City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Ken Zuidervaart, Planning Director
Date: 09/12/2023
Subject: Energy Storage Response Group
RECOMMENDED ACTION:
Approve and authorize the Mayor to sign the Professional Services Agreement and Mutual NonDisclosure Agreement with Energy Storage Response Group to provide peer review services of Broad Reach Power's battery storage project safety reports in the not to exceed amount of $15,000 (funding source: Reimbursement Agreement with Broad Reach Power).
BACKGROUND:
In May of 2021, Noosa Energy Storage, LLC applied for and received approval for a “Use Permit” to construct a lithium-ion battery energy storage project at 1302 Frontage Road (near Flying J and the PG&E substation). The Planning Commission made several required findings in approving the Use Permit, including Finding #4, referenced below.
Finding #4 – Issuance of the permit will not be significantly detrimental to the public health, safety, or welfare, or be injurious to the property or improvements of adjacent properties.
Construction of the project had not commenced by May 2023, and the developer was now in jeopardy of losing their entitlements for the project due to permit expiration limits set within the Ripon Municipal Code. The Ripon Municipal Code does allow for a one-year time extension upon approval by the Planning Commission and/or City Council, and extension requests are entirely within the purview of the reviewing body, and findings need not be made.
Broad Reach Power (previously Noosa Energy Storage, LLC), did submit a request for a one year extension on the project prior to their expiration date. However, since initial approval of the project (May 2021), there was a fire at a battery energy storage facility in Monterey County that raised questions regarding the safety of the battery storage technology. The applicant, as well as staff, believe it is important to fully understand the technology proposed to be on-site, the potential hazards associated with such equipment, and appropriate responses and mitigation should an equipment failure occur. Therefore, Broad Reach Power has agreed to update and provide three (3) key reports to address the City’s concern:
1. A Hazard Mitigation Analysis
2. An Emergency Response Plan
3. A Decommissioning Plan
DISCUSSION/ANALYSIS:
City staff requested a scope and fee from Energy Storage Response Group, an east coast based firm who specializes in lithium ion battery energy storage project safety, to peer review the previously described three (3) reports provided by the applicant for the Ripon project. The proposal includes reviews of each report by Energy Safety Response Group along with a written report describing each report’s strengths, weaknesses, and opportunities for improving mitigation, if necessary.
The three (3) reports, along with the peer review should provide staff, the Planning Commission and the City Council with the appropriate information to make an informed decision on Broad Reach Power’s extension request for the project.
FISCAL IMPACT:
The cost for this peer review of Broad Reach Power’s reports by Energy Storage Response Group is a not to exceed amount of $15,000, which will be paid by Broad Reach Power through an approved reimbursement agreement with the City of Ripon.
Attachments:
1. Professional Services Agreement
2. ESRG Mutual NDA Update