Agenda Item AGENDA STAFF REPORT ASR Control 25-000524
MEETING DATE:	11/04/25
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	Justin Kirk (714) 667-1627
	Cindy Salazar (714) 667-8870

Subject: Adopt Ordinance for Battery Energy Storage Systems

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution(s) and Ordinance(s)

Public Hearing

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

No

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No
Levine Act Review Completed: N/A

Prior Board Action: 3/11/2025 #S33E, 1/28/2025 #S32A, 10/8/2024 #S14D

RECOMMENDED ACTION(S):

1.	Find that the proposed project is exempt from the provisions of the CEQA, Common Sense Exemption, pursuant to CEQA Guidelines Section 15061(b)(3).
2.	Read the Title of the Ordinance.
3.	Order further reading of the Ordinance be waived.
4.	Conduct public hearing.
5.	Consider the matter and adopt Resolution adopting Zoning Code Amendment CA 24-03 – Battery Energy Storage System Facilities Ordinance.

SUMMARY:

Adoption of Zoning Code Amendment CA 24-03 – Battery Energy Storage System Facilities Ordinance will ensure established guidelines and standards for Battery Energy Storage System facilities to support health and safety in the unincorporated areas of Orange County.

BACKGROUND INFORMATION:

In the last decade, Battery Energy Storage System (BESS) technology has become increasingly common as a way to store energy for use during outages, emergencies and periods of high electricity demand. BESS technology is widely adopted statewide because it helps bridge temporary gaps in renewable energy supply and supports the grid during peak and evening usage hours. While BESS technology provides many benefits to communities, the growing presence of BESS facilities has also raised concerns related to public safety, fire hazards and public health, particularly due to the use of lithium-ion batteries in many systems. The establishment of regulations, guidelines and standards for the location, installation and use of BESS facilities is essential to protect public health, safety and welfare, ensure compatibility with surrounding land uses and mitigate environmental impacts.

On October 8, 2024, the Board of Supervisors (Board) directed staff to research and draft an ordinance establishing development guidelines and standards for BESS facilities. On January 28, 2025, the Board adopted Interim Urgency Ordinance 25-002, which placed a moratorium on the issuance of permits for BESS facilities, except for those exempt from regulation under state law, including residential and non-residential energy storage systems specified by the California Code of Regulations, Title 24, Part 6. On March 11, 2025, the Board extended the Interim Urgency Ordinance through January 26, 2026. To date, the County of Orange (County) has not issued permits for any BESS facilities.

Since March 2025, OC Public Works has conducted stakeholder engagement, researched and drafted proposed BESS facility regulations. Key efforts include:

a.	Coordination with key stakeholders, including the Orange County Fire Authority (OCFA); utility providers such as Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E); BESS technology manufacturers and developers; and labor unions and trade organizations. OCFA will continue to serve as an integral reviewing agency for all future BESS facility project applications submitted to the County.
b.	Review and analysis of BESS regulations adopted by other local jurisdictions, with comparison made to the County’s proposed development standards and guidelines.
c.	Monitoring of legislative activity related to BESS facilities, to ensure alignment with current and emerging requirements.
d.	Public outreach efforts, including soliciting feedback through the County BESS Project website and conducting two public study sessions during Planning Commission meetings.

Through this process, OC Public Works Development Services and County Counsel have developed a proposed BESS Facilities Ordinance (Ordinance), adding section 7-9-122 and amending section 7-9-134.6 of the Codified Ordinance of the County, which includes the following key components:

a.	Required Discretionary Approval: All BESS facilities in the unincorporated areas of Orange County will require a Use Permit approved by the Planning Commission. Exceptions include residential and non-residential BESS facilities regulated under California Energy Code, Title 24, Part 6 or those obtaining permits directly through the California Energy Commission.
b.	Siting Limitations: BESS facilities will not be permitted in Very High Fire Hazard Severity Zones. This restriction is more stringent than the current California Fire Code. The proposed Ordinance may impose requirements that are more restrictive, but not less restrictive, than those in the California Fire Code.
c.	Regulatory Consistency: To maintain consistency with existing building safety requirements and to ensure the County’s ability to adapt to future code updates with no gaps in compliance, the proposed Ordinance requires all BESS facilities to meet all appliable standards of the adopted California Building and Safety Codes and the adopted California Fire Code in effect at the time an application is submitted. This requirement ensures that any new state-level regulations, such as those proposed through Senate Bill 283 (Attachment C), will be enforceable through County compliance with state-adopted codes. The proposed Ordinance is also aligned with similar efforts in nearby jurisdictions.
d.	Development Standards and Buffers: To protect the health, welfare, safety and quality of life, BESS facilities will be required to maintain a minimum 100-foot setback from residential uses and community buildings, when measured from the property line. Applicants may request a reduction to this buffer by providing justification. This requirement is more restrictive than the 10-foot separation specified in the California Fire Code.
e.	Ongoing Coordination with OCFA: Approval of a Use Permit will require review and approval by OCFA, including the submission and approval of a Hazard Mitigation Analysis and Emergency Action and Response Plan.
f.	Stewardship: Each BESS facility application must include a Decommissioning Plan and associated Financial Assurance to ensure sufficient funding is available for safe decommissioning at the end of the facility’s useful life.
g.	Benefit to the Community: No Use Permit for a BESS facility will be approved unless findings can be made that demonstrate economic and community benefits, as required under Public Resources Code sections 25545.9 and 25545.10 (Attachment D).

On September 10, 2025, the Planning Commission (PC) held a public hearing and considered the proposed Zoning Code Amendment and voted to adopt PC Resolution No. 25-05 (Attachment E), which recommends that the Board adopt the proposed Ordinance.

Compliance with CEQA: The proposed Zoning Code Amendment CA 24-03 is exempt (Common Sense Exemption) from the provisions of CEQA pursuant to CEQA Guidelines Section 15061 (b) (3) since there is no possibility that the addition of regulations for BESS Facilities to the Zoning Code, may have a significant effect on the environment. Proposed future BESS facilities will be reviewed for CEQA compliance at the time a Use Permit application is submitted to determine the appropriate level of environmental review.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Resolution
Attachment B - Ordinance
Attachment C - Senate Bill 283 (Amended in Assembly July 17, 2025)
Attachment D - Public Resources Code sections 25545.9 and 25545.10
Attachment E - Planning Commission Resolution No. 25-05
Attachment F - Proposed Zoning Code Amendment CA 24-03 – Battery Energy Storage System Facilities Ordinance Redline