SACRAMENTO COUNTY, CA (MPG) - Two of the three lawsuits challenging Sacramento County's approval of the controversial Coyote Creek Agrivoltaic Ranch have been settled, resulting in changes intended to protect thousands of mature oak trees, wildlife habitat and the neighboring Prairie City State Vehicular Recreation Area.

The agreements with Sacramento Valley Energy Center LLC, an affiliate of New York-based renewable energy developer DESRI, will reduce the proposed solar facility's development footprint by about 20% and limit the removal of mature oak trees from approximately 3,500 to no more than 200.

The settlement also establishes permanent conservation protections for approximately 1,369 acres of the 2,704-acre Barton Ranch property along Scott Road near Rancho Murieta.

However, Sacramento County has not received revised plans, and the project's future remains uncertain following the Sacramento Municipal Utility District's January decision to terminate its agreement to purchase electricity from the facility.

"The County is not a party to and has not seen the (settlement) agreement," county Public Information Manager Ken Casparis said in a Nov. 9 email. "We have not received any information about the proposed revisions to the project."

Casparis said the county also has not received revised site plans, leaving unanswered whether the changes will require additional review or approval by the county Planning Commission or Board of Supervisors.

The settlement requires the developer to submit the modifications for county approval. The conservation easements are subject to conditions, including county approval without requiring a supplemental environmental impact report or additional discretionary approval by the Board of Supervisors.

Thousands of Oak Trees Protected

The California Native Plant Society, Environmental Council of Sacramento and Sierra Club announced their settlement Oct. 16 and subsequently filed to dismiss their lawsuit challenging the project's environmental impact report.

Heather Fargo, ECOS president and former Sacramento mayor, confirmed in a Nov. 11 email that the development footprint will shrink by approximately 20%.

She said newer solar panels may allow the project to generate up to 175 megawatts of electricity, compared with the 200 megawatts originally approved.

Although the project will occupy less land, Fargo said the amount of land protected through mitigation will increase by 200 to 300 acres.

Most of the property outside the revised development area will be protected by permanent conservation easements that prohibit future expansion of the solar facility, she said.

The settlement specifies approximately 1,369 acres of conservation easements, which would be held by the California Rangeland Trust or another organization approved by the California Department of Fish and Wildlife. The state agency would have authority to enforce the permanent protections.

Fargo said the easements also will protect the remaining oak trees from removal.

The agreement limits removal to 200 living oak trees with a trunk diameter of at least 6 inches. Trees within 50 feet of the construction footprint are considered to have been removed.

The agreement also allows the developer to increase the battery energy storage system from the originally approved 100 megawatts and 400 megawatt-hours to 250 megawatts and 1,000 megawatt-hours. The larger system must remain within the revised development area, at least 300 feet from Prairie City's boundary and outside designated aquatic areas.

The organizations agreed not to oppose the larger battery system if those conditions are met, although the settlement does not require its expansion.

Other provisions require additional oversight of oak tree replanting, prohibit rodenticides on the project site and provide $200,000 to a nonprofit selected by the California Native Plant Society to improve habitat and propagate rare plants in the Sacramento region.

The environmental organizations had argued that the county's review inadequately addressed impacts on oak woodlands, rare plants, wildlife, groundwater and other resources.

Fargo emphasized the importance of protecting mature trees as part of efforts to address climate change. "We want the public to know that conservation itself is a climate solution," Fargo said in the Oct. 16 announcement. "A single oak, like those in this project, can trap vast amounts of carbon per year, making oaks what we call a 'nature-based solution.'"

Prairie City Protections

The same settlement agreement resolves a separate lawsuit filed by the California Four Wheel Drive Association, BlueRibbon Coalition and American Sand Association over potential impacts on Prairie City State Vehicular Recreation Area.

The agreement requires DESRI to make commercially reasonable efforts to relocate the proposed electrical switchyard and transmission line outside the recreation area, at least 300 feet from the recreation area's boundary.

If the entire transmission line cannot be relocated, the developer must move approximately 1,300 feet onto Barton Ranch. If either the line or switchyard remains within the park, DESRI must provide $1 million for each facility to benefit Prairie City or other state off-highway vehicle recreation areas.

The settlement also establishes setbacks for other electrical infrastructure, restrictions on construction traffic and measures to control dust and solar panel glare.

Construction within the recreation area would be limited to weekdays and prohibited during specified major events. Other construction traffic must use Scott Road.

The organizations filed to dismiss their lawsuits on Oct. 16. Casparis confirmed on Nov. 9 that both cases had been dismissed.

Wilton Rancheria Lawsuit Pending

The third lawsuit, filed by Wilton Rancheria in December 2025, remains pending in Sacramento County Superior Court.

The tribe alleges that the county violated the California Environmental Quality Act by approving a project that would harm tribal cultural resources and improperly terminating government-to-government consultation required under state law.

However, a Nov. 2 court filing indicates that Wilton Rancheria and Sacramento Valley Energy Center are making substantial progress toward a settlement resolving all claims.

The parties requested additional time to complete negotiations, proposing a Dec. 4 deadline for the tribe's opening brief and postponement of a court hearing from Feb. 4 to April 1.

The court record showed no subsequent action on the request, and no settlement has been announced.

County Approval, SMUD withdrawal

The Sacramento County Board of Supervisors unanimously approved the project Nov. 18, 2025, despite strong opposition from environmental organizations, off-road recreation groups and tribal representatives.

The six-hour hearing drew an overflow crowd, with most of the approximately 130 speakers opposing the project.

As originally approved, the project called for developing approximately 1,412 acres of Barton Ranch with a 200-megawatt solar array, a 100-megawatt battery storage system capable of delivering electricity for up to four hours and seasonal sheep grazing beneath the panels.

Supporters cited renewable energy production, union-wage construction jobs, increased property tax revenue and continued agricultural use. Opponents warned of irreversible damage to oak woodlands, wildlife habitat and tribal cultural resources.

Three lawsuits followed in December.

The project's future became uncertain Jan. 5, when SMUD terminated its agreement to purchase electricity, citing construction delays, rising costs, tariffs, environmental concerns and pending litigation.

DESRI subsequently said it intended to proceed despite losing its contracted electricity purchaser.

Fargo said Nov. 11 that she was unaware of any replacement buyer. "We are not aware that anyone else has stepped forward to purchase the power," she said.

The River Valley Times requested an update from DESRI on the project's status and construction schedule but had not received a response.

With two lawsuits settled, a third still pending and the county awaiting revised plans, questions remain about the project's final design, construction schedule and financial viability.