Planning commission backs new rules for battery energy storage, recommends special permits in agricultural zones

The Lincoln-Lancaster Planning Commission on June 11 voted 6-0 to recommend a change to the Lincoln Municipal Code establishing “battery energy storage systems” as a regulated land use with safety and siting conditions.

The commission approved the planning department's alternative text that would allow battery energy storage systems (BES) only by special permit in AG (agricultural) zoning and as a conditional use in specified highway and industrial districts, and would require an emergency action plan and safety data to be submitted to the health and fire departments.

Why it matters: Battery storage installations are increasingly proposed across Nebraska as utilities and developers add grid-scale batteries to store and dispatch electricity. Local rules that define where and how they can be built determine whether projects are screened through public hearings and which safety conditions will be mandatory.

What the commission approved: Planning staff recommended an alternate ordinance that removes the public zoning (P) district, allows BES as a special permit in AG zoning and as a conditional use in H3/H4 and I1'13 districts, and includes safety-focused conditions such as an emergency action plan and safety data sheet submissions to Lincoln Fire & Rescue and the health department. The commission's vote was to send that text amendment forward as a recommendation to the City Council.

What proponents said: Planning department planner George Wesselhaw presented the proposal and described it as "a request to amend the Lincoln Municipal Code Utilities use group to add a new use type, a battery energy storage system." Applicant representatives said the technology is already in operation elsewhere and argued for streamlined review in AG when the battery would be sited near existing substations. Justin Adams of Eolian Energy described the storage systems'function: "Essentially, what batteries do for the grid is, they take power when it's in excess, and then they store it, and then they deliver it when there's a greater need for it."

Safety and oversight: Staff and applicants both referenced the industry's standards, including laboratory testing (UL 9540A) and national fire code guidance (NFPA 855). Planning staff noted Lincoln Fire & Rescue reviewed the alternate text and supported the requirement for an emergency response plan. Department staff also pointed out that public utilities such as Lincoln Electric System are exempt from local zoning, meaning LES projects would not be subject to the special-permit process that private developers must follow.

Points of disagreement: The applicant and its attorney (David Levy) pressed for allowing BES as a conditional use in AG if standard conditions were placed in the ordinance; staff opposed that approach on the grounds that AG property owners do not typically expect larger commercial-scale uses and that the public hearing afforded by a special permit is appropriate. Levy told the commission developers would accept many of the conditions but preferred a conditional-use path in AG to streamline approvals.

Next steps: Because this item is a zoning text amendment, the commission's action is a recommendation to the City Council. The council will receive the commission's recommendation and may adopt, amend or reject the ordinance.

Votes at a glance: Planning commission recommendation to the City Council: approve planning department alternative text amendment (6 yes, 0 no).