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PL25-0085 (Special Conditional Use Permit), PL25-0086 (Site Approval)
and Development Agreement
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LOCATION MAP
PROJECT NO.: PL25-0085 (Special Conditional Use Permit), PL25-0086 (Site Approval) and Development Agreement
APPLICANT: Dirac Project LLC
REQUEST: A request for approval to construct and operate a 400-megawatt (MW) battery energy storage system (BESS) facility and enter into a Development Agreement for the project on a 13.89-acre property in the General Industrial (M2) zoning district.
LOCATION: 13925 Benson Avenue, 13822 Oaks Avenue and 13910 Oaks Avenue (APNs: 1021-121-05, 1021-211-02, and 1021-211-05)
RECOMMENDATION
recommendation
(1) Adopt Planning Commission Resolution No. PC2026-016, recommending the City Council adopt an ordinance to approve a Development Agreement with Dirac Project LLC; and (2) Adopt Planning Commission Resolution No. PC2026-019, approving PL25-0085 (Special Conditional Use Permit) and PL25-0086 (Site Approval), based upon the findings and subject to the departmental conditions of approval.
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SURROUNDING ZONING AND LAND USE:
|
|
Existing Land Use |
General Plan |
Zoning District |
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Project Site - |
Industrial |
General Industrial (GI) |
General Industrial (M2) |
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North - |
Industrial |
General Industrial (GI) |
General Industrial (M2) |
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East - |
Industrial |
General Industrial (GI) |
General Industrial (M2) |
|
South - |
Southern California Edison Chino Substation |
General Industrial (GI) |
General Industrial (M2) |
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West - |
Industrial |
General Industrial (GI) |
General Industrial (M2) |
BACKGROUND
California’s electrical grid has experienced increasing strain in recent years due to extreme heat events, population growth and rising energy demand. Periods of high demand, particularly during heat waves, have heightened the risk of power shortages and rolling blackouts. At the same time, the State is working toward maintaining a reliable utility grid and capacity that supports local infrastructure and services to the regional grid, including Chino residential and business customers. Battery energy storage systems (BESS) help address this need by storing energy during periods of low demand and delivering it during peak demand. Dirac Project LLC, (the “Applicant”) is proposing the construction and operation of a 400-megawatt (MW) BESS facility, an on-site substation, and a 230-kilovolt (kV) gen-tie transmission line on a 13.89-acre property located along Oaks Avenue and Benson Avenue, north of the existing Southern California Edison (SCE) substation. The project site is currently developed with three industrial buildings which will be demolished as part of the project. The proposed project would provide additional energy storage capacity to support the regional grid, improve reliability, reduce reliance on traditional power plants, and enhance reliability during periods of high energy demand.
ISSUES/ANALYSIS
Site Plan
Access to the project site would be accessible from one driveway off Oaks Avenue and one driveway off Benson Avenue. Internal circulation is provided by 26-foot-wide access roads throughout the site. The project includes approximately 684 BESS enclosures, which will house the battery packs, and 86 medium voltage transformers (MVTs) distributed across the site. These quantities may be refined during final building permit design phase. Additional ancillary improvements include an auxiliary fire hydrant system, stormwater detention facilities, a perimeter block wall, landscaping, containers for storing spare parts and equipment, and an operational and maintenance building. The storage containers for spare parts and equipment are proposed along the southern property line. The 1,200 square-foot operation and maintenance building, along with 4 parking spaces, is located near the center of the site toward the northern property line. Although only 4 parking spaces are provided on-site, work trucks will generally be parked next to the equipment being serviced and the parking provided is adequate. In addition, an on-site substation is proposed at the southeastern portion of the project site.
Landscaping and Walls
The project has a landscape coverage of 12.9%, which exceeds the minimum landscape coverage requirement of 10%. Drought tolerant landscaping comprised of eight different tree species, shrubs and groundcover are provided within a 49-foot-wide landscape frontage along Benson Avenue and a 54-foot-wide landscape frontage along Oaks Avenue. Street trees will be planted throughout the development and extend beyond the project boundary along the west side of Oaks Avenue, providing a continuous connection to the existing sidewalk to the south.
Many existing on-site trees are proposed to be removed as part of the construction project. An arborist report was submitted on August 28, 2026, identifying a total of 84 trees. Only 12 of the 84 trees are proposed to be protected in place, including five oak trees along Oaks Avenue. A slight jog in the sidewalk is proposed along Oaks Avenue to preserve the five existing oak trees.
A 10-foot-high decorative block wall with 24-inch square decorative pilasters spaced every 100 feet will be installed in areas visible from public view. In areas not visible from public view, a 10-foot-high block wall will be installed to enclose the project site.
Special Conditional Use Permit
The proposed BESS facility is classified as major utility per the Zoning Code, which requires a Special Conditional Use Permit (SCUP) in the M2 zoning district, according to Chino Municipal Code Section 20.07.030. The facility is designed to receive and deliver energy 24 hours a day, 365 days a year. Electrical energy would be transferred from the existing regional power grid to the project for storage and from the project to the grid when additional electricity is needed. The project would provide additional capacity for the grid by storing energy during periods of low demand and delivering energy during periods of peak demand. The facility would be staffed by 4 to 7 full-time employees on-site Monday through Friday from 7:00 a.m. to 4 p.m., and on weekends and holidays as needed. In addition, qualified technicians will periodically inspect the facility and perform maintenance to ensure safe and reliable operations.
Battery Energy Storage System (BESS) Operations
The proposed project would utilize a modular, containerized BESS consisting of free-standing enclosures approximately 10 feet in height, 20 feet in length, and 8 feet in width. Each enclosure would contain battery packs mounted on racks, a battery management system (BMS), fire detection systems, a power conversion system (PCS), and associated electrical equipment within a specialized, steel-framed, non-occupiable container. The system would comply with all applicable development and safety regulations, including the City’s Zoning Code, California Building Code, and California Fire Code.
Each BESS enclosure includes a PCS, which manages the flow of electricity between the regional power grid and the battery storage system. In simple terms, the PCS converts electricity so it can be stored in the batteries and then converted back when it is needed. When electricity is stored, the PCS converts it from alternating current (AC) to direct current (DC). When electricity is discharged back to the grid, the PCS converts it from DC to AC so it can be used by homes and businesses. The PCS units are fully enclosed, self-contained systems that operate automatically without on-site staff. They are monitored and controlled remotely and include shutoff controls for emergencies or maintenance.
Medium Voltage Transformers (MVTs) are used to adjust the voltage of electricity within the project site so it can be efficiently transmitted between equipment. Specifically, the MVTs convert electricity from the PCS to a medium voltage level, which allows it to move more efficiently through the site’s electrical collection system. All electrical equipment associated with the MVTs would be enclosed within its own separate enclosure to ensure protection from environmental conditions and safe operations.
The on-site substation serves as the primary connection point between the BESS and the regional power grid. Its primary function is to adjust the voltage of electricity so it can safely move between the grid and the batteries. The substation includes various steel support structures and electrical equipment necessary for operation, including an H-frame, turning structure and riser pole, all of which support the 230-kV transmission line. The H-frame is approximately 65 feet tall and the turning structure is approximately 105 feet tall, both setback 135 feet from Oaks Avenue. The riser pole is approximately 90 feet tall and setback 60 feet from Oaks Avenue. Additional equipment is proposed with heights ranging from approximately 22 feet to 39 feet. A control building is also proposed as part of the substation, which would house equipment used to monitor and operate the system, measure energy use, and communicate with the electrical utility and grid operator. The facility is operated remotely, with on-site equipment available for monitoring and emergency shutoff if needed.
Fire Detection and Protection System
The project includes multiple fire protection features designed to detect, prevent, and respond to potential fire incidents. Fire detection systems would be installed throughout the site and within each battery enclosure. Each enclosure would be constructed to meet California Fire Code requirements and include built-in safety systems.
Each battery enclosure is equipped with a battery management system (BMS) that continuously monitors the condition of the battery cells and operates 24 hours a day. The system can detect abnormal conditions and automatically shut down the affected unit to reduce potential hazards. Each enclosure also includes a fire alarm control panel that identifies the specific unit involved and notifies first responders. All battery enclosures would be tested and certified by Underwriters Laboratories (UL) to meet strict safety standards for battery systems, fire protection and system controls. Each enclosure is designed to prevent a fire from spreading to adjacent units. As part of the certification process, the enclosures undergo rigorous testing, including fire testing, to ensure safety performance
Chino Valley Fire District (CVFD) has reviewed the project and has indicated no concerns with the requested SCUP, as conditioned. The CVFD has further stated that the project will be designed, installed, operated, and maintained in accordance with all applicable state and local regulations. In addition, the applicant is required to submit fire protection and emergency access plans to the CVFD for review and approval.
Development Agreement
The applicant has worked with City staff to enter into a Development Agreement (DA) with the City for certain development rights and timing for the project. The City has agreed to make reasonable efforts to issue demolition permits for the existing buildings on the property by July 22, 2026, issue the grading permit by September 1, 2026, and issue building permits by December 1, 2026. In exchange, the City will receive a community benefit for meeting these timing requirements. Specifically, the Applicant will provide a Community Benefit Payment to the City of $3,000,000 within 30 days of building permit issuance for the project and $3,000,000 within 30 days of the issuance of a certificate of occupancy for the project. Additionally, the Applicant will designate the City as the point of sale for the purchase of all taxable items in connection with the development, construction and operation of the project, guaranteeing that the City receive at least $4,000,000 in combined project sales and use tax revenue and Development Impact Fees (DIF). The Applicant will also make reasonable efforts to target local residents for employment related to the construction, operation and maintenance of the project. State law and the City’s Zoning Code require that the Planning Commission hold a public hearing to consider the DA and then make a recommendation to the City Council regarding whether the provisions of the agreement are consistent with the General Plan. The City Council is responsible for final approval of the DA.
Public Outreach
The applicant conducted outreach to properties within approximately two-thirds of a mile of the project site, generally bounded by Benson Avenue, Mountain Avenue, Schaefer Avenue, and Edison Avenue. Between June 3, 2026, and June 5, 2026, project representatives canvassed the area, knocking on 812 residences and speaking directly with 190 households. Approximately 75 invitation flyers for a neighborhood meeting were distributed. Additional interested individuals were directed to the Chino Valley Chamber of Commerce website for event information. The Chamber also supported outreach efforts by notifying its 777 registered members and publishing an advertisement in the Chino Champion a week prior to the event.
The applicant hosted a neighborhood meeting on June 8, 2026, at the Chino Valley Chamber of Commerce in an open house format. The meeting was structured with informational stations, each displaying project materials, where attendees could ask questions and provide comments directly to project representatives and technical experts. Approximately 20 people attended the meeting, including an estimated three to four nearby residents, with the remaining attendees consisting primarily of Chamber members. Attendees asked questions regarding project operations, the facility’s role in supporting the local power grid, and potential environmental impacts. Fire safety was a primary topic of discussion, given recent incidents at industrial facilities in Southern California. A third-party fire safety expert was present to address these concerns and explained the differences between the proposed project’s safety features and design standards and those of older battery storage technologies.
Public Noticing
A 10-day notice was mailed to all property owners within a 300-foot radius of the project site. In addition, a notice was published in the Chino Champion on July 4, 2026. In response to the public notice, no comments have been received. The notice meets legal noticing requirements.
ENVIRONMENTAL REVIEW
The proposed project has been determined to be within the scope of the previously certified 2045 General Plan Update Environmental Impact Report (EIR) (State Clearinghouse No. 202409083), adopted on September 2, 2025. The EIR adequately describes the environmental effects of the proposed project for the purposes of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15183. The proposed project is consistent with the land use designation, and applicable policies established by the City’s General Plan, and underlying zoning, all of which were evaluated in the certified EIR. Pursuant to Section 15183(b), a focused evaluation of the development was conducted and the analysis concluded that the proposed project would not result in any new or more severe significant environmental impacts beyond those identified in the certified General Plan EIR. The project is also subject to uniformly applicable development policies and mitigation measures identified in the 2045 General Plan Update EIR, which would reduce potential impacts to less than significant levels. Accordingly, pursuant to CEQA Guidelines Section 15183, no additional environmental review is required.
Attachments: Resolution PC 2026-016
Resolution PC 2026-019
Plans