The Laguna Niguel Beacon January 2026 | Issue 09

Proposed Battery Energy Storage Systems (BESS) Project Update

The City of Laguna Niguel has actively opposed a proposed Battery Energy Storage System (BESS) Project as it poses a significant fire risk and other safety concerns. This update is intended to share the most recent developments regarding the proposed BESS project.

Project Background

Compass Energy Storage, LLC proposed to construct, own, and operate an approximately 250-megawatt Battery Energy Storage System (BESS) facility in the City of San Juan Capistrano. The approximately 13-acre project site is located within the northern portion of the City of San Juan Capistrano, adjacent to Camino Capistrano, Interstate-5 to the east, and approximately 1,500 feet from Laguna Niguel homes.

Latest Developments

On December 22, 2025, the City received notification that ENGIE North America is pausing the Compass BESS Project application with the California Energy Commission. In its letter to the CEC, ENGIE stated the decision is being made because certain commercial aspects about the current site, along with resource adequacy and market changes, have influenced the economic viability of the Project, requiring ENGIE to re-evaluate the location. ENGIE also stated they will renew efforts to identify an alternative location to implement their existing transmission position, including by evaluating whether conditions have changed at alternative sites that would render one or more viable for the Project. On January 12, 2026, the CEC formally acknowledged and accepted ENGIE’s request to suspend proceedings. As a result, the Compass BESS Project is now suspended, and CEC staff will discontinue work on the project unless and until the suspension is lifted. To ensure transparency during this period, the CEC has requested that ENGIE submit monthly status reports by the last day of each month, beginning in February 2026. The complete letter from ENGIE to the CEC is available on the City’s dedicated webpage at cityoflagunaniguel.org/bess. The City will continue to monitor the application and provide updates on the project's status, as necessary.

City Council Adopts the Laguna Niguel Comprehensive General Plan Update

On November 13, 2025, the Laguna Niguel City Council adopted the City’s General Plan Update, marking a major milestone in long-term planning and community development. California law requires every city to maintain a General Plan and update it periodically. The General Plan serves as the City’s blueprint for the future, guiding decisions that shape Laguna Niguel’s growth, development, and public infrastructure over time. Laguna Niguel’s previous General Plan was adopted in 1992. While the Housing and Land Use Elements have been updated over the years, many other elements remained largely unchanged. As identified in the City’s Strategic Plan, completing a comprehensive update of the General Plan was a multi-year priority to ensure City policies reflect today’s needs, community priorities, and updated State requirements. The newly adopted General Plan Update replaces the 1992 General Plan, with the exception of the Housing Element, which was certified by the California Department of Housing and Community Development in February 2024. Looking ahead, the General Plan Update serves as a long-range policy document with a 20-year horizon, outlining goals and policies that will guide future decision-making. Developed through a two-phase process spanning 2021 through 2025, the update included extensive research, technical analysis, and environmental review. Most importantly, it was shaped by more than two years of community engagement, including surveys, outreach events, public meetings, and multiple opportunities for residents, City leadership, regional partners, and other stakeholders to provide input. With the update now adopted, Laguna Niguel has a clear and comprehensive framework to guide development, support economic and environmental objectives, enhance mobility, and preserve the City’s enduring character.