Memorandum
Date: September 15, 2026
To: The Honorable Brad Rasmussen, Chair, Lake County Board of Supervisors
From: Susan Parker, County Administrative Officer
Benjamin Rickelman, Deputy County Administrative Officer
Subject: 10:00 A.M. - Consideration of Presentation of the Lake County Energy Strategy
Executive Summary:
This item presents the Draft Lake County Energy Strategy to the Board for initial consideration and direction. It was developed through the Ad Hoc Energy Policy Committee over the summer of 2026 in response to policy proposals, Committee research, and the projects now approaching the County. Large-scale energy projects have expressed interest in siting in Lake County, and formal exploratory applications are expected soon. The draft strategy document is currently in legal review; staff will return in October with a final document incorporating Board and public input. The strategy is a guiding document, not an ordinance: it creates no enforceable rights or obligations and does not supersede the Zoning Ordinance or General Plan, though elements of the Energy Strategy may later be carried into the planned Energy Element.
The accompanying presentation has three parts. Part I identifies five settled legal and financial limits on local government: the County cannot hold equity in or share revenue from private merchant generation (a public-purpose resilience asset remains permissible); it cannot buy power at cost and resell it; acquiring PG&E’s distribution system is not financeable at any modeled price and carries wildfire liability with no State backstop; a developer may elect State certification under AB 531, displacing County permits; and a fixed, formula-driven payment applied to every project reads as a tax under Proposition 26 and Sheetz. What remains is narrower but real: development and community benefits agreements, applicant-funded cost recovery, early participation in State proceedings, and the Energy Element.
Part II walks through the draft strategy. Its guiding principles are that the County’s interest is substantive rather than territorial; the strategy is neutral as to technology and resource; benefits above standard taxation come through voluntary, project-specific agreements with a documented nexus; and tribal consultation is required. The document is organized by what the County controls, moving outward, so the County’s position holds if a developer elects State certification. Its sections cover posture and participation in environmental review, the County-State relationship, development and community benefits agreements, CEQA practice, affirmative siting (a siting map and programmatic EIR estimated at $2 to $4 million, requiring outside funding), the geothermal setback, and capacity and funding.
Part III recommends next steps. For exploratory projects: Board adoption of the strategy, a road impact and use agreement signed before drilling, a written CalGEM position on geologic hydrogen, and amendments to Articles 27 and 68 of the Zoning Ordinance. For commercial projects, in sequence: updating the development agreement ordinance (Article 69) and Master Fee Schedule, extending cost recovery to State-certified projects, a model agreement and term sheet, wind standards in the Zoning Ordinance, and ongoing work such as a fiscal impact methodology.
If not budgeted, fill in the blanks below only:
Estimated Cost: ___None__ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☒ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☐ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☒ Economic Development ☒ Infrastructure ☐ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: Presentation is informational only. No action to adopt is requested; staff will return in October 2026 with a final strategy document for consideration incorporating Board and public input.