Title
Consider and take action on an ordinance approving a Special Use Permit, SUP-23-0003 (Peregrine Wizard BESS), to operate a Battery Energy Storage Station (B.E.S.S.), generally located along the east side of South State Highway 3, south of Washington Street, and west of Dickinson Avenue (Director of Planning)
Planning and Zoning Commission recommended approval, 5-2-0 with one member absent on September 9, 2024.
Background:
Approval of this ordinance will grant a Special Use Permit (SUP) for Private Utility Use.
Project Timeline
August 10, 1999 - Zoning was established in League City and the subject property was designated “IL” (Limited Industrial).
December 1, 2023 - The applicant held a neighborhood meeting at the American Legion Post 554 in League City. The sign-in sheet indicates that six residents attended the meeting.
December 11, 2023 - The applicant submitted a Special Use Permit application to the Planning Department.
May 2023 - June 2023 - The applicant conducted several outreach events with the community. The applicant also conducted four first responder training classes.
July 19, 2024 - City Council adopted an Ordinance No. 2024-23 to establish regulations related to Battery Energy Storage Systems. The ordinance was adopted in response to concerns related to several requests for B.E.S.S. facilities within League City.
August 23, 2024 - Public hearing notices were mailed to the surrounding property owners and members of the public who spoke at the Berkman B.E.S.S. public hearing on March 4, 2024.
August 23, 2024 - A public hearing notice was published in the newspaper and a sign was posted on the property.
September 9, 2024 - Planning & Zoning Commission held a public hearing and recommended approval of the item, 5-2-0.
September 24, 2024 - City Council is scheduled to conduct a public hearing and consider the request on first reading.
October 8, 2024 - If approved on first reading, City Council will consider the second reading of the request.
Over the last two years, City staff has met with numerous companies interested in developing B.E.S.S. sites within League City and its ETJ. All the facilities we have spoken with, to date, have proposed a lithium-ion battery system within a series of storage “modules” which are in a grid pattern and interlinked into one system. The proposed locations of these facilities have been near public utility substations. Currently, League City has only one, 10 MW facility, located on Floyd Road on the west side of League City.
In general, a B.E.S.S. system is defined as one or more devices (i.e. group of batteries), assembled together capable of storing energy in order to supply electrical energy at a future time. B.E.S.S. facilities will receive electricity from the electrical grid when there is excess electrical power, store it in a series of batteries and then return it to the grid when additional electricity is needed. This can help stabilize the grid during extreme weather events.
Council adopted an ordinance regulating BESS sites at the July 9, 2024, meeting. The proposed application for the Peregrine Wizard BESS site does meet all ordinance requirements for approval of a Special Use Permit.
Project Summary:
The request is being made to propose a Battery Energy Storage System (B.E.S.S.) on approximately 15 acres of undeveloped land for the purpose to operate a 150 MW B.E.S.S. facility. The plans provided represent a full buildout of the site consisting of battery modules to be installed upon initial construction and area for future battery modules. The safety analysis and plume modeling performed by the 3rd party consultant were made considering full buildout conditions.
The proposed battery site would be approximately 560 feet north of State Highway 3, approximately 800 feet south of Washington Street.
The use is classified in the Unified Development Code (UDC) as a Private Utility, and requires a Special Use Permit (SUP) in the “IL” (Limited Industrial), “PS” (Public/Semi-Public), and “OS” (Open Space) zoning districts.
BESS Ordinance Analysis:
On July 9, 2024, City Council adopted Ordinance No. 2024-23, which created development regulations associated with B.E.S.S. facilities. The intent of the ordinance is to establish comprehensive regulations for the placement, construction and operation of Battery Energy Storage Systems to ensure the health, safety and welfare of the community. The objectives include:
1. Ensuring community health, safety, and welfare.
2. Providing a regulatory framework for suitable property designation for B.E.S.S
3. Mitigating negative impacts of B.E.S.S. sites.
4. Regulating both new and existing B.E.S.S. installations.
A summary of the criteria from the ordinance is provided below:
Location
The adopted ordinance established the following minimum setbacks for B.E.S.S. Sites:
- A B.E.S.S. site shall be no closer than 1,500 feet perpendicular in any direction from another B.E.S.S. site measured at the perimeter fence.
- The setback shall be a minimum of 200 feet from the nearest property zoned for single-family uses or a school.
- Additional setbacks and spacing of containers may be required based on the hazard mitigation analysis or plume model.
- Preference will be given to sites that are not adjacent to or within 300 feet of a roadway classified as an arterial or higher.
The proposed B.E.S.S. site currently meets all setback requirements of the ordinance. The Hazard Mitigation Analysis and Plume Model did not indicate that additional setbacks were needed for the safety of the community.
There are currently three B.E.S.S. sites that have applications submitted to the City (Peregrine, Berkman, and Stella). These applications were submitted prior to the ordinance regulations being adopted. At the proposed locations, the Peregrine and Berkman sites would be within 1,500 feet of each other, although neither site has been approved.
Landscape/Screening and Buffers:
The adopted B.E.S.S. ordinance requires that B.E.S.S. sites have a Type B landscape buffer, which includes a 30-foot buffer, a wall, and plantings.
The proposed site plan indicates that the perimeter wall will be set back approximately 35 feet from the property boundaries along the front, rear and southeast side, with a detention pond located on the northwest side of the property. The proposed landscape plan indicates that the site will be surrounded with a ten-foot masonry wall, a continuous hedge, and trees. In total, the applicant will plant approximately 300 trees and 809 shrubs at the site. In addition, the site was redesigned to protect two protected Oak trees.
3rd Party Safety Analysis:
League City has engaged the services of Code Concepts Group, LLC as a third-party expert to review the B.E.S.S. sites for safety concerns. Code Concepts Group has reviewed and evaluated the documentation and proposed plans for the site and has indicated the proposed facility does not present an unusual risk to the community at large, and specifically the nearby residential occupancies. See Planning and Zoning Commission Report, Attachment #5, for the full report.
In addition to this report, Code Concepts Group will review all building permit documentation and perform inspections throughout the construction phase of the project.
Hazard Mitigation Analysis (HMA):
The HMA was prepared in accordance with the International Fire Code (IFC) 2024, as adopted and amended by League City. Additionally, NFPA 855, 2023 Edition is referenced to ensure compliance with the latest industry guidance. The results of the Hazard Mitigation Analysis details potential hazards, mitigation measures, and potential outcomes. The results of the analysis indicate that the system can be safely deployed at the proposed location with limited risk to the public.
Plume Model Study:
League City has engaged the services of Hazard Dynamics as another third-party expert, tasked with conducting a plume dispersion study for the Peregrine B.E.S.S. The purpose of a plume study is to identify and quantify potential risks associated with toxic gases produced by a B.E.S.S. under varying weather conditions. The plume model study report analyzes worst-case scenarios, based on available test data from sources such as Underwriters Laboratory (UL).
The plume model study report modeled and analyzed the potential toxicity hazards of lithium-ion battery systems and evaluated the potential scenarios and their impacts on the site as well as the surrounding area. Factors also included the conditions of fog and rain. Fog conditions are unlikely to worsen the plume from battery vent gas or fire while rain is expected to reduce the severity of the plume by promoting mixing and dispersion of gases. See Planning and Zoning Commission Report, Attachment #6, for the full report.
The results of the plume model showed that under different weather conditions and in both burning and gas release scenarios, the threat for serious health effects is contained within the B.E.S.S. property boundaries based on a catastrophic failure at the facility. There could be possible irritation or discomfort if exposed to smoke outside the boundary of the site up to 951 feet away from the enclosure. The 951-foot radius consists of approximately 20 single-family structures, four of which are located within the Oaks of Clear Creek Subdivision.
The Plume Model and Hazard Mitigation Analysis do not indicate setbacks need to be increased for community safety. Hazard Dynamics indicated that there are no known incidents utilizing the batteries that are proposed with this development.
Fire Management Plan and Emergency Response Plan
Peregrine Wizard provided emergency response procedures for the proposed B.E.S.S. site that are designed to ensure that all personnel, city staff, and contractors are prepared to respond effectively and safely to any emergencies at the facility. The plan outlines procedures related to emergency responses, fire incidents, chemical releases, medical emergencies, security incidents, environmental hazards, and cybersecurity measures. The plan has been reviewed by our 3rd party safety consultant and our Fire Marshal’s Office and has been deemed satisfactory. A final version of the Emergency Response Plan will be provided prior to building permits being issued.
Development Phase
Should the SUP be adopted, the applicant will submit building permit documents that address all aspects of the ordinance. Items that will be addressed prior to issuance of the building permit include proof of insurance, noise study, decommissioning bond and plan, floodplain compliance, a finalized Emergency Response Plan, proof of compliance with all NFPA, IFC, and IBC requirements, and a strategic partnership agreement.
Public Hearings and Citizen Comments
Nineteen (19) notices were mailed to property owners within 200 feet. Additional notices were mailed to property owns who previously attended the B.E.S.S. public hearings. Twenty (20) notices of support and three (3) notices of opposition were received, all outside of the notification boundary.
On September 9, 2024, the Planning and Zoning Commission held a public hearing. During the public hearing three residents spoke. Two residents were in opposition of the project, and the third resident was not in favor of two facilities being located within 1,500 feet of each other. The Planning and Zoning Commission recommended approval of the request by a vote of 5-2-0 with one member absent.
Recommendation
Based on the information above analysis, the site is in a preferred location and is compliance with the Comprehensive Plan. Staff recommends approval of the Special Use Permit subject to the following conditions:
1. The only use permitted by this SUP is the Private Utilities use, specifically a B.E.S.S. facility submitted by Peregrine Energy Solutions, LLC.
2. The site shall be developed in accordance with the League City Code of Ordinances, Chapter 125, Section 3.14.19 Standards for Specific Uses, Battery Energy Storage Systems (B.E.S.S.).
3. The site layout shall be substantially similar to what is shown in the proposed site exhibits and renderings.
4. A Strategic Partnership Agreement must be approved by City Council prior to issuance of a building permit for the B.E.S.S. site.
5. A Strategic Partnership Agreement (or subsequent/successor agreement) must always be active and in effect for the SUP to remain valid and in place.
6. If any battery modules are added beyond what is shown on the site exhibits, the battery modules are replaced with batteries consisting of new chemistry, or the manufacturer changes, the Special Use Permit must be reconsidered by City Council.
7. On and off-site overhead lines will be allowed to interconnect with the TNMP substation across Dickinson Avenue.
Attachments:
1. Proposed Ordinance
2. Exhibit A - Zoning Map
3. Exhibit B - Survey
4. Exhibit C - Site Plan
5. Exhibit D - Renderings
Origination:
Planning Department
Applicant: Peregrine Energy Solutions, LLC
Owner: Wizard Energy Storage, LLC
FUNDING
{X} NOT APPLICABLE
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor #8, Quality Built Environment