Consider and take action on the second reading of Ordinance 2024-04, amending the Texas City Code of Ordinances Title XV entitled "Land Usage", Chapter 160 entitled "Zoning" and providing for publication and an effective date.

Battery Electrical Storage Systems (BESS) are installations of large containers of batteries which are usually located close to an electrical power substation.  The batteries charge during periods of low demand and then supplement the electric grid during periods of high demand.  The installations are designed to provide approximately 2-hours of power to the grid.  Locations close to an existing substation are essential for most of the projects. Texas City has two existing BESS installations at 505 34th Ave N and 430 SH 146 N, and a third approved adjacent to the SH 146 N location. All three locations are south of Palmer Hwy and in or near areas of existing industrial uses.  In 2020 and 2021 respectively, these installations were found most comparable to the District F-1 Outdoor Industrial zoning classification.  Since that time numerous additional applications have been received for sites located in various other zoning districts throughout the city, including several in close proximity to existing residential uses or zoning districts.  Some of the proposed projects include energy generation as a component of the projects.  During reviews of the various applications and presentations to the Planning Board and Zoning Commission, concerns were expressed regarding risk of battery fire, contamination from site runoff, contamination of air and water byproducts of fire surpression in the event of catastrophic failure, and the ultimate cost of decommissioning.  The BESS installations are characterized by their developers as temporary installations.  The review procedures of the District SP - Site Plan process were found to be the most thorough for evaluating the proposed projects in the various locations and zoning districts when presented.  To provide for consistency and uniformity of review, the Planning Board and Zoning Commission are recommending District SP as the exclusive zoning classification for the BESS and similar projects.   The recommendation includes criteria for review of applications as well as requirements and limitations for screening, setbacks, landscaping, maximum impervious area, and other provisions etc., to assist the Planning Board members, Zoning Commissioners and staff with consistent administration and application of the zoning and land use regulations to BESS and similar projects.   

The Planning Board recommended approval of the proposed amendment to the zoning ordinance at its regular meeting on December 18, 2023. The Zoning Commission recommended approval of the proposed amendment to the zoning ordinance at its meeting on  January 16, 2024.Staff recommend approval of the amendment to the zoning ordinance to make the Distrist SP Site Plan the exclusive zoning classification for BESS and similar projects.