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HomeMy WebLinkAbout9.b. Zoning Ordinance Text Amendment to Allow Combined Heat and Power Plants as a Conditional Use Within the HI-Heavy Industrial Zoning District and Amend Section 11-1-4 Definitions EXECUTIVE SUMMARY City Council Regular Meeting:August 16, 2016 AGENDA ITEM: Zoning Ordinance Text Amendment to Allow Combined Heat and Power Plants AGENDA SECTION: as a Conditional Use Within the HI-Heavy New Business Industrial Zoning District and Amend Section 11-1-4: Definitions. PREPARED BY: Anthony Nemcek, PlannerAGENDA NO. 9.b. ATTACHMENTS: Draft Ordinance, Excerpt from the July APPROVED BY: ddj 26, 2016 PC Minutes RECOMMENDED ACTION: Motion to Approve a Zoning Ordinance Text Amendment Adding Combined Heat and Power Plants as a Conditional Use in the HI-Heavy Industrial Zoning District and Amending Section 11-1-4: Definitions. SUMMARY This item was initiated by staff in response to a request by Flint Hills Resources to construct a combined heat and power (CHP) plant at its refinery. The proposed amendment is based on a review of conditions placed upon similar facilities within other communities along with conditions that would be pertinent to the Rosemount community. Should the City Council approve this amendment it would allow combined heat and power plants within the HI – Heavy Industrial zoning district as a conditional use. BACKGROUND Flint Hills Resources has been in the process of making improvements to its refinery at 12555 Clark Road in an effort to reduce emissions and increase efficiency. Combined heat and power plants, also called cogeneration plants, allow an operator to generate their own electricity from heat that is already being produced as part of the refining process. Staff reviewed conditions placed on similar facilities throughout the United States and Canada to develop the text amendment. Several of the conditions in the amendment were added to ensure the combined heat and power plant was subordinate to the primary use on the site. Additionally, conditions were drafted that would allow a combined heat and power plant only on sites where similar uses were already taking place and would maintain compliance with existing Code provisions. JULY 26 PLANNING COMMISSION MEETING The Commissioners had few questions regarding the proposed text amendment. ChairKenninger sought clarification that approving a combined heat and power plant would mean that anyone who wanted to build one would have to come before the Commission and City Council. Staff confirmed that all conditional use permit applications must undergo a public hearing with the Planning Commission and be approved by Council. The Planning Commission also modified Condition #6 to include the phrase “whichever is lower.” TEXT AMENDMENT Combined heat and power, or cogeneration, plants are not currently permitted in any zoning district in Rosemount. While the request from Flint Hills Resources is the first of its kind, staff believes that combined heat and power plants can be an appropriate use in the HI – Heavy Industrial zoning district with the proper conditions applied. Furthermore, combined heat and power plants help the City of Rosemount’s efforts toward increased sustainability. Below is the staff recommended text amendments that add combined heat and power plant to the definitions and add combined heat and power plants as a conditional use in the HI – Heavy Industrial District. 11-1-4: DEFINITIONS: generates electricity and useful thermal COMBINED HEAT AND POWER PLANT: A facility that energy in a single, integrated system. Also known as cogeneration, or cogen, plants. 11-4-16-1: HI HEAVY INDUSTRIAL DISTRICT: D. Conditional Uses: The following uses are conditional uses in the HI heavy industrial district and are subject to the conditional use permit provisions outlined in this title. These uses are also subject to the site and building standards outlined in subsection 11-4-16G of this chapter of the general industrial district, except as specifically exempted below: Motor freight terminals. Truck stops subject to the requirements outlined in the GI district in subsection 11-4-16D of this chapter. Warehousing, wholesaling and distribution of nonheavy manufacturing materials. Combined heat and power plants, subject to: 1.The combined heat and power plant is customarily incidental and subordinate to the primary use of the site and must support existing processes within the facility. A minimum of 80% of power generated by the CHP plant must be utilized by the facility. 2.For the sale of power from the combined heat and power plant to remain incidental and subordinate to the primary use (i.e., the Refinery), the sale of excess power cannot exceed 30% of the total amount of power needed to operate the principal use. This 30% limit, however, cannot be calculated based upon the total amount of power that can theoretically be generated by the CHP plant. Rather, the 30% sale limitation must be based upon: (1) thecriticalload and ancillary load demand of the refinery itself; and (2) necessary redundancy power. 3.The owner/operator of the combined heat and power plant may not sell any power in excess of the maximum power sale amounts set forth herein without the advance consent of the City; the City shall only consider such a request by the owner/operator of the Facility in the event of a crisis or casualty (i.e., a tornado, or other similar disaster). 4.The facility must have a single owner at all times. 5.The owner/operator of the combined heat and power plant is prohibited from selling, transferring or otherwise providing power to any third party user directly, and shall only sell, transfer, or otherwise provide power, if at all, to the City, Xcel Energy, Dakota Electric, and shall only export power through an interconnection with the regional electric grid. 6.Maximum height of any structure cannot exceed that allowed by the zoning ordinance or that of any existing structures within the facility, whichever is lower. 7.The project must comply with all other applicable zoning code provisions for the HI-Heavy Industrial zoning district with regard to site and building requirements as well as performance standards. 8.The project must comply with all requirements of state and federal agencies. 2 9.Landscaping plans must take into account sightlines from neighboring rights of way and land uses that differ from the project. 10.The CHP plant cannot exceed the principal structure in square footage, height, or massing as determined by the City. 11.The parcel where the CHP plant is located must be greater than 100 acres. CONLUSION Staff recommends approval of the attached draft ordinance amending Section 11-1-4: Definitions and Section 11-4-16-1: HI-Heavy Industrial District. 3 EXCERPT OF DRAFT MINUTES PLANNING COMMISSION REGULAR MEETING JULY 26, 2016 6.e. Request by Flint Hills Resources for a Zoning Ordinance Text Amendment to Allow Combined Heat and Power Plants as a Conditional Use Within the HI-Heavy Industrial Zoning District.(16-31-TA) Planner Nemcek gave a brief overview of the staff report. Commissioner Clements inquired what the intent of restricting the amount of generation, if they have access steam why let them. Nemcek stated the intent is to support an existing use on the site and not the main use on the site. They really want to avoid a large power plant in Rosemount. Chair Kenninger inquired if there are any other users that might be interested in a combined heat and power plant that has less than 100 acres. Planner Nemcek stated there are none that staff could identify. Kenninger also inquired about which height requirement supersedes. Nemcek stated it reads or, but it could be added to state the lesser of the two. The public hearing was opened at 10:19 pm. Public comments: Don Kern, the applicant, was on hand to take any questions Frank Knoll, representing St. John’s Church, inquired about the height, if it is the stack height or the building Nemcek stated it would be the stack height. Comment is for next item on the agenda. Cynthia Sievert, 14180 Blaine Avenue, stated she lives close to plant and she didn’t get a notice but her neighbors did. When they added the parking lot traffic increased. She also wonders what will happen to air quality, will there be gas emissions, what are the safety issues there are, and can it be moved. MOTION by Forester to close the public hearing. Second by Clements and Mele. Ayes: 5. Nays: 0. Motion Passes. The public hearing was closed at 10:25 pm. Additional Comments: Chair Kenninger asked to speak on Cynthia’s questions. Nemcek said there are some emissions, an environmental assessment has been submitted, and natural gas is a cleaner burning product. Kenninger also confirmed that anyone else wanting to do this would have to come before the commission for approval. Motion by Foresterto Recommend that City Council Approve a Zoning Ordinance Text Amendment Adding Combined Heat and Power Plants as a Conditional Use in the HI-Heavy Industrial Zoning District and Amending Section 11-1-4: Definitions. Adding the modification to condition 6 to change wording to whichever is lower. Second by Clements. Ayes: 5. Nays: 0. Motion Passes. City of Rosemount Ordinance No. B-252 AN ORDINANCE AMENDING THE CITY OF ROSEMOUNT ZONING ORDINANCE BRELATING TO DEFINTIONS AND CONDITIONAL USES WITHIN THE HI-HEAVY INDUSTRIAL ZONING DISTRICT THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS that Ordinance B, adopted September 19, 1989, entitled “City of Rosemount Zoning Ordinance,” is hereby amended as follows: Section 1. Rosemount Zoning Ordinance B, Section 11-4-16-1.D: Conditional Uses: The following uses are conditional uses in the HI heavy industrial district and are subject to the conditional use permit provisions outlined in this title. These uses are also subject to the site and building standards outlined in subsection 11-4-16G of this chapter of the general industrial district, except as specifically exempted below: Motor freight terminals. Truck stops subject to the requirements outlined in the GI district in subsection 11-4-16D of this chapter. Warehousing, wholesaling and distribution of nonheavy manufacturing materials. Combined heat and power plants, subject to: 1.The combined heat and power plant is customarily incidental and subordinate to the primary use of the site and must support existing processes within the facility. A minimum of 80% of power generated by the CHP plant must be utilized by the facility. 2.For the sale of power from the combined heat and power plant to remain incidental and subordinate to the primary use (i.e., the Refinery), the sale of excess power cannot exceed 30% of the total amount of power needed to operate the principal use. This 30% limit, however, cannot be calculated based upon the total amount of power that can theoretically be generated by the CHP plant. Rather, the 30% sale limitation must be based upon: (1) the critical load and ancillary load demand of the refinery itself; and (2) necessary redundancy power. 3.The owner/operator of the combined heat and power plant may not sell any power in excess of the maximum power sale amounts set forth herein without the advance consent of the City; the City shall only consider such a request by the owner/operator of the Facility in the event of a crisis or casualty (i.e., a tornado, or other similar disaster). 4.The facility must have a single owner at all times. 5.The owner/operator of the combined heat and power plant is prohibited from selling, transferring or otherwise providing power to any third party user directly, and shall only sell, transfer, or otherwise provide power, if at all, to the City, Xcel Energy, Dakota Electric, and shall only export power through an interconnection with the regional electric grid. 6.Maximum height of any structure cannot exceed that allowed by the zoning ordinance or that of any existing structures within the facility, whichever is lower. 7.The project must comply with all other applicable zoning code provisions for the HI- Heavy Industrial zoning district with regard to site and building requirements as well as performance standards. 8.The project must comply with all requirements of state and federal agencies. 9.Landscaping plans must take into account sightlines from neighboring rights of way and land uses that differ from the project. 10.The CHP plant cannot exceed the principal structure in square footage, height, or massing as determined by the City. 11.The parcel where the CHP plant is located must be greater than 100 acres. Other uses similar to those in this district as determined by the board of appeals and adjustments, subject to issuance of a conditional use permit. (Ord. B-175, 10-17-2006; Ord. B-248, 7-21-2015) Section 2. Rosemount Zoning Ordinance B, Section 11-1-4 Definitions: For the purpose of this title, certain words contained herein shall be defined as follows: COMBINED HEAT AND POWER PLANT: A facility that generates electricity and useful thermal energy in a single, integrated system. Also known as cogeneration, or cogen, plants. Section 3.EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage and publication according to law. th ENACTED AND ORDAINED into an Ordinance this 16 day ofAugust, 2016. CITY OF ROSEMOUNT ________ William H. Droste, Mayor ATTEST: Clarissa Handler, City Clerk