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Board backs pre-development of 'Flashes' microgrid project using CPUC MIP grants; $3.7M pre-dev funding anticipated

Lake County Board of Supervisors · June 23, 2026
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Summary

Supervisors approved Microgrid Incentive Program (MIP) agreements and reimbursement contracts to begin two-site "Flashes" pre-development work (Hartley and Lucerne). The project would provide 24-hour microgrids and potential revenue but would require extensive hydrologic, FERC and CEQA work before construction.

The Board of Supervisors approved two Microgrid Incentive Program agreements with PG&E and development reimbursement agreements with Trane to begin pre-development work on the Flashes (Fire-main Linked Auxiliary Supply Hydraulic Energy Storage) project at Hartley and Lucerne. The motions passed 4-0.

Deputy County Administrative Officer Ben Ruckman and Michael Day of Trane described the project as two co-located pumped-storage-like systems paired with solar arrays that would create at least 24-hour microgrids, provide emergency water access and generate revenue. Ruckman said the MIP program is a CPUC-administered, ratepayer-funded program for investor-owned utility territories and provides milestone-based reimbursements; total MIP funding for the two sites is roughly $3.7 million, with the county's direct staff-augmentation allocation for ISO/CEQA work listed at $254,401 in the agreements.

Day noted that critical pre-development tasks include a hydrology study (to support a FERC jurisdiction analysis under Bison Peak precedent), geotechnical borings and an environmental review; he said the hydrologic work alone may exceed $500,000. He estimated that construction would be well north of $150 million if the project proceeds, and described multiple ownership models (third-party investor build/own/operate vs. county ownership with bonds/JPA). Ruckman said PG&E and the program structure mitigate upfront county cash exposure and that RCRC offered a $200,000 0% loan to keep the county cash-positive through pre-development.

Public commenters from building trades and unions urged local hiring and community workforce development agreements; speakers also urged clearer public outreach and updated cost estimates before major commitments. Several supervisors asked staff to coordinate the county's energy policy and community workforce development planning in parallel with pre-development work. The board approved both sets of agreements and authorized the chair to sign.