SACRAMENTO, Calif. — The Sacramento Municipal Utility District (SMUD) has cancelled its power purchase agreement with D.E. Shaw Renewable Investments (DESRI) to be an off taker of solar power from the controversial Coyote Creek Agrivoltaic Ranch project.
This is a partial victory for the environmental groups and Indian Tribes, including the Shingle Springs Band of Miwok Indians and the Wilton Rancheria, who opposed the project that would remove nearly 3500 trees from habitat draining a tributary of Deer Creek, in turn a tributary of the Cosumnes River, the last undammed Central Valley river.
Three lawsuits were recently filed against Sacramento County for approving the project in November, including one by the California Native Plant Society and ECOS (Environmental Council of Sacramento), one by the Wilton Rancheria and another by offload vehicle vehicle groups.
The Board of Supervisors, including chair Phil Serna, Patrick Kennedy, Rich Desmond, Rosario Rodriguez and Pat Hume, unanimously approved the Environmental Impact Report for the project. Over 150 people spoke at the November hearing where the project was approved, despite massive opposition.
In 2021, SMUD signed a power purchase agreement (PPA) with DESRI to be an off taker of solar power from the Coyote Creek project, according to an announcement from SMUD.
“Due to project uncertainties, SMUD announced today that they will not be purchasing power from the Coyote Creek project. Some of the uncertainties include: supply chain constraints, rising prices, tariffs, schedule delays, environmental impacts and pending litigation,” SMUD stated.
SMUD CEO & General Manager Paul Lau responded to SMUD’s decision to terminate the PPA for the project.
“Over the years, SMUD and DESRI have delivered multiple important clean energy projects that benefit our community, and we look forward to continuing our partnership for years to come,” Lau stated. “We’d like to thank Sacramento County for all their work throughout the process and our SMUD Board of Directors for their leadership. We remain committed to following a flexible pathway to eliminate all carbon from our power supply by 2030.”
The environmental groups thanked SMUD for their decision, but noted that they would continue to pursue litigation against Sacramento County.
“In a nice start to the new year, SMUD backed away from the Coyote Creek agrivoltaic project in eastern Sacramento County,” said Heather Fargo, Chair of the ECOS Board of Directors and former Sacramento Mayor, in a statement to supporters. “The developers could still build if they can find a buyer for the power, but ECOS and the California Native Plant Society are maintaining their lawsuit to void the special use permit approved by the County.”
She noted that two other lawsuits have been filed against the County’s approval of the project — one by the Wilton Rancheria, and the other by the California 4 Wheel Drive Association (Cal4Wheel), American Sand Association, and BlueRibbon Coalition (OHV groups).
Parties to the three lawsuits allege violations of the California Environmental Quality Act (CEQA), a landmark California law. They said Sacramento County did not properly evaluate the environmental impacts that the project would have on the ecologically sensitive area it is proposed for.
“I can confirm Wilton Rancheria has filed a petition under the California Environmental Quality Act (CEQA) related to the Coyote Creek solar project,” said Gianna Rogers, M.A., the Communications Manager for the Rancheria, in response to my inquiry. “As the matter is currently pending, the Tribe is unable to provide further comment at this time.”
Fargo also said ECOS and its partners, including Sierra Club, 350 Sacramento, California Native Plant Society, Sacramento Audubon Society, Defenders of Wildlife, Center for Biological Diversity, California Wildlife Foundation, Central Valley Bird Club, Third Act, and Sierra Access Coalition, “are grateful for the depth of opposition” that opponents brought to the Board of Supervisors.”
The County said it may continue to pursue the project, despite pulling out of the agreement.
"The County is aware that SMUD announced today that it has canceled its power purchase agreement to serve as an off-taker for solar power generated by the Coyote Creek Agrivoltaic Ranch project," a spokesperson for Sacramento County told KCRA 3. "The project applicant may continue to explore additional off-take agreements consistent with existing approvals, so the County is still assessing the impact of SMUD’s decision." Here’s a link to the KCRA coverage: www.kcra.com/...
Meanwhile, DESRI said it is continuing to pursue development on the project.
Hy Martin, Chief Development Officer of DESRI, commended the Sacramento County Board of Supervisors for what he claimed was “their bold leadership” in unanimously approving the Coyote Creek Agrivoltaic Ranch last November.
“The project is well positioned to permanently preserve extensive oak woodlands and wetland resources at Barton Ranch, generate meaningful property tax revenue, support local economic development, and advance the goals of the County’s Climate Action Plan. Coyote Creek has been in development for many years and during that time, our team has engaged meaningfully with the community to build lasting partnerships,” he contended.
However, the environmental plaintiffs point to the potential loss of 3,493 trees from the project, including oak trees that date back to the time of Ghengis Khan and the Middle Ages, that will be incurred from “industrial-level repurposing” of the land. They also say the project represents potential and significant ecological impacts to two perennial streams feeding into Deer Creek and ultimately the Cosumnes River, as well as to multiple sensitive or endangered species, including the tricolored blackbird, burrowing owl, and American badger, “and 25% of the entire known occurrences of the rare western spiked rosinweed.”
The Chinook salmon of the Cosumnes River and tributaries, like other Central Valley streams, are struggling to survive in the face of many decades of water diversions, habitat changes and water exports from the Sacramento-San Joaquin River Delta.
