Interior Side: 0 feet
Proposed
Lot Coverage: 17.9 percent
Height:
Generator Step-up Transformer: 22.66 feet
BESS Containers: 9.08 feet
Number of Stories: N/A
Setbacks:
Front: 22.5 feet
Rear: 301.67 feet
Exterior Side: N/A
Interior Side:
West: 29.5 feet
East: 27.75 feet
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DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under Californ ia Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware nor have been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are no current or ongoing fiscal impacts to the General Fund or the Development Services Fund resulting from this action. All costs incurred processing this application are borne by the Applicant.
ONGOING FISCAL IMPACT
There are no current or ongoing fiscal impacts to the General Fund or the Development Services Fund resulting from this action. All costs incurred processing this application are borne by the Applicant.
ATTACHMENTS
1. Location Map
2. Planning Commission Resolution No. 2025-07
3. Project Plans
4. Air Quality and GHG Analysis
5. Biological Resources Report
6. Hazards Analysis
7. Noise Analysis
8. Phase I Environmental Site Assessment
9. Phase I ESA Addendum
10. Site Photos
11. Disclosure Statement
Staff Contact: Valeria Tarka, Associate Planner
Desmond Corley, AICP, Principal Planner
D. Todd Philips, Ed.D., Planning Manager/Zoning Administrator