Title
Consider and take action on an ordinance: 1) rezoning approximately 1.7 acres from “CG” (General Commercial) to “PS” (Public / Semi-Public), 2) issuing a Special Use Permit on the same property, MAP-23-0007 (Stella B.E.S.S.), to operate a Battery Energy Storage Station (B.E.S.S.), generally located along the east side of Caroline Street and south of Farm to Market Road 646 and 3) authorizing a strategic partnership agreement (Director of Planning)
Planning and Zoning Commission failed to recommend approval 0-7-0 with one member absent on February 19, 2024 (Prior to the creation of the B.E.S.S. Ordinance).
City Council held a public hearing and postponed the item, 7-1-0 on April 23, 2024.
Background:
Approval of this ordinance will rezone approximately 1.7 acres to “PS” and grant a Special Use Permit, which will allow a Battery Energy Storage System (B.E.S.S.) to operate at this location.
Project Timeline
August 10, 1999 - The property was initially zoned as “SDR” (Suburban Development District - Residential).
August 30, 2005 - The property was zoned “CO-PUD” (Office Commercial within a Planned Unit Development Overlay District) as part of the City’s Zoning Map and Ordinance revisions of 2005.
April 11, 2006 - The property was zoned from “CO-PUD” to “CG.”
August 31, 2023 - The applicant held a neighborhood meeting at the Johnnie Arolfo Civic Center in League City. The sign-in sheet indicates no residents or owners attended the meeting.
September 11, 2023 - The applicant submitted a Rezoning and SUP request to the Planning Department.
January 31, 2024 - A public hearing notice was published in the newspaper, a sign was posted on the property and notices were mailed to the surrounding property owners.
February 19, 2024 - Planning & Zoning Commission held a public hearing and the motion to approve failed by a vote of 0-7-0.
March 26, 2024 - The item was originally scheduled to the March 26, 2024, meeting. The applicant requested the item be rescheduled to a subsequent meeting.
April 23, 2024 - City Council held a public hearing and postponed the item until an ordinance regulating BESS sites was created.
July 9, 2024 - City Council adopted Ordinance No. 2024-23, creating minimum standards for BESS sites.
November 20-22, 2024 - The notice for the hearing was published in the newspaper, a sign was posted on the property and notices were mailed to the surrounding property owners.
December 17, 2024 - City Council is scheduled to hold a public hearing and hear the request.
January 14, 2025 - If approved on first reading, City Council will consider the second reading of the request.
Over the last two and a half 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. A second BESS site was approved with a Special Use Permit on September 24, 2024, but has not yet begun construction along State Highway 3 (Peregrine Wizard BESS).
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.
Project Summary:
The request is being made to rezone approximately 1.7 acres to “PS” (Public / Semi-Public) with a Special Use Permit (SUP) for the purpose to operate a 10-Megawatt (MW) B.E.S.S. (Battery Energy Storage System) facility. According to the Electric Reliability Council of Texas (ERCOT), one (1) megawatt of electricity can power approximately 200 Texas homes during periods of peak demand.
The requested area is part of a larger 5.568-acre tract of land that was purchased for the project. The remaining 3.87 acres that is closer to Caroline Street, is to remain “CG” with the intent to be developed for commercial purposes. The proposed battery site would be approximately 330 feet south of Farm to Market Road 646, approximately 700 feet east of Caroline Street and approximately 1,000 feet from the nearest residence in League City.
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.
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.
The proposed BESS facility has met all of the requirements outlined in the ordinance. 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.
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 95 feet from the northern property boundary, 690 feet from the western property boundary, 130 feet from the eastern property boundary, and 50 feet from the southern property boundary. The proposed landscape plan indicates that the site will be surrounded with a 15-foot masonry wall, a continuous hedge, and approximately 60 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.
In addition, 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), as adopted and amended by League City. Additionally, NFPA 855 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, due to the installation meeting or exceeding all manufacturer’s recommendations and separation distances from all exposures.
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 Stella B.E.S.S. site. 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.
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 and the adjacent powerline corridor based on a catastrophic failure at the facility. The Plume Model and Hazard Mitigation Analysis do not indicate the need for additional setbacks for community safety.
Fire Management Plan and Emergency Response Plan
The applicant 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, a decommissioning bond and plan, floodplain compliance, a finalized Emergency Response Plan, and proof of compliance with all NFPA, IFC, and IBC requirements.
Public Hearings and Citizen Comments
Four 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 hearing. One (1) notice of opposition was received, outside of the notification boundary.
On February 19, 2024, the Planning and Zoning Commission held a public hearing. During the public hearing nine residents spoke in opposition to the request. The Planning and Zoning Commission failed to recommend approval by a vote of 0-7-0 with one member absent.
Recommendation
Based on the above analysis, the site is in a preferred location and is compliance with the Comprehensive Plan and BESS Ordinance. 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 Stella 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 (or subsequent/successor agreement) must always be active and in effect for the SUP to remain valid and in place.
5. 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.
6. Provide a Decommissioning Bond, with the Applicant as the Principal and the instrument shall run to the City, as oblige, and shall become effective on or before the beginning of operations at the site and shall remain in force until the property is fully decommissioned. The bond shall automatically renew annually, with a 120-day advance notice provided to the City in the event of non-renewal. Annual confirmation of the bond's renewal must be submitted to the City. If the bond lapses at any time, the SUP will be immediately revoked.
7. On and off-site overhead lines will be allowed to interconnect with the TNMP substation along the Centerpointe power corridor on the south side of the property, along Caroline Street, and along FM 646, as shown on the overhead power exhibit. All overhead poles located adjacent to any roadway shall be concrete.
Attachments:
1. Proposed Ordinance
2. Exhibit A - Zoning Map
3. Exhibit B - Site, Landscape Plan, and Renderings
4. Exhibit C - Strategic Partnership Agreement
Origination:
Planning Department
Applicant: Stella Energy Solutions, LLC.
Owner: MLH Land Holdings, LLC.
FUNDING
{X} NOT APPLICABLE
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor #8 (Quality-Built Environment)