Douglas County Planning Officials to Explore Potential Energy Storage, Data Center, Cryptocurrency Mining Regulations

Photo taken by: Josie Heimsoth/Journal-World

The Douglas County Commission held a meeting at the Douglas County Public Works Building, 3755 E 25th St., on Wednesday, July 31, 2024.

After several requests from energy storage companies interested in expanding their operations into Douglas County, the county’s Zoning and Codes Department will begin the process of developing detailed rules for these types of uses, as well as high-tech data storage and cryptocurrency mining operations.

At its meeting Wednesday, the County Commission voted 2-0, with Commissioner Shannon Reid absent, to initiate an amendment to the zoning and land use regulations to add battery storage systems, data centers and digital asset recovery facilities — such as those that use sophisticated computer systems to mine cryptocurrency — as conditional uses in certain zoning areas.

There won’t be any changes to the code for a long time, but County Planner Karl Bauer said it’s important to get the process started because the county has received inquiries from energy storage companies interested in locating their facilities in Douglas County, including one the county received in May.

“Right now, it’s not clear in the zoning code whether they’re allowed or not,” Bauer said. “They may be allowed as a primary utility, but we don’t have any new, specific standards for these energy storage batteries and systems.”

Battery storage systems — similar to those used by solar and wind farms — data centers and cryptocurrency mining operations are becoming increasingly common across the country, especially in unincorporated areas. Bauer mentioned that one such project was proposed last year in Jefferson County. As the Kansas Reflector reports, Crypto Colo Center Corp. wanted to build cryptocurrency mining facilities just north of McLouth. That plan fell through in the face of opposition from energy companies, the Sierra Club, the McLouth City Council, the Jefferson County Redevelopment Office and numerous local residents.

Any specific changes to the regulations would need to be approved by the County Commission at a later date, after the proposed changes are formally written. Bauer said the planning team doesn’t plan to write an amendment to the text right away. Instead, they hope to start a community discussion about whether these activities should be allowed as conditional uses in designated zoning districts with special standards or banned altogether. Douglas County Zoning and Codes expects to hold a work session in the future after staff does more research on the topic.

Douglas County Commissioner Karen Willey said there are many issues that need to be examined in these types of projects.

“I have a big learning curve in some of these applications,” Willey said. “I don’t have a lot of love (for them), but I realized I still have a lot to learn about it.”

In other matters, district commissioners:

• The Lawrence Chamber of Commerce approved a request for $105,000 for a minority-owned startup lending program.

In 2023, county leaders had questions about how the loan program would work, the Journal-World reported, and decided to delay disbursing the funds so the program could be examined in more detail first. Ahead of Wednesday’s meeting, the House said in its motion that it believed it had provided all the information the committee was seeking.

Commissioner Patrick Kelly said that after talking with members of the Diversify Douglas County team, he thought it was a program he would like to see expanded and grow. Kelly said he appreciates the work being done and wants to see the program become more known in the community.

• Authorized the County Administrator to sign an amended external funding agreement with Lawrence-Douglas County Public Health for $57,833 to fund two positions.

The agreement includes $27,500 to fund a Zero Suicide coordinator and $27,333 for an advanced practice registered nurse position. The County Commission approved additional funding for the Zero Suicide coordinator on June 12, the Journal-World reported, and further support was also included in the county’s 2025 budget.

The nurse position will be a full-time position with Lawrence-Douglas County Public Health. It will support the Lawrence-Douglas County Fire Medical Mobile Integrated Health program, the City-County Homeless Response Team, and the LDCPH clinic and mobile clinics, including the Lawrence Community Shelter.

• A text amendment process has been initiated to change the home business regulations. The Douglas County Department of Zoning and Codes wants to make some updates to the regulations, including a review of the existing fee system, improved standards for equipment and material storage and automotive repair language, a “permitted by operation of law” provision for certain types of businesses, and new provisions to allow very low impact businesses in accessory buildings.

Any detailed changes to the regulations will need to be approved by the County Commission at a later date, once the proposed changes have been formally developed.

• A special event permit application from The Burning Barrel was approved to allow an outdoor concert, known as “The Prairie Crawl,” on Sept. 7 from 2 to 11 p.m. at 292 North 2100 Road, about 3 miles west of Lecompton. The concert will feature live music, food and drink vendors and an artisan market. Some neighbors of the property expressed concerns about the event during public comment, including one who worried that the nearby event could worsen her health.

• A proclamation was signed for National Health Center Week in Douglas County. According to the memo, National Health Center Week is intended to recognize more than 1,400 Community Health Center organizations across the country.