Agenda — Hesperia City Council, April 21, 2026 (part 2 of 3)

City of Hesperia 29 Draft 2026 Annual Action Plan

What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
93 Agency/ Group/ Organization Save the Brave US
Type Services-Health
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.

BROADBAND
94 Agency/ Group/ Organization Inland Empire Regional Broadband Consortium Type Broadband Advocated
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
95 Agency/ Group/ Organization CA Emerging Technology Fund (CETF) Type Broadband Advocate
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
96 Agency/ Group/ Organization Frontier
Type Broadband ISP
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
97 Agency/ Group/ Organization HighSpeedInternet.com
Type Broadband ISP
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.

Page 175 ends

City of Hesperia 30 Draft 2026 Annual Action Plan

98 Agency/ Group/ Organization Spectrum Internet Provider Type Broadband ISP
What section of the Plan was
addressed by Consultation?
Other-Non-Housing Community Development

REGIONAL PLANNING
99 Agency/ Group/ Organization Inland Empire Economic Partnership (IEEP) Type Regional Organization; Planning Organization
What section of the Plan was
addressed by Consultation? Economic Development
How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
100

Agency/ Group/ Organization San Bernardino Associated of Government (SANBAG) Type Regional Organization; Planning Organization
What section of the Plan was
addressed by Consultation?
Housing Need Analysis; Homelessness Strategy
Non-Homeless Needs Assessment; Other-Non-Housing
Community Development
How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
101
Agency/ Group/ Organization Victor Valley Transit Authority Type Planning Organization; Regional Organization
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.

CIVIC & BUSINESS LEADERS
102
Agency/ Group/ Organization City of Fontana Chamber of Commerce Type Business Leader
What section of the Plan was
addressed by Consultation? Economic Development
How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
103
Agency/ Group/ Organization City of Hesperia Chamber of Commerce Type Business Leader
What section of the Plan was
addressed by Consultation? Economic Development

Page 176 ends

City of Hesperia 31 Draft 2026 Annual Action Plan

How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
104
Agency/ Group/ Organization Inland Empire SBDC
Type Services-Employment; Business Leader
What section of the Plan was
addressed by Consultation? Economic Development
How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
105
Agency/ Group/ Organization Moses House Ministries
Type Civic Leader
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
106
Agency/ Group/ Organization National Council of Negro Women, Bethune Center Type Services-Employment
What section of the Plan was
addressed by Consultation? Economic Development, Business Leader How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
107
Agency/ Group/ Organization Shear Realty
Type Business Leader
What section of the Plan was
addressed by Consultation? Economic Development
How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
108
Agency/ Group/ Organization Today's Woman Foundation
Type Civic Leader
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
109 Agency/ Group/ Organization City of Upland Chamber of Commerce Type Business Leader

Page 177 ends

City of Hesperia 32 Draft 2026 Annual Action Plan

What section of the Plan was
addressed by Consultation? Economic Development
How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
110
Agency/ Group/ Organization Wal Mart
Type Business Leader
What section of the Plan was
addressed by Consultation? Other-Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.

HOUSING & COMMUNITY DEVELOPMENT
111
Agency/ Group/ Organization California Department of Fish and Wildlife Type Public Land Agency; State Government
What section of the Plan was
addressed by Consultation? Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
112
Agency/ Group/ Organization California Desert District Office, US Department of the Interior: Bureau of Land Management
Type Public Land Agency; Federal Government
What section of the Plan was
addressed by Consultation? Non-Housing Community Development How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
113
Agency/ Group/ Organization Federal Emergency Management Agency Type Floodplain Management Agency; Emergency Management Agency; Federal Government
What section of the Plan was
addressed by Consultation?
Housing Need Assessment; Non-Housing Community
Development
How was the Agency/ Group/
Organization consulted and what
are the anticipated outcomes of
the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs and
priorities within the community, the Consolidated Plan
process included consultation and engagement with City
residents, service providers, and selected departments
through surveys, meetings, and email.
114
Agency/ Group/ Organization Foothill AIDS Project
Type Service-HIV/AIDS; Services-Housing
What section of the Plan was
addressed by Consultation? Housing Need Assessment; Non-Homeless Needs

Page 178 ends

City of Hesperia 33 Draft 2026 Annual Action Plan

Identify any Agency Types not consulted and provide rationale for not consulting The City maintains a comprehensive list of agencies, organizations and other stakeholders and invited representatives from each entity to participate in the planning process at multiple points in the planning process. If an agency did not attend meetings or participate in surveys, it was done so by the agency’s choice.

If an agency or organization was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Economic Development Division at (760) 947-1202.

Page 179 ends

City of Hesperia 34 Draft 2026 Annual Action Plan

Other local/regional/state/federal planning efforts considered when preparing the Plan
Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of
Care
Human Services Office
of Homeless Services
The Strategic Plan goal to provide homeless
services is consistent with the County of San
Bernardino Homelessness Action Plan.
2021-2029
Housing
Element
City of Hesperia The Strategic Plan is in alignment with the Housing Element of the City’s General Plan.

Table 4 - Other Local / Regional / Federal Planning Efforts

Page 180 ends

City of Hesperia 35 Draft 2026 Annual Action Plan

AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting
In preparation for the Consolidated Plan, the City followed the established processes of the Citizen Participation Plan to ensure broad community engagement. These activities were coordinated and implemented by the Economic Development Division . The City sought input from its residents and stakeholders by circulating surveys about community needs. The surveys were available online and in hardcopy format. The resident survey was available in English and Spanish; the Stakeholder survey was available in English.

The City received a total of 207 responses from residents and 24 from stakeholders. The survey results and the survey forms are included in Appendix B of the 2025 -2029 Consolidated Plan.

In accordance with the City’s Citizen Participation Plan, residents and stakeholders were able to participate in the development of the 2025‐2029 Consolidated Plan through public hearings, meetings, and the 30 -day review and comment period. The City engaged residents and organizations through surveys and publicly noticed hearing and meetings held at the beginning of the Consolidated Planning p rocess. These activities conducted in fall 2024, were intended to gather input on the City’s housing and community development needs. The first public hearing was held on November 19, 2024 at 6:30 PM and the public meetings were held on October 28 at 10:00 AM and 5:00 PM at the Hesperia Public Library. The public hearing to adopt the Consolidated Plan and first-year Annual Action Plan was held April 15, 2025, at 6:30 PM, at City Hall.

In accordance with the City’s Citizen Participation Plan, all public notices for public hearings and the 30 -day comment period were published in a medium of general circulation in the City. Additionally, the City used social media platforms such as Facebook and Instagram to advertise the opportunities to participate. At each step in the process, the City was careful to ensure that low ‐ and moderate ‐income residents, members of minority groups, agencies involved in the provision of services to these populations, and others who are directly impacted by the programs and activit ies supported by the Consolidated Plan programs had the opportunity to be actively involved.

Page 181 ends

City of Hesperia - 36 - Draft 2026 Annual Action Plan

Citizen Participation Outreach

Outreach Summary
Mode Additional
Modes Target Content/ Attendance Comments Comments
not accepted
Newspaper
Ad
City website;
Social
Media;
Flyers
English and Spanish

Published October 13, 2024. Public Meeting, October
28, 2024, 10:00 AM and 5:00 PM at the Hesperia
Library Community Room, and November 5, 2024
Public Hearing at City Hall; Community Needs Survey.

N/A N/A
Newspaper
Ad
City website;
Social
Media;
Flyers
English and Spanish

Published November 3, 2024. Rescheduled Public
Hearing, from November 5, to November 19, 2024,
6:30 PM, City Hall; Community Needs Survey.

N/A N/A
Public
Meetings
English and Spanish
Broad Community
Public Meetings, October 28, 2024, 10:00 AM and 5:00
PM, at the Hesperia Library Community Room.

All comments
were accepted
N/A
Public
Hearing
English and Spanish
Broad Community
Public Hearing, November 19, 2024, 6:30 PM, City Hall. All comments were accepted
N/A
Community
Needs
Survey
English and Spanish
Broad Community
See Appendix B of the 2025-2029 Consolidated Plan All comments were accepted
N/A
Newspaper
Ad
City website English and Spanish Substantially complete Draft 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan 30-day review
period from March 17 to April 15, 2025 and public
hearing on April 15, 2025, 6:30 PM, at City Hall.

N/A N/A
30-Day
Review
Broad Community Made available on website and in hard copy from March 17 to April 15, 2025
NA NA
Public
Hearing
English and Spanish
Broad Community
Public hearing of Draft 2025-2029 Consolidated Plan
and 2025-2026 Annual Action Plan on April 15, 2025,
6:30 PM, at City Hall.

All comments
were accepted
NA
Table 5 – Citizen Participation Outreach

Page 182 ends

City of Hesperia - 37 - Draft 2026 Annual Action Plan

Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Annual allocations are subject to federal appropriations and changes in demographic data used in HUD’s formulas for the programs. The funding amounts in this Action Plan are approximated because to date, Congress has not passed HUD’s FY 26 appropriation, and the date this appropr iation will be made is unknown. When the City is informed of its annual allocation the Street Improvement Project will be increased or decreased from the estimated funding level to match actual allocation amounts.

During the five -year period of the Consoli dated Plan from July 1, 2025, to June 30, 2030, the City of Hesperia anticipates investing an estimated $4.7 million in CDBG funds to support the goals of the Strategic Plan. For the 2026-2027 program year the City anticipates receiving an allocation of $946,179 in CDBG.

Uses of Funds
Expected Amount Available Year 1
Expected
Amount
Available
Remainder
of Con Plan
Narrative
Description
Program
Annual
Allocation:

Program
Income:

Prior Year
Resources:

Total:

CDBG Acquisition
Admin. and
Planning
Economic
Development
Housing
Public
Improvements
Public
Services
$946,179 $0 $0 $946,179 $3,784,716
Based on 2025
FY allocation
from HUD.

Steady annual
funding is
anticipated.

Table 6- Anticipated Resources
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied.

The extent of need in Hesperia far exceeds the available funding from CDBG. Most activities into which these funds are in vested will also leverage a variety of additional sources including, but not limited to,

Page 183 ends

City of Hesperia - 38 - Draft 2026 Annual Action Plan

public and private grants, capital development and general funds, public financing, and private donations.

The City encourages the use of Low -Income Housing Tax Credit s to fund construction, substantial rehabilitation, or acquisition or affordable housing.

Depending on the financing structure of a given activity, it may be advantageous for the City to use CDBG funds to leverage appropriate state, local, and private resources, including but not limited to those listed below.

Federal Resources
- Continuum of Care (CoC) Program
- HUD Veterans Affairs Supportive Housing (HUD-VASH)
- Supportive Housing for the Elderly (Section 202)
- Supportive Housing for Persons with Disabilities (Section 811) - Housing Opportunities for Persons with AIDS (HOPWA)
- YouthBuild
- Federal Low-Income Housing Tax Credit Program
- Project Based Housing Choice Vouchers
State Resources
- Low-Income Housing Tax Credit Program
- Tax-Exempt Bond Financing
- Permanent Local Housing Allocation
- Building Equity and Growth in Neighborhoods Program (BEGIN) - CalHome Program
- Multifamily Housing Program (MHP)
- CalHFA Single and Multi-Family Program
- Mental Health Service Act (MHSA) Funding
- Affordable Housing and Sustainable Communities Program Local Resources
- Continuum of Care (CoC) Program
- Housing Authority of the County of San Bernardino (HACSB) - California Home Finance Agency
- City of Hesperia In-Lieu Fees
- Low- and Moderate-Income Housing Asset Fund (Successor Housing Agency) Private Resources
- Federal Home Loan Bank, Affordable Housing Program
- Community Reinvestment Act Programs
- United Way
- Private Contributions
Matching Requirements: CDBG does not have a matching requirement.

Page 184 ends

City of Hesperia - 39 - Draft 2026 Annual Action Plan

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.

The C ity owns and maintains right s-of-way which may be used or improved to address the needs identified in the Consolidated Plan. City staff keep s inventory of vacant and non -vacant sites as part of the Housing Element. Furthermore, City staff maintain relationships with developers which informs their knowledge of existing conditions. As of the execution of this document there are currently no publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.

Discussion
During July 2026 through June 2027, the City will rely on other public and private funding, including but not limited to:

- Low-Income Housing Tax Credits
- Project-based Section 8 certificates
- Project financing at favorable interest rates from local lenders - Private market real estate investments
- Market rate housing that subsidizes affordable units on the same development site to enhance the availability, affordability and sustainability of affordable housing.

Along with leveraged dollars, the City expects to spend approximately $946,179 of CDBG funds during the 2026-2027 program year on public facility and infrastructure improvement activities that promote a suitable living environment, and fair housing. It is anticipated that approximately $822,179 of these funds will be spent on public facility and infrastructure projects.

Page 185 ends

City of Hesperia - 40 - Draft 2026 Annual Action Plan

Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Goal Name Time
Period Category Geographic
Area Needs Addressed Funding Goal Outcome
Indicator
Goal 1: Public
Facilities and
Infrastructure
Improvement
2025 –
2029
Non-Housing
Community
Development
CDBG Low-
and
Moderate-
Income
Census
Tract/ Block
Groups
-Citywide
Provide public
facility and
infrastructure
improvements to
create a suitable
living
environment
CDBG:
$822,179

Public Facility or
Infrastructure
Activities other
than
Low/Moderate
Income Housing
Benefit: 15,000
Persons
Assisted Description: Preserve and improve public facilities and infrastructure to benefit low-and moderate- income people or those presumed under HUD regulations to be low- and moderate-income such as elderly people and disabled adults.

Goal 2: Fair
Housing
Services

2025 –
2029
Affordable
Housing
Citywide Ensure equal
access for
housing
opportunities

CDBG:
$24,000

Public service
activities other
than Low/
Moderate
Income Housing
Benefit: 350
Persons
Assisted Description: Fulfill the HUD regulatory mandate to affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services
Goal 3: Planning
and
Administration

2025 –
2029
Program
administration
N/A Administration,
Comply with
federal CDBG
regulations

CDBG:
$100,000

Other - 1
Description: These funds will be used to comply with federal statutes and regulations pertaining to the CDBG Program.

Table 7 – Goals Summary
Goal Descriptions

Page 186 ends

City of Hesperia - 41 - Draft 2026 Annual Action Plan

1 Goal Name Public Facility and Infrastructure Improvements Goal
Description
Preserve and improve public facilities and infrastructure to benefit low-and moderate-income people or those presumed under HUD regulations to be low- and moderate-income such as elderly people and disabled adults. 2 Goal Name Fair Housing Services
Goal
Description
Fulfill the HUD regulatory mandate to affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services.
3 Goal Name Administration
Goal
Description
Fund the needs of the administration to run the CDBG programs. 4 Table 8 – Goals Descriptions
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME

91.215(b):

The City is not a recipient of HOME funds during this 26-27 Annual Action Plan cycle.

Page 187 ends

City of Hesperia - 42 - Draft 2026 Annual Action Plan

AP-35 Projects – 91.220(d)
Introduction
To address the high priority needs identified in the Strategic Plan to the 2025-2029 Consolidated Plan, the City will invest CDBG funds during the 2026-2027 program year on projects that improve public facilities and infrastructure, and provide fair housing. Together, these projects will address the community development needs of Hesperia residents -particularly those residents residing in the low- and moderate-income CDBG Target Areas.

Projects
2025-2026 Projects

1. Public Facility and Infrastructure Improvements

2. Fair Housing Services

3. 4. CDBG Administration

5. Table 9 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
Based on the Strategic Plan, the City is allocating 100 percent of its non -administrative CDBG investments for the program year 2026-2027 to projects and activities that benefit low - and moderate- income people. The primary obstacles to meeting the underserved needs of low- and moderate-income people include limited funding from federal, state, and other local sources. To address these obstacles, the City is investing $822,179 of CDBG funds in the 2026-2027 Annual Action Plan for the Annual Street Improvement Project that will reconstruct deteriorated streets.

Page 188 ends

City of Hesperia - 43 - Draft 2026 Annual Action Plan

AP-38 Project Summary
Table 10 – Goals Summary
1 Project Name Public Facility and Infrastructure Improvements Target Area CDBG Low- and Moderate-Income Census Tract/Block Groups Goals Supported Public Facility and Infrastructure Improvements Needs Addressed Provide public facility and infrastructure improvements to create a suitable living environment
Funding CDBG: $822,179
Description
Preserve and improve public facility and infrastructure to benefit low - and moderate-income people or those presumed under HUD regulations to be low- and moderate-income such as elderly people and disabled adults.

Target Date 6/30/2027
Estimate the number and
type of families that will
benefit
Approximately 3,000 persons
Location Description CDBG Low- and Moderate-Income Census Tract/Block Groups Planned Activities City of Hesperia: 26/27 Street Improvement Project – (3,000 persons) Fund:
$822,179
2 Project Name Fair Housing Services
Target Area Citywide
Goals Supported Fair Housing Services
Needs Addressed Ensure equal access for housing opportunities Funding CDBG: $24,000
Description
Fulfill the HUD regulatory mandate to affirmatively further fair housing choice through the provision of fair housing education, counseling, anti - discrimination, and landlord-tenant mediation services.

Target Date 6/30/2027
Estimate the number and
type of families that will
benefit
Approximately 80 persons
Location Description Citywide
Planned Activities Fair Housing Foundation – (80 persons) – Fund: $24,000

3. 4.

Page 189 ends

City of Hesperia - 44 - Draft 2026 Annual Action Plan

5 Project Name CDBG Administration
Target Area Citywide
Goals Supported All
Needs Addressed All
Funding CDBG: $100,000
Description Fund administration for the CDBG program.

Target Date 6/30/2027
Estimate the number and
type of families that will
benefit
Other -1
Location Description Citywide
Planned Activities CDBG Administration – Fund: $100,000

Page 190 ends

City of Hesperia - 45 - Draft 2026 Annual Action Plan

AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Infrastructure improvements and public facilities will be focused on areas with a concentration of residents with low and moderate incomes throughout the City . It should be noted that 57percent of Hesperia households have low or moderate incomes, according to 2016-2020 CHAS data.

Geographic Distribution
Target Area Percentage of Funds
CDBG Low- and Moderate-Income
Census Tract/Block Group
87%
Citywide 13%
Table 11 - Geographic Distribution
Rationale for the priorities for allocating investments geographically HUD allows CDBG grantees to implement certain activities such as initial construction or expansion of community facilities and infrastructure that benefit certain neighborhoods or villages (but not the entire City) provided the service area for the facility or infrastructure is primarily residential and where at least 51 percent of residents are low- and moderate-income.

The City will use a place -based and citywide strategy to distribute funding. It is the City’s inte nt to fund activities in the areas and for the populations most directly affected by the needs of low-income residents and those with other special needs. Where appropriate the Annual Action Plan will direct investment to an area benefit neighborhood. The area benefit category is the most used national objective for activities benefiting a residential neighborhood. An area benefit activity is one that benefits all residents, where at least 51 percent are low- and moderate-income. Public infrastructure improvements are an area benefit activity when they are in a predominantly low- and moderate-income neighborhood.

Page 191 ends

City of Hesperia - 46 - Draft 2026 Annual Action Plan

Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City does not currently have active housing programs, the Hesperia Housing Authority (HHA) has provided funding for affordable housing projects in prior years to address the need for affordable housing and housing rehabilitation.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 0
Special-Needs 0
Total 0
Table 12 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehabilitation of Existing Units 0
Acquisition of Existing Units 0
Total 0
Table 13 - One Year Goals for Affordable Housing by Support Type

Discussion
Responses to the Community Needs Survey indicated the greatest area of need in Hesperia is infrastructure improvements, specifically streets and sidewalks. Due to limited funding, during the 2025- 2026 program year the City will not be investing CDBG funds in the preservation of affordable housing units but for public facility and infrastructure improvement activities.

Page 192 ends

City of Hesperia - 47 - Draft 2026 Annual Action Plan

AP-60 Public Housing – 91.220(h)
Introduction
There is no public housing located within the City of Hesperia.

Actions planned during the next year to address the needs to public housing Public housing needs are addressed by the Housing Authority of the County of San Bernardino (HACSB).

Actions to encourage public housing residents to become more involved in management and participate in homeownership.

This is not applicable to the City of Hesperia. HACSB encourages residents to be actively involved in the community and in the management of public housing developments through resident councils and numerous opportunities for feedback such as community meetings and surveys. HACSB and the City of Hesperia also actively encourage and promote public housing residents to explore homeownership opportunities and programs through HACSB’s Homeownership Assistance Program.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance.

This is not applicable as the HACSB is considered a high performing PHA.

Page 193 ends

City of Hesperia - 48 - Draft 2026 Annual Action Plan

AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City will invest leveraged CDBG funds during the 2026-2027 program year to address high priority needs identified in the 2025-2029 Consolidated Plan. To address homelessness and other special needs the City will continue to fund the Community Assistance Program (CAP). The CAP was developed to fund organizations that will provide public services to Hesperia residents.

Describe the jurisdictions one -year goals and actions for reducing and ending homelessness including reaching ou t to homeless persons (especially unsheltered persons) and assessing their individual needs
Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community -based organizations and faith-based groups. Consistent with this approach, the City supports the efforts of San Bernardino County Continuum of Care (CoC) and its member organizations that address homelessness throughout San Ber nardino County. In alignment with this strategy, the City has previously and will consider using general fund dollars through the CAP to support local service providers’ efforts to meet and identify the needs of those experiencing unsheltered homelessness.

Addressing the emergency shelter and transitional housing needs of homeless persons The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, because the demand for affordable housing far outpaces the region’s supply, the CoC continues to rely on its emergency and transitional housing system to address the immediate needs of San Bernardino County’s homeless population.

Page 194 ends

City of Hesperia - 49 - Draft 2026 Annual Action Plan

The CoC is improving the efficacy of emergency shelters and the access system including their seasonal emergency shelters and the County’s three (3) Cold Weather Shelter facilities, the closest being located in the City of San Bernardino and temporary warming shelter in the City of Victorville.

For transitional housing, the CoC recognizes a need to main tain a level of transitional housing for the target populations that benefit most from a staged approach to housing, such as mentally ill and chronically homeless individuals. While the CoC continues to support transitional housing in special circumstances, the CoC is currently examining ways to shorten stays in emergency shelters and transitional housing so that resources may be used for rapid re -housing or placement in permanent supportive housing.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homel essness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again In support of CoC efforts, this City’s Strategic Plan provides f or the use of general funds to support activities implemented by the City and local nonprofit organizations that provide services to help prevent and eliminate homelessness, including families at risk of homelessness, veterans, victims of domestic violence and emancipated foster youth. In the past CAP funds have supported homelessness prevention and food assistance programs. It is anticipated that CAP funds will continue to provide funding for similar homeless services.

Additional efforts include support at the regional level to shorten the period that individuals and families are experiencing homelessness and to prevent individuals and families who were recently homeless from becoming homeless again. The 2 -1-1 regularly works with public service agencies to analyze the resources and funding being used to operate transitional housing programs and consider how these resources could be used more in alignment with the best practices (i.e., rapid re-housing and permanent housing) for ending homelessness. Many tra nsitional housing providers are working to End Homelessness to evaluate strategies to lower program threshold requirements and improve outcomes including shorter shelter stays and more rapid transitions to permanent housing.

Helping low -income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The County in collaboration with the CoC m aintains Discharge Coordination Policies for the systems of care it administers, such as discharge from the Corrections, Foster Care, and the Mental Health systems.

The City supports the CoC’s advocacy for development of consistent policy implementation by hospital

Page 195 ends

City of Hesperia - 50 - Draft 2026 Annual Action Plan

administrators for best practices such as recuperative care, and co -location of health services near affordable housing developments.

In the past CAP funds have supported homelessness prevention and food assistance programs. It is anticipated th at CAP funds will continue to provide funding for similar rental assistance, and case management services to households experiencing homelessness, including those living in emergency shelters.

Page 196 ends

City of Hesperia - 51 - Draft 2026 Annual Action Plan

AP-75 Barriers to affordable housing – 91.220(j)
Introduction
A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environment al protection, cost of land and availability of monetary resources. The City of Hesperia works to remove barriers to affordable housing and the financial impact of efforts to protect public health and safety by taking actions to reduce costs or provide offsetting financial incentives to assist in the production of safe, high quality, affordable housing. Barriers to affordable housing are distinguished from impediments to fair housing choice in that barriers are lawful and impediments to fair housing choice are usually unlawful.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charge s, growth limitations, and policies affecting the return on residential investment The draft Analysis of Impediments to Fair Housing completed in 2025, proposed the following strategies to address fair housing issues and contributing factors. - Increase Affordable Housing Development – Support the construction of affordable housing in high- opportunity areas and streamline approval processes.
- Enhance Housing Accessibility – Implement a formal reasonable accommodation process and encourage the development of accessible housing units.
- Expand Public Transportation – Improve transit routes and services, particularly for lower -income neighborhoods.
- Strengthen Fair Housing Protections – Partner with fair housing organizations to educate tenants and landlords about fair housing rights and responsibilities. - Promote Economic Mobility – Support job training programs and housing development near employment centers to improve access to economic opportunities.

Discussion
To address housing affordability and the lack of monetary resources for affordable housing, th e City’s Strategic Plan as identified in their 2025-2029 Consolidated Plan calls for a portion of CDBG funds to be used for Fair Housing Services to ensure fair housing choices. The City will continue to leverage its funds to attract private and other available public resources. The City’s updated 2021-2029 Housing Element notes the following to help ameliorate negative effects of public policies that serve as barriers to affordable housing:
 The City has outlined certain concessions for development standards in its Landscape Ordinance.

Affordable housing developments are permitted to use one -gallon shrubs and five -gallon trees, instead of the otherwise required five-gallon shrubs and 15-gallon trees.

Page 197 ends

City of Hesperia - 52 - Draft 2026 Annual Action Plan

 The City of Hesperia has established a density bonus program to encourage the production of housing for lower and moderate -income households by offering developers density increases beyond the maximum allowed under the applicable zoning district and land use element o f the general plan in exchange for the construction of below -market rate units. In addition, other development incentives may be permitted.
 Current state law requires jurisdictions to provide density bonuses and development incentives to all developers who propose to construct affordable housing on a sliding scale, where the amount of density bonus and number of incentives vary according to the amount of affordable housing units provided. In May of 2011, the City’s Development Code was updated to reflect th ese new requirements.
 Under AB 1763, housing projects where all units are affordable to low and very low -income residents qualify for an 80% density bonus, except that up to 20 percent of the total units in the development may be for moderate -income households. AB 1763 provides for a fourth incentive and concession to 100% affordable projects. For housing projects that qualify as a special needs or supportive housing development, AB 1763 completely eliminates all local parking requirements. A development th at is a special needs housing development shall have either paratransit service or unobstructed access, within one -half mile, to fixed bus route service that operates at least eight times per day. The development code will be amended in 2020 to reflect the changes in Density Bonus Law.
 In October 2019, SB 13, AB 68, and AB 881 were adopted into law with the intention of facilitating the construction of Accessory Dwelling Units (ADUs) in California. One key component of the new ADU laws is that the City is now required to allow Junior Accessory Dwelling Units (Junior ADUs).

In June 2020, the development code was amended to be consistent with state law.  AB 671 requires cities to include a plan that incentivizes and promotes the creation of ADUs that can be offered at affordable rent for very low, low-, or moderate-income households in its housing element. The City amended its ADU Ordinance, which was adopted by the City Council on November 19, 2024, to allow the sale and conveyance of ADUs for Community Land Tr usts (CLTs), thereby enabling CLTs to build and manage ADUs that remain permanently affordable, as they can be sold separately to qualified buyers. The ADU Ordinance was also amended to allow the separate sale and or conveyance of ADUs, potentially making it easier for homeowners to finance ADU construction for very-low or low-income individuals to purchase them.

Page 198 ends

City of Hesperia - 53 - Draft 2026 Annual Action Plan

AP-85 Other Actions – 91.220(k)
Introduction
Priority needs established in the 2025 -2029 five-year Consolidated Plan form the basis for establishing objectives and outcomes in the Action Plan. Those needs are as follows:
- Provide public facility and infrastructure improvements to create a suitable living environment - Ensure equal access to housing opportunities
-
Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the needs of underserved households with low- and moderate-incomes are reduced funding from federal, state, and other local sources, and the high cost of housing. To address these obstacles, at least in part, the City will continue to work to leverage public and private resources through grant and partnership opportunities.

The City will continue to promote fair housing practices for sale and rental housing and to facilitate community awareness of fair housing. The City of Hesperia will continue to use CDBG funds to contract with Fair Housing Foundation for this program year to provide fair housing and tenant/landlord services to residents.

Actions planned to foster and maintain affordable housing The City of Hesperia works to remove barriers to affordable housing and the financial impact of efforts to protect public health and safety by taking actions to reduce costs or provide offsetting financial incentives to assist in the production of safe, high quality, affordable housing. In program year 2026-2027, the City plans to allocate $822,179 in CDBG funds to the Annual Street Improvement Project and $329,415.87 to foster affordable housing through the City’s Housing Rehabilitation Program.

Actions planned to reduce lead-based paint hazards
Code enforcement and building inspectors will continue to identify lead -based paint hazards as part of their ongoing activities, if the scope of the complaint allows them into the unit, or if it is a part of an ongoing investigation. The Building Division will continue to be alert to units that may contain lead -based paint.

They will inform tenants and landlords as part of their inspections.

Actions planned to reduce the number of poverty-level families The implementation of CDBG activities meeting the goals established in the Consolidated Plan-Strategic Plan and this Action Plan will help to reduce the number of poverty-level families by:
- Supporting activities that preserve and improve public facilities and infrastructure to benefit low - and moderate-income residents of Hesperia;
- Supporting activities that preserve the supply of decent housing that is affordable to low - and

Page 199 ends

City of Hesperia - 54 - Draft 2026 Annual Action Plan

moderate-income households
- Supporting activities that fulfill the HUD mandate to further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation; and
- Fund the needs of the administration to run the CDBG.

Actions planned to develop institutional structure
The City of Hesperia works with a wide range of public and community social service agencies to meet and address the various needs of the community. This program year, City staff will continue to collaborate internally, as well as with local non -profit advocacy groups and other County, State and Federal organizations. Specifically, the City participates in various regional efforts that involve the collaboration of local jurisdictions, private organizations, and other public and quasi -public agencies t o address homelessness, fair housing, and affordable housing issues.

Actions planned to enhance coordination between public and private housing and social service agencies
To enhance coordination between public and private housing and social service agencies, the City will welcome and continue to encourage partnering with non -profit providers, community and faith -based organizations, public institutions, community residents, and City Departments to ensure the effective delivery of quality housing and supportive services to low-income individuals.

City staff attends several local and regional meetings, which include service providers, neighboring agencies, and elected offici als to keep abreast of issues affecting the quality of life for low -income residents. The City maintains a web presence and is pro -active in providing technical assistance throughout the year to assist interested citizens and agencies in understanding and applying for CDBG.

Page 200 ends

City of Hesperia - 55 - Draft 2026 Annual Action Plan

Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
The following sections present information on other program-specific requirements. For Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan: 2024, 2025, 2026.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0
Table 14 – CDBG Requirements

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low- and moderate-income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low- and moderate-income. Specify the years covered that include this Annual Action Plan. 100.00%

1. Overall benefit period 2024, 2025,
2026
Table 15 – Other CDBG Requirements

Page 201 ends

2026/2027 ANNUAL ACTION PLAN
JULY 1, 2026 THROUGH JUNE 30, 2027

APPENDIX A
Citizen Participation

 Proof of Publication – Public Hearing & Adoption
 Summary of Comments Received

Page 202 ends

CITY OF HESPERIA

NOTICE OF PUBLIC HEARING & REVIEW

DRAFT SUBSTANTIAL AMENDMENT TO THE
2025-2029 CONSOLIDATED PLAN AND
DRAFT 2026-2027 ACTION PLAN
Program
Description:

Notice is hereby given that the City of Hesperia has prepared the Draft Substantial Amendment to the 2025 -2029 Consolidated Plan for the U.S.

Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) and HOME Investment Par tnerships Program (HOME) and the Draft 2026-2027 Annual Action Plan in accordance with HUD requirements to prepare and submit an Action Plan every year as a condition of receiving annual allocations of CDBG and HOME funds.

The Consolidated Plan establishe s the priority housing, community and economic development needs of the City and provides a strategy for the types of projects that will receive CDBG and HOME funds during the five-year period to address specific goals related to the provision of decent housing, a suitable living environment and expanded economic opportunity for low - and moderate-income residents. The goals included in the 2025 -2029 Consolidated Plan include Public Facilities and Infrastructure and Fair Housing Services. The Draft Substanti al Amendment to the 2025 -2029 Consolidated Plan will add the goal of Preservation of Affordable Housing and subsequent housing activities utilizing HOME funds.

The Action Plan establishes the programs and activities to be undertaken using CDBG and HOME funds during the 2026-2027 program year beginning July 1, 2026, and ending June 30, 2027. The City anticipates receiving $946,179 of CDBG funds and $366,017 of HOME funds for the 2026 -2027 program year and anticipates receiving similar allocations for the sub sequent three program years covered by the 2025 -2029 Consolidated Plan. Annual allocations of CDBG and HOME funds are subject to change based on federal appropriations and any changes to the HUD grant allocation formulas or data used in the formulas.
30-Day
Public
Review
Period:

Copies of the draft documents will be available to the public for review and comment for 30 days. Individuals wishing to express their views concerning the Draft Substantial Amendment to the 2025-2029 Consolidated Plan and the Draft 2026 -2027 Action Plan and proposed activities may provide written comments to the City on or before 4:30 p.m. on Tuesday, April 21, 2026, by emailing those comments to Eydee Jimenez, Economic Development Supervisor at [email protected].

Page 203 ends

DATE: March 18, 2026 through April 21, 2026
ONLINE: https://www.cityofhesperia.us/
HARD
COPY:

A copy of the draft documents will be available at the following locations:
 Hesperia Economic Development Division at 9700
Seventh Avenue, Hesperia
 Hesperia City Clerk’s Office at 9700 Seventh Avenue,
Hesperia
 Hesperia Public Library at 9650 Seventh Avenue,
Hesperia
Public
Hearing:

You are invited to attend a public hearing to be held by the City Council to provide public comments regarding the Draft Substantial Amendment to the 2025-2029 Consolidated Plan and the proposed activities in the Draft 2026 - 2027 Action Plan, and program performance. The public hearing will take place as follows:

DATE: April 21, 2026
TIME: 6:30 PM
LOCATION: City of Hesperia Council Chambers
9700 Seventh Avenue, Hesperia, CA 92345
ADA: It is the intention of the City to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or participant at this meeting, you need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the City Clerk’s Office at (760) 947 -1007 or (760) 947-1056 at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible.

LAP: Si necesita más información sobre este aviso o la traducció n de documentos en español, comuníquese con Eydee Jimenez al 760.947.1202.

City Contact: Questions and written comments may be addressed to Eydee Jimenez, Economic Development Supervisor, at Hesperia City Hall, Economic Development Division 9700 Seventh Avenue, Hesperia, CA 92345.

City Clerk: Melinda Sayre
Published: Victorville Daily Press on Wednesday, March 18, 2026 (English and Spanish)

Page 204 ends

CIUDAD DE HESPERIA

DEL BORRADOR DE ENMIENDA SUSTANCIAL AL PLAN
CONSOLIDADO 2025-2029 Y BORRADOR DEL
PLAN DE DESEMPEÑO 2026-2027

Descripción
del
Programa:

Por medio de la presente se notifica que el Ayuntamiento de la Ciudad de Hesperia ha preparado el Borrador de la Enmienda Sustancial al Plan Consolidado 2025-2029 para los programas del Departamento de Vivienda y Desarrollo Urbano de los Estados Unidos (H UD, por sus siglas en inglés) Subsidios Globales para el Desarrollo Comunitario (CDBG, por sus siglas en inglés) y Programa de Asociación para Inversiones en Vivienda HOME (HOME, por sus siglas en inglés) y el Borrador del Plan de Desempeño Anual de 2026 - 2027 conforme a los requisitos de HUD para preparar y presentar un Plan de Desempeño cada año como condición para recibir asignaciones anuales de los fondos de los programas de CDBG y HOME.

El Plan Consolidado establece las necesidades prioritarias de viv ienda, desarrollo comunitario y económico de la Ciudad y proporciona una estrategia para los tipos de proyectos que recibirán fondos CDBG y HOME durante el período de cinco años, con el fin de abordar objetivos específicos relacionados con la provisión de vivienda digna, un entorno de vida adecuado y la ampliación de las oportunidades económicas para los residentes de ingresos bajos y moderados. Los objetivos incluidos en el Plan Consolidado 2025 -2029 incluyen Instalaciones e Infraestructura Pública y Servicios de Vivienda Justa. El Borrador de Enmienda Sustancial al Plan Consolidado 2025-2029 incorporará el objetivo de Preservación de Vivienda Asequible y las actividades de vivienda posteriores que utilicen fondos HOME.

El Plan de Desempeño establece los programas y actividades a realizar utilizando fondos de CDBG y HOME durante el año del programa iniciando en Julio 1, 2026 y finalizando el Junio 30, 2027. El Ayuntamiento anticipa recibir $946,179 de fondos de CDBG y $366,017 de fondos de HOME para el añ o del programa 2026-2027 y anticipa recibir asignaciones similares para los tres años de programas subsecuentes cubiertos por el Plan Consolidado 2025 -2029. Las asignaciones de fondos anuales de CDBG y HOME están sujetas a cambios en funciones federales y cualquier cambio en las fórmulas de asignación de subsidios de HUD o los datos utilizados en las fórmulas.

AVISO DE AUDIENCIA PÚBLICA Y REVISIÓN

Page 205 ends

Período de
Revisión
Pública de 30
Días:

Las copias del borrador de los documentos estará disponible para que el público los revise y comente durante 30 días. Las personas que deseen expresar sus puntos de vista con respecto al Borrador de la Enmienda Sustancial al Plan Consolidado 2025-2029 y el Borrador del Plan de Desempeño 2026 -2027 y las actividades propuestas pueden proporcionar comentarios por escrito al Ayuntamiento antes de las 4:30 PM el Martes, 21 de Abril de 2026 enviando esos comentarios por correo electrónico a Eydee Jimenez, Supervisora de Desarrollo Económico a [email protected].

FECHA: Marzo 18, 2026 a Abril 21, 2026
EN
LÍNEA:
https://www.cityofhesperia.us/

COPIA
IMPRESA:

Una copia del borrador de los documentos estará disponible en los siguientes lugares:

 División de Desarrollo Económico del Ayuntamiento de
Hesperia, 9700 Seventh Avenue, Hesperia
 Oficina del Secretario Municipal del Ayuntamiento de Hesperia, 9700 Seventh Avenue, Hesperia
 Biblioteca Pública de la Ciudad de Hesperia, 9650 Seventh Avenue, Hesperia

Audiencia
pública:

Está invitado a asistir a una audiencia pública que celebrará el Ayuntamiento para que el público pueda expresar sus opiniones sobre e l Borrador de la Enmienda Sustancial al Plan Consolidado 2025 -2029 y las actividades propuestas y el rendimiento del programa en el Borrador del Plan de Desempeño 2026-2027.

La audiencia pública tendrá lugar de la siguiente manera:

FECHA: Abril 21, 2026
HORA: 6:30 PM
LUGAR: Cámara del Concejo Municipal del Ayuntamiento de la Ciudad de Hesperia
9700 Seventh Avenue, Hesperia, CA 92345

ADA: La intención de la Ciudad es cumplir con la Ley de Estadounidenses con Discapacidades (ADA) en todos los aspectos. Si, como asistente o participante en esta reunión, necesita asistencia especial más allá de la que normalmente se proporciona, la Ciudad intentará acomodarlo de todas las maneras razonables.

Page 206 ends

Póngase en contacto con a la Oficina del Secretario Municipal at (760) 947-1007 o (760) 947-1056 por lo menos 48 horas antes de la reunión para informarnos de sus necesidades y determinar si es posible realizar alguna adaptación.

LAP: Si necesita más información sobre este aviso o la traducción de documentos en español, comuníquese con Eydee Jimenez al 760.947.1202.

Contacto de
a Ciudad:

Las preguntas y comentarios escritos pueden ser enviados a Eydee Jimenez, Supervisora de Desarrollo Económico, División de Desarrollo Económico del Ayuntamiento de la Ciudad de Hesperia 9700 Seventh Avenue, Hesperia, CA 92345
Secretario
Municipal:

Melinda Sayre
Publicado: Victorville Daily Press el Miercoles, 18 de Marzo de 2026 (Inglés y Español)

Page 207 ends

Summary of Comments Received

Comments will be added after the April 21, 2026 City Council Public Hearing.

Page 208 ends

2026/2027 ANNUAL ACTION PLAN
JULY 1, 2026 THROUGH JUNE 30, 2027

APPENDIX B
Grantee Unique Appendices

 CDBG Low- and Moderate-Income Area Map

Page 209 ends

Page 210 ends

2026/2027 ANNUAL ACTION PLAN
JULY 1, 2026 THROUGH JUNE 30, 2027

APPENDIX C
SF-424 and Action Plan Certifications

 SF-424 Community Development Block Grant
(CDBG)
 SF-424D Community Development Block Grant
(CDBG)
 2026-2027 Action Plan Certifications

To be completed and added to the 2026-2027 Annual Action Plan Appendix C after the April 21, 2026 Public Hearing.

Page 211 ends

ATTACHMENT AVAILABLE FOR REVIEW IN THE CITY CLERK’S OFFICE

Page 212 ends

City of Hesperia

STAFF REPORT

DATE: April 21, 2026
TO: Mayor and Council Members
FROM: Rachel Molina, City Manager
BY: Orlando Acevedo, Director of Development Services
Ryan Leonard, Principal Planner
Leilani Henry, Associate Planner

SUBJECT:

Conditional Use Permit CUP24-00012; Applicant: AUE Energy LLC; APN: 3064- 401-10

RECOMMENDED ACTION

The Planning Commision recommends that the City Council adopt Resolution No. 2026-07 Approving Conditional Use Permit CUP24-00012 and adopting the associated mitigated negative declaration pursuant to the provisions of CEQA.

BACKGROUND

Proposal: A Conditional Use Permit (CUP) has been filed to allow for the development of a 5,915 square foot convenience store with alcohol sales for off -site consumption along with a 4,080 square foot fueling station canopy with 10 pumps and a 1,968 square foot drive through carwash (Attachments 1 and 2).

Location: This project is located on a 2.36-acre site at the northwest corner of Phelan Road and Highway 395. (Attachment 3).

Current General Plan, Zoning and Land Uses: The site is vacant and within the Neighborhood Commercial (NC) zone of the Main Street and Freeway Corridor Specific Plan . The adjacent properties to the north and west are vacant and located within the Neighborhood Commercial zone (NC). The property to the east, across Highway 395, and the property to the south, across Phelan Road, are also vacant and within the Neighborhood Commercial (NC) zone (Attachment 4).

ISSUES/ANALYSIS

Land Use : The proposed convenience store is a permitted use within the Neighborhood Commercial (NC) zoning district. However, pursuant to the Development Code and the Main Street and Freeway Corridor Specific Plan, approval of a Conditional Use Permit (CUP) is required for the establishment and operation of a vehicle fuel station, carwash facility, and the sale of alcoholic beverages for off -site consumption. Additionally, the City Council adopted Ordinance No. 2017-08 on October 3, 2017, which requires that all applications for off-sale alcohol (type 20 and 21 ABC licenses) for establishments that are below 12,000 square feet in floor area be forwarded to the City Council for final action.

Page 213 ends

Page 2 of 6 ends

Staff Report to the Mayor and Council Members
CUP24-00012
April 21, 2026

On March 26, 2026, the Planning Commission unanimously forwarded this item to the City Council with a recommendation for approval by a 5-0 vote. There were no residents who spoke either in favor or opposition to the project during the public hearing.

Conformance with Development Standards: The project complies with devlopment standards of the Main Street and Freeway Corridor Specific Plan including the minimum building requirements, landscaping, and parking. Moreover, the project includes 26,572 square feet of total landscape coverage, or 13.5% of to tal landscape coverage, which is greater than the required minimum landscape coverage of 10%.

Additionally, the project complies with the specific land use standards for vehicle wash facilities, including maintaining a distance exceeding 1,000 feet from existing ancillary and standalone car wash facilities, and meeting all applicable lighting and noise restrictions.

Furthermore, establishments selling alcoholic beverages for off-site consumption are required to be located within 500 feet of the intersection of two arterial or major arterial streets as identified in the City’s adopted Circulation Plan. The proposed project is located at the northwest corner of Phelan Road and Highway 395. Phelan Road is designated as a Major Arterial with a 120 -foot- wide ultimate right-of-way, while Highway 395 is designated as a Special Street section with a 130-foot-wide ultimate right -of-way and is identified as a major transportation corridor in the Circulation Plan. As a major regional corridor, Highway 395 satisfies the intent of an arterial roadway classification.

Alcohol Sales: The applicant will file an application for a Type 20 (Off-Sale Beer and Wine) license with the California Department of Alcoholic Beverage Control (ABC). Table 2 identifies four active off-sale alcoholic beverage licenses within Census Tract 100.09 (Attachment 5). ABC authorizes this census tract to have three off-sale licenses. Therefore, approval of CUP24-00012 will exceed the limitation of three licenses and ABC will require that the City make a finding of public convenience and necessity (Attachment 9).

Table 1: Existing On-Sale Licenses in Census Tract 100.09

In determining whether to approve an additional license in an overconcentrated census tract, the City Council may consider the surrounding context and availability of alcohol sales within the immediate service area. While four licenses are reported within the census tract, the Walmart and G & M Oil locations are outside the City limits and located more than four miles from the proposed project site. The remaining establishments, Sky Market and 7-Eleven, are located approximately one mile away along the I -15 freeway corridor and primarily serve motorists traveling along that corridor.

The proposed project is locat ed along Highway 395 and would serve a different travel corridor.

As such, the project would provide sales to residents and motorists traveling along Highway 395 and would not substantially increase the concentration of alcohol sales within the immediate Status Business Name Business Address Type of License
Active Walmart 11896 Amargosa Road
(Victorville)
21-Beer, Wine, and
Liquor
Active Sky Market 12720 Main Street 21-Beer, Wine, and
Liquor
Active G & M Oil Co. 12080 Amargosa Road
(Victorville)
20-Beer and Wine
Active 7 Eleven 12750 Main Street. 20-Beer and Wine

Page 214 ends

Page 3 of 6 ends

Staff Report to the Mayor and Council Members
CUP24-00012
April 21, 2026

vicinity of the project site. Therefore, the City Council may determine that approval of the proposed off-sale beer and wine license would serve the public convenience and necessity.

Building Design: The convenience store and carwash building design comply with the architectural guidelines of the Development Code. The building s incorporate a combination of stucco and tile, in addition to a brick wainscot. The buildings incorporate changes in wall and roof planes and include tower elements to highlight the entry features. In addition, the fuel canopy will be conditioned to incorporate the brick wainscot material to the supportive beams. (Attachment 6).

Traffic/Street Improvements: According to the City’s General Plan Circulation El ement Highway 395 is constructed as a 130-foot wide Special Street Section, which provides two travel lanes in each direction (plus ancillary lanes) and Phelan Road is to be constructed as a 120-foot-wide Major Arterial Street Section which currently provides 2 travel lanes in each direction. As part of developing the site, the developer is required to dedicate right -of-way and construct street improvements, including curb, gutter and sidewalk along the project frontages of Highway 395 and Phelan Road. In addition, the d riveway approach onto Highway 395 will be restricted to right-in and right-out only. The eastern driveway approach on Phelan Road will also be restricted to a right-in and right-out only. In addition, the project will include rubberized curbs with flexible posts along the Phelan Road median to restrict left hand turns from the project site.

Drainage: Any additional runoff created on -site will be detained in an approved storm drain storage system and an underground drainage system is proposed to store the necessary volume.

Upon completion of the on-site drainage improvements, the impact of the project upon properties downstream is not considered significant.

Water and Sewer: The project will connect to an existing 12-inch PVC water line in Phelan Road and a 12-inch PVC sewer main along Caliente Road via a lateral line which extends through an easement on the north property line of the west adjacent property.

Environmental: Approval of this development requires adoption of an Initial Study/Mitigated Negative Declaration (IS/MND) pursuant to the California Environmental Quality Act (CEQA). The IS/MND prepared for the project concluded that the project will not have any significant negative impacts on the environment upon implementation of the recommended mitigation measures. (Attachment 8)

The environmental analysis included a biological resources assessment to evaluate potential impacts to sensitive habitats and special -status species. The analysis concluded that Joshua Trees are present on the site and will require an Incidental Take Permit from the California Department of Fish and Wildlife. Additionally, the biological report shows that the site does not contain habitat for the desert tortoise nor any other threatened or endangered species. However, a pre -construction surveys for the burrowing owl and nesting bird will be conducted prior to issuance of a grading permit.

The environmental analysis also concluded that the proposed project would not result in any impacts to known archaeological resources or tribal cultural resources. However, there is potential for project -related construction to impact unknown or previously unrecorded archaeological resources. For this reason, mitigation measures are proposed in the event that cultural resources are inadvertently encountered during excavation activities. If cultural resources are found during grading, then grading activities shall cease and the applicant shall contract with a City approved archaeologist or paleontologist to monitor grading prior to resuming grading. All cultural resources discovered shall be handled in accordance with state and federal law.

Page 215 ends

Page 4 of 6 ends

Staff Report to the Mayor and Council Members
CUP24-00012
April 21, 2026

The environmental document was circulated to local, state and federal agencies and organizations as well as surrounding property owners for public review from January 20, 2026, through February 18, 2026 (SCH#2026010656). During the public review period, five comment letters were received (Attachment 7).

The table below identifies the origin of each comment letter and summarizes how the comments were addressed and incorporated into the Project’s Conditions of Approval and/or the updated Initial Study/Mitigated Negative Declaration (IS/MND). Additionally, response letters were provided to the California Department of Transportation (Caltrans) and the California Department of Water Resources (DWR) (Attachment 8).

Table 2: Comment Letters and Responses
Agency/Individual Comments and Responses
Chris Anderson
Comments: A community member raised concerns with traffic safety stating the environmental study does not adequately evaluate traffic impacts on westbound traffic along Phelan Road near the proposed gas station entrance and the need for a right-turn lane onto the project site
Response: A traffic study prepared by a California -licensed traffic engineer was submitted to the City during the entitlement review process and was accepted prior to scheduling the project for public hearing. The project is conditioned to submit a final traffic study to the City and Caltrans prior to ground disturbance. Additionally, the project applicant will be required to obtain all necessary Caltrans permits before commencing any ground-disturbing activities.

Mojave Desert
Air Quality
Management
District
(MDAQMD)
Comments: MDAQMD requested the project’s c ompliance with air quality regulations and implementation of dust control best management practices as well as district permits be obtained.

Response: The IS/MND confirms that construction and operation will comply with MDAQMD rules and regulations. The project is also conditioned to provide evidence of acceptance by MDAQMD prior to ground-disturbing activities, ensuring CEQA consistency with air quality requirements.

California
Department of
Fish and Wildlife
(CDFW)
Comments: CDFW offer ed comments and recommendations to assist in adequately identifying and/or mitigating the Project’s significant, or potentially significant, direct and indirect impacts on fish and wildlife (biological) resources . Specifically, these recommendations focused on Burrowing Owl and Nesting Birds.

Response: The IS/MND and Mitigation Monitoring and Reporting Program were updated to incorporate CDFW’s recommendations.

Biological mitigation measures now include MM BIO -2 (Pre - Construction Surveys), MM BIO-3 (Burrow Avoidance), and MM BIO- 4 (Nesting Bird Survey), ensuring project compliance with CEQA biological resource requirements.

California
Department of
Transportation
(DOT)
Comments: Caltrans requests additional traffic analyses, including truck turning templates, queuing studies, corrected trip distribution, and a stand-alone safety review with potential mitigation. The project must maintain ADA-compliant pedestrian and bicycle access during construction. Any work encroaching on Caltrans right-of-way requires an encroachment permit.

Page 216 ends

Page 5 of 6 ends

Staff Report to the Mayor and Council Members
CUP24-00012
April 21, 2026

Response: A traffic study prepared by a California -licensed traffic engineer was submitted to the City during the entitlement review process and accepted prior to scheduling the project for public hearing. The project is conditioned to submit a final traffic study to the City and Caltrans prior to any ground -disturbing activities. Caltrans’ requests have been addressed through a response letter and updates to the Conditions of Approval and IS/MND. The applicant has been issued an encroachment permit for the proposed driveway onto Highway 395 and will obtain all additional necessary Caltrans permits before c ommencing construction, ensuring CEQA compliance with transportation and safety requirements. A response letter documenting these actions was also provided to Caltrans California
Department of
Water Resources
(DWR)
Comments: DWR raised concerns that the project’s maps are outdated and lack sufficient detail to show existing development and local drainage features. The IS/MND does not provide adequate analysis of off-site stormwater flows, potential erosion, or impacts to the Oro Grande Wash and DWR rights -of-way. DWR requests a Hydrology/Drainage Study to evaluate pre - and post -development runoff and ensure the proposed underground retention facility can manage flows without affecting DWR facilities. Updated drainage plans and analyses are needed to preven t ponding, sedimentation, and scour.

Response: DWR’s concerns were addressed in a response letter as well as the updated conditions of approval and IS/MND. The IS/MND was updated to include additional detail on existing site conditions, drainage patterns, and the proposed storm drain system, as well as pre- and post-construction stormwater peak flow rates. The Project - specific Hydrology Report will be reviewed and approved by the City and provided to DWR as per the conditions of approval. All required DWR permits will be obtained prior to any ground-disturbing activities, ensuring CEQA compliance with hydrology and drainage
requirements.

Conclusion: The project conforms to the policies of the City’s General Plan and meets the standards of the Development Code and the Main Street Freeway Corridor Specific Plan. Further, approval of the sale of beer and wine is appropriate, particularly to allow the convenience store to be competitive with similar busisnesses and to meet customer demand.

CITY GOAL SUPPORTED BY THIS ITEM

Future Development - Facilitate balanced growth to ensure cohesive community development and pursue economic development.

FISCAL IMPACT

The development would generate tax revenue and is subject to applicable development impact, business license and permit fees.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

Page 217 ends

Page 6 of 6 ends

Staff Report to the Mayor and Council Members
CUP24-00012
April 21, 2026

ATTACHMENT(S)

1. Site Plan

2. Floor plan

3. Aerial Photo

4. General Plan Map

5. Census Tract Map 100.09

6. Colored Elevations (3)

7. Comment Letters (5)

8. Updated IS/MND and (2) Response Letters

9. Resolution No. 2026-07

10. Draft Conditions of Approval

Page 218 ends

PREMIUM

REGULAR DIESEL

PREMIUM

REGULAR DIESEL

PREMIUM

REGULAR DIESEL

PREMIUM

REGULAR DIESEL

PREMIUM

REGULAR
DIESEL
TR
EV
EVHC

EVHCVAN
EV
EV
EV
EV
EV
11/18/25

HESPERIA PHELAN

SITE DEVELOPMENT PLAN

PHELANROAD
HIGHWAY 395

CALIENTE ROAD
SITE

HESPERIA
”
””
OWNER:

SP 1
Attachment 1

Page 219 ends

APPLICANT(S): AUE ENERGY LLC FILE NO(S): CUP24-00012

LOCATION: NORTHWEST CORNER OF PHELAN ROAS AND HWY 395. APN(S): 3064-401-10

PROPOSAL: CONSIDERATION OF A CONDITIONAL USE PERMIT, CUP24-00012 TO CONSTRUCT A 5,915 SQUARE FOOT CON VENIENCE STORE WITH OFF-SALE OF ALCOHOL ALONG WITH A 4,080 SQUARE FOOT FUELING STATION CANOPY WITH 10 PUMPS AND A 1,968 SQUARE FOOT

DRIVE THRU CARWASH I N CONJUNCTION WITH A DOPTION OF A MITIGAT ED NEGATIVE DECLARATION PURSUANT TO THE PROVISIONS OF CEQA ON A 2.36 ACRE SITE WITHIN THE

NEIGHBORHOOD COMMERCIAL (NC) ZONE OF THE MAIN STREET AND FREEWAY CORRIDOR

SPECIFIC PLAN
N

CONVENIENCE STORE FLOOR PLAN
ATTACHMENT 2

Page 220 ends

APPLICANT(S): AUE ENERGY LLC FILE NO(S): CUP24-00012

LOCATION: NORTHWEST CORNER OF PHELAN ROAS AND HWY 395. APN(S): 3064-401-10

PROPOSAL: CONSIDERATION OF A CONDITIONAL USE PERMIT, CUP24-00012 TO CONSTRUCT A 5,915 SQUARE FOOT CONVENIENCE STORE WITH OFF -SALE OF ALCOHOL ALONG WITH A 4,080 SQUARE FOOT FUELING STATION CANOPY WITH 10 PUMPS AND A 1,968 SQUARE FOOT

DRIVE THRU CARWASH I N CONJUNCTION WITH A DOPTION OF A MITIGAT ED NEGATIVE DECLARATION PURSUANT TO THE PROVISIONS OF CEQA ON A 2.36 ACRE SITE WITHIN THE

NEIGHBORHOOD COMMERCIAL (NC) ZONE OF THE MAIN STREET AND FREEWAY CORRIDOR

SPECIFIC PLAN
N

AERIAL
ATTACHMENT 3

Page 221 ends

APPLICANT(S): AUE ENERGY LLC FILE NO(S): CUP24-00012

LOCATION: NORTHWEST CORNER OF PHELAN ROAS AND HWY 395. APN(S): 3064-401-10

PROPOSAL: CONSIDERATION OF A CONDITIONAL USE PERMIT, CUP24-00012 TO CONSTRUCT A 5,915 SQUARE FOOT CONVENIENCE STORE WITH OFF -SALE OF ALCOHOL ALONG WITH A 4,080 SQUARE FOOT FUELING STATION CANOPY WITH 10 PUMPS AND A 1,968 SQUARE FOOT

DRIVE THRU CARWASH I N CONJUNCTION WITH A DOPTION OF A MITIGAT ED NEGATIVE DECLARATION PURSUANT TO THE PROVISIONS OF CEQA ON A 2.3 6 ACRE SITE WITHIN THE

NEIGHBORHOOD COMMERCIAL (NC) ZONE OF THE MAIN STREET AND FREEWAY CORRIDOR

SPECIFIC PLAN
N

GENERAL PLAN LANDUSE MAP
ATTACHMENT 4

Page 222 ends

APPLICANT(S): AUE ENERGY LLC FILE NO(S): CUP24-00012

LOCATION: NORTHWEST CORNER OF PHELAN ROAS AND HWY 395. APN(S): 3064-401-10

PROPOSAL: CONSIDERATION OF A CONDITIONAL USE PERMIT, CUP24-00012 TO CONSTRUCT A 5,915 SQUARE FOOT CONVENIENCE STORE WITH OFF-SALE OF ALCOHOL ALONG WITH A 4,080 SQUARE FOOT FUELING STATION CANOPY WITH 10 PUMPS AND A 1,968 SQUARE FOOT

DRIVE THRU CARWASH I N CONJUNCTION WITH A DOPTION OF A MITIGAT ED NEGATIVE DECLARATION PURSUANT TO THE PROVISIONS OF CEQA ON A 2.36 ACRE SITE W ITHIN THE

NEIGHBORHOOD COMMERCIAL (NC) ZONE OF THE MAIN STREET AND FREEWAY CORRIDOR

SPECIFIC PLAN
N

CENSUS TRACT MAP

ATTACHMENT 5

Page 223 ends

APPLICANT(S): AUE ENERGY LLC FILE NO(S): CUP24-00012

LOCATION: NORTHWEST CORNER OF PHELAN ROAS AND HWY 395. APN(S): 3064-401-10

PROPOSAL: CONSIDERATION OF A CONDITIONAL USE PERMIT, CUP24-00012 TO CONSTRUCT A 5,915 SQUARE FOOT CO NVENIENCE STORE WITH OFF-SALE OF ALCOHOL ALONG WITH A 4,080 SQUARE FOOT FUELING STATION CANOPY WITH 10 PUMPS AND A 1,968 SQUARE FOOT

DRIVE THRU CARWASH I N CONJUNCTION WITH A DOPTION OF A MITIGAT ED NEGATIVE DECLARATION PURSUANT TO THE PROVISIONS OF CEQA ON A 2.36 ACRE SITE WIT HIN THE

NEIGHBORHOOD COMMERCIAL (NC) ZONE OF THE MAIN STREET AND FREEWAY CORRIDOR

SPECIFIC PLAN
N

CONVENIENCE STORE ELEVATIONS

ATTACHMENT 6

Page 224 ends

APPLICANT(S): AUE ENERGY LLC FILE NO(S): CUP24-00012

LOCATION: NORTHWEST CORNER OF PHELAN ROAS AND HWY 395. APN(S): 3064-401-10

PROPOSAL: CONSIDERATION OF A CONDITIONAL USE PERMIT, CUP24-00012 TO CONSTRUCT A 5,915 SQUARE FOOT CONVENIENCE STORE WITH OFF-SALE OF ALCOHOL ALONG WITH A 4,080 SQUARE FOOT FUELING STATION CANOPY WITH 10 PUMPS AND A 1,968 SQUARE FOOT

DRIVE THRU CARWASH I N CONJUNCTION WITH A DOPTION OF A MITIGAT ED NEGATIVE DECLARATION PURSUANT TO THE PROVISIONS OF CEQA ON A 2.36 AC RE SITE WITHIN THE

NEIGHBORHOOD COMMERCIAL (NC) ZONE OF THE MAIN STREET AND FREEWAY CORRIDOR

SPECIFIC PLAN
N

CARWASH ELEVATIONS

ATTACHMENT 5

Page 225 ends

APPLICANT(S): AUE ENERGY LLC FILE NO(S): CUP24-00012

LOCATION: NORTHWEST CORNER OF PHELAN ROAS AND HWY 395. APN(S): 3064-401-10

PROPOSAL: CONSIDERATION OF A CONDITIONAL USE PERMIT, CUP24-00012 TO CONSTRUCT A 5,915 SQUARE FOOT CONVENIENCE STORE WITH OFF-SALE OF ALCOHOL ALONG WITH A 4,080 SQUARE FOOT FUELING STATION CANOPY WITH 10 PUMPS AND A 1,968 SQUARE FOOT

DRIVE THRU CARWASH I N CONJUNCTION WITH A DOPTION OF A MITIGAT ED NEGATIVE DECLARATION PURSUANT TO THE PROVISIONS OF CEQA ON A 2.36 ACRE SITE W ITHIN THE

NEIGHBORHOOD COMMERCIAL (NC) ZONE OF THE MAIN STREET AND FREEWAY CORRIDOR

SPECIFIC PLAN
N

FUEL CANOPY ELEVATIONS

ATTACHMENT 5

Page 226 ends

Page 227 ends

Page 228 ends

Page 229 ends

Page 230 ends

Page 231 ends

Page 232 ends

Page 233 ends

Page 234 ends

Page 235 ends

Page 236 ends

Page 237 ends

Page 238 ends

Page 239 ends

Page 240 ends

Page 241 ends

Page 242 ends

Page 243 ends

Page 244 ends

AU EN

ERGY, LLC
HESPERIA PHELAN CUP24-00012

INITIAL STUDY/MITIGATED NEGATIVE DECLARATION
MARCH 2026
PREPARED FOR:

Attachment 8

Page 245 ends

Page 246 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 i

TABLE OF CONTENTS
1 – BACKGROUND ........................................................................................................ 1

1.1 Project Title ..................................................................................................... 1

1.2 Lead Agency Name and Address .................................................................... 1

1.3 Contact Person and Phone Number ............................................................... 1

1.4 Project Location .............................................................................................. 1

1.5 Project Sponsor’s Name and Address ............................................................ 1

1.6 General Plan Designation and Zoning ............................................................ 1

1.7 Description of Project ...................................................................................... 1

1.8 Surrounding Land Uses and Setting ............................................................. 11

1.9 Other Public Agencies Whose Approval is Required .................................... 12

1.10 California Native American Tribes ................................................................. 12 2 – ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED ................................. 13 3 – DETERMINATION .................................................................................................. 14 4 – ENVIRONMENTAL ANALYSIS .............................................................................. 15

4.1 Aesthetics ...................................................................................................... 15

4.2 Agriculture and Forestry Resources .............................................................. 17

4.3 Air Quality ...................................................................................................... 20

4.4 Biological Resources ..................................................................................... 25

4.5 Cultural Resources ........................................................................................ 32

4.6 Energy ........................................................................................................... 35

4.7 Geology and Soils ......................................................................................... 37

4.8 Greenhouse Gas Emissions .......................................................................... 43

4.9 Hazards and Hazardous Materials ................................................................ 46

4.10 Hydrology and Water Quality ........................................................................ 50

4.11 Land Use and Planning ................................................................................. 54

4.12 Mineral Resources ........................................................................................ 56

4.13 Noise ............................................................................................................. 57

4.14 Population and Housing ................................................................................ 61

4.15 Public Services .............................................................................................. 62

4. 16 Recreation ..................................................................................................... 65

4.17 Transportation ............................................................................................... 66

4.18 Tribal Cultural Resources .............................................................................. 70

4.19 Utilities and Service Systems ........................................................................ 73

4.20 Wildfire .......................................................................................................... 77

4.21 Mandatory Findings of Significance .............................................................. 81 5 – REFERENCES ........................................................................................................ 90

5.1 Aesthetics ...................................................................................................... 90

5.2 Agriculture and Forestry Resources .............................................................. 90

5.3 Air Quality ...................................................................................................... 90

5.4 Biological Resources ..................................................................................... 91

5.5 Geology and Soils ......................................................................................... 91

5.6 Greenhouse Gas Emissions .......................................................................... 92

5.7 Hazards and Hazardous Materials ................................................................ 93

5.8 Hydrology and Water Quality ........................................................................ 93

5.9 Land Use and Planning ................................................................................. 94

Page 247 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
ii Hesperia Phelan CUP24-00012

5.10 Mineral Resources ........................................................................................ 94

5.11 Noise ............................................................................................................. 95

5.12 Population and Housing ................................................................................ 95

5.13 Public Services .............................................................................................. 95

5.14 Recreation ..................................................................................................... 96

5.15 Transportation ............................................................................................... 96

5.16 Utilities and Service Systems ........................................................................ 96

5.17 Wildfire .......................................................................................................... 96

5.18 Mandatory Findings of Significance .............................................................. 97

LIST OF FIGURES
Figure 1: Regional Location ............................................................................................ 3 Figure 2: Project Site ....................................................................................................... 5 Figure 3: Site Development Plan ..................................................................................... 7

LIST OF TABLES
Table 1: MDAQMD Average Daily Construction Emissions .......................................... 22 Table 2: MDAQMD Average Annual Operational Emissions ......................................... 23 Table 3: Faults Located within 10 Miles of the Project .................................................. 38 Table 4: Average Daily Construction GHG Emissions .................................................. 44 Table 5: Average Annual Operational GHG Emissions ................................................. 44 Table 6: Proposed and Approved Projects within 0.5 Mile ............................................ 85

LIST OF ATTACHMENTS
Attachment A: CalEEMod: Hesperia Phelan Detailed Report Attachment B: Biological Resources Assessment
Attachment C: Archaeological Survey Report
Attachment D: Geotechnical Study
Attachment E: Infiltration Feasibility Study
Attachment F: Scoping Agreement Memorandum

Page 248 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 1

1 – BACKGROUND

1.1 PROJECT TITLE
Au Energy, LLC (Au Energy) Hesperia Phelan CUP24-00012 (Project)

1.2 LEAD AGENCY NAME AND ADDRESS
City of Hesperia Planning Department
9700 Seventh Avenue
Hesperia, CA 92345

1.3 CONTACT PERSON AND PHONE NUMBER
Leilani Henry, Associate Planner
(760) 947-1231

1.4 PROJECT LOCATION
As shown in Figure 1: Regional Location and Figure 2: Project Site, the Project is located on the northwest corner of United States (U.S.) Highway 395 and Phelan Road in the City of Hesperia (City) in San Bernardino County, California (Assessor’s Parcel Numbers [APN] 3064-401-10).

1.5 PROJECT SPONSOR’S NAME AND ADDRESS
Au Energy, LLC
41805 Albrae Street
Fremont, CA 94538

1.6 GENERAL PLAN DESIGNATION AND ZONING
The Project site is located on parcels zoned as Neighborhood Commercial (NC) in the City’s Main Street and Freeway Corridor Specific Plan. Consistent with the City’s Main Street and Freeway Corridor Specific Plan and the NC zone provisions, which encourage the development of businesses that provide convenience goods and services to local residents, this Project will provide fuel, car wash services, and convenience store sales, including the retail sale of beer and wine for off-site consumption.

1.7 DESCRIPTION OF PROJECT
An Initial Study/Mitigated Negative Declaration (IS/MND) for the Project was previously submitted to the City as Conditional Use Permit (CUP) 18-00003 on August 9, 2018. Since that time, the IS/MND and CUP authorization have expired. The currently proposed Project is in roughly the same location and of the same nature as the Project proposed in the original IS/MND, with design changes that have led to a reduced Project scope. As a result, the Project is now primarily limited to one parcel (APN 3064-401-10), with utilities and services extending onto Phelan Road and adjacent parcels. While the size of the proposed convenience store and car wash have increased, the size of the fueling station has decreased, and the fast-food restaurant

Page 249 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
2 Hesperia Phelan CUP24-00012

and food truck commissary have been removed from the Project scope. Findings and technical reports from the original IS/MND were referenced during preparation of this IS/MND; however, all findings have been verified through additional desktop and/or field review. The updated description of the Project is provided in the following subsections.

1.7.1 Project Structures
The Project includes the construction and operation of a 5,915-square-foot convenience store, five fuel islands (10 pumps total) beneath a 4,080-square-foot canopy, and a 1,968-square-foot automated car wash tunnel on an approximately 115,870-square-foot (2.66-acre) site, as depicted in Figure 3: Site Development Plan. The Project is located on APN 3064-401-10, as depicted in Figure 2: Project Site, with grading and landscaping extending onto APNs 3064-401-06 and 3064-401-09, and the proposed sewer line extending onto APN 3064-401-09, as depicted in Figure 3: Site Development Plan.

The convenience store is proposed to be located at the center of the Project site, approximately 60 feet west of the proposed fueling station and approximately 73 feet south of the proposed car wash. A total of 40 parking spaces are proposed, including 21 standard spaces, 10 standard spaces that are electrical vehicle capable
1, two spaces served by electrical vehicle charging
stations, two handicap-accessible spaces, four spaces for use of a vacuum, and one space for use of pressurized air/water. The vacuum and air/water spaces are associated with the proposed car wash and provide users with the ability to manually clean the interior or exterior of their vehicles. Underground storage tanks (USTs) will be located in the southeastern corner of the Project site.

1.7.2 Landscaping and Paving
The entire approximately 2.66-acre site will be developed for the Project, with approximately

1.88 acres (81,893 square feet) of paved surface area and approximately 0.78 acre (33,977 square feet) of landscaped surface area. Because the Project site slopes gradually from northeast to southwest with an approximate slope of 3 percent, the entire Project site will be graded to create a flat surface. The Project will include approximately 0.35 acre (15,246 square feet) of flat landscaped area and approximately 0.43 acre (18,731 square feet) of sloped landscaped area, as depicted in Figure 3: Site Development Plan.

1.7.3 Project Access
Two driveways are proposed for the Project: one on the northeastern corner of the Project site off U.S. Highway 395, and the second on the southwestern corner of the Project site off Phelan Road. As a result, access to the site is proposed from a right-in and right-out-only approach on both U.S. Highway 395 and Phelan Road. During construction, the Project will either be accessed from the proposed driveway off Phelan Road, as shown in Figure 3: Site Development Plan, or a temporary access road in the same location as the sewer line, as shown in Figure 2:

Project Site.

1 A vehicle space with electrical panel space and load capacity to support a branch circuit and necessary raceways, both underground and/or surface mounted, to support electric vehicle charging.

Page 250 ends

Hesperia
189
206
330
173
18 138
18 18
138
18 395
15 15
215
Hesperia PhelanFigure 1: Regional Location
Project Location
Interstate
U.S. Highway
Major Road/State Highway
City Boundary
0 2 4
Miles
1 inch = 4 miles
Z:\Projects\Au_Energy_Hesperia_Phelan_Gas_Station\MXDs\Regional_Location.mxd 6/4/2025

Page 251 ends

Page 252 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 5

Figure 2: Project Site

Page 253 ends

395
Phelan Road
Caliente Road
3064-401-103064-401-09
3064-401-06
Hesperia PhelanFigure 2: Project Site
Potential Temporary Access Road
Proposed Sewer Line
Project Site
Parcel Boundary
City Boundary
0 200 400
Feet
1:3,000
Z:\Projects\Au_Energy_Hesperia_Phelan_Gas_Station\MXDs\Project_Site.mxd 6/4/2025

Page 254 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 7

Figure 3: Site Development Plan

Page 255 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 11

1.7.4 Road Improvements
The Project includes improvements to U.S. Highway 395, Phelan Road, and the traffic signal on the northwestern corner of the Phelan Road and U.S. Highway 395 intersection, as depicted in Figure 3: Site Development Plan. The southbound side of U.S. Highway 395 will be widened to 58 feet from the centerline to allow for the following:
• installation of a 3-foot-wide median at the centerline, • a dedicated bike lane along the southbound side,
• a dedicated right-turn lane to access the Project and to turn right onto Phelan Road, • two southbound lanes, and
• one left-turn lane to travel east.

Rubberized curbs with flexible posts are proposed along the Phelan Road median.

1.7.5 Utilities
Utilities and services (e.g., a sewer line, water line, fire line, and storm drain) will extend off the Project site. The proposed sewer line will extend west from the proposed convenience store and cross APN 3064-401-09 before connecting to an existing sewer force main. The proposed water line will be located beneath Phelan Road and will extend north to connect to the proposed convenience store and car wash. The proposed fire line will extend north from Phelan Road to the proposed convenience store. The proposed storm drain will be located east of the proposed fueling station and will extend from the proposed car wash to Phelan Road, which connects to the public storm drain system and travels underneath Main Street eventually discharging to the Oro Grande Wash, approximately 1,480 east of the Project site. To mitigate for additional stormwater flows, the proposed on-site storm drain system will connect to an underground retention facility located east of the proposed fueling station to retain any additional stormwater runoff and discharge through the new proposed storm drain to Phelan Road. The underground retention facility will be capable of retaining stormwater flows from a 100-year storm event and will reduce post-Project peak flows to less than pre-Project conditions. Implementation of the underground retention facility is anticipated to reduce 100-year peak flow rates from 6.90 cubic feet per second (cfs) under pre-Project conditions to 6.70 cfs under post-Project conditions.

1.7.6 Project Schedule
Construction of the Project is anticipated to start in the first quarter of 2026 following approval from the City and will be completed in two phases. The first phase will consist of site grading and utility installation, and the second phase will include UST and structure installation, as well as landscaping. Project construction is anticipated to last between 200 and 250 days and is expected to be completed in the third quarter of 2026.

1.8 SURROUNDING LAND USES AND SETTING
APNs 3064-401-06, 3064-401-09, and 3064-401-10 are vacant. The parcel abutting APN 3064-401-09 to the west (i.e., APN 3064-391-01) is under construction for the Hesperia Commerce Center II Project, which includes the construction of three industrial/warehouse buildings. Parcels to the north, east, and south are vacant.

Page 256 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
12 Hesperia Phelan CUP24-00012

1.9 OTHER PUBLIC AGENCIES WHOSE APPROVAL IS REQUIRED
To implement the Project, Au Energy will need to obtain, at a minimum, the following discretionary permits/approvals:
• a City-issued CUP to permit the construction and operation of the convenience store with alcoholic beverage sales for off-site consumption, vehicle fuel stations, and car wash facilities in the NC zone;
• a California Department of Transportation-issued encroachment permit to permit the modifications to U.S. Highway 395, as well as the U.S. Highway 395 and Phelan Road intersection;
• a California Department of Fish and Wildlife-issued Western Joshua Tree Conservation Act Incidental Take Permit (ITP) or Section 2081 ITP to authorize relocation and removal of western Joshua tree (Yucca brevifolia);
• a Mojave Desert Air Quality Management District-issued Authority to Construct to permit the construction and operation of the vehicle fuel stations and associated USTs; • City-issued encroachment, grading, and building permits; and • a State Water Resources Control Board-issued National Pollutant Discharge Elimination System General Permit (Order WQ 2022-0057-DWQ NPDES No. CAS000002) for disturbing more than 1 acre of land.

1.10 CALIFORNIA NATIVE AMERICAN TRIBES
The City distributed a letter for the Project pursuant to PRC Section 21080.3.1 on August 1, 2025. On August 12, 2025, the Yuhaaviatam of San Manuel Nation (YSMN, also known as the San Manuel Band of Mission Indians) requested that the Project cultural report, geotechnical report, and plans detailing the proposed depth of ground disturbance be provided. The requested materials were provided to the City for distribution to the YSMN on August 15, 2025. After review of the requested materials, the YSMN provided mitigation measures that were incorporated into this IS/MND in September 2025.

Page 257 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 13

2 – ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED
The environmental factors checked below would be potentially affected by Hesperia Phelan CUP24-00012, as indicated by the following checklist.
☒ Aesthetics
☐ Agriculture and Forestry Resources
☒ Air Quality
☒ Biological Resources
☒ Cultural Resources
☒ Energy
☒ Geology and Soils
☒ Greenhouse Gas Emissions
☒ Hazards and Hazardous Materials
☒ Hydrology and Water Quality
☐ Land Use and Planning
☐ Mineral Resources
☒ Noise
☐ Population and Housing
☒ Public Services
☐ Recreation
☒ Transportation
☒ Tribal Cultural Resources
☒ Utilities and Service Systems
☒ Wildfire
☒ Mandatory Findings of Significance

Page 258 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
14 Hesperia Phelan CUP24-00012

3 – DETERMINATION
On the basis of this initial evaluation:
☐ I find that the Project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared.
☐ I find that although the Project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared.
☐ I find that the Project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT (EIR) is required.
☐ I find that the Project MAY have a “potentially significant impact” or “potentially significant unless mitigated” impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An EIR is required, but it must analyze only the effects that remain to be addressed.
☐ I find that although the Project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the Project, nothing further is required.
____________________________________
Name
____________________________________
Signature
____________________________________
Agency
____________________________________
Date

Page 259 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 15

4 – ENVIRONMENTAL ANALYSIS

4.1 AESTHETICS
Except as provided in Public Resources
Code Section 21099, would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
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 nonurbanized areas, substantially
degrade the existing visual character or
quality of public views of the site and its
surroundings? (Public views are those that
are experienced from publicly accessible
vantage point.) If 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?


4.1.1 Discussion
a) Would the project have a substantial adverse effect on a scenic vista? Less-than-Significant Impact. The scenic resources listed in the City of Hesperia (City) General Plan 2010 Open Space Element (General Plan) include the Mojave River and its associated tributary washes, including the Oro Grande Wash, as well as the San Bernardino and San Gabriel mountain ranges (City of Hesperia 2010). However, no scenic vistas are designated or described in the General Plan. The Hesperia Phelan CUP24-00012 (Project) site is located on undeveloped land, bordered by undeveloped land to the north and west, Phelan Road to the south, and Highway 395 to the east. The Oro Grande Wash is located approximately 680 feet southeast of the Project area; however, public viewpoints of Oro Grande Wash from Highway 395 and Phelan Road will not be obstructed by the construction of the Project. In addition, the Project will comply with the City’s Municipal Code Title 15 (Building and Construction) and Title 16 (Development) concerning building height, which will reduce the potential for the structures to obstruct the public view of Oro Grande Wash (City of Hesperia 2025a and City of Hesperia 2025b). As a result, the impact will be less than significant.

Page 260 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
16 Hesperia Phelan CUP24-00012

b) Would the project substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway?
No Impact. No designated state scenic highways are located within five miles of the Project area; thus, no scenic resources will be substantially damaged within a state scenic highway. As a result, no impact will occur.
c) In nonurbanized areas, would the project substantially degrade the existing visual character or quality of public views of the site and its surroundings? (Public views are those that are experienced from publicly accessible vantage point.) If the project is in an urbanized area, would the project conflict with applicable zoning and other regulations governing scenic quality? Less-than-Significant Impact. The Project is located within an undeveloped area, approximately 0.3 mile west of an existing residential subdivision and approximately 1 mile west of an existing commercial area. Given nearby land uses and the Project’s proximity to existing developed areas, the Project will not substantially degrade the existing visual character or quality of the site and its surroundings. Further, as described in Section 4.11 Land Use, the Project will be located on a parcel designated as Neighborhood Commercial (NC) in the City’s Main Street and Freeway Corridor Specific Plan (City of Hesperia 2008). The Project will be consistent with the NC zone, which encourages the development of businesses that provide convenience goods and services to local residents, such as the services that will be provided by the Project when completed. The Project will also comply with Titles 15 and 16 of the City’s Municipal Code, which include building height limitations, signage requirements, and other aesthetic regulations to which the Project will adhere (City of Hesperia 2025a and City of Hesperia 2025b). As a result, the impact will be less than significant.
d) Would the project create a new source of substantial light or glare which would adversely affect day or nighttime views in the area?
Less-than-Significant Impact. Construction of the Project will be conducted in accordance with City of Hesperia Municipal Code Section 16.20.125, which stipulates construction hours and noise thresholds. Construction activities will be conducted during both daytime and nighttime hours. Nighttime construction activities will be conducted in accordance with the Project’s traffic control plan approved by the City and California Department of Transportation as part of the permitting process prior to construction. Additionally, light plants used for nighttime construction will be directed away from traffic and any nearby residents to reduce glare. Once completed, the commercial buildings associated with the Project will produce additional light and glare in the area due to lighting on the vehicle fueling station overhang and convenience store; however, all exterior light fixtures will be constructed in accordance with Section 16.16.365 of the City’s Municipal Code Section to be shielded and directed away from vehicular traffic and/or adjacent properties to reduce glare (City of Hesperia 2025b). As a result, the impact will be less than significant.

Page 261 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 17

4.2 AGRICULTURE AND FORESTRY RESOURCES
In determining whether impacts to
agricultural resources are significant
environmental effects, lead agencies may
refer to the California Agricultural Land
Evaluation and Site Assessment Model
(1997) prepared by the California Dept. of
Conservation as an optional model to use in
assessing impacts on agriculture and
farmland. In determining whether impacts to
forest resources, including timberland, are
significant environmental effects, lead
agencies may refer to information compiled
by the California Department of Forestry and
Fire Protection regarding the state’s
inventory of forest land, including the Forest
and Range Assessment Project and the
Forest Legacy Assessment project; and
forest carbon measurement methodology
provided in Forest Protocols adopted by the
California Air Resources Board. Would the
project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
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 non-
agricultural 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 the 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?


Page 262 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
18 Hesperia Phelan CUP24-00012

4.2.1 Discussion
a) Would the project 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 non-agricultural use?
No Impact. The Hesperia Phelan CUP24-00012 (Project) site is located on undeveloped land designated as Grazing Land by the California Department of Conservation’s (DOC’s) Farmland Mapping and Monitoring Program (California DOC 2022). The immediately adjacent parcels on all sides of the Project are also designated as Grazing Land. The Project will not be located on lands designated as Prime Farmland, Unique Farmland, or Farmland of Statewide Importance; therefore, the Project will not convert any Prime Farmland, Unique Farmland, or Farmland of Statewide Importance to non-agricultural use. The Project is not located on land with any known agricultural activities or any known unique agricultural soils. As a result, no impact will occur. b) Would the project conflict with existing zoning for agricultural use, or a Williamson Act contract?
No Impact. The Project is located on a parcel zoned as Neighborhood Commercial (NC) in the City of Hesperia’s Main Street and Freeway Corridor Specific Plan (City of Hesperia 2008).

Agricultural uses are prohibited in the NC zone. In addition, the Project is not located on or adjacent to parcels under an existing Williamson Act contract (California DOC 2025). As previously discussed, the Project is located on undeveloped land that does not contain any known agricultural activities. Therefore, the Project will not conflict with existing zoning for agricultural use or an existing Williamson Act contract. As a result, no impact will occur. c) Would the project 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))? No Impact. As discussed previously, the Project is on a parcel zoned as NC. No areas of forest land, timberland, or timberland zoned as Timberland Production are located in the vicinity of the Project. Therefore, the Project will not conflict with the zoning or cause the rezoning of forest lands or result in the conversion of timberland as none are present in the vicinity of the Project.

As a result, no impact will occur.
d) Would the project result in the loss of forest land or conversion of forest land to non-forest use?
No Impact. The Project is located within the Mojave bioregion, which does not contain sufficient forest land for viable timber production and, as a result, does not have a high timber management emphasis (California Department of Forestry and Fire Protection 2017). The Project is not located on forest land or in the vicinity of forest land. Therefore, the Project will not result in the loss of forest land or conversion of forest land to non-forest use as none is present in the vicinity of the Project. As a result, no impact will occur.

Page 263 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 19

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? No Impact. As discussed previously, the Project will not result in the temporary or permanent loss of forest land and no Prime Farmland, Unique Farmland, or Farmland of Statewide Importance will be converted to non-agricultural use. Therefore, the Project will not involve changes to the existing environment that will potentially result in the conversion of Prime Farmland, Unique Farmland, or Farmland of Statewide Importance to non-agricultural use or conversion of forest land to non-forest use. As a result, no impact will occur.

Page 264 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
20 Hesperia Phelan CUP24-00012

4.3 AIR QUALITY
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
following determinations. Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
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?


4.3.1 Discussion
a) Would the project conflict with or obstruct implementation of the applicable air quality plan?
No Impact. The United States (U.S.) Environmental Protection Agency (EPA) and California Air Resources Board (CARB) established the National Ambient Air Quality Standards (NAAQS) and California Air Quality Standards (CAAQS), respectively, for the following criteria air pollutants (CAPs): ozone (O
3), carbon monoxide (CO), nitrogen dioxide, particulate matter with a mean diameter of less than 10 microns (PM10), particulate matter with a mean diameter of less than 2.5 microns (PM2.5), sulfur dioxide, and lead (Pb). Furthermore, California has set additional standards for sulfates, hydrogen sulfide (H2S), vinyl chloride, and visibility- reducing particles. Attainment of the CAAQS and NAAQS protects sensitive receptors and the public from CAPs that are known to have adverse human health effects. A region is designated as nonattainment if the NAAQS or CAAQS is exceeded for a pollutant. Hesperia Phelan CUP24- 00012 (Project) is located in a portion of the Mojave Desert Air Basin that is classified by the U.S. EPA and CARB as nonattainment for O
3 and PM10 (CARB 2025). Within the Mojave
Desert Air Basin, the Project is under the jurisdiction of the Mojave Desert Air Quality Management District (MDAQMD).

The MDAQMD is the agency responsible for managing the local air quality, administering California and federal air pollution control programs, and ensuring attainment and maintenance of the ambient air quality standards. The MDAQMD has established the Federal 70 ppb Ozone Attainment Plan (MDAQMD 2023) and Federal Particulate Matter (PM 10) Attainment Plan
(MDAQMD 1995) to address nonattainment areas for O3 and PM10. A project is considered inconsistent with an air quality plan or applicable attainment plan if it could cause population and/or employment growth or growth in vehicle miles traveled in excess of the growth forecasts

Page 265 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 21

included in an applicable air quality plan or attainment plan. As discussed in Section 4.14 Population and Housing, the Project will not result in significant population growth during construction or operation of the Project. Because construction of the Project will not result in significant population growth, it will not conflict with the growth projections used in the development of the applicable air quality plans.

Emissions associated with Project construction will be temporary and will represent a small fraction of the regional emission inventories included in the applicable air quality plans.

Construction and operation of the Project will be performed in compliance with MDAQMD rules and regulations, ensuring that activities are consistent with air district efforts to achieve attainment and maintenance of the standards. In addition, the MDAQMD has established that a project does not conflict with an air attainment or maintenance plan if it is consistent with the existing land use plan (MDAQMD 2020). As discussed in Section 4.11 Land Use and Planning, the Project is consistent with the City of Hesperia-designated Neighborhood Commercial zone in which it is proposed. As a result, the Project will conform with applicable air quality plans.

Because the Project is not expected to substantially contribute to regional emissions and will not conflict with the growth projections in the applicable air quality plans, and because construction and operation of the Project will be performed in compliance with applicable air district rules and regulations, the Project will not conflict with or obstruct implementation of the applicable air quality plans. As a result, no impact will occur.
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? Less-than-Significant Impact. Project emissions were calculated using the California Emissions Estimator Model (CalEEMod). Attachment A: CalEEMod: Hesperia Phelan Detailed Report details the inputs and results of the CalEEMod completed for the Project.

Active Project construction is expected to last between 200 and 250 days and will generate temporary air pollutant emissions associated with fugitive dust (particulate matter) and exhaust emissions from heavy construction equipment and construction vehicles. As discussed previously, the Project is in a region classified as nonattainment for O 3 and PM10. The
MDAQMD has established emissions thresholds for the following air pollutants:
• carbon dioxide equivalent (CO2e),2
• CO,
• nitrogen oxides (NOx),
• volatile organic compounds (VOCs),
• sulfur oxides (SOx)
• PM10,
• PM2.5,

2 CO2e is a measure used to compare the effect of emissions of various greenhouse gases based on their global warming potential projected over a specified time period (generally 100 years).

Page 266 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
22 Hesperia Phelan CUP24-00012

• H2S, and
• Pb.

Emissions will vary day to day depending on the level of activity and the specific type of construction activity occurring. Table 1: MDAQMD Average Daily Construction Emissions presents the estimated uncontrolled construction emissions in the MDAQMD and compares emissions to the applicable thresholds for air pollutants. As shown in Table 1: MDAQMD Average Daily Construction Emissions, daily uncontrolled emissions will be below all applicable thresholds within the MDAQMD during construction. To further reduce fugitive dust emissions, the Project will adhere to MDAQMD Rule 403 and implement applicable fugitive dust best management practices (BMPs) on all non-paved transport roads, access points, and parking areas. BMPs to control fugitive dust emissions may include, but may not be limited to, covering, watering, or treating disturbed areas with a dust suppressant; reducing the drop heights from excavators and loaders; and limiting truck speed limits to 15 miles per hour on Project access roads and within temporary work areas. Therefore, the Project will not result in a considerable net increase of O
3 or PM10 during construction.

Table 1: MDAQMD Average Daily Construction Emissions
Construction
Year
Average Daily Emissions (pounds per day)
CO2e CO NOx Reactive Organic
Gas (ROG) SOx PM10 PM2.5
Uncontrolled Emissions
2026 2,066 7 7 0.8 <0.1 6 0.9
Threshold 548,000 548 137 137 137 82 65
Exceeded? No No No No No No No
Source: MDAQMD 2020
Note: O3 forms as a result of chemical reactions between NOx, VOCs, heat, and sunlight. As a result, if emissions do not exceed thresholds for NOx or VOCs, then emissions will not exceed thresholds for O3.

Operation of the Project is anticipated to generate 1,594 total daily trips. Table 2: MDAQMD Average Annual Operational Emissions presents the estimated annual uncontrolled emissions in the MDAQMD that will result from the total daily trips generated by operation of the Project. As shown in Table 2: MDAQMD Average Annual Operational Emissions, annual uncontrolled emissions will be below all applicable thresholds within the MDAQMD during operation.

Therefore, the Project will not result in a considerable net increase of O3 or PM10 during operation.

Page 267 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 23

Table 2: MDAQMD Average Annual Operational Emissions

Annual Emissions (tons per year)
CO2e CO NOx ROG SOx PM10 PM2.5
Uncontrolled Emissions
Operations 4,070 32 4 10 <0.1 3 0.8
Threshold 100,000 100 25 25 25 15 12
Exceeded? No No No No No No No
Source: MDAQMD 2020
Note: O3 forms as a result of chemical reactions between NOx, VOCs, heat, and sunlight. As a result, if emissions do not exceed thresholds for NOx or VOCs, then emissions will not exceed thresholds for O3.

In June 2025, the MDAQMD issued an Authority to Construct (ATC) for the Project’s gasoline dispensing facility. The Project will comply with all conditions outlined in the ATC. Au Energy, LLC will ensure any additional MDAQMD-required permits are obtained prior to Project construction.

Because the Project will not exceed applicable MDAQMD thresholds for O3 or PM10 during construction or operation and will adhere to applicable MDAQMD rules and permits, the Project will not result in a cumulatively considerable net increase of any CAPs for which the Project region is classified as nonattainment for under NAAQS or CAAQS. As a result, impacts will be less than significant.
c) Would the project expose sensitive receptors to substantial pollutant concentrations?
Less-than-Significant Impact. As defined by MDAQMD, residences, schools, daycare centers, playgrounds, and medical facilities are considered sensitive receptor land uses. The MDAQMD has established that a gasoline-dispensing facility within 300 feet of sensitive receptors exposes sensitive receptors to substantial pollutant concentrations (MDAQMD 2020). The nearest sensitive receptors to the Project are the residences approximately 0.3 mile (1,700 feet) east of the Project on Mesa Linda Street. Therefore, the Project will not expose sensitive receptors to substantial pollutant concentrations. In addition, as detailed in Table 1: MDAQMD Average Daily Construction Emissions and Table 2: MDAQMD Average Annual Operational Emissions, all construction and operation emissions will be below applicable MDAQMD significance thresholds. As a result, the Project will not expose sensitive receptors to substantial pollutant concentrations, and impacts will be less than significant. d) Would the project result in other emissions (such as those leading to odors) adversely affecting a substantial number of people?
Less-than-Significant Impact. The occurrence and severity of odor impacts depend on numerous factors, including the nature, frequency, and intensity of the source; wind speed and direction; and the presence of sensitive receptors. While offensive odors rarely cause any physical harm, they still can be very unpleasant, leading to considerable distress and often generating citizen complaints to local governments and regulatory agencies. During construction, odor emissions could be generated by diesel-powered construction equipment and vehicles. Such

Page 268 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
24 Hesperia Phelan CUP24-00012

odors will be short-term and limited to the immediate vicinity of the activity. These emissions will be temporary in nature and disperse quickly. Operation of the Project may result in gasoline odors from the long-term handling and storage of gasoline, vehicle tail pipe odors, food odors from the convenience store, and cleaning product odors from the car wash. As discussed previously, the nearest sensitive receptors to the Project are the residences approximately

0.3 mile (1,700 feet) east of the Project on Mesa Linda Street. Because the Project is located more than 1,500 feet from people residing near the Project, temporary Project construction activities and permanent operational activities are not expected to result in odors or emissions that will adversely affect a substantial number of people. Therefore, the Project will not result in other emissions (such as those leading to odors) that will adversely affect a substantial number of people. As a result, impacts will be less than significant

Page 269 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 25

4.4 BIOLOGICAL RESOURCES
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
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 or U.S. Fish and Wildlife Service?

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
California Department of Fish and Wildlife or
U.S. Fish and Wildlife Service?

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, or
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?


4.4.1 Discussion
a) Would the project have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or

Page 270 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
26 Hesperia Phelan CUP24-00012

special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service? Less-than-Significant Impact with Mitigation Incorporated. Caskey Biological Consulting, LLC (Caskey) prepared a Biological Resources Assessment (BRA) for Hesperia Phelan CUP24- 00012 (Project), which is provided in Attachment B: Biological Resources Assessment. As part of the BRA, Caskey performed a field survey on December 19, 2024 and a subsequent field survey of the proposed sewer line location and potential access road location on April 22, 2025.

The vegetation communities observed within the Study Area 3 were cheatgrass – medusahead
grassland, which covers approximately 71 percent of the Study Area, and California buckwheat scrub, which covers approximately 13 percent of the Study Area. Dominant species in the cheatgrass – medusahead grassland vegetation community included cheatgrass (Bromus tectorum) and sparse native plants, such as western Joshua tree (Yucca brevifolia), rabbitbrush (Ericameria nauseosa), and bladderpod (Cleomella arborea). Dominant species in the California buckwheat scrub vegetation community included California buckwheat (Eriogonum fasciculatum) and deerweed (Acmispon glaber), as well as sparse non-natives, such as cheatgrass and star thistle (Centaurea solstitalis). The remaining approximately 16 percent of land cover within the Study Area was developed or disturbed land.

Special-Status Plant Species
Based on results of the field survey and a review of the California Department of Fish and Wildlife (CDFW) California Natural Diversity Database (CNDDB) and California Native Plant Society Online Inventory of Rare and Endangered Plants, western Joshua tree is the only special- status plant species that is present and has the potential to occur at the Project. Western Joshua tree, which is protected under the Western Joshua Tree Conservation Act, is a 5- to 20-meter-tall, evergreen, tree-like plant that occurs in desert grasslands and shrublands in hot, dry sites on flats, mesas, bajadas, and gentle slopes in the Mojave Desert on soils that are typically silts, loams, and/or sands that are fine, loose, or well-drained. As summarized in the BRA, 55 western Joshua trees were assessed within the BRA’s Study Area. Of the 55 western Joshua trees assessed, 30 are within the footprint of the Project site. The remaining 25 trees are outside of the Project site and proposed sewer line location and are not anticipated to be impacted. Of the 30 western Joshua trees within the Project site, 28 are in good to excellent health, while two are in poor health or dead. Of the 30 western Joshua trees within the Project site, eight are in Size Class A, 21 are in Size Class B, and one is in Size Class C.
4 The Project will require the entire 2.66-acre
Project site to be graded, which will result in impacts to all of the western Joshua trees present on the Project site.

Because impacts to western Joshua tree are anticipated, Au Energy, LLC (Au Energy) will consult with the CDFW prior to Project construction. In accordance with the Western Joshua Tree Conservation Act and mitigation measure (MM) BIO-1, Au Energy will apply for an

3 The Study Area measures approximately 6.83 acres and includes the Project site, the proposed sewer line location, the potential access road location, and a 50-foot buffer. 4 Size classes influence the number of western Joshua trees that will need to be relocated. Size classes are as follows:
• Class A – Less than 1 meter in height;
• Class B – 1 meter or greater but less than 5 meters in height; and • Class C – 5 meters or greater in height.

Page 271 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 27

incidental take permit (ITP) and submit it to the CDFW for review and approval prior to Project construction. As part of the western Joshua tree ITP, Au Energy will propose relocating select western Joshua trees that will be impacted by Project activities in accordance with CDFW’s Western Joshua Tree Relocation Guidelines and Protocols (CDFW 2024a). Western Joshua trees may be relocated within the Project site to perimeter landscaping areas or to an off-site location identified during consultation with the CDFW. Given the number of western Joshua trees located on the Project site, relocating all of the western Joshua trees that will be impacted during construction may be infeasible. Therefore, some western Joshua trees may be destroyed. The final number of western Joshua trees to be relocated or destroyed and any additional (MMs will be determined during the ITP process in consultation with the CDFW. Therefore, impacts to western Joshua trees will be reduced through MM BIO-1 and the implementation of MMs, such as western Joshua tree relocation, included in the western Joshua tree ITP.

Special-Status Wildlife Species
Based on results of the field survey and a review of the CNDDB and the United States (U.S.) Fish and Wildlife Service (USFWS) Information for Planning and Consultation system, the following five special-status wildlife species have the potential to occur at the Project site:
• burrowing owl (Athene cunicularia) – California Endangered Species Act (CESA) candidate endangered;
• desert tortoise (Gopherus agassizii) – Federal Endangered Species Act (FESA) threatened, CESA threatened;
• loggerhead shrike (Lanius ludovicianus) – CDFW Species of Special Concern; • Mohave ground squirrel (Xerospermophilus mohavensis) – CESA threatened; and • monarch butterfly (Danaus plexippus) – FESA proposed threatened.

Burrowing Owl
Burrowing owls utilize existing burrows from small mammals, such as ground squirrels, for their nesting and cover sites. Two observations of burrowing owl as recent as 2006 were recorded in the CNDDB approximately 2.9 miles east of the Project site; however, no suitable burrows or signs of burrowing owl (e.g., pellets or whitewash) were observed within the Project site. Given the lack of burrowing owl observations and suitable burrows, this species is unlikely to occur at the Project site and no impact to this species is anticipated to occur. Although suitable burrows for burrowing owl were not observed at the Project site, pre-construction surveys will be completed prior to ground-disturbing activities to confirm the absence of burrowing owl from the Project work area in accordance with MM BIO-2. MM BIO-2 will require one pre-construction survey to be completed according to the CDFW Staff Report on Burrowing Owl Mitigation (2012 or most recent version) prior to ground-disturbing activities. A qualified biologist will identify, flag, and map all burrows and dens potentially occupied by burrowing owl and confirm occupation of all potential burrows. In accordance with MM BIO-3, if occupied burrows or sign is identified, a qualified biologist will establish adequate buffers around the burrows based on field conditions and the CDFW Staff Report on Burrowing Owl Mitigation (2012). If occupied burrows cannot be avoided or if any other impact to burrowing owl cannot be fully avoided, the CDFW will be consulted and a CESA ITP will be obtained in accordance with MM BIO-3.

Page 272 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
28 Hesperia Phelan CUP24-00012

Desert Tortoise
Desert tortoises inhabit a variety of habitats, including desert washes, desert flats, bajadas, alluvial fans, rolling hills, rocky hills, and valleys. Throughout most of the Mojave and Colorado deserts, desert tortoises are found most often on gentle slopes with sandy gravel soils. Soils must be soft enough for digging burrows, but firm enough so that they do not collapse. The soils on the Project site were very compact and are likely too firm for burrow construction. One desert tortoise observation from 2000 was recorded in the CNDDB approximately 2 miles south of the Project site. No desert tortoise or signs of desert tortoise (e.g., burrows, scats, or carcasses) were observed during the field surveys; however, the December field survey was conducted outside of the desert tortoise active months (i.e., March to June and September to October). Given the lack of suitable burrowing habitat and observations of desert tortoise sign, this species is unlikely to occur at the Project site and no impact to this species will occur.

Loggerhead Shrike
Loggerhead shrike inhabits savannah; pinyon-juniper; Joshua tree and riparian woodlands; and desert oases, scrub, and washes. One loggerhead shrike observation as recent as 2007 was recorded in the CNDDB approximately 1.9 miles north of the Project site; however, loggerhead shrike was not observed during the field survey. This species is likely to occur given suitable nesting and foraging habitat within the Project site. The Project will cause the permanent loss of approximately 2.66 acres of suitable nesting and foraging habitat for this species; however, MM BIO-4 will be implemented during construction to reduce impacts to nesting loggerhead shrike. MM BIO-4 will require a pre-construction nesting bird survey prior to vegetation removal or initial Project ground disturbance. If an active bird nest that may be impacted by Project- related activities is observed, avoidance and minimization measures (AMMs), including delaying construction within the immediate vicinity of the active nest or establishing a nest buffer determined by a qualified biologist until the young have fledged or the nest has failed, will be implemented. Therefore, the incorporation of MM BIO-4 will avoid or minimize potential impacts to loggerhead shrike.

Mohave Ground Squirrel
Mohave ground squirrels prefer habitats in open desert scrub, alkali desert scrub, western Joshua tree woodlands, and annual grasslands. The species prefers sandy to gravelly soils and utilizes burrows at the base of shrubs. The Project site lacked suitable burrows for Mohave ground squirrel and this species was not observed during the field surveys; however, the December survey was conducted outside of the active season for the species (i.e., March to June). One Mohave ground squirrel observation as recent as 2005 was recorded in the CNDDB approximately 1.5 miles north of the Project site. Given the lack of species observations and suitable burrows documented at the Project site, Mohave ground squirrel is unlikely to occur at the Project site and no impact to this species will occur.

Monarch Butterfly
Monarch butterflies have a wide range of habitat types, including prairies, meadows, and grasslands, as well as populated areas such as parks, neighborhoods, and back yards. The field survey was conducted outside of the typical growing and blooming season for milkweed (Asclepias spp.) (i.e., May to August), which is the host plant for monarchs. As a result, no

Page 273 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 29

milkweed plants were observed within the Project site. However, other shrubs that could provide nectar to monarchs were observed. The Project is not within the overwintering range for monarch butterflies and, as a result, monarch butterfly roosting is unlikely at the Project site. No CNDDB records of monarch butterfly occur within 3 miles of the Project site and no species observations were made during the field survey. Given the lack of species observations and the low potential for monarch butterflies to roost at the Project site, this species is unlikely to occur at the Project site and no impact to this species will occur.

With the implementation of MM BIO-1, MM BIO-2, MM BIO-3, and MM BIO-4, the Project will not 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 a result, the impact will be less than significant 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 California Department of Fish and Wildlife or U.S. Fish and Wildlife Service?
No Impact. According to the CNDDB search, which had a 3-mile radius, no riparian habitat or sensitive natural communities are documented within the vicinity of the Project. Likewise, no riparian habitat or sensitive natural communities were observed within the Project site during the field survey. As a result, no impact will occur.
c) Would the project 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? No Impact. No federally or state-protected wetlands were observed on the Project site during the field survey. As a result, no impact will occur.
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? Less-than-Significant Impact. Significant impacts on wildlife movement could occur if a wildlife movement corridor were to be interrupted by a feature that physically blocks wildlife movement (e.g., a roadway) or if suitable habitat that supports wildlife in the movement corridor were to be directly removed during construction or indirectly affected by construction noise or dust. The Project is located adjacent to the intersection of U.S. Highway 395 and Phelan Road, which are existing barriers to potential wildlife movement. The presence of U.S. Highway 395 and Phelan Road make it unlikely that the Project site is functioning as a migratory wildlife corridor. In addition, the Project is not located in a CDFW- or Bureau of Land Management- (BLM-) identified wildlife corridor (CDFW 2014 and BLM 2015). Because the Project site is not located in a CDFW- or BLM-identified wildfire corridor and it is unlikely that the Project site is functioning as a migratory corridor due to adjacent roads, the addition of Project structures is likely to have a minimal impact on wildlife movement, if at all. As a result, the impact will be less than significant.

Page 274 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
30 Hesperia Phelan CUP24-00012

e) Would the project conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? Less-than-Significant Impact with Mitigation Incorporated. Chapter 16.24 of the City of Hesperia’s (City’s) Municipal Code outlines the provisions for protected plants in the City (City of Hesperia 2025). Pursuant to Chapter 16.24, a removal permit is required for the removal of a western Joshua tree. As discussed previously, Au Energy will apply for an ITP in accordance with the MM BIO-1 and submit it to the CDFW for review and approval prior to Project construction. As part of the ITP, Au Energy will propose relocating select western Joshua trees that will be impacted by Project activities in accordance with the CDFW’s Western Joshua Tree Relocation Guidelines and Protocols (CDFW 2024a). All additional MMs included in the western Joshua tree ITP will be implemented during construction of the Project. Insignia Environmental corresponded with the City on February 19, 2025, and confirmed that receipt of the western Joshua tree ITP will satisfy Chapter 16.24 requirements of the City’s Municipal Code (Henry 2025). As a result, the Project will not conflict with the City’s protected plant ordinance with implementation of MM BIO-1, and impacts will be less than significant with mitigation incorporated.
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?
No Impact. The Project will be located within the focus area of the Draft Western Joshua Tree Conservation Plan (WJTCP); however, this plan has not been adopted by the California Fish and Game Commission (Commission) (CDFW 2024b). The Draft WJTCP includes western Joshua tree impact AMMs that can be voluntarily adopted by project proponents. As discussed previously, Au Energy will consult with the CDFW and apply for a western Joshua tree ITP. The Western Joshua Tree Conservation Act requires avoidance and minimization of impacts on western Joshua trees to the maximum extent practicable as a condition of obtaining a western Joshua tree ITP (CDFW 2024b). Because the Draft WJTCP may be adopted by the Commission prior to Project construction, AMMs included in the Draft WJTCP will be reviewed and may be included in the western Joshua tree ITP. Through the implementation of MMs included in the western Joshua tree ITP, the Project will minimize impacts to western Joshua tree. Therefore, the Project will be consistent with the Draft WJTCP.

The Project will not be located within, or conflict with, any adopted Habitat Conservation Plan; Natural Community Conservation Plan; or other approved local, regional, or state Habitat Conservation Plan. As a result, no impact will occur.

4.4.2 Mitigation Measures
The following MM will be implemented for the Project to reduce impacts to less-than-significant levels:
• MM BIO-1: Western Joshua Tree ITP. Au Energy will apply for a western Joshua tree ITP in accordance with the Western Joshua Tree Conservation Act and submit it to the CDFW for review and approval prior to Project construction.

Page 275 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 31

• MM BIO-2: Pre-Construction Surveys. A qualified biologist will perform breeding season and non-breeding season burrowing owl pre-construction surveys of the Project work area according to the CDFW Staff Report on Burrowing Owl Mitigation (2012 or most recent version) prior to ground-disturbing activities. If performing both breeding season and non-breeding season surveys is infeasible, the Project Proponent will coordinate with CDFW regarding whether to proceed with either breeding season surveys or non-breeding season surveys, which will be determined by CDFW and depend on Project timelines. The qualified biologist conducting the surveys will identify, flag, and map all burrows potentially occupied by burrowing owl and confirm occupation of all potential burrows. Methods of determining burrow occupancy may include, but will not be limited to, visual observations of scat or tracks outside burrow entrances, installing trail cameras for nocturnal observations, or a combination of these methods as appropriate. If burrows occupied by burrowing owl or sign is identified, MM BIO-3 will apply.
• MM BIO-3: Burrow Avoidance. If burrows occupied by burrowing owl are found during pre-construction surveys, adequate buffers will be established around burrows.

Adequate buffers will be determined by a qualified biologist based on field conditions and the CDFW Staff Report on Burrowinggf Owl Mitigation (2012). However, the Project Proponent will ensure full avoidance of impacts to burrowing owl occurs. If occupied burrows cannot be avoided or if any other impact to burrowing owl cannot be fully avoided, the CDFW will be consulted and a CESA ITP will be obtained. • MM BIO-4: Nesting Bird Survey. A pre-construction nesting bird survey will be conducted prior to vegetation removal or initial Project ground disturbance. If an active bird nest that may be impacted by Project-related activities is observed, AMMs, including delaying construction within the immediate vicinity of the active nest or establishing a nest buffer determined by a qualified biologist until the young have fledged or the nest has failed, will be implemented.

Page 276 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
32 Hesperia Phelan CUP24-00012

4.5 CULTURAL RESOURCES
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Cause a substantial adverse change in
the significance of a historical resource
pursuant to § 15064.5?

b) Cause a substantial adverse change in
the significance of an archaeological
resource pursuant to § 15064.5?

c) Disturb any human remains, including
those interred outside of dedicated
cemeteries?


4.5.1 Discussion
a) Would the project cause a substantial adverse change in the significance of a historical resource pursuant to § 15064.5?
Less-than-Significant Impact with Mitigation Incorporated. As part of the Initial Study/Mitigated Negative Declaration (IS/MND) previously prepared for Hesperia Phelan CUP24-00012 (Project), an Archaeological Survey Report was completed in November 2017 and is included as Attachment C: Archaeological Survey Report. The Archaeological Survey Report covered an Area of Potential Impacts (API), which was defined as the approximately 6.5- acre site originally included as part of the IS/MND previously prepared for the Project in 2018.

Because the Project is in the same location as the previously proposed Project, the scope of the Project has been reduced, and the Project site has remained undeveloped/unmodified since the Archaeological Survey Report, the API and findings from the report are applicable to the current Project.

The Archaeological Survey Report included a records search of all previously recorded cultural resources within the Project site and a 0.5-mile radius around it, as well as previously conducted cultural resource studies. In addition, the report included a field survey in which the archaeologist examined exposed ground surface for artifacts (e.g., flaked stone tools, toolmaking debris, milling tools, and ceramics), ecofacts (e.g., marine shell and bone), soil discoloration that might indicate the presence of a cultural midden, and features indicative of the former presence of structures or buildings (e.g., standing exterior walls, postholes, and foundations) or historic debris (e.g., metal, glass, and ceramics).

Based on the results of the cultural resources record search and intensive pedestrian survey, three isolated historical resources were found within the API. The isolated historical resources are not eligible to be listed with the California Register of Historical Resources (CRHR) and are not deemed historically significant resources. Furthermore, no prehistoric resources were found

Page 277 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 33

during the field survey. The Archaeological Survey Report concluded that no impacts to cultural resources are expected to occur and no further work for cultural resources is needed.

Although not anticipated, unknown historical resources could be destroyed by construction activities involving ground disturbance should they be present. As a result, Mitigation Measure (MM) CUL-1 will be implemented during Project construction. In the event that a cultural resource is discovered during Project construction, all work within a 60-foot buffer of the find will cease, and a qualified archaeologist meeting United States (U.S.) Secretary of Interior (SOI) standards will assess the find. Work on the other portions of the Project outside of the buffered area may continue during this assessment period. Additionally, the Yuhaaviatam of San Manuel Nation Cultural Resources Department (YSMN) will be contacted regarding any pre-contact finds and be provided information after the archaeologist makes his/her initial assessment of the nature of the find, so as to provide Tribal input with regards to significance and treatment. In accordance with MM CUL-2, if significant pre-contact cultural resources, as defined by the California Environmental Quality Act (CEQA) (as amended, 2015), are discovered and avoidance cannot be ensured, the archaeologist will develop a Monitoring and Treatment Plan, the drafts of which shall be provided to YSMN for review and comment. The archaeologist will monitor the remainder of the Project and implement the Monitoring and Treatment Plan accordingly.

With the implementation of MM CUL-1 and MM CUL-2, no substantial adverse changes related to a historical resource are anticipated and the impact to historical resources (as defined in Public Resource Code [PRC] Section 15064.5) will be less than significant with mitigation incorporated.
b) Would the project cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5?
Less-than-Significant Impact with Mitigation Incorporated. As discussed previously, the Archaeological Survey Report concluded that no impacts to cultural resources are expected to occur and no further work for cultural resources is needed. In addition, MM CUL-1 will be implemented during Project construction. With implementation of MM CUL-1, no substantial adverse changes related to an archaeological resource are anticipated and the impact to archaeological resources (as defined in PRC Section 15064.5) will be less than significant with mitigation incorporated.
c) Would the project disturb any human remains, including those interred outside of dedicated cemeteries?
Less-than-Significant Impact with Mitigation Incorporated. The Archaeological Survey Report did not identify human remains within the API. It is not always possible to predict where Native American human remains might occur outside of formal cemeteries. Therefore, it is possible that human remains could be uncovered during ground-disturbing activities. In accordance with MM CUL-3, and if human remains are inadvertently discovered during construction activities, all work within a 100-foot buffer of the find will cease and the San Bernardino County coroner will then be contacted in accordance with California Health and Safety Code (HSC) Section 7050.5. This procedure will ensure that the remains are treated in

Page 278 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
34 Hesperia Phelan CUP24-00012

accordance with California HSC Section 7050.5; and the impact to human remains during construction will be reduced to less than significant with mitigation incorporated.

4.5.2 Mitigation Measures
The following MMs will be implemented for the Project to reduce impacts to less-than- significant levels:
• MM CUL-1: Inadvertent Cultural Resource Discoveries. In the event that cultural resources are discovered during Project activities, all work in the immediate vicinity of the find (within a 60-foot buffer) will cease and a qualified archaeologist meeting SOI standards will be hired to assess the find. Work on the other portions of the Project outside of the buffered area may continue during this assessment period. Additionally, the YSMN will be contacted, as detailed within MM TCR-1, regarding any pre-contact finds and be provided information after the archaeologist makes his/her initial assessment of the nature of the find, so as to provide Tribal input with regards to significance and treatment.
• MM CUL-2: Monitoring and Treatment Plan. If significant pre-contact cultural resources, as defined by CEQA (as amended, 2015), are discovered and avoidance cannot be ensured, the archaeologist will develop a Monitoring and Treatment Plan, the drafts of which will be provided to YSMN for review and comment, as detailed within MM TCR-

1. The archaeologist will monitor the remainder of the Project and implement the Monitoring and Treatment Plan accordingly.
• MM CUL-3: Human Remains. If human remains or funerary objects are encountered during any activities associated with the Project, work in the immediate vicinity (within a 100-foot buffer of the find) will cease and the San Bernardino County Coroner will be contacted pursuant to California HSC Section 7050.5 and that code enforced for the duration of the Project.

Page 279 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 35

4.6 ENERGY
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Result in 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?


4.6.1 Discussion
a) Would the project result in potentially significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, during project construction or operation?
Less-than-Significant Impact. Construction activities associated with Hesperia Phelan CUP24- 00012 (Project) will require the short-term consumption of fossil fuel resources (e.g., diesel fuel and gasoline) to power construction equipment and motor vehicles. During construction, power will be provided by a temporary power meter installed by Southern California Edison.

Construction will be short term and temporary; and the use of fuel will be necessary, efficient, and conservative in nature.

Based on the California Emissions Estimator Model (CalEEMod) calculations for the Project’s land use type, included as Attachment 4.2 A: CalEEMod: Hesperia Phelan Detailed Report in Section 4.3 Air Quality, the estimated electricity consumption will be 254,438 kilowatt-hours per year (kWh/year), and the estimated natural gas consumption will be 133,065 thousand British Thermal Units per year (MBtu/year). However, because the Project will comply with California Building Code (CBC) Title 24 efficiency standards, the Project’s estimated energy use is reduced to 89,305 kWh/year of electricity consumption and 26,540 MBtu/year of natural gas consumption. Further, through the permitting process with the City of Hesperia (City), the Project will be designed and operated in accordance with all appropriate state and local regulations governing energy efficiency, including the City’s Municipal Code, Part 11 of the CBC, and Commercial Design Standards and Guidelines found in the City’s Main Street and Freeway Corridor Specific Plan. Because the Project will comply with all local and state regulations concerning energy efficiency during construction and operations, energy consumption will not be wasteful, inefficient, or unnecessary. As a result, the impact will be less than significant.

Page 280 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
36 Hesperia Phelan CUP24-00012

b) Would the project conflict with or obstruct a state or local plan for renewable energy or energy efficiency?
No Impact. The Project will not obstruct a state or local plan for renewable energy or energy efficiency. As stated previously, the Project will adhere to the City’s Municipal Code, Part 11 of the CBC, and Commercial Design Standards and Guidelines found in the City’s Main Street and Freeway Corridor Specific Plan. These standards and guidelines include design measures aimed at promoting energy efficiency, including mandatory requirements for lighting controls, electric vehicle charging stations, and space-conditioning equipment. Because the Project will be constructed consistently with the CBC and City’s design standards, the Project will not conflict with or obstruct a state or local plan for renewable energy or energy efficiency. As a result, no impact will occur.

Page 281 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 37

4.7 GEOLOGY AND SOILS
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Directly or indirectly cause potential
substantial adverse effects, including the
risk of loss, injury, or death involving:

i) 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.

ii) Strong seismic ground shaking? 
iii) Seismic-related ground failure,
including liquefaction? 
iv) Landslides? 
b) Result in substantial soil erosion or the
loss of topsoil? 
c) 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?

d) Be located on expansive soil, as defined
in Table 18-1-B of the Uniform Building
Code (1994), creating substantial direct or
indirect risks to life or property?

e) Have soils incapable of adequately
supporting the use of septic tanks or
alternative waste water disposal systems
where sewers are not available for the
disposal of waste water?

f) Directly or indirectly destroy a unique
paleontological resource or site or unique
geologic feature?


Page 282 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
38 Hesperia Phelan CUP24-00012

4.7.1 Discussion
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? Less-than-Significant Impact. As summarized in Table 3: Faults Located within 10 Miles of the Project, two faults are located within 10 miles of Hesperia Phelan CUP24-00012 (Project).

The boundary of an earthquake fault zone is generally 500 feet from major active faults, and 200 to 300 feet from well-defined minor faults (City of Hesperia [City] 2010). The Project will not be located on or within 500 feet of any fault. In addition, the Project will not be located in any liquefaction or landslide zones identified by the California Department of Conservation (California DOC 2024). As a result, liquefaction and landslides have a low potential to occur at the Project site.

Table 3: Faults Located within 10 Miles of the Project
Fault Name Fault
Section Fault Type Age of Last
Known Slip
Slip Rate
(millimeter/year)
Approximate Distance and
Direction from the Project
(miles, direction)
Cleghorn
Fault
Southern
Cleghorn
Left lateral,
strike-slip
Late Quaternary
(less than 130,000
years ago)
Between 1.0 and

5.0 7.35, south
Cleghorn
Fault
Northern
Cleghorn
Left lateral,
strike-slip
Late Quaternary
(less than 130,000
years ago)
Between 0.2 and

1.0 9.18, south
Source: United States (U.S.) Geological Survey (USGS) 2022 Although the Project will introduce structures occupied by employees and customers, all Project structures will be constructed in compliance with Title 24, Part 2 of the California Building Code (CBC) and Chapter 16 of the International Building Code (IBC), which provide requirements for general structural design and includes means for determining earthquake loads based on the American Society of Civil Engineers/Structural Engineering Institute Standards. In addition, Hilltop Geotechnical, Inc. (HGI) prepared a geotechnical study and infiltration feasibility study for the Project. Recommendations from both studies will be incorporated into the Project design to ensure that all structures will adequately resist the forces of an earthquake. The geotechnical study and infiltration feasibility study are provided in Attachment D: Geotechnical Study and Attachment E: Infiltration Feasibility Study. As a result, Project structures will be able to withstand reasonably foreseeable seismic events. Incorporation of these standard engineering practices will ensure that people or structures will not be exposed to hazards associated with strong seismic ground shaking, and the impact will be less than significant.

Page 283 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 39

b) Would the project result in substantial soil erosion or the loss of topsoil? Less-than-Significant Impact. The Project site is undeveloped and slopes gradually upwards from northeast to southwest with an approximate slope of 3 percent. The Project will be located on soil classified as Cajon Sand, which is in hydrologic soil group A (U.S. Department of Agriculture [USDA] 2025). Hydrologic soil group A has the lowest runoff potential and typically consists of deep, well-drained to excessively drained sands or gravels (USDA 2002). In addition, the Project will be in a location with a soil erodibility factor of 0.08 (Esri 2023). Soils with low soil erodibility factors (between 0.05 and 0.15) are not considered susceptible to soil erosion (State Water Resources Control Board [SWRCB] 2025). As a result, the Project will not be located on soils that are susceptible to soil erosion.

Project construction will include grading the entire approximately 2.66-acre Project site.

Ground-disturbing activities will expose soil to erosion by removing the vegetative cover and potentially compromising the soil structure. Rain and wind can further detach soil particles and transport them off site. However, the Project will receive coverage for disturbing more than 1 acre of soil under an SWRCB General Permit for Storm Water Discharges Associated with Construction and Land Disturbance Activities, 2022-0057-DWQ (Construction General Permit).

This Construction General Permit will require preparation of a Project-specific Storm Water Pollution Prevention Plan (SWPPP) to be authorized by the SWRCB, which will include erosion- reducing measures and site stabilization procedures. In accordance with Section 8.30.210 of the City’s Municipal Code, the Project-specific SWPPP will be provided to the City for review and approval prior to the issuance of grading and building permits. Therefore, with implementation of the Project-specific SWPPP, construction of the Project will result in a less-than-significant impact to soil erosion.

Since the Project will require approximately 2.66 acres of grading, approximately 2.66 acres of topsoil will be lost. As discussed in Section 4.2 Agriculture, the Project is located on land designated as Grazing Land and is not located on land designated as Prime Farmland, Unique Farmland, or Farmland of Statewide Importance. Since the Project is not located on land productive for agriculture, the loss of topsoil is negligible. Although the Project will result in

2.66 acres of permanent topsoil loss, approximately 31 percent of the Project site will consist of landscaping, which exceeds the 10-percent minimum designated for the Neighborhood Commercial zone where the Project will be located (City of Hesperia 2008). Because the Project will not cause the loss of topsoil productive for agriculture, the Project’s impact on topsoil loss will be less than significant.

To mitigate the addition of approximately 1.88 acres of impervious surface proposed by the Project, which can inhibit the infiltration of storm water, the proposed on-site storm drain system will connect to an underground retention facility located east of the proposed fueling station to retain any additional storm water runoff and discharge through a new proposed storm drain to Phelan Road. The underground retention facility will be capable of retaining storm water flows from a 100-year storm event. Consequently, this Project will not increase the amount of drainage impacting downstream properties; therefore, post-construction storm water drainage will be consistent with pre-construction conditions. In addition and in accordance with Section 8.30.230 of the City’s Municipal Code, a Water Quality Management Plan (WQMP) will be provided to the City for review and approval prior to the issuance of grading and building permits. The

Page 284 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
40 Hesperia Phelan CUP24-00012

WQMP will include all required and proposed measures for site design, source control, runoff reduction, storm water treatment, baseline hydromodification management, and low-impact development techniques as applicable. Therefore, with implementation of the proposed storm drain system and WQMP, the Project will reduce the impact associated with runoff to less than significant.
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? No Impact. The Project will be located on the Quaternary older alluvium (Qoa) geologic unit (Dibblee 1965). As discussed previously, the Project will not be located in an area susceptible to liquefaction or landslides (California DOC 2024) or on soil susceptible to erosion (U.S.

Department of Agriculture [USDA] 2023). In addition, the Project will not be located on soil susceptible to subsidence (USDA 2024), and all Project structures will be constructed in compliance with Title 24, Part 2 of the CBC, the IBC, and the City’s Municipal Code. As discussed previously, recommendations from HGI’s geotechnical study and infiltration feasibility study will be incorporated into the Project design to ensure all Project structures will be stable.

Because the Project will not be located in an area susceptible to landslides, liquefaction, erosion, or subsidence and Project structures will be compliant with the CBC, IBC, and City’s Municipal Code, the Project will not cause on- or off-site landslides, lateral spreading, subsidence, liquefaction, or collapse. As a result, the Project will not be located on a geologic unit or soil that is unstable or will become unstable, and the no impact will occur. d) Would the project be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial direct or indirect risks to life or property?
No Impact. As discussed previously, the Project will be located on soil classified as Cajon Sand, which is in hydrologic soil group A. Hydrologic soil group A has the lowest runoff potential and typically consists of deep, well-drained to excessively drained sands or gravels (USDA 2002).

Sand and gravel units typically have a low expansion potential (City of Hesperia 2010). As a result, the Project will not be located on expansive soils.

As discussed previously, all Project structures will be constructed in compliance with Title 24, Part 2 of the CBC, IBC, and City’s Municipal Code. In addition, As discussed previously, recommendations from HGI’s geotechnical study and infiltration feasibility study will be incorporated to ensure all Project structures will be stable.

Because the Project will not be located on expansive soil and Project structures will be compliant with the CBC, IBC, and City’s Municipal Code, the Project will not create a substantial risk to life or property. As a result, no impact will occur.

Page 285 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 41

e) Would the project have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water?
No Impact. The Project does not include the use or installation of a septic tank or alternative wastewater disposal system. The Project will connect to an existing sewer system. As a result, no impact will occur.
f) Would the project directly or indirectly destroy a unique paleontological resource or site or unique geologic feature?
Less-than-Significant Impact with Mitigation Incorporated. Central and eastern San Bernardino County has rich paleontological resources, particularly near the eastern side of the county. The Project will be located in the southwestern quadrant of San Bernardino County, north of the Peninsular Ranges Geomorphic Province and at the southern cusp of the Mojave Desert (Norris and Webb 1990). This location is a broad basin characterized by widespread alluvial deposits from the mountains to the south and west, primarily of late Pleistocene age. The Project will be located on the Quaternary older alluvium (Qoa) geologic unit (Dibblee 1965).

The surrounding area is composed of Younger alluvium (Q) underlain by Quaternary older alluvium (Qoa) and Pleistocene-Pliocene Nonmarine Sediments (QPc) (San Bernardino County 2018).

Intact paleontological resources are not expected to be present in the younger alluvial units across the southwestern valley floor in the upper layers, but could potentially be encountered in the older Pleistocene alluvium at depths of 50 feet. Because the excavation activities associated with the Project will not exceed 15 feet below ground surface, there is a low to moderate potential to encounter intact paleontological resources during construction. To reduce potential impacts to paleontological resources, Mitigation Measure (MM) PALEO-1 will be implemented.

In accordance with MM PALEO-1, if a fossil discovery is made during excavation, all work within a 60-foot buffer of the find will be halted, and a qualified paleontologist will assess the find. If the fossils are determined to be potentially significant, the paleontologist will recover them by following standard field procedures for collecting paleontological resources. All significant fossils collected will be prepared in a properly equipped laboratory and delivered to an accredited museum or repository no later than 30 days after all laboratory work is completed.

With the implementation of MM PALEO-1, the impact on paleontological resources will be less than significant with mitigation incorporated.

4.7.2 Mitigation Measures
The following MM will be implemented for the Project to reduce impacts to less-than-significant levels:
• MM PALEO-1: Inadvertent Paleontological Resource Discoveries. If a fossil discovery is made during excavation, all work within a 60-foot buffer of the find will be halted, and a qualified paleontologist will assess the find. If the fossils are determined to be potentially significant, the paleontologist will recover them by following standard field procedures for collecting paleontological resources. Typically, fossils can be safely salvaged quickly by a single paleontologist and not disrupt construction activity. In some cases, larger fossils (e.g., skeletons or large mammal fossils) require more extensive

Page 286 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
42 Hesperia Phelan CUP24-00012

excavation and longer salvage periods. In this case, the paleontologist will have the authority to temporarily direct, divert, or halt construction activity to ensure that the fossils can be removed in a safe and timely manner. All significant fossils collected will be prepared in a properly equipped laboratory to a point ready for curation. During preparation and inventory, the fossil specimens will be identified to the lowest taxonomic level practical prior to curation at an accredited repository (usually a museum). The fossil specimens will be delivered to an accredited museum or repository no later than 30 days after all laboratory work is completed. The cost of curation will be assessed by the repository and will be the responsibility of Au Energy, LLC.

Page 287 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 43

4.8 GREENHOUSE GAS EMISSIONS
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Generate greenhouse gas 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 greenhouse
gases?


4.8.1 Discussion
a) Would the project generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? Less-than-Significant Impact. Hesperia Phelan CUP24-00012 (Project) emissions were calculated using the California Emissions Estimator Model (CalEEMod). Attachment 4.2-A:

CalEEMod: Hesperia Phelan Detailed Report in Section 4.3 Air Quality details the inputs and results of the CalEEMod completed for the Project.

Construction of the Project will generate temporary greenhouse gas (GHG) emissions primarily as a result of the operation of construction equipment on site, as well as from vehicles transporting construction workers to and from the work areas, water trucks, and heavy trucks to transport materials to and from the work areas. Calculations of carbon dioxide (CO2) emissions are provided to identify the magnitude of potential Project effects. As summarized in Table 4:

Average Daily Construction GHG Emissions, Project construction activities, including the use of on-site construction equipment (e.g., excavators, bulldozers, graders, and other construction equipment) and off-site vehicle trips (e.g., worker commute trips, haul trips, and other on-road vehicles), will generate approximately 2,066 pounds of CO 2 equivalent (CO2e)5 per day in 2026,
which will not exceed the Mojave Desert Air Quality Management District- (MDAQMD-) wide threshold of 548,000 pounds per day. Therefore, construction will not generate a quantity of GHG emissions that will potentially have a significant impact on the environment.

The Project will also include long-term energy consumption on site to support the car wash, gas station, and convenience store operations. In addition, the Project is anticipated to generate 1,594 total daily trips. Operation of the Project and the increased vehicular trips associated with customers will cause an increase in GHG emissions in the Project area. However, as summarized in Table 5: Average Annual Operational GHG Emissions, annual GHG emissions associated

5 CO2e is a measure used to compare the effect of emissions of various GHGs based on their global warming potential projected over a specified time period (generally 100 years).

Page 288 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
44 Hesperia Phelan CUP24-00012

with operation of the Project will not exceed the MDAQMD-wide threshold of 100,000 tons per year.

Table 4: Average Daily Construction GHG Emissions
Construction Year Estimated CO2e Emissions
(pounds/day)
2026 2,066
MDAQMD Threshold 548,000
Exceeded? No
Source: MDAQMD 2020
Table 5: Average Annual Operational GHG Emissions
Annual Emissions
(tons per year)
Operations 4,070
MDAQMD Threshold 100,000
Exceeded? No
Source: MDAQMD 2020
Because the Project will not exceed applicable MDAQMD thresholds for CO2e during construction or operation, the Project will not result in the generation of GHG emissions that may have a significant impact on the environment. As a result, impacts will be less than significant.
b) Would the project conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases? Less-than-Significant Impact. California’s key initiative for reducing GHG emissions is Assembly Bill (AB) 32, passed by the state legislature on August 31, 2006. This effort set a target to reduce GHG emissions to 1990 levels by 2020. AB 32 requires the California Air Resources Board (CARB) to prepare a Scoping Plan that outlines the main state strategies for meeting the 2020 deadline and to reduce GHGs that contribute to global climate change.

CARB’s 2022 Scoping Plan was approved in December 2022 and lays out a path to achieve targets for carbon neutrality and reduce GHG emissions by 85 percent below 1990 levels no later than 2045 (CARB 2022).

In response to AB 32, the City of Hesperia (City) prepared a Climate Action Plan (CAP) (City 2010) and the San Bernardino Council of Governments (SBCOG) developed the San Bernardino County Regional Greenhouse Gas Reduction Plan (Reduction Plan) (SBCOG 2021). Since the CAP and Reduction Plan were developed in support of AB 32, a project that is consistent with the CAP and Reduction Plan will be consistent with AB 32. As stated in the Reduction Plan, the City has adopted a goal to reduce its community GHG emissions to 40 percent below its 2020 level of GHG emissions by 2030 (SBCOG 2021). To achieve this, the City’s CAP includes numerous climate action strategies, such as energy efficiency, water conservation and reuse, and

Page 289 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 45

waste reduction standards, with corresponding implementation policies from the City’s General Plan. As part of the City’s implementation of the CAP, the City enforces the California Building Code (CBC), which contains energy efficiency standards for new developments in Part 11 of the California Green Building Standards Code. The Project will be constructed and designed consistent with the CBC, City’s Municipal Code, and Commercial Design Standards and Guidelines found in the City’s Main Street and Freeway Corridor Specific Plan. These standards and guidelines include design measures aimed at reducing GHG emissions, including mandatory requirements for lighting controls, electric vehicle charging stations, and space-conditioning equipment. Since the Project will be constructed consistent with the CBC and the City’s design standards, the Project will include features that reduce GHG emissions.

The MDAQMD has established that a project does not conflict with an air attainment or maintenance plan if it is consistent with the existing land use plan (MDAQMD 2020). As discussed in Section 4.11 Land Use and Planning, the Project is consistent with the City- designated Neighborhood Commercial zone in which it is proposed. In addition, as shown in Table 4: Average Daily Construction GHG Emissions and Table 5: Average Annual Operational GHG Emissions, the Project will not exceed MDAQMD GHG emission thresholds. Therefore, the Project will not conflict with the MDAQMD conformity guidelines for GHG emissions.

Since the Project will be constructed in accordance with the CBC and City’s design standards, which include measures that reduce GHG emissions, and will be consistent with MDAQMD conformity guidelines, the Project will not conflict with California’s AB 32, the City’s CAP, or the SBCOG’s Reduction Plan. As a result, impacts will be less than significant.

Page 290 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
46 Hesperia Phelan CUP24-00012

4.9 HAZARDS AND HAZARDOUS MATERIALS
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
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 0.25 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 § 65962.5
and, as a result, would 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 2 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?

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?


4.9.1 Discussion
a) Would the project create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? Less-than-Significant Impact. Construction of Hesperia Phelan CUP24-00012 (Project) will require the temporary use of diesel fuel, gasoline, lubrication oil, hydraulic fluid, and chemicals

Page 291 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 47

associated with vehicles and construction activities. In addition, the Project includes the operation of a vehicle fueling station and one 20,000-gallon underground storage tank (UST) and two 10,000-gallon USTs, which have the long-term potential to expose the public and environment to hazardous materials in the event of a release or through the routine use, storage, and transport of gasoline and diesel fuel. If improperly used, transported, stored, or disposed of, such materials have the potential to create a significant hazard to the public or environment.

The California Environmental Protection Agency (CalEPA) has implementation authority for the Unified Hazardous Waste and Hazardous Materials Management Regulatory Program (Unified Program) per California Code of Regulations (CCR) Title 27, Division 1, Subdivision 4, Chapter 1. The Unified Program requires CalEPA to certify local government agencies (i.e., Certified Unified Program Agencies [CUPAs]) to implement Hazardous Materials Business Plans (HMBPs), which aim to prevent or minimize harm to public health and safety and the environment from a release or threatened release of a hazardous material, at the local level. An HMBP includes details on hazardous material inventory, emergency response plans and procedures, and a training program that includes training in safety procedures in the event of a release of threatened release of hazardous material (CalEPA 2025).

The San Bernardino County Fire Protection Department (FPD) is the CUPA for the City of Hesperia (City). In accordance with California Health and Safety Code Division 20, Chapter 6.95 and CCR Title 19, Division 5, Chapter 1, Au Energy, LLC (Au Energy) will prepare and submit an HMBP to the San Bernardino County FPD through the California Environmental Reporting System (CERS) for review and approval prior to Project construction (San Bernardino County FPD 2025). All potentially hazardous materials will be stored, transported, and disposed of in accordance with the HMBP. In addition, since the Project includes the installation and operation of USTs, the Project will be subject to the UST element of the CERS. As a result, the Project’s USTs will be annually inspected to verify the UST system is compliant with design and construction standards (San Bernardino County FPD 2025). Further, the USTs will be designed and constructed in accordance with California Health and Safety Code (HSC) Chapter 6.7 and CCR Title 23, Division 3, Chapter 16, which detail the design and construction requirements for new USTs. Therefore, all Project construction and operation activities will be conducted in compliance with the applicable HMBP and UST requirements.

Although the Project includes the routine transport or use of hazardous materials, implementation of the HMBP and UST requirements will reduce the Project’s potential to create a significant hazard to the public or the environment to a less-than-significant level. 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?
Less-than-Significant Impact. Exposure and release of existing hazardous materials during construction and operation of the Project has the potential to impact on-site workers, the public, or the environment through direct contact, off-site transport, or improper disposal. However, the Project’s vehicle fueling station will be designed and operated in accordance with the California Fire Code and California Mechanical Code (24 CCR 4). These codes contain the dispensing and operational requirements for motor fuel-dispensing facilities that safeguard the public health, safety, and general welfare from the hazards of fire, explosion, or dangerous conditions in new or

Page 292 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
48 Hesperia Phelan CUP24-00012

existing buildings, structures, and premises (CCR 2022). As mentioned previously, the USTs will be designed and constructed in accordance with California HSC Chapter 6.7 and CCR Title 23, Division 3, Chapter 16, which detail the design and construction requirements for new USTs.

As discussed previously, hazardous materials used for Project construction and operation will be handled in accordance with an HMBP. The HMBP will include best management practices such as maintaining spill kits, avoiding the storage of hazardous materials on or near work areas, and storing hazardous materials within secondary containment. Spill kits will be maintained on site during construction and operation of the Project to minimize the risk of releasing hazardous materials.

Therefore, the Project is not anticipated to 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. As a result, the impact will be less than significant. c) Would the project emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within 0.25 mile of an existing or proposed school?
No Impact. The Project will not be located within 0.25 mile of an existing or proposed school.

The nearest school is Canyon Ridge High School, which is approximately 1.45 miles southeast of the Project. Therefore, the Project will not emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within 0.25 mile of an existing or proposed school. As a result, no impact will occur.
d) Would the project be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code § 65962.5 and, as a result, would it create a significant hazard to the public or the environment? No Impact. The Project is not located on or within 1 mile of any United States (U.S.) Environmental Protection Agency (EPA) National Priorities List sites (U.S. EPA 2024), California State Water Resources Control Board (SWRCB) Geotracker sites (SWRCB 2025), California Department of Toxic Substances Control (DTSC) EnviroStor sites (DTSC 2025a), or DTSC Hazardous Waste Tracking System sites (DTSC 2025b). Therefore, no existing hazardous materials have been reported at the Project site and no impact will occur. e) For a project located within an airport land use plan or, where such a plan has not been adopted, within 2 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?
No Impact. The Project is not located within an airport land use plan or within 2 miles of a public airport or public use airport. The closest airport is the Hesperia Airport, which is located approximately 5.95 miles southeast of the Project. As a result, no impact will occur. f) Would the project impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? Less-than-Significant Impact. The City’s General Plan Safety Element identifies U.S.

Highway 395, which is adjacent to the Project, as a potential evacuation route. As part of the

Page 293 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 49

Project, Au Energy will be applying for a California Department of Transportation (Caltrans) encroachment permit for modifications to U.S. Highway 395 and the intersection of U.S.

Highway 395 and Phelan Road. Au Energy is required to prepare a traffic control plan for the encroachment permit, which will be approved by the City and Caltrans prior to Project construction. This plan will reduce the potential for emergency evacuation hazards by notifying landowners, emergency responders, and local agencies of the planned construction activities; requiring construction activities to be coordinated with emergency service providers; and implementing applicable traffic control measures. While short-duration delays could result from construction traffic and temporary lane closures on U.S. Highway 395 and Phelan Road, the Project will not require the full closure of any roads. Emergency vehicles will be allowed access in the event of an emergency. Likewise, temporary lane closures will be opened in the event of an evacuation. Therefore, the Project will not conflict with any adopted emergency response or evacuation plans. As a result, the impact will be less than significant. g) Would the project expose people or structures, either directly or indirectly, to a significant risk of loss, injury or death involving wildland fires? Less-than-Significant Impact. As detailed further in Section 4.20 Wildfire, the Project will be located approximately 0.37 mile east of a state responsibility area and lands classified as a high fire hazard severity zone (California Board of Forestry and Fire Protection 2024, California Department of Forestry and Fire Protection [CAL FIRE] 2023). However, all Project structures will be constructed in compliance with the California Fire Code (24 CCR 9), which is based on the International Fire Code from the International Code Council and contains consensus standards related to establishing good practices to safeguard the public health, safety, and general welfare from the hazards of fire, explosion, or dangerous conditions in new or existing buildings, structures, and premises (CCR 2022). In addition, the Project’s convenience store, car wash, and vehicle fueling station will be constructed and designed to be consistent with the City’s Municipal Code Chapter 16.16 Section 365 (City of Hesperia 2025) and the Commercial Design Standards and Guidelines found in the City’s Main Street and Freeway Corridor Specific Plan (City of Hesperia 2008). Consistent with the City’s Main Street and Freeway Corridor Specific Plan, Project landscaping will not interfere with or restrict access to emergency apparatuses such as fire hydrants or fire alarm boxes. The Project’s convenience store will include an automatic fire extinguishing system, consistent with the City’s Municipal Code Chapter 15.04 Section 030 (City of Hesperia 2025). As discussed previously, the Project’s vehicle fueling station will be designed and operated in accordance with the California Fire Code and California Mechanical Code (24 CCR 4). Therefore, by complying with the regulations and design standards intended to reduce the likelihood of fire hazards, the Project will not expose people or structures to a significant risk of loss, injury, or death involving wildland fires. As a result, the impact will be less than significant

Page 294 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
50 Hesperia Phelan CUP24-00012

4.10 HYDROLOGY AND WATER QUALITY
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Violate any water quality standards or
waste discharge requirements or otherwise
substantially degrade surface or ground
water quality?

b) Substantially decrease groundwater
supplies or interfere substantially with
groundwater recharge such that the project
may impede sustainable groundwater
management of the basin?

c) Substantially alter the existing drainage
pattern of the site or area, including through
the alteration of the course of a stream or
river or through the addition of impervious
surfaces, in a manner which would:

i) result in substantial erosion or
siltation on- or off-site; 
ii) substantially increase the rate or
amount of surface runoff in a manner
which would result in flooding on- or
offsite;

iii) create or contribute runoff water
which would exceed the capacity of
existing or planned stormwater
drainage systems or provide
substantial additional sources of
polluted runoff; or

iv) impede or redirect flood flows? 
d) In flood hazard, tsunami, or seiche zones,
risk release of pollutants due to project
inundation?

e) Conflict with or obstruct implementation of
a water quality control plan or sustainable
groundwater management plan?


Page 295 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 51

4.10.1 Discussion
a) Would the project violate any water quality standards or waste discharge requirements or otherwise substantially degrade surface or ground water quality? Less-than-Significant Impact. Hesperia Phelan CUP24-00012 (Project) is not expected to violate water quality standards or waste discharge requirements, or significantly degrade surface or ground water quality. Construction will require ground-disturbing activities that could increase soil erosion rates which, if not properly managed, could potentially result in a violation of water quality standards and impacts to beneficial uses in adjacent or downstream waterbodies.

All construction projects greater than 1 acre in size in the State of California are required to obtain coverage under the State Water Resources Control Board (SWRCB) Permit for Stormwater Discharges Associated with Construction and Land Disturbance Activities, 2022- 057-DWQ (Construction General Permit) to prevent the discharge of pollutants to surface waters during construction. Since the Project will disturb more than 1 acre of land, a Notice of Intent will be filed with the SWRCB to obtain coverage under the Construction General Permit, and a Project-specific Stormwater Pollution Prevention Plan (SWPPP) will be prepared to comply with the permit. The SWPPP will include best management practices (BMPs) designed to address materials management, non-storm water discharges, sediment discharges, and erosion controls to meet water quality standards. Further, as discussed in Section 4.7 Geology and Soils, the Project will comply with the City of Hesperia (City) Municipal Code 8.30.230, which includes the submittal of a Water Quality Management Plan (WQMP) for City review. The WQMP will include all required and proposed measures for site design, source control, runoff reduction, stormwater treatment, baseline hydromodification management, and low-impact development techniques as applicable (City of Hesperia 2025).

Materials used during construction of the Project (e.g., diesel fuel, hydraulic fluid, oils, grease, and concrete) have the potential to be transported by storm water runoff and threaten groundwater quality in the event of spills or leaching. Specific measures to manage hazardous materials will be addressed in the SWPPP. Additionally, as described in Section 4.9 Hazards and Hazardous Materials, the Project will develop and implement a Hazardous Materials Business Plan, which includes BMPs such as maintaining spill kits, avoiding the storage of hazardous materials on or near work areas, and storing hazardous materials within secondary containment.

As a result, the impact to water quality standards, waste discharge requirements, and surface or ground water quality will be less than significant.
b) Would the project substantially decrease groundwater supplies or interfere substantially with groundwater recharge such that the project may impede sustainable groundwater management of the basin?
Less-than-Significant Impact. The Project will not substantially decrease groundwater supplies or interfere substantially with groundwater recharge. The Project area lies entirely within the Upper Mojave River Valley Basin, Alto Subarea (Upper Basin). The Upper Mojave River Valley Groundwater Basin underlies an elongated north-south valley, with the Mojave River flowing through the valley from the San Bernardino Mountains on the south, northward into the Middle Mojave River Valley Groundwater Basin at the town of Helendale, approximately 21 miles north of the City of Hesperia (Department of Water Resources [DWR] 2004). The Upper Basin is managed by the Mojave Water Agency (MWA), which oversees the allocation of groundwater in

Page 296 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
52 Hesperia Phelan CUP24-00012

accordance with the adjudication ruling of 1993 (with subsequent rulings in 1996 and 2000, followed by finalization in 2002), which ensures the equitable allocation of groundwater from the Mojave River Basin based on water use needs of stakeholders in the region (MWA 2025).

The Upper Basin has a total average water supply of 57,349 acre-feet per year, and MWA predicts ample water supply for all users through the year 2065 (MWA 2020). Water for Project construction activities and post-construction operations will be supplied by the Hesperia Water District, which receives its water from the Upper Basin. Water use during construction of the Project is anticipated to be approximately 3,000 gallons per day, and approximately 164 gallons per day (0.001 AFY) during operation. Thus, the amount of water used for the Project will be negligible compared to the total supply within the Upper Basin. As a result, the impact will be less than significant.
c) Would the project substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river or through the addition of impervious surfaces, in a manner which would result in substantial erosion or siltation on-site or off-site; substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off- site; create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff; or impede or redirect flood flows? Less-than-Significant Impact. The Project is located on undeveloped land composed of bare ground and sparse vegetation, which is a typical surface condition of undeveloped land in the vicinity of the Project area. Under pre-Project conditions, stormwater sheet flows over the existing pervious ground, discharging to the existing storm drain on Phelan Road and eventually to the Oro Grande Wash near the Phelan Road and Highway 395 intersection. The Oro Grande Wash then passes under the California Aqueduct Box Culvert at Mile Post 394.5 and continues flowing from the northeast side of the California Aqueduct. To mitigate for potential erosion and sediment discharge to the Oro Grande Wash during construction, a SWPPP will be prepared for the Project that will include erosion and sediment control BMPs to be implemented by the construction contractor.

The Project will not cross or alter the course of any jurisdictional aquatic features; however, the amount of impervious surface will increase within the Project site. To mitigate the addition of

1.88 acres of impervious surface, which can inhibit the infiltration of stormwater and cause an increase in surface runoff, the proposed on-site storm drain system will connect to an underground retention facility located east of the proposed fueling station to retain any additional stormwater runoff and discharge through a new proposed storm drain to Phelan Road. The proposed storm drain will connect to the existing public storm drain system to the east of the Project, which eventually discharges through an existing culvert box at Main Street to the Oro Grande Wash, approximately 1,480 feet east of the Project site.

The underground retention facility will be capable of retaining stormwater flows from a 100-year storm event and will reduce post-Project peak flows to less than pre-Project conditions.

Implementation of the underground retention facility is anticipated to reduce 100-year peak flow rates from 6.90 cubic feet per second (cfs) under pre-Project conditions to 6.70 cfs under post- Project conditions. A final Project-specific hydrology report detailing Project drainage and flow

Page 297 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 53

rates will be reviewed and approved by the City post-entitlement to ensure the Project does not significantly impact drainage at the Project site. In addition, as previously discussed, a WQMP will be prepared that includes measures to reduce runoff. Consequently, this Project will not increase the amount of surface runoff impacting downstream properties beyond pre-construction conditions. These design elements will reduce the risk for flooding on- and off-site. As a result, the impact will be less than significant.
d) In flood hazard, tsunami, or seiche zones, would the project risk release of pollutants due to project inundation?
No Impact. The Project is not located within a designated flood hazard zone, per the Federal Emergency Management Agency (FEMA) Flood Risk Maps (FEMA 2024). Additionally, the Project is not located in the coastal zone and thus is not subject to inundation from a tsunami, or within a seiche zone. As a result, no impact will occur. e) Would the project conflict with or obstruct implementation of a water quality control plan or sustainable groundwater management plan? No Impact. The Project lies within the Upper Mojave Hydrologic Unit and is managed by the Regional Water Quality Control Board (RWQCB) Region 6 (Lahontan). The Project will not conflict with or obstruct implementation of the Lahontan RWQCB Basin Plan or any groundwater management plans. The Lahontan Basin Plan includes water quality objectives, identifies beneficial uses of its waterbodies, and addresses actions that may be necessary to remediate waters within the Upper Mojave that are designated as impaired for water quality. The Project does not cross any jurisdictional aquatic features, and is located approximately 680 feet northwest from the Oro Grande Wash. The Oro Grande Wash is currently not listed on the Clean Water Act (CWA) Section 303(d) List as an impaired waterbody (SWRCB 2025); thus, no formal water quality improvement plan is required for the Oro Grande Wash. Further, as stated previously, a SWPPP will be prepared for the Project to prevent discharges of pollutants to surface waters. As a result, no impact will occur.

Groundwater basin prioritization is a technical process that utilizes the best available data and information to classify California’s 515 groundwater basins into one of four categories: high-, medium-, low-, or very low-priority (DWR 2025). Each basin’s priority determines which provisions of the California Statewide Groundwater Elevation Monitoring and the Sustainable Groundwater Management Act (SGMA) apply. The SGMA requires local groundwater management authorities and/or water districts of medium- and high-priority groundwater basins to develop groundwater sustainability agencies (GSAs), develop groundwater sustainability plans (GSPs), and manage groundwater for long-term sustainability. Currently, no GSA or GSP exists for the Upper Basin due to its Very Low Priority classification. Water used during construction will be provided by the Hesperia Water District via an existing fire hydrant on Phelan Road, and will not conflict with groundwater management of the Upper Basin. As a result, no impact will occur.

Page 298 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
54 Hesperia Phelan CUP24-00012

4.11 LAND USE AND PLANNING
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Physically divide an established
community? 
b) Cause a significant environmental impact
due to a conflict with any land use plan,
policy, or regulation adopted for the purpose
of avoiding or mitigating an environmental
effect?


4.11.1 Discussion
a) Would the project physically divide an established community? No Impact. No established communities are located at the Hesperia Phelan CUP24-00012 (Project) site or on the surrounding parcels. The Project is located in an undeveloped area of the City of Hesperia (City). The closest residential community is approximately 0.3 mile east of the Project. Therefore, the Project will not divide an established community, and no impact will occur.
b) Would the project cause a significant environmental impact due to a conflict with any land use plan, policy, or regulation adopted for the purpose of avoiding or mitigating an environmental effect?
No Impact. The Project will be located on a parcel designated as Neighborhood Commercial (NC) in the City’s Main Street and Freeway Corridor Specific Plan (City of Hesperia 2008). The Project will be consistent with the NC zone, which encourages the development of businesses that provide convenience goods and services to local residents, such as the services that will be provided by the Project when complete. As discussed previously, a residential community is located approximately 0.3 mile east of the Project. Additional residential communities and homes are located within 2 miles of the Project in all directions. Therefore, the Project will provide services accessible to local residents.

The NC zone requires a City-issued conditional use permit (CUP) to authorize construction and operation of the convenience store with alcoholic beverage sales for off-site consumption, vehicle fuel stations, and vehicle wash facilities. Au Energy, LLC (Au Energy) will obtain a CUP from the City prior to Project construction. Therefore, the Project will be consistent with the NC zone’s permitted uses following receipt of the CUP.

As discussed in Section 4.4 Biological Resources, Chapter 16.24 of the City’s Municipal Code outlines the provisions for protected plants in the City (City of Hesperia 2025). Pursuant to Chapter 16.24, a removal permit is required for the removal of a western Joshua tree (Yucca brevifolia). Au Energy will apply for an incidental take permit (ITP) in accordance with the

Page 299 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 55

Western Joshua Tree Conservation Act and submit it to California Department of Fish and Wildlife (CDFW) for review and approval prior to Project construction. Insignia Environmental corresponded with the City on February 19, 2025 and confirmed that receipt of the western Joshua tree ITP will satisfy Chapter 16.24 requirements of the City’s Municipal Code. As a result, the Project will not conflict with the City’s protected plant ordinance.

In addition, the Project will be located within the focus area of the Draft Western Joshua Tree Conservation Plan (WJTCP); however, this plan has not been adopted by the California Fish and Game Commission (Commission) (CDFW 2024). The Draft WJTCP includes western Joshua tree impact avoidance and minimization measures that can be voluntarily adopted by project proponents. The Western Joshua Tree Conservation Act requires avoidance and minimization of impacts on western Joshua trees to the maximum extent practicable as a condition of obtaining a western Joshua tree ITP (CDFW 2024). Since the Draft WJTCP may be adopted by the Commission prior to Project construction, avoidance and minimization measures included in the Draft WJTCP will be reviewed and may be included in the western Joshua tree ITP. Through the implementation of mitigation measures included in the western Joshua tree ITP, the Project will minimize impacts to western Joshua tree. Therefore, the Project will be consistent with the Draft WJTCP.

The Project will not be located within any adopted Habitat Conservation Plan; Natural Community Conservation Plan; or other approved local, regional, or state habitat conservation plan, and it will not conflict with any land use plan, policy, or regulation. As a result, no impact will occur.

Page 300 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
56 Hesperia Phelan CUP24-00012

4.12 MINERAL RESOURCES
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Result in the loss of availability of a
known mineral resource that would be a
value to the region and the residents of the
state?

b) Result in the loss of availability of a
locally important mineral resource recovery
site delineated on a local general plan,
specific plan, or other land use plan?


4.12.1 Discussion
a) Would the project result in the loss of availability of a known mineral resource that would be a value to the region and the residents of the state? No Impact. There is no mining operation located within 5 miles of Hesperia Phelan CUP24- 00012 (Project). The closest operation is the Scheerer Quarry, which mines sand and gravel and is located approximately 13.5 miles northeast of the Project (California Department of Conservation 2025). The Project will not cross mining sites or interfere with mining operations.

Consequently, the construction of the Project will not lead to the depletion of any known mineral resources. As a result, no impact will occur.
b) Would the project result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan?
No Impact. The Project is located more than 5 miles from any known or potential mineral resource recovery site. The City of Hesperia General Plan Conservation Element (Conservation Element) describes the presence of non-significant mineral resources (i.e., sand used for construction) in the Summit Valley region and within the Mojave River washes (City of Hesperia 2019). The Conservation Element further describes these minerals as not significant due to their relatively high abundance in the surrounding areas. In addition to the non-significant classification, the areas of mineral deposits are more than 5 miles from the Project. As a result, no impact will occur.

Page 301 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 57

4.13 NOISE
Would the project result in:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Generation of a substantial temporary or
permanent increase in ambient noise levels
in the vicinity of the project in excess of
standards established in the local general
plan or noise ordinance, or applicable
standards of other agencies?

b) Generation of excessive groundborne
vibration or groundborne noise levels? 
c) For a project located within the vicinity of
a private airstrip or an airport land use plan
or, where such a plan has not been
adopted, within 2 miles of a public airport or
public use airport, would the project expose
people residing or working in the project
area to excessive noise levels?


4.13.1 Discussion
a) Would the project result in generation of a substantial temporary or permanent increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies?
Less-than-Significant Impact. The nearest sensitive receptors to Hesperia Phelan CUP24- 00012 (Project) are within a residential community located approximately 0.3 mile (1,700 feet) east of the Project on Mesa Linda Street. As outlined in the City of Hesperia’s (City’s) Noise Ordinance, the maximum allowable noise level at a residential parcel line is 60 A-weighted decibels (dBA)
6 between 7:00 a.m. and 10:00 p.m. (City of Hesperia 2025).

The Project will be located on the corner of United States (U.S.) Highway 395 and Phelan Road, which has an approximate existing roadway noise level of 71 dBA Community Noise Equivalent Level (CNEL)
7 at 50 feet (City of Hesperia 2010). Construction associated with Project will generate noise that will temporarily increase ambient noise levels in the Project vicinity due to construction equipment use (e.g., excavators, bulldozers, graders, and trucks); however, given

6 Because the human ear is not equally sensitive to all sound frequencies within the entire spectrum, noise levels at maximum human sensitivity are factored more heavily into sound descriptions in a process called “A weighting,” written as dBA (City 2010).
7 Because community receptors are more sensitive to unwanted noise intrusion during the evening and at night, state law requires that, for planning purposes, an artificial decibel increment penalty be added to quiet-time noise levels in a 24-hour noise descriptor called CNEL (City 2010).

Page 302 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
58 Hesperia Phelan CUP24-00012

the Project site’s high existing ambient noise level, noise generated by on-site construction equipment is not anticipated to significantly increase ambient noise levels. In addition to noise generated by on-site construction equipment, construction-related vehicle trips (e.g., worker commute trips, haul trucks, and other on-road vehicles) will temporarily increase noise levels along roadways leading to the Project site. This temporary vehicle traffic will increase ambient traffic noise levels along roadways; however, any increase will be minimal, as these trips will occur throughout the day.

According to the U.S. Department of Transportation (DOT), a dozer has a maximum sound level (L
max)8 of 82 dBA at 50 feet (U.S. DOT 2025a) and will generate some of the highest noise levels during Project construction. The A-weighted, equivalent sound level at the nearest sensitive receptor resulting from operation of the dozer with a Usage Factor (U.F.) of 40 percent over a 1-hour period will be approximately 47 dBA, using the calculation below:
9 Leq(h) = Lmax – 20 log (D/D0) + 10 log (U.F.) + 10 log (number of units operating concurrently) At 47 dBA, the sound of the dozer at the nearest sensitive receptor will be between the sound levels of a soft whisper (40 dBA) and urban residence (50 dBA) (U.S. Department of Labor 2022). Therefore, Project construction will not cause noise levels to exceed 60 dBA at the nearest noise-sensitive receptors within the residential community. In addition, construction activities occurring between 7:00 a.m. and 7:00 p.m. will be exempt from noise standards unless construction activities occur on Sundays or federal holidays (City of Hesperia 2025).

Construction of the convenience store, vehicle fueling station, and car wash is anticipated to occur 6 days per week (Monday through Saturday) between 7:00 a.m. and 7:00 p.m., and will last 200 to 250 days. Road improvement work on U.S. Highway 395 and Phelan Road is anticipated to require night work. Nighttime construction activities will be conducted in accordance with the Project’s traffic control plan approved by the City and California Department of Transportation (Caltrans) as part of the permitting process prior to construction.

All noise control measures included in the traffic control plan will be implemented to reduce construction noise. Work on Sundays and federal holidays is not anticipated. As a result, the Project will not conflict with the local noise ordinance.

Long-term operations associated with the Project may slightly increase ambient noise levels in the Project vicinity as a result of the permanent operation of facilities, including roof-top mechanical equipment associated with the convenience store building, mechanical equipment within the car wash, and the self-service vacuum stalls. As discussed previously, the Project will be located on the corner of U.S. Highway 395 and Phelan Road. Given the Project site’s high existing ambient noise level of approximately 71 dBA CNEL resulting from traffic along U.S.

Highway 395 and Phelan Road, any increase in ambient noise levels resulting from Project

8 Lmax is the maximum noise level recorded during a noise event (City of Hesperia 2010). 9 Leq(h) = A-weighted, equivalent sound level at a receptor resulting from operation of a piece of equipment over a 1-hour time period.

Lmax = Maximum noise emission level of equipment based on its work cycle at distance D0.

U.F. = Usage Factor, which accounts for the percent time that equipment is in use over the time period of interest (1 hour).

D = Distance from the equipment to the receptor of interest.

D
0 = Reference distance at which the Lmax was measured for the piece of equipment.

Page 303 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 59

operations will be negligible and indistinguishable, as traffic will mask any noise from Project operations.

As discussed in Section 4.17 Transportation, Project operations are anticipated to generate approximately 1,594 new daily trips. The City’s General Plan projected that noise levels along Phelan Road will increase to 74 dBA CNEL following build-out in accordance with the General Plan (City 2010). Although the Project will increase vehicular traffic, U.S. Highway 395 and Phelan Road are major roadways where increased traffic and noise levels are anticipated as the City’s development increases. Therefore, the City’s General Plan has already considered the increase in noise levels that will result from increased development in the City. The Project is not anticipated to cause noise levels along Phelan Road to exceed 74 dBA CNEL, and the Project will remain consistent with the City’s General Plan.

Project operations will require a maximum of six employees daily. It is estimated that three employees will be needed for operations during the day and two employees will be needed for operations at night. No employees will be needed for the car wash because it will be self-operated. As outlined in the City’s Noise Ordinance, the maximum allowable noise level for commercial land uses is 65 dBA (City 2025). The existing ambient noise level 50 feet from U.S.

Highway 395 and Phelan Road is approximately 71 dBA CNEL and may increase to 74 dBA during operations. Between 70 and 75 dBA, noise levels are expected to be similar to a loud classroom (U.S. Department of Labor 2022). Although Project employees may be exposed to elevated noise levels while outside of their personal vehicles or the proposed convenience store, the Project employees will predominately work within the convenience store, which is approximately 200 feet west of U.S. Highway 395 and 90 feet north of Phelan Road. While inside the convenience store, noise from surrounding vehicle use will be attenuated from the building and sloped landscaped areas (U.S. DOT 2025b). Therefore, given the distance of the convenience store from roadways and the barriers to noise created by the convenience store walls and sloped landscaped areas, the Project is not anticipated to expose employees to noise levels that exceed 65 dBA.

Similarly, customers may be exposed to elevated noise levels resulting from adjacent roadways, vehicles idling, and car wash operations while outside of their personal vehicles or the convenience store. Although customers outside may be exposed to elevated noise levels, the exposure will be temporary, similar to a loud classroom, and consistent with typical noise levels at other existing vehicle fueling stations in the vicinity. Therefore, individuals outside of personal vehicles and the convenience store are not anticipated to be exposed to noise levels that exceed thresholds of significance. As a result, the noise impact associated with Project construction and operation will be less than significant. b) Would the project result in generation of excessive groundborne vibration or groundborne noise levels?
Less-than-Significant Impact. Groundborne vibration will be generated by heavy equipment use during Project construction. As discussed previously, the nearest sensitive receptors are located approximately 0.3 mile (1,700 feet) east of the Project on Mesa Linda Street. The Caltrans vibration threshold for building damage to new residential structures is a peak particle velocity (PPV) of 0.5 peak inch per second. At 25 feet, a large bulldozer has a PPV of 0.089 inch

Page 304 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
60 Hesperia Phelan CUP24-00012

per second. During the operation of a large bulldozer, the PPV at the nearest sensitive receptor will be approximately 0.0009 inch per second using the following calculation (Caltrans 2020):10 PPVEquipment = PPVRef (25/D)n (inch/second)
Therefore, vibration from construction will not damage structures at the nearest sensitive receptor. In addition, a PPV of 0.01 inch per second is barely perceptible to humans (Caltrans 2020). Because a large bulldozer generates a PPV well below 0.01 inch per second, the nearest sensitive receptors to the Project are not likely to perceive a vibration caused by construction.

Project operations will not involve the use of any large rotating equipment or heavy machinery that will introduce any new sources of perceivable groundborne vibration. As a result, the construction and operation of the Project will not result in the generation of excessive groundborne vibration or noise levels, and the impact will be less than significant. c) For a project located within the vicinity of a private airstrip or an airport land use plan or, where such a plan has not been adopted, within 2 miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels?
No Impact. The Project is not located within an airport land use plan or within 2 miles of a public airport or public use airport. The closest airport is the Hesperia Airport, which is located approximately 5.95 miles southeast of the Project. As a result, no impact will occur.

10 PPVRef = reference PPV at 25 feet.

D = distance from equipment to the receiver in feet.
n = 1.1 (the value related to the attenuation rate through ground).

Page 305 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 61

4.14 POPULATION AND HOUSING
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Induce substantial unplanned population
growth in an area, either directly (e.g., by
proposing new homes and businesses) or
indirectly (e.g., through extension of roads
or other infrastructure)?

b) Displace substantial numbers of existing
people or housing, necessitating the
construction of replacement housing
elsewhere?


4.14.1 Discussion
a) Would the project induce substantial unplanned population growth in an area, either directly (e.g., by proposing new homes and businesses) or indirectly (e.g., through extension of roads or other infrastructure)?
No Impact. Construction of Hesperia Phelan CUP24-00012 (Project) will not create a direct increase in the demand for housing. No more than eight construction workers are anticipated to be on site at any given time during construction. Operation of the Project will only require a daily maximum of seven employees, who will likely be sourced from the City of Hesperia or San Bernardino County. Because employees will be sourced from the local area, operation of the Project will not result in population growth. Rather than encourage population growth, such services support the existing population, with the closest residential community located approximately 0.3 mile east of the Project and additional residential communities and homes located within 2 miles of the Project in all directions. Further, the Project is approximately 0.5 mile west of an existing sewer main near the intersection of Main Street and Mesa Linda Street and across from an existing water main on the south side of Phelan Road (City of Hesperia 2025). As a result, development of the Project will not require significant extension of utility infrastructure, and no impact will occur.
b) Would the project displace substantial numbers of existing people or housing, necessitating the construction of replacement housing elsewhere? No Impact. The Project is located on undeveloped land that is zoned to allow for development of commercial uses. No housing exists within the Project site. The nearest residential community is approximately 0.3 mile east of the Project, and construction of the Project will not cause the displacement of this community. As a result, no impact will occur.

Page 306 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
62 Hesperia Phelan CUP24-00012

4.15 PUBLIC SERVICES
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Result in substantial adverse physical
impacts associated with the provision of new
or physically altered governmental facilities,
need for new or physically altered
governmental facilities, the construction of
which could cause significant environmental
impacts, in order to maintain acceptable
service ratios, response times, or other
performance objectives for any of the public
services:

Fire Protection? 
Police Protection? 
Schools? 
Parks? 
Other Public Facilities? 

4.15.1 Discussion
a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or other performance objectives for any of the public services?
Fire Protection
Less-than-Significant Impact. Construction and operation of Hesperia Phelan CUP24-00012 (Project) will not have a significantly adverse effect on fire protection services in the Project area. Fire protection services are provided to the City of Hesperia (City) by the San Bernardino County Fire Protection District. The closest fire station to the Project is Fire Station 305, which is located at 8331 Caliente Road, approximately 2.5 miles south of the Project. Fire Station 305 is fully staffed and maintains a daily crew of eight personnel (City of Hesperia 2025).

Construction of the Project may require the temporary closure of lanes on Phelan Road and United States Highway 395; however, as discussed in Section 4.9 Hazards and Hazardous Materials, any lane closure will be included in the required traffic control plan to minimize the effect on response times, service rations, or other public service objectives for fire protection in

Page 307 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 63

the area. Additionally, a new fire line is proposed as part of the Project; this line will connect to the existing 12-inch water main that runs along the south side of Phelan Road and will extend north from Phelan Road to the proposed convenience store. Further, as discussed in Section 4.20 Wildfire, the Project will be designed to adhere to all California Fire Code (24 California Code of Regulations 9) standards regarding fire prevention. As a result, the impact will be less than significant.

Police Protection
Less-than-Significant Impact. Construction and operation of the Project will not significantly affect police protection services in the Project area. The Hesperia Police Department contracts with the San Bernardino County Sheriff’s Department to provide police services in the City’s jurisdiction. The Hesperia Police Department is comprised of 58 sworn law enforcement personnel, including a captain, a lieutenant, seven sergeants, five detectives, and 44 deputy sheriffs (San Bernardino County 2025). The Hesperia Patrol Station is located at 15840 Smoketree Street, which is located approximately 5.3 miles east of the Project. Perimeter security fencing will be installed around the outer limits of the Project work area during construction. Lighting will also be installed for security purposes during construction.

Construction crews will lock and secure the Project site to prevent theft or vandalism associated with work equipment or supplies at the completion of each workday. Although the need for police services may arise during and after construction, such a need will not exceed the capacity of the existing providers in the vicinity of the Project and will not require the provision of service beyond existing capacities. As a result, the impact will be less than significant.

Schools
No Impact. It is not anticipated that construction and operation of the Project will adversely affect the provision of, or access to, school services. The Project lies within the Snowline Joint Unified School District, at the far eastern boundary of the district; however, the closest school to the Project is Canyon Ridge High (1.4 miles to the southeast) within the Hesperia Unified School District (HUSD). Although the HUSD boundary is just outside of the Project area, its schools are located nearest to the Project and it serves the City and adjacent areas in the high desert of San Bernardino County, covering 140 square miles. The HUSD provides public education services for kindergarten through senior high school students, including three comprehensive high schools, two continuation high schools, three middle schools, 12 elementary schools, three choice schools, two alternative schools, one adult education school, and five charter schools (HUSD 2025). Construction and operation of the Project is not likely to disrupt access to schools, as the nearest residential community is located east of the Project and its residents would be traveling eastbound on Phelan Road to access schools within the HUSD. Although the schools within the HUSD are closest to the Project area, the traffic to and from those schools will not be impeded by the Project; due to the Project’s relative location, no impact will occur.

Parks
No Impact. It is not anticipated that construction and operation of the Project will adversely affect the provision of services by, or access to, public parks. The closest public park to the Project is Malibu Park, which is located approximately 1.7 miles to the southeast. The Mojave Narrows Regional Park and the Mojave River Forks Regional Park are located approximately 9.4 miles northeast and 9.7 miles southeast of the Project, respectively. Lane closures during

Page 308 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
64 Hesperia Phelan CUP24-00012

construction of the Project are unlikely to affect access to any of the surrounding public parks.

As a result, no impact will occur.

Other Public Facilities
No Impact. It is not anticipated that construction and operation of the Project will adversely affect the provision of services by other public facilities as none are located near the Project area.

The nearest library to the Project is the San Bernardino County Hesperia Branch Library, which is located approximately 4.9 miles east of the Project. The High Desert Medical Center and Hesperia Post Office are located approximately 6.3 miles east and 6.5 miles east of the Project, respectively. As a result, there will be no impact on other public facilities.

Page 309 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 65

4.16 RECREATION

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Would the project increase the use of
existing neighborhood and regional parks or
other recreational facilities such that
substantial physical deterioration of the
facility would occur or be accelerated?

b) Would the project include recreational
facilities or require the construction or
expansion of recreational facilities which
might have an adverse physical effect on
the environment?


4.16.1 Discussion
a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated?
No Impact. No City of Hesperia (City) neighborhood parks or San Bernardino County regional parks are located within 1 mile of Hesperia Phelan CUP24-00012 (Project). Malibu Park, located approximately 1.7 miles southeast of the Project, is the closest City park (City of Hesperia 2025).

The use of parks and recreational facilities is closely tied to population; as population increases, the use of existing parks and recreational facilities can be expected to increase proportionally. As presented in Section 4.14 Population and Housing, the Project will not directly or indirectly induce substantial population growth. During construction of the Project, regional and local parks may be used by workers during their lunch or break periods. However, construction will be temporary and will last 200 to 250 days. Given the duration of construction activities and lack of population growth resulting from the Project, the Project will not increase the use of existing neighborhood and regional parks such that substantial physical deterioration of the facilities will occur. As a result, no impact will occur.
b) Would the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment?
No Impact. The Project does not include any recreational facilities. In addition, the Project will not result in a permanent population increase; therefore, it will not require the construction or expansion of any recreational facilities. The Project will not have an adverse physical effect on the environment from the construction of new recreational facilities or expansion of existing recreational facilities. As a result, no impact will occur.

Page 310 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
66 Hesperia Phelan CUP24-00012

4.17 TRANSPORTATION
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Conflict with a program, plan, ordinance
or policy addressing the circulation system,
including transit, roadway, bicycle and
pedestrian facilities?

b) Conflict or be inconsistent with CEQA
Guidelines § 15064.3, subdivision (b)? 
c) Substantially increase hazards due to a
geometric design feature (e.g., sharp curves
or dangerous intersections) or incompatible
uses (e.g., farm equipment)?

d) Result in inadequate emergency access? 

4.17.1 Discussion
a) Would the project conflict with a program, plan, ordinance or policy addressing the circulation system, including transit, roadway, bicycle and pedestrian facilities?
No Impact. Hesperia Phelan CUP24-00012 (Project) will not conflict with any program, plan, or ordinance that addresses the City of Hesperia’s (City’s) circulation system. The City’s public transit service is provided by the Victor Valley Transit Authority (VVTA) (City of Hesperia 2010). Phelan Road at the Project site is located along VVTA Route 21: Super Target – Wrightwood (VVTA 2025). The nearest bus stop along Route 21 is located approximately 1.15 miles west of the Project. VVTA Route 64: Hesperia Post Office – Super Target is located approximately 0.8 mile east of the Project, at the intersection of Main Street and Cataba Road.

There are no additional bus stops proposed as part of the Project, and the Project will not conflict with the public transit policies outlined in the Circulation Element of the City’s General Plan or interfere with the established VVTA public transit routes. As a result, no impact will occur.

The Circulation Element of the City’s General Plan classifies Phelan Road as a Major Arterial, with a total right-of-way (ROW) of 120 feet, including 60 feet on either side of the street centerline (City of Hesperia 2010). The Project proposes ROW improvements to the north side of Phelan Road in accordance with the Major Arterial standards, providing 60 feet of ROW from the street centerline to the back of the sidewalk.

United States (U.S.) Highway 395 is classified as a Special Street in the Circulation Element, with a total ROW of 130 feet. The Project proposes ROW improvements to U.S. Highway 395 in accordance with the Special Street standard, providing between approximately 92 and 100 feet of ROW from the highway centerline to the new proposed California Department of Transportation

Page 311 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 67

ROW line along the east boundary of the Project. The Project complies with all street standards shown in the Circulation Element of the City’s General Plan, and no impact will occur.

According to the City’s Main Street and Freeway Corridor Specific Plan, the nearest bicycle/pedestrian path is located approximately 1 mile north of the Project and is designated as a Class I Bike Lane that runs along either side of the California Aqueduct (City of Hesperia 2021). The Project does not cross an existing bicycle or pedestrian facility and will not conflict with the Main Street and Freeway Corridor Specific Plan. As a result, no impact will occur. b) Would the project conflict or be inconsistent with CEQA Guidelines § 15064.3, subdivision (b)?
Less-than-Significant Impact. Section 150964.3, Determining the Significance of Transportation Impacts, of the California Environmental Quality Act (CEQA) Guidelines was introduced to provide guidance for determining the significance of transportation impacts. This section provides criteria for determining a project’s transportation impacts, including for land use projects (Section 15064.3[b][1]) and transportation projects (Section 15064.3[b][2]). Criteria 3 and Criteria 4 of CEQA Guidelines Section 15064.3 include stipulations to conduct a Vehicle Miles Traveled (VMT) assessment to determine potential impacts.

The City’s traffic impact analysis guidelines provide a process for projects to be screened from full VMT assessment under the assumption that the projects will result in a less-than-significant transportation impact related to VMT. As discussed in Attachment F: Scoping Agreement Memorandum, the City has VMT screening options based on land use types, including local- serving gas stations and local-serving retail less than 50,000 square feet. The Project includes a 5,915-square-foot convenience store and 1,968-square-foot automated car wash tunnel, totaling 7,883 square feet. Therefore, the Project is a local-serving gas station and a local-serving retail measuring less than 50,000 square feet. As a result, the Project can be screened from VMT assessment under the presumption that it will result in a less-than-significant impact related to VMT.

As a result, the Project will not result in transportation impacts related to increased VMT and will not conflict or be inconsistent with CEQA Guidelines Section 15064.3(b). Therefore, the impacts will be less than significant.
c) Would the project substantially increase hazards due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)?
Less-than-Significant Impact. The Project includes improvements to U.S. Highway 395, Phelan Road, and the traffic signal on the northwestern corner of the Phelan Road and U.S.

Highway 395 intersection to reduce the potential for traffic-related incidents involving vehicles entering and exiting the Project’s proposed driveways along Phelan Road and U.S. Highway 395.

The southbound side of U.S. Highway 395 will be widened to 58 feet from the centerline to allow for the following:
• installation of a 3-foot-wide median at the centerline, • a dedicated bike lane along the southbound side,

Page 312 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
68 Hesperia Phelan CUP24-00012

• a dedicated right-turn lane to access the Project and to turn right onto Phelan Road, • two southbound lanes, and
• one left-turn lane to travel east.

In December 2025, Fehr & Peers prepared a memorandum summarizing the safety review conducted for the Project. The Safety Review for this Project was conducted in alignment with the California Department of Transportation (Caltrans) Local Development Review (LDR) Safety Review Practitioner’s Guidance, which contains safety review guidance for proposed land use Projects affecting the State Highway System.

As discussed by Fehr & Peers, the Project will introduce a new access point near the intersection of Phelan Road and U.S. Highway 395, which may lead to a slight increase in crash rate, despite the majority of new trips being localized and pass-by traffic already using the corridor. However, the access driveways for the Project are currently designed in accordance with existing City and Caltrans design standards and will incorporate appropriate safety enhancements to ensure adequate spacing, visibility, and traffic control measures to minimize potential conflicts. The proposed right-in and right-out configuration, combined with a rubberized curb, will further reduce conflict points along Phelan Road by restricting turning movements and discouraging illegal or unsafe maneuvers across opposing traffic. To address potential safety concerns at the proposed driveways, measures such as adequate driveway spacing from the intersection, the installation of a rubberized curb to reinforce the right-in and right-out restrictions, and improved pavement markings will be implemented to help minimize conflicts. More specifically, the Project will include the following safety design measures:
• rubberized curbs with flexible posts along the Phelan Road median to discourage left- turns and U-turns to reduce the crash risk from improper or unexpected movements; • an increased driveway setback from the intersection to reduce conflict points between turning vehicles and cross-traffic;
• driveways on both U.S. Highway 395 and Phelan Road that can only be accessed by a right-in and right-out-only approach to limit left-turn movements and reduce crash risks; • lighting that covers the driveway entrance to reduce the potential for vehicle and pedestrian collisions;
• a deceleration lane for vehicles turning into the Phelan Road driveway entrance to prevent disruptions to through traffic;
• rumble strips near the driveway to enhance driver awareness; • high friction surface treatment at the driveways to reduce skidding; • retroreflective lane strips to improve lane visibility; and • clear zones along the driveway access to provide a recovery area for vehicles that veer off the road.

With implementation of the Project’s proposed safety measures, as well improvements to U.S.

Highway 395, Phelan Road, and the traffic signal, the Project is not anticipated to increase hazards along the roadways. The final Fehr & Peers Project-specific traffic study will be reviewed and approved by the City post-entitlement to ensure the Project does not cause significant impacts to roadways. As a result, the impact will be less than significant.

Page 313 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 69

d) Would the project result in inadequate emergency access? Less-than-Significant Impact. The Project will not impair implementation of or physically interfere with an adopted emergency response or evacuation plan. Temporary lane closures along Phelan Road and U.S. Highway 395 will be required during construction; however, these impacts will be temporary, short-term, and localized; and access for emergency vehicles will be maintained in all instances. Any temporary closures will be coordinated with local jurisdictions and emergency service providers in accordance with the encroachment permit process, as further described in Section 4.9 Hazards and Hazardous Materials. As a result, the impact will be less than significant.

Page 314 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
70 Hesperia Phelan CUP24-00012

4.18 TRIBAL CULTURAL RESOURCES

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Would the project cause a substantial
adverse change in the significance of a tribal
cultural resource, defined in Public
Resources Code § 21074 as either a site,
feature, place, cultural landscape that is
geographically defined in terms of the size
and scope of the landscape, sacred place,
or object with cultural value to a California
Native American tribe, and that is:

i) Listed or eligible for listing in the
California Register of Historical
Resources, or in a local register of
historical resources as defined in
Public Resources Code
section 5020.1(k), or

ii) A resource determined by the lead
agency, in its discretion and supported
by substantial evidence, to be
significant pursuant to criteria set forth
in subdivision (c) of Public Resources
Code § 5024.1. In applying the criteria
set forth in subdivision (c) of Public
Resource Code § 5024.1, the lead
agency shall consider the significance
of the resource to a California Native
American tribe.


4.18.1 Discussion
a) Would the project cause a substantial adverse change in the significance of a tribal cultural resource, defined in Public Resources Code § 21074 as either a site, feature, place, cultural landscape that is geographically defined in terms of the size and scope of the landscape, sacred place, or object with cultural value to a California Native American tribe, and that is listed or eligible for listing in the California Register of Historical Resources, or in a local register of historical resources as defined in Public Resources Code section 5020.1(k), or a resource determined by the lead agency, in its discretion and supported by substantial

Page 315 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 71

evidence, to be significant pursuant to criteria set forth in subdivision (c) of Public Resources Code § 5024.1?
Less-Significant-Impact with Mitigation Incorporated. As discussed in Section 4.5 Cultural Resources, as part of the Initial Study/Mitigated Negative Declaration (IS/MND) previously prepared for Hesperia Phelan CUP24-00012 (Project) in 2018, an Archaeological Survey Report was completed in November 2017 and is included as Attachment C: Archaeological Survey Report. Because the Project is in the same location as the previously proposed Project, the scope of the Project has been reduced, and the Project site has remained undeveloped/unmodified since the Archaeological Survey Report, the Area of Potential Impacts (API) and findings from the report are applicable to the current Project.

Although not anticipated, a tribal cultural resource could be damaged or destroyed by ground- disturbing activities in the event an unknown tribal cultural resource is located within an area subject to disturbance. To address this potential impact, Mitigation Measures (MMs) TCR-1 and TCR-2 will be implemented during Project construction. In accordance with MM TCR-1, and in the event previously unidentified tribal cultural resources are uncovered during Project construction, the Yuhaaviatam of San Manuel Nation Cultural Resources Management Department (YSMN) will be contacted and provided information regarding the nature of the find, so as to provide Tribal input with regards to significance and treatment. Should the find be deemed significant, as defined by the California Environmental Quality Act (CEQA) (as amended, 2015), a Cultural Resources Monitoring and Treatment Plan will be created by the archaeologist, in coordination with YSMN, and all subsequent finds will be subject to this plan.

The Monitoring and Treatment Plan will allow for a monitor to be present that represents YSMN for the remainder of the project, should YSMN elect to place a monitor on-site.

In accordance with MM TCR-2, any and all archaeological/cultural documents created as a part of the Project (isolate records, site records, survey reports, testing reports, etc.) will be supplied to the applicant and Lead Agency for dissemination to YSMN. The Lead Agency and/or applicant shall, in good faith, consult with YSMN throughout the life of the Project.

With the implementation of MMs TCR-1 and TCR-2, no substantial adverse changes related to a tribal cultural resource are anticipated, and the impact to tribal cultural resources as defined in PRC Section 21074 will be less than significant with mitigation incorporated.

4.18.2 Mitigation Measures
The following MMs will be implemented for the Project to reduce impacts to less-than- significant levels:
• MM TCR-1: Inadvertent Cultural Resource Discoveries. The YSMN will be contacted, as detailed in MM CUL-1, of any pre-contact cultural resources discovered

Page 316 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
72 Hesperia Phelan CUP24-00012

during Project implementation, and be provided information regarding the nature of the find, so as to provide Tribal input with regards to significance and treatment. Should the find be deemed significant, as defined by CEQA (as amended, 2015), a Cultural Resources Monitoring and Treatment Plan will be created by the archaeologist, in coordination with YSMN, and all subsequent finds will be subject to this plan. The Monitoring and Treatment Plan will allow for a monitor to be present that represents YSMN for the remainder of the Project, should YSMN elect to place a monitor on-site. • MM TCR-2: Consultation. Any and all archaeological/cultural documents created as a part of the Project (isolate records, site records, survey reports, testing reports, etc.) will be supplied to the applicant and Lead Agency for dissemination to YSMN. The Lead Agency and/or applicant will, in good faith, consult with YSMN throughout the life of the Project.

Page 317 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 73

4.19 UTILITIES AND SERVICE SYSTEMS
Would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Require or result in the relocation or
construction of new or expanded water,
wastewater treatment or storm water
drainage, electric power, natural gas, or
telecommunications facilities, the
construction or relocation of which could
cause significant environmental effects?

b) Have sufficient water supplies available to
serve the project and reasonably
foreseeable future development during
normal, dry and multiple dry years?

c) Result in a determination by the waste
water treatment provider, which serves or
may serve the project that it has adequate
capacity to serve the project’s projected
demand in addition to the provider’s existing
commitments?

d) Generate solid waste in excess of state or
local standards, or in excess of the capacity
of local infrastructure, or otherwise impair
the attainment of solid waste reduction
goals?

e) Comply with federal, state, and local
management and reduction statutes and
regulations related to solid waste?


4.19.1 Discussion
a) Would the project require or result in the relocation or construction of new or expanded water, wastewater treatment or storm water drainage, electric power, natural gas, or telecommunications facilities, the construction or relocation of which could cause significant environmental effects?
Water
Less-than-Significant Impact. Construction of Hesperia Phelan CUP24-00012 (Project) will require the temporary use of water and wastewater facilities by construction workers. Water used for construction activities, such as for dust suppression and compaction requirements, will be trucked to the Project using local fire hydrants and construction water meters as provided by the local Hesperia Water District (HWD). The HWD has sufficient water supply to accommodate the Project through its Mojave Basin Area Adjudication, which is the primary governing structure

Page 318 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
74 Hesperia Phelan CUP24-00012

that allocates water supplies among the regional water purveyors and individual water users to meet regional water needs (HWD 2020). Following construction, the proposed new water line for the convenience store and car wash will be connected to the existing 12-inch water line beneath the south side of Phelan Road, which is part of the City of Hesperia’s (City’s) water system. As a result, the impact will be less than significant.

Wastewater and Stormwater
Less-than-Significant Impact. The HWD operates the City’s wastewater services in conjunction with the Victor Valley Wastewater Reclamation Authority (VVWRA) (City 2010).

The Project will include construction of a new sewer force main that will connect to an existing 12-inch sewer main along Caliente Road to the west of the Project, through a proposed 5-foot sewer easement granted by the adjacent property owner with Assessor’s Parcel Number 3064- 401-09. The VVWRA has a current treatment capacity of 2 million gallons per day (mgd) for wastewater effluent from the service area in which the Project lies. The Project will result in a marginal increase of approximately 164 gallons per day in wastewater effluent to the VVWRA; however, the VVWRA has sufficient treatment capacity to accommodate this increase. As a result, the impact will be less than significant.

The Project will require one storm water catch basin at the southeast end of the Project to be relocated a few feet to the north, along Phelan Road, to match the new location of the curb and gutter. Additionally, the Project involves the removal of one v-ditch swale along the east side of the Project within California Department of Transportation right-of-way; however, these changes to the storm drain system would be minimal and would not significantly affect the downstream hydrology. The Project location is currently undeveloped and composed of a pervious surface and sparse vegetation. To mitigate the addition of 1.88 acres of impervious surfaces proposed by the Project, which can inhibit the infiltration of stormwater, the proposed on-site storm drain system will connect to an underground retention facility located east of the proposed fueling station to retain any additional stormwater runoff and discharge through a new proposed storm drain to Phelan Road. The underground retention facility will be capable of retaining stormwater flows from a 100-year storm event. Consequently, this Project will not increase the amount of stormwater runoff impacting downstream properties beyond pre-construction conditions. In addition, as discussed in Section 4.7 Geology and Soils, the Project will comply with the City’s Municipal Code Section 8.30.230, which includes the submittal of a Water Quality Management Plan (WQMP) for City review. The WQMP will include all required and proposed measures for site design, source control, runoff reduction, stormwater treatment, baseline hydromodification management, and low-impact development techniques as applicable. As a result, the impact will be less than significant.

Electrical Power and Natural Gas
Less-than-Significant Impact. Construction of the Project will not require the creation or relocation of electrical and natural gas facilities. During construction, power will be provided by a temporary power meter installed by Southern California Edison. Following construction, the Project will connect to an existing electrical distribution line that runs along the south side of Phelan Road across from the Project. When the Project becomes operational, electrical service will be provided by Southern California Edison and natural gas service will be provided by Southwest Gas Corporation. As a result, the impact will be less than significant.

Page 319 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 75

Telecommunications
No Impact. No new telecommunication facilities are proposed as part of the Project. Further, construction of the Project will not require the relocation of any existing telecommunication facilities. As a result, there will be no impact.
b) Would the project have sufficient water supplies available to serve the project and reasonably foreseeable future development during normal, dry and multiple dry years?
Less-than-Significant Impact. The City, through the HWD, has reliable water supplies to meet its retail customer demands in a single dry year, as well as for 5 consecutive years of dry-year conditions through 2045 (HWD 2020). HWD obtains its water from groundwater sources in the Alto Subarea of the Mojave Basin Area. The City was allocated 11,871 acre-feet per year (AFY), or approximately 10.6 mgd, of water use from the Alto Subarea in the 2020-2021 Water Year (HWD 2020). Water use during construction of the Project is anticipated to be approximately 3,000 gallons per day, and approximately 164 gallons per day (0.001 AFY) following the completion of the development. Thus, the amount of water use for the Project is negligible compared to this annual allocation. As a result, the impact will be less than significant. c) Would the project result in a determination by the waste water treatment provider, which serves or may serve the project that it has adequate capacity to serve the project’s projected demand in addition to the provider’s existing commitments?
Less-than-Significant Impact. As discussed previously, the wastewater provider for the Project will be the VVWRA in conjunction with the HWD. The City owns, operates, and maintains a wastewater collection system that connects to the VVWRA’s 3‐mile interceptor that runs along the northeast boundary of the City and ultimately flows to the Regional Waste Water Treatment Plant (RWWTP) that is owned and operated by the VVWRA (HWD 2020). The VVWRA was originally formed to meet the requirements of the federal Clean Water Act and provide wastewater treatment for the growing area. According to the City’s 2015 Wastewater Master Plan (WWMP), approximately 11 percent of the geographic area studied in the WWMP is currently served by the City’s sewers, which ultimately flow to the VVWRA RWWTP. The remaining area is either undeveloped or served by on‐site systems (i.e., septic tanks). Based on the WWMP, the wastewater flow volume from the service area is 2.0 mgd or 2,240 AFY (HWD 2020). As discussed previously, the VVWRA has sufficient treatment capacity to accommodate a marginal increase of approximately 164 gallons per day in wastewater effluent from the Project.

As a result, the impact will be less than significant.
d) Would the project generate solid waste in excess of state or local standards, or in excess of the capacity of local infrastructure, or otherwise impair the attainment of solid waste reduction goals?
Less-than-Significant Impact. Solid wastes generated during construction will primarily be non-hazardous wastes, including wood, metal, paper, and plastic packaging. Construction waste will be disposed of properly by the City’s waste hauler, Advance Disposal Company, Inc. (Advance Disposal), and in accordance with all applicable federal, state, and local laws. The nearest Advance Disposal waste collection facility is located approximately 6.5 miles east of the

Page 320 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
76 Hesperia Phelan CUP24-00012

Project and has a maximum daily capacity of 1,500 tons (California Department of Resources Recycling and Recovery [CalRecycle] 2025). The Project will not generate solid waste that is greater than state or local standards, that exceeds the capacity of local infrastructure, or that otherwise impairs the attainment of the City solid waste reduction goals. As a result, the impact will be less than significant.
e) Would the project comply with federal, state, and local management and reduction statutes and regulations related to solid waste? No Impact. All construction waste associated with the Project will be disposed of properly and in accordance with all applicable federal, state, and local laws regarding solid and hazardous waste. Therefore, no impact will occur.

Page 321 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 77

4.20 WILDFIRE
If located in or near state responsibility
areas or lands classified as very high fire
hazard severity zones, would the project:

Potentially
Significant
Impact
Less-than-
Significant
Impact with
Mitigation
Incorporated
Less-than-
Significant
Impact
No
Impact
a) Substantially impair an adopted
emergency response plan or emergency
evacuation plan?

b) Due to slope, prevailing winds, and other
factors, exacerbate wildfire risks, and
thereby expose project occupants to
pollutant concentrations from a wildfire or
the uncontrolled spread of a wildfire?

c) Require the installation or maintenance of
associated infrastructure (such as roads,
fuel breaks, emergency water sources,
power lines or other utilities) that may
exacerbate fire risk or that may result in
temporary or ongoing impacts to the
environment?

d) Expose people or structures to significant
risks, including downslope or downstream
flooding or landslides, as a result of runoff,
post-fire slope instability, or drainage
changes?


4.20.1 Discussion
a) If located in or near state responsibility areas (SRAs) or lands classified as very high fire hazard severity zones (FHSZs), would the project substantially impair an adopted emergency response plan or emergency evacuation plan? Less-than-Significant Impact. Hesperia Phelan CUP24-00012 (Project) will be located approximately 0.37 mile east of an SRA and lands classified as a high FHSZ (California Board of Forestry and Fire Protection 2024, California Department of Forestry and Fire Protection [CAL FIRE] 2023). The Project will also be located approximately 1.25 miles northwest of lands classified as a very high FHSZ.

As detailed in the City of Hesperia’s (City’s) General Plan Safety Element, fires typically start in the mountains or foothills approximately 3.45 miles south of the Project (City of Hesperia 2010).

If winds fan a fire north toward the City, evacuees would take roads leading north toward the more developed areas of the City or out of the City entirely. The City’s General Plan Safety Element identifies United States (U.S.) Highway 395, which is adjacent to the Project, as a potential evacuation route. As discussed in Section 4.9 Hazards and Hazardous Materials, any lane closure will be included in the required traffic control plan to minimize the effects on

Page 322 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
78 Hesperia Phelan CUP24-00012

evacuation routes. Therefore, the Project will not conflict with any adopted emergency response or evacuation plans. As a result, the impact will be less than significant. b) If located in or near SRAs or lands classified as very high FHSZs, would the project due to slope, prevailing winds, and other factors, exacerbate wildfire risks, and thereby expose project occupants to pollutant concentrations from a wildfire or the uncontrolled spread of a wildfire?
Less-than-Significant Impact with Mitigation Incorporated. As discussed previously, the Project will be located approximately 0.37 mile east of an SRA and lands classified as a high FHSZ. Elevations at the Project site slope upward from northeast to southwest with an approximate slope of 3 percent. Given the gradual slope of the Project site, the site topography is not anticipated to exacerbate wildfire risks. Prevailing winds at the Project site originate from the west and southwest (Mojave Desert Air Quality Management District 2020). Therefore, a potential fire would be anticipated to travel eastward from the Project site. The Project site consists of cheatgrass-medusahead grasslands and California buckwheat scrub, which could potentially act as surface fuel loads. The surrounding parcels are vacant, with sparse vegetation that could also potentially act as surface fuel loads. The Project is in an area with a history of fires, including a 1945 unnamed fire that occurred approximately 2.15 miles west of the Project site, the 1958 Santa Fe #13 fire that occurred approximately 2.05 miles east of the Project site, and the 2021 Farmington fire that occurred approximately 2.10 miles south of the Project site (CAL FIRE 2025). Given the potential fuel loads on and surrounding the Project site, prevailing wind direction, the Project’s proximity to the SRA, and the history of fires in the region, the Project is located in an area with potential wildfire risk.

Construction activities have the potential to start a fire due to the increased presence of vehicles, equipment, and human activity in areas of elevated fire hazard severity. Because construction typically occurs during the driest time of the year, heat or sparks from construction vehicles or equipment have the potential to ignite dry vegetation. However, construction of the Project will not exacerbate wildfire risks with implementation of Mitigation Measure (MM) FIRE-1, which details the fire management procedures that will be followed during construction. Fire management procedures include training construction crews on fire prevention and response, directing Project personnel to park away from dry vegetation, equipping all off-road vehicles with fire management tools, creating a buffer around “hot work” (e.g., welding, grinding, or any other activity that creates hot sparks), using fire-resistant mats and/or windscreens when welding, and coordinating procedures with local fire officials. In addition, U.S. Highway 395 and Phelan Road may act as firebreaks to slow the progress of a fire. With implementation of MM FIRE-1, construction of the Project will neither exacerbate wildfire risks nor expose construction crews to pollutant concentrations from a wildfire.

Operation of the Project will require a daily maximum of six employees. Employees will be limited to the convenience store, as the car wash will be self-operated and require no employees.

As discussed in Section 4.9 Hazards and Hazardous Materials, all Project structures will be constructed in compliance with the California Fire Code (24 California Code of Regulations [CCR] 9). In addition, the Project’s convenience store, car wash, and vehicle fueling station will be constructed and designed consistent with the City’s Municipal Code Chapter 16.16 Section 365 (City of Hesperia 2025) and the Commercial Design Standards and Guidelines found in the

Page 323 ends

Initial Study/Mitigated Negative Declaration

Au Energy, LLC March 2026
Hesperia Phelan CUP24-00012 79

City’s Main Street and Freeway Corridor Specific Plan (City of Hesperia 2008). Therefore, by complying with the California Fire Code and local development standards intended to reduce the likelihood of fire hazards, the Project will not exacerbate wildfire risks during operation. As a result, long-term Project employees will not be exposed to pollutant concentrations from a wildfire or the uncontrolled spread of a wildfire.

With incorporation of MM FIRE-1, the California Fire Code, and local development standards, the Project will have a less-than-significant impact with mitigation incorporated. c) If located in or near SRAs or lands classified as very high FHSZs, would the project require the installation or maintenance of associated infrastructure (such as roads, fuel breaks, emergency water sources, power lines or other utilities) that may exacerbate fire risk or that may result in temporary or ongoing impacts to the environment?
Less-than-Significant Impact. The Project will include the construction and operation of a vehicle fueling station and associated underground storage tanks. The vehicle fueling station and associated underground storage tanks may exacerbate fire risk because the fuel stored and dispensed at the vehicle fueling station will be flammable and combustible. As discussed in Section 4.9 Hazards and Hazardous Materials, the vehicle fueling station will be designed and operated in accordance with the California Fire Code and California Mechanical Code (24 CCR 4), and the underground storage tanks will be designed and constructed in accordance with California Health and Safety Code Chapter 6.7 and CCR Title 23, Division 3, Chapter 16.

Therefore, the vehicle fueling station and associated underground storage tanks will be operated in compliance with state standards to reduce the Project’s potential to exacerbate fire risks. In addition, the Project will require approximately 1.88 acres of the Project site to be paved, which will remove vegetation that could potentially act as surface fuel loads and reduce the Project’s potential to exacerbate fire risks. As a result, the impact will be less than significant. d) If located in or near SRAs or lands classified as very high FHSZs, would the project expose people or structures to significant risks, including downslope or downstream flooding or landslides, as a result of runoff, post-fire slope instability, or drainage changes?
No Impact. The Project is not located in a flood zone (City of Hesperia 2010) or area prone to landslides (California Department of Conservation 2024). In addition, the Project will receive coverage for disturbing more than 1 acre of soil under the General Permit for Storm Water Discharges Associated with Construction and Land Disturbance Activities, 2022-0057-DWQ (Construction General Permit). This Construction General Permit will require preparation of a Project-specific Storm Water Pollution Prevention Plan to be authorized by the State Water Resources Control Board; it will include erosion control measures and site stabilization procedures (e.g., the use of gravels bags or soil binders).

The Project includes a storm drainage system that will connect to an underground retention facility located east of the proposed fueling station to retain any additional stormwater runoff and discharge through a new proposed storm drain to Phelan Road. The underground retention facility will be capable of retaining stormwater flows from a 100-year storm event.

Consequently, this Project will not increase the amount of runoff impacting downstream

Page 324 ends

Initial Study/Mitigated Negative Declaration

March 2026 Au Energy, LLC
80 Hesperia Phelan CUP24-00012

properties. In addition, in accordance with the City’s Municipal Code Section 8.30.220 and Section 8.30.230, a Water Quality Management Plan (WQMP) will be provided to the City for review and approval prior to the issuance of grading and building permits. The WQMP will include all required and proposed measures for site design, source control, runoff reduction, stormwater treatment, baseline hydromodification management, and low-impact development techniques as applicable. Therefore, the Project will not expose people or structures to significant risks, including downslope or downstream flooding or landslides, as a result of runoff, post-fire slope instability, or drainage changes. Therefore, no impact will occur.

4.20.2 Mitigation Measures
The following MM will be implemented for the Project to reduce impacts to less than significant levels:
• MM FIRE-1: Fire Risk Management: The Project will follow standard fire risk management procedures during construction, including the following:
- Safe work practices, training, and fire response will be conducted. - Project personnel will be directed to park away from dry vegetation. - All off-road vehicles will be equipped with a 5-gallon backpack pump (filled with water), one Pulaski, and one shovel.
- Construction activities that are considered “hot work” (e.g., welding, grinding, or any other activity that creates hot sparks) will have a 10-foot buffer around that activity, and vegetation will be cleared to ensure sparks do not create a fire hazard. - Fire-resistant mats and/or windscreens will be used when welding. In addition, during fire “red flag” conditions (as determined by the California Department of Forestry and Fire Protection), welding will be curtailed.
- Every fuel truck will carry a large fire extinguisher with a minimum rating of 40 B:C,
11 and all flammable materials will be removed from equipment parking and storage areas.
- Procedures will be coordinated with local fire officials. - Daily site-specific risk conditions will be identified.

11 Class B fire extinguishers are classified for flammable liquid/gas fires. Class C fire extinguishers are classified for energized electrical equipment. A fire extinguisher with a minimum rating of 40 B:C is capable of covering and extinguishing 40 square feet of a Class B fire and is also safe to use for a Class C fire (Koorsen Fire & Security 2019).

Page 325 ends

Hesperia City CouncilApril 21, 2026

Hesperia City Council
April 21, 2026