McPHERSON, Kan. — About 30 people attended an in-person informational meeting on emerging technologies Thursday at the Cedars Conference Center. The meeting, which also had participants via Zoom, was organized by the McPherson County Planning, Zoning, and Environmental Department to provide a “top level” view of things such as data centers, battery energy storage systems (BESS), and hydrogen storage facilities, which temporary moratoriums are now in place for, along with small-scale nuclear facilities, the first of which in the nation is now under construction near Parsons.
Planning and Zoning Administrator Jon Kinsey first gave an overview of what is involved in each of those, including recent developments in how BESS systems are set up, and what they could look like. He then took a look at various infrastructure considerations that would be looked at, ranging from data and electricity requirements, fire suppression, lighting, roads, safety, security, water, stormwater management and the actual zoning process for them.
While BESS and data centers have been well publicized, The other two technologies have not been up to now. Kinsey noted McPherson County, along with Rice County, have been identified as ideal sites for hydrogen facilities based on the existing presence of underground storage caverns in the area.
The nuclear project now under construction at Parsons involves a new technology placing small reactors around a mile below the ground surface. These reactors would have a lifespan of between two and seven years, and once that has passed another reactor would be placed atop the old one.
With respect to fire suppression, Kinsley said this could involve either water or chemical suppression and what kind of access there would be for fire apparatus. Much of this would likely involve chemical suppression due to how water reacts with lithium type batteries commonly used in these facilities.
This issue is one that is currently under discussion on the state level. The state of Kansas currently is under the 2006 edition of the International Fire Code, which is the oldest version used by any state according to McPherson Fire Chief Chad Mayberry. Many cities are under newer versions of this code, but most unincorporated areas fall under state guidelines.
Where this comes into play, according to Chief Mayberry, is that BESS and data centers have not even been mentioned in the codes until the current version issued in the 2024 edition of the code. Fire service officials are working to address this in the next legislative session. Currently there is legislation pending dealing with regulations regarding disposal of lithium batteries, which can catch fire if they come in contact with water.
Fire matters also play into road considerations, in particular as it relates to the ability of fire trucks to get into these facilities, and the type or road surface involved.
Water issues to be considered include use of private wells versus municipal water systems. Either way, as an industrial use, the Kansas Department of Agriculture’s Division of Water Resources would be involved as to obtaining water rights.
McPherson Industrial Development Company executive director Kasi Morales voiced concerns about current moratoriums. “We feel that a moratorium is something that has marketing implications that we’re not trying to set for future business in McPherson,” Morales said, adding they feel they have mechanisms in place to address concerns.
Some speakers at the meeting suggested rather than calling it a moratorium it should be called a pause as the county develops regulations for them. Morales said the Board of Public Utilities has been proactive in developing its own policies related to electrical needs of these facilities, including payment up front for electrical infrastructure needs.
Morales pointed out when an industry looks at McPherson, they do a cost-benefit analysis to determine if incentives should be provided. It takes into consideration capital investment, jobs created, and other infrastructure needed to make a project successful. Morales pointed out not every project that comes across their desk ends up in McPherson.
In response to a question from Daryl Larson of rural McPherson about whether these would be good for McPherson or good for the people, she noted that analysis factors into that determination. Also talked about were property tax abatements given for such projects. It was also pointed out during discussion some school taxes are not exempt when tax abatements are given.
The present moratoriums which run through Sept. 1 for BESS and hydrogen storage projects, and for data centers through Dec. 1 only apply to unincorporated areas of McPherson County. There are data centers now in operation in the city of McPherson.
Nick Vontz operates two such centers on the west side of the city. During the meeting Vontz noted he did not ask for any incentives from the city or county, and is paying sales tax on the power he uses for them, which generates around 30 thousand dollars a month for the city and for McPherson County. Electricity used in manufacture of goods, such as by local industries, is exempt from paying sales tax by state law.
“There’s so much demand for this. We’ve created jobs already,” Vontz said, noting his two centers have 7-8 employees, who are purchasing homes and paying sales and property taxes.
Vontz also noted his equipment is air cooled rather than water cooled, and some centers are utilizing geothermal closed loop systems as another option. Overall, Vontz said data centers and BESS projects, in his opinion, is “all good for us.”
One speaker raised concerns about the potential of foreign ownership of these facilities, along with concerns about future ownership transfers. This relates largely to facilities that are built by one party, and then sold to another such as a firm that would actually be using it. Kinsey said current regulations related to special use permits would require any new owner to go through the full permitting process as part of a sale.
Among those taking part in the session online was Saline County Commissioner Joe Hay Jr. Saline County recently denied a conditional use permit request for a some 20 acre BESS project near Mentor, and Hay indicated they are looking at a 12 month pause on BESS and data center projects to allow them to get all regulations in line and “make a good decision.”
All three McPherson County Commissioners were present, as were representatives from a number of cities in the county. County Commissioner Tom Kueser described regulations as a “playbook” on how these systems would look and their impact on the community. Kueser added he has a lot of questions about these projects. “Anytime something brand new comes in, I feel we have a very critical obligation to that, and be very careful of that,” Kueser explained.
County Commissioner David O’Dell pointed out the new Comprehensive Plan for the county adopted last year includes a section dealing with emerging technologies, and calls on community leaders to stay informed about new renewable energy and production technologies that may become available in the near future, which the current discussion is what he called a proactive step.
O’Dell added preservation of farmland is a key part of the comprehensive plan, and as regulations are developed this will be an important consideration.
County Commissioner Keith Becker, who represents Kansas on the board of the National Association of Counties, said during the meeting conversations like this are taking place in counties across the country, and it’s something counties are very concerned about.
McPherson City Commissioner Gary Mehl said the current discussions are not unlike discussions that took place at the time the current Board of Public Utilities was established. Mehl said the county should not be afraid to “take a chance” and said the moratorium should be referred to as a pause, which he felt is more reflective of what is currently taking place.
