Morro Bay Extends Ban on Large-Scale Battery Storage Facilities

MORRO BAY, Calif. – The Morro Bay City Council unanimously voted Tuesday to extend its moratorium on grid-scale Battery Energy Storage Systems (BESS) facilities, citing public safety concerns.

The newly adopted ordinance extends the initial ban for two years, now set to expire on Jan. 28, 2027. The extension takes effect immediately, preventing new applications for large-scale battery storage projects within city limits.

Texas-based Vistra Corp., an energy company, applied in 2020 to build a 600-megawatt battery storage facility at the retired Morro Bay Power Plant site. The company also owns and operates the Moss Landing battery facility in Monterey County, which caught fire on Jan. 16 and reignited last week.

Morro Bay Community Development Director Airlin Singewald said the Moss Landing fires have raised concerns about potential fire and explosion risks. He noted that the city currently lacks land-use regulations for BESS projects, making the urgency ordinance extension necessary.

“The city does not currently have land-use regulations for grid-scale battery projects,” Singewald said during the council meeting. “This extension gives us time to research and develop appropriate policies to address safety concerns while ensuring responsible energy infrastructure planning.”

Under California law, urgency ordinances may be extended for up to two years. With this extension, Morro Bay joins several other municipalities, including Solano County, the cities of Vacaville and San Juan Capistrano, and Orange County, in temporarily halting BESS projects while assessing long-term regulatory frameworks.

The council also discussed Assembly Bill 205, a state law allowing the California Energy Commission (CEC) to override local zoning laws for certain energy-related projects. Currently, eight battery storage applications are under state review, but none have been approved through the CEC process.

While the moratorium is a temporary measure, city officials stressed the need for a permanent regulatory approach. The council is considering two primary options: a complete ban on BESS facilities within city limits or a regulatory framework with strict zoning, safety, and permitting requirements.

City officials plan to use the two-year extension to research best practices, engage the community, and evaluate the feasibility of BESS projects in Morro Bay.