New Morro Bay ordinance set to block battery storage facility
January 29, 2025
By KAREN VELIE
The Morro Bay City Council on Tuesday voted 5-0 for an urgency ordinance on a potential battery energy storage project. The urgency ordinance temporarily halts the project.
The City Council also directed staff to return with another ordinance next month, with a goal of extending the urgency ordinance to Jan. 28, 2027. During that time, the council can work on a permanent ordinance to block the controversial project.
Vistra, a Texas-based energy company, has plans to construct and operate a 600-megawatt battery storage facility on approximately 24 acres of a roughly 70-acre site. However, residents, concerned the facility will endanger the public while negatively impacting tourism and the fishing industry, pushed a local ballot initiative to stop Morro Bay from permitting the project.
Morro Bay, residents largely supported the measure requiring voter approval for changes to some zoning on the waterfront. Vistra Energy, the company behind a proposed facility, decided to seek state approval while bypassing the city’s consideration shortly before the November election.
Even so, a large amount of the funding for the battery storage facility is slated to be provided through the Inflation Reduction Act, which includes $369 billion in subsidies for renewable energy.
“The Inflation Reduction Act is anticipated to provide the opportunity to realize material benefits to Vistra with respect to its renewables and energy storage projects, as well as provide strong price support via the nuclear production tax credit for its nuclear facilities, including those acquired through the Energy Harbor transaction,” Vistra said in a first quarter 2024 press release.
With Trump in office, it is anticipated he will ask Congress to reduce or eliminate tax credits provided through the Inflation Reduction Act. Without the subsidies and tax credits, it is unlikely Vistra will move forward with its plan for battery storage in Morro Bay.
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