Conditions of Approval
DP No. 24-09
review and approval.
INTERPRETATION AND ENFORCEMENT
80. The City of Industry Planning Department, the Los Angeles County Building and Safety Department, the City of Industry Public Works Department, and the LACoFD shall be responsible for ensuring compliance with all applicable code requirements and conditions of approval.
81. The Planning Department may interpret the implementation of each condition of approval and, with advanced notice, grant minor amendments to approved plans and/or conditions of approval based on changed circumstances, latest information, and/or relevant factors if the spirit and intent of the approved condition of approval is satisfied. Permits shall not be issued until the proposed minor amendment has been reviewed and approved for conformance with the intent of the approved condition of approval. If the proposed changes are substantial in nature, an amendment to the original entitlement may be required pursuant to the provisions of Industry Municipal Code.
INDEMNIFICATION
82. The Applicant and any of its heirs, successors and assigns, shall defend, indemnify, and hold harmless the City and its elected officials, officers, employees, agents, and volunteers (“City Indemnitees”) from any claim, action or proceedings, liability cost, including attorneys’ fees and costs against the City Indemnitees, caused or alleged to have been caused by reason of the Applicant’s activities in connection with Development Plan No. 24-09. This indemnity provision applies to all damages and claims for damages, as described above, regardless of whether the City prepared, supplied, or approved the plans, specifications, or other documents for Development Plan No. 24-09.
In the event of any legal action challenging the validity, applicability, or interpretation of any provision of this approval, including the environmental review, or any other supporting document relating to Development Plan 24-09, the Applicant and its successors and assigns, shall indemnify, defend and hold harmless the City Indemnitees, and each of them, with respect to all liability, costs and expenses incurred by, and/or awarded against, the City Indemnitees in relation to such action. The City shall have the right to select counsel of its choice.
The City shall promptly notify Applicant of any claim, action or proceeding, and shall cooperate fully in the defense thereof.
END OF CONDITIONS
RESOLUTION NO. CC 2026-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
INDUSTRY, CALIFORNIA, APPROVING CONDITIONAL
USE PERMIT NO. 24-03, TO ALLOW FOR A BATTERY
ENERGY SYSTEM STORAGE FACILITY LOCATED AT
16233, 16207, AND 16253 GALE AVENUE, CALIFORNIA
(ASSESSOR’S PARCEL NUMBERS 8242-016-033, -034, -
044, AND -061), AND MAKING FINDINGS IN SUPPORT
THEREOF
RECITALS
WHEREAS, Marici Project LLC (“Applicant”), filed a complete Application requesting approval of the following entitlements for the properties located at 16207, 16233, and 16253 Gale Avenue, City of Industry, California further described as Assessor’s Parcel Numbers (8242-016-033, -034, -044, and -061) (“Property”):
• Zoning Code Amendment (ZCA No. 24-07) to allow a Battery Energy Storage System (“BESS”) use with a Conditional Use Permit; • Development Plan (DP No. 24-09) to approve the development plan for the BESS;
• Conditional Use Permit (CUP No. 24-03) to allow the proposed BESS use; and
• Community Benefit Agreement (CBA No. 25-01) to grant specified community benefits to the City.
WHEREAS, the Project is located on a 9.2-acre site, and is currently developed with warehouse, manufacturing, and industrial uses totaling 161,781 square feet of building space, and approximately 205,000 square feet of asphalt and concrete surfacing; and
WHEREAS, the Applicant proposes to demolish the existing development, and develop the Project; and
WHEREAS, the Property has a General Plan Land Use designation of Employment and zoning designation of Industrial (APN: 8242-016-033, -034, -044, and - 061); and
WHEREAS, the proposed use and development is a 400-megawatt BESS Facility consisting of lithium-ion batteries installed in racks, inverters, medium-voltage transformers, switchgear, a collector substation, and other associated equipment to interconnect into the Southern California Edison (SCE) Walnut Substation. The
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enclosures will have battery storage racks, with relay and communications systems for automated monitoring and management of the batteries to ensure design performance.
A battery management system will be provided to control the charging/discharging of the batteries, along with temperature monitoring and control of the individual battery cell temperature with an integrated cooling system. Power inverters to convert between AC and DC, along with transformers to step up the voltage, will also be included; and WHEREAS, in accordance with Section 17.36.020 of the City’s Municipal Code (“Code”), a Development Plan Application is required for the construction of the Project; and
WHEREAS, in accordance with the provisions of the California Environmental Quality Act (“CEQA”), (Cal. Pub. Resources Code §§21000 et seq.), an initial study was performed, the result of which was the preparation and circulation of a mitigated negative declaration (“IS/MND”) analyzing the proposed Project and concluding that the approval of the Project does not have a significant effect on the environment because the impacts of the Project could all be mitigated to levels below established CEQA thresholds of significance with the adoption of mitigation measures and enforcement of such measures through a Mitigation Monitoring and Reporting Program (“MMRP”); and
WHEREAS, the Notice of Availability and Notice of Intent to Adopt the IS/MND was published in the San Gabriel Valley Tribune newspaper on December 16, 2025, and the IS/MND was circulated for public and agency review and comment on December 16, 2025, through and including, January 5, 2025. Copies of the IS/MND were made available to the public at the City of Industry City Hall on December 16, 2025, and the IS/MND was distributed to interested parties and agencies; and WHEREAS, on January 27, 2026, the Planning Commission conducted a duly noticed public hearing, and reviewed and carefully considered the information in the IS/MND and MMRP, and all testimony written and oral, and adopted Resolution No. PC 2026-01 recommending that the City Council approve the IS/MND and notice of determination regarding same, adopted Resolution No. PC 2026-02 recommending that the City Council approve Zoning Code Amendment No. 24-07, adopted Resolution No.
PC 2026-03 recommending that the City Council approve Development Plan Application No. 24-09 for the development of the proposed BESS facility, adopted Resolution No. PC 2026-04 recommending that the City Council approve Conditional Use Permit No. 24-03 to allow the proposed BESS facility and recommended that the City Council approve Community Benefit Agreement No. 25-01; and
WHEREAS, notice of the City Council’s public hearing on the Application was published in The San Gabriel Valley Tribune February 2, 2026, was mailed out to property
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CUP No. 24-03
owners within 300 feet of the Project Site, and was posted at the Project Site and at City Hall Council Chambers, Fire Station 118, and the City’s website on February 2, 2026; and WHEREAS, on February 12, 2026, the City Council of the City of Industry conducted a duly noticed public hearing on the Application and considered all testimony written and oral; and
WHEREAS, all legal prerequisites prior to adoption of this Resolution have occurred.
NOW THEREFORE, the City Council of the City of Industry hereby finds, determines, and resolves as follows:
SECTION 1: The City Council finds that all the facts set forth in the Recitals above are true and correct and are incorporated herein by reference.
SECTION 2: All necessary public hearings and opportunities for public testimony and comment have been conducted in compliance with State law and the City’s Code.
SECTION 3: Based upon substantial evidence presented to the City Council during the February 12, 2026, public hearing, including public testimony and written and oral staff reports, and which includes without limitation, CEQA, the CEQA Guidelines, the IS/MND, MMRP and the City’s Code, and any documents provided by the public to the City Council at the February 12, 2026, public hearing, the City Council finds as follows:
(a) The proposed use is compatible with the goals and objectives of the General Plan, and any applicable redevelopment plan.
Per the City of Industry General Plan Land Use Element Table 1, the Employment land use designation is intended to provide for a full range of industrial uses that are acceptable within the community, but whose operations are more intensive and may have nuisance or hazardous characteristics, which for reasons of health, safety, environmental effects, or general welfare, are best segregated from other uses, and uses handling hazardous materials are permitted only with proper safeguards and a conditional use permit.
The proposed use and development are consistent with the General Plan Land Use Goal LU2 and Resource Management Goal RM2.
The Project is consistent with General Plan Policy LU2-6, which states the City should “[s]upport the use of energy-saving designs and equipment in all new development and rehabilitation or reconstruction projects.” The BESS is expected to facilitate the integration of clean, renewable energy sources into the grid. Excess energy generated during off-peak hours can be stored and dispatched during peak demand, reducing the need to generate additional power from fossil fuels.
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The Project addresses Resource Management Goal RM2 which recognizes the City’s responsibility to participate in a regional effort to improve the air quality and reduce greenhouse gas emissions. The Project is consistent with General Plan Policy RM2-2, which states the City should “[s]upport efforts to reduce pollutants to meet State and Federal Clean Air Standards.” The Project is consistent with this policy via its role in transitioning to renewable energy to reduce emissions of pollutants and greenhouse gasses. This transition will help support the SCE grid and the San Gabriel Valley region as a whole which includes the City of Industry and several of its businesses.
(b) The site is adequate in size, shape, topography and location for the proposed use and there will be adequate utilities to accommodate the proposed use.
The site is adequate in size, shape, topography and location for the proposed use and there will be adequate utilities to accommodate the proposed use. The redevelopment and proposed site improvements of the 9.2-acre site are adequate for the proposed equipment plus any additional features needed including onsite fire lanes meeting fire department requirements, setbacks, and landscaping to meet City requirements. The new development complies with the City’s proposed applicable development standards relating to lot size, building height, setbacks, lot coverage, landscaping, and circulation. The site is served by all necessary utilities, including water, sewer, gas, and electric services, which will adequately supply the BESS site. The Project site is appropriate for the Project given that it is adjacent to the Walnut Substation where the need for battery support has been identified.
The interconnection will be directly across the property line into the Walnut Substation so no new infrastructure will be needed on public property. Except for the Project's obtaining and returning electric power to the grid, the proposed use will have lower utility demand than existing conditions. (c) There will be adequate street access, traffic circulation, and parking capacity for the proposed use.
There will be adequate street access, traffic circulation, and parking capacity for the proposed use. Gale Avenue is an existing improved street with pedestrian access from the sidewalk. Gale Avenue is adequate in width and pavement type to carry the traffic generated by the proposed use. Pursuant to Section
17.36.060.K.1.a. of the City’s Code, the required number of parking spaces is based upon the square footage of the building which they are intended to serve and the use to which that building is to be put. The Project proposes a 1,200 square foot office/maintenance building. Per the Code, from 0-25,000 square feet of building area provided, one parking space per 500 square feet of floor area is required. This means the site requires a minimum of three parking stalls. The Applicant is proposing a total of five parking spaces, thereby exceeding, and complying with the City’s parking requirement.
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Also, pursuant to Chapter 17.25.050.N. of the City’s Code, all driveways must be a minimum of twenty-six feet in width. Access to the Project Site is provided from three different 26-foot-wide driveways, two on Gale Avenue and one on Ward Way.
The driveways provide access to the 26-foot-wide internal drive aisle. Aisles serving parking areas must be a minimum twenty-six feet in width. The Project is providing onsite, 26-foot-wide roads meeting fire department requirements and Code requirements while also designed for two-way circulation. The Property will be secured from public entry so only Project vehicles will be onsite. (d) The proposed use is compatible with the surrounding properties and uses; in making this finding, consideration shall be given to the potential for changes in the uses of surrounding properties.
The use is compatible with the other existing land uses within the Industrial zone, an area that is already an active environment with industrial uses. The proposed Project has been designed to minimize impacts on surrounding development.
Therefore, the proposed development respects the public concerns for the aesthetics of development and encourages the orderly and harmonious appearance of structures and property within the City.
The proposed project operations will generate little traffic so will not result in traffic interference with surrounding properties. The rail lines and Walnut Substation to the north and east of the Property are unoccupied infrastructure that would not be adversely affected. The proposed use will be part of the electric grid infrastructure consistent with the current use of the adjacent Walnut Substation. To the south, Gale Avenue and frontage setback requirements provide a 100-foot separation distance from the nearest residential structures, which complies with Building and Fire Codes.
Although industrial and residential uses serve different functions and are not inherently compatible, the City’s land use framework and permitting requirements are specifically designed to manage this separation and ensure safe operation and compatibility. The Project will be designed and constructed to comply with all applicable codes in effect in the City including NFPA Standards, National Electrical Code, and California Fire Code. The Project will be constructed to meet all Los Angeles County Fire Department requirements including gate access, onsite road design, fire hydrants, and other fire safety requirements. A reinforced concrete safety and security wall will be provided around the BESS perimeter. The wall will be designed to withstand a potential fire, pressure wave, and debris projectiles from a potential explosion. A health risk assessment was prepared that shows that even in the unexpected event of a battery container fire, emission would not be expected to pose a significant health risk. NFPA 855 standards are designed specifically to reduce risks for electric energy storage facilities including BESSs.
Enclosures will be equipped with fire prevention, detection, and isolation methods and materials. At a minimum, this would include smoke/fire detection sensors; ground fault detection, alarms, and systems for automatic shutdown of cooling fans
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and opening of electrical contacts in the battery system. Containers will be spaced in accordance with NFPA 855 requirements designed to minimize risk of a fire spreading to adjacent containers. NFPA 855 also will require comprehensive safety planning submittals to LA County Fire including results of bench-scale fire and explosion testing by the manufacturer and hazard mitigation analysis for the specific type of battery used, and an Emergency Response Plan designed to ensure well-planned, prompt, safe, and appropriate response in the event of an emergency. These submittals will be made to the Fire Department prior to issuance of building permits. NFPA 855 additionally mandates initial and annual refresher training for facility staff, and Marici Project, LLC will coordinate with the Fire Department to facilitate site-specific Fire Department staff training. Given the design, safety, and emergency response requirements for BESS systems, worker and emergency responder training requirements, and the absence of public access to the facility, the Project is not expected to have any adverse impact on worker or public health and safety.
(e) The proposed use will not be detrimental to the public health, safety, or general welfare.
The proposed use will not be detrimental to the public health, safety, or general welfare, and will provide a substantial benefit due to its role in contributing toward reducing pollutant and greenhouse gas emissions and climate change. The proposed use will contribute to these benefits by providing additional capacity to store energy generated by intermittent renewable energy sources. The Project will not generate wastewater other than negligible quantities of sanitary wastewater water to be discharged to the sanitary sewer. Emissions into the air from routine operations will be negligible and considering the Project's role in reducing reliance on fossil fuel generated power, can be expected to result in an overall reduction in emissions of pollutants and greenhouse gases. The Property is in an existing urban area in the Industrial zone and will not impact any important habitat or other natural resource important to public health or welfare due to the existing disturbance. Construction and operations will be required to occur within the limits of existing laws and regulations for pollution prevention and safety. Furthermore, the City’s building permit process and LA County Fire Department (LACoFD) permit process ensures that the proposed Project is built in accordance with all City, County, and State standards, thus protecting the public health, safety, and welfare. The potential for catastrophic events (such as a fire, structural failure, or natural hazards) is specifically addressed through the City’s building permit process and the LACoFD permit process. These reviews require compliance with applicable Building Code and Fire Code provisions, which are expressly designed to mitigate risks associated with worst-case and emergency scenarios, including impacts to surrounding uses including the residential uses.
Conditions are included in the conditions of approval, attached hereto as Attachment 1 and incorporated herein by reference, and serve to safeguard and help protect the surrounding area including the residential to the south of the
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Property, which include, without limitation an explosion-hazard early warning detection and notification system and explosion-hazard shielding methods which are set forth in the full in the conditions of approval.
The site layout of the BESS units, in accordance with the Fire Code, will be required to have separation distances between BESS units, enclosures, and groups of BESS units/enclosures, and setback distances from sensitive exposures called out by the Fire Code (e.g., combustibles, hazardous materials), shall be validated by large-scale fire testing or modeling, as specified and approved by LACoFD.
Building and fire safety standards incorporate requirements related to structural integrity, fire resistance, emergency access, and life safety systems. Compliance with these standards reduces the likelihood and severity of catastrophic events and limits the potential for off-site impacts, including effects on adjacent residential properties. Therefore, it has been determined that the Project is not detrimental to the public health, safety, or welfare, and will not have adverse effects upon neighboring properties.
SECTION 4: Based on the foregoing, the City Council approves Conditional Use Permit No. 24-03 subject to the Conditions of Approval, attached hereto as Attachment 1, and incorporated herein by reference, subject to the approval and effective date of Ordinance No. 841.
SECTION 5: The provisions of this Resolution are severable and if any provision, clause, sentence, word, or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words, or parts thereof of the Resolution or their applicability to other persons or circumstances.
SECTION 6: The City Clerk shall certify the adoption of this Resolution and the same shall be in full force and effect, upon the effective date of Ordinance No. 841.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Industry at a regular meeting held on February 12, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Resolution No. CC 2026-04
CUP No. 24-03
Cory C. Moss, Mayor
ATTEST:
Julie Gutierrez-Robles, City Clerk
Resolution No. CC 2026-04
CUP No. 24-03
Attachment 1
Conditions of Approval – CUP 24-03
City of Industry Standard Requirements and Conditions of Approval
CITY OF INDUSTRY
ATTACHMENT 1
Standard Requirements and Conditions of Approval
Application: Conditional Use Permit 24-03
Applicant: Marici Project LLC
Location: 16233,16207, and 16253 Gale Avenue, (APN 8242-016-033, -034, -044, and -061) City of Industry
Proposed Use: A Battery Energy Storage System (BESS) facility and associated site and infrastructure improvements.
__________________________________________________________________ _____
PLANNING DIVISION
Conditional Use Permit Conditions
1. Approval of this Conditional Use Permit (CUP) request shall apply only to the subject project and shall not waive compliance with all sections of the Zoning Ordinance, and all other applicable City Ordinances in effect at the same time as Building Permit Issuance. The approved use is a new for a Battery Energy Storage System Facility, and for no other use.
2. The conditions for the Project shall remain in effect for the life of the subject property and shall run with the land and be binding upon future owners, successors, heirs, and transferees of the current property owner who is represented on the stamped approved plans on file in the Development Services Department. Any substantial changes to the approved plans must be approved by the Director of Development Services and may require approval of the Planning Commission and/or City Council if the Director of Development Services finds that the proposed changes do not substantially conform to approved plans.
3. The Applicant and Property Owner shall file an executed and acknowledged Acceptance of Terms and Conditions of the Conditional Use Permit within 10 days after the approval of said entitlement. The Applicant and Property Owner understand and agree that approval of the Resolution and Conditional Use Permit will be of no force or effect unless such written consent is submitted to the City within the stated 10-day period.
4. Pursuant to Section 17.04.100 of the City’s Code, if the use for which this CUP was granted is discontinued for a period of 180 days or more, such use shall not be re-established, and the matter may be referred to the Planning Commission to initiate the proceedings for the revocation of this CUP.
5. Noncompliance with any Condition of Approval shall constitute a violation of the City’s Code.
Violations may be enforced in accordance with the provisions of Title 17 of the City’s Code,
Conditions of Approval
CUP No. 24-03
and any other applicable ordinance, rule, or law.
6. Current and future property owners, business managers, operators, successors, assigns, etc. shall be responsible for ensuring and complying with all conditions of approval contained herein.
7. The Applicant and/or successor in interest shall comply with all Federal, State, County, and local laws, rules, and ordinances.
8. The Applicant shall operate in accordance with approved plans and specifications on file with the City of Industry Planning Department and shall be in compliance with all conditions of approval of Conditional Use Permit No. CUP-24-03, as approved by the City Council.
9. Development shall adhere to all Mitigation Measures identified in the adopted Mitigation Monitoring and Reporting Program (MMRP), made a part of the Mitigated Negative Declaration (SCH# 2025120872) associated with the project in compliance with the California Environmental Quality Act (CEQA).
10. Prior to the issuance of any permits related to the Project, the Applicant shall enter into a Community Benefit Agreement with the City, and shall comply with all terms and conditions therein.
11. Prior to operation of the use/business approved by the CUP, the Applicant shall contact the Planning Department and schedule a final inspection. The Planning Department will inspect the premises to ensure compliance with all approved conditions of approval and requirements.
12. These conditions of approval shall be posted on-site and acknowledged by all management of the business and the property owner. It shall be the applicant/business owner’s responsibility to provide these records to the City of Industry Planning Department upon request.
13. Upon the one (1) year anniversary of approval of the CUP, staff shall bring back the CUP for review and evaluation by the Planning Commission of the Applicant/Owner’s operation of the facility, which may include the modification of any existing condition of approval and/or the incorporation of any new conditions.
Business Operations
14. All current and future business owners shall have a valid business license to operate the BESS.
15. Expansion of use beyond the scope and nature described in this Conditional Use Permit No. 24-03, which would increase the projected scale of operations, is not permitted except upon application for and approval of modification to this Conditional Use Permit.
Conditions of Approval
CUP No. 24-03
16. Adequate litter receptacles shall be provided both in and outside the building. All litter shall be removed from the exterior areas around the building as required and no less frequently than once each day this business is open.
17. The hours of operation shall be seven days a week 24 hours a day.
18. The applicant shall not block out or tint any of the tenant building windows at any time. All windows should be clear and always remain translucent to the satisfaction of the Planning Department.
19. An alarm system must be installed and always maintained. The business shall provide the LA County Fire Department’s, Sheriff’s Department, and the City with contact information and post an alarm company contact number outside of the business in a conspicuous location.
20. The operator of the business shall be responsible for insuring that a video surveillance system on the premises complies with the following minimum standards: a. Visually records and monitors the parking lot area, all entrance(s), and exit(s). b. The surveillance system and recording device shall be in continuous operation during business hours. c. The videotape, DVD, CD, or hard drive data shall be saved for a period of thirty (30) days and shall be available for review by law enforcement personnel, and/or the City.
21. The parking lot on the premises shall be equipped with lighting of sufficient power to illuminate and make easily discernible the appearance and conduct of all persons on or about the parking lot.
22. Electronic gates should be equipped with a Knox electric switch and an alternative energy back-up system, such as a generator or battery, which would allow operation of the security gate(s) during an electrical power outage. Access through the gates shall be provided for both the Los Angeles County Fire and Sheriff Departments. The location of Knox boxes shall be shown on the building plans and approved by both the Los Angeles County Fire Department and the Los Angeles County Sheriff Department
23. Decommissioning Plan. Prior to Certificate of Occupancy, the applicant shall submit a Decommissioning Plan which shall be reviewed and approved by the City and the Los Angeles County Fire Department, and other agencies as may be required. The Decommissioning Plan shall include all of the following:
i. A narrative description of the activities to be accomplished, including who will perform that activity and at what point in time following the closure of the facility, for complete physical removal of all battery energy storage system components, structures, equipment, security barriers, and transmission lines from the site; ii. Disposing of all solid and hazardous waste in accordance with local, state, and federal waste disposal regulations;
iii. The anticipated life of the battery energy storage system; iv. The manner in which the battery energy storage system will be decommissioned, and
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CUP No. 24-03
the site restored to a condition reasonably similar to its original state, including a description of how any changes to the surrounding areas and other systems adjacent to the battery energy storage system, such as, but not limited to, structural elements, building penetrations, means of egress, and required fire detection suppression systems, will be protected during decommissioning and confirmed as being acceptable after the system is removed; and
v. A listing of any contingencies for removing an intact operational battery energy storage system from service, and for removing a battery energy storage system from service that has been damaged by a fire or other event.
Fire Department Requirements
24. Before any permit is issued, besides those allowed by the building department to be at risk, the applicant shall submit and obtain approval from the Los Angeles County Fire Department (LACoFD) of all facility and equipment plans subject to LACoFD authority. These plans shall include but not be limited to any necessary requests for variance(s) from the default prescriptive requirements of the Los Angeles County Fire Code [i.e., requests to “use an alternate material, assembly of materials, equipment, method of construction, method of installation of equipment or means of protection” from that which is prescribed by the codes and standards to be the default requirement. Said approvals from the LACoFD shall be obtained from the LACoFD, specifically the Engineering Section of the fire Prevention Division, and bear the signature of the LACoFD Fire Marshal
25. An Explosion-Hazard Early Warning Detection and Notification shall be required. Where the chemistry or design of the ESS, or battery ESS (BESS, or electrochemical ESS), is capable, during normal or failure modes, of creating an explosive atmosphere of consequence within the airspace of its battery compartment, room, or other enclosure (whether a full-volume or partial-volume explosive atmosphere)
a. Early warning detection and notification via a fire-alarm system compliant with the Los Angeles County Fire Code and the NFPA-72 standard shall be designed with detection inside each battery compartment to effectively provide advanced warning of any accumulation towards an explosive limit of flammable/explosive gases, in accordance with the Los Angeles County Fire Code.
b. These detection devices shall be addressable.
c. Automatic notification serving potential impact areas via on-site sets of horns, beacons (red or orange), and signs, shall be provided as determined by LACoFD. d. Automatic notification by the fire-alarm system shall be made to 9-1-1 as determined by LACoFD.
e. On-site identification of the particular enclosure(s) in alarm shall be achieved via hornstrobe notification device(s). f. Gas detection systems, including any that are used to initiate an explosion-control system, shall comply with the requirements of NFPA 72 and be supervised by the fire-alarm system
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CUP No. 24-03
26. An Explosion-Hazard Shielding shall be included requiring that the maximum-potential explosion-hazard consequences, including pressure-wave generation and projectile/shrapnel impact, for a battery-failure gas-accumulation scenario not less-severe than the scenario defined by the LACoFD, shall be established by a qualified third party and subject to approval by the LACoFD.
a. Based on the maximum-potential explosion-hazard results, an explosion-shielding wall that is engineered to provide protection from one such maximum-potential explosion occurrence, for the closest BESS enclosure thereto, for each BESS enclosure to be installed, shall be provided:
i. Around the entire BESS-installation perimeter of the BESS installation(s) or BESS field as a whole, to protect persons outside the facility; and ii. As a shield for four persons operating at each required first-responder/firecommand station for these installations. b. The height of these perimeter walls shall be a minimum height of 10 feet or exceed the height of the BESS enclosures by at least 18 inches, and shall in no case be less than any minimum height requirement set therefor by the jurisdictional planning agency. c. Install a vehicular gate for fire apparatus access within the Project site providing an emergency vehicle access route. The vehicular gate shall provide a minimum unobstructed width of 26 feet or greater to accommodate for the fire apparatus turning radii and maneuvering ability to adjoining fire lanes. This gate shall be identified as Emergency Vehicle Access, meeting the design criteria as any other gates, and remain locked with an approved Fire Department locking device. d. Fire apparatus access road gates through the wall shall be compliant with the Los Angeles County Fire Code, including Section 503 thereof and provide sufficient protection.
27. The site layout of the BESS units, in accordance with the Fire Code, will be required to have separation distances between BESS units, enclosures, and groups of BESS units/enclosures, and setback distances from sensitive exposures called out by the Fire Code (e.g., combustibles, hazardous materials), shall be validated by large-scale fire testing or modeling, as specified and approved by LACoFD.
Code Requirements and Standards
The following is a list of Municipal Code requirements and standards deemed applicable to the proposed project. The list is intended to assist the applicant by identifying requirements that must be satisfied during the various stages of project permitting, implementation, and operation. It should be noted that this list is in addition to any “conditions of approval” adopted by the Planning Commission and noted above. Please note that if the design of your project or site conditions changes, the list may also change. If you have any questions regarding these requirements, please contact the City of Industry.
28. The entire property is subject to inspection by the Los Angeles County Sheriff's Department and/or City representative at any reasonable time without prior notification.
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CUP No. 24-03
29. Off-street parking shall always be provided in accordance with the originally approved site plan and shall be maintained in a clean and attractive manner (trash, litter, or other materials shall be removed regularly).
30. All landscaped areas shall be maintained in accordance with the originally approved landscaping plan, in a healthy and well-kept condition, and kept weed free.
31. All trash containers shall be kept inside a building or in a designated trash enclosure.
32. Emergency fire facilities (hydrants) shall always be kept free and unobstructed.
33. No outside storage of any private property, building materials, or other property not permanently affixed to the real property shall be allowed, unless approved by the Planning Department.
34. No outside display of goods, wares, or merchandise shall be permitted, unless approved by the Planning Department.
35. Any graffiti painted or marked upon the premises or any adjacent area under the control of the permittee shall be removed or painted over within 72 hours of being applied.
36. Adequate lighting will always be provided in the parking areas in accordance with the originally approved site plan.
37. The City must approve all signs, banners, pennants, flags or other outside advertising materials or structures.
38. The applicant is responsible for acquainting all employees with these rules and all local, county, state, or federal laws.
39. Any violation of these conditions or any local, county, state or federal laws may constitute grounds for revocation or suspension of the CUP.
40. All perimeter walls, fencing, and common areas shall be maintained by the Property Owner.
Interpretation and Enforcement
41. The Applicant shall comply with all applicable Code requirements, conditions of approval, laws, rules, and regulations applicable to the development of the project.
42. The Planning Department may interpret the implementation of each condition of approval and, with advanced notice, grant minor amendments to approved plans and/or conditions of approval based on changed circumstances, added information, and/or relevant factors if the spirit and intent of the approved condition of approval is satisfied. Permits shall not be issued until the proposed minor amendment has been reviewed and approved for conformance with the intent of the approved condition of approval. If the proposed changes are substantial in nature, an amendment to the original entitlement may be required pursuant to the provisions of the Industry Municipal Code.
Conditions of Approval
CUP No. 24-03
43. The Planning Department, Engineering Department, and contract agencies (Los Angeles County Fire Department, Los Angeles Department of Building and Safety) shall be responsible for ensuring compliance with all applicable code requirements and conditions of approval.
44. If the Planning Department finds evidence that conditions of approval have not been fulfilled or the use has resulted in a substantial adverse effect on the health and/or general welfare of uses of adjacent or proximate property or have a substantial adverse impact on public facilities or services, the Planning Department may refer CUP No. 24-03 back to the Planning Commission for review. If, upon review of the matter, the Planning Commission finds that any of the results above have occurred, the Planning Commission may modify or revoke CUP No. 24-03.
Indemnification
45. The Applicant and any of its heirs, successors and assigns, shall defend, indemnify, and hold harmless the City and its elected officials, officers, employees, agents, and volunteers (“City Indemnitees”) from any claim, action or proceedings, liability cost, including attorneys’ fees and costs against the City Indemnitees, caused or alleged to have been caused by reason of the Applicant’s activities in connection with CUP No. 24-03. This indemnity provision applies to all damages and claims for damages, as described above, regardless of whether the City prepared, supplied, or approved the plans, specifications, or other documents for CUP No. 24-03.
In the event of any legal action challenging the validity, applicability, or interpretation of any provision of this approval, including the environmental review, or any other supporting document relating to CUP No. 24-03, the Applicant and its successors and assigns, shall indemnify, defend and hold harmless the City Indemnitees, and each of them, with respect to all liability, costs and expenses incurred by, and/or awarded against, the City Indemnitees in relation to such action. The City shall have the right to select counsel of its choice.
The City shall promptly notify Applicant of any claim, action or proceeding, and shall cooperate fully in the defense thereof.
END OF CONDITIONS
COMMUNITY BENEFIT AGREEMENT
This Community Benefit Agreement (“Agreement”) is made and entered into as of __________________________, 2026 (“Effective Date”) by and between the City of Industry, a California municipal corporation (“City”) and Marici Project LLC, a Delaware limited liability company (“Developer”). City and Developer are sometimes referred to as “Party” or collectively as the “Parties” herein.
RECITALS
WHEREAS, Developer holds real property rights to certain property located at 16207, 16233, and 16253 Gale Avenue, City of Industry, California (“Property”), and proposes to construct an approximately 400 Megawatt (“MW”) battery energy storage system (“BESS”) facility on the Property, with an interconnection the Southern California Edison (“SCE”) grid, via property located at 16333 Gale Avenue, City of Industry, California. The construction of the BESS facility along with the interconnection facilities to the point of change of ownership, as further described in the City’s Mitigated Negative Declaration are collectively the “Project”; and WHEREAS, Developer submitted an application for the Project, which includes a zoning code text amendment to permit BESS facilities in the City’s Industrial Zone, a Development Plan application, and a conditional use permit (collectively the “Application”); and WHEREAS, pursuant to Sections 17.16.010.A. and 17.50.050 of the City’s Code, BESS facilities are permitted in the City’s Industrial Zone upon approval of conditional use permit, design review, and a community benefit agreement; and
WHEREAS, in connection with its review and approval of the Project, the City prepared a Mitigated Negative Declaration (“MND”) pursuant to applicable provisions of the California Environmental Quality Act and its implementing regulations (“CEQA”) for approval of this Agreement, and the Application (collectively the “City Approvals”); and WHEREAS, the City Council reviewed and carefully considered the information in the MND, including all comment letters submitted, and made the findings set forth therein, and on INSERT DATE, adopted Resolution No. XX-XX, adopting the MND with comments incorporated, as an objective document that reflects the independent judgment and analysis of the City in the discussion of the Project’s environmental impacts; and
WHEREAS, Developer and City have negotiated this Agreement pursuant to which Developer will provide certain benefits to the City and community in connection with the development and construction of the Project.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, the City and Developer agree as follows:
1. PROJECT. Developer may construct and install, or have constructed and installed at its own cost, expense and liability, the Project. Construction of the Project shall be in accordance with the provisions of the City Approvals.
2. TERM. The term of this Agreement shall commence on the Effective Date, and shall continue in full force and effect until the Project is deemed decommissioned by the City.
3. COMMUNITY BENEFIT.
a. Community Benefit Fee. Within thirty (30) days after the City’s issuance of the first building permit for the Project, Developer shall make a one-time cash payment to the City in the amount of Two Million Dollars ($2,000,000.00). Upon completion of final inspections by the City, City shall provide notice to Developer within five business days.
Developer shall then remit a one-time cash payment to the City in the amount of Four Million Dollars ($4,000,000.00) prior to the City’s issuance of the final certificate of occupancy for the Project, which the City shall issue within two (2) business days after receipt of payment from Developer. Developer is informed that the City has the discretion to use Developer’s payment for future benefits of the City overall. b. Fire Safety. Developer shall comply with all conditions and/or training requirements imposed by the Los Angeles County Fire Department, as set forth in the conditions approved for the Project, and all applicable laws in effect at the time the first building permit for the Project is issued.
c. Sales and Use Tax. Consistent with the provisions of applicable California law, Developer shall use commercially reasonable efforts to maximize the total amount of all Sales and Use Tax Revenue received by the City from development, construction, and maintenance of the Project, for the purchase, sale or use of any and all materials, equipment, fixtures or other items upon which sales or use tax is due, including any and all sales or use tax due from any third party vendors or other contractors involved in the development and construction of the Project pursuant to the terms and conditions of a contractual agreement with Developer or its contractors (“Project Sales and Use Tax Revenue”). It is anticipated the City will receive a total of at least Three Million Dollars $3,000,000.00 in Project Sales and Use Tax Revenue. At the end of the first full City fiscal year following completion of the Project to its operational stage connected to the electrical grid and following City issuance of a final certificate of occupancy, once the data is available the City shall provide Developer with an accounting, identifying the amount of all Project Sales and Use Tax Revenue received in relation to the Project, including funds received in preceding City fiscal years prior to completion of the Project as applicable. If the City determines that amount of Project Sales and Use Tax Revenue received by the City is less than Three Million Dollars $3,000,000.00, the City shall invoice Developer for the difference (i.e., Three Million Dollars $3,000,000.00 less the amount of Project Sales and Use Tax Revenue actually received) and provide Developer with the information relied upon by the City in making such determination (to the extent such disclosure is not prohibited by law). Developer shall have thirty (30) days to remit payment to the City.
Developer shall timely report and pay all sales and use taxes relating to the Project in accordance with the laws, rules and regulations applicable to such payment.
Upon City request, once the data is available, Developer shall supply a list of tax-paying contractors and vendors for the Project to assist the City with tracking Project Sales and Use Tax Revenue.
For purposes of this Agreement, the term “Sales and Use Tax Revenue” shall have the same meaning as set forth in Chapter 3.20 of the City’s Municipal Code.
4. ANNUAL REVIEW. At least once during every twelve (12) month period of the Term, City shall review the good faith compliance of Developer with the terms of this Agreement.
5. INDEMNIFICATION. Developer shall indemnify, defend, and hold harmless the City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including judgments, legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the City’s approval of the Project including any environmental review, Developer’s work on the Project, or Developer’s performance under this Agreement. Said indemnity by Developer shall extend to any individual or agency for which Developer is legally liable, including but not limited to, officers, agents, employees, or contractors of Developer. The terms of this Section shall survive the termination of this Agreement.
6. NOTICES. Any notices which either Party may desire to give to the other Party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:
To City: City of Industry
15625 Mayor Dave Way
City of Industry, CA 91744
Attention: City Manager
With a Copy To: James M. Casso, City Attorney
Casso & Sparks, LLP
13300 Crossroads Parkway North, Suite 410
City of Industry, CA 91746
To Developer:
Marici Project LLC
c/o Aypa Power Development LLC
11801 Domain Blvd, Suite 525
Austin, TX 78758
Email: [email protected]
With a copy to:
Marici Project LLC
c/o Aypa Power Development LLC
Attn: General Counsel
11801 Domain Blvd, Suite 525
Austin, TX 78758
Email: [email protected]
7. ASSIGNMENT. Developer shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of City, except to an affiliate of Developer. Provided however, that Developer may make such assignments as the Developer deems necessary for collateral security purposes to aid in providing financing for the Project, without written consent of City. Any other attempts to assign this Agreement or any interest herein without prior written consent of City shall be null and void, and any assignee, hypothecatee, or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. The City shall not withhold such approval if Developer’s successor entity provides reasonably satisfactory evidence to City that it possesses the financial resources equivalent or superior to those of Developer to meet the obligations in this Agreement. Upon an assignment as allowed in this Section, Developer shall be released from its obligations under this Agreement, provided that assignee shall commit in writing to assume Developer’s obligations under this Agreement.
8. GOVERNING LAW AND VENUE. City and Developer understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the Parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court in Los Angeles County, California. If any action at law or suit in equity is brought to enforce or interpret the provisions of this Agreement, or arising out of or relating to City’s or Developer’s obligations under, or performance of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and all related costs, including costs of expert witnesses and consultants, as well as costs on appeal, in addition to any other relief to which it may be entitled.
9. RELATIONSHIP OF THE PARTIES. The Parties hereby mutually agree that neither this Agreement, nor any other related entitlement, permit, or approval issued by the City shall operate to create the relationship of partnership, joint venture, or agency between the City and Developer. Developer’s contractors and subcontractors are exclusively and solely under the control and dominion of Developer. Nothing herein shall be deemed to make Developer or its contractors an agent or contractor of the City.
10. BINDING EFFECT. Each and all of the covenants and conditions herein shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns.
11. NO THIRD PARTY BENEFICIARIES. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
12. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the Parties relating to the obligations of the Parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written and pertaining to the subject of this Agreement or with respect to the terms and conditions of this
Agreement, are merged into this Agreement and shall be of no further force or effect. Each Party is entering into this Agreement based solely upon the representations set forth herein and upon each Party’s own independent investigation of any and all facts such party deems material.
13. AMENDMENT/MODIFICATION. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
14. SEVERABILITY. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
15. COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
16. CAPTIONS. The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and shall have no significance in the interpretation of this Agreement.
17. WAIVER. The waiver by City of Developer of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained.
No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Developer unless in writing.
18. REMEDIES. Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any Party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any of all of such other rights, powers or remedies.
19. AUTHORITY TO EXECUTE THIS AGREEMENT. The person or persons executing this Agreement on behalf of Developer and City represent and warrant that he/she has the authority to execute this Agreement on behalf of the Party and has the authority to bind the Party to the performance of its obligations hereunder.
20. EFFECTIVE DATE. This Agreement is not a commitment by the City to approve the Project. This Agreement shall have no force or effect unless and until the Project is approved, following compliance with CEQA, and all appeal periods for the City Approvals have expired.
(Signature Page to Follow)
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the Effective Date.
“CITY” “DEVELOPER”
City of Industry Marici Project LLC
By:________________________________ By:__________________________ Cory C. Moss, Mayor Name, Title
Attest:
By:______________________________
Julie Gutierrez-Robles, City Clerk
Approved as to form:
By:
James M. Casso, City Attorney