County approves state grant agreements to probe Flashes pumped-storage microgrids near Lucerne and Hartley

The Lake County Board of Supervisors on June 23 approved state-funded pre-development agreements for “Flashes,” a proposed pair of pumped-storage microgrids planned near Lucerne and Hartley that would store energy as water in large tanks and generate electricity by sending the water through turbines.

Board members authorized Microgrid Incentive Program (MIP) grant agreements with PG&E and reimbursable pre-development contracts with Train, the project’s lead developer, enabling hydrogeologic testing, environmental review and grid-interconnection work. County officials and Train described the approvals as funding for feasibility and site work only, not a construction commitment.

Deputy County Administrative Officer Ben Rickleman said the agreements would “de-risk” the project by paying for expensive, early-stage work such as deep aquifer testing and state energy-approval processes. “These grants support pre-development, not project approval,” Rickleman told the board, adding that if the feasibility work shows fatal technical or economic barriers, the county can stop the effort with no construction obligation.

Train’s project lead Michael Day described the concept as a closed-loop pumped-storage system: solar arrays would power pumps that lift deep groundwater into an upper tank; when electricity is needed, the water would flow down through turbines into a lower tank and generate power. Day said the system could provide 24-hour microgrid service to critical facilities during outages and sell energy and ancillary services into energy markets under California programs.

“If this works, we’re looking at something that has the potential to keep the lights on when they’d otherwise go out, provide firefighting water staging and generate revenue,” Day said. He and county staff noted, however, that a host of feasibility checks must succeed — including hydrology showing the project draws from deep, non‑connected aquifers and timely interconnection approvals from grid operators.

The approved PG&E MIP grants total several million dollars for pre‑development work; in parallel the county will sign reimbursement contracts with Train so consultant invoices are reimbursed as grant milestones are met. The Rural County Representatives of California also offered the county a $200,000 zero‑interest loan to bridge pre‑development cashflow needs.

Rickleman and Train outlined a roughly two‑year pre‑development schedule that begins with a hydrogeology program (drilling and aquifer testing), geotechnical and environmental investigations, then moves into federal and state permitting steps and grid‑interconnection studies. Day said the Federal Energy Regulatory Commission (FERC) permitting posture also matters: a recent FERC decision (Bison Peak) permits certain closed‑tank pumped‑storage facilities to avoid lengthy FERC licensing when strict tests are met, dramatically shortening the schedule if the project qualifies.

The board and members of the public pressed for local benefits and protections. Supervisors asked that any future business model consider local ownership, first‑refusal to serve local customers and workforce development for Lake County residents. Train and county staff said project financiers and federal tax incentives make union labor and apprenticeship participation likely, and the county could pursue community workforce agreements in later design stages.

Several residents and trade union representatives urged the board to keep jobs and apprenticeships local and recommended early planning so local workers can access training before construction starts. County staff said the project team has begun coordinating with labor groups and local workforce programs to expand training capacity if the project proceeds to construction.

Board members voted to approve the MIP grant agreements and the reimbursable pre‑development contracts. Supervisors and staff stressed again that the approvals fund feasibility work only and that project construction remains a separate, later decision that would require additional public review, environmental permitting and potential financing approvals.

Next steps: Train and county staff will begin the hydrology and environmental work funded by the MIP grants, report milestone progress to the board, and return with recommendations should the project prove technically and economically viable.