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The Livermore City Council unanimously green-lit the development of a fusion research facility and the terms of an accompanying financial incentive package for the project applicant Monday night.
Proposed by private company Pacific Fusion, the approximately $1 billion project is meant to test and demonstrate the commercial viability of fusion power to create clean energy.
Pacific Fusion has not yet decided whether to locate its facility in Livermore, as the company was also considering the city of Alameda in June. If the company selects Livermore, the approximately 225,500 square-foot light industrial building would be constructed along West Jack London Boulevard, west of the Oaks Business Park.
“I think if this is going to succeed anywhere, it’s going to be in Livermore,” Mayor John Marchand said during the Sept. 8 discussion.
In addition to the council’s backing, the majority of commenters expressed their support of the project during a public hearing that day.
“I’m really hyped for this project,” Vice Mayor Evan Branning said during the meeting. “Even if they don’t succeed, we want to be the spot that builds them up as a company, that builds this technology up and gives them the best opportunity.”
Should Pacific Fusion select Livermore, the research and development facility would be located on an approximately 14-acre vacant parcel of SMP 39.
The SMP 39 site was officially annexed last year with the goal of establishing a campus-like environment that would facilitate the development of modern professional offices, research and development facilities, advanced manufacturing, experimental and testing laboratories and related amenities to support Livermore’s innovation economy, according to the staff report prepared by Livermore assistant planner Emily LaDue.
Consistent with the city’s climate action strategies and city-wide strategic plan, the Pacific Fusion project is expected to foster a green economy and support the city’s overall economic growth, according to LaDue.
More specifically, the project is estimated to introduce approximately 250 “high-quality jobs” including technicians, engineers and scientists, according to the staff report. The project may also initiate a fusion energy industry hub and attract related businesses, vendors and suppliers to Livermore near Pacific Fusion and the national labs.
The estimated revenue to the city would be approximately $600,000 annually, according to the staff report. That number accounts for taxes, fees and the unsecured property tax rebate to Pacific Fusion for either 10 years or the length of time Pacific Fusion is in operation at the site, whichever is shorter.
There are also opportunities for partnership between Pacific Fusion and local entities like Las Positas College, Innovation Tri-Valley Leadership Group, Lawrence Livermore National Laboratory and Sandia National Laboratories, LaDue said.
In order to attract the company to Livermore, city staff recommended that the city move forward with an economic incentives program framework for waiving, deferring or rebating certain fees and taxes, according to the staff report.
The incentives are set to be formalized in an agreement and brought back to the council for review, LaDue said.
The incentives seem reasonable, Councilmember Steven Dunbar said during the meeting. The city does not seem to be over-leveraging itself, he added.
During the public hearing, six of the seven commenters expressed their support of the project.
Among those offering positive remarks were representatives from local organizations Quest Science Center, Innovation Tri-Valley Leadership Group and Visit Tri-Valley.
“The possibility of Pacific Fusion locating in our city is very exciting to us,” Quest Board Director Rick Stulen said on behalf of the organization. “It would once again show the ability of our city to be a leader in what is arguably the most important piece of our future national security infrastructure and that is renewable, clean energy production.”
One public commenter expressed concern regarding the safety of the materials to be used at the facility.
Work would utilize “established science, practical engineering and affordable manufacturing processes.” according to the staff report.
Dunbar later also expressed his confidence in the project’s safety.
Other members of the council also voiced their support for the project.
“It’s really hard to think of a better match for us and for them,” Councilmember Kristie Wang said.
Sharing sentiments with the other council members, Marchand stated his “whole-hearted” support for the project.
The council unanimously approved the project in alignment with the Livermore Planning Commission’s unanimous recommendation Aug. 12.
Entitlements associated with the project included planned development industrial zoning amendment, vesting tentative tract map amendment, site plan design review, conditional use permit and environmental review.
Staff time allocated to entitlement review is offset by required entitlement application fees, according to the staff report.
If Pacific Fusion does not select Livermore as the site of its future facility, council may direct staff to forgo a second reading of the ordinance amending the planned development zone. This would also invalidate the project approvals established by resolution, the staff report states.
