Item 15 - PDC 21-00422-001 Req. for Review of Proposal to Modify a CUP and Reclamation Plan for Mining Site for Battery Energy StorageFebruary 15, 2022, Item #15DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PO RT City of Poway February 15, 2022 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services fv'\ Austin Silva, Senior Planner A~ 858-668-4658/asilva@poway.org CITY COUNCIL Pre-Development Conference 21-004/22-001; a request for review of a proposal to modify a Conditional Use Permit and Reclamation Plan for the mining site operated by Granite Construction to provide for a Battery Energy Storage System facility and an amendment to the South Poway Specific Plan to allow transmission poles in the Natural Open Space area at 10975 Beeler Canyon Road. Granite Construction is proposing to modify Conditional Use Permit (CUP) 19-009 and its Reclamation Plan to revise future industrial building pad locations (Pads) to provide for a Battery Energy Storage System (BESS) facility at the northerly portion of the mining site and to amend the South Poway Specific Plan (SPSP) to allow transmission poles and lines up to 80-feet tall in the Natural Open Space (Natural 05) area on three parcels at 10975 Beeler Canyon Road designated as Mineral Resource Extraction (MRE) in the SPSP area. The review of Pre-Development Conference (PDC) 21-004/22-001 is advisory only. Two PDC applications are being discussed as one agenda item because they are interrelated. The City Council will not render any decision. If the Applicant wishes to proceed with an application, it is with the understanding that the City Council has made no representation upon which the Applicant may rely. Recommended Action: It is recommended that the City Council provide input and direction regarding the request. Discussion: Nighthawk Energy Storage, LLC (BESS Facility) and Eric Matz (property owner representative) are the applicants. There are three parcels associated with this PDC request. The two westerly parcels, Assessor Parcel Numbers (APN) 320-031-06 and 320-031-03 (Clerco Parcels) are owned by Clerco, Inc. The easterly parcel, APN 320-031-04 (Calmat Parcel), is owned by Calmat Co. The three parcels (collectively Mining Site) are located south of Kirkham Way and north of Beeler Canyon Road on 1 of 18
February 15, 2022, Item #15properties designated as MRE in the South Poway Specific Plan (Attachment A). Surrounding land uses include industrial development and open space to the west, industrial development to the north, an apprenticeship training center and open space to the east, and single-family residences and open space in the City of San Diego to the south across Beeler Canyon Road. Aggregate extraction and processing activity was conducted by Padre Transit Mix at the Mining Site starting in 1975 under a permit issued by the County of San Diego prior to the City of Poway's incorporation. Padre Transit Mix was acquired by CalMat Co. in 1989. The City took responsibility of administering the mining extraction permit after incorporation. The original mining operation was located on the central parcel which is in the easterly property of the Clerco Parcels (82.93-acre parcel). In 1986, CalMat purchased the Calmat Parcel (65.92-acre property), which was included in the current CUP for the mining operation. In 1987, Clerco purchased the westerly approximate 17-acre property (APN 320-031-06) of the Clerco Parcels to allow for a private access road from the Mining Site to Kirkham Way. Granite Construction took over operation of the Mining Site in February 2020 with approval of CUP19-009. CUP19-009 was approved administratively as a minor modification to CUP89-05 to memorialize the change in the mine operator. Rather than mining, Granite Construction primarily uses the site to recycle broken concrete and asphalt into useful construction materials. The SPSP, adopted in 1985, identified the mining operation as ongoing and allowed it to continue by renewing the County's permit as a CUP from the City of Poway and approval of a Reclamation Plan. The Reclamation Plan is required by California's Surface Mining and Reclamation Act of 1975 to assure that "adverse environmental effects are prevented or minimized and that mined lands are reclaimed to a usable condition which is readily adaptable for alternative land uses." Chapter 16.54.080(8) of the Poway Municipal Code (PMC) also states that the Reclamation Plan and potential use of reclaimed land pursuant to the plan are to be consistent with the General Plan and any applicable specific plans, resource plan, or element. The PMC also requires that reclamation activities begin as early as possible on those portions of the mined lands that will not be subject to further disturbance. Reclamation at this Mining Site may be done on an annual basis, in stages with continuing operations, or upon completion of all excavation, removal, or fill, as approved by the City. Final slopes and grade elevations will be in accordance with the 1991 Reclamation Plan Sheets R-1 through R-5 (Attachment B). The Reclamation Plan indicates that two industrial pads will be constructed totaling approximately 15 acres over the easterly Clerco Parcel and the Calmat Parcel along the south side of Kirkham Way at the northerly portion of the Mining Site (Attachment C). After reclamation of the Mining Site, 154 acres will be redesignated from MRE to Natural OS. A biological conservation easement (BCE) with appropriate signage will also be required over the Natural OS areas. The remaining 15 acres where the industrial pads will be located will be redesignated to Light Industrial (LI). In 2022, Granite Construction expects to commence reclamation activities at the Mining Site by beginning restoration of the Central Reach of Beeler Creek, which includes 894 linear feet that have been impacted by mining activities. Granite Construction has obtained the appropriate permits from the Regional Water Quality Control Board, California Fish and Wildlife, and United States Army Corps of Engineers to move forward with the creek restoration. The applicant is requesting to modify CUP19-009 and the Reclamation Plan to reconfigure the two industrial building pads to be entirely on the Clerco Parcels as conceptually shown in the conceptual industrial pad reconfiguration exhibit (Attachment D). This would require a modification to the CUP and minor modifications to the Reclamation Plan along with a Development Review to be approved by the City Council. This would result in no industrial pad being constructed on the Cal Mat parcel and the CalMat parcel would remain undisturbed. CalMat has indicated that they do not desire to construct a portion of the industrial pad on their property (Attachment E), and this will be reflected in 2 of 18
February 15, 2022, Item #15the CUP. The CUP modification would also allow for use of the industrial pad while mining operations continue on the site. If the reconfiguration of the industrial pads is approved, Clerco, Inc. desires to lease an approximate 10-acre pad to Nighthawk Energy Storage, LLC to construct and operate an approximate 300-megawatt BESS facility. The BESS facility would receive energy (charging) from the SDG&E electric transmission system, store energy on-site, and then deliver energy (discharging) back to the grid during blackouts. A BESS facility operates similarly to a wireless telecommunications facility in that there are no employees on-site and the facility will be maintained routinely. A BESS facility is a permitted use on a LI-designated property with approval of a Development Review application. The BESS facility will consist of lithium-ion batteries installed in containers, power inverters, a collector substation with switchgear and a transformer, a generation transmission line, and transmission poles. The batteries and collector substation will be located on the industrial pad portion of the Mining Site that will be redesignated to LI as shown on the site plan for the BESS facility (Attachment F). The generation tie line will be constructed to transfer power between the BESS facility and the SDG&E Sycamore Canyon Substation to the south in the City of San Diego. The· generation tie line would be supported by steel transmission poles that are anticipated to be between 60 to 80 feet high (Attachment G). The transmission poles are proposed to be located in the future reclaimed areas of the Mining Site that would be redesignated as Natural OS. This conflicts with the provisions of the zone as structures such as transmission poles associated with private facilities are currently not allowed in areas designated as Natural OS. Therefore, an amendment to the SPSP would be required to allow privately-owned transmission poles in the Natural OS designated areas. Currently, on~y structures associated with wireless communication facilities may exceed 45 feet in height in the SPSP area and are not permitted within Natural OS areas. The SPSP amendment would also need to include a request to allow transmission poles and lines supporting a BESS substation to exceed 45 feet in height in the Natural OS areas, and to redesignate the land uses of the Mining Site to Natural OS and LI. Beeler Canyon is identified as an east-west wildlife movement linkage corridor (Biological Core Linkage Area or BCLA) in the Poway Subarea Habitat Conservation Plan (HCP). Beeler Canyon is identified as both a regional and local corridor in the HCP (Figure 2-1 ). The environmental impact report (El R) for the SPSP states that south facing slopes should be preserved for habitat. The transmission poles and lines would also impact hillside ridgeline views. In addition, adopted slope regulations restrict development such as this on steep slopes. Approval would be required by the California Department of Fish & Wildlife with a recommendation from City staff to support the project. View and biological impact studies would also be required. Staff asked if the tie line could instead be undergrounded or tie into the existing transmission lines to the east. The applicant expressed concern of costs that could potentially make the project financially infeasible. The review of PDC 21-004/22-001 is advisory only. The City Council will not render any decision. If the Applicant desires to proceed with an application, it is with the understanding that the City Council has made no representation upon which the Applicant may rely. The Agreements of Understanding is included as Attachment H. Environmental Review: Because no action can be taken, this item is not a "Project" pursuant to the California Environmental Quality Act (CEQA) and is therefore not subject to CEQA review. 3 of 18
February 15, 2022, Item #15Fiscal Impact: Construction of new buildings may trigger a reassessment of value ("basis") for property taxes depending on the County of San Diego's Assessor's and Treasurer-Tax Collector's interpretation of land use. If assessable, the reassessment would increase property tax revenues to the City. Based on the information available, the magnitude of the increase cannot be estimated at this time. Public Notification: None. Attachments: A. Zoning and Location Map B. 1991 Reclamation Plan Final Slope and Grade Elevations C. Current Industrial Pad Configuration D. Proposed Conceptual Industrial Pad Reconfiguration E. Notice of Calmat's Election to Not Construct Commercial Pad F. Preliminary BESS Site Plan G. Transmission Pole Drawing and Photograph Example H. Agreements of Understanding Reviewed/ Approved By: J~, L-----Wend~aserman Assistant City Manager 4 of 18 Reviewed By: Alan Fenstermacher City Attorney Approved By: c~ City Manager
February 15, 2022, Item #15OS-1DU 5 of 18 .. --------t Location: -031-03 c}~i 0_~--~~lt-:1 ~ City of Poway I :!---1 ci5 Kirkham WayJ ubject 32 San Diego r -Zoning/ Location Map -~=--Item: PDC21-004/PDC22-001 .. NORTH 012~50 500 P--iFeet ATTACHMENT A
February 15, 2022, Item #15TO ~.lr~(r-1O BERNARDO ../' TO SAN DIEGO CALMAT-POWAY RECLAMATION PLAN TO z <( _j a.. <r ID a: 0 ~ ~~ ~01/')<t oxu l-1-: 0 • ffi; GI~ ~5~~ I ~ ~~ •.• "' I w .•-= ;,:r B ,,. z <( ~ "'o ~~~ ~>O 111IAJN .JOI 06.q gmu SrATE ROuTE 67 JL// v_ .. ~ L~=--=-----r OS 3: .J • ~g* BA FUTURE ALIGNMENT TO INTERSTATE 15 --( ~~~rRr,~~AY B INDUSTRIAL PARK 0 LIGHT INDUSTRIAL w ~-i1€,1QU1tiAL As . . .-, ... ..., 6Jlt I MATION . . . . . ' .. · ' .· ... --" . . ,· SIT£ ··M 1(111 LAND USE MAP . SOUTH POWAY-PLANNED COMMUNITY C Figure IOa z 0 ti ~ _J w 0:::: r-z <( _J' a.. -~ I <i)" a. 000: 1--WC> ZILZ wa10 ::EI/') ::E wmw (/).CD ID .J 0:: w -w ~1-· e>::e z ct wz a N l7l <( ~ a,~ a,O cS 0 ,_,.,,d . 1-,: >< 13 405 •1 g.;~ 1-111 l .--,.0_··. ___ . r,: . ' i. ;vulcan-Poway Reclamation Plan -Sheet R-t 1: 19 \D.,
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February 15, 2022, Item #15/ / ~ < C ~ i' "t1 0 j '< a "11 D> !" N g -g· ~ :E ! I I en [ ~ l.u q a --§ • t POWAY PLANT RECLAN1ATION PLAN EXISTING AND PROPOSED GRADES ' ~A.NT ·.. ~.' . · : CALMAT CO. :.-SS: P,O.BOX 3098 SAN· DIEGO, CALIFORNIA 92103 ENGINEERS NAME: BEMENT OAINWOOO STURGEON 6859 FEDERAL BOULEVARD LEMON GROVE, CA 92045 AGENT . NAME: ROBERT IMLER CALMAT CO. ADDRESS: P.O. BOX 579 POWAY, CA. 92064
February 15, 2022, Item #159 of 18 POWAY PLANT RECLAMATION PLAN FINAL LAND FORM .• ANT . ~ . CALMAT CO. A001'1£SS; P.O. BOX 3098 SAN OIEGO, CALIFORNIA 92103 ENGINEERS NAME: BEMENT DAINWOOD STURGEON 6859 FEDERAL BOULEVARD LEMON GROVE, CA 920'45 IUYIG,,NS: CATE: 'CT/ON S/JIIILS ¥4TE • -:jj AyENT NAME: ROBERT IMLER CALMAT CO. ADDRESS: P.O. BOX 579 P(J,NAY, CA. 92064
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(.Jl 0 0 0 0 I I I I I i ' WEST 'I.OT Ll#E . RECLArv1AllON PLAN PROFILES (See drawing R-3 for location) :•~•™r· ' ·W: . CALMAT co. 0 Of 10 ADOl!Ess: P.O. BOX 3098 · O SAN OIEGO, CALIFORNIA 92103 ENGINEERS NAME: BEMENT DAINWOOD STURGEON 6859 FEDERAL BOULEVARD LEMON GROVE, CA 92045 (.Jl 0) -J Cl) (JI (JI (JI (.Jl 0 0 0 0 I I I I I I I wrs-r ~O! LIVE I i ' I \ I' i\ \. \: ', '.\ ; ; i I ; i ;ti './ ~ I ~ ;1 ~ i\ ~ l\ I : I I 'I I I '. I I I I : ' I/ ," ,. I, / : \' \i ~ i\ ! I •
\ I I: I: I, I I' ': : /~ i I ;i ~' : I / .~ /; ;~ / : '§ / 'i I •~ :/ [ ., I I I • J ; 1 ,!!I I I I : : l I I ' EAIT. , I IDT 11.Jt-lT 0) -J Cl) I.D u, u, (.J1 (JI 0 0 0 0 I I I .I I ! I ,,J --,--,-r ROBERT IMLER CALMAT CO. AOORESS: ~O. BOX 579 PON/:tf, CA. 92064
February 15, 2022, Item #15LOCATION OF INDUSTRIAL PADS 11 of 18 ATTACHMENT C
February 15, 2022, Item #15L w-r r' -~·• ·~< .,,/ -------"'>:-:-~-<_.) 12 of 18 LOCATION OF FUTURE INDUSTRIAL PADS .. -_-· __ ../ y / / -~~.£/---•~<---~ ATTACHMENT D
February 15, 2022, Item #15G ESH S V. GE If C : 13 of 18 ATTACHMENT E
February 15, 2022, Item #15z :3 0.. w I-vi > c:: <( z :E ::i w c:: 0.. 14 of 18 ATTACHMENT F
February 15, 2022, Item #15-' 15 of 18 ATTACHMENT G
February 15, 2022, Item #15AGREEMENT OF UNDERSTANDING City Council for the City of Poway, hereinafter referred to as· City" and ____ C_le_r_c_o_, _ln_c_. _________ , hereinafter referred to as "Proponent" enter into this Agreement of Understanding based upon the following facts: Proponent owns or has an equitable interest in land described by tax Assessor's 320-031-03 Parcel Number(s)-----------. Proponent desires to develop this property in accordance with the will of the City and without the expense of a protracted development. City is concerned that Proponent will create development plans unsatisfactory to City and consume time and effort of City employees needlessly on unsatisfactory development plans unless City assists in directing Proponent. Based upon the above~ mentioned facts, City will grant Proponent a hearing prior to filing any application for development upon the following understanding: a. City will render no decision with regards to any development proposal or part thereof. b. City will receive no evidence, specific in nature1 in support of a particular development plan. c. City will make no representations that will obligate the City to render a decision in favor of or against any development proposal or part thereof Proponent may subsequently submit. d. If any development proposal is subsequently submitted, Proponent will proceed at its sole and ex.elusive risk with the understanding that City has made no representations upon which Proponent may rely. Dated: Proponent: 16 of 18 ATTACHMENT H
February 15, 2022, Item #15AGREEMENT OF UNDERSTANDING City Council for the City of Poway, hereinafter referred to as "City" and __ N_ig_h_t_h_aw_k_E_n_e_r_g_y_S_t_o_ra_g_e_,_L_L_C __ , he rei natter referred to as "Proponent" enter into this Agreement of Understanding based upon the following facts: Proponent owns or has an equitable interest in land described by tax Assessor's 320-031-03 Parcel Number(s) ___________ . Proponent desires to develop this property in accordance with the will of the City and without the expense of a protracted development. City is concerned that Proponent will create development plans unsatisfactory to City and consume time and effort of City employees needlessly on unsatisfactory development plans unless City assists in directing Proponent. Based upon the above-mentioned facts, City will grant Proponent a hearing prior to filing any application for development upon the following understanding: a. City will render no decision with regards to any development proposal or part thereof. b. City will receive no evidence, specific in nature, in support of a particular development plan. c. City will make no representations that will obligate the City to render a decision in favor of or against any development proposal or part thereof Proponent may subsequently submit. d. If any development proposal is subsequently submitted, Proponent will proceed at its sole and exclusive risk with the understanding that City has made no representations upon which Proponent may rely. Dated: 12/6/21 Proponent: Signature 17 of 18
February 15, 2022, Item #15001 _Ag reement_of_U nderstand i ng Final Audit Report 2021-12-13 Created: 2021-12-13 By: Jacob Montgomery Umontgomery@arevonenergy.com) Status: Signed Transaction ID: CBJCHBCAABAAa7n8qderBt-vXLuY6WbFaw9b0X4d1 QKz "001 _Agreement_of_U nderstanding" History t:l Document created by Jacob Montgomery Umontgomery@arevonenergy.com) 2021-12-13-6:34:28 PM GMT-IP address: 184.177.8.190 C: Document emailed to Aron Branam (abranam@arevonenergy.com) for signature 2021-12-13 -6:34:54 PM GMT Email viewed by Aron Branam (abranam@arevonenergy.com) 2021-12-13-9:07:21 PM GMT-IP address: 97.124.58.66 0'"0 Document e-signed by Aron Branam (abranam@arevonenergy.com) Signature Date: 2021-12-13-9:07:33 PM GMT-Time Source: server-IP address: 97.124.58.66 ~ Agreement completed. 2021-12-13 - 9:07:33 PM GMT Adobe Sign 18 of 18