Proposed Battery Energy Storage System Project (City of San Juan Capistrano)

CURRENT STATUS: On December 22, 2025, the City received notification that ENGIE North America is pausing the Compass Battery Energy Storage System (BESS) Project application with the California Energy Commission. The City will continue to monitor the application and provide updates on the project's status.

Engie's letter to the CEC is available here.

Project Overview

A battery energy storage system (BESS) facility collects energy from the grid, stores it, and then discharges it to provide electricity, typically at times of high demand. Compass Energy Storage LLC proposes to construct, own, and operate an approximately 250-megawatt (MW) BESS  facility in the City of San Juan Capistrano. The approximately 13-acre project site is located within the northern portion of San Juan Capistrano, adjacent to Camino Capistrano and Interstate-5 to the east. The project would connect to the existing San Diego Gas & Electric (SDG&E) electric transmission system to transfer power to and from the proposed project. Electric energy would be transferred from the existing power grid to the project batteries for storage and from the project batteries to the power grid when additional electricity is needed. The City of Laguna Niguel is opposing this project due to multiple public safety concerns.

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California Energy Commission Opt-In Certification Review

On April 18, 2024, the California Energy Commission (CEC) notified the City of San Juan Capistrano of its receipt of an Opt-in Application for the Compass Energy Storage Project. The State of California's Opt-in Certification Program is a streamlined application process in which the Commission reviews the project proposal and can require permitting of the proposed BESS facility, bypassing local land use requirements. 

On April 30, 2025, the CEC deemed the Compass Energy Storage project application complete. The CEC is now required to approve or deny the proposed project within 270 days (January 25, 2026) or as soon as practicable thereafter. 

City of Laguna Niguel's Opposition to the Proposed Project

The City of Laguna Niguel is opposing this project and is in communication with the City of San Juan Capistrano to proactively address the proposed BESS facility. The City of Laguna Niguel is actively monitoring the project's status and taking appropriate action to preserve public safety in Laguna Niguel and surrounding communities. 

  • Following Compass Energy Storage's application submission to the CEC, the City of Laguna Niguel submitted an initial response letter to the CEC on May 17, 2024, stating the City's intent to participate in the project's Opt-in Certification Process. 
  • On May 2, 2025, the CEC released a Notice of Preparation for a Draft Environmental Impact Report. In response, on May 28, 2025, the City of Laguna Niguel submitted a Notice of Preparation Comment Letter to the CEC. The comment letter is the City's first step in opposing the proposed project as it undergoes the CEC review process. The City will continue to actively oppose the project throughout the application process.
  • On June 18, 2025, the City of Laguna Niguel submitted a letter to the CEC objecting to Engie's request to modify the Compass Energy Storage Project.

Project Concerns

The proposed BESS location is surrounded by vegetation and steep terrain, approximately 1,500 feet from Laguna Niguel homes, and is in close proximity to a high fire severity zone, which could easily lead to the widespread destruction of homes. In addition to the severe fire threat, the proposed BESS facility poses several additional public safety concerns, including:

  • Public Health: Lithium batteries emit toxic gases within seconds of igniting, leading to air pollution and public health risks. If first responders quickly extinguish a lithium battery fire, they would be exposed to hazardous, toxic gases that can cause severe and debilitating health impacts. If the fire is not readily extinguished, the toxic gases emitted would generate a public health risk for the surrounding communities. 
  • Railroad Safety: Sole access to the proposed project site is limited to the geometrically constrained Rancho Capistrano public railroad crossing. The railroad right-of-way is active, with passenger rail service (LOSSAN and Amtrak) and freight operators (BNSF Railway) utilizing this railroad line throughout the day. The construction of the BESS facility would require many large construction equipment and maintenance trucks to cross the Rancho Capistrano crossing. Construction vehicles and equipment may not appropriately fit the geometrics of the crossing, as it was designed, posing a safety risk to the public and the operating railroads.
  • Environmental: Any water or fire extinguishing compounds used to combat the fire will become easily contaminated with heavy metals and absorbed into the region’s soil, adversely impacting the local ecosystem.
  • Water Quality: The project’s proximity to the Oso and Arroyo Creek waterbeds further exacerbates potential water quality issues, contaminating the San Juan Creek Watershed, which flows into the Pacific Ocean just a few miles away. 
  • Erosion: The proposed project site is immediately adjacent to an unimproved area of Oso Creek that experiences high-velocity and high-volume flows near an active Railroad.

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Community Participation

The CEC is currently preparing a draft Environmental Impact Report, scheduled for publication in Fall 2025. Following the publication of the draft Environmental Impact Report, a comment period will be held, and the CEC will conduct at least one public workshop in the project area to receive public comments. 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. 

Template Letter

The City of Laguna Niguel has drafted a template letter to assist residents in expressing their concerns to the California Energy Commission, and it is available for download: Template Letter.

Public participation questions regarding the California Energy Commission review process can be directed to publicadvisor@energy.ca.gov or by calling (916) 957-7910. 

Frequently Asked Questions

Additional Resources