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Proposed Battery Energy Storage Systems Project: Current Status & Next Steps
The City of Laguna Niguel is actively opposing a proposed Battery Energy Storage System Project that poses a significant fire risk and other safety concerns, threatening the well-being and public safety of Laguna Niguel residents. This communication highlights a project overview, latest development and actions, and important next steps.
Project Overview
Compass Energy Storage, LLC proposes 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.
Compass Energy Storage is pursuing state approval via the California Energy Commission (CEC), as allowed under state law designed to facilitate renewable energy projects. On April 30, 2025, the CEC deemed the Compass Energy Storage project application complete, and the CEC is now required to approve or deny the proposed project within 270 days or as soon as practicable thereafter.
Latest Developments and Actions
On May 29, 2025, and June 3, 2025, the CEC hosted an Informational and Environmental Scoping Meeting. During the meeting, the CEC provided an overview of the State's review process, while Compass Energy Storage presented its proposed plans for constructing and operating the project. Following presentations by the CEC and Compass Energy Storage, dozens of public comments were made, with the vast majority in opposition to the project.
Current Status and Next Steps
The California Energy Commission (CEC) is currently reviewing the project application and is preparing a draft Environmental Impact Report, which is tentatively scheduled for release in Fall 2025. During this time, the City encourages residents and concerned community members to continue to voice their opposition to the proposed project directly to the CEC by filling out a comment form on the Commission’s website. Once the draft Environmental Impact Report is published, the CEC will host a public meeting in the local area. A draft timeline of the 270-day State Review Process is illustrated below.
The City of Laguna Niguel will continue to provide updates on the status of the proposed BESS project in the coming months. Additional information about the proposed project and the State's review process can be found on the City’s dedicated webpage at cityoflagunaniguel.org/bess.
Adoption of the City’s First-Ever Biennial Budget for Fiscal Years 2025-27
On June 3, 2025, the City Council unanimously adopted the Fiscal Years 2025-2027 Operating and Capital Improvement Budget, marking the City’s first-ever biennial budget. This important step aligns with the City’s Strategic Plan and is designed to increase operational efficiencies while further enhancing long-term financial planning.
The adopted budgets for Fiscal Years 2025-2026 and 2026-2027 are operationally balanced and avoid taking on any debt, adhering to the City’s long-standing fiscal policy. The FY 2025-2026 budget totals $80.9 million, which includes $24.8 million for capital projects. The FY 2026-2027 budget totals $82.4 million, with $25 million allocated to capital projects. This two-year budget ensures continued delivery of City services while placing a strong emphasis on maintaining and improving the City’s infrastructure. Most importantly, this budget demonstrates the City’s ongoing commitment to responsible financial management, proactive planning, and future preparedness, all while continuing to provide exceptional services to the community.
For more information on the City's Adopted Fiscal Years 2025-2027 Operating and Capital Improvement Budget, please visit cityoflagunaniguel.org/budget. A ‘Budget in Brief’ pocket guide is also available on the City website.
Help Make a Difference: Volunteer at the Sea Country Festival
This summer, residents have the opportunity to get involved and give back to the community by volunteering at the Sea Country Festival, which will be held from August 22nd to August 24th. This is the City’s biggest volunteer opportunity of the season. Your participation will help ensure that the 3-day event runs smoothly and that everyone has a safe and memorable experience. For more information and to sign up to volunteer, please visit cityoflagunaniguel.org/festival.
The City’s Draft General Plan Update is Now Available for Public Review
The City of Laguna Niguel's first General Plan was adopted in 1992. While the Housing and Land Use Elements have been updated, many of the original components have remained unchanged. As part of the 2023 Laguna Niguel Strategic Plan, a comprehensive update to the City’s General Plan was identified as a priority to ensure that the City’s planning strategies align with its evolving needs.
The Draft General Plan Update is now available for public review. The Draft General Plan Update provides an opportunity for residents to engage in the process and offer feedback on the City’s vision for its future. To view the Draft General Plan Update and learn more about this important update, please visit lagunaniguel.generalplan.org.