City of Santa Clara - File #: 23-115

• File #: 23-115
• Version: 1
• Type: Consent Calendar
• Status: Agenda Ready
• File created: 1/17/2023
• In control: City Council and Authorities Concurrent
• On agenda: 8/29/2023
• Final action: 8/29/2023
• Title: Action on a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Silicon Valley Power Kifer Battery Energy Storage System Project and Action to Delegate Authority to the City Manager to Negotiate and Execute an Interconnection Agreement with Kifer Energy Storage, LLC

Date	Ver.	Action By	Action	Result
8/29/2023	1	City Council and Authorities Concurrent	Approved	Pass

REPORT TO COUNCIL
SUBJECT
Title
Action on a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Silicon Valley Power Kifer Battery Energy Storage System Project and Action to Delegate Authority to the City Manager to Negotiate and Execute an Interconnection Agreement with Kifer Energy Storage, LLC

Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure

BACKGROUND
On February 7, 2023, the City Council authorized the City Manager to complete negotiations, approve and execute an Energy Storage Agreement (ESA) and Lease Agreement (Lease) with Kifer Energy Storage, LLC, for the Kifer Battery Energy Storage System Project (BESS Project). The BESS Project is an up to 50-megawatt battery energy storage system (BESS) to increase the Silicon Valley Power's (SVP) system reliability. The BESS Project will occupy approximately 53,000 square feet within a larger parcel located at 3025 Raymond Street (Project Site) which is owned by the City of Santa Clara and is adjacent to the existing Kifer Receiving Station. The scope of the BESS Project also includes SVP designing and constructing the transmission line extension from the existing 60 KV Ken-Oaks Line to a new Space Park Junction Substation.

DISCUSSION
At the time of its approval of the ESA and Lease, the City Council did not complete the environmental review as those approvals did not constitute an approval of a "Project" under the California Environmental Quality Act (CEQA). First, the City Council did not approve the Interconnection Agreement for Generating or Storage Facilities (Interconnection Agreement) with Kifer Energy Storage, LLC. A current draft of the Interconnection Agreement is attached; however, its terms have not been finalized as additional technical provisions must still be included within the agreement. Without the Interconnection Agreement, the BESS Project cannot provide energy storage services to the City. Further, the Ci...