After Outcry Controversial Sacramento County Solar Project That Would Have Destroyed 3500 Old Growth Oak Trees, Loses Utility Sponsor

Sacramento, CA – January 13, 2026 – A proposed 200-megawatt solar farm in eastern Sacramento County, which would require the removal of thousands of mature and old-growth native oak trees, has hit a major roadblock after the Sacramento Municipal Utility District (SMUD) canceled its power purchase agreement with the developer.

The Coyote Creek Agrivoltaic Ranch Project, spanning roughly 2,700 acres on the historic Barton Ranch near Scott Road and White Rock Road (southeast of Rancho Cordova and south of Highway 50), was unanimously approved by the Sacramento County Board of Supervisors in November 2025. Developed by New York-based D.E. Shaw Renewable Investments (DESRI), the project combines solar panels with continued sheep grazing on parts of the land, aiming to generate clean energy for tens of thousands of homes while advancing the county's climate goals.However, the plan has sparked intense opposition due to its environmental toll.

Critics highlight the destruction of up to 3,493 mature or old-growth blue oak and other native trees — some estimated to be 150 to 850 years old — in one of the last intact oak woodlands in Sacramento County. These woodlands, often called a biodiversity hotspot, support grasslands, vernal pools, and habitat for over 2,000 wildlife species, including sensitive birds like the tricolored blackbird and burrowing owl.

Environmental groups, including the Environmental Council of Sacramento (ECOS) and the California Native Plant Society (CNPS), filed a lawsuit in late December 2025 challenging the county's approval under the California Environmental Quality Act (CEQA). They argue the environmental review was inadequate, failed to properly mitigate irreversible losses to ancient oaks (which grow extremely slowly and are difficult to successfully replant), and overlooked impacts on groundwater, streams, and tribal cultural resources. Tribes consulted during the process reportedly remained opposed.

On January 5, 2026, SMUD announced it was terminating the 2021 power purchase agreement, citing "project uncertainties" such as supply chain issues, rising costs, schedule delays, environmental concerns, and the pending litigation. The utility emphasized it remains committed to its goal of 100% carbon-free power by 2030 through other sources.

Environmental advocates welcomed the move as a significant victory.

Heather Fargo, president of ECOS and former Sacramento mayor, described it as relief for the threatened blue oak woodlands and called the project poorly sited, arguing better locations exist for solar development without sacrificing irreplaceable habitat.DESRI, however, stated it intends to move forward with the project, praising the county's approval and highlighting economic benefits like $365 million in local investment, property tax revenue, and preservation of other woodlands and wetlands on the site. The developer has proposed mitigation measures, including acorn harvesting and replanting in protected areas, though experts question their effectiveness given the centuries required for mature oaks to regrow.

The controversy underscores broader tensions in California's push for renewable energy: balancing aggressive climate targets with the preservation of local ecosystems. While the county's approval stands, the ongoing lawsuit — combined with the loss of SMUD as a buyer — leaves the project's future uncertain, as any new off-taker would need transmission arrangements.Public reaction has been strong, with social media users and local residents decrying the plan as "greenwashing" and a "crime against nature," especially as similar projects elsewhere have cleared irreplaceable landscapes for solar arrays.As the legal battle continues, the Coyote Creek saga highlights the challenges of implementing large-scale clean energy initiatives without unintended ecological costs.