Daly City City Council
February 24, 2025

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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Daly City
333 90th Street
Daly City, CA 94015
Attn: City Manager
THIS SPACE ABOVE FOR RECORDER’S USE

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DALY CITY AND

CORMORANT ENERGY STORAGE, LLC
THIS DEVELOPMENT AGREEMENT (the “Agreement”) is entered into this [ ]th day of [month], 2025, between CORMORANT ENERGY STORAGE, LLC, a Delaware limited liability company (“Developer”), and the CITY OF DALY CITY (“City”), pursuant to the authority of Sections 65864 et seq. of the California Government Code.

RECITALS AND FINDING
This Agreement is based on the following facts, understandings and intentions of the parties:

A. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the California Legislature enacted the Development Agreement Statute (Government Code, Section 65864 et seq.), which authorizes any city to enter into binding, long-term agreements with persons or entities having legal or equitable interests in real property, for which agreements provide for the development of the property.

B. Developer is a unit of Arevon Energy, Inc., a leading renewable energy company with a proven track record of safely constructing and operating utility-scale energy projects across the United States.

C. Developer proposes to build a 250 MW battery energy storage system (“BESS”) in two phases using Tesla’s advanced Megapack 2XL batteries in battery storage containers at the Project Site (defined herein) commonly known as 2150 Geneva Avenue; a transmission line (“Gen-Tie”) connecting the BESS to the Martin substation primarily underground through Carter Street, Martin Street, and Schwerin Street; and ancillary facilities pertinent to the operation of a BESS, including but not limited to racks of batteries, battery augmentation units, control units, fire prevention and fire protection equipment, voltage transformers and inverters, a small on-site substation, and the public infrastructure associated with the Project Site, all in accordance with this Agreement, the Exhibits thereto, and the other Project Approvals (defined herein) (collectively, “Project”).

This state-of-the-art energy storage system will support grid reliability and help maximize

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the use of clean, renewable energy sources. By storing excess renewable energy when it is abundant and dispatching it back to the grid when it is needed most, the Project will play a vital role in enhancing the stability and resilience of the local power grid and reducing reliance on fossil fuels.

D. In addition to this Agreement, the Project includes a General Plan Amendment and Zone Change pursuant to Chapter 17.48 of the Daly City Municipal Code (“DCMC”), a Use Permit pursuant to Chapter 17.44 of the DCMC, and Design Review pursuant to Chapter 17.45 of the DCMC, and authority for the Project to encroach in the public ROW. Such approvals are including in the Project Approvals as further defined in Article 1.

E. The Project and the Agreement are consistent with the goals and policies of the 2030 Daly City General Plan, as amended by the 2015 Housing Element, for the reasons described in the findings for the other Project Approvals and the land use chapter of the Project’s CEQA documentation, all incorporated by reference herein.

F. On [month] [day], 2025, after a duly noticed public hearing, the City’s Planning Commission voted to recommend approval of the Project Approvals, including the proposed General Plan Amendment GP-11-22-015959, Zone Change ZC-11-22- 015960, Use Permit UPR-11-22-015962, Design Review DR-11-22-015961, Development Agreement, and ROW encroachment authority, as well as the Project’s Mitigated Negative Declaration.

G. [PLACEHOLDER FOR CITY COUNCIL ACTION: On [month] [day], 2025, after a duly noticed public hearing, the City Council voted to approve the Development Agreement via the Enacting Ordinance (defined herein) and the other Project Approvals, including the proposed General Plan Amendment GP-11-22-015959, Zone Change ZC11-22- 015960, Use Permit UPR-11-22-015962, Design Review DR-11-22-015961, Development Agreement, and ROW encroachment authority, as well as [environmental approval] via Resolutions ____, ____, ____, ]
H. [PLACEHOLDER FOR CITY FINDING OF CONSISTENCY, IF SO
FOUND: The City Council hereby finds that this Development Agreement furthers the public health, safety and general welfare and is consistent with the City’s General Plan as amended. The City Council further finds that the City has taken all necessary proceedings in accordance with the City’s ordinances, rules and regulations for the approval of this Agreement.]

AGREEMENT
ARTICLE 1: DEFINITIONS
Section 1.1 “City” is the City of Daly City, a municipal corporation organized and existing under the laws of the State of California.

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Section 1.2 “City Council” is the City Council of the City.

Section 1.3 “City Manager” is the City Manager of the City or the City staff person (s)he designates to carry out all or part of the City’s responsibilities for implementing this Agreement.

Section 1.4 “City Planning Manager” is the senior City official authorized to administer the City’s planning and development procedures and projects, including its development agreements.

Section 1.5 “Conflict” with any Project Approvals shall mean (1) an express inconsistency with the Project Approvals or (2) a material limitation on or interference with the ability of Developer, whether it be technical, economic, or otherwise, to construct and operate the Project according to the Project Approvals.

Section 1.6 “Days” shall refer to calendar days.

Section 1.7 “Developer” is Cormorant Energy Storage, LLC, a Delaware limited liability company, and its successors and assigns, with a legal or equitable interest in the Project Site as an optionee to lease the Project Site from Syufy Enterprises.

Section 1.8 “Development Impact Fees” shall mean monetary exactions which are charged by City in connection with any approval, permit or entitlement relating to development, for the purpose of financing all or a portion of the cost of public facilities, programs or services related to the Project, including but not limited to any Fair Share Fees, other Assembly Bill 1600 fees (pursuant to the Mitigation Fee Act [California Government Code section 66000 et seq]), general facilities fees, parks facilities fees, fire fees, sewage fees, water fees, or police fees.

Section 1.9 “Effective Date” is the date this Agreement is executed by the City Manager.

Section 1.10 “Enacting Ordinance” means City Ordinance No. [New Ord #], enacted by the City Council on [date], 2025, approving this Agreement.

This Agreement shall constitute a part of the Enacting Ordinance as if incorporated therein in full, and a copy of this ordinance is attached hereto as Exhibit F.

Section 1.11 “Existing Ordinances” means Ordinances in effect as of the Vested Rights Date of this Agreement. City has separately compiled the Existing Ordinances and intends to maintain them in an appropriate file indexed to this Agreement. Developer has reviewed said compilation, as of the time of this Agreement, and agrees thereto; for convenience, some of

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the Existing Ordinances are attached hereto in Exhibit E. Developer shall have the right to waive its vested rights as to any particular vested law, regulation, development standard, Existing Ordinance or other requirement, at its sole discretion, consistent with the terms of Section 3.2 of this Agreement.

Section 1.12 “Fair Share Fees” shall be those existing fees for development enacted pursuant to Daly City Municipal Code Chapter 3.36, including any fees for City administrative facilities, fire facilities and equipment, libraries, police facilities and equipment, community recreation centers, street improvements, and water and sewage facilities.

Section 1.13 “Force Majeure Event” refers to delay or other circumstances that materially and negatively impact Developer’s ability to develop this Project as contemplated in the Project Approvals, including this Agreement and its Exhibits, including but not limited to: acts of God, including without limitation floods, earthquakes, fires, pandemics, casualties; acts of war or civil unrest, a public enemy, terrorism, insurrections, riots, mob violence, sabotage, and malicious mischief; strikes, walk-outs, labor disputes, and other labor stoppages; unfavorable market conditions, including without limitation a recession or depression, that render development economically and otherwise infeasible; delay attributable to the actions or inaction of any governmental agency, including without limitation delays in the issuance of permits, approvals, or other actions required for development of the Project, including without limitation Project Approvals and Subsequent City Approvals, or the enactment of conflicting state or federal laws or regulations; delays of the City in processing any Subsequent City Approval beyond periods of time permitted by law or required by this Agreement; boycotts or other shortages or limits on the availability of necessary equipment, materials, or supplies; failure of transportation (but not attributable to a mere increase in price unless such price is commercially unreasonable and will extend for a period of time under the circumstances); a development moratorium (including but not limited to a sewer or water moratorium) approved by the City or other entity having jurisdiction; environmental conditions on the Project Site or other properties in the vicinity; any litigation, administrative action, or judicial or administrative decision, ruling, or order preventing or delaying the development of the Project or adversely affecting the ability of the City, Developer to obtain financing for the Project; the commencement of circulation of an initiative or referendum petition or the filing of any court action to set aside or modify this Agreement, the Project Approvals, or any Subsequent City Approvals; delay attributable to insufficient water available to serve the Project or any phase or portion thereof; or any delay claimed by a party in the performance of any term, covenant, condition or obligation under this Agreement caused by a default of the other party. For the purpose of this definition, a cause shall be

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beyond the control of the party whose performance would otherwise be obligated only if such cause would prevent or hinder the performance of an obligation by any reasonable person similarly situated and shall not apply to causes peculiar to the party claiming the benefit of a Force Majeure Event (such as the failure to order materials in a timely fashion).

Section 1.14 “Future Ordinances” means Ordinances enacted after the Vested Rights Date of this Agreement (including amendments which may be made to Existing Ordinances). Any ordinance amendment to the Project Approvals that is sought by Developer and approved by the City shall not be considered a “Future Ordinance.”
Section 1.15 “Ordinances” means the ordinances, resolutions, codes, rules, regulations and official policies of City governing the permitted uses of land, density, design, improvement, and construction standards and specifications applicable to the use and development of the Project Site. Said Ordinances include without limitation City’s General Plan, Zoning Ordinance, and construction codes.

Section 1.16 “Planning Commission” is the Planning Commission of the City.

Section 1.17 “Project” means the planned development of the Project Site or a portion thereof as an energy storage system, as further described in Recital C and in the Project description in the CEQA document analyzing development at the Project Site, both incorporated herein by reference.

Section 1.18 “Project Approvals” shall mean this Agreement and its Exhibits; a General Plan amendment; a Zone Change; a Use Permit; Design Review; ROW encroachment authority any other land use entitlements or agreements related to the Project that are considered and approved by the City concurrent with this Agreement; and any and all amendments to the foregoing that are sought by Developer and approved by the City. As used in this Agreement, the phrase “other Project Approvals” shall refer to the Project Approvals other than this Agreement. The other Project Approvals cover all phases and aspects of development and operation of the Project as described in the Project description.

Section 1.19 “Project Site” or “Site” means that certain real property graphically depicted on Exhibit A and legally described in Exhibit B.

Section 1.20 “Subsequent” means occurring after the Effective Date.

Section 1.21 “Subsequent City Approvals” means any subsequent land use or development permits, approvals, or entitlements applied for by Developer or its successors in interest, assigns, agents, development

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partners, lessees, licensees, or sublessee with respect to development of the Project Site, including but not limited to:
(a) Development Applications and Conformance Review,
including Design Review
(b) Amendments to the Project Approvals
(c) Site Improvement Plans
(d) Environmental Review pursuant to the California
Environmental Quality Act
(e) Ministerial grading permits, building permits, demolition permits/approvals, and/or certificates of occupancy for all phases of the Project.

Section 1.22 “Vested Rights Date” means December 1, 2025.

ARTICLE 2: LIST OF EXHIBITS
[PROPOSED EXHIBIT LIST]
EXHIBIT A: SITE MAP
EXHIBIT B: LEGAL DESCRIPTION OF PROJECT SITE
EXHIBIT C: MITIGATION MONITORING AND REPORTING PROGRAM
EXHIBIT D: FINDINGS PURSUANT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
EXHIBIT E: COPY OF EXISTING ORDINANCES
EXHIBIT F: ENACTING ORDINANCE
EXHIBIT G: ROW ENCROACHMENT AUTHORIZATION
ARTICLE 3: DEVELOPMENT OF PROJECT SITE
Section 3.1 General Vested Right. Developer shall have the vested right to develop the Project on the Project Site in accordance with the Applicable Ordinances, Project Approvals, and any subsequent amendments to the Project Approvals that are sought by Developer and approved by the City, and City shall have the right to regulate development and use of the Project Site in accordance with the provisions of this Agreement.

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Section 3.2 Applicable Ordinances. Subject to the terms of this Agreement and the other Project Approvals and any amendments thereto, the Existing Ordinances shall control the permitted uses of the Project Site, the density and intensity of such uses, the maximum height and size of proposed buildings, the requirements for reservation and dedication of land for public purposes, and development standards. Except as otherwise provided in exceptions to vested rights below, to the extent that any Existing or Future Ordinances purport to be applicable to the Project Site but are in conflict with this Agreement or the other Project Approvals, the Agreement and Project Approvals shall prevail. Developer shall have the right, at its sole election, to waive any of the foregoing vested rights, in whole or in part, in conducting construction or operations on the Project Site or in pursuing any particular Subsequent City Approval or other entitlement or permit. The ordinances that govern pursuant to this Section 3.2 shall be known as the “Applicable Ordinances.”
The parties acknowledge that Developer cannot at this time predict when or at what rate the Project will be constructed. Such decisions depend upon numerous factors that are not all within Developer’s control. In exchange for Developer’s Extraordinary Benefits identified herein, DCMC Section

17.44.100 regarding the expiration of a use permit if not initiated within a year shall not be applicable to the Project and is therefore not an Applicable Ordinance.

Section 3.3 City Conditions. This Agreement shall not prevent the City from denying or reasonably conditioning approval of any application for a Subsequent City Approval on the basis of Applicable Ordinances and Project Approvals, and which do not conflict with the same. In the event of a conflict between a Project Approval and any conditions of approval for the Project or Subsequent Project Approvals, the Project Approvals, including this Agreement, shall prevail.

Section 3.4 Processing of Subsequent City Approvals. The parties recognize that in order to implement the development of the Project Site as contemplated in this Agreement, Developer may require subsequent approvals, including without limitation the Subsequent City Approvals.

Provided that Developer pays all required processing fees and files full and complete applications in conformity with this Agreement, the other Project Approvals, and Applicable Ordinances, as set forth in Section 3.2, City shall expeditiously review and process all applications for Subsequent City Approvals required to develop the Project consistent with the terms of this Agreement, the other Project Approvals, and Applicable Ordinances. City shall use its best efforts to process and act upon all such applications within the time periods set forth in the Project Approvals, or in the Applicable Ordinances for those approvals not addressed in the Project Approvals.

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Notwithstanding any other provision of this Agreement, no future amendment of any Existing Ordinance or resolution or any subsequent ordinance, resolution or moratorium, enacted either by the City Council or by voter approved initiative, that purports to impose or result in a limitation on the Project, imposed by City, shall apply to govern, or regulate the Project or development or use of the Property during the Term. In the event of any such subsequent action by City, Developer shall continue to be entitled to apply for and receive Subsequent Development Approvals in accordance with the Applicable Ordinances.

Section 3.5 Fair Share Fees and Exactions. Except as otherwise provided in this Agreement, the development of the Project under the Project Approvals, and the Subsequent City Approvals shall be subject only to those types of Fair Share Fees, exactions, and amounts of Fair Share Fees and exactions which are in effect at the time of the Vested Rights Date, subject to adjustment of fee amounts only for inflation and deflation where the Existing Ordinances have established inflation adjustment indexing. Any such Fair Share Fees applicable to an industrial battery energy storage system project shall only apply to the square footage of the battery energy storage system containers.

To the extent the City subsequently repeals or otherwise reduces a Fair Share Fee in existence at the time of the Vested Rights Date, said fee shall be reduced or no longer apply to the Project.

Section 3.6 Timing of Payment for Fair Share Fees. Any Fair Share Fees paid by Developer shall be paid at the time of issuance of building permit on a building-by-building basis.

Section 3.7 City Pass Through Fees. Sections 3.5 and 3.6 of the Agreement shall not apply to any City fees that are pass-through fees from non-City governmental agencies. For any Project Approvals or Subsequent City Approvals that incur a pass-through fee, Developer shall pay the fee lawfully required for all similarly situated projects at the time of the approval, permit, or entitlement. As used in this section, a “pass-through fee” refers to any fee, the amount of which is set by a non-City governmental agency, and is either collected by the City for the purposes of transmitting to that same non-City governmental agency or is collected by the City for the purposes of recouping payments in the fee amount already made by the City to the nonCity governmental agency.

Section 3.8 Other Governmental Permits. At its sole expense, Developer shall apply for and obtain such other permits and approvals, including without limitation Project Approvals, as may be required from other governmental or quasi-governmental agencies having jurisdiction over the Project as may be

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required for the development of, or provision of services to, the Project consistent with this Agreement. City shall cooperate in good faith with Developer to obtain such permits and approvals.

Section 3.9 Application, Processing, and Inspection fees. All Subsequent City Approvals shall be subject to generally applicable application, processing, and inspection fees (including any reimbursement policies for work performed by outside plan checkers) in effect at the time the Subsequent City Approvals are issued or, if any such fees are due prior to issuance thereof, at the time the application(s) for such Subsequent City Approvals is/are filed.

Section 3.10 Exception to Vested Rights –Construction Codes. Ordinances establishing construction requirements and specifications, including without limitation the California Building Code, California Energy Code, California Green Building Standards, California Electrical Code, California Plumbing Code, California Fire Code, and California Mechanical Code, which are adopted or revised during the term of this Agreement shall apply as of the time of application for the construction and building permits for development of the Project.

Section 3.11 Exception to Vested Rights -- State and Federal Requirements. This Agreement shall not preclude the application of changes in Ordinances, the terms of which are specifically mandated and required by changes in State or Federal laws or regulations as provided in Government Code section 65869.5, to the development and use of the Project Site. In the event that State or Federal laws, or regulations enacted after the Vested Rights Date of this Agreement, or actions by any governmental jurisdiction other than City, prevent or preclude compliance with one or more provisions of this Agreement, or require changes in Project Approvals or Subsequent City Approvals issued by City, this Agreement shall be automatically modified, extended, and/or suspended to the extent reasonably necessary to comply with such State or Federal laws or regulations.

Section 3.12 Developer’s Extraordinary Benefit Obligations – Corporate Goodwill Contributions Community Organizations Developer shall provide at least $250,000 in corporate goodwill donations (including donations made prior to the Effective Date of the Agreement) that benefit the public within five years of issuance of a certificate of occupancy for phase one of the Project.

Developer has and shall continue to make a good faith effort to work closely with elected officials, community leaders, and local stakeholders to identify and prioritize the initiatives that will best serve the needs and interests of local residents. Such initiatives may include, but are not limited to, sponsorship packages and donations to local organizations, participation in local community engagement events to strengthen community ties and

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actively engage with residents, and the awarding of STEM scholarships to students graduating from Jefferson and Westmoor High Schools. Any time after the fifth anniversary of the certificate of occupancy on the phase one of the Project, upon written request from the City, Developer shall provide the City’s Director of Finance and Administrative Services Department an itemized accounting of at least $200,000 in corporate goodwill donations (including donations made prior to the Effective Date of the Agreement.) Section 3.13 Developer’s Extraordinary Benefit Obligations – Corporate Goodwill Contributions to Recreational Community Organizations.

Developer shall provide at least $250,000 in corporate goodwill donations supporting partnerships with local community-based organizations with a mission to expand recreational opportunities within five years of issuance of a certificate of occupancy for phase one of the Project. Any time after the fifth anniversary of the certificate of occupancy on the phase one of the Project, upon written request from the City, Developer shall provide the City’s Director of Finance and Administrative Services Department an itemized accounting of at least $250,000 in corporate goodwill donations to one or more local community-based organizations with a mission to expand recreational opportunities.

Section 3.14 Developer’s Extraordinary Benefit Obligations – Sales Tax Guarantee.
(a) During the Term of this Agreement, to the extent feasible and allowed by applicable law, Developer agrees to use commercially reasonable efforts to maximize the total amount of all Sales and Use Tax Revenue received by the City from development and construction 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 in the Project’s first development phase and One Million Dollars ($1,000,000.00) in the Project’s second development phase. At the end of the first full City fiscal year following completion of each phase of the Project to its operational stage connected to the electrical grid, 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 $3,000,000.00 for the first phase or $1,000,000.00 for the second phase, the

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City shall invoice Developer for the difference (i.e., $3,000,000.00 less the amount of Project Sales and Use Tax Revenue actually received for phase one and $1,000,000.00 less the amount of Project Sales and Use Tax Revenue actually received for phase two) and provide Developer with the information relied upon by the City in making such determination. Developer shall have thirty (30) days to either remit payment to the City’s Director of Finance and Administrative Services Department or provide any comments or additional information to the City regarding the amount of the Project Sales and Use Tax Revenue, which the City shall consider in good faith. No later than thirty (30) days following the receipt of any such information from Developer, the City shall notify Developer in writing whether its determination of the Project Sales and Use Tax Revenue has changed and, if so, issue a revised invoice to Developer. Developer will remit payment to the City’s Director of Finance and Administrative Services Department within thirty (30) days of receipt of such notice, regardless of whether or not the invoice has been revised.
(b) 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.
(c) Once available to Developer, Developer shall supply the City with information to assist the City in determining the Project Sales and Use Tax Revenue. Such information may include (i) sales and use tax returns filed with the California Department of Tax and Fee Administration (“CDTFA”) by Developer or its contractors, (ii) invoices relating to Developer’s or its contractors’ purchase of taxable items in connection with the development or operation of the Project, (iii) business records reflecting payment of sales or use tax to vendors or the CDTFA relating to purchase or use of taxable items in connection with the development or operation of the Project, and/or (iv) names of contractors, vendors, or other parties who may remit sales or use tax to the CDFTA in connection with the development or operation of the Project. For the avoidance of doubt, nothing in this Section 3.14(c) shall require Developer to provide each of the items enumerated in this subsection or prohibit Developer from providing additional information as contemplated by Section 3.14(a).
(d) Project Sales and Use Tax Revenue shall be deemed to have been received by the City if and to the extent the CDTFA elects to offset the payment of any such Project Sales and Use Tax Revenue against any other obligations of the City. Section 3.14. Developer’s Extraordinary Benefit Obligations – Contribution to Improvement of City Parks and Open Space.

Prior to the issuance of the occupancy permit for phase one of the Project, Developer shall tender to the City’s Director of Finance and Administrative Services Department a $400,000.00 contribution for the City’s use in

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improving the City park and open space areas (“Park Projects”). Prior to the issuance of the occupancy permit for phase two of the Project, Developer shall tender to the City’s Director of Finance and Administrative Services Department a $100,000.00 contribution for the City’s use in improving the Park Projects. For the sake of clarity, the Park Projects are City public improvement projects with independent utility from the Project, for which the City is responsible for processing all necessary entitlements. The City shall include Developer in, and publicly recognized Developer’s contribution during, all groundbreaking or other ceremonies celebrating any City Park Project improvement funded or partially funded pursuant to this Agreement.

Section 3.14. ROW Encroachment Authorization. By entering into this Agreement, the City hereby grants Developer encroachment authorization into, under, over and through City rights-of-way and public service easements for development of the Gen-tie line and appurtenant project facilities in accordance with the terms of the ROW Encroachment Authorization attached hereto as Exhibit G.

Section 3.15. Development Intensity, Permitted Uses, Maximum Height and Size, Dedication of Land for Public Purposes. Consistent with Government Code Section 65865.2, the Project’s development intensity, permitted uses, maximum height and size limitations, and any applicable requirements for dedication of land for public purposes are those described in the other Project Approvals and are incorporated herein by reference. Section 3.16.

City Support for Gen-Tie Line Easement. City shall support Developer’s application to the Housing Development Finance Agency for approval of a Grant of Easement in a form and substance substantially similar to the Easement Agreement attached hereto as Exhibit H, including all related approvals. Nothing herein shall be interpreted as obligating the Housing Development Finance Agency to grant the Easement Agreement. Both Parties acknowledge that the Housing Development Finance Agency’s determination shall be independent and informed on the merits following a public hearing.

Section 3.17. City’s Extraordinary Benefit for Easement Agreement.

Developer shall provide an additional $25,000 to the City for the same purposes as those identified in Section 3.13 should the Housing Development Finance Agency grant the Easement Agreement and all related approvals, and Developer applies for and is granted a building permit to develop within the easement area described in the Easement Agreement.

Payment shall be tendered to the City within five (5) business days of either (i) City issuance of a certificate of occupancy for phase one of the Project, or (ii) City granting a building permit pursuant to this Section of the Agreement, whichever is later.

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Section 3.18. Gen-Tie Route Options. Developer shall have the option to develop the gen-tie line through either the easement area described in Easement Agreement or any other location that substantially conforms to the location depicted in the Project’s approved site plan. Substantial conformance shall be liberally construed to effectuate the purpose of allowing the efficient transmission of power between the battery energy storage system and the electrical grid.

ARTICLE 4: PERIODIC REVIEW OF AGREEMENT
Pursuant to Government Code Section 65865.1, the City’s Planning Manager shall conduct an annual review of this Agreement to ascertain the parties’ good faith compliance with its terms. Upon request, Developer shall provide the City’s Planning Manager with information reasonably necessary to carry out this determination. If the Planning Manager finds, after an administrative review, that Developer is in good faith compliance with this Agreement, the Planning Manager shall issue Developer a certificate of compliance. If the Planning Manager finds Developer is not in good faith compliance with this Agreement, then the Planning Manager shall notify Developer and schedule a meet and confer with the Developer to discuss the alleged non-compliance. Following the meeting, if the Planning Manager determines the Project is in fact not it compliance, then the Planning Manager shall notify the Developer in writing. Developer shall 30 days to either submit a written plan for bringing the Project back into compliance or appeal the notice of non-compliance to the City Council. If after such hearing the City Council determines Developer is not in good faith compliance with this Agreement, City may pursue available rights and remedies in accordance with this Agreement. If the Planning Manager does not initiate an annual review in any given year, Developer shall be deemed to be in good faith compliance with this Agreement.

ARTICLE 5: AMENDMENT
Section 5.1 In General. This Agreement may be canceled, modified or amended only by mutual written consent of the parties, in accordance with the provisions of Government Code Sections 65867, 65867.5 and 65868. No amendment shall disturb the Vested Rights Date, scope, or other element of the rights vested under Article 3 of this Agreement.

Section 5.2 Major Amendments. Any amendment to this Agreement concerning the legal boundaries of the Project Site as depicted in Exhibits A and B, Developer’s obligations as stated in Sections 3.12, 3.13 or 3.14, or the Agreement’s provisions regarding fees and exactions in Section 3.5 shall be considered a Major Amendment and shall require giving of notice and a public hearing before the Planning Commission and City Council pursuant

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to the provisions of Section 5.1 above. Any amendment to any of the other Project Approvals shall be governed by the terms of those documents and shall not require any amendment to this Agreement.

Section 5.3 Minor Amendments. The parties acknowledge that refinement and implementation of the Project might demonstrate that certain minor changes might be appropriate with respect to the details and performance of the parties under this Agreement. The parties desire to retain a certain degree of flexibility with respect to the details of the Project and with respect to those items covered in the general terms of this Agreement. If and when the parties find that clarifications, minor changes, or minor adjustments are necessary and do not constitute a Major Amendment under Section 5.2, they shall effectuate such clarifications, minor changes, or minor adjustments through a written Minor Amendment approved in writing by Developer and the City Manager. Unless otherwise required by law, no such Minor Amendment shall require prior notice or hearings, nor shall it constitute an amendment to this Agreement as defined by the Government Code.

ARTICLE 6: GENERAL PROVISIONS
Section 6.1 Covenants. The provisions of this Agreement shall constitute covenants or servitudes which shall run with the land comprising the Project Site, and the burdens and benefits hereof shall bind and inure to the benefit of all estates and interests in the Project Site and all successors in interest to the parties hereto.

Section 6.2 Term. The Term of this Agreement shall commence upon the Effective Date and extend until the expiration of thirty (30) years after the Effective Date.

Notwithstanding the foregoing, the Term of this Agreement shall be automatically extended for the period that development is prevented or delayed, in whole or in part, due to a Force Majeure Event. At any time, any party claiming an extension as a result of a Force Majeure Event shall provide the other party with written notice of such extension, the reason for the delay and an estimated length of delay. Upon the other party’s receipt of such notice, the period of time for performance of any obligation or duty shall be automatically extended for the period of the Force Majeure Event, unless the other party objects in writing within thirty (30) days after receiving the notice. In the event of such objection, the parties shall meet and confer within thirty (30) days after the date of objection to arrive at a mutually acceptable solution to the disagreement regarding the delay. If no mutually acceptable solution is reached at the conclusion of the meet and confer session(s), either party may initiate dispute resolution proceedings as set forth in Section

6.7 of this Agreement.

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The Term may also be extended upon mutual written consent by both parties.

Expiration of this Agreement shall have no legal effect on any other Project Approval, including but not limited to the General Plan Amendment, Zone Change, Use Permit, ROW encroachment authorization and Design Review, and their applicability to the Project.

Section 6.3 Default: Remedies; Termination. Failure or unreasonable delay by either party to perform any obligation under this Agreement for a period of thirty (30) days after written notice thereof from the other party shall constitute a default under this Agreement, subject to extensions of time by mutual consent in writing. Said notice shall specify the nature of the alleged default and the manner in which said default may be satisfactorily cured. If the nature of the alleged default is such that it cannot reasonably be cured within such thirty (30) day period, the commencement of the cure within such time period and the diligent prosecution to completion of the cure shall be deemed a cure within such period.

Subject to the prior paragraph, after notice and expiration of the thirty (30) day period without cure, the other party to this Agreement, at its option, may institute legal proceedings pursuant to this Agreement and/or give notice of intent to terminate the Agreement pursuant to Government Code Section 65868. Following any such City notice of intent to terminate, the matter shall be scheduled for consideration and review by the City Council within thirty (30) calendar days in the manner set forth in Government Code Sections 65865.1, 65867 and 65868. Following consideration of the evidence presented in said review before the City Council, and a determination by the City Council based thereon, the City may give written notice of termination of this Agreement to the other party.

For any default relating to the Project, any such remedies shall be limited to specific performance, injunctive or declaratory relief (and the right to recover reasonable attorney’s fees in connection with such proceedings). The waiver by either party of any default under this Agreement shall not operate as a waiver of any subsequent breach of the same or any other provision of this Agreement.

Section 6.4 Enforced Delay: Extension of Time of Performance. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to a Force Majeure Event.

Section 6.5 Cooperation in the Event of Third-Party Legal Challenge. In the event of any legal or equitable action or proceeding instituted by a third

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party challenging the validity of any provision of this Agreement or the procedures leading to its adoption or the issuance of Project Approvals or Subsequent City Approvals for the Project, the parties hereby agree to cooperate in defending said action or proceeding.

Section 6.6 Effect of Termination. Except as otherwise provided in this Agreement, termination of this Agreement shall not affect Developer’s obligation to comply with the standards, terms and conditions of any other Project Approvals or Subsequent City Approvals issued with respect to the Project Site or any portion thereof; nor shall it affect any covenants of Developer which are specified in this Agreement to continue after termination.

The following provisions of this Agreement shall survive and remain in effect following termination or cancellation of this Agreement for so long as necessary to give them full force and effect: (1) Section 6.5 (Cooperation in the Event of Third-Party Legal Challenge) and (2) Section 6.7 (Legal Actions; Remedies; Attorney’s Fees).

Termination of this Agreement shall have no legal effect on any other Project Approval, including but not limited to the General Plan Amendment, Zone Change, Use Permit, Design Review, and ROW encroachment authorization.

Section 6.7 Legal Actions; Remedies; Attorney’s Fees. Subject to the provisions of Section 6.3, in addition to any other rights and remedies, either party may institute legal action to cure, correct, or remedy any default, enforce any covenant or agreement herein, and enjoin any threatened or attempted violation or enforce by specific performance the obligations and rights of the parties hereto. In no event shall either party or its officers, agents or employees be liable for monetary or other damages for any breach or violation of this Agreement, it being expressly understood and agreed that the sole legal remedy available to either party for a breach or violation of this Agreement by the other party shall be a legal action in mandamus, specific performance, injunctive or declaratory relief to enforce the provisions of this Agreement. In any such legal action, the prevailing party, as defined in CCP § 1032, shall be entitled to recover all litigation expenses, including reasonable attorney’s fees and court costs.

Section 6.8 Construction of Agreement. This Agreement shall be construed and enforced in accordance with the laws of the State of California and City, as they may be amended, provided that such amendments do not substantially alter the rights granted to the parties by this Agreement. Both parties and their legal counsel have reviewed this Agreement and agree that any rule that ambiguities are to be construed against the drafting party shall

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not apply. This Agreement, including the text and all Exhibits hereto, is intended to be interpreted as an integrated whole. Where provisions appear to be in conflict, they will be harmonized if possible. In the event that an irreconcilable conflict exists between the Agreement text and one or more of the Exhibits, the text shall control. In the event that an irreconcilable conflict exists between the Agreement and one or more of the other Project Approvals or Mitigation Monitoring and Reporting Program, the Agreement shall control.

Section 6.9 No Joint Venture, Partnership or Agency. It is specifically understood and agreed by City and Developer that the development of the Project Site is a non-City development. No partnership, joint venture, agency or other association of any kind between City and Developer is formed by this Agreement. The only relationship between City and Developer is that of a governmental entity regulating the development. City and Developer agree that nothing contained herein or in any document executed in connection herewith shall be construed as making City and Developer joint venturers, partners or agents of one another.

Section 6.10 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect.

Section 6.11 Further Documents. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement.

Section 6.12 Notices. Any notice or communication required hereunder between City and Developer must be in writing, and may be given either personally or by registered or certified mail, return receipt requested. If given by registered or certified mail, the same shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If personally delivered, a notice shall be deemed to have been given when delivered to the party to whom it is addressed. Any party hereto may at any time, by giving ten (10) days’ written notice to the other party hereto,

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designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth on the below:

City: City of Daly City
333 90th Street
Daly City, CA 94015
Attn: City Manager
with a copy to: City of Daly City
333 90th Street
Daly City, CA 94015
Attn: City Attorney
Developer: Cormorant Energy Storage, LLC
c/o Arevon Energy
8800 North Gainey Center Drive
Suite 100
Scottsdale, AZ 85258
Attn: Director of Development – Energy Storage
with a copy to: Sheppard, Mullin, Richter & Hampton LLP 501 W. Broadway, 18th Floor
San Diego, CA 92101
Attn: Jeffrey W. Forrest, Esq.

Section 6.13 Assignment; Collateral Transfer; Mortgagee Protection. (a) The rights and obligations of Developer hereunder shall not be assigned or transferred, except that on no less than thirty (30) days written notice to City, Developer may assign all or a portion of Developer’s rights and obligations hereunder to any person or persons, limited liability company, partnership, corporation, or any other entity who purchases all or a portion of Developer’s right, title and interest in the Project, provided such assignee or grantee assumes in writing each and every obligation of Developer hereunder yet to be performed with respect to the assigned portion of the Project, and such assignee or grantee shall have the same assignment and transfer rights and obligations. The notice to City shall include the identity of any such assignee or grantee and a copy of the written assumption of the assignor’s or grantor’s obligations hereunder pertaining to the portion assigned or transferred. After such notice, the assignor or grantor shall have no further obligations or liabilities hereunder. Notice under this Section shall not be required for an assignment or transfer to the extent

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resulting from a restructuring or name change involving Developer and affiliated entities. Notwithstanding anything in this Agreement, Developer may implement its obligations under this Agreement through the use of Developer employees, representatives, agents, contractees, and other third parties selected by Developer. In the event of a partial assignment, a default of the assignee shall not be deemed a default of the Developer and a default of the Developer shall not be deemed a default of the assignee. (b) Without limiting the generality of the foregoing, Developer may, without prior written notice to the City, mortgage, collaterally assign, or otherwise encumber and grant security interests in all or any part of its interest in this Agreement and/or the Project and its related facilities to any Mortgagee (defined below). However, Developer shall give the City notice information as to any Mortgagee, and thereafter, the City shall deliver any Notice of Default to any Mortgagee at the same time it delivers any Notice of Default to Developer. Each Mortgagee shall have the right, but not the obligation, to cure the Event of Default. The cure period available to Mortgagee shall be extended for the time period reasonably required for Mortgagee to obtain possession of the Property, provided that Mortgagee diligently and continuously proceeds to use commercially reasonable efforts to so obtain possession of the Property and to complete such cure. Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the Mortgage or deed of trust, or deed in lieu of such foreclosure, or otherwise, shall take the Property, or part thereof, subject to the terms of this Agreement. However, in the event a court determines this Agreement is terminated due to the bankruptcy or insolvency of Developer, upon the written request of any Mortgagee, the City shall agree to a development agreement with such Mortgagee(s) on substantially similar terms and conditions as agreed to herein). “Mortgagee” as used herein shall mean a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security device, a lender, or any party providing tax equity financing in connection with the Project, and each of their respective successors and assigns.
(c) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law.

Section 6.14 Authorized Applicants for Project Approvals. Notwithstanding anything else in this Agreement, the following may apply for Subsequent City Approvals: successors, assignees, or grantees of Developer; and any third party with the written consent of Developer, including without limitation any agents, joint development partners, lessees, licensees, or sublessees.

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Section 6.15 Right to Lease Project Facilities. Notwithstanding anything else in this Agreement, the parties acknowledge and agree that nothing in this Agreement prohibits Developer from leasing or licensing any portion of the Project Site (each a “Project Component”) to affiliated or third parties for any purpose consistent with the terms of this Agreement, including, but not limited to constructing, operating, subleasing, and any other permitted use. Any such lease, license, or sublease of a Project Component will not require any notification to or consent by the City provided that the tenant or occupant is required, in the subject lease, license, or sublease, to comply with the obligations and requirements of this Agreement that would be applicable to the Project Component occupied or used by such tenant, licensee or occupant. The parties agree that, if Developer and a third party enter into a lease or license (or like rights to use and operate) for a Project Component, then if a default occurs that is caused by the use or operation of such Project Component, then any enforcement or remedy for such default other than specific enforcement, declaratory relief and any attorney’s fees and costs for such proceedings, shall be further subordinated to the interests of any ground lease tenant, leasehold mortgagee or other interest holder in the Project Component, and the City will enter into a subordination agreement confirming such subordination in the form reasonably required by the interest holder in such Project Component.

Section 6.16 Entire Agreement. This written Agreement, including the Exhibits hereto, contains all the representations and the entire agreement between the parties with respect to the subject matter hereof. Except as otherwise specified in this Agreement, any prior or contemporaneous correspondence, drafts, memoranda, agreements, warranties or representations are superseded in total by this Agreement. This Agreement also supersedes any previous development agreements or land use entitlements that may affect or govern the Project Site or its development.

Section 6.17 No Third Party Beneficiaries. This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement, including without limitation its Exhibits, for any cause whatsoever.

Section 6.18 Recitals Not Incorporated. The Recitals preceding this Agreement are not incorporated into this Agreement and are not part of the representations or the entire agreements between the parties with respect to the subject matter hereof.

Section 6.19 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

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Section 6.20 Warranty of Authority. The person(s) executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party, if not an individual, is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which such party is bound.

Section 6.21 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original Agreement, and all of which shall constitute one and the same Agreement.

Section 6.22 Recordation. Within ten (10) days after the Enacting Ordinance takes effect, the City Manager shall execute this Agreement on behalf of City, and the City Clerk shall record this Agreement with the San Mateo County Recorder. If this Agreement is terminated, modified or amended pursuant to Article 5 or 6 of this Agreement, the City Clerk shall record notice of such action with the San Mateo County Recorder.

Section 6.23 No Obligation to Construct. Nothing herein shall be interpreted as requiring Developer to construct phase one or phase two of the Project and Developer shall not be required to fulfill extraordinary benefit obligations related to any phase not constructed.

Section 6.24 No Discrimination. Developer covenants that, by and for itself, there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, sexual orientation or gender preference, national origin, or ancestry in the performance of this Agreement.

Section 6.25 Estoppel Certificates. Either party hereto (or a Mortgagee) may at any time during the Term deliver written notice to the other party requesting an estoppel certificate (“Estoppel Certificate”):
(a) certifying that the Agreement is in full force and effect and is a binding obligation of the parties hereto;
(b) certifying that the Agreement has not been amended or modified or, if so amended or modified, identifying such amendments and/or modifications;
(c) certifying that there are no existing defaults under the Agreement to the actual knowledge of the party signing the Estoppel Certificate, or if there are any, identifying the same; and

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(d) containing any other reasonable certifications that may be requested by either Party (or a Mortgagee).

A party receiving a request for an Estoppel Certificate shall provide a signed certificate to the requesting party within ten (10) business days after receipt of the request. Failure to timely deliver an Estoppel Certificate shall be deemed to certification of the requested certifications (“Deemed Estoppel Certificate”). An Estoppel Certificate or Deemed Estoppel Certificate may be relied on by Developer’s assignees and Mortgagees.

Section 6.26 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code §§ 1091 or 1091.5. (Signature Pages Follow)

(Signature Page to Development Agreement)
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above.

Developer: CORMORANT ENERGY STORAGE, LLC,
a Delaware limited liability company
By: ________________________________
Name:

Title:

City: CITY OF DALY CITY,
a municipal corporation
By:

Name:

Title:

Approved as to form: CITY ATTORNEY
By:

Name:

(Signature Page to Development Agreement)

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF SAN MATEO
On __________, 202__, before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _____________________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

(Signature Page to Development Agreement)

ALL-PURPOSE ACKNOWLEDGMENT
STATE OF __________________
COUNTY OF _________________
On __________, 202__, before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of _______________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _____________________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

(Signature Page to Development Agreement)

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF SAN MATEO
On __________, 2025, before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _____________________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

EXHIBIT A
[PLACEHOLDER FOR SITE MAP]

EXHIBIT B
[PLACEHOLDER FOR LEGAL DESCRIPTION]

EXHIBIT C
[PLACEHOLDER FOR MITIGATION MONITORING AND REPORTING PROGRAM]

EXHIBIT D
[PLACEHOLDER FOR FINDINGS PURSUANT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT]

EXHIBIT E
[PLACEHOLDER FOR COPY OF EXISTING ORDINANCES]

EXHIBIT F
[PLACEHOLDER FOR ENACTING ORDINANCE]

EXHIBIT G

ROW ENCROACHMENT AUTHORIZATION
[SEE PAGE THAT FOLLOWS]

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

Cormorant Energy Storage, LLC
c/o Arevon Energy, Inc.
8800 N. Gainey Center Dr., Suite 100
Scottsdale, AZ 85282
Attn: Asset Management
THIS SPACE ABOVE FOR RECORDER’S USE

ENCROACHMENT AGREEMENT
This Encroachment Agreement (this “Agreement”) is entered into as of ___________________, 202__, (the “Effective Date”) by and between the City of Daly City, a municipal corporation of the State of California (the “City”), and Cormorant Energy Storage, LLC, a Delaware limited liability company (collectively with any successors-in-interest “Cormorant”).

The City and Cormorant may be referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS
A. Cormorant is leasing certain real property located within the City for purposes of developing and operating a battery energy storage system (the “Project”).

B. Cormorant desires to install, operate and maintain a generation interconnection line and related appurtenances within certain of the City’s public rights-of-way in connection with Cormorant’s operation of the Project, as further set forth herein.

C. The City has the authority to regulate the terms and conditions for the use of public rights-of-way within the City consistent with applicable law and has determined that the rights granted to Cormorant herein will not adversely affect the City’s obligation to provide for and protect the public health, safety and general welfare.

D. Subject to the terms and conditions of this Agreement, the City is willing to grant Cormorant the right to encroach into certain public rights-of-way, as further set forth herein.

NOW, THEREFORE, in consideration of the promises and the mutual covenants of the Parties, the legal sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

AGREEMENT
This Agreement shall run with the land.

The City hereby grants Cormorant the right to encroach into those certain public rights-ofway more commonly known as [Carter Street, Martin Street and Schwerin Street] (collectively, the “ROW”) within that certain area more particularly described on Exhibit A attached hereto and incorporated herein and depicted on Exhibit B attached hereto and incorporated herein (such area, the “Encroachment Area”) for purposes of (the following purposes, the “Permitted Purposes”) installing, inspecting, operating, repairing, replacing, removing from time-to-time, modifying and maintaining a generation interconnection line and related appurtenances (the “Encroachment”).

Cormorant shall conduct the Permitted Purposes in a safe and sanitary manner at the sole cost, risk and responsibility of Cormorant.

With respect to any liability, including but not limited to claims asserted, demands, causes of action, costs, expenses, losses, attorneys’ fees, damages, expenses or payments that the City may sustain or incur in any manner for damages or injuries, including those to any person (including disability, dismemberment, illness damages, or death) or property, arising from, related to, or resulting from the Permitted Purposes or presence of the Encroachment within the ROW, Cormorant agrees to defend, indemnify, protect and hold harmless the City, its agents, officers, and employees from and against any and all liability.

Also covered by this Section 4 is liability arising from, related to, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees that may be in combination with active or passive negligent acts or omissions of Cormorant, its employees, agents or officers, or any third party. Cormorant’s duty to defend, indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees.

Cormorant further agrees to pay any and all costs the City incurs to enforce the indemnity and defense provisions of this Section 4.

If the City reasonably determines that the Encroachment interferes with, impairs or otherwise impedes the City’s use of the ROW and any abutting private property, then Cormorant shall work with the City to determine a commercially feasible plan for the relocation of the Encroachment to a new encroachment area within the City’s public right(s)-of-way at Cormorant’s sole expense (the “Relocation Plan”). Cormorant shall include anyone with legal and/or financial interest in the Project in the preparation of the Relocation Plan. The Relocation Plan shall be prepared within sixty (60) days of the City’s written notice to Cormorant that relocation is reasonably required, and Cormorant shall commence relocation of the Encroachment within thirty (30) days of receiving all necessary permits and/or approvals. Cormorant shall complete the relocation of the Encroachment within three hundred and sixty-five (365) days of Cormorant’s receipt of all necessary permits and/or approvals. The City’s request to relocate the Encroachment shall not be arbitrary or without reason, and the City shall give as much notice as possible to

Cormorant in the event the City reasonably determines that the Encroachment must be relocated.

The City and Cormorant shall mutually agree to a new encroachment area within the City’s public rights-of-way as aforesaid, and the Parties shall enter into a replacement agreement approving such new encroachment area on substantially the same terms and conditions as agreed to herein.

If the Encroachment is located over or under a public facility within the ROW, Cormorant agrees to provide an alternate right-of-way on Cormorant-controlled property or assist the City in obtaining new right-of-way, as well as relocate said public facility to a new alignment, all without cost or expense to the City, whenever it is reasonably determined by the City that the public facility cannot be economically placed, replaced, or maintained due to the presence of the Encroachment.

All rights and obligations that were acquired by the City with respect to the ROW shall remain and continue in full force and effect and shall in no way be affected by this Agreement.

Cormorant shall maintain a policy of liability insurance with the City and its respective elected officials, officers, employees, agents, and representatives named as additional insureds, in an amount approved by the City. Such policy shall protect the City from any potential claims that may arise from the Encroachment.

The terms and conditions of any permit or approval required by the City in connection with the Project, including but not limited to any permit required pursuant to Chapter 12 of the City’s Municipal Code, shall be consistent with the terms and conditions of this Agreement. In the event that any permit or approval issued by the City in connection with the Project is inconsistent with this Agreement, this Agreement shall control.

This Agreement may be executed in one or more identical counterparts and all such counterparts together shall constitute a single instrument for the purpose of the effectiveness of this Agreement. This Agreement shall be recorded in the Official Records of the County of San Mateo, California.
(Signature Pages Follow)

(Signature Page to Encroachment Agreement)
IN WITNESS WHEREOF, the City has caused this Agreement to be executed by its duly authorized representative as of the Effective Date.

CITY:

City of Daly City,
a municipal corporation of the State of
California
Thomas J. Piccolotti, City Manager
ATTEST:

K. Annette Hipona, City Clerk
APPROVED AS TO FORM:

Rose Zimmerman, City Attorney

(Signature Page to Encroachment Agreement)
IN WITNESS WHEREOF, Cormorant has caused this Agreement to be executed by its duly authorized representative as of the Effective Date.

CORMORANT:

Cormorant Energy Storage, LLC,
a Delaware limited liability company
By:

Name:

Title:

ACKNOWLEDGEMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of _________________ )
County of _______________ )
On ____________________, before me, ____________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of __________________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

EXHIBIT A
Legal Description of Encroachment Area
(See Attached)

EXHIBIT B
Depiction of Encroachment Area
(See Attached)

EXHIBIT H

FORM OF EASEMENT AGREEMENT
[SEE PAGE THAT FOLLOWS]

IniƟal Study
Cormorant Energy Storage Project
In ConsultaƟon with
Prepared by
November 2024

Cormorant Energy Storage Project i Initial Study
City of Daly City November 2024
Table of Contents
Section 1.0 Introduction and Purpose........................................................................................... 1 Section 2.0 Project Information .................................................................................................... 3 Section 3.0 Project Description ..................................................................................................... 8 Section 4.0 Environmental Setting, Checklist, and Impact Discussion......................................... 17 Aesthetics........................................................................................................................... 18 Agriculture and Forestry Resources ................................................................................... 27 Air Quality .......................................................................................................................... 30 Biological Resources........................................................................................................... 44 Cultural Resources ............................................................................................................. 54 Energy ................................................................................................................................ 60 Geology and Soils............................................................................................................... 66 Greenhouse Gas Emissions ................................................................................................ 74 Hazards and Hazardous Materials...................................................................................... 83 Hydrology and Water Quality............................................................................................. 93 Land Use and Planning ..................................................................................................... 101 Mineral Resources............................................................................................................ 105 Noise ................................................................................................................................ 107 Population and Housing ................................................................................................... 120 Public Services.................................................................................................................. 122 Recreation........................................................................................................................ 127 Transportation ................................................................................................................. 129 Tribal Cultural Resources.................................................................................................. 134 Utilities and Service Systems............................................................................................ 137 Wildfire ............................................................................................................................ 145 Mandatory Findings of Significance.................................................................................. 146 Section 5.0 References.............................................................................................................. 149 Section 6.0 Lead Agency and Consultants................................................................................. 154 Section 7.0 Acronyms and Abbreviations.................................................................................. 156

Cormorant Energy Storage Project ii Initial Study
City of Daly City November 2024
Figures
Figure 2.8-1: Regional Map ................................................................................................................. 5 Figure 2.8-2: Vicinity Map ................................................................................................................... 6 Figure 2.8-3: Aerial Photograph and Surrounding Land Uses.............................................................. 7 Figure 3.2-1: Conceptual Site Plan..................................................................................................... 12 Figure 3.2-2: Conceptual Equipment Elevations................................................................................ 13 Figure 3.2-3: Conceptual Transmission Line Alignment 1.................................................................. 14 Figure 3.2-4: Conceptual Transmission Line Alignment 2/3 .............................................................. 15 Figure 4.1-1: Photo Locations............................................................................................................ 20 Figure 4.3-1: Location of Off-Site MEI ............................................................................................... 41 Figure 4.4-1: Biological Land Cover ................................................................................................... 47 Figure 4.13-1: Noise Measurement Locations................................................................................. 111 Photos
Photos 1 & 2 ................................................................................................................................. 21 Photos 3 & 4 ................................................................................................................................. 22 Photos 5 & 6 ................................................................................................................................. 23 Photos 7 & 8 ................................................................................................................................. 24 Tables
Table 4.3-1: Sources and Health Effects of Criteria Air Pollutants and Toxic Air Contaminants ........ 31 Table 4.3-2: BAAQMD Air Quality Significance Thresholds................................................................ 36 Table 4.3-3: BAAQMD Health Risks and Hazards Thresholds ............................................................ 36 Table 4.3-4: Construction Criteria Pollutant Emissions ..................................................................... 37 Table 4.3-5: Project Health Risk Impacts at the MEI.......................................................................... 42 Table 4.3-6: Unmitigated Cumulative Health Risk Impacts at the MEI .............................................. 42 Table 4.13-1: Summary of Short-Term Measurements (dBA) ......................................................... 110 Table 4.13-2: BESS and Substation Construction Noise Levels........................................................ 114 Table 4.13-3: Estimated Noise Levels of Proposed BESS Facility and Substation............................. 117 Table 4.13-4: Vibration Source Levels for Construction Equipment................................................ 118

Cormorant Energy Storage Project iii Initial Study
City of Daly City November 2024
Appendices
Appendix A: Construction Health Risk Assessment
Appendix B: Arborist Report
Appendix C: Biological Confirmation Memo
Appendix D: Phase I Environmental Site Assessment
Appendix E: Hazards Analysis Final Report
Appendix F: Noise and Vibration Assessment
All appendices are incorporated herein by reference.

Cormorant Energy Storage Project 1 Initial Study
City of Daly City November 2024
Section 1.0 Introduction and Purpose
Purpose of the Initial Study
The City of Daly City, as the Lead Agency, has prepared this Initial Study for the Cormorant Energy Storage project in compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines (California Code of Regulations §15000 et. seq.) and the regulations and policies of the City of City of Daly City, California.

The project proposes to construct a battery energy storage system (BESS), substation, and an underground transmission line along one of three alignments connecting to the substation to the Pacific Gas & Electric (PG&E) Martin Substation. This Initial Study evaluates the environmental impacts that might reasonably be anticipated to result from implementation of the proposed project.

Public Review Period
Publication of this Initial Study marks the beginning of a 30-day public review and comment period.

During this period, the Initial Study will be available to local, state, and federal agencies and to interested organizations and individuals for review. Written comments concerning the environmental review contained in this Initial Study during the 30-day public review period should be sent to:

Sam Fielding
City of Daly City, Planning Division
333 90th Street
Daly City, CA 94015
(650) 991-8156; [email protected]
Consideration of the Initial Study and Project
Following the conclusion of the public review period, the City of Daly City will consider the adoption of the Initial Study/Mitigated Negative Declaration (MND) for the project at a regularly scheduled meeting. The City shall consider the Initial Study/MND together with any comments received during the public review process. Upon adoption of the MND, the City may proceed with project approval actions.

Notice of Determination
If the project is approved, the City of Daly City will file a Notice of Determination (NOD), which will be available for public inspection and posted within 24 hours of receipt at the County Clerk’s Office

Cormorant Energy Storage Project 2 Initial Study
City of Daly City November 2024
for 30 days. The filing of the NOD starts a 30-day statute of limitations on court challenges to the approval under CEQA (CEQA Guidelines Section 15075(g)).

Cormorant Energy Storage Project 3 Initial Study
City of Daly City November 2024
Section 2.0 Project Information
Project Title
Cormorant Energy Storage Project (GP-11-22-015959, ZC-11-22-015960, UPR-11-22-015962, DR-11- 22-015961)
Lead Agency Contact
Sam Fielding
City of Daly City, Planning Division
333 90th Street
Daly City, CA 94015
(650) 991-8156; [email protected]
Project Applicant
Aron Branam
Arevon Energy
8800 N Gainey Center Dr Suite 250
Scottsdale, AZ 85258
(713) 899-5193
Project Location
The project is located at 2150 Geneva Avenue in the City of Daly City. Regional, vicinity, and aerial maps of the project site are shown on Figure 2.8-1, Figure 2.8-2, and Figure 2.8-3, respectively.

Assessor’s Parcel Number
Assessor’s Parcel Number (APN): 005-050-020
General Plan Designation and Zoning District
General Plan Designation: Commercial Retail and Office (C-RO) Existing Zoning Designation: Light Commercial (C1)
Habitat Plan Designation
The project site is not located within the San Bruno Mountain Habitat Conservation Plan limits.

Cormorant Energy Storage Project 4 Initial Study
City of Daly City November 2024
Project-Related Discretionary Approvals, Agreements,
and Permits
This Initial Study/MND provides decision-makers in the City of Daly City (the Lead Agency), responsible agencies, and the general public with relevant environmental information to use in considering the proposed project. It is intended that this Initial Study be used for discretionary approvals necessary to implement the project, as proposed. These discretionary actions may include, but are not limited to, the following:
• General Plan Amendment
• Rezoning
• Design Review Permit
• Use Permit

San
Francisco
Oakland
Berkeley
Richmond
Mill Valley
Daly City
South San
Francisco
Millbrae
Pacifica
Half Moon
Bay
San Mateo
Redwood
City
San
Francisco
Oakland
Berkeley
Richmond
Mill Valley
Daly City
South San
Francisco
Millbrae
Pacifica
Half Moon
Bay
San Mateo
Redwood
City
San
Francisco
Bay
San
Francisco
Bay
Pacific Ocean c Ocean
1 1
1 1
35 35
35 101
101
101
280
280
280
24 13
82 84
92 92
80 80
580
580
880
Project Site
0 35 1 11 Miles
Pacific Ocean
Monterey Bay
San José
Fremont
Oakland
San Francisco
Santa Cruz
Mountain View
Morgan Hill
San José
Sunnyvale unnyvale
San Fremont San Mateo
Redwood City edwood City
Livermore ivermore
Oakland
San Francisco
Santa Cruz
Mountain View
Morgan Hill
Project Site roject Site
CuperƟno
REGIONAL MAP FIGURE 2.8-1

Geneva Avenue
Santos Street
Parque Drive
Velasco Avenue
Schwerin Street
Oriente Street
Accacia Street
Rio Verde Street
MarƟn Street
Alexis Circle
Ba y Ridge Drive
Carter Street
MarƟn Trail
Steve Courter Way
Farrier Place
Blythdale Avenue
Sunrise Way
Sawyer Street
Argonaut Avenue
Sunnydale Avenue
Kelloch Avenue
Brookdale Avenue
Saddleback Drive
Stoneriddge Lane
Lapham Way
Canyon Drive
South Hill Boulevard
BalƟmore Way
Mira Vista Court
Oakridge Drive
Southridge Way
Dalerose Court
Ardendale Drive
Alta Vista Way
Geneva Avenue
Santos Street
ParqueDrive
Velasco Avenue
Schwerin Street
Oriente Street
Accacia Street
Rio Verde Street
MarƟn Street
Alexis Circle
Ba y Ridge Drive
Carter Street
MarƟnTrail
Steve
CourterWay
Farrier Place
BlythdaleAvenue
Sunrise Way
Sawyer Street
Argonaut Avenue
Sunnydale Avenue
Kelloch Avenue
Brookdale Avenue
Saddleback Drive
StoneriddgeLane
Lapham Way
Canyon Drive
South HillBoulevard
BalƟmore Way
Mira Vista Court
Oakridge
Drive
Southridge Way
Dalerose Court
Ardendale Drive
Alta Vista Way
Midway DriveMidway Drive
San Francisco
Daly City
San Francisco
Daly City
Base Map: ESRI, ArcGIS
0 100 600 800 1,200 Feet
Project Site
City Limit
VICINITY MAP FIGURE 2.8-2

Public Facility
Public Facility
Hotel
ResidenƟal
ResidenƟal
Commercial
Public Facility
Light
Industrial
Geneva Avenue
Cow Palace
Santos Street
Carrizal Street
Pasadena Street
CasƟllo Street
Pueblo Street Rio Verde Street
Carter Street
Steve Courter Way Farrier Place
MarƟn Trail
Saddleback Driv e
Oak Court
Geneva Avenue
Cow Palace
Santos Street
Carrizal Street
Pasadena Street
CasƟllo Street
Pueblo Street Rio Verde Street
Carter Street
Steve Courter Way Farrier Place
MarƟn Trail
Saddleback Driv
e
Oak Court
Photo Date: Apr. 2022
0 50 300 400 600 Feet
Project Boundary
Aerial Source: Google Earth Pro, Mar. 23, 2023.

AERIAL PHOTOGRAPH AND SURROUNDING LAND USES FIGURE 2.8-3

Cormorant Energy Storage Project 8 Initial Study
City of Daly City November 2024
Section 3.0 Project Description
Project Location
The proposed project is located in the northeastern portion of the City of Daly City. The project at 2150 Geneva Avenue (APN 005-050-020) has two main components: 1) the approximately 6.9-acre BESS facility with associated 0.71-acre substation, and 2) an underground 115 kilovolts (kV) transmission line to the PG&E Martin Substation. The transmission line would travel underground for up to 1.2 miles along one of three alignments to the PG&E Martin Substation, as described below.

3.1.1 Existing Site Conditions
The BESS and substation site at 2150 Geneva Avenue is designated in the General Plan as Commercial Retail and Office (C-RO) and zoned Light Commercial (C1). The project site is bordered by the Bay Club South San Francisco building and Cow Palace parking lot to the north, the Cow Palace to the east, open space to the south, and Carter Street and residential condos to the west.

The project site is currently vacant and used for vehicle and building material storage. Trees and shrubs surround the project site on all sides.

The proposed transmission line would run along one of three potential alignments. Alignment 1 would run though the northern end of the Cow Palace, which is designated in the General Plan as Public Facility (PF) and zoned Heavy Commercial (C2), and then turn east and run along Ottilia Street, a two-lane roadway through a residential neighborhood (General Plan-designated and zoned residential), until it reaches the PG&E Martin Substation. Alignment 2 and 3 would run south along Carter Street and then turn east onto Martin Street. Alignment 2 would turn north along Schwerin Street, while Alignment 3 would turn north along Oriente Street and then east on Ottilia Street.

Carter Street, Martin Street, Schwerin Street, and Oriente Street are all two-lane roadways through residential neighborhoods (General Plan-designated and zoned residential).

Project Description
The project involves construction of a 250 megawatt (MW) BESS, substation, and underground transmission line, which will provide a service to the regional electric grid by receiving energy (charging) from the PG&E electric transmission system, storing energy on site, and then later delivering energy (discharging) back to the point of interconnection. At project completion, the

11.5-acre parcel would be developed with the BESS facility on 6.9 acres, substation on 0.71-acre, and the remainder of the site used for a driveway, access road, and landscaping.

Cormorant Energy Storage Project 9 Initial Study
City of Daly City November 2024

3.2.1 Project Components
General Plan Amendment and Rezoning
The project site has a General Plan land use designation of Commercial Retail and Office (C-RO) and is zoned Light Commercial (C1). In order to develop the proposed project, the project proposes to amend the General Plan land use designation to Industrial (I) and rezone the site to Heavy Commercial (C2). Rezoning the site would allow the project to develop the BESS and substation with a use permit.

Battery Energy Storage System (BESS)
The proposed project would construct a BESS facility to house lithium-iron phosphate batteries that would store excess energy generated by the electrical grid during the day (see Figure 3.2-1). No power would be generated on-site. The batteries would be housed in approximately nine-foot-tall purpose-built enclosures (see Figure 3.2-2), version Megapack 2 XL produced by Tesla, and mounted on racks that are seismically anchored to the ground and constructed of non-flammable aluminum and steel. In addition to the batteries, inverters and medium-voltage transformers would be installed outside the battery enclosures. Once fully operational, the BESS would be able to store up to 250 MW of electricity from the PG&E Martin Substation.

Chemicals are contained within the individual sealed battery cells. Risk of exposure occurs only if the battery is mechanically or electrically abused or altered. The batteries are not considered hazardous as the electrolyte is non-toxic and does not contain cobalt or other toxic elements.

A fire protection system would be installed as part of the BESS and include built-in failsafe and cooling systems designed to prevent thermal runaway and the spread of fire.

Intermittently throughout the lifetime of the project, there may be a requirement to provide additional energy storage augmentation, which will result in several trips to the site to deliver and install additional battery augmentation units over a period of several weeks. All grading and foundations necessary to accommodate these augmentation units will be completed with the initial construction of the project, such that installation of the augmentation units will require no additional site preparation or disturbance.

Substation
Open rack, air insulated switchgear, a power transformer, and additional electrical equipment would be installed adjacent to the BESS facility within a 0.71-acre substation (see Figure 3.2-1). The substation is needed to transform the electricity voltage for storage and use consistent with PG&E requirements. The substation would operate 24 hours per day and 365 days per year, similar to other area electrical substations. Substation electrical equipment would be housed in National Electrical Manufacturers Association (NEMA) enclosures and screened from view. Substation

Cormorant Energy Storage Project 10 Initial Study
City of Daly City November 2024
electrical cabling would be installed underground. The substation equipment would be approximately 65 feet in height (see Figure 3.2-2).

Transmission Line
The BESS and substation would connect to the PG&E Martin Substation via a 115 kV transmission line. The transmission line would follow one of three potential alignments to the PG&E Martin Substation. All three alignments would be entirely underground.

Alignment 1 is approximately 0.7-mile long and would exit the project site near the northeast property line and travel through the Cow Palace parking lot. The transmission line would be located along the northern border of the Cow Palace and then turn south along the eastern border of the Cow Palace property for approximately 600 feet. The transmission line would then exit the Cow Palace property at Ottilia Street and ultimately connect into the PG&E Martin Substation on Schwerin Street approximately 150 feet south of Ottilia Street (see Figure 3.2-3).

Alignment 2 is approximately 1.1 miles long and would exit the project site via the existing driveway along Carter Street. The transmission line would then travel south along Carter Street until it turns east along Martin Street. The transmission line would then travel east along Martin Street until it turns north along Schwerin Street for approximately 1,200 feet to ultimately connect into the PG&E Martin Substation at the same location as Alignment 1 (see Figure 3.2-4).

Alignment 3 is approximately 1.2 miles long and would follow the same initial route as Alignment 2, except Alignment 3 would turn north along Oriente Street instead of Schwerin Street. The transmission line would extend north along Oriente Street for approximately 1,300 feet until it turns east onto Ottilia Street and ultimately connects into the PG&E Martin Substation at the same location as Alignment 1 (see Figure 3.2-4).

In order to connect the transmission line to the Martin Substation, all three alignments would connect to a Point of Change of Ownership (POCO) pole, up to 120 feet tall. PG&E identified the following improvements to be completed by PG&E within the existing Martin Substation area:
• Install a line relay package, voltage transformers, dead-end, underground riser, line switch, and fiber terminations.
• Complete breaker and a half (BAAH) bay, install two circuit breakers. • Construction of a 115 kV transmission line from the POCO pole to the termination point within the substation (0.25-mile above ground and 0.05-mile underground).

3.2.2 Site Access and Circulation
Access to the BESS and substation would be provided via an existing driveway from Carter Street, at the northwest corner of the project site. An eight-foot-tall concrete wall with wrought iron climbing deterrent would surround the project site, including a sliding security gate at the entry driveway. A

Cormorant Energy Storage Project 11 Initial Study
City of Daly City November 2024
26-foot-wide public access road and associated retaining wall would be constructed on the west side of the security fencing (see Figure 3.2-1).

3.2.3 Operation and Staffing
The BESS would be monitored remotely with maintenance staff visiting the site periodically throughout the year. No permanent employees would occupy the project site. Remote access to battery status, meters, schedules, and other data would be available to off-site personnel.

In the event of an unforeseen emergency, including but not limited to a change in battery temperature, the monitoring system would immediately notify local operations and maintenance personnel in the vicinity. If necessary, a temporary shutdown of the facility would be automatically triggered until the issue is diagnosed and resolved.

3.2.4 Stormwater Treatment and Landscaping
The project proposes a stormwater treatment area in the northeast corner of the BESS facility. The project would also plant approximately 95 trees on the site at the entry driveway, along the west side of the access road, and along the southerly fence line of the BESS facility and substation.

3.2.5 Construction
Battery Energy Storage System and Substation
Construction of the proposed BESS and substation would take approximately 10 months and require site grading and excavation to a depth of up to approximately five feet across the majority of the site to allow installation of the underground electrical equipment. A small portion of the site will be excavated up to 15 feet to accommodate the main power transformer foundation. Overall, construction of the project would require 26,400 cubic yards (cy) of soil export. At the end of the project’s operational term, the project may be decommissioned and all BESS and substation infrastructure removed. Decommissioning of the project site would take approximately one month.

Aboveground equipment that would be removed includes battery containers/enclosures, inverters, transformers, substation steel bus work and enclosures, electrical wiring, etc. Equipment would be de-energized prior to removal, salvaged (where possible), placed in appropriate shipping containers, and secured in a truck transport trailer for shipment off site to be recycled or disposed of at an appropriately licensed disposal facility. Site infrastructure would be removed, including the fences and the concrete pads that may support the battery containers/enclosures, inverters, transformers, and related equipment.

LP LP LP LP LP LP

LP LP LP LP LP LP

LP LP LP LP LP
LP LP
PL PL

PL PL PL PL PL PL
Xref .\Existing\Daly CXP001.dwg
LEGEND:

PL PL PROPERTY LINE
8'-6" PRE-CAST

CONCRETE WALL
W/ 1'-6" CLIMBING DETERRENT

FIRE HYDRANT
ABBREVIATION LIST:

BESS - BATTERY ENERGY STORAGE SYSTEM

MV - MEDIUM VOLTAGE

POI - POINT OF INTERCONNECTION

TYP - TYPICAL

BOL - BEGINING OF LIFE

EOL - END OF LIFE

ENERGY STORAGE SYSTEM DESCRIPTION
NAMEPLATE PHASE 1 188 MW / 752 MWH
NAMEPLATE PHASE 2 62 MW / 248 MWH
NAMEPLATE TOTAL 250 MW / 1000 MWH

SLIDING GATE
8' TUBULAR METAL
FENCE

BESS MATERIAL LIST
NUMBER OF BATTERY ENCLOSURES (BOL) 212
NUMBER OF BATTERY ENCLOSURES (EOL) 284
NUMBER OF MV TRANSFORMERS (BOL) 53
NUMBER OF MV TRANSFORMERS (EOL) 71

BESS AREA EXCLUDING
SUBSTATION (6.92 ACRES)

PURPOSE BUILT

ENCLOSURE (TYP)

MV TRANSFORMER (TYP)

MAIN POWER
TRANSFORMER 34.5kV/ 115 kV

SUBSTATION AREA
(0.71 ACRES)

SUBSTATION

CONTROL ENCLOSURE

PARCEL AREA
(11.5 ACRES)
35' CONSTRUCTABILITY SETBACK

STORMWATER

TREATMENT BASIN

CARTER STREET

EXISTING DRIVEWAY
26'

ON-SITE

MAINTENANCE
AREA
6" PRE-CAST CONCRETE CURB (TYP) SITE SIGNAGE
5' MAINTENANCE

AREA CLEARANCE
57'
70'
34'
3'
8'
1'-6"'
110' 30'
44'
60'

FUTURE EXPANSION

UNIT (TYP)

AREA RESERVED FOR

FUTURE WORK BY OTHERS

PROPOSED UNDERGROUND

GEN-TIE ROUTE

FUTURE EXPANSION

MAIN POWER TRANSFORMER

CRUSH ROCK TO BE USED AS

BASE FOR PROJECT SITE
OUTSIDE OF ACCESS ROADS.
15'
15'
4' R20'
101'-10"
14'
22'-6"
23'-8"
42'-3"
114'-11"
158'-3"

PRIMARY ENTRANCE GATE
Source: Burns & McDonnell Engineering Co, Inc., August 9, 2024. 0 25 50 100 Feet
CONCEPTUAL SITE PLAN FIGURE 3.2-1

MATCHLINE

MATCHLINE
8'-6" TALL PRECAST
CONC WALL W/ 1'-6"

CLIMBING DETERRENT (TYP)

WALL DETAILS

HIDDEN FOR CLARITY
8'-6" TALL PRECAST
CONC WALL W/ 1'-6"

CLIMBING DETERRENT (TYP)

WALL DETAILS

HIDDEN FOR CLARITY

PURPOSE BUILT

BATTERY ENCLOSURES

TOP OF EQUIPMENT
EL 9'-2" INCL 6"

FOUNDATION TYP

PURPOSE BUILT

BATTERY ENCLOSURES

TOP OF EQUIPMENT
EL 9'-2" INCL 6"

FOUNDATION TYP
25'-5" TALL MAIN
POWER

TRANSFORMER
W/ 12" SLAB
FUTURE 25'-5" TALL

MAIN POWER

TRANSFORMER
W/ 12" SLAB

SURVEILLANCE CAMERA TYP
EL 12' 6"

IR DETECTOR TYP
EL 12' 6"

SURVEILLANCE

CAMERA TYP
IR DETECTOR TYP EL 12' 6"
EL 12' 6"
65'-0" TALL

SUBSTATION POLES
TYP
58'-0" TALL

H-FRAME W/
12" SLAB
Source: Burns & McDonnell Engineering Co., Inc., June 7, 2024.

VIEW LOOKING SOUTH

VIEW LOOKING SOUTH
166’-0”
158’-0”
150’-0”
142’-0”
134’-0”
126’-0”
166’-0”
158’-0”
150’-0”
142’-0”
134’-0”
126’-0”
CONCEPTUAL EQUIPMENT ELEVATIONS FIGURE 3.2-2

0 150 300 600 Feet
LEGEND

CORMORANT BESS

POCO LOCATION/RISER POLE

BESS UGT TERMINATION

COW PALACE PROPERTY LINE
ROUTE ALIGNMENT 1
PRELIMINARY ROUTE ALIGNMENT 1
115KV OH TO MARTIN SUBSTATION

LENGTH FROM BESS SUB

TO CITY ROW
LENGTH WITHIN CITY ROW 1080’
3 1
2610’
VAULTS

CABLE POLES
CONCEPTUAL TRANSMISSION LINE ALIGNMENT 1 FIGURE 3.2-3

0 150 300 600 Feet
LEGEND

CORMORANT BESS

POCO LOCATION/RISER POLE

BESS UGT TERMINATION
ROUTE ALIGNMENT 2
ROUTE ALIGNMENT 3

PRELIMINARY ROUTE ALIGNMENTS
115KV OH TO MARTIN SUBSTATION

LENGTH VAULTS RISER POLE
5880’ 4 1
6190’
ALIGNMENT 2
ALIGNMENT 3 4 1
CONCEPTUAL TRANSMISSION LINE ALIGNMENT 2/3 FIGURE 3.2-4

Cormorant Energy Storage Project 16 Initial Study
City of Daly City November 2024
Transmission Line
Construction of the transmission line would take approximately three months and occur primarily within the City right-of-way (ROW) in developed areas, or on state lands (within parking areas and on the perimeter of the Cow Palace property). The work area would be located within the roadway ROW and/or franchise position, and a permit application will be submitted to the City under separate cover.1 The transmission line would exit the proposed substation and would immediately transition to underground before exiting the project site via one of the three alignments described above and shown in Figure 3.2-3 and Figure 3.2-4. A three-foot-wide by six-foot-deep trench would be dug to accommodate the transmission line and occur within an approximately 20-foot-wide work area. Once the transmission lines reach the PG&E Martin Substation east of the project site, the transmission line would transition to above-ground via a POCO pole.2 The connection will cross overhead into the Martin Substation and continue overhead for approximately 0.25-mile and then return underground for the remainder of the routing into the substation. The POCO pole and overhead lines within the Martin Substation would require a seven-foot-wide by 30-foot-deep foundation to be excavated. The construction of the PG&E portion of the transmission line is anticipated to take up to eight months to complete and would occur entirely within the PG&E Martin Substation property.

Tree Removal
Construction of the BESS and substation would require the removal of 326 trees. Construction of the transmission line along Alignment 1 would require the removal of seven trees as the transmission line exits the BESS site and enters the Cow Palace property to the northeast.

Construction of the transmission line along Alignments 2 and 3 would not require the removal or pruning of trees.
1 Franchise positions are contracts with public/private utility companies granting them the right to use the public ROWs for installation, maintenance, and repair of their facilities, typically underground pipes and conduits or above-ground cables and lights on poles.
2 Point of change of ownership (POCO)

Cormorant Energy Storage Project 17 Initial Study
City of Daly City November 2024
Section 4.0 Environmental Setting, Checklist,
and Impact Discussion
This section presents the discussion of impacts related to the following environmental subjects in their respective subsections:

4.1 Aesthetics

4.2 Agriculture and Forestry Resources

4.3 Air Quality

4.4 Biological Resources

4.5 Cultural Resources

4.6 Energy

4.7 Geology and Soils

4.8 Greenhouse Gas Emissions

4.9 Hazards and Hazardous Materials

4.10 Hydrology and Water Quality

4.11 Land Use and Planning

4.12 Mineral Resources

4.13 Noise

4.14 Population and Housing

4.15 Public Services

4.16 Recreation

4.17 Transportation

4.18 Tribal Cultural Resources

4.19 Utilities and Service Systems

4.20 Wildfire

4.21 Mandatory Findings of Significance
The discussion for each environmental subject includes the following subsections:
• Environmental Setting – This subsection 1) provides a brief overview of relevant plans, policies, and regulations that compose the regulatory framework for the project and 2) describes the existing, physical environmental conditions at the project site and in the surrounding area, as relevant.
• Impact Discussion – This subsection 1) includes the recommended checklist questions from Appendix G of the CEQA Guidelines to assess impacts and 2) discusses the project’s impact on the environmental subject as related to the checklist questions. For significant impacts, feasible mitigation measures are identified. “Mitigation measures” are measures that will minimize, avoid, or eliminate a significant impact (CEQA Guidelines Section 15370). Each impact is numbered to correspond to the checklist question being answered. For example, Impact BIO-1 answers the first checklist question in the Biological Resources section.

Mitigation measures are also numbered to correspond to the impact they address. For example, MM BIO-1.2 refers to the second mitigation measure for the first impact in the Biological Resources section.

Cormorant Energy Storage Project 18 Initial Study
City of Daly City November 2024
Aesthetics

4.1.1 Environmental Setting
Regulatory Framework
State
Scenic Highways Program
The California Scenic Highway Program is managed by the California Department of Transportation (Caltrans). The program is intended to protect and enhance the natural scenic beauty of California highways and adjacent corridors through special conservation treatment. State laws governing the Scenic Highway Program are found in the Streets and Highway Code, Sections 260 through 263.

There are three eligible State scenic highways within the City of Daly City, although none are officially designated; Skyline Boulevard (State Route (SR) 35), Cabrillo Highway (SR 1), and the Junipero Serra Freeway (I-280).

Local
Daly City General Plan
The Daly City 2030 General Plan (General Plan) includes policies and tasks for the purpose of avoiding or mitigating impacts resulting from development projects within the City. The following policies and task are specific to aesthetics and are applicable to the proposed project.

General Plan Policies and Tasks
Policy/Task Description
Policy LU-16 Regulate the size, quantity, and location of signs to maintain and enhance the visual appearance of Daly City.

Policy RME-20 Recognize the physical differences between different parts of the City and regulate land uses within these areas accordingly.

Task RME-20.4 Incorporate design features in new development that reflect the character of the neighborhood, to ensure that new construction is compatible with existing development.

Policy LU-17 Ensure that private development is responsible for providing any on-or off-site improvements related to and/or mitigating the impacts it causes.

Existing Conditions
The project site, located at 2150 Geneva Avenue, is currently vacant and used as a construction staging area and for vehicle storage. Numerous mature trees are present around the perimeter of the project site.

Cormorant Energy Storage Project 19 Initial Study
City of Daly City November 2024
An underground transmission line would run from the proposed substation at 2150 Geneva Avenue to the PG&E Martin Substation to the east along one of three alignments. Alignment 1 would travel through the parking lot and along the northern and eastern borders of the Cow Palace before turning east along Ottilia Street. Alignments 2 and 3 would travel along Carter Street and Martin Street before turning north towards the PG&E Martin Substation along Schwerin Street or Oriente Street. Carter Street, Martin Street, Ottilia Street, Schwerin Street, and Oriente Street are two-lane roadways. Views of the project site can be seen in Figure 4.1-1 and Photos 1 through 8 below.

Surrounding Land Uses
The surrounding area contains a mix of land uses and building types, including multi-family homes to the west, single-family homes to the south, and commercial uses to the north (Bay Club) and to the east (Cow Palace). As a result, there is no dominant visual character in the project area. The multi-family residential buildings to the west are four-stories with painted wood siding. Singlefamily homes to the south are two-stories with a mix of wood and stucco siding. The commercial use to the north is the Bay Club sports building, which is a large concrete warehouse building and associated surface parking. The commercial use to the east is the Cow Palace, a concrete event center with associated surface parking and warehouses.

Scenic Vistas and Resources
San Bruno Mountain reaches approximately 1,000 feet in elevation and is visible from various locations throughout the City, including the project site, which is about 1.5 miles north of the San Bruno Mountain summit. Views of the coastline or San Francisco Bay are not visible from the project site. The project site is not visible from any state or County designated scenic highways or roadways.

Project Boundary
Photo Points
Source: Dudek, September 22, 2022.
0 100 50 200 Feet
PHOTO LOCATIONS FIGURE 4.1-1

Photo 1 - Photo Point 1, facing east: View of site from access on Carter Street.

Photo 2 - Photo Point 2, facing east: View of northern perimeter of site parcel.

Source: Dudek, October 2022.

PHOTOS 1 & 2

Photo 3 - Photo Point 2, facing south: View of western side of site parcel.

Photo 4 - Photo Point 3, facing south: View of eastern side of site parcel.

Source: Dudek, October 2022.

PHOTOS 3 & 4

Photo 5 - Photo Point 3, facing west: View toward center of site parcel.

Photo 6 - Photo Point 4, facing north: View toward northern end of site parcel.

Source: Dudek, October 2022.

PHOTOS 5 & 6

Photo 7 - Photo Point 4, facing northeast: View toward center of site parcel.

Photo 8 - Photo Point 5, facing northwest: View toward center of site parcel.

Source: Dudek, October 2022.

PHOTOS 7 & 8

Cormorant Energy Storage Project 25 Initial Study
City of Daly City November 2024

4.1.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Except as provided in Public Resources Code Section
21099, would the project:
a) Have a substantial adverse effect on a scenic
vista?
b) Substantially damage scenic resources,
including, but not limited to, trees, rock
outcroppings, and historic buildings within a
state scenic highway?
c) In non-urbanized areas, substantially degrade
the existing visual character or quality of public
views of the site and its surroundings?3If the
project is in an urbanized area, would the
project conflict with applicable zoning and other
regulations governing scenic quality?
d) Create a new source of substantial light or glare
which would adversely affect day or nighttime
views in the area?
a) Would the project have a substantial adverse effect on a scenic vista? The City’s General Plan does not identify any State or County designated scenic highways located in Daly City. However, several roadways have been recognized as having scenic quality. The General Plan identifies John Daly Boulevard and Lake Merced Boulevard as scenic corridors; however, these roadways are not located within the vicinity of the project site. The County has also recognized Guadalupe Canyon Parkway as having scenic quality which indicates that it has the potential to be designated as an official scenic highway by the State or County. Elements of the roadway that contribute to its scenic quality include views of San Bruno Mountain and the San Francisco Bay.

The project proposes the construction of a BESS and substation on-site. The BESS enclosures would have a low profile at a height of approximately nine feet and the substation equipment would have a maximum height of 65 feet. In addition, the project site is downhill from the surrounding residential uses and shielded from view due to the elevation changes and mature trees surrounding the project site. The removal of trees within the project site would not impact mature trees around the perimeter that provide screening of the proposed facility. All three proposed transmission line alignments would be entirely underground and not visible from surrounding viewpoints. The proposed POCO pole in the PG&E Martin Substation would be up to 120 feet tall and the overhead poles within the substation would be approximately 100 feet tall; however, these poles would be of similar height and style to existing poles within the PG&E Martin Substation and surrounding area. 3 Public views are those that are experienced from publicly accessible vantage points.

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For these reasons, the project would not have an adverse effect on a scenic vista. (Less than Significant Impact)
b) Would the project substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? As previously noted, SR 35, SR 1, and I-280 are the three eligible State scenic highways within the City of Daly City. The project site is not visible from any of these highways; therefore, the project would not damage scenic resources within a state scenic highway. (Less than Significant Impact) c) Would the project conflict with applicable zoning and other regulations governing scenic quality?
The project site is partially visible from Carter Street at the project driveway; however, the project site is mostly obscured from view from all directions by tree cover and sloping topography.

Although tree removal would occur within the project site, mature trees on the site perimeter would provide screening from adjacent roadways. In addition, the proposed POCO and PG&E poles would be of similar height and style to existing poles within the PG&E Martin Substation and surrounding area. While the proposed project would result in a change in visual character at the site, the project would be consistent with the urban and commercial uses in the project area. Due to the limited public viewshed of the project site, and the character of the surrounding area, the proposed project would have a less than significant impact on the visual character and quality of the site. (Less than Significant Impact)
d) Would the project create a new source of substantial light or glare which would adversely affect day or nighttime views in the area?
The light and glare that exists within the project area is typical of its urban setting. Nighttime lighting impacts are considered significant when they interfere with or intrude into sensitive adjacent uses, including neighboring residences. Light pollution is typically related to the use of high voltage light fixtures with inadequate shields and improper positioning or orientation. The project proposes permanent motion-sensitive, directional security lights to provide adequate illumination around the substation area and points of ingress/egress. All lighting would be shielded and directed downward to minimize the potential for glare or spillover onto adjacent properties. The project would also comply with the Design Review process outlined in the City’s Zoning Ordinance, which requires that general architectural considerations, such as exterior lighting, are compatible with the design and character of other adjacent buildings. For these reasons, the proposed project would not result in significant light and glare impacts. (Less than Significant Impact)

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Agriculture and Forestry Resources

4.2.1 Environmental Setting
Regulatory Framework
State
Farmland Mapping and Monitoring Program
The California Department of Conservation’s Farmland Mapping and Monitoring Program (FMMP) assesses the location, quality, and quantity of agricultural land and conversion of these lands over time. Agricultural land is rated according to soil quality and irrigation status. The best quality land is identified as Prime Farmland. In CEQA analyses, the FMMP classifications and published county maps are used, in part, to identify whether agricultural resources that could be affected are present on-site or in the project area.4
California Land Conservation Act
The California Land Conservation Act (Williamson Act) enables local governments to enter into contracts with private landowners to restrict parcels of land to agricultural or related open space uses. In return, landowners receive lower property tax assessments. In CEQA analyses, identification of properties that are under a Williamson Act contract is used to also identify sites that may contain agricultural resources or are zoned for agricultural uses.5 Fire and Resource Assessment Program
The California Department of Forestry and Fire Protection (CAL FIRE) identifies forest land, timberland, and lands zoned for timberland production that can (or do) support forestry resources.6 Programs such as CAL FIRE’s Fire and Resource Assessment Program and are used to identify whether forest land, timberland, or timberland production areas that could be affected are located on or adjacent to a project site.7
4 California Department of Conservation. “Farmland Mapping and Monitoring Program.” Accessed April 3, 2023. http://www.conservation.ca.gov/dlrp/fmmp/Pages/Index.aspx. 5 California Department of Conservation. “Williamson Act.” Accessed April 3, 2023. http://www.conservation.ca.gov/dlrp/lca.
6 Forest Land is land that can support 10 percent native tree cover and allows for management of forest resources (California Public Resources Code Section 12220(g)); Timberland is land not owned by the federal government or designated as experimental forest land that is available for, and capable of, growing trees (California Public Resources Code Section 4526); and Timberland Production is land used for growing and harvesting timber and compatible uses (Government Code Section 51104(g)).
7 California Department of Forestry and Fire Protection. “Fire and Resource Assessment Program.” Accessed April 3, 2023. http://frap.fire.ca.gov/.

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Existing Conditions
According to the San Mateo County Important Farmland 2018 Map, the project site is designated as Other Land. Other land is defined as land not included in any other mapping category, such as vacant and nonagricultural land surrounded on all sides by urban development and greater than 40 acres is mapped as other land.8
The project site is not zoned or used for agricultural purposes, nor it is the subject of a Williamson Act contract.9 The project site is located in an urban area of Daly City and is not used for agricultural or timber production.

4.2.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
a) Convert Prime Farmland, Unique Farmland, or
Farmland of Statewide Importance (Farmland),
as shown on the maps prepared pursuant to the
Farmland Mapping and Monitoring Program of
the California Resources Agency, to nonagricultural use? b) Conflict with existing zoning for agricultural use,
or a Williamson Act contract?
c) Conflict with existing zoning for, or cause
rezoning of, forest land (as defined in Public
Resources Code Section 12220(g)), timberland
(as defined by Public Resources Code Section
4526), or timberland zoned Timberland
Production (as defined by Government Code
Section 51104(g))?
d) Result in a loss of forest land or conversion of
forest land to non-forest use?
e) Involve other changes in the existing
environment which, due to their location or
nature, could result in conversion of Farmland
to non-agricultural use or conversion of forest
land to non-forest use?
8 California Department of Conservation. San Mateo County Important Farmland Map 2018. September 2019. 9 San Mateo County. “Williamson Act Parcels” Accessed April 3, 2023. https://data.smcgov.org/HousingDevelopment/Williamson-Act-Parcels/sq6e-7j5j.

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a) Would the project convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance, as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? The project site is designated Other Land in the San Mateo County Important Farmland 2018 Map and is not considered a significant agricultural resource under CEQA Section 21060.1(a); therefore, the project would not convert farmland to a non-agricultural use. (No Impact) b) Would the project conflict with existing zoning for agricultural use, or a Williamson Act contract?
The project site is not designated for agricultural uses in the General Plan; nor is it zoned or used as farmland or for other agricultural purposes. The project site is not under a Williamson Act contract.

Thus, the proposed project would not conflict with existing zoning for agricultural use, or a Williamson Act contract and there would be no impact. (No Impact) c) Would the project conflict with existing zoning for, or cause rezoning of, forest land, timberland, or timberland zoned Timberland Production?
The project site and surrounding area are not zoned forest land, timberland, or Timberland Production; therefore, the proposed project would not conflict with existing zoning for, or cause rezoning of, forest land, timberland, or timberland zoned Timberland Production. Thus, there would be no impact. (No Impact)
d) Would the project result in a loss of forest land or conversion of forest land to non-forest use?
The project site and surrounding area are not forest land. The proposed project would not result in a loss of forest land or conversion of forest land to non-forest use and there would be no impact. (No Impact)
e) Would the project involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use?
The proposed project does not involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use. The project, therefore, would have no impact to agriculture or forest land. (No Impact)

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Air Quality
The following discussion is based in part on a Construction Health Risk Assessment prepared by Illingworth & Rodkin, Inc. in September 2024. This document is included as Appendix A to this Initial Study.

4.3.1 Environmental Setting
Background Information
Criteria Pollutants
Criteria air pollutants are pollutants that have established federal or state standards for outdoor concentrations to protect public health. Pursuant to the federal and state Clean Air Act, the United States Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) have established and enforce the National Ambient Air Quality Standards (NAAQS) and California Ambient Air Quality Standards (CAAQS), respectively. The NAAQS and CAAQS address the following criteria air pollutants: ozone (O3), nitrogen dioxide (NO2), carbon monoxide (CO), particulate matter with a diameter of 10 microns or less (PM10), particulate matter with a diameter of 2.5 micros or less (PM2.5), sulfur dioxide (SO2), and lead. The CAAQS also includes visibility reducing particles, sulfates, hydrogen sulfide, and vinyl chloride.

Toxic Air Contaminants
Toxic air contaminants (TACs) include airborne chemicals that are known to have short- and longterm adverse health effects. TACs are found in ambient air, especially in urban areas, and are caused by industry, agriculture, diesel fuel combustion, and commercial operations (e.g., dry cleaners). TACs are typically found in low concentrations, even near their source (e.g., diesel particulate matter [DPM] near a freeway). Unlike criteria air pollutants, which have a regional impact, TACs are highly localized and regulated at the individual emissions source level.

DPM is the predominant TAC in urban air and is estimated to represent about three-quarters of the cancer risk from TACs. Diesel exhaust is a complex mixture of gases, vapors, and fine particles.

Medium- and heavy-duty diesel trucks represent the bulk of DPM emissions from California highways. The majority of DPM is small enough to be inhaled into the lungs. Most inhaled particles are subsequently exhaled, but some deposit on the lung surface or are deposited in the deepest regions of the lungs (most susceptible to injury).10 Chemicals in diesel exhaust, such as benzene and formaldehyde, are also TACs identified by the CARB.

An overview of the sources of criteria pollutants and TACs, as well as their associated health effects, is provided in Table 4.3-1.
10 California Air Resources Board. “Overview: Diesel Exhaust and Health.” Accessed July 5, 2023. https://ww2.arb.ca.gov/resources/overview-diesel-exhaust-and-health.

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Table 4.3-1: Sources and Health Effects of Criteria Air Pollutants and Toxic Air Contaminants
Pollutants Description and Sources Primary Effects
Ozone (O3) O3 is a secondary criteria air pollutant that is the result of a photochemical (sunlight) reaction between reactive
organic gases (ROG) and nitrogen oxides (NOx). Pollutants emitted by motor vehicles, power plants, industrial
boilers, refineries, and chemical plants are the common source for this reaction. High O3 levels are caused by the cumulative emissions of ROG and NOX. These precursor
pollutants react under certain meteorological conditions to form high O3 levels. Commons sources of ROG and NOx
are vehicles, industrial plants, and consumer products
• Aggravation of respiratory
and cardiovascular diseases
• Irritation of eyes
• Cardiopulmonary function
impairment
Nitrogen
Dioxide (NO2)
NO2 is a reactive gas that combines with nitric oxide (NO) to form NOx. NO2 the byproduct of fuel combustion with
common sources of NO2 being emissions from cars, trucks, buses, power plants, and off-road equipment. Sources of NO2 include motor vehicle exhaust, high temperature
stationary combustion, atmospheric reactions
• Aggravation of respiratory
illness
• Reduced visibility
Carbon
Monoxide (CO)
CO is a colorless, odorless, and toxic gas that is the
product of incomplete combustion of carbon-containing
substances (e.g., when something is burned). Common
outdoor sources of CO include mobile vehicles (passenger cars and trucks) and machinery that burn fossil fuels.
• Interferes with oxygen
delivery to the body’s organ
due to binding with the
hemoglobin in the blood
• Fatigue, headaches,
confusion, and dizziness
Fine
Particulate
Matter (PM2.5)
and Coarse
Particulate
Matter (PM10)
Particulate Matter is any material that is emitted as liquid or solid particles or a gaseous material, such as dust, soot, aerosols, and fumes. PM10 and PM2.5 are both small
enough particulates to be inhaled into the human lungs, and PM2.5 is small enough to deposit into the lungs, which poses an increased health risk compared to PM10. Typical sources of particular matter include stationary
combustion of solid fuels, construction activities, vehicles, industrial processes, and atmospheric chemical reactions. • Reduced lung function,
especially in children
• Aggravation of respiratory
and cardiorespiratory
diseases
• Increased cough and chest
discomfort
• Reduced visibility
Sulfur Dioxide
(SO2)
SO2 is a pungent and colorless gaseous pollutant that is part of the sulfur oxides (SOx) group and is the pollutant of greatest concern in the SOx group. SOx can react with
other compounds in the atmosphere to form small
particles. These particles contribute to particulate matter pollution. SO2 is primarily formed from fossil fuel
combustion at power plants and other industrial facilities.

Sources of SO2 include motor vehicles, locomotives, ships, and off-road diesel equipment that are operated with
fuels that contain high levels of sulfur. Industrial
processes, such as natural gas and petroleum extraction, oil refining, and metal processing.
• Aggravation of respiratory
illness
• Respiratory irritation such
as wheezing, shortness of
breath and chest tightness
• Increased incidence of
pulmonary symptoms and
disease, decreased
pulmonary function

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Pollutants Description and Sources Primary Effects
Lead Lead is a naturally occurring element that can be found in all parts of the environment including the air, soil, and water. As an air pollutant, lead is present in small
particles. The most common historic source of lead
exposure was the past use of leaded gasoline in motor
vehicles. The exhaust resulting from use of leaded
gasoline would release lead emissions into the air. Now, major sources of lead in the air are from ore and metals processing plants and piston-engine aircraft operating on leaded aviation fuel. Other sources are waste incinerators, utilities, and lead-acid battery manufacturers. The highest air concentrations of lead are usually found near lead
smelters.
• Adversely affect the
nervous system, kidney
function, immune system,
reproductive and
developmental systems and
the cardiovascular system
Toxic Air
Contaminants
(TACs)
TACs include certain air pollutants known to increase the risk of cancer and/or other serious health effects that range from eye irritation, respiratory issues, and
neurological damage. Sources of TAC include, but are not limited to, cars and trucks, especially diesel-fueled;
industrial sources, such as chrome platers; dry cleaners and service stations; building materials and products
• Cancer
• Chronic eye, lung, or
skin irritation
• Neurological and
reproductive disorders
Sensitive Receptors
Some groups of people are more affected by air pollution than others. CARB has identified the following persons who are most likely to be affected by air pollution: children under 16, the elderly over 65, athletes, and people with cardiovascular and chronic respiratory diseases. These groups are classified as sensitive receptors. Locations that may contain a high concentration of these sensitive population groups include residential areas, hospitals, daycare facilities, elder care facilities, and elementary schools.

Regulatory Framework
Federal and State
Clean Air Act
At the federal level, the EPA is responsible for overseeing implementation of the Clean Air Act and its subsequent amendments. The federal Clean Air Act requires the EPA to set national ambient air quality standards for the six common criteria pollutants (discussed previously): PM, O3, CO, SO2, NO2, and lead.11
CARB is the state agency that regulates mobile sources throughout the state and oversees implementation of the state air quality laws and regulations, including the California Clean Air Act. 11 NOx is the group of nitrogen compounds (NO2 and nitric oxide [NO]) that typically represents NO2 emissions because NO2 emissions contribute the majority of NOx exhaust emissions emitted from fuel combustion.

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The EPA and the CARB have adopted ambient air quality standards establishing permissible levels of these pollutants to protect public health and the climate. Violations of ambient air quality standards are based on air pollutant monitoring data and are determined for each air pollutant. Attainment status for a pollutant means that a given air district meets the standard set by the EPA and/or CARB.

Diesel Risk Reduction Plan
To address the issue of diesel emissions in the state, CARB developed the Risk Reduction Plan to Reduce Particulate Matter Emissions from Diesel-Fueled Engines and Vehicles. In addition to requiring more stringent emission standards for new on-road and off-road mobile sources and stationary diesel-fueled engines to reduce particulate matter emissions by 90 percent, this plan involves application of emission control strategies to existing diesel vehicles and equipment to reduce DPM (in addition to other pollutants). Implementation of this plan, in conjunction with stringent federal and CARB-adopted emission limits for diesel fueled vehicles and equipment (including off-road equipment), will significantly reduce emissions of DPM and NOX.

Regional
2017 Clean Air Plan
The Bay Area Air Quality Management District (BAAQMD) is the agency primarily responsible for assuring that the federal and state ambient air quality standards are maintained in the San Francisco Bay Area. Regional air quality management districts, such as BAAQMD, must prepare air quality plans specifying how federal and state air quality standards will be met. BAAQMD’s most recently adopted plan is the Bay Area 2017 Clean Air Plan. The 2017 Clean Air Plan focuses on the following two related BAAQMD goals and how to achieve them:
• Protect air quality and health at the regional and local scale by attaining all state and national air quality standards and eliminating disparities among Bay Area communities in cancer health risk from TAC; and
• Protect the climate by reducing Bay Area GHG emissions 40 percent below 1990 levels by 2040 and 80 percent below 1990 levels by 2050.12
CEQA Air Quality Guidelines
The BAAQMD CEQA Air Quality Guidelines are intended to serve as a guide for those who prepare or evaluate air quality impact analyses for projects and plans in the San Francisco Bay Area.

Jurisdictions in the San Francisco Bay Area Air Basin utilize the thresholds and methodology for assessing air quality impacts developed by BAAQMD within their CEQA Air Quality Guidelines. The guidelines include information on legal requirements, BAAQMD rules, methods of analyzing impacts, and recommended mitigation measures. The latest CEQA Air Quality Guidelines are the 2022 CEQA Air Quality Guidelines adopted in April 2023 by the Air District Board of Directors. 12 Bay Area Air Quality Management District. Final 2017 Clean Air Plan. April 19, 2017. Page 12.

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Local
Daly City General Plan
The General Plan includes policies and tasks for the purpose of avoiding or mitigating impacts resulting from development projects within the City. The following policies and tasks are specific to air quality and are applicable to the proposed project.

General Plan Policies and Tasks
Policy/Task Description
Policy RME-5 Assess projected air emissions from new development and associated construction and demolition activities in conformance with the BAAQMD CEQA Guidelines, and relative to state and federal standards.

Task RME-5.3 Consider cumulative air quality impacts consistent with the region's Clean Air Plan and State law.

Task RME-5.4 Require the preparation of a Transportation Systems Management plan for new development that has been determined to contribute to a reduction in location air quality.

Task RME-5.5 Consult with BAAQMD to identify stationary and mobile TAC sources and determine the need for and requirements of a health risk assessment for proposed developments.

Policy RME-6 Minimize exposure of residents to objectionable smoke and odors by proactively regulating potential sources.

Existing Conditions
The project is located in San Mateo County, which is in the San Francisco Bay Area Air Basin. The project area’s proximity to both the Pacific Ocean and the San Francisco Bay has a moderating influence on the climate. The Bay Area is considered a nonattainment area for ground-level O3 and PM2.5 under both the federal Clean Air Act and state Clean Air Act. The area is also considered in nonattainment for PM10 under the state act, but not the federal act. The area has attained both state and federal ambient air quality standards for CO. As part of an effort to attain and maintain ambient air quality standards for O3 and PM10, BAAQMD has established thresholds of significance for these air pollutants and their precursors. These thresholds are for O3 precursor pollutants (ROG and NOX), PM10, and PM2.5, and apply to both construction period and operational period impacts.

The closest sensitive receptors to the project are the residences along Martin Street, Oriente Street, Schwerin Street, and Ottilia Street that are approximately 30 feet from where the future transmission line would be placed underground. The nearest sensitive receptors to the proposed BESS and substation are existing residences located approximately 700 feet to the west and 800 feet to the southwest, as measured from the center of the BESS and substation site.

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4.3.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
a) Conflict with or obstruct implementation of the
applicable air quality plan?
b) Result in a cumulatively considerable net
increase of any criteria pollutant for which the
project region is non-attainment under an
applicable federal or state ambient air quality
standard?
c) Expose sensitive receptors to substantial
pollutant concentrations?
d) Result in other emissions (such as those leading
to odors) adversely affecting a substantial
number of people?
Note: Where available, the significance criteria established by the applicable air quality management district or air pollution control district may be relied upon to make the determinations.

As discussed in CEQA Guidelines Section 15064(b), the determination of whether a project may have a significant effect on the environment calls for judgment on the part of the lead agency and must be based to the extent possible on scientific and factual data. The City of Daly City has considered the air quality thresholds updated by BAAQMD in April 2023 and regards these thresholds to be based on the best information available for the San Francisco Bay Area Air Basin and conservative in terms of the assessment of health effects associated with TACs and PM2.5. The BAAQMD CEQA Air Quality thresholds for criteria air pollutants and fugitive dust used in this analysis are identified in Table 4.3-2. Table 4.3-3 below lists the BAAQMD health risk and hazards thresholds for single-source and cumulative sources.

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Table 4.3-2: BAAQMD Air Quality Significance Thresholds Criteria Air
Pollutant
Construction Thresholds* Operation Thresholds Operation Thresholds Average Daily Emissions
(pounds/day)
Average Daily Emissions
(pounds/day)
Annual Average
Emissions (tons/year)
ROG and NOx 54 54 10
PM10 82 (exhaust) 82 15
PM2.5 54 (exhaust) 54 10
CO Not Applicable 9.0 ppm (eight-hour) or 20.0 ppm (one-hour) Fugitive Dust Dust Control Measures/Best
Management Practices Not Applicable
Note: * The Air District recommends for construction projects that require less than one year to complete, lead agencies should annualize impacts over the scope of actual days that peak impacts would occur rather than over the full year. Additionally, for phased projects that result in concurrent construction and operational emissions, construction-related exhaust emissions should be combined with operational emissions for all phases where construction and operations overlap.

Source: Bay Area Air Quality Management District. 2022 California Environmental Quality Act Air Quality Guidelines. April 2023. Pages 3-5 and 3-6.

Table 4.3-3: BAAQMD Health Risks and Hazards Thresholds Health Risk Single Source Combined Cumulative Sources
Cancer Risk 10 per one million 100 per one million
Non-Cancer Hazard Index 1.0 10.0
Annual PM2.5 Concentration 0.3 µg/m3 0.8 μg/m3(average) Notes: µg/m3 = micrograms per cubic meter; PM2.5= fine particulate matter with an aerodynamic resistance diameter of 2.5 micrometers or less
Thresholds are applicable to construction and operational activities.

Source: Bay Area Air Quality Management District. 2022 California Environmental Quality Act Air Quality Guidelines. April 2023. Pages 3-5 and 3-6.
a) Would the project conflict with or obstruct implementation of the applicable air quality plan?
BAAQMD recommends that the agency approving a project where an air quality plan consistency determination is required analyze the project with respect to the following questions. • Does the project support the primary goals of the CAP? • Does the project include applicable control measures from the CAP? • Does the project disrupt or hinder the implementation of any CAP control measures?

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The proposed project supports the primary goals of the 2017 CAP. As discussed below, project construction and operation would not exceed the BAAQMD thresholds for ozone precursor pollutant (ROG, NOx) and exhaust (PM10, PM2.5) emissions during the construction period with implementation of mitigation measures MM AIR-1.1 and MM AIR-1.2.

The 2017 CAP also contains control strategy BL2, intended to decarbonize buildings. The proposed project would store clean energy (wind and solar) so that peak-hour dependence of natural gas or coal-fired electricity could be lessened, fulfilling control strategy BL2. For these reasons, the proposed project would not inhibit BAAQMD or partner agencies from attaining state and federal air quality standards. Therefore, the project would not result in a significant impact related to consistency with the 2017 CAP. (Less than Significant Impact with Mitigation Incorporated) Construction Period Emissions
The California Air Pollution Control Officers Association’s California Emissions Estimator Model (CalEEMod) computes annual emissions for construction of projects based on the project type, size, and acreage. CalEEMod provides emission estimates for both on-site and off-site construction activities. On-site activities are primarily made up of construction equipment emissions, while offsite activities include worker and truck traffic. The CalEEMod modeling of project-generated construction emissions was based on the applicant-provided schedule and equipment usage assumptions for construction of the BESS, substation, and transmission line. It is estimated that the project would be built over a period of approximately 20 months. The decommissioning phase of the project was also included and is anticipated to occur in the year 2051 and take one month to complete.

Table 4.3-4 below shows project’s estimated average daily construction emissions of ROG, NOx, PM10 exhaust, and PM2.5 exhaust.

Table 4.3-4: Construction Criteria Pollutant Emissions
Year ROG NOx PM10 Exhaust PM2.5 Exhaust
Average Daily (pounds/day)*
Construction
2025 (220 construction workdays) 6.14 55.83 2.26 2.08
2026 (184 construction workdays) 1.12 10.39 0.38 0.35
Decommissioning
2051 (23 construction workdays) 3.26 30.77 1.26 1.17
Significance Threshold (pounds per
day) 54 54 82 54
Significant? No Yes No No
Note: *Average daily emissions calculated by dividing the construction emissions by the number of construction workdays.

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As shown in Table 4.3-4 above, the project would generate significant levels of average daily NOx emissions during construction of the project. Additionally, construction activities, particularly during site preparation and grading, would temporarily generate fugitive dust in the form of PM10 and PM2.5. Sources of fugitive dust would include disturbed soils at the construction site and trucks carrying uncovered loads of soils. Unless properly controlled, vehicles leaving the site would deposit mud on local streets, which could be an additional source of airborne dust after it dries. The BAAQMD CEQA Air Quality Guidelines consider these impacts to be less than significant if best management practices (BMPs) are implemented to reduce these emissions.

Impact AIR-1: Construction of the project would generate fugitive dust emissions and result in significant NOx emissions. (Significant Impact)
Mitigation Measures: The project shall implement the following mitigation measures to reduce fugitive dust and NOx emissions to a less than significant level:

MM AIR-1.1: BAAQMD Best Management Practices: The project shall implement the Bay Area Air Quality Management District’s (BAAQMD’s) recommended best management practices (BMPs) and additional measures to reduce construction equipment exhaust emissions. These measures shall include the following:
• All exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) shall be watered two times per day. • All haul trucks transporting soil, sand, or other loose material off-site shall be covered.
• All visible mud or dirt track-out onto adjacent public roads shall be removed using wet power vacuum street sweepers at least once per day.

The use of dry power sweeping is prohibited.
• All vehicle speeds on unpaved roads shall be limited to 15 miles per hour (mph).
• All roadways, driveways, and sidewalks to be paved shall be completed as soon as practicable. Building pads shall be laid as soon as practicable after grading unless seeding or soil binders are used.
• All excavation, grading, and/or demolition activities shall be suspended when average wind speeds exceed 20 mph.
• All trucks and equipment, including their tires, shall be washed off prior to leaving the site.
• Unpaved roads providing access to site located 100 feet of further from a paved road shall be treated with a 6- to 12-inch layer of compacted layer of wood chips, mulch, or gravel.
• Publicly visible signs shall be posted with the telephone number and name of the person to contact at the lead agency regarding dust complaints. This person shall respond and take corrective action within

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48 hours. The Air District’s General Air Pollution Complaints number shall be visible to ensure compliance with applicable regulations. • Limit the simultaneous occurrence of excavation, grading, and grounddisturbing construction activities. • Install wind breaks (e.g., trees, fences) on the windward side(s) of actively disturbed areas of construction. Wind breaks should have at maximum 50 percent air porosity.
• Plant vegetative ground cover (e.g., fast-germinating native grass seed) in disturbed areas as soon as possible and water appropriately until vegetation is established.
• Install sandbags or other erosion control measures to prevent silt runoff to public roadways from sites with a slope greater than one percent. • Minimize the amount of excavated material or waste materials stored at the site.
• Hydroseed or apply non-toxic soil stabilizers to construction areas, including previously graded areas, that are inactive for at least 10 calendar days.

MM AIR-1.2: Selection of Construction Equipment: All construction equipment larger than 25 horsepower used at the site for more than two continuous days or 20 hours total shall meet U.S. Environmental Protection Agency (EPA) Tier 4 emission standards for NOx.

MM AIR-1.1 and MM AIR-1.2 would reduce NOx emissions by 12 percent, to 49.07 pounds/day, resulting in NOx emissions below the BAAQMD significance threshold. Therefore, with implementation of MM AIR-1.1 and MM AIR-1.2, project construction emissions would be reduced to a less than significant level. (Less than Significant Impact with Mitigation Incorporated) Operational Period Emissions
The proposed BESS batteries would be housed in purpose-built enclosures located outside. The project would be remotely monitored throughout the day and night, with no permanent full-time or part-time employees commuting to the site on a daily basis. Operational emissions would be generated primarily by electricity use (security lighting and remote monitoring equipment) and occasional maintenance vehicles accessing the project site. The BAAQMD CEQA Air Quality Guidelines contain screening thresholds for operational criteria air pollutants. If a project is below the screening threshold, it is assumed to have less than significant operational criteria air pollutant emissions. The BAAQMD screening threshold for the proposed project (general heavy industry) is

1.009 million square feet.
13 The BESS and substation would be approximately 436,000 square feet, 13 Bay Area Air Quality Management District. CEQA Air Quality Guidelines. April 2022. Page 4-4.

Cormorant Energy Storage Project 40 Initial Study
City of Daly City November 2024
which is below the BAAQMD screening threshold; therefore, the project would have less than significant operational period emissions. (Less than Significant Impact) b) Would the project result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard?
As discussed in Section 4.3.1.3 Existing Conditions, the Bay Area is considered a non-attainment area for ground-level O3, PM2.5, and PM10 under federal and/or state acts. As part of an effort to attain and maintain ambient air quality standards for O3 and PM10, BAAQMD has established thresholds of significance for these air pollutants and their precursors. These thresholds are for O3 precursor pollutants (ROG and NOX), PM10, and PM2.5, and apply to both construction period and operational period impacts. The project’s construction and operational period air pollutant emissions were estimated and discussed under Impact AIR-1. As discussed under Impact AIR-1, the project’s construction period emissions would be below the BAAQMD thresholds of significance with implementation of MM AIR-1.1 and MM AIR-1.2, and the project’s operational period emissions are screened out (i.e., assumed to be less than significant); therefore, the project would have a less than significant increase in criteria pollutants. (Less than Significant Impact with Mitigation Incorporated)
c) Would the project expose sensitive receptors to substantial pollutant concentrations? Community Health Risk
Projects may result in impacts due to increased community health risk by introducing new sources of pollutant emissions during either construction or operation, or by introducing new sensitive receptors, including residents, to TAC emissions from existing sources.

Project operation is not expected to result in localized air pollutant emissions or TACs, due to the low vehicle traffic due to remote monitoring, and the absence of any stationary emissions sources, such as generators.

Construction Health Risk
Construction equipment and associated heavy-duty truck traffic generates diesel exhaust, which is a known TAC. The primary community risk impact issues associated with construction emissions are cancer risk and exposure to PM2.5. Community risk impacts are addressed by predicting increased lifetime cancer risk, the increase in annual PM2.5 concentrations and computing the Hazard Index (HI) for non-cancer health risks. The maximum modeled annual DPM and PM2.5 concentrations, which includes both the DPM and fugitive PM2.5 concentrations, were identified at nearby sensitive receptors, including the maximally exposed individual (MEI). The construction off-site MEI is shown on Figure 4.3-1.

Source: Illingworth & Rodkin, Inc., April 29, 2024.

Carter Street
MarƟn Trail
Steve Courter Way
Alexis Circle
Mar Ɵn
St
Schwerin Street
Orente Street
Geneva Avenue Partridge Street
Saddleback Drive
Carter Street
MarƟn Trail
Steve Courter Way
Alexis Circle
Mar
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S
t
Schwerin Street
Orente Street
Geneva Avenue Partridge Street
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i
v
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Legend
MEI
Receptors Alignment 2
Alignment 3
Alignment 1
Project Site
LOCATION OF OFF-SITE MEI FIGURE 4.3-1

Cormorant Energy Storage Project 42 Initial Study
City of Daly City November 2024
Table 4.3-5 summarizes the maximum cancer risks, PM2.5 concentrations, and HI for project related construction activities (including all three transmission line alignments) affecting the off-site MEI.

The unmitigated maximum increased cancer risk, PM2.5 concentration, and HI do not exceed the BAAQMD single-source thresholds of greater than 10 per million, 0.3 µg/m3, and 1.0, respectively.

The health risk at other nearby sensitive receptors would be lower than at the MEI. (Less than Significant Impact)
Table 4.3-5: Project Health Risk Impacts at the MEI
Source
Cancer Risk
(per million)
Annual PM2.5
(µg/m3)
Hazard
Index
Project Site Construction with Alignment 1 9.16 0.09 0.01 Project Site Construction with Alignment 2 9.75 0.09 0.01 Project Site Construction with Alignment 3 9.72 0.09 0.01 BAAQMD Single-Source Threshold 10 0.3 1.0
Significant? No No No
Cumulative Community Health Risk
The geographic area for cumulative health risk impacts to sensitive receptors is within 1,000 feet of the project site. This distance is recommended by BAAQMD because adverse effects are the greatest within this distance. A review of the project area indicated existing sources of TACs within 1,000 feet of the project site with the potential to affect the MEI that include Geneva Avenue (highvolume roadway) and one stationary source (diesel generator). Table 4.3-6, below, summarizes the cumulative community risk at the off-site MEI from project construction with Alignment 2, vehicles traveling on Geneva Avenue, and stationary source emissions. Cumulative health risks for Alignments 1 and 3 would be less than those shown in Table 4.3-6. The results show cumulative community risk at the off-site MEI would not exceed the cumulative-source threshold for cancer risk, PM2.5, or HI. (Less than Significant Impact)
Table 4.3-6: Unmitigated Cumulative Health Risk Impacts at the MEI Source Cancer Risk
(per million)
Annual PM2.5
(µg/m3)
Hazard
Index
Project Construction with Alignment 2 9.75 0.09 0.01
New Cingular Wireless PCS LLC dba AT&T Mobility (Facility ID #200387, Generator) 0.25 <0.01 <0.01
Geneva Avenue 3.25 0.09 0.01
Cumulative Total 13.25 <0.19 <0.03
BAAQMD Cumulative Source Threshold 100 0.8 10.0
Significant? No No No

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Health Effects from Project Criteria Air Pollutant Emissions In a 2018 decision (Sierra Club v. County of Fresno), the state Supreme Court determined CEQA requires that when a project’s criteria air pollutant emissions would exceed applicable thresholds and contribute a cumulatively considerable contribution to a significant cumulative regional criteria pollutant impact, the potential for the project’s emissions to affect human health in the air basin must be disclosed. State and federal ambient air quality standards are health-based standards, and exceedances of those standards result in continued unhealthy levels of air pollutants. As stated in the 2022 BAAQMD CEQA Air Quality Guidelines, air pollution by its nature is largely a cumulative impact. No single project is sufficient in size, by itself, to result in nonattainment of ambient air quality standards. Instead, a project’s individual emissions contribute to existing cumulatively significant adverse air quality impacts. In developing thresholds of significance for air pollutants, BAAQMD considered the emission levels for which a project’s individual emissions would be cumulatively considerable. If a project has a less than significant impact for criteria pollutants, it is assumed to have no adverse health effect.

As discussed under Impact AIR-1, the project would not generate significant amounts of criteria air pollutant emissions during construction or operation with mitigation incorporated. For this reason, the project’s less than significant criteria air pollution emissions is concluded to have no adverse health effect. (Less than Significant Impact with Mitigation Incorporated) d) Would the project result in other emissions (such as those leading to odors) adversely affecting a substantial number of people?
The project would generate localized emissions of diesel exhaust during construction equipment operation and truck activity. These emissions may be noticeable by adjacent receptors; however, the odors from these emissions would be localized and temporary and would not affect a substantial number of people. Additionally, the project would implement BAAQMD BMPs as part of mitigation measure MM AIR-1.1 (see Impact AIR-1), which includes measures that would further reduce odor generated during construction. For these reasons, implementation of the proposed project would not result in significant odors affecting a substantial number of people. (Less than Significant Impact)

Cormorant Energy Storage Project 44 Initial Study
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Biological Resources
The following discussion is based in part on an Arborist Report prepared by Dudek in June 2024, and a Biological Resources Constraints Memo prepared by WRA, Inc. in September 2024. These documents are included as Appendix B and Appendix C to this Initial Study, respectively.

4.4.1 Environmental Setting
Regulatory Framework
Federal and State
Endangered Species Act
Individual plant and animal species listed as rare, threatened, or endangered under state and federal Endangered Species Acts are considered special-status species. Federal and state endangered species legislation has provided the United States Fish and Wildlife Service (USFWS) and the California Department of Fish and Wildlife (CDFW) with a mechanism for conserving and protecting plant and animal species of limited distribution and/or low or declining populations.

Permits may be required from both the USFWS and CDFW if activities associated with a proposed project would result in the take of a species listed as threatened or endangered. To “take” a listed species, as defined by the State of California, is “to hunt, pursue, catch, capture, or kill, or attempt to hunt, pursue, catch, capture, or kill” these species. Take is more broadly defined by the federal Endangered Species Act to include harm of a listed species.

In addition to species listed under state and federal Endangered Species Acts, Sections 15380(b) and (c) of the CEQA Guidelines provide that all potential rare or sensitive species, or habitats capable of supporting rare species, must be considered as part of the environmental review process. These may include plant species listed by the California Native Plant Society and CDFW-listed Species of Special Concern.

Migratory Bird Treaty Act
The federal Migratory Bird Treaty Act (MBTA) prohibits killing, capture, possession, or trade of migratory birds except in accordance with regulations prescribed by the Secretary of the Interior.

Hunting and poaching are also prohibited. This includes direct and indirect acts, except for harassment and habitat modification, which are not included unless they result in direct loss of birds, nests, or eggs. The CDFW also protects migratory and nesting birds under California Fish and Game Code Sections 3503, 3503.5, and 3800. The CDFW defines taking as causing abandonment and/or loss of reproductive efforts through disturbance.

Sensitive Habitat Regulations
Wetland and riparian habitats are considered sensitive habitats under CEQA. They are also afforded protection under applicable federal, state, and local regulations, and are generally subject to

Cormorant Energy Storage Project 45 Initial Study
City of Daly City November 2024
regulation by the United States Army Corps of Engineers (USACE), Regional Water Quality Control Board (RWQCB), CDFW, and/or the USFWS under provisions of the federal Clean Water Act (e.g., Sections 303, 304, 404) and State of California Porter-Cologne Water Quality Control Act.

Fish and Game Code Section 1602
Streambeds and banks, as well as associated riparian habitat, are regulated by the CDFW per Section 1602 of the Fish and Game Code. Work within the bed or banks of a stream or the adjacent riparian habitat requires a Streambed Alteration Agreement from the CDFW.

Regional
San Bruno Mountain Habitat Conservation Plan
The San Bruno Area Habitat Conservation Plan (HCP) was executed as an Agreement in November 1982 with the US Fish and Wildlife Service, California Department of Fish and Game, County of San Mateo, the cities of Brisbane, Daly City and South San Francisco, and several private property owners. The HCP was created to provide for the indefinite perpetuation of the Mission blue butterfly and to protect habitat of the other Species of Concern. It includes the establishment of public ownership of sufficient habitat area to support the species as well as funding for the ongoing maintenance of the habitat. Funding is provided by limited development that was excluded from such habitat area and devoted to urban uses, including, among others, residential, community service, commercial and recreational uses.

Given that the San Bruno Mountain encompasses approximately 3,600 acres, with various ownerships and within various cities, the HCP presents a single unifying and coordinating document to provide protection, enhancement and funding for the entire San Bruno Mountain ecological community. The HCP provides for the perpetuation of conserved habitat areas through eradication of exotic species; re-vegetation with grassland species; effective yearly monitoring of the species of concern to control reintroduction of exotics; and patrol of the area to discourage destructive human activities.

Portions of three of the four HCP planning areas are located within the jurisdiction of Daly City (Saddle, Radio Ridge, and Guadalupe Hills). Within those areas, all designated development has been completed including Point Pacific, Village in the Park, South Hills Estates, Linda Vista, and Bay Ridge. All of this development resulted in a net gain of available habitat either through dedication, easements, or on-site restoration. Furthermore, all of these projects continue to contribute to a trust fund that is used to maintain and monitor the habitat in perpetuity.

The majority of the project site is approximately 0.2-mile north of the San Bruno HCP boundary; however, the end point of the proposed transmission line, within the PG&E Martin Substation, is located within the San Bruno HCP boundary.

Cormorant Energy Storage Project 46 Initial Study
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Local
Daly City General Plan
The General Plan includes policies and tasks for the purpose of avoiding or mitigating impacts resulting from development projects within the City. The following policies are specific to biological resources and are applicable to the proposed project.

General Plan Policies and Tasks
Policy/Task Description
Policy LU-17: Ensure that private development is responsible for providing any on- or off-site improvements related to and/or mitigating the impacts it causes.

Policy LU-18: Development activities shall not be allowed to significantly disrupt the natural or urban environment and all reasonable measures shall be taken to identify and prevent or mitigate potentially significant effects.

Policy RME-16: The City shall continue to recognize the importance of the San Bruno Mountain Habitat Conservation Plan (HCP), uphold the integrity of the concepts behind the plan, and respect the agreements that serve to implement it.

Daly City Municipal Code
Chapter 12.40 – Urban Forestry of the Daly City Municipal Code provides regulations to optimize the use of trees and other landscaping within the city. This chapter requires plans submitted to the City for the construction, repair, or alteration of any building, housing, or structure to include provisions for sufficient guards or protectors to prevent injury to any existing publicly owned trees, shrubs, flowers, or vines. It also imposes conditions regarding the displacement of public trees, where a comparable size tree shall be planted or a fee is paid to the City to cover the cost of replacing a removed tree.

Existing Conditions
The project site is located within an urbanized area of Daly City and consists mostly of developed land, including buildings, paved and concrete areas, landscaped areas, bare dirt, and gravel. Small portions of the project site, located east and south of the proposed BESS and substation and east of the Cow Palace along the proposed transmission line, contain ruderal areas of non-native plant species. These ruderal areas are mostly comprised of non-native herbs such as Cretan mallow (Malva multiflora), ripgut brome (Bromus diandrus), Italian thistle (Carduus pycnocephalus), fennel (Foeniculum vulgare), Bermuda buttercup (Oxalis pes-caprae), rattail fescue (Festuca myuros), bird’s-foot trefoil (Lotus corniculatus), fumitory (Fumaria sp.), purple pampas grass (Cortaderia jubata), Harding grass (Phalaris aquatica), cotoneaster (Cotoneaster sp.), French broom (Genista monspessulana), and gorse (Ulex europaeus). Eucalyptus stands are located along the project site boundaries surrounding the proposed BESS and substation. The overstory of these stands are comprised of blue gum eucalyptus (Eucalyptus globulus), with occasional Monterey pine (Pinus radiata). A map showing the different biological land cover types is shown in Figure 4.4-1 below.

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Cormorant Energy Storage Project 48 Initial Study
City of Daly City November 2024
Sensitive Natural Communities
No riparian, native grassland, valley oak woodland, or other sensitive natural communities are present within the project site. As documented in Appendix C, there are no rare or threatened plants on the project site; therefore, the project site does not meet CDFW’s definition of a sensitive natural community with special status under federal and state law (refer to Section 4.4.1.1 Regulatory Framework).

Special-Status Species
Special-status species are plants and animals that are legally protected under the Federal Endangered Species Act (FESA), California Endangered Species Act (CESA), or other regulations, and species that are considered sufficiently rare by the scientific community to qualify for such listing.

For purposes of this analysis, special-status plant species include the following:
• Listed under FESA as threatened, endangered, proposed threatened, proposed endangered, or a candidate species.
• Listed under CESA as threatened, endangered, rare, or a candidate species. • Listed by the CNPS as California Rare Plant Rank (CRPR) 1A, 1B, 2, 3, or 4.

For purposes of this analysis, special-status wildlife species include the following:
• Listed under FESA as threatened, endangered, proposed threatened, proposed endangered, or a candidate species.
• Listed under CESA as threatened, endangered, or a candidate threatened or endangered species.
• Designated by the CDFW as a California species of special concern. • Listed in the California Fish and Game Code as fully protected species (fully protected birds are provided in Section 3511, mammals in Section 4700, reptiles and amphibians in Section 5050, and fish in Section 5515).

Special-Status Plants
No special-status plant species were observed on the project site during surveys conducted by WRA. Based on a review of resource databases, 66 special-status plant species have been documented in the vicinity of the project site; however, all are unlikely or have no potential to occur on the project site due to lack of suitable conditions (i.e., soil conditions, topography, unique pH, associated natural communities, low levels of disturbance).

Special-Status Wildlife
No special-status wildlife species were observed during surveys conducted by WRA. Based on a review of resource databases, 32 special-status wildlife species have been documented in the vicinity of the project site; however, most of the special-status wildlife species are excluded from

Cormorant Energy Storage Project 49 Initial Study
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the project site due to lack of habitat features (i.e., tidal march, old growth redwood or fir forest, grassland, sandy beaches, and specific plant hosts).

Bird nests of migratory bird species are protected under federal and state law (refer to Section

4.4.1.1 Regulatory Framework). No evidence of bird nests was observed during the aforementioned site visits, but suitable nesting habitat exists in the trees located along the project site perimeter.

There are no recorded occurrences of any special-status bat species within the project site and surrounding vicinity. However, the eucalyptus trees surrounding the project site could be used by bats for roosting.

4.4.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
a) Have a substantial adverse effect, either directly
or through habitat modifications, on any species
identified as a candidate, sensitive, or special
status species in local or regional plans, policies,
or regulations, or by the California Department
of Fish and Wildlife (CDFW) or United States Fish
and Wildlife Service (USFWS)?
b) Have a substantial adverse effect on any riparian
habitat or other sensitive natural community
identified in local or regional plans, policies,
regulations, or by the CDFW or USFWS?
c) Have a substantial adverse effect on state or
federally protected wetlands (including, but not
limited to, marsh, vernal pool, coastal, etc.)
through direct removal, filling, hydrological
interruption, or other means?
d) Interfere substantially with the movement of
any native resident or migratory fish or wildlife
species or with established native resident or
migratory wildlife corridors, impede the use of
native wildlife nursery sites?
e) Conflict with any local policies or ordinances
protecting biological resources, such as a tree
preservation policy or ordinance?
f) Conflict with the provisions of an adopted
Habitat Conservation Plan, Natural Community
Conservation Plan, or other approved local,
regional, or state habitat conservation plan?

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a) Would the project have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the CDFW or USFWS? As discussed in Section 4.4.1.2 Existing Conditions above, there are no known occurrences of special-status plants or wildlife within the project site. However, trees and buildings present on-site may provide suitable nesting and roosting habitat for protected and/or special-status birds and bats. The potential impacts of the project on these species are discussed below.

Nesting Birds
As previously noted, trees located within and along the project site perimeter may provide nesting habitat for migratory birds as well as native nesting birds. If vegetation removal, demolition, and construction activities occur during the nesting season (February 1 through August 31), these activities could result in the destruction or abandonment of an active nest and loss of any eggs or younglings in the nest, which would constitute a significant adverse effect and a violation of the federal Migratory Bird Treaty Act and State Fish and Game code.

Impact BIO-1: Construction of the project could result in significant impacts to nesting birds protected under the federal Migratory Bird Treaty Act and State Fish and Game Code. (Significant Impact)
Mitigation Measure: The project shall implement the following mitigation measure to reduce impacts to nesting birds to a less than significant level:

MM BIO-1.1: Initiation of construction activities during the avian nesting season (February 1 through August 31) shall be avoided to the extent feasible. If construction initiation during the nesting season cannot be avoided, pre-construction nesting bird surveys shall be conducted by a qualified biologist within 14 days of initial ground disturbance or vegetation removal to avoid disturbance to active nests, eggs, and/or young of nesting birds. Surveys shall be used to detect the nests of special-status as well as non-special-status birds. Surveys shall encompass the entire construction area and the surrounding 500 feet. An exclusion zone where no construction would be allowed shall be established around any active nests of any protected avian species found in the Study Area until a qualified biologist has determined that all young have fledged and are independent of the nest.

Suggested exclusion zone distances differ depending on species, location, and placement of the nest, and shall be at the discretion of the biologist and, if necessary, the California Department of Fish and Wildlife. These surveys would remain valid as long as construction activity is consistently occurring in a given area and shall be completed again if there is a lapse in construction activities of more than 14 consecutive days during the breeding bird season.

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A report of findings shall be prepared by the qualified biologist and submitted to the Director of Economic and Community Development or Director’s designee for review and approval prior to initiation of construction during the nesting season (February 1 to August 31). The report shall either confirm absence of any active nests or should confirm that any young are located within a designated no-disturbance zone and construction can proceed. No report of findings is required if construction is initiated during the non-nesting season (September 1 to January 31) and continues uninterrupted according to the above criteria.

With implementation of MM BIO-1.1, the project would avoid disturbance to birds nesting on or near the site and would result in a less than significant impact. (Less than Significant Impact with Mitigation Incorporated)
Special-Status Bats
The eucalyptus trees located within and along the perimeter of the project site may provide roosting habitat for special-status bats and other designated priority bat species. Tree trimming/ removal could displace any roosting bats, if present. Destruction of active roosts or indirect visual or acoustic disturbance to roosting special-status bats would constitute a significant impact under CEQA.

Impact BIO-2: Construction of the project could result in significant impacts to roosting specialstatus bats. (Significant Impact) Mitigation Measure: The project shall implement the following mitigation measure to reduce impacts to roosting bats to a less than significant level:

MM BIO-2.1: Initiation of construction activities during the bat maternity season (generally April through October) shall be avoided to the extent feasible, any tree removal or trimming should be conducted outside of the bat maternity season. If this work window is not feasible, pre-construction bat roost assessments conducted by a qualified biologist at least 14 days and no more than 30 days prior to removal shall be conducted to determine if bats roosts are present that may be impacted by project activities. If special-status bat species or maternity roosts are detected during these surveys, a qualified biologist shall identify any additional measures required to protect the roosts, such as including avoidance of the roost sites until the end of the maternity roosting season.

Regardless of the timing of tree removal or trimming activities, all felled trees or large limbs should remain on the ground for at least 24-hours prior to chipping, off-site removal, or other processing to allow any roosting individual bats to vacate the premises of their own volition.

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A report of findings shall be prepared by the qualified biologist and submitted to the Director of Economic and Community Development or Director’s designee for review and approval prior to initiation of construction during the maternity roosting season (April through October). The report shall either confirm absence of any active maternity roosts or specify any additional measures necessary to protect roosts until the end of the maternity roosting season. No report of findings is required if construction is initiated during the non-maternity roosting season (November through March) and continues uninterrupted according to the above criteria.

With implementation of MM BIO-2.1, impacts to individual bats and non-special status individuals and colonies of bats would be avoided during project construction. (Less than Significant Impact with Mitigation Incorporated)
b) Would the project have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, or by the CDFW or USFWS?
As discussed in Section 4.4.1.2 Existing Conditions above, no riparian habitat or sensitive natural communities are present within the project site. Therefore, since construction and operation of the proposed project would be constrained to the project site, the project would not have a substantial adverse effect on any riparian habitat or other sensitive natural community. (No Impact) c) Would the project have a substantial adverse effect on state or federally protected wetlands through direct removal, filling, hydrological interruption, or other means? As discussed in Section 4.4.1.2 Existing Conditions above, there are no wetlands present on or adjacent to the project site. Thus, the project would not have a substantial adverse effect on any state or federally protected wetlands. (No Impact)
d) Would the project interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? As documented in Section 4.4.1.2 Existing Conditions above, the project site is located in an urban area and has been previously disturbed. No watercourses or other natural features are present that would serve as a movement corridor for migratory fish or wildlife species, or as a native wildlife nursery. The majority of trees and understory grasses, forbs, and other plants located on the perimeter of the project site would be preserved and continue to serve as habitat for local wildlife.

Any wildlife present within the vicinity of the project site is already acclimated to human activity, and construction activities would not cause any significant impacts on wildlife movement in the

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area. For these reasons, the project would not interfere with fish and wildlife movement or in the use of native wildlife nursery sites. (Less than Significant Impact) e) Would the project conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? As discussed under Impact BIO-1, the project would mitigate potential impacts to nesting birds and bats to a less than significant level (consistent with General Plan policies LU-17 and LU-18).

Additionally, the project would not conflict with the San Bruno Mountain Habitat Conservation Plan (refer to the discussion under Impact BIO-6), consistent with General Plan Policy RME-16.

Construction of the BESS and substation would require the removal of 326 trees and construction of the transmission line along Alignment 1 would require the removal of seven trees. Construction of the transmission line along Alignment 2 and Alignment 3 would not require the removal of trees.

The City’s Urban Forestry Ordinance applies to trees within the public right-of-way, the trees to be removed/pruned by the project are not within the public right-of-way; therefore, the Urban Forestry Ordinance does not apply to the proposed project. Accordingly, the project would not conflict with any local policies or ordinances protecting biological resources. (Less than Significant Impact)
f) Would the project conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan?
The PG&E Martin substation, the end point of the proposed transmission line, is located within the San Bruno HCP boundary. This PG&E Martin Substation, however, is fully developed with industrial uses, contains no special-status species habitat or other sensitive habitats, and is not a designated priority management area in the HCP. Thus, the construction of the proposed transmission line and its connection to the PG&E Martin Substation would not conflict with the provisions of the San Bruno HCP. (Less than Significant Impact)

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Cultural Resources
The following discussion is based in part upon an Archaeological Sensitivity Analysis prepared by Archaeological/Historical Consultants in May 2024. A copy of the Archaeological Sensitivity Analysis, which is a confidential report, is on file at the City of Daly City Planning Division and is available upon request with appropriate credentials.

4.5.1 Environmental Setting
Regulatory Framework
Federal and State
National Historic Preservation Act
Federal protection is legislated by the National Historic Preservation Act of 1966 (NHPA) and the Archaeological Resource Protection Act of 1979. These laws maintain processes for determination of the effects on historical properties eligible for listing in the National Register of Historic Places (NRHP). Section 106 of the NHPA and related regulations (36 Code of Federal Regulations [CFR] Part 800) constitute the primary federal regulatory framework guiding cultural resources investigations and require consideration of effects on properties that are listed or eligible for listing in the NRHP.

Impacts to properties listed in the NRHP must be evaluated under CEQA.

California Register of Historical Resources
The California Register of Historical Resources (CRHR) is administered by the State Office of Historic Preservation and encourages protection of resources of architectural, historical, archeological, and cultural significance. The CRHR identifies historic resources for state and local planning purposes and affords protections under CEQA. Under Public Resources Code Section 5024.1(c), a resource may be eligible for listing in the CRHR if it meets any of the NRHP criteria.14 Historical resources eligible for listing in the CRHR must meet the significance criteria and retain enough of their historic character or appearance to be recognizable as historical resources and to convey the reasons for their significance. A resource that has lost its historic character or appearance may still have sufficient integrity for the CRHR if it maintains the potential to yield significant scientific or historical information or specific data.

The concept of integrity is essential to identifying the important physical characteristics of historical resources and, therefore, in evaluating adverse changes to them. Integrity is defined as “the authenticity of a historical resource’s physical identity evidenced by the survival of characteristics that existed during the resource’s period of significance.” The processes of determining integrity are 14 California Office of Historic Preservation. “CEQA Guidelines Section 15064.5(a)(3) and California Office of Historic Preservation Technical Assistance Series #6.” Accessed August 31, 2020. http://www.ohp.parks.ca.gov/pages/1069/files/technical%20assistance%20bulletin%206%202011%20update.pdf.

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similar for both the CRHR and NRHP and use the same seven variables or aspects to define integrity that are used to evaluate a resource’s eligibility for listing. These seven characteristics include 1) location, 2) design, 3) setting, 4) materials, 5) workmanship, 6) feeling, and 7) association.

Senate Bill 18
The intent of SB 18 is to aid in the protection of traditional tribal cultural places through local land use planning by requiring city governments to consult with California Native American tribes on projects that include adoption or amendment of general plans (defined in Government Code Section 65300 et seq.) and specific plans (defined in Government Code Section 65450 et seq.). SB 18 requires local governments to consult with tribes prior to making certain planning decisions and to provide notice to tribes at certain key points in the planning process.

California Native American Historical, Cultural, and Sacred Sites Act The California Native American Historical, Cultural, and Sacred Sites Act applies to both state and private lands. The act requires that upon discovery of human remains, construction or excavation activity must cease and the county coroner be notified.

Public Resources Code Sections 5097 and 5097.98
Section 15064.5 of the CEQA Guidelines specifies procedures to be used in the event of an unexpected discovery of Native American human remains on non-federal land. These procedures are outlined in Public Resources Code Sections 5097 and 5097.98. These codes protect such remains from disturbance, vandalism, and inadvertent destruction, establish procedures to be implemented if Native American skeletal remains are discovered during construction of a project, and establish the Native American Heritage Commission (NAHC) as the authority to resolve disputes regarding disposition of such remains.

Pursuant to Public Resources Code Section 5097.98, in the event of human remains discovery, no further disturbance is allowed until the county coroner has made the necessary findings regarding the origin and disposition of the remains. If the remains are of a Native American, the county coroner must notify the NAHC. The NAHC then notifies those persons most likely to be related to the Native American remains. The code section also stipulates the procedures that the descendants may follow for treating or disposing of the remains and associated grave goods.

Local
Daly City General Plan
The General Plan includes policies and tasks for the purpose of avoiding or mitigating impacts resulting from development projects within the City. The following policies and tasks are specific to cultural resources and are applicable to the proposed project.

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General Plan Policies and Tasks
Policy/Task Description
Policy LU-19 Archeological resources should be preserved where possible.

Task LU-19.1 Archeological resources are a valuable educational resource for the residents of the city.

Every effort should be made to preserve them in their natural state when found or be excavated by professional archeologists for display in a museum.

Policy RME-19 Undertake measures to protect and preserve historic and archaeological resources.

Task RME-19.1 Comply with State statutes related to historical and archaeological resources.

Existing Conditions
Project Area
There are no known archaeological sites on the project site or PG&E Martin Substation, within the proposed transmission line alignments, or within 0.25-mile of the site. The nearest known archaeological sites are located 0.8- to 1.5-miles northeast of the project site and are Native American shellmounds near the San Francisco Bay.

The project site is vacant and, therefore, contains no historical resources on-site. The project site is, however, directly adjacent to the Cow Palace. The Cow Palace was built between 1935-1941 as a Works Progress Administration (WPA) project and is an indoor arena and event space. It has been used for sports, expositions, concerts, rodeos, and various other events. The Cow Palace is eligible for listing in the NRHP and is listed in the CRHR. No other historic resources are located within the project area.

Native American Consultation
The NAHC was contacted by Archaeological/Historical Consultants to request a review of the Sacred Land Files (SLF) for any evidence of cultural resources or traditional properties of potential concern that might be known on lands within or adjacent to the project area. On February 18, 2023, the NAHC responded that no tribal cultural resources were identified during the SLF review. The NAHC provided a contact list of eight Native American individuals/organizations who may know of cultural resources in this area or have specific concerns about the project. Per SB 18, the City of Daly City requested a tribal consultation list from the NAHC of tribes affiliated with the project area. The City received a list from the NAHC on December 27, 2022, and sent an email and physical letter to each of the identified individuals/organizations on January 5, 2023, inquiring whether they had any concerns about the proposed project. No responses were received within the 90-day response period and the City concluded consultation on April 4, 2023.

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4.5.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
a) Cause a substantial adverse change in the
significance of a historical resource pursuant to
CEQA Guidelines Section 15064.5?
b) Cause a substantial adverse change in the
significance of an archaeological resource as
pursuant to CEQA Guidelines Section 15064.5?
c) Disturb any human remains, including those
interred outside of dedicated cemeteries?
a) Would the project cause a substantial adverse change in the significance of a historical resource pursuant to CEQA Guidelines Section 15064.5?
The project site is a vacant lot with no existing permanent structures; thus, the project would not result in the demolition or physical alteration of any historic structures. The project site is adjacent to the Cow Palace, an NRHP eligible and CRHR listed resource; however, construction of the project would not affect the Cow Palace or its historic integrity. The proposed BESS and substation would not physically alter the Cow Palace, would be shielded from view of the Cow Palace by the existing tree line, and would be consistent with the existing land uses surrounding the Cow Palace. In addition, while the transmission line along Alignment 1 would run through the Cow Palace parking lot and along the northern and eastern borders of the Cow Palace property, it would be underground and would not physically alter the Cow Palace or its historic integrity. The project, therefore, would not result in impacts to historic resources. (Less than Significant Impact) b) Would the project cause a substantial adverse change in the significance of an archaeological resource pursuant to CEQA Guidelines Section 15064.5? As discussed above, there are no known archaeological resources within 0.25-mile of the project site, PG&E Martin Substation, or proposed transmission line route. In addition, the Archaeological Sensitivity Analysis concluded that the area near the Cow Palace along transmission line Alignment 1 has low sensitivity for historic-era resources. Based on the project location and lack of known resources, the archaeological sensitivity analysis concluded that the project area has a low sensitivity for archaeological resources. The project, however, could still result in significant impacts to undiscovered subsurface archaeological resources if encountered during construction-related ground disturbing activities.

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Impact CUL-1: Construction of the project could result in significant impacts to previously undiscovered subsurface archeological resources. (Significant Impact) Mitigation Measures: The project shall implement the following mitigation measures to reduce impacts to archaeological resources to a less than significant level:

MM CUL-1.1: Undiscovered Archaeological Resources. If evidence of an archaeological site or other suspected cultural resource as defined by CEQA Guideline Section 15064.5, including darkened soil representing past human activity (“midden”), that could conceal material remains (e.g., worked stone, worked bone, fired clay vessels, faunal bone, hearths, storage pits, or burials) is discovered during construction related earth-moving activities, all ground-disturbing activity within 100 feet of the resources shall be halted and the City’s Planning Manager shall be notified. The project sponsor shall hire a qualified archaeologist to conduct a field investigation. The City’s Planning Manager shall consult with the archaeologist to assess the significance of the find. Impacts to any significant resources shall be mitigated to a less-than-significant level through data recovery or other methods determined adequate by a qualified archaeologist and that are consistent with the Secretary of the Interior’s Standards for Archaeological documentation. Any identified cultural resources shall be recorded on the appropriate DPR 523 (A-J) form and filed with the NWIC.

MM CUL-1.2: Report of Archaeological Resources. If archaeological resources are identified, a final report summarizing the discovery of cultural materials shall be submitted to the City’s Planning Manager prior to issuance of certificate of occupancy. This report shall contain a description of the mitigation program that was implemented and its results, including a description of the monitoring and testing program, a list of the resources found and conclusion, and a description of the disposition/curation of the resources.

Implementation of MM CUL-1.1 would ensure that any potentially undiscovered archaeological resources are identified and appropriately treated and protected by a qualified archaeologist in accordance with the Secretary of the Interior’s standards. Mitigation addressing subsurface archaeological resources would be documented and enforced through implementation of MM CUL1.2. Therefore, the project would not cause a substantial adverse change in the significance of an archaeological resource pursuant to CEQA Guidelines Section 15064.5. (Less than Significant Impact with Mitigation Incorporated)

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c) Would the project disturb any human remains, including those interred outside of dedicated cemeteries?
Human remains have the potential to be discovered during construction. If human remains were unearthed during project construction, damage to or destruction of significant human remains would be a potentially significant impact.

Impact CUL-2: Construction of the project could result in significant impacts to previously undiscovered human remains. (Significant Impact)
Mitigation Measure: The project shall implement the following mitigation measure to reduce impacts to human remains to a less than significant level:

MM CUL-2.1: Human Remains. If human remains are discovered during project construction, all ground-disturbing activity within 100 feet of the resources shall be halted and the City’s Planning Manager and the San Mateo County coroner shall be notified immediately, according to Section 5097.98 of the State Public Resources Code and Section 7050.5 of California’s Health and Safety Code. If the remains are determined by the County coroner to be Native American, the Native American Heritage Commission (NAHC) shall be notified within 24 hours, and the guidelines of the NAHC shall be adhered to in the treatment and disposition of the remains. The project sponsor shall also retain a professional archaeologist with Native American burial experience to conduct a field investigation of the specific site and consult with the Most Likely Descendant, if any, identified by the NAHC. As necessary, the archaeologist may provide professional assistance to the Most Likely Descendant, including the excavation and removal of the human remains. The City of Daly City shall be responsible for approval of recommended mitigation as it deems appropriate, taking account of the provisions of State law, as set forth in CEQA Guidelines section 15064.5(e) and Public Resources Code section 5097.98. The project sponsor shall implement approved mitigation, to be verified by the City of Daly City, before the resumption of ground-disturbing activities within 100 feet of where the remains were discovered.

By following the process set forth in MM CUL-2.1, the project would ensure that any human remains encountered during ground-disturbing activities are appropriately identified and treated. (Less than Significant Impact with Mitigation Incorporated)

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Energy
The following discussion is based in part on a Construction Health Risk Assessment prepared by Illingworth & Rodkin, Inc. in September 2024. This document is included as Appendix A to this Initial Study.

4.6.1 Environmental Setting
Regulatory Framework
Federal and State
Energy Star and Fuel Efficiency
At the federal level, energy standards set by the EPA apply to numerous consumer products and appliances (e.g., the EnergyStar™ program). The EPA also sets fuel efficiency standards for automobiles and other modes of transportation.

Renewables Portfolio Standard Program
In 2002, California established its Renewables Portfolio Standard Program, with the goal of increasing the percentage of renewable energy in the state’s electricity mix to 20 percent of retail sales by 2010. Governor Schwarzenegger issued Executive Order (EO) S-3-05, requiring statewide emissions reductions to 80 percent below 1990 levels by 2050. In 2008, EO S-14-08 was signed into law, requiring retail sellers of electricity serve 33 percent of their load with renewable energy by 2020. In October 2015, Governor Brown signed SB 350 to codify California’s climate and clean energy goals. A key provision of SB 350 requires retail sellers and publicly owned utilities to procure 50 percent of their electricity from renewable sources by 2030. SB 100, passed in 2018, requires 100 percent of electricity in California to be provided by 100 percent renewable and carbon-free sources by 2045.

Executive Order B-55-18 To Achieve Carbon Neutrality
In September 2018, Governor Brown issued an executive order, EO-B-55-18 To Achieve Carbon Neutrality, setting a statewide goal “to achieve carbon neutrality as soon as possible, and no later than 2045, and achieve and maintain net negative emissions thereafter.” The executive order requires CARB to “ensure future Scoping Plans identify and recommend measures to achieve the carbon neutrality goal.” EO-B-55-18 supplements EO S-3-05 by requiring not only emissions reductions, but also that, by no later than 2045, the remaining emissions be offset by equivalent net removals of CO2 from the atmosphere through sequestration.

California Building Standards Code
The Energy Efficiency Standards for Residential and Nonresidential Buildings, as specified in Title 24, Part 6 of the California Code of Regulations (Title 24), was established in 1978 in response to a

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legislative mandate to reduce California’s energy consumption. Title 24 is updated approximately every three years.15 Compliance with Title 24 is mandatory at the time new building permits are issued by city and county governments.16
California Green Building Standards Code
CALGreen establishes mandatory green building standards for buildings in California. CALGreen was developed to reduce GHG emissions from buildings, promote environmentally responsible and healthier places to live and work, reduce energy and water consumption, and respond to state environmental directives. CALGreen covers five categories: planning and design, energy efficiency, water efficiency and conservation, material and resource efficiency, and indoor environmental quality.

Advanced Clean Cars Program
CARB adopted the Advanced Clean Cars program in 2012 in coordination with the EPA and National Highway Traffic Safety Administration. The program combines the control of smog-causing pollutants and GHG emissions into a single coordinated set of requirements for vehicle model years 2015 through 2025. The program promotes development of environmentally superior passenger cars and other vehicles, as well as saving the consumer money through fuel savings.17 Local
Daly City General Plan
The General Plan includes policies and tasks for the purpose of avoiding or mitigating impacts resulting from development projects within the City. The following policies are specific to energy and are applicable to the proposed project.

General Plan Policies and Tasks
Policy/Task Description
Policy HE-24 Mandate the inclusion of green building techniques into most new construction.

Policy HE-28 Promote alternative sources of energy in all homes. 15 California Building Standards Commission. “California Building Standards Code.” Accessed April 3, 2023. https://www.dgs.ca.gov/BSC/Codes#@ViewBag.JumpTo.
16 California Energy Commission (CEC). “2019 Building Energy Efficiency Standards.” Accessed April 3, 2023. https://www.energy.ca.gov/programs-and-topics/programs/building-energy-efficiency-standards/2019-buildingenergy-efficiency. 17 California Air Resources Board. “The Advanced Clean Cars Program.” Accessed April 3, 2023. https://ww2.arb.ca.gov/our-work/programs/advanced-clean-cars-program.

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Daly City’s Green Vision
Daly City’s Green Vision, A Climate Action Plan (CAP) for 2011-2020 and Beyond, was adopted in December 2010. Daly City’s Green Vision guides the City towards a sustainable future that reduces GHG emissions from current levels, while promoting economic prosperity for present and future generations. The Green Vision identifies ten goals and seeks to achieve these goals through costeffective strategies by the year 2020. The GHG reduction goals include adopting a general plan with measurable policies for sustainable development, reducing energy use in buildings, reducing transportation emissions, reducing solid waste disposal, and GHG emissions reductions from municipal operations. Daly City completed an update to the General Plan which incorporated these goals in March 2013.

Daly City Municipal Code
The City’s Recycling and Diversion of Construction and Demolition ordinance (Municipal Code

15.64) requires that requires that all projects meet the minimum diversion percentage required under the latest locally adopted CALGreen standard for waste tonnage from construction, demolition, and alteration projects. Waste shall be diverted from disposal. This may be accomplished by delivering mixed debris to a recycling facility approved by the city, separating recyclables at the job site and delivering them to reuse and recycling facilities approved by the city, and/or reusing concrete or other waste materials at the jobsite.

Existing Conditions
Total energy usage in California was approximately 7,359 trillion British thermal units (Btu) in the year 2021, the most recent year for which this data was available.18 Out of the 50 states, California is ranked second in total energy consumption and 48
th in energy consumption per capita. The
breakdown by sector was approximately 20 percent (1,473 trillion Btu) for residential uses, 19 percent (1,397 trillion Btu) for commercial uses, 23.2 percent (1,704 trillion Btu) for industrial uses, and 37.8 percent (2,785 trillion Btu) for transportation.19 This energy is primarily supplied in the form of natural gas, petroleum, nuclear electric power, and hydroelectric power.

Electricity
In 2022, California’s in-state electricity generated equaled about 80 percent of California electricity sales and the remaining 20 percent of the State’s electricity supply came from out of state sources.

In 2022, non-hydroelectric renewables provide 42 percent of California’s total in-state electricity generation. The remaining source percentages are as follows: 42 percent from natural gas-fired power plants, eight percent from hydroelectric renewable resources, and eight percent from nuclear power.20
18 United States Energy Information Administration. “California State Energy Profile.” Last Updated April 20, 2023.

Accessed September 29, 2023. https://www.eia.gov/state/print.php?sid=CA. 19 Ibid.
20 Ibid.

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In 2022, a total of approximately 4,177 GWh of electricity was consumed in San Mateo County. The non-residential sector consumed approximately 2,580 GWh (62 percent) and the residential sector consumed approximately 1,597 GWh (38 percent).21
Peninsula Clean Energy (PCE) is a public and locally controlled electricity provider for the County of San Mateo. Electricity provided by PCE is delivered through PG&E transmission lines. Commercial and residential customers in San Mateo County are included in the PCE service area and can choose to have 50 to 100 percent of their electricity supplied from carbon-free and renewable sources.

Customers are automatically enrolled in the ECOplus plan, which generates its electricity from 100 percent carbon-free sources, with at least 50 percent from renewable sources. Customers have the option to enroll in the ECO100 plan, which generates its electricity from 100 percent carbon-free, renewable sources.22 The project site is vacant and does not use any electricity.

Natural Gas
PG&E provides natural gas services within the City of Daly City. In 2022, California’s natural gas supply came from a combination of in-state production and imported supplies from other western states and Canada.23 In 2021, residential and commercial customers in California used 33 percent of the state’s natural gas, power plants used 0.01 percent, the industrial sector used 33 percent.24 In 2020, San Mateo County used less than one percent of the state’s total consumption of natural gas.25 The project site is vacant and does not use any natural gas.

Fuel for Motor Vehicles
In 2022, California produced approximately 124 million barrels of crude oil.26 Approximately 13.64 billion gallons of gasoline and 2.3 billion gallons of diesel were sold in California in 2022.27 The average fuel economy for light-duty vehicles (autos, pickups, vans, and sport utility vehicles) in the United States has steadily increased from about 13.1 miles per gallon (mpg) in the mid-1970s to 21 California Energy Commission. Energy Consumption Data Management System. “Electricity Consumption by County.” Accessed October 9, 2023. https://ecdms.energy.ca.gov/Default.aspx. 22 Sources: 1) Peninsula Clean Energy. “Frequently Asked Questions.” Accessed March 13, 2023. https://www.peninsulacleanenergy.com/faq/. 2) Peninsula Clean Energy. “Energy Choices.” Accessed March 13, 2023. https://www.peninsulacleanenergy.com/faq/.
23 California Gas and Electric Utilities. 2022 California Gas Report. Accessed March 13, 2023. https://www.socalgas.com/sites/default/files/Joint_Utility_Biennial_Comprehensive_California_Gas_Report_2022 .pdf.
24 United States Energy Information Administration. “Natural Gas Consumption by End Use. 2021.” Accessed March 13, 2023. https://www.eia.gov/state/?sid=CA#tabs-2.
25 California Energy Commission. “Natural Gas Consumption by County.” Accessed March 13, 2023. http://ecdms.energy.ca.gov/gasbycounty.aspx.
26 U.S. Energy Information Administration. “Petroleum & Other Liquids, California Field Production of Crude Oil.” September 27, 2023. https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpca1&f=a 27California Energy Commission. “2022 California Annual Retail Fuel Outlet Report Results (CEC-A15) Energy Assessments Division.” August 16, 2023. Accessed September 29, 2023. https://www.energy.ca.gov/datareports/energy-almanac/transportation-energy/california-retail-fuel-outlet-annual-reporting

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25.4 mpg in 2021.
28 Federal fuel economy standards have changed substantially since the Energy Independence and Security Act was passed in 2007. That standard, which originally mandated a national fuel economy standard of 35 miles per gallon by the year 2020, was updated in April 2022 to require all cars and light duty trucks achieve an overall industry average fuel economy of 49 mpg by model year 2026. 29,30 The project site is currently used as a construction staging and vehicle storage area. While there are periodic vehicle trips to and from the project site, for the purposes of this analysis, it is assumed that no gasoline is used under existing conditions.

4.6.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
a) Result in a potentially significant environmental
impact due to wasteful, inefficient, or
unnecessary consumption of energy resources,
during project construction or operation?
b) Conflict with or obstruct a state or local plan for
renewable energy or energy efficiency?
a) Would the project result in a potentially significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, during project construction or operation?
Construction
Construction activities associated with the proposed project are estimated to occur at the site over an approximate 23-month period and would consist of site preparation, trenching, grading, paving, installation of the substation, installation of the transmission line, and improvements to the PG&E Martin Substation. The overall construction schedule and process is designed to be efficient in order to avoid excess monetary costs. That is, equipment and fuel are not typically used wastefully on the site because of the added expense associated with renting the equipment, as well as maintaining and fueling it. In addition, as discussed in Section 3.3 Air Quality, the project would implement mitigation measures to minimize the idling of construction equipment thus reducing the potential for energy waste. Further, the project would recycle at least 65 percent of construction and 28 United States Environmental Protection Agency. “The 2022 EPA Automotive Trends Report: Greenhouse Gas Emissions, Fuel Economy, and Technology since 1975.” December 2022. https://www.epa.gov/system/files/documents/2022-12/420r22029.pdf. 29 United States Department of Energy. Energy Independence & Security Act of 2007. Accessed March 13, 2023. http://www.afdc.energy.gov/laws/eisa.
30 United States Department of Transportation. “USDOT Announces New Vehicle Fuel Economy Standards for Model Year 2024-2026.” Accessed March 13, 2023. https://www.nhtsa.gov/press-releases/usdot-announces-newvehicle-fuel-economy-standards-model-year-2024-2026

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demolition waste consistent with CALGreen requirements. For these reasons, construction of the project would not use energy in a wasteful manner. (Less than Significant Impact) Operation
The project would develop a vacant lot and would result in an increase in energy use compared to existing conditions. The proposed BESS would be located outside in purpose-built enclosures; thus, the project would not require the typical energy needs of buildings (i.e., heating, cooling, water heater, indoor lighting). Electricity would be used to power outdoor security lighting and to run the remote monitoring equipment. No permanent full-time or part-time employees would occupy the site and the BESS would be monitored remotely with maintenance staff visiting the facilities periodically throughout the year. Assuming a 22-mile round trip for the maintenance truck, the project would generate 1,056 vehicle miles and associated gasoline use of 42 gallons per year. To ensure that energy is not wasted or unnecessarily consumed, the project would comply with Title 24 and CALGreen energy efficiency measures, as well as City of Daly City Green Vision requirements.

These various requirements would reduce project energy demand by ensuring that the project would be built to current energy efficiency standards. For these reasons, operation of the project would not use energy in a wasteful manner. (Less than Significant Impact) b) Would the project conflict with or obstruct a state or local plan for renewable energy or energy efficiency?
The project would conform to General Plan policies and regulations which promote the use and expansion of renewable energy resources, including solar and wind, by providing needed storage when the renewable energy is generated—thereby reducing the need for natural-gas electricity generation. By conforming to applicable General Plan policies related to renewable energy and energy efficiency, and the CBC and CALGreen, the project would not preclude the City from meeting local or state renewable energy or energy efficiency goals; rather, it would facilitate the City’s objectives and state RPS requirements to meet these goals. (Less than Significant Impact)

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Geology and Soils

4.7.1 Environmental Setting
Regulatory Framework
State
Alquist-Priolo Earthquake Fault Zoning Act
The Alquist-Priolo Earthquake Fault Zoning Act was passed following the 1971 San Fernando earthquake. The act regulates development in California near known active faults due to hazards associated with surface fault ruptures. Alquist-Priolo maps are distributed to affected cities, counties, and state agencies for their use in planning and controlling new construction. Areas within an Alquist-Priolo Earthquake Fault Zone require special studies to evaluate the potential for surface rupture to ensure that no structures intended for human occupancy are constructed across an active fault.

Seismic Hazards Mapping Act
The Seismic Hazards Mapping Act (SHMA) was passed in 1990 following the 1989 Loma Prieta earthquake. The SHMA directs the California Geological Survey (CGS) to identify and map areas prone to liquefaction, earthquake-induced landslides, and amplified ground shaking. CGS has completed seismic hazard mapping for the portions of California most susceptible to liquefaction, landslides, and ground shaking, including the central San Francisco Bay Area. The SHMA requires that agencies only approve projects in seismic hazard zones following site-specific geotechnical investigations to determine if the seismic hazard is present and identify measures to reduce earthquake-related hazards.

California Building Standards Code
The CBC prescribes standards for constructing safe buildings. The CBC contains provisions for earthquake safety based on factors including occupancy type, soil and rock profile, ground strength, and distance to seismic sources. The CBC requires that a site-specific geotechnical investigation report be prepared for most development projects to evaluate seismic and geologic conditions such as surface fault ruptures, ground shaking, liquefaction, differential settlement, lateral spreading, expansive soils, and slope stability. The CBC is updated every three years.

California Division of Occupational Safety and Health Regulations Excavation, shoring, and trenching activities during construction are subject to occupational safety standards for stabilization by the California Department of Industrial Relations, Division of Occupational Safety and Health (Cal/OSHA) under Title 8 of the California Code of Regulations and Excavation Rules. These regulations minimize the potential for instability and collapse that could injure construction workers on the site.

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Public Resources Code Section 5097.5
Paleontological resources are the fossilized remains of organisms from prehistoric environments found in geologic strata. They range from mammoth and dinosaur bones to impressions of ancient animals and plants, trace remains, and microfossils. These materials are valued for the information they yield about the history of the earth and its past ecological settings. California Public Resources Code Section 5097.5 specifies that unauthorized removal of a paleontological resource is a misdemeanor. Under the CEQA Guidelines, a project would have a significant impact on paleontological resources if it would disturb or destroy a unique paleontological resource or site or unique geologic feature.

Local
Daly City General Plan
The General Plan includes policies and tasks for the purpose of avoiding or mitigating impacts resulting from development projects within the City. The following policies are specific to geology and soils and are applicable to the proposed project.

General Plan Policies and Tasks
Policy/Task Description
Policy SE-1.1 Continue to investigate the potential for seismic and geologic hazards as part of the development review process and maintain this information for the public record. Update Safety Element maps as appropriate.

Policy SE-1.2 Require site specific geotechnical, soils, and foundation reports for development proposed on sites identified in the Safety Element and its Geologic and Hazard Maps as having moderate or high potential for ground failure.

Policy SE-1.3 Permit development in areas of potential geologic hazards only where it can be demonstrated that the project will not be endangered by, nor contribute to, the hazardous condition on the site or on adjacent properties. All proposed development is subject to the City’s Zoning Ordinance and Building Codes.

Policy SE-1.4 Prohibit development—including any land alteration, grading for roads and structural development—in areas of slope instability or other geologic concerns unless mitigation measures are taken to limit potential damage to levels of acceptable risk.

Policy SE-6.1 Regulate building construction practices to prevent hazardous structures and assure structural safety. Measures may include requiring conformance to an accepted set of construction standards, authorizing inspection of suspected dangerous structures, discontinuing improper construction activities, and eliminating hazardous conditions.

Daly City Municipal Code
Title 15 of the Daly City Municipal Code includes Chapter 15.62 “Grading, Erosion, and Sediment Control”, which is intended to provide for safe grading operations, to safeguard public health and property, and to preserve and enhance the natural environment, including, but not limited to, water quality, by regulating site clearing, grading and erosion control on all public and private properties. Among other conditions, Chapter 15.62 requires projects to prepare an erosion and

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sediment control plan, an engineering geology report, and when requested, a soil/geotechnical engineering report in order to address geological and soils related hazards and engineering issues.

Existing Conditions
Soils
The project site is relatively flat and situated at an elevation of approximately 140 feet above mean sea level (msl). The project site is underlain by Urban land soils, which contain variable soil types textures.
31 The proposed transmission line route ranges from approximately 140 feet msl to 20 feet msl and is underlain by Urban land and Urban land-Orthents.32 Urban land and Urban land-Orthents soils could contain expansive clays; thus, there is potential for expansive soils to be located on the project site and along the proposed transmission line route.33 Seismicity and Seismic-Related Hazards
The project site is situated in an area of high seismic activity. Several major fault zones are present in the Bay Area, including the San Andreas, San Gregorio, Hayward and Monte Vista faults. The project site would experience intense ground shaking in the event of a large earthquake. The project site is not, however, within a mapped State of California Earthquake Fault Zone, Fault Rupture Hazard Zone.34 The closest active fault is the San Andreas fault, located approximately four miles southwest of the project site.

Liquefaction
Liquefaction is the temporary transformation of loose, saturated granular sediments from a solid state to a liquefied state as a result of seismic ground shaking. The project site and proposed transmission line route are located within a State of California Hazard Zone for potential liquefaction.35
Lateral Spreading
Lateral spreading is a type of ground failure related to liquefaction. It consists of the horizontal displacement of sloping, saturated soil deposits caused by earthquake-induced liquefaction, and often occurs along sloping creek banks. There are no creeks on or near the project site or proposed transmission line route.
31 United States Department of Agriculture. “Web Soil Survey”. Accessed April 5, 2023. https://websoilsurvey.sc.egov.usda.gov/App/WebSoilSurvey.aspx. 32 Ibid.
33 University of California Davis. “SoilWeb”. Accessed April 5, 2023. https://casoilresource.lawr.ucdavis.edu/gmap/. 34 California Department of Conservation. “California Earthquake Hazards Zone Application”. Accessed April 5, 2023. https://maps.conservation.ca.gov/cgs/EQZApp/app/. 35 Ibid.

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Landslides
Landslide zones in the vicinity of the project site are located near the intersection of Carter Street and Martin Street. The project site is located on gently sloping land and would not be exposed to substantial slope instability, erosion, or landslide-related hazards. The proposed transmission line route would also not cross any designated landslide hazard areas.36 Paleontological Resources
The project site is not known to contain any subsurface paleontological or geological features. The project site is vacant and underlain with Urban land and Urban land-Orthent soils, which are a mix of various soil types and textures. These soils do not typically contain unique paleontological resources or geologic features. The proposed transmission line route would follow existing urban development and be located within the PG&E Martin Substation, which required previous excavation and grading to construct; thus, paleontological resources are unlikely to be found near the ground surface.

4.7.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
a) Directly or indirectly cause potential substantial
adverse effects, including the risk of loss, injury,
or death involving:
- Rupture of a known earthquake fault,
as delineated on the most recent
Alquist-Priolo Earthquake Fault Zoning
Map issued by the State Geologist for
the area or based on other substantial
evidence of a known fault (refer to
Division of Mines and Geology Special
Publication 42)?
- Strong seismic ground shaking?
- Seismic-related ground failure,
including liquefaction?
- Landslides?
b) Result in substantial soil erosion or the loss of
topsoil?
36 Ibid.

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Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
c) Be located on a geologic unit or soil that is
unstable, or that will become unstable as a
result of the project, and potentially result in
on- or off-site landslide, lateral spreading,
subsidence, liquefaction or collapse?
d) Be located on expansive soil, as defined in the
current California Building Code, creating
substantial direct or indirect risks to life or
property?
e) Have soils incapable of adequately supporting
the use of septic tanks or alternative
wastewater disposal systems where sewers are
not available for the disposal of wastewater?
f) Directly or indirectly destroy a unique
paleontological resource or site or unique
geological feature?
a) Would the project directly or indirectly cause potential substantial adverse effects, including the risk of loss, injury, or death involving rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault; strong seismic ground shaking; seismic-related ground failure, including liquefaction; or landslides? The project site is not located on or adjacent to a known earthquake fault, such that potential substantial adverse effects, including the risk of loss, injury, or death would occur from rupture of an earthquake fault. The project site is not prone to landslides; therefore, there would be no impact.

An earthquake of moderate to high magnitude generated within the San Francisco Bay Region could cause considerable ground shaking and seismic-related ground failure, including liquefaction, at the site. Consistent with the findings of the Daly City 2030 General Plan Environmental Impact Report (General Plan EIR), compliance with the building codes and construction standards established by the CBC as required by law would be sufficient to protect against building collapse and major injuries during a seismic event.37 The project would comply with current CBC building codes and standards and be constructed in accordance with the recommendations of a site-specific geotechnical investigation (as required by the CBC) and the engineering geology report prepared as required by Chapter 15.62 of the Daly City Municipal Code. 37 City of Daly City. General Plan Update Draft Environmental Impact Report. October 2012. Page 3.5-15.

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The project, in conformance with applicable regulations and with the implementation of the recommendations in the geotechnical report, would not result in significant impacts from seismicity and seismic-related hazards, including ground shaking and liquefaction. (Less than Significant Impact)
b) Would the project result in substantial soil erosion or the loss of topsoil? Construction-related ground disturbing activities (grading, excavation, etc.) proposed by the project are expected to result in the exposure of soil to wind and water erosion. If managed improperly, construction could result in substantial soil erosion or loss of topsoil.

The City’s National Pollutant Discharge Elimination System (NPDES) Municipal Permit and Chapter

15.62 of the City’s Municipal Code are the City’s primary means of enforcing erosion control measures through the grading and building permit process. Consistent with the findings of the General Plan EIR, compliance with the erosion control provisions included in the NPDES Municipal Permit and the erosion and sediment control plan required by Chapter 15.62 of the Municipal Code would ensure that the project would not result in substantial soil erosion or loss of topsoil.38 (Less than Significant Impact)
c) Would the project be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse? As discussed under Impact GEO-1, the project would be required by law to comply with current CBC building codes and standards and be constructed in accordance with the recommendations of the site-specific geotechnical investigation and engineering geology report, which would ensure that the project would not exacerbate the risk of ground failure, including liquefaction, lateral spreading, landsliding, and other related phenomenon. As such, the project would not result in on- or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse. (Less than Significant Impact) d) Would the project be located on expansive soil, as defined in the current California Building Code, creating substantial direct or indirect risks to life or property? Soils on the project site and along the transmission line route could be considered expansive. By conforming with current CBC building codes and standards and the recommendations of the sitespecific geotechnical investigation and the engineering geology report, the project would not create direct or indirect risks to life or property. (Less than Significant Impact) 38 Ibid. Page 3.5-17.

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e) Would the project have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater?
The proposed project would not generate wastewater and would not require the use of septic tanks or alternative wastewater disposal systems. (No Impact) f) Would the project directly or indirectly destroy a unique paleontological resource or site or unique geological feature?
Construction of the proposed BESS and substation would require excavation of up to 15 feet, construction of the proposed transmission line would excavation of up to six feet, and construction of the POCO pole would require excavation up to 30 feet. While it is unlikely that paleontological resources will be encountered at these excavation depths, the proposed project could potentially disturb undiscovered paleontological resources during construction activities.

Impact GEO-1: Construction of the project could result in significant impacts to previously undiscovered paleontological resources. (Significant Impact) Mitigation Measure: The project shall implement the following mitigation measure to reduce impacts to human remains to a less than significant level:

MM GEO-1.1: Unique Paleontological and/or Geologic Features and Reporting. Should a unique paleontological resource, site, or unique geological feature be identified at the project site during any phase of construction, all ground disturbing activities within 25 feet shall cease and the City’s Planning Manager notified immediately. A qualified paleontologist shall evaluate the find and prescribe mitigation measures to reduce impacts to a less than significant level. Work may proceed on other parts of the project site while mitigation for paleontological resources or geologic features is implemented. Treatment may include, but is not limited to, preparation and recovery of fossil materials so that they can be housed in an appropriate museum or university collection and may also include preparation of a report for publication describing the finds. The project applicant shall be responsible for implementing the recommendations of the qualified paleontologist. Upon completion of the paleontological assessment, a report shall be submitted to the City and, if paleontological materials are recovered, a paleontological repository, such as the University of California Museum of Paleontology.

Implementation of MM GEO-1.1 would ensure that any paleontological resource or unique geological feature encountered during project construction would be identified and subsequently evaluated and protected in accordance with California Public Resources Code Section 5097.5. As

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such, impacts to unique paleontological resources would be less than significant. (Less than Significant Impact with Mitigation Incorporated)

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Greenhouse Gas Emissions

4.8.1 Environmental Setting
Background Information
Gases that trap heat in the atmosphere, GHGs, regulate the earth’s temperature. This phenomenon, known as the greenhouse effect, is responsible for maintaining a habitable climate.

In GHG emission inventories, the weight of each gas is multiplied by its global warming potential (GWP) and is measured in units of CO2 equivalents (CO2e). The most common GHGs are carbon dioxide (CO2) and water vapor but there are also several others, most importantly methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). These are released into the earth’s atmosphere through a variety of natural processes and human activities. Sources of GHGs are generally as follows:
• CO2 and N2O are byproducts of fossil fuel combustion
• N2O is associated with agricultural operations such as fertilization of crops • CH4 is commonly created by off-gassing from agricultural practices (e.g., keeping livestock) and landfill operations
• Chlorofluorocarbons (CFCs) were widely used as refrigerants, propellants, and cleaning solvents, but their production has been stopped by international treaty • HFCs are now used as a substitute for CFCs in refrigeration and cooling • PFCs and SF6 emissions are commonly created by industries such as aluminum production and semiconductor manufacturing
An expanding body of scientific research supports the theory that global climate change is currently causing changes in weather patterns, average sea level, ocean acidification, chemical reaction rates, and precipitation rates, and that it will increasingly do so in the future. The climate and several naturally occurring resources within California are adversely affected by the global warming trend.

Increased precipitation and sea level rise will increase coastal flooding, saltwater intrusion, and degradation of wetlands. Mass migration and/or loss of plant and animal species could also occur.

Potential effects of global climate change that could adversely affect human health include more extreme heat waves and heat-related stress; an increase in climate-sensitive diseases; more frequent and intense natural disasters such as flooding, hurricanes and drought; and increased levels of air pollution.

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Regulatory Framework
State
Assembly Bill 32 and State Bill 32
Under the California Global Warming Solutions Act, also known as AB 32, CARB established a statewide GHG emissions cap for 2020, adopted mandatory reporting rules for significant sources of GHGs, and adopted a comprehensive plan, known as the Climate Change Scoping Plan, identifying how emission reductions would be achieved from significant GHG sources. The first Scoping Plan was approved by CARB in 2008 and must be updated at least every five years. Since 2008, there have been two updates to the Scoping Plan.

In 2016, SB 32 was signed into law, amending the California Global Warming Solution Act. SB 32, and accompanying Executive Order B-30-15, require CARB to ensure that statewide GHG emissions are reduced to 40 percent below the 1990 level by 2030. CARB updated its Climate Change Scoping Plan in December of 2017 to express the 2030 statewide target in terms of million metric tons of CO2e (MMTCO2e). Based on the emissions reductions directed by SB 32, the annual 2030 statewide target emissions level for California is 260 MMTCO2e.
2022 Scoping Plan
On December 15, 2022, CARB approved the 2022 Scoping Plan. The 2022 Scoping Plan provides a sector-by-sector guide on how to reduce man-made (i.e., anthropogenic) GHG emissions by 85 percent below 1990 levels and achieve carbon neutrality by 2045 over a 25-year horizon.39 The primary focus of the 2022 Scoping Plan is to reduce the usage of fossil fuels by electricizing the transportation sector, procuring electricity from renewable resources, phasing out natural gas in land use developments, and building transit-oriented communities that encourage multi-modal transportation. If implemented successfully, the 2022 Scoping Plan would not only reduce GHG emissions but also reduce smog-forming air pollution (NOx) by 71 percent and reduce fossil fuel demand by 94 percent. The 2022 Scoping Plan also details natural carbon capture and storage process along with mechanical carbon capture programs to address the remaining 15 of anthropogenic GHG emissions that will remain post-2045. To meet these goals, CARB also includes a revised goal of reducing state GHG emissions 48 percent below 1990 levels by 2030.

Senate Bill 375 and Plan Bay Area 2050
SB 375, known as the Sustainable Communities Strategy and Climate Protection Act, was signed into law in September 2008. SB 375 builds upon AB 32 by requiring CARB to develop regional GHG reduction targets for automobile and light truck sectors for 2020 and 2035. The per capita GHG emissions reduction targets for passenger vehicles in the Bay Area include a seven percent reduction by 2020 and a 15 percent reduction by 2035.
39 CARB. 2022 Scoping Plan for Achieving Carbon Neutrality. November 16, 2022. Page 5.

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Consistent with the requirements of SB 375, the Metropolitan Transportation Commission (MTC) partnered with the Association of Bay Area Governments (ABAG), BAAQMD, and the Bay Conservation and Development Commission to prepare the region’s Sustainable Communities Strategy (SCS) as part of the Regional Transportation Plan process. The SCS is referred to as Plan Bay Area 2050.

Plan Bay Area 2050 is a long-range plan for the nine-county San Francisco Bay Area that provides strategies that increase the availability of affordable housing, support a more equitable and efficient economy, improve the transportation network, and enhance the region’s environmental resilience. Plan Bay Area 2050 promotes the development of a variety of housing types and densities within identified priority development areas (PDAs). PDAs are areas generally near existing job centers or frequent transit that are locally identified for housing and job growth. 40 Play Bay Area 2050 includes a goal to increase the number of households that live within 0.5 mile of frequent transit by 2050. Plan Bay Area 2050 promotes strategies that support active and shared modes, combined with a transit-supportive land use patterns, which together are forecasted to lower the share of Bay Area residents that drive to work alone from 50 percent in 2015 to 33 percent in 2050, resulting in a decrease in GHG emissions. Plan Bay Area 2050 also includes goals to expand transportation demand management (TDM) initiatives that support and augment employers’ commute programs, providing a path to emissions reductions.

Senate Bill 100
SB 100, known as “The 100 Percent Clean Energy Act of 2018,” was adopted on September 10, 2018. The overall goal is to have all retail electricity sold in California procured from 100 percent renewable and zero-carbon resources by the year 2045. SB 100 also modified the renewables portfolio standard to 50 percent by 2025 and 60 percent by 2030.

Executive Order B-55-18 and Assembly Bill 1279
Executive Order B-55-18 was issued in September 2018. It ordered a new statewide goal of achieving carbon neutrality no later than 2045 and to maintain net negative emissions thereafter.

Assembly Bill 1279, also known as the California Climate Crisis Act, was approved in September 2022 and codifies the statewide goal set by Executive Order B-55-18 of achieving net zero GHG emissions no later than the year 2045 and maintaining net negative emissions thereafter. In addition, this bill has a statewide goal of reducing anthropogenic GHG emissions by 85 percent below the 1990 levels by the year 2045. The bill requires CARB to work with relevant state agencies to ensure that updates to the scoping plan identify and recommend measures to achieve these policy goals and implement strategies that enable CO2 removal solutions and carbon capture, utilization, and storage technologies in California. The bill requires CARB to submit an annual report. 40 Association of Bay Area Governments and Metropolitan Transportation Commission. Plan Bay Area 2050.

October 21, 2021. Page 20.

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Advanced Clean Cars II Regulation
To continue reducing air pollutants and GHG emissions in the transportation sector, CARB adopted the Advanced Clean Cars II Regulations (Resolution 22-12) in August 2022. The new regulation requires that by 2035 all new passenger cars, trucks, and SUVs sold in California will be zero emissions. This regulation bans the sale of new gasoline or diesel passenger cars, trucks, and SUVs in California from automakers. Beginning in the year 2026, 35 percent of new vehicle sales must be zero-emission vehicles and plug-in hybrid electric vehicles and that percentage will increase per year. By 2030, 70 percent of new vehicle sales will be zero-emissions vehicles and by the 2035 model year 100 percent of new vehicle sales will be zero-emissions. CARB will limit the use of plugin hybrid electric vehicles in the percentage requirements to keep the manufacturing of zeroemissions as the primary goal. Existing gasoline cars can continue to be driven and sold as used cars beyond 2035. CARB is required to track and report on the zero-emissions vehicle market development annually.

California Building Standards Code – Title 24 Part 11 and Part 6 The CALGreen Code is part of the California Building Standards Code under Title 24, Part 11.41 The CALGreen Code encourages sustainable construction standards that incorporate planning/design, energy efficiency, water efficiency resource efficiency, and environmental quality. These green building standard codes are mandatory statewide and are applicable to residential and nonresidential developments. The most recent CALGreen Code (2022 CALGreen Code) was effective as of January 2023.

The California Building Energy Efficiency Standards (California Energy Code) is under Title 24, Part 6 and is overseen by the CEC. This code includes design requirements to conserve energy in new residential and non-residential developments. This Energy Code is enforced and verified by cities during the planning and building permit process. The 2022 Energy Code replaced the 2019 Energy Code as of January 1, 2023. There are new 2022 standards for single-family residences, multi-family residences, and non-residential uses.42,43,44 Major changes include electric-ready single-family and multi-family residence and solar photovoltaic systems and energy storage systems for residential and commercial developments.

CALGreen also requires new construction and demolition projects to have a diversion of at least 65 percent of the construction waste generated.
41 Refer to https://www.dgs.ca.gov/BSC/Resources/Page-Content/Building-Standards-Commission-Resources-ListFolder/CALGreen#:~:text=CALGreen%20is%20the%20first%2Din,to%201990%20levels%20by%202020. 42 California Energy Commission. “2022 Building Energy Efficiency Standards What’s New for Single-Family Residential.” Revised July 15, 2022. Accessed January 18, 2023. https://www.energy.ca.gov/sites/default/files/2022-08/2022_Single-family_Whats_New_Summary_ADA.pdf. 43 California Energy Commission. “2022 Building Energy Efficiency Standards What’s New for Multifamily.” Revised August 4, 2022. Accessed January 18, 2023. https://www.energy.ca.gov/sites/default/files/2022- 08/2022_Multifamily_Whats_new_Summary_ADA.pdf.
44 California Energy Commission. “2022 Building Energy Efficiency Standards What’s New for Nonresidential.” Revised August 4, 2022. Accessed January 18, 2023. https://www.energy.ca.gov/sites/default/files/2022- 08/2022_Nonresidential_Whats_New_Summary_ADA.pdf.

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Regional and Local
2017 Clean Air Plan
To protect the climate, the 2017 Clean Air Plan prepared by BAAQMD includes control measures designed to reduce emissions of methane and other super-GHGs that are potent climate pollutants in the near-term, and to decrease emissions of carbon dioxide by reducing fossil fuel combustion.

BAAQMD CEQA Thresholds for Evaluating Climate Impacts from Land Use Projects and Plans In April 2022, the BAAQMD Board of Directors adopted the Justification Report: CEQA Thresholds for Evaluating the Significance of Climate Impacts from Land Use Projects and Plans. The report includes BAAQMD’s thresholds of significance for use in determining whether a proposed project or plan will have a significant impact on climate change and provides substantial evidence to support these thresholds. The April 2022 GHG thresholds replace the GHG thresholds set forth in the May 2017 BAAQMD CEQA Air Quality Guidelines and represent what is required of new land use development projects and plans to achieve California’s long-term climate goal of carbon neutrality by 2045.

Daly City General Plan
The General Plan includes policies for the purpose of avoiding or mitigating impacts resulting from development projects within the City. The following policies are specific to GHGs and are applicable to the proposed project.

General Plan Policies and Tasks
Policy Description
Policy HE-24 Mandate the inclusion of green building techniques into most new construction.

Policy HE-28 Promote alternative sources of energy in all homes.

Daly City Reach Code
In April 2021, the City Council of Daly City adopted a reach code ordinance to electrify buildings and vehicles in new construction. The new requirements are intended to result in safer and more comfortable buildings, increase electric vehicle charging infrastructure, and reduce carbon emissions. The ordinance requires all new buildings to be all-electric with some exceptions, such as non-residential buildings containing a commercial kitchen that may contain non-electric cooking appliances. The ordinance also requires electric vehicle charging infrastructure beyond that required in the 2019 California Green Building Standards Code.

Daly City’s Green Vision
Daly City’s Green Vision, A Climate Action Plan (CAP) for 2011-2020 and Beyond, was adopted in December 2010. Daly City’s Green Vision guides the City towards a sustainable future that reduces GHG emissions from current levels, while promoting economic prosperity for present and future

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generations. The Green Vision identifies ten goals and seeks to achieve these goals through costeffective strategies by the year 2020. The GHG reduction goals include adopting a general plan with measurable policies for sustainable development, reducing energy use in buildings, reducing transportation emissions, reducing solid waste disposal, and GHG emissions reductions from municipal operations. Daly City completed an update to the General Plan which incorporated these goals in March 2013.

Existing Conditions
Unlike emissions of criteria and toxic air pollutants, which have regional and local impacts, emissions of GHGs have a broader, global impact. Global warming is a process whereby GHGs accumulating in the upper atmosphere contribute to an increase in the temperature of the earth and changes in weather patterns. The project site is currently vacant and used as a construction staging area and for vehicle storage. GHG emissions are generated from vehicle trips to and from the site.

4.8.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
a) Generate greenhouse gas (GHG) emissions,
either directly or indirectly, that may have a
significant impact on the environment?
b) Conflict with an applicable plan, policy or
regulation adopted for the purpose of reducing
the emissions of GHGs?
The BAAQMD threshold of significance for land use development projects is to either A) incorporate project design elements and achieve a reduction in project-generated vehicle miles traveled (VMT) below the regional average consistent with the current version of the California Climate Change Scoping Plan or B) be consistent with a local GHG reduction strategy that meets the criteria of CEQA Guidelines Section 15183.5 (b).

Project-Level Impact
Pursuant with BAAQMD, for land use projects to result in a less than significant GHG emissions impact, the land use project would need to comply with threshold A or B below.

A. Projects must include, at a minimum, the following project design elements:

1. Buildings
a. The project will not include natural gas appliances or natural gas plumbing (in both residential and nonresidential development).

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b. The project will not result in any wasteful, inefficient, or unnecessary energy usage as determined by the analysis required under CEQA Section 21100(b)(3) and Section 15126.2(b) of the State CEQA Guidelines.

2. Transportation
a. Achieve a reduction in project-generated vehicle miles traveled (VMT) below the regional average consistent with the current version of the California Climate Change Scoping Plan (currently 15 percent) or meet a locally adopted Senate Bill 743 VMT target, reflecting the recommendations provided in the Governor’s Office of Planning and Research's Technical Advisory on Evaluating Transportation Impacts in CEQA:
i. Residential projects: 15 percent below the existing VMT per capita ii. Office projects: 15 percent below the existing VMT per employee iii. Retail projects: no net increase in existing VMT
a. Achieve compliance with off-street electric vehicle requirements in the most recently adopted version of CALGreen Tier 2.

B. Be consistent with a local GHG reduction strategy that meets the criteria under State CEQA Guidelines Section 15183.5(b).
a) Would the project generate GHG emissions, either directly or indirectly, that may have a significant impact on the environment?
Construction
Construction of the project would generate approximately 1,574 metric tons (MT) of CO2e from onsite operation of construction equipment, vendor and hauling truck trips, and worker trips.45 Neither the City nor BAAQMD have an adopted threshold of significance for construction related GHG emissions. There is nothing atypical or unusual about the project’s construction. In addition, the project would implement mitigation measure MM AIR-1.1 to restrict idling of construction equipment and utilize energy-efficient equipment, which would in turn reduce GHG emissions. For these reasons, the project’s construction GHG emissions are less than significant. (Less than Significant Impact with Mitigation Incorporated)
Operation
Pursuant to the BAAQMD thresholds of significance, if a land use project meets the following criteria, it would have a less than significant greenhouse gas impact; • Projects must either not include natural gas appliances or plumbing; • Not result in wasteful, inefficient, or unnecessary energy use; 45 Illingworth & Rodkin, Inc. 2150 Geneva Avenue Battery Storage Construction Health Risk Assessment. April 29, 2024.

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• Achieve a 15 percent reduction in project-generated vehicle miles traveled (VMT) below the regional average; and
• Include off-street electric vehicle infrastructure consistent with CALGreen Tier 2 requirements.

The project would not include any natural gas and, as discussed in Section 4.6 Energy, would comply with Title 24 and CALGreen energy efficiency measures, as well as City of Daly City Green Vision requirements. In addition, the project would achieve a VMT rate of 15 percent below the regional average (see Section 4.17 Transportation). Since the project would be monitored remotely and not have any permanent employees, it does not propose any parking spaces for vehicles; thus, it is not subject to off-street electric vehicle infrastructure requirements. For these reasons, the project would not use energy in a wasteful or inefficient manner and would meet current BAAQMD GHG thresholds; therefore, the project would result in a less than significant operational GHG emissions impact. (Less than Significant Impact)
b) Would the project conflict with an applicable plan, policy, or regulation adopted for the purpose of reducing the emissions of GHGs?
2022 Scoping Plan
The 2022 Scoping Plan is a document that plans how the State will achieve carbon neutrality by 2045 and reduce anthropogenic emissions to 85 percent below 1990 levels by 2045. The BAAQMD qualitative thresholds were designed to ensure future projects complete their “fair share” of implementing carbon reduction design features to help achieve the State’s carbon neutrality goal. A project that can meet the energy and transportation design elements outlined in the BAAQMD thresholds or is consistent with a qualified GHG reduction strategy is then consistent with the goals outlined in the 2022 Scoping Plan and would not hinder the State from achieving carbon neutrality.

As described in Checklist Question a), the project would be consistent with the BAAQMD GHG energy and transportation design thresholds. In addition, the project itself, an energy storage project, would help the State achieve its goal of carbon neutrality. Therefore, the proposed project would not exacerbate the cumulative GHG problem and the project’s contribution would not be cumulatively considerable as it does not impede California’s ability to achieve carbon neutrality. 2017 Clean Air Plan
The BAAQMD 2017 CAP focuses on two goals: protecting public health and protecting the climate.

The 2017 CAP includes air quality standards and control measures designed to reduce emissions of methane, carbon dioxide, and other super-GHGs. As discussed in Section 4.3 Air Quality under Impact AIR-1, the project is consistent with the 2017 Clean Air Plan because the project would not exceed BAAQMD criteria air pollutant emissions thresholds during construction with implementation of BAAQMD BMPs (MM AIR-1.1) and during operation. In addition, the project construction would implement mitigation measure MM AQ-1.1 by using energy-efficient alternative

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fueled construction equipment to reduce air pollutant (DPM and PM2.5) emissions. For these reasons, the proposed project would not conflict with the 2017 CAP goal to reduce GHG emissions. (Less than Significant Impact with Mitigation Incorporated) Daly City General Plan
The project would be consistent with General Plan policy HE-24 because the project would comply with the requirements of the Green Building Ordinance and the Title 24 Building Code, which requires proposed buildings to be constructed with various measures that would reduce GHG emissions from the project. The project would be consistent with General Plan policy HE-28 because the project proposes to store electricity generated by renewable sources to be used as an alternative energy source. For these reasons, the project would be consistent with the City’s General Plan. (Less than Significant Impact)

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Hazards and Hazardous Materials
The following discussion is based in part on a Phase I Environmental Site Assessment (ESA) prepared by Alta Environmental in September 2020 and a Hazards Analysis Final Report prepared by MRS Environmental in September 2023. These documents are included as Appendix D and Appendix E to this Initial Study, respectively.

4.9.1 Environmental Setting
Regulatory Framework
Overview
The storage, use, generation, transport, and disposal of hazardous materials and waste are highly regulated under federal and state laws. In California, the EPA has granted most enforcement authority over federal hazardous materials regulations to the California Environmental Protection Agency (CalEPA). In turn, local agencies have been granted responsibility for implementation and enforcement of many hazardous materials regulations under the Certified Unified Program Agency (CUPA) program.

Worker health and safety and public safety are key issues when dealing with hazardous materials.

Proper handling and disposal of hazardous material is vital if it is disturbed during project construction. Cal/OSHA enforces state worker health and safety regulations related to construction activities. Regulations include exposure limits, requirements for protective clothing, and training requirements to prevent exposure to hazardous materials. Cal/OSHA also enforces occupational health and safety regulations specific to lead and asbestos investigations and abatement.

Federal and State
Federal Aviation Regulations Part 77
Federal Aviation Regulations, Part 77 Objects Affecting Navigable Airspace (FAR Part 77) sets forth standards and review requirements for protecting the airspace for safe aircraft operation, particularly by restricting the height of potential structures and minimizing other potential hazards (such as reflective surfaces, flashing lights, and electronic interference) to aircraft in flight. These regulations require that the Federal Aviation Administration (FAA) be notified of certain proposed construction projects located within an extended zone defined by an imaginary slope radiating outward for several miles from an airport’s runways, or which would otherwise stand at least 200 feet in height above the ground.

Resource Conservation and Recovery Act
The Resource Conservation and Recovery Act (RCRA), enacted in 1976, is the principal federal law in the United States governing the disposal of solid waste and hazardous waste. RCRA gives the EPA the authority to control hazardous waste from the “cradle to the grave.” This includes the

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generation, transportation, treatment, storage, and disposal of hazardous waste. RCRA also sets forth a framework for the management of non-hazardous solid wastes.

The Federal Hazardous and Solid Waste Amendments (HSWA) are the 1984 amendments to RCRA that focused on waste minimization, phasing out land disposal of hazardous waste, and corrective action for releases. Some of the other mandates of this law include increased enforcement authority for the EPA, more stringent hazardous waste management standards, and a comprehensive underground storage tank program.46
Government Code Section 65962.5
Section 65962.5 of the Government Code requires CalEPA to develop and update a list of hazardous waste and substances sites, known as the Cortese List. The Cortese List is used by state and local agencies and developers to comply with CEQA requirements. The Cortese List includes hazardous substance release sites identified by the Department of Toxic Substances Control (DTSC) and State Water Resources Control Board (SWRCB).
47 Toxic Substances Control Act
The Toxic Substances Control Act (TSCA) of 1976 provides the EPA with authority to require reporting, record-keeping and testing requirements, and restrictions relating to chemical substances and/or mixtures. Certain substances are generally excluded from TSCA, including, among others, food, drugs, cosmetics, and pesticides. The TSCA addresses the production, importation, use, and disposal of specific chemicals including polychlorinated biphenyls (PCBs), asbestos, radon, and lead-based paint.

California Accidental Release Prevention Program
The California Accidental Release Prevention (CalARP) Program aims to prevent accidental releases of regulated hazardous materials that represent a potential hazard beyond the boundaries of a property. Facilities that are required to participate in the CalARP Program use or store specified quantities of toxic and flammable substances (hazardous materials) that can have off-site consequences if accidentally released. The San Mateo County Environmental Health Department reviews CalARP risk management plans as the CUPA.

Asbestos-Containing Materials
Friable asbestos is any asbestos-containing material (ACM) that, when dry, can easily be crumbled or pulverized to a powder by hand, allowing the asbestos particles to become airborne. Common examples of products that have been found to contain friable asbestos include acoustical ceilings, plaster, wallboard, and thermal insulation for water heaters and pipes. Common examples of non46 United States Environmental Protection Agency. “Summary of the Resource Conservation and Recovery Act.” Accessed April 5, 2023. https://www.epa.gov/laws-regulations/summary-resource-conservation-and-recovery-act. 47 California Environmental Protection Agency. “Cortese List Data Resources.” Accessed April 5, 2023. https://calepa.ca.gov/sitecleanup/corteselist/.

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friable ACMs are asphalt roofing shingles, vinyl floor tiles, and transite siding made with cement.

The EPA phased out use of friable asbestos products between 1973 and 1978. National Emission Standards for Hazardous Air Pollutants (NESHAP) guidelines require that potentially friable ACMs be removed prior to building demolition or remodeling that may disturb the ACMs.

CCR Title 8, Section 1532.1
The United States Consumer Product Safety Commission banned the use of lead-based paint in 1978. Removal of older structures with lead-based paint is subject to requirements outlined by the Cal/OSHA Lead in Construction Standard, CCR Title 8, Section 1532.1 during demolition activities.

Requirements include employee training, employee air monitoring, and dust control. If lead-based paint is peeling, flaking, or blistered, it is required to be removed prior to demolition.

Hazardous Materials Business Plan
California’s Health and Safety Code requires that any business that handles hazardous materials prepare a hazardous materials business plan (HMBP), which must include the following:
• Details, including floor plans, of the facility and business conducted at the site; • An inventory of hazardous materials that are handled or stored on-site; • An emergency response plan; and
• A safety and emergency response training program for new employees with annual refresher courses.

The goal of the HMBP program is to protect human and environmental health from adverse effects as a result of the storage or possible release of hazardous materials. This is done primarily by documenting significant amounts of hazardous materials so that emergency responders can effectively protect the public.

Regional
Municipal Regional Permit Provision C.12.f
Polychlorinated biphenyls (PCBs) were produced in the United States between 1955 and 1978 and used in hundreds of industrial and commercial applications, including building and structure materials such as plasticizers, paints, sealants, caulk, and wood floor finishes. In 1979, the EPA banned the production and use of PCBs due to their potential harmful health effects and persistence in the environment. PCBs can still be released to the environment today during demolition of buildings that contain legacy caulks, sealants, or other PCB-containing materials.

With the adoption of the San Francisco Bay Region Municipal Regional Stormwater National Pollutant Discharge Elimination System (NPDES) Permit (MRP) by the San Francisco Bay Regional Water Quality Control Board on November 19, 2015, Provision C.12.f requires that permittees develop an assessment methodology for applicable structures planned for demolition to ensure

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PCBs do not enter municipal storm drain systems.48 Municipalities throughout the Bay Area are currently modifying demolition permit processes and implementing PCB screening protocols to comply with Provision C.12.f. Buildings constructed between 1950 and 1980 that are proposed for demolition must be screened for the presence of PCBs prior to the issuance of a demolition permit.

San Mateo County Comprehensive Airport Land Use Plan
Daly City is within the jurisdiction of the San Francisco Airport (SFO) Land Use Plan component of the San Mateo County Comprehensive Airport Land Use Compatibility Plan (ALUCP), adopted in December 1996 and updated in 2001. Established in the CLUP are procedures used by the San Mateo City and County Association of Governments (C/CAG) to review land use decisions in the vicinity of San Mateo County airports. Airport planning boundaries define where height, noise and safety standards, policies, and criteria are applied to certain proposed land use policy actions.

Local
Daly City General Plan
The General Plan includes policies and tasks for the purpose of avoiding or mitigating impacts resulting from development projects within the City. The following policies and task are specific to hazards and hazardous materials and are applicable to the proposed project.

General Plan Policies and Tasks
Policy/Task Description
Policy LU-18 Development activities shall not be allowed to significantly disrupt the natural or urban environment and all reasonable measures shall be taken to identify and prevent or mitigate potentially significant effects.

Task LU-18.1 Ensure that potentially significant environmental impacts associated with development proposals are properly mitigated through conditions of approval, mitigation measures, project design, or project denial. In cases where the impacts may not be completely preventable but will not significantly disrupt the community, the City may recognize that the benefits of a project may outweigh the environmental consequences. In no case shall the City approve a project that endangers the health, safety, or welfare of the public.

Policy SE-4.1 Support efforts to locate, regulate, and maintain information regarding hazardous materials located or transported within the City.

Policy SE-4.2 Cooperate with the County of San Mateo in the regulation of hazardous materials and transportation in the Fire Prevention Services Bureau within the City. 48 California Regional Water Quality Control Board. San Francisco Bay Region Municipal Regional Stormwater NPDES Permit. November 2015.

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Existing Conditions
On-Site Conditions
BESS and Substation
The project site was originally developed in 1938 with a grandstand and greyhound racetrack associated with the adjacent Cow Palace. Between 1946 and 1956, the site was redeveloped with a drive-in movie theater. In 2002, the structures on-site were demolished and the site has remained vacant since. The site is currently used as a construction staging area and for vehicle storage.

According to the RCRA Small Quantity Generator database, the site was previously listed as a generator of hazardous waste under the facility name North Bay Pacific Theater. The type of hazardous waste was not listed, but no violations, leaks, or releases were reported. A review of federal, state, and local databases reveal there are no known hazardous materials spills or leaks at the project site.

Transmission Line and PG&E Martin Substation
A review of federal, state, and local databases reveals there is only one hazardous materials site along the proposed transmission line routes. The PG&E Martin Substation (end point of the proposed transmission line) is listed on the Cortese List due to a gas manufacturing plant (MGP) using oil as a feedstock operated at this site between the 1905 and 1916. 49 When it was dismantled,
the soil beneath the Site became impacted by MGP residues including polycyclic aromatic hydrocarbons (PAHs). The contaminated soil was never removed and the site is subject to a land use covenant between the Department of Toxic Substances Control (DTSC) and PG&E. The land use covenant restricts certain land uses on the site and requires PG&E to submit project-specific Soil Management and Air Monitoring Plans to DTSC for any earthmoving projects.

Off-Site Conditions
A review of federal, state, and local databases shows there are three closed, leaking underground storage tank (LUST) cases near the project site. These LUST cases were located at the Cow Palace (LUST case closed as of 1995), 2750 Geneva Avenue (LUST case closed as of 2015), and at the intersection of Carter Street and Martin Street southwest of the project site (LUST case closed as of 1993). Based on location, distance, regulatory status, and/or apparent groundwater gradient, the Phase I ESA determined these sites were not of environmental concern. Refer to Appendix D for more information regarding nearby off-site sources of contamination.

Airport Hazards
The project site is approximately five miles north from the San Francisco International Airport (SFO) The project site is not located within the SFO CLUP Airport Influence Area B, safety compatibility zones, or Community Noise Equivalent Level (CNEL) noise contours for the airport. 49 Department of Toxic Substances Control. “EnviroStor”. Accessed April 5, 2023. https://www.envirostor.dtsc.ca.gov/public/profile_report?global_id=41360100.

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Wildland Fire Hazards
The project site is in a Local Responsibility Area (LRA) which has not been mapped by CAL FIRE as being within a Very High Fire Hazard Severity Zone (refer to Section 3.20 Wildfire). San Bruno Mountain is identified as a Moderate Fire Hazard Severity Zone in a State Responsibility Area (SRA).50

4.9.2 Impact Discussion
Potentially
Significant
Impact
Less than
Significant with
Mitigation
Incorporated
Less than
Significant
Impact
No Impact
Would the project:
a) Create a significant hazard to the public or the
environment through the routine transport, use,
or disposal of hazardous materials?
b) Create a significant hazard to the public or the
environment through reasonably foreseeable
upset and accident conditions involving the
release of hazardous materials into the
environment?
c) Emit hazardous emissions or handle hazardous
or acutely hazardous materials, substances, or
waste within one-quarter mile of an existing or
proposed school?
d) Be located on a site which is included on a list of
hazardous materials sites compiled pursuant to
Government Code Section 65962.5 and, as a
result, will it create a significant hazard to the
public or the environment?
e) For a project located within an airport land use
plan or, where such a plan has not been
adopted, within two miles of a public airport or
public use airport, result in a safety hazard or
excessive noise for people residing or working in
the project area?
f) Impair implementation of, or physically interfere
with, an adopted emergency response plan or
emergency evacuation plan?
g) Expose people or structures, either directly or
indirectly, to a significant risk of loss, injury or
death involving wildland fires?
50 CAL FIRE. “Fire Hazard Severity Zones in State Responsibility Area.” Accessed August 9, 2023. https://calfireforestry.maps.arcgis.com/apps/webappviewer/index.html?id=988d431a42b242b29d89597ab693d008.

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a) Would the project create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? No hazardous materials, liquids, or chemicals that would create a significant hazard are required to construct or operate the BESS. The chemicals associated with the lithium ion batteries that would be housed in seismically anchored, non-flammable purpose-built enclosures are contained within the individual sealed battery cells. Risk of exposure occurs only if the battery is mechanically or electrically abused or altered, leading to rupture of the cells. The batteries are not considered hazardous as the electrolyte is non-toxic and they do not contain cobalt or other toxic elements.

The battery system is designed with automatic software that monitors the system and can take certain batteries offline or power the whole system down (such as in the case of smoke or fire detection, loss of grid power, or other similar high-level threat). The battery system would be designed such that the batteries are isolated from each other, the power conversion system, and the grid. Additionally, on-call local contractors will be available 24 hours a day, 365 days a year to take action in the event of an issue and troubleshoot any issues that arise on-site.

During operation of the energy storage facility, some electronic waste would be generated from battery repair and maintenance work. Waste will be disposed of in accordance with applicable local, state, and federal requirements. For the reasons described above, the project would not create a significant hazard through routine transport, use, or disposal of hazardous materials.

The transformers located within the BESS and substation will use mineral transformer oil in transformers, high-voltage capacitors, fluorescent lamp ballasts, and high-voltage switches, and circuit breakers. A Spill Control and Countermeasure Plan and/or HMBP would be prepared for the site describing emergency procedures, secondary containment for the oil-filled transformers, and clean-up requirements. Compliance with these documents would ensure that a release of transformer oil at the substation would not create a significant hazard to the public or the environment through routine transport, use, or disposal of hazardous materials. (Less than Significant Impact)
b) Would the project create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment?
Soil Contaminants
As discussed under Section 4.9.1.2 Existing Conditions, there are no hazardous materials sites on the project site or along the proposed transmission line routes, except at the end point of the PG&E Martin Substation. Soil in and around the PG&E Martin Substation may contain PAH residues from a past MGP. If not handled correctly during excavation, soils containing these chemicals could be

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disturbed resulting in a release that could significantly impact the environment, project construction workers, or the public.

Impact HAZ-1: Construction of the transmission line near the PG&E Martin Substation could result in the release of contaminated soil. (Significant Impact) Mitigation Measure: The project shall implement the following mitigation measure to reduce the possible release of contaminated soil to a less than significant level:

MM HAZ-1.1: Prior to any grading, excavation, or construction of the transmission line, the Department of Toxic Substances Control (DTSC) shall be notified of the proposed construction activities at the PG&E Martin Substation. Per the Land Use Covenant for the PG&E Martin Substation, a Soil Management Plan (SMP) and Health and Safety Plan (HSP) shall be prepared by a qualified environmental professional and submitted to DTSC for review and approval. The SMP and HSP and evidence of regulatory oversight shall be provided to the Director of Economic and Community Development.

With implementation of MM HAZ-2.1, impacts associated with the construction of the transmission line would be reduced to a less than significant level. (Less than Significant Impact with Mitigation Incorporated)
Project Operations
A Hazards Analysis Final Report was prepared for the project to evaluate the reasonable, worst-case scenario, defined as the BESS control system failing or a puncture of one of the battery enclosures.

The project includes an Emergency Response Guide for the BESS detailing hazards, firefighting measures, shutting down and disposal of materials and also recommends a number of firefighting measures. Fire prevention systems would include proposed cabinets designed to limit or eliminate the potential for fire to spread from one cabinet to another, infrared camera monitoring at the site for external fire detection and on-site fire hydrants. Additional items include video monitoring of the site, site lighting, site security, training, fire access planning and fire water flow design. The Battery Management System would monitor all cell voltages, currents and temperatures and shut down equipment if unsafe conditions are detected with monitoring and control by the Tesla Operations Center.

As determined in the Hazards Analysis Report for the Project, the reasonable worst-case battery cell malfunction scenarios would result in manageable hazards, with ground-level toxic, thermal and deflagration hazards remaining on-site (see Appendix E for detailed analysis). In the event of an onsite battery malfunction resulting in the release of toxic gas, resulting toxic gas plumes would not result in acute concentrations of toxins off-site. In the event of a fire, worst-case ground level smoke levels would extend as far as 60 feet from the battery location. The closest batteries to the property line are located approximately 54 feet from the northern property line adjacent to the Cow Palace parking lot, meaning ground level smoke impacts may extend six feet into the parking

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lot. The potential for smoke impact to create a significant hazard to the public using the Cow Palace parking lot is limited given the infrequent use of the lot, limited potential for a worst-case fire and smoke scenario, and minimal extent of smoke impact onto the adjacent property. The potential for flammable vapors to be released due to a worst-case battery malfunction was also modeled and flames and explosion impacts were found to extend approximately 41 feet and, therefore, remain on-site. Thermal radiation from a fire due to battery malfunction was modeled and found not to extend beyond the property line.

As described above, modeled worst-case scenarios for battery malfunction on the site show that a hazardous materials release would result in a less than significant hazard to the public or environment. (Less than Significant Impact)
c) Would the project emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? The nearest school to the project site is Bayshore Elementary school, located adjacent to the proposed transmission line route along Ottilia Street. As discussed under Impact HAZ-1, the project would not emit hazardous emissions and would handle all hazardous materials in compliance with federal, state, and county regulations. In addition, the project would implement mitigation measure MM HAZ-1.1 during construction of the proposed transmission line to ensure that hazardous materials and soils would not create a significant hazard to the public or environment. (Less than Significant Impact with Mitigation Incorporated)
d) Would the project be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? As discussed in Section 4.9.1.2 Existing Conditions, the end of the proposed transmission line routes is located on the PG&E Martin Substation site, which is listed on the Cortese List. As discussed under Impact HAZ-1 above, the project would implement mitigation measure MM HAZ-1.1 and shall implement a SMP and HSP to protect the environment, project construction workers, and the public from an accidental release of hazardous materials. (Less than Significant Impact with Mitigation Incorporated)
e) If located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard or excessive noise for people residing or working in the project area? The project site is located approximately five miles north of the SFO and is not within the SFO CLUP Airport Influence Area B, safety compatibility zones, or CNEL noise contours for the airport. (No Impact)

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f) Would the project impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan?
The proposed project would not impair or physically interfere with any adopted emergency response or evacuation plan. All project development would be constructed to comply with all applicable state and local building and fire codes. During construction and operation, roadways would not be blocked such that emergency vehicles would be unable to access the site or surrounding properties. During operation, emergency ingress and egress to the project site would be provided by the surrounding roadways. Therefore, the proposed project would not impair the implementation of or physically interfere with any emergency response or evacuation plan. (Less than Significant Impact)
g) Would the project expose people or structures, either directly or indirectly, to a significant risk of loss, injury, or death involving wildland fires? The project site is located in an urbanized area of Daly City and is located near a state responsibility area that is classified as a moderate fire hazard severity zone. The adopted Local Responsibility Area maps do not identify the site as being in a fire hazard severity zone. All project development would be constructed in accordance with current state and local building and fire codes to ensure structural stability and safety and the final site design would be reviewed by the Daly City Fire Department for consistency with applicable fire department standards. The project, therefore, would not expose people or structures to a significant risk of loss, injury, or death involving wildland fires. (Less than Significant Impact)

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Hydrology and Water Quality

4.10.1 Environmental Setting
Regulatory Framework
Federal and State
The federal Clean Water Act and California’s Porter-Cologne Water Quality Control Act are the primary laws related to water quality in California. Regulations set forth by the Environmental Protection Agency (EPA) and the State Water Resources Control Board (SWRCB) have been developed to fulfill the requirements of this legislation. EPA regulations include the National Pollutant Discharge Elimination System (NPDES) permit program, which controls sources that discharge pollutants into the waters of the United States (e.g., streams, lakes, bays, etc.). These regulations are implemented at the regional level by the Regional Water Quality Control Boards (RWQCBs). The project site is within the jurisdiction of the San Francisco Bay RWQCB.

Under Section 303(d) of the federal Clean Water Act, the SWRCB and RWQCBs are required to identify impaired surface water bodies that do not meet water quality standards and develop total maximum daily loads (TMDLs) for contaminants of concern. The list of the state’s identified impaired surface water bodies, known as the “303(d) list” can be found on the on the SWRCB’s website.51
National Flood Insurance Program
The Federal Emergency Management Agency (FEMA) established the National Flood Insurance Program (NFIP) to reduce impacts of flooding on private and public properties. The program provides subsidized flood insurance to communities that comply with FEMA regulations protecting development in floodplains. As part of the program, FEMA publishes Flood Insurance Rate Maps (FIRMs) that identify Special Flood Hazard Areas (SFHAs). An SFHA is an area that would be inundated by the one-percent annual chance flood, which is also referred to as the base flood or 100-year flood.

Statewide Construction General Permit
The SWRCB has implemented an NPDES General Construction Permit for the State of California (Construction General Permit). For projects disturbing one acre or more of soil, a Notice of Intent (NOI) must be filed with the RWQCB by the project sponsor, and a Storm Water Pollution Prevention Plan (SWPPP) must be prepared by a qualified professional prior to commencement of construction and filed with the RWQCB by the project sponsor. The Construction General Permit includes requirements for training, inspections, record keeping, and, for projects of certain risk 51 California State Water Resources Control Board. “2020-2022 California Integrated Report (Clean Water Act Section 303(d) List and 305(b) Report).” May 11, 2022. Accessed April 12, 2023. https://www.waterboards.ca.gov/water_issues/programs/water_quality_assessment/2020_2022_integrated_rep ort.html.