By Faughn Economy • Tourism 0 Comments

Stockton Metro adding flights to Denver in 2025

Things are looking up for passenger flights at Stockton Metro Airport. Allegiant Airlines will launch twice weekly service to Denver International Airport on May 14, 2025. Denver is the largest airport in the United States. It allows passengers to connect to other flights or use the airport rail line to go directly to downtown Denver. Allegiant is also expanding the number of flights to Las Vegas and Phoenix from Stockton in mid-2025. Weekly flights to Harry Reid International Airport in Vegas will increase to nine times per week. Stockton flights to Sky Harbor International Airport in Phoenix will be bumped up to three times a week.

“We are pleased to introduce this new service and provide the community with a new, convenient, and affordable non-stop travel destination,” said Richard Sokol, Director of the Stockton Metropolitan Airport.

“This is an exciting step forward in the airport’s continuing effort to bring more travel options to our region.”

And it could be just the start of increased passenger service out of Stockton. Stockton Metro’s position as the fourth major airport in the Bay Area — and regional growth that is pushing up household incomes — is drawing interest from airlines interested in possibly operating connector passenger service. San Joaquin County Supervisor Tom Patti indicated several months ago Spirit, United, and American are exploring potentially having flights in and out of Stockton. If it happens, it would be a significant development for the Northern San Joaquin Valley with 1.6 million residents and counting. Not only is the region consistently among the top four fastest growing areas in the state, but demographics are showing significant jumps in the household income of those moving into the area from west of the Altamont Pass.

Given Manteca’s northern most city limits at Roth Road and Airport Way is within four miles of the Stockton Metro terminal, whatever happens at the county owned airport will have a significant impact on Manteca. The Bay Area is served by San Francisco, and Oakland airports that are significantly more congested when it comes not just to passengers accessing them but also with the number of flights. Stockton has steadily grown its Bay Area profile in the past 20 years.

Initially, it was upwards of a dozen corporate jets being located at Stockton that were owned by big tech companies in the Silicon Valley during a time period when flight times were limited out of San Jose.

Eventually, they were able to shift back to San Jose.

Then in 2016, Amazon started its daily large cargo jet movements to Stockton. In 2020, the online retailer expanded their footprint at Stockton to handle up to eight large cargo jets a day. Amazon operates fulfilment centers near the airport including three in Tracy, two in Stockton, and one in Manteca on Airport Way. There are also Amazon fulfillment centers in Patterson and Turlock.

Before the pandemic, United operated connector flights from Stockton to Los Angeles.

“This is very exciting news for our County and region,” said Miguel Villapudua, Chair of the San Joaquin County Board of Supervisors.

“Between the Board’s $26 million investment earlier this year and Airport Director Sokol’s tireless work to realize the potential of SCK, this is only the beginning of great things to come.”

https://www.mantecabulletin.com/news/local-news/stockton-metro-adding-flights-to-denver-in-2025/

By Faughn Economy 0 Comments

City of Modesto Bond Rating Upgrades: Signals Financial Strength and Stability

 A stable outlook, and a bond rating upgrade, was assigned to the City of Modesto which reflects the City’s commitment to strong financial management principles.  Moody’s is one of the United States big three credit rating agencies (the other two being S&P and Fitch) for municipal government finance that defines credit ratings for the government bonds.

Moody’s recently conducted a bond credit rating review for the Water bonds and the Lease Revenue bonds (funded by the General Fund and Successor Redevelopment Agency) which resulted in the City receiving an upgrade to our current bond ratings. For the Lease Revenue bonds, the City received a bond rating upgrade from A1 to Aa3; the first upgrade since 2018.  For the Water bonds the City received a rating upgrade from an Aa3 to Aa2; this bond rating has not been upgraded since 2008.

The Lease Revenue Bonds upgrade is evaluated based on the financial review of the City’s General Fund which factors in the recent voter approved Measure H 1% local sales tax.  The City’s substantial increase in its reserves both from the General Fund Emergency Reserves and the newly received Measure H fund reserves demonstrates a strong commitment to a healthy financial foundation.  The City was able to show financial stability and economic growth despite rising inflation and ongoing supply chain challenges impacting both the Water Fund and General Fund.

The Water bonds upgrade was based on the results of the strong debt coverage ratio maintained for the Water Fund and healthy fund reserves.  This upgrade will further improve the City’s bond credit rating score with the benefit of obtaining better interest rates for the future financing needs of the City.

This accomplishment was made possible by the dedicated actions of the Mayor and the City Council to improve our financial standing through the years despite many difficult decisions. Prior to the passing of Measure H, this Council was faced with heavy implications of lost revenue and increasing costs.  Their commitment never wavered in ensuring the financial stability of the City for the future. The City of Modesto is now seeing the positive impacts of some difficult decisions that were made and that have paved the way for financial flexibility for years to come.

https://www.modestogov.com/CivicAlerts.aspx?AID=1561

By Faughn Distribution • Economy • Renewable Energy 0 Comments

Port of Stockton gets $110 million grant for zero-emissions operations

The Port of Stockton has been awarded a $110.5 million grant to reduce air pollution in what a local congressman called the largest federal investment in its history. U.S. Rep. Josh Harder (D-Tracy) said the funds will help make Stockton the first small port in the nation with zero-emissions terminal operations.

The grant is intended to be used for electric cargo handling equipment, solar power generation and battery storage and to provide shore power to ships when they tie up at wharfs, the U.S. Environmental Protection Agency said Tuesday. The grant also will go toward training workers in maintaining the new high-tech equipment.

“These funds will significantly decrease freight-related emissions in the Central Valley by transitioning more than 90% of our cargo-handling equipment to zero emissions,” Stockton Port Director Kirk DeJesus said in a statement.

The grant will help burnish the Port of Stockton’s environmental efforts, which sometimes draw the ire of conservationists. In September, for instance, several environmental groups sued the port alleging a planned project to produce hydrogen from fossil methane will create air pollution and greenhouse gases that lead to climate change.

Despite environmental concerns, the Port of Stockton, however, is a regional economic powerhouse. As the fourth busiest port in the state, the complex accounts for more than 10,000 jobs, officials say. Stockton’s grant is among 55 to be distributed at ports around the nation. The investments, totaling nearly $3 billion, were funded under the Biden administration’s Inflation Reduction Act.

Harder said he worked hard to bring the grant to Stockton.

“This means jobs, cutting-edge technology and better air quality for our kids,” said Harder, a Stockton-based Democrat and member of the House Appropriations Committee.

Other California ports receiving grants included Redwood City, Oakland, San Francisco, Oxnard, Los Angeles and San Diego. One goal for the grants is to help reduce pollution at ports that have homes nearby, which is certainly the case in Stockton. Several neighborhoods are situated on the north side of the San Joaquin River across from Rough and Ready Island, home to the Port of Stockton.

“While ports, of course, serve an essential role for moving goods, the costs that they bring in terms of pollution and impacts on overburdened communities must be confronted,” EPA Pacific Southwest Regional Administrator Martha Guzman said in a statement.

Replacing diesel-powered freight equipment with zero-emission technology will “reduce air pollution, improve health outcomes in nearby communities, and advance the campaign to tackle climate change,” Guzman said.

By Faughn Economy 0 Comments

Annexation of Virginia Smith Trust Land is Finalized

The City of Merced is pleased to announce that the Virginia Smith Trust (VST) annexation has been officially recorded and is now complete. This marks a significant step forward in the city’s long-term growth plans, as 650 acres of land just south of UC Merced have now been annexed.

The Local Agency Formation Commission (LAFCo) gave its final approval to the annexation, following a unanimous vote by the Merced City Council earlier this year. The VST property will be developed into an exciting new part of our community, transforming into a vibrant area with new homes, apartments, retail and commercial spaces, parks, and essential transportation routes.

“This has been a multi-year effort involving collaboration with multiple agencies,” said City Manager Scott McBride. “We received notice that the VST annexation is now officially recorded. This project will help provide affordable housing and offer direct support to UC Merced. We are already seeing interest from private developers eager to work in this area.”

Now that the annexation is final, the focus shifts to processing the necessary entitlement applications for maps and permits to begin construction. The development will also create revenue that will directly support local students, as it funds scholarships from the Virginia Smith Trust. Established in 1975, the Trust has awarded nearly $7 million in scholarships to more than 3,500 Merced students. 

“The legacy of Virginia Smith and her brother Cyril will impact future generations of Merced County students,” said Merced County Superintendent of Schools, Dr. Steve Tietjen, who also serves as an advisor to the Trust. “It is now up to us to maximize the potential of this gift.”

The Virginia Smith Trust has played a key role in Merced’s development over the years. In the late 1990s, a large portion of the Trust’s land was donated for the creation of UC Merced, which has since become one of the nation’s top-ranked universities. Another section of land was preserved for environmental conservation, protecting vernal pools that provide a habitat for endangered species.

The City of Merced is thankful for the continued support of the City Council and the efforts of all those involved in making this project a reality. The VST annexation opens the door to future growth and development that will benefit both the community and UC Merced for years to come.

https://www.cityofmerced.org/Home/Components/News/News/1832/17

By Faughn Economy • Energy • Renewable Energy 0 Comments

NAS Lemoore plans lease of 425 MW solar farm and construction of data center

The US Navy is working on a lease of 920 acres of land around the Naval Air Station Lemoore base to a Massachusetts company who would construct a large 425 MW solar farm and build a data center the size of three Costcos on the base campus.

This is the third run to lease surrounding land at the base by the government to produce energy that could help protect the facility power supply and offer resiliency. Similar projects were proposed in 2015 and 2023 but no construction ever happened.

Now there is a new investor who could build this project that now includes a 600,000 square foot power-hungry data center — one of hottest commodities on Wall Street these days.

A draft environmental document (Supplemental Assessment-SEA) published in June says a new lessee — Ameresco — could sell the generated power to regional customers, including the onsite data center. In return, the lessee would provide in-kind consideration in the form of energy generation to the Navy that would allow NAS Lemoore to work toward meeting both Navy and Department of Defense energy resiliency objectives. The project would include EV charging stations, a battery storage facility or BESS, backup generation/microgrid and related infrastructure.

A data center is a facility used to house computer systems and associated components, such as servers, storage systems, networking equipment, and other hardware. It serves as a centralized location for organizations to store, process, manage, and distribute large amounts of data. Data centers are

designed to provide a controlled environment with optimal conditions for the reliable operation of the computer systems. They have redundant power

supplies, cooling systems, and backup generators to ensure uninterrupted operation. They also employ various security measures, such as access controls, surveillance systems, and fire suppression systems, to protect the valuable data and equipment.

The data center would be connected to high-speed long haul fiber optic network for receiving and transmitting data. The facility would be primarily powered by on-site solar and battery storage for most of the year and would be connected to grid power for periods of low solar energy production.

The data center would be secured by fences and gates and only accessible by authorized personnel or deliveries. Vehicles onsite would include employee

vehicles, delivery trucks and service vehicles. During operations, the project site would have 20 employees, with staffing seven days per week, 24 hours per day.

A key factor that contributes to the rapid expansion of data center construction in the U.S. is digital transformation. As more businesses undergo digital transformations, the need for robust IT infrastructure to support cloud computing, big data analytics, and online services has skyrocketed, says one analysis.

Federal incentives have promoted investments. There are no data centers in Kings or Tulare counties.

Approximate Construction Timeline

Construction of the overall project would be expected to begin in 2024, says the document, with data center operations most likely commencing in 2025. The project can be constructed in single or multiple phases that are determined by the data center customer. Data center development typically can include up to five phases of approximately 20-25 MW increments that may extend construction time through 2027.

History of lease

The document is a Supplemental Assessment because the 2016 environmental study led to a lease of lands around the base that is still in place. NAS Lemoore encompasses 18,784 acres of Navy-owned land.

On Oct. 12, 2016, approximately 930 acres (i.e., Project Site) were leased to Liberty CO LLC for a term of 37 years (expiring Oct. 31, 2053). The existing lease with Liberty CO LLC was then transferred to Bright Canyon Energy on Feb. 14, 2019. In January 2024, Bright Canyon was acquired by Ameresco, and thus, as of 2024, Ameresco is now the current lessee of the undeveloped land.

Under the Navy’s 2024 Proposed Action, the existing lease would be modified to allow the lessee to construct and operate additional resilient energy systems within the leased 930-acre Project Site.

The existing lease allows the lessee to construct and operate up to a 125 MW solar PV system and associated infrastructure. The changes proposed as part of the 2024 Proposed Action would include the construction and operation of an additional 300 MW of solar PV systems (for a total of up to 425 MW) and an option to construct a data center, EV charging stations, BESS, backup generation/microgrid, and related infrastructure.

Ameresco, Inc. completed the acquisition of Clean Energy Asset from Bright Canyon Energy for $76.8 million, says their website.

Ameresco develops, owns and operates renewable-energy projects across the United States, Canada and Europe. In California, its projects include battery storage installations, including a $1.2 billion, 537.5-MW project that was delayed due to COVID-19 lockdowns and resulted in the company declaring a force majeure in April 2022. Ameresco was contracted to construct the battery storage systems for SCE at the utility’s substations in Ventura and the Los Angeles area.

The environmental document says once construction starts, it will employ about 400 construction workers.

A final SEA is expected before work begins.

https://hanfordsentinel.com/business/energy/nas-lemoore-plans-lease-of-425-mw-solar-farm-and-construction-of-data-center-john/article_daaafe54-90af-11ef-a013-3f506e5c207b.html

By Faughn Economy 0 Comments

INVESTING IN AMERICA: Merced County wins funds for Inland Port

WASHINGTON – The U.S. Department of Transportation (DOT) is awarding $49.46 million in grants to 45 local, regional, and state public entities through the Innovative Finance and Asset Concession Grant Program (IFACGP), made possible by President Biden’s Bipartisan Infrastructure Law. More than 70 percent of the projects include transit-oriented development (TOD) and downtown redevelopment initiatives, including projects that support the Biden-Harris Administration’s efforts to boost housing supply and lower costs.

“Through the bipartisan infrastructure package, the Biden-Harris Administration is helping cities, states and transit agencies develop projects on underused properties—including tens of thousands of housing units over the next decade,” said U.S. Transportation Secretary Pete Buttigieg. “The grants we’re announcing today will allow communities to partner with the private sector, develop and deliver transit-oriented projects on public assets, and get more housing and other public benefits and services completed more quickly.”

The program makes $100 million available over five years to help public entities scan existing assets to unlock value from them and explore innovative financing and delivery opportunities through, e.g., the Build America Bureau’s Transportation Infrastructure Finance and Innovation Act (TIFIA) low-cost loan program.  Awards can be up to $2 million, with no match required for the first million dollars.

“Today’s announcement is what the Investing in America Agenda is all about,” said Acting Undersecretary of Transportation for Policy Christopher Coes. “Not only will this funding lead to greater access, opportunity, and economic growth through good transportation infrastructure, but it will catalyze the development of safe, affordable housing in communities across the country.

“This is a transformative program that is focused on unlocking value from underutilized assets,” said Build America Bureau Executive Director Morteza Farajian. “The goal of this innovative program is to facilitate partnerships between private and public entities to deliver community benefits in a more efficient and cost-effective manner. The selected recipients represent a wide range of projects that are good candidates for public-private partnerships.”

The Build America Bureau administers the financing program, which provides technical assistance and expert services grants. View the interactive map to learn more about the selected projects. Several examples of grant recipients include:

  • Capital Metro (CapMetro) in Austin, Texas, will use $1 million in IFACGP funding to explore an Equitable TOD pilot site. Building off their experience completing the Plaza Saltillo development, CapMetro will evaluate multiple sites and create a pipeline of future TOD opportunities.
  • Merced County, California is producing a blueprint to modernize and expand operational capacity of the Castle Commerce Center Inland Port, a 1,912-acre multi-modal freight transportation hub located less than 100 miles from the ports of Oakland and Stockton.   With $450,000 of IFACGP funds, the County will partner with expert advisors to identify financing and private sector investment opportunities.
  • The City of New Rochelle, New York, will use $1 million in IFACGP funds to scan city-owned assets to determine future TOD projects that will promote economic revitalization opportunities and reconnect disadvantaged communities.
  • Rhode Island Public Transit Authority (RIPTA) is working to reimagine its Kennedy Plaza outdoor bus hub into a modern mixed-use development that includes a new transit center, housing, and commercial development. With $2 million from IFACGP funding, and $1 million contributed by RIPTA, this $3 million study will position RIPTA to engage private sector developers to deliver the project.

The technical assistance grant recipients will use the funding to enhance their organizational capacity and advance a portfolio of assets by conducting pre-construction tasks, such as asset scans, market studies, delivery option analyses, financial modeling, and other activities considering innovative finance and delivery, including asset concessions. The expert services grant recipients will use the funding to hire advisors to analyze a specific existing asset for innovative financing and delivery opportunities, including public-private partnerships.

Today’s IFACGP awards are the latest action by the Biden-Harris Administration to explore innovative finance and delivery options for public entities, create more housing to lower costs for Americans, and support communities with technical assistance. In addition to today’s announcement:

  • Last month, DOT’s Build America Bureau released new guidance to help potential borrowers access TOD financing, including FAQs and recorded webinars.
  • Earlier this year, DOT announced funding for 112 under-resourced communities to receive hands-on assistance to secure federal infrastructure funding and then deliver on those projects.
  • Last fall, the Biden-Harris Administration announced new actions to support the conversion of high-vacancy commercial buildings to residential use through new financing and technical assistance.

The new IFACGP program joins the Rural and Tribal Assistance Pilot Program, Regional Infrastructure Accelerators Program, Thriving Communities Program, and other technical assistance opportunities at DOT that seek to ensure communities have the tools they need to access federal funding and financing for transformative infrastructure projects. Additional DOT technical assistance resources can be found on the DOT Navigator.

https://www.transportation.gov/briefing-room/investing-america-biden-harris-administration-continues-action-increase-housing

By Faughn Commercial • Economy 0 Comments

How you can support San Joaquin County small businesses, get up to $200 in rewards

There is a new way for you to support small businesses in San Joaquin County called Shop San Joaquin, where you can get up to $200 back in rewards. The rewards program, which is the result of $1 million in COVID-19 relief funding, encourages customers to shop local and support the independently owned businesses that are still dealing with the impact of the pandemic. Business that are participating have fewer than 500 employees and operated in the food-and-beverage, hospitality, or retail industries. So far, 1,625 businesses are participating.

Officials laid out this list, explaining how to participate:

  • Download the free Open Rewards: Shop Local app on Google Play or the App Store
  • Sign up
  • Go to a local restaurant or retailer listed within the app and spend $50
  • Pay for the purchase as usual
  • Upload the receipt to Shop San Joaquin — Open Rewards app (or link a credit card to automate this step)
  • Receive 100% cash back rewards in the account once the receipt is approved
  • Redeem the rewards on future purchases at eligible businesses or continue to save up the rewards.

There’s a $50 reward cap per transaction for a total of $200 in rewards per calendar year. Nicole Snyder, the deputy director for the San Joaquin County Employment and Economic Development Department, joined KCRA 3 Wednesday morning to talk about the program.

“What we really intend to do with this program is to continue the economic recovery of the retail and hospitality industries that were severely impacted by the pandemic,” she said. “It also benefits county residents by basically giving them funding to spend through a reimbursement model.”

This comes as new data from the Commerce Department shows retail spending has been holding mostly steady since the beginning of the year. Last month’s reading was better than the outright decline economists had projected.

https://www.kcra.com/article/shop-san-joaquin-rewards-small-businesses-program/61624215

By Faughn Economy 0 Comments

Stanislaus County’s $9.24 Million Investment Signals Circular Bioeconomy Momentum

On behalf of the dozens of organizations in BEAM Circular’s public-private partnership collaborative, we’re grateful for Stanislaus County’s continued commitment to unlocking the potential of the circular bioeconomy for our local community.

On Tuesday August 13, the Stanislaus County Board of Supervisors approved a cumulative $9.24 million contract with BEAM Circular to support a broad portfolio of local projects and activities that create quality jobs, strengthen the regional economy, and deliver environmental benefits. This investment by the County brings total aligned public and private funding commitments to regional circular bioeconomy development efforts to over $55 million since BEAM Circular’s launch in January 2023. This combination of local, state, federal, and private investment in our region will enable long-term impact through local innovation, sustainable industry scale-up, and workforce readiness.

The county’s investment is the result of three years of planning, research, and collaboration — beginning with the Stanislaus 2030 public-private planning initiative launched in 2021. That initiative created a shared vision for our community’s economic future, including a specific strategy for establishing our region as a global leader in the growing bioeconomy.

Over the past 18 months since BEAM Circular’s launch, we’ve received invaluable input from hundreds of community members and partners across industry, labor, education, environmental advocacy, community development, and local government to further refine that strategy. These inputs shaped the specific investment recommendations approved by Stanislaus County (detailed below).

Stanislaus County Investment Summary

The $9.24 million from Stanislaus County includes $500K previously awarded in June 2024. Adding to $760,000 previously awarded to BEAM Circular, this brings the County’s total investment of American Rescue Plan Act funding for regional bioeconomy development to $10 million, in alignment with a spending plan for Stanislaus 2030 strategy implementation approved by the County in January 2023.

The funding allocation includes:

  • $4.6 million for Cross-Cutting Initiatives that enable overall sector growth, community engagement, innovation, local capacity-building, and collaboration activities, including through BEAM Circular Initiative Leadership & Program Delivery ($2,894,889), Innovation Engine development via CBIO Collaborative ($332,611), a new BEAM Fellows Program ($250,000), and planning and design for a Circular Bioeconomy Innovation Campus that will support R&D, technology scale-up, community education, and workforce training ($1,200,000). Site selection for the Innovation Campus will begin later this year.

  • $2.2 million for Capital Connections to support local job creation, including an Anchor Firms Development Fund to support new projects that create large numbers of quality jobs ($2,000,000), and Matching Grants for Research & Commercialization Funds for local small businesses ($200,000).

  • $1.56 million for enabling Infrastructure, including Grants for Job Training Facilities & Equipment ($1,500,000) and Manufacturing Site Portfolio research and advancement ($62,500).

  • $800K for Talent strategies via a Workforce Development Fund that provides grants and technical assistance to local education and training institutions to deploy new industry-aligned programs, internships, and inclusive career training pathways ($800,000).

https://www.beamcircular.org/news-updates/stanislaus-county-investment-signals-circular-bioeconomy-momentum

By Faughn Economy • New Developments • Quality of Life 0 Comments

Construction to begin on improving Highway 99 and 120 junction

Construction will begin in August on upgrades to the junction of Highways 99 and 120 in Manteca. The $48.2 million project seeks to ease traffic between eastbound 120 and southbound 99. Many of the drivers are from Stanislaus County and points south, including commuters to the Bay Area. The work includes adding a second lane to the current connector ramp and a fourth lane on southbound 99 to about Austin Road. Austin will get a new bridge across the freeway and a new link to Atherton Drive and Woodward Avenue, key routes in south Manteca.

The project is scheduled for completion in summer 2026. It will be built by Teichert Inc. of Pleasanton on a contract with the San Joaquin Council of Governments. Construction will begin in August 2024 on a new connection between eastbound Highway 120 and southbound Highway 99 in Manteca, California. The project also involves replacing the Austin Road bridge over 99 and a new link between Austin and Moffat Boulevard. San Joaquin Council of Governments

OFFICIALS GATHER FOR GROUND-BREAKING SJCOG

oversees transportation funding for the county and its incorporated cities. It hosted a ground-breaking Wednesday, July 17, with local, state and federal leaders. SJCOG “recognized these improvements were essential to move people and goods within the region and across county borders,” Executive Director Diane Nguyen said. The new Austin Road bridge also will cross the freight tracks along 99, eliminating a safety hazard for drivers. By 2026, the tracks will be part of the expanded Altamont Corridor Express, which now takes passengers between Stockton and San Jose. The project is the first phase of an effort that eventually could involve other parts of the 99-120 junction, if funding is secured.

The second phase could cost about $28 million and open by 2033, according to the California Department of Transportation. It projects a $62 million cost and 2042 opening for the third phase. These phases would widen both 99 and 120 and improve connector ramps at the junction.

LOCAL SALES TAX HELPS FUND PROJECT

Local funding for the first phase includes the Measure K sales tax and fees on property developers. SJCOG also tapped state and federal transportation programs and federal payments to local governments amid COVID-19. The ground-breaking featured Lathrop Mayor Sonny Dhaliwal, who chairs SJCOG. “We’re bringing together our member agencies and public and private partners to build this highway-to-highway connector to serve the transportation needs of everyone who lives, works and travels in San Joaquin County,” he said.

https://www.modbee.com/news/local/article290199884.html

By Faughn Economy • Energy • New Developments 0 Comments

Hydrogen projects sprout in the Valley

Plans for using hydrogen to fight climate change are sprouting all over the San Joaquin Valley this summer. Projects are in the works in western Fresno County, in Pixley in Tulare County and in Orange Cove where SoCal Gas will blend 5% hydrogen with natural gas for retail customers reducing overall greenhouse gases.

When hydrogen is injected into a fuel cell, hydrogen generates electricity but emits only heat and harmless water vapor and has great potential to cut global carbon emissions and keep toxic pollutants out. Experts say hydrogen could make the biggest difference in sectors now mostly powered by fossil fuels — trucking, shipping and aviation.

In the westside of the Valley, the Darden Clean Energy Project would cover 9,500 acres owned by Westland Water District and include a trifecta of green technologies including a 3.1 million solar panel farm, a 1,150MW green hydrogen plant and a 4600MWE hour battery storage plant.

An electrolyzer water treatment plant would be powered by solar power capable of producing 220 tons of gaseous hydrogen per day that could be used as zero carbon transportation fuel. To bring electricity to the grid the sprawling energy farm would be connected to a 15 mile transmission line to a PG&E substation near Highway 5.

Instead of seeking approval through Fresno County, the massive project is going direct to the California Energy Commission (CEC) for final permitting under a new provision approved by the legislature in 2022 called opt-in, the first in the state to do so.

Largest in the world

The Darden Clean Energy Project, which more than rivals the largest solar battery storage combination in the world, is located in Kern County at Edwards Air Force Base and is said to be about 4,000 acres. It houses 1.9 million solar panels and generates 3287MWh for the battery storage facility. The Kern County project also does not include a hydrogen manufacturing component.

In terms of the hydrogen plant at the Darden site, the capacity at 220 tons of hydrogen a day compares to just three tons a day at the largest existing hydrogen production plant on 324 acres also in Fresno County that started up last year led by a Spanish firm.

The CEC must find that Darden has submitted a complete application and then has 270 days to approve the project, which is considered a fast-track process in order to get more battery storage in California online sooner.

Hydrogen’s flexibility as a fuel source including for transportation, industrial, and power generation sectors and its ability to be stored is helped by new tax incentives under the Inflation Reduction Act. Producing only water as a byproduct hydrogen can be injected into the natural gas distribution system managed by utilities like SoCal Gas and PG&E. Add the synergy of combining solar power generation and hydrogen manufacturing – the process is given a big boost by the power from the sun typically on-site.

Lawsuit in Tulare County

In Pixley in Tulare County, another company is proposing to build a 1.2 million square-foot 28-acre hydrogen plant that will manufacture, store and distribute pressurized liquid hydrogen fuel for trucks and include 114 acres of solar power generation. The location of the $120 million plant is at the southwest corner of Avenue 120 and Road 120 near Highway 99.

Last summer the County of Tulare determined their project was allowed by right under the CEQA common sense exemption since the property was already located in a manufacturing zone. In March 2024 a citizen group with members from Pixley filed a lawsuit objecting that the county had not properly followed CEQA rules and should require a full impact report.

Oil company wants in

Also this spring, Chevron New Energies, a division of Chevron U.S.A. Inc., announced it is developing a 5-megawatt hydrogen production project in Lost Hills.

The project aims to create lower carbon energy by utilizing solar power, land, and non-potable produced water from Chevron’s existing assets at the Lost Hills Oil Field in Kern County. This low carbon intensity electrolytic hydrogen will be produced through electrolysis, which is the process of using electricity to split water into hydrogen and oxygen.

“Hydrogen can play a vital role in our journey toward a lower carbon future,” said Austin Knight, vice president for hydrogen at Chevron New Energies.

Blending hydrogen

Use of hydrogen will hit the retail market in Orange Cove says SoCalGas.

At the direction of the California Public Utilities Commission, SoCalGas is proposing a local demonstration project that could safely blend up to 5% clean, renewable hydrogen into the natural gas system serving approximately 10,000 residents, along with commercial customers in the City of Orange Cove, in Fresno County.

SoCalGas is proposing an 18-month demonstration project that will blend clean, renewable hydrogen serving residents and businesses. This project would offer a real-world environment to better understand how clean hydrogen and natural gas can be safely delivered to customers in the future. This is part of a broader effort by California and utilities to develop a standard for safe hydrogen blending, which could reduce greenhouse gas emissions and improve air quality, says the company.

 

https://hanfordsentinel.com/business/hydrogen-projects-sprout-in-the-valley-john-lindt/article_2bb4ee2f-d177-5e65-ae81-3c037848c76b.amp.html