Planning commission backs forwarding 250‑MW battery storage project at Cow Palace site to City Council

The Daly City Planning Commission on Dec. 3 voted to forward to the City Council staff recommendations to approve a proposed 250‑megawatt, four‑hour battery energy storage system (BESS) at 2150 Geneva Avenue, subject to findings and mitigation measures in a CEQA mitigated negative declaration.

Staff (S6) explained the applicant, Cormorant Energy Storage LLC, proposes to develop an approximately 11‑acre site currently used for vehicle and materials storage (historically a drive‑in theater) adjacent to the PG&E Martin Substation. The project would include a 115‑kilovolt underground transmission connection to the Martin Substation, precast concrete perimeter walls, surveillance, thermal monitoring, an on‑site fire water loop and hydrants, and emergency coordination with the North County Fire Authority. Staff said the CEQA mitigated negative declaration was circulated to agencies and the public, received one comment from the California Department of Fish and Wildlife, and that staff and the CEQA consultant concluded impacts can be reduced to less‑than‑significant with mitigation.

Developers and the applicant’s team described operations and safety systems, saying the project would use containerized battery enclosures (Tesla Megapacks were discussed as the vendor example) with redundant thermal detection, sectional isolation and containment features; an engineer on the team described relevant UL testing and the industry practice of containment and controlled burn/containment response. The development team also presented estimated fiscal benefits (an estimated $3 million in sales tax revenue after phase 1, up to $4 million at full build‑out, and roughly $27 million in property tax payments over the project life), a tentative construction schedule (beginning spring/summer with operation expected by June 2026) and a proposed 30‑year project term in the development agreement.

Commissioners pressed developers on safety and battery chemistry (questions about lithium‑ion vs sodium‑ion technology and the commercial maturity of alternatives). Developers responded that lithium iron phosphate chemistry and tested Megapack systems are the commercially available, proven choices for large‑scale deployments today and that sodium‑ion may be considered as augmentation in the future when commercial vendors and track records are available.

During public comment, several residents and representatives spoke in support. Phyllis Rizzi (Bayshore Senior Club) said residents view reuse of the drive‑in site and the grid benefits positively; Al Perez (president, Filipino American Arts Exposition) described community engagement and sponsorships by the developer; speakers representing construction and electrical trades emphasized use of union labor and apprenticeships and urged local hiring.

After public comment, commissioners moved, seconded and approved a recommendation to the City Council that the council adopt the CEQA mitigated negative declaration and mitigation monitoring and reporting program and approve the general plan amendment, zone change, use permit, design review and development agreement for the BESS at 2150 Geneva Avenue. Staff said the item is tentatively scheduled for City Council consideration on Jan. 27, 2025.