Comprehensive Draft Environmental Impact Statement Gauges Potential Impacts and Solutions, All to Enhance Safety and Reliable Power
TOWN OF ULSTER, N.Y., Aug. 6, 2026 — Terra-Gen has submitted a Draft Environmental Impact Statement to the Town of Ulster Town Board for a proposed battery energy storage project at 430 Hurley Ave. The system is designed to supply electricity to approximately 200,000 to 250,000 households for four hours, providing reliability and resiliency for the power grid by providing up to 1,000 megawatt-hours of stored energy.
The submission, done on Tuesday, Aug. 4, 2026, is required by the New York State Environmental Quality Review Act (SEQRA). The comprehensive Draft Environmental Impact Statement (DEIS) evaluates the project’s potential environmental, social and economic impacts and identifies measures to avoid, minimize or mitigate them. The document is designed to provide information for the Town of Ulster Town Board, the lead agency reviewing Terra-Gen’s application. The DEIS has been posted on the Town of Ulster’s website at www.townofulster.ny.gov/public-information/. Scroll down to Alcazar Energy Storage System LLC.
“The project represents a safe, responsible, forward-looking community investment that will provide a significant source of electricity, supports New York State’s clean-energy transition, and provides enduring benefits to the community,” said Mark Turner, Terra-Gen’s Vice President and Head of Energy Storage Development.
“The DEIS reflects more than a year of engineering, environmental analysis and collaboration with regulatory agencies,” Turner said. “Health and safety protections have guided every aspect of this project from the outset. This battery energy storage system (BESS) incorporates multiple layers of fire prevention, detection, monitoring and emergency response systems that meet or exceed applicable state and national safety standards. We are confident that this review demonstrates that this BESS can be constructed and operated safely while providing meaningful reliability, environmental and economic benefits to the Town of Ulster and New York’s electric grid.”
The proposal includes a 250-megawatt BESS and an interconnection to a neighboring Central Hudson Gas & Electric Corp. substation. New York State has identified battery energy storage as a key component of the state’s evolving energy infrastructure. BESS units store electricity when demand is low and deliver it when demand is highest, providing added reliability to the power grid and decreasing reliance on older, less-efficient fossil-fuel generation during peak periods of customer demand for electricity.
The BESS will utilize lithium-iron-phosphate (LFP) battery technology, a widely deployed battery chemistry recognized for its thermal stability, durability and enhanced safety characteristics. As detailed in the DEIS, the project incorporates multiple measures to avoid, minimize and mitigate potential impacts to public health and environmental resources. The BESS has been designed in accordance with the 2025 New York State Fire Code, National Fire Protection Association (NFPA) 855 standards and other applicable regulations.
Since submitting its Site Plan and Special Use Permit application in April 2025, Terra-Gen has participated in a comprehensive environmental review overseen by the Town Board. Community engagement influenced the areas to be studied in the DEIS. The Town Board adopted that Final Scoping Document in April 2026, resulting in the DEIS just submitted.
In addition to strengthening electric grid reliability and supporting New York’s clean-energy transition, the BESS is expected to create hundreds of construction jobs using local union labor through a Memorandum of Agreement with the Hudson Valley Building & Construction Trades Council.
The project will provide long-term economic benefits through a Payment in Lieu of Taxes (PILOT) agreement benefiting Ulster County, the Town of Ulster and the Kingston City School District, annual payments supporting local emergency-response districts, and a Host Community Benefit Agreement to help fund local priorities such as public safety, infrastructure improvements and sustainability initiatives.
After the DEIS is accepted by the Town Board, the document will be available for public review and comment for a minimum of 30 days. Public hearings will be held by the Town Board, with dates to be announced. Following the close of the public-review period, the Town of Ulster Town Board will prepare the Final Environmental Impact Statement (FEIS). This will address comments received from the community. Once the FEIS is deemed complete by the Town Board, a Notice of Completion will be issued, followed by a Findings Statement no sooner than 10 days afterward.
“Terra-Gen appreciates the thoughtful engagement of Town of Ulster officials and community members throughout this process,” Turner said.
BESS facilities are widely used across the United States, including multiple sites operated by Terra-Gen. Safety protocols include:
- New battery models are tested and certified to ensure a failure will not cascade beyond a single battery enclosure.
- Advancing technology, including compartmentalized battery storage units, provide vastly superior protection older units could not supply. Battery storage facilities also are protected by cutting-edge fire control systems.
- The New York State Uniform Fire Prevention and Building Code in 2026 added more stringent parameters, making the code one of the strongest in the nation. BESS units are extensively fire-tested before installation, mandated by New York’s new regulations.
- Independent studies following BESS incidents elsewhere found no risk to people, air, soil or water.
- Terra-Gen hires expert firefighters to lead training for first responders and coordinates with fire departments on safety and emergency response plans. Terra-Gen already has met with local fire departments, and conversations will continue.
- The Electric Power Research Institute reported that “the [BESS] failure rate dropped by 99% from 2018 to 2025 as lessons learned from early failures have been incorporated into the latest designs and best practices”.
- A Fire & Risk Alliance report for the American Clean Power Association confirmed that “The implementation of robust national codes and design advancements have significantly improved fire safety and reduced risks.”
For more information about Terra-Gen’s commitment to safety, visit UlsterCleanEnergy.com and Facebook.com/TerraGenTownOfUlster. Terra-Gen appreciates the thoughtful engagement of Town of Ulster officials and community members throughout this process.
- https://storagewiki.epri.com/index.php/BESS_Failure_Incident_Database