HomeMy WebLinkAboutOrdinances - 2019-19 - Amending EWMC Chapter 17.08, 17.74 cryptocurrency, data processing, cargo containers - 11/5/2019City of East Wenatchee, Washington
Ordinance No. 2019-19
An Ordinance of the City of East Wenatchee amending the East Wenatchee Municipal Code to add new definitions in chapter 17.08, amend sections 17.66.050, 17.72.150, and chapter 17.74 and add a new section 17.72.270 adopting zoning controls relating to cryptocurrency mining operations, data processing, and regulating the use of cargo containers, containing a severability clause, and establishing an effective date.
Una ordenanza de la ciudad de East Wenatchee que modifica el Código Municipal de East Wenatchee para agregar nuevas definiciones en el capítulo 17.08, enmendar las secciones 17.66.050, 17.72.150 y el capítulo 17.74 y agregar una nueva sección 17.72.270 que adopta controles de zonificación relacionados con la minería de criptomonedas operaciones, procesamiento de datos y regulación del uso de contenedores de carga, que contienen una cláusula de separación, y el establecimiento de una fecha de vigencia.
1. Alternate format.
1.1. Para leer este documento en otro formato (español, Braille, leer en voz alta, etc.), póngase en contacto con el vendedor de la ciudad al alternatformat@east-wenatchee.com, al (509) 884-9515 o al 711 (TTY).
1.2. To read this document in an alternate format (Spanish, Braille, read aloud, etc.), please contact the City Clerk at alternateformat@east-wenatchee.com, at (509) 884-9515, or at 711 (TTY).
2. Recitals.
2.1. The City of East Wenatchee (“City”) is a non-charter code city, duly incorporated and operating under the laws of the State of Washington.
2.2. Cryptocurrency mining or bitcoin mining is a process where computers work continuous to solve algorithms to maintain and build an algorithmic chain, or blockchain, and in exchange are granted cryptocurrency. Cryptocurrency is a term encompassing code-based protocols supporting an electronic, non-physical media for the exchange of value, a form of virtual currency.
2.3. Virtual currency is regulated by the state of Washington in RCW 19.230 the Uniform Money Services Act.
2.4. The process of cryptocurrency mining uses specialized computer hardware typically consuming electricity on a continuous basis, creating a Non-Diverse Load situation which can produce significant impacts on electrical distribution infrastructure and may create a fire safety hazard.
2.5. The monetary value of cryptocurrencies fluctuates and recently has been
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achieving high market prices. The high value of the cryptocurrency coupled with the region’s low electricity rates have made this community extremely attractive for locating cryptocurrency mining operations.
2.6. Since this is generally a new technology, energy consumption characteristics of cryptocurrency mining was not envisioned in the development of the community’s infrastructure plans. Many systems are not designed for high energy loads necessitated by cryptocurrency mining.
2.7. If the current trends continue where cryptocurrency mining becomes increasingly prevalent, the Douglas County Public Utility District (PUD) may not be able to meet the community’s electricity consumption needs in a timely manner and therefore the community would not be able to accommodate its projected growth without the siting and construction of significant electrical infrastructure including power substations and transmission lines.
2.8. The City has reviewed its codes and ordinances related to cryptocurrency uses in a comprehensive manner to determine what amendments are necessary to more adequately address the siting and permitting process for such facilities.
2.9. The City Council adopted Ordinance 2018-06 on March 27, 2018 establishing interim regulations for such uses.
2.10. The Planning Commission held a public workshop on April 26, 2018.
2.11. A public hearing was held by the City Council on May 8, 2018 regarding the interim regulations.
2.12. A joint workshop with the City Council and Planning Commission was held on July 26, 2018.
2.13. The City Council adopted Ordinance 2018-21 on November 13, 2018 extending the interim regulations for such uses. The interim regulation ordinance will expire on November 13, 2019.
2.14. A public hearing was held by the City Council on December 11, 2018 regarding the interim regulations adopted in Ordinance 2018-21.
2.15. The Planning Commission held public workshops on May 28, 2019 and on July 23, 2019.
2.16. On August 27, 2019, the East Wenatchee Planning Commission held an open-record public hearing and voted unanimously (6-0 Johnson, Birks, Brawley, Hunter, Palmer, & Travis) to recommend that the City Council adopt the proposed code amendments.
2.17. On September 3, 2019 the Department of Commerce sent notice of the approval of expedited review for the proposed code amendments.
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3. Authority.
3.1. RCW 35A.11.020 and RCW 35A.12.190 authorize the City Council to adopt ordinances of all kinds to regulate its municipal affairs and appropriate to the good government of the City.
4. Purpose. The purpose of this zoning control is to regulate the development and operation of cryptocurrency mining operations, data processing and the use of cargo containers within the City to the extent permitted under State and federal law.
THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE DO ORDAIN AS FOLLOWS:
5. Amendment 1. The City Council adds a new definition section 17.08.142 to the East Wenatchee Municipal Code (EWMC) to read as follows.
“Cargo Container” means a standardized, reusable storage and transport unit, designed without an axle or wheel which was originally, specifically or formally designed for or used in the packing, shipping, movement or transportation of freight, articles, goods or commodities; and was designed for or capable of being mounted or moved on a rail car; chassis or bogie, or similar transportation device, for movement by truck trailer or loaded on a ship.
6. Amendment 2. The City Council adds a new definition section 17.08.192 to the East Wenatchee Municipal Code (EWMC) to read as follows:
“Cryptocurrency” means a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Bitcoin is the most common example of cryptocurrency.
7. Amendment 3. The City Council adds a new definition section 17.08.193 to the EWMC to read as follows:
“Cryptocurrency mining” means the operation of specialized computer equipment for the primary purpose of mining one or more blockchain based cryptocurrencies such as Bitcoin. This activity typically involves the solving of algorithms as part of the development and maintenance of a blockchain which is a type of distributed ledger maintained on a peer-to-peer network. Typical physical characteristics of cryptocurrency mining include specialized computer hardware with a Non-Diverse Electrical use for mining operations as well as equipment to cool the hardware and operating space. For the purposes of the associated regulations, cryptocurrency mining does not include the exchange of cryptocurrency or any other type of virtual currency nor does it encompass the use, creation, or maintenance of all types of peer-to-peer distributed ledgers.
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8. Amendment 4. The City Council adds a new definition section 17.08.194 to the EWMC to read as follows:
“Data Center” means a facility where the primary use is to house and operate networked computer systems and associated components that include, but may not be limited to, power supply, data communications connections, environmental controls, and security devices. Facilities or operations that meet the definition of “Cryptocurrency mining” will be regulated under that land use designation.
9. Amendment 5. The City Council amends the Home Occupation chapter at EWMC 17.66.050 to read:
17.66.050 Prohibited uses. The following uses are deemed to be prohibited:
A. Clinics or hospitals;
B. Adult entertainment facilities;
C. Mortuaries or funeral homes;
D. Commercial print shops;
E. Rental of trailers;
F. Restaurants and cafes;
G. Veterinary clinics or hospitals, stables or kennels;
H. Painting, detailing, service or repair of any vehicle, including recreational vehicles and water craft;
I. Retail sales of goods not made on the premises, except as provided in EWMC 17.66.030(I);
J. Outdoor storage of building or construction materials not intended for immediate use in or on the premises;
K. Marijuana production, marijuana processing, marijuana retailer, and medical marijuana collective gardens; and
L. Cryptocurrency mining; and
M. All other uses which do not comply with the intent of this chapter or the standards set forth in EWMC 17.66.030 and 17.66.060, or the definition of a home occupation set forth in EWMC 17.08.320.
10. Amendment 6. The City Council amends EWMC 17.72.150 to read:
17.72.150 Storage and display standards. A. General. All permitted storage shall be located entirely within an enclosed building or shall be screened from view of the surrounding properties with a sight-obscuring and/or landscaping in accordance with the requirements of
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EWMC 17.72.080(A) for Type I landscaping, except as otherwise required by this title.
1. No storage of materials shall be located within any required front yard.
2. Storage of scrap lumber, metals, glass and other material sold or offered for sale is prohibited within residential classifications.
3. The placement and use of Cargo cargo containers, railroad cars, and semi-truck trailers and other similar storage containers proposed as accessory storage or any other purpose shall be prohibited, except for the temporary use of such containers to secure materials, tools and equipment at a construction site during an active construction project that has received a building permit from the City. All such containers shall be removed from the site prior to final inspection and/or issuance of a certificate of occupancy for the project for which the building permit was issued. The placement of said containers related to an active, permitted construction project must comply with setbacks and applicable building and fire safety codes. The cargo container must be placed on level ground or a concrete pad that adequately supports all four corners of the container. No stacking of containers is permitted. modified to reflect the character of the lot and surrounding neighborhood. In all zoning districts, the modifications must include siding materials, pitched roof, removal of wheels and other similar features. In commercial zoning districts, the modifications must also comply with the Greater East Wenatchee Urban Design Standards and Guidelines.
B. Display/Exhibits. The display of products or outdoor exhibits for public view or show is permitted; provided, that products for sale or rent are stored or displayed outdoors only during business hours and that such products are not located within any pedestrian walkways, parking areas or rights-of-way. Displays of automobiles, boats, farm equipment, and recreational vehicles intended for sale or lease are exempt from this provision, provided they are located within an approved display area.
11. Amendment 7. The City Council adds a new Section 17.72.270 Cryptocurrency mining to read as follows:
17.72.270 Cryptocurrency mining Cryptocurrency mining operations are permitted only within the General Commercial and General Industrial District Zoning District. In addition to compliance with the requirements for those Zoning Districts all projects must meet the following standards, unless otherwise regulated within this code:
A. Applications shall be processed as an administrative review under Type IB if exempt from SEPA review or a Type IIA if not exempt from SEPA review under EWMC 19.01.030.
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B. No cryptocurrency mining operation may cause adverse or detrimental effects to adjoining lessees, owners, or residents that diminish the quality of life or increase the costs of serving their business or maintaining their homes.
C. The use of cargo containers, railroad cars, semi-truck trailers and other similar storage containers for any component of the operation is strictly prohibited.
D. Prior to issuance of a building permit, the applicant shall provide written verification from Douglas County Public Utility District (PUD) that the PUD has calculated the potential electrical consumption of the proposed use and has verified that the utility supply equipment and related electrical infrastructure is sufficiently sized and can safely accommodate the proposed use.
E. Prior to City issuance of a certificate of occupancy, the applicant must provide a copy of the Washington State Department of Labor and Industries electrical permit and written verification that the electrical work has passed a final inspection.
F. New structures proposed for use as data centers or for cryptocurrency mining shall meet the Treatment of Blank Walls guidelines found in the Greater East Wenatchee Urban Growth Area Design Standards & Guidelines unless the project is located within the General Industrial Zoning District.
G. All cryptocurrency mining and data center operations, including all ancillary equipment/operations for purposes such as cooling, shall be designed, constructed, operated, and maintained so as not to cause the dissemination of dust, smoke, glare, heat, vibration or noise in excess of the maximum environmental noise level established by EWMC chapter 9.25 or Chapter 173-60 WAC beyond the property line or affecting adjacent buildings. Violation of these established noise levels will result in revocation of a City Business License pursuant to EWMC chapter 5.04 and any other applicable penalties.
H. Within 30 days of commencing operations, the owner/operator of the facility shall provide to the City an affidavit that includes the following information:
1. Name and qualifications of the person who measured the decibel levels
2. Equipment used to measure the noise volume
3. Location of the noise measurements depicted on a scaled site plan. The points of measurement shall be at all property lines and generally at the points on those property lines most susceptible to noise from the applicable equipment.
4. Decibel levels measured at each property line
5. A description of the operating conditions of the applicable equipment when the measurements were taken.
6. Time and duration of measurements
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7. A statement attesting to the accuracy of the information provided and a guarantee that the project proponent will not run their equipment at a more intense or noisier state than when the measurements were taken.
8. The City reserves the right to require independent verification of noise measurements and/or to request additional measurements at different points on the property. All measurements must comply with the noise levels established in Chapter 173-60 WAC and EWMC chapter 9.25.
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12. Amendment 8. The City Council amends EWMC chapter 17.74 to read:
13. Findings of Fact and Conclusions of Law. The City Council adopts as its findings of fact the recitals set forth above and those listed below.
13.1. Findings of Fact
13.1.1. Amendments to the East Wenatchee Municipal Code (EWMC) adopting development standards including definitions and other performance measures relating to cryptocurrency mining operations, data processing, and the use of cargo containers.
EWMC Chapter 17.34
2002 NAICS Land Use Description
G-C MU WMU CBD
Information
Book, Music, Software Publishers P P
Motion Picture and Video Production P P
Motion Picture and Video Distribution P P
Motion Picture Theaters (except Drive-Ins)P P P P
Drive-In Motion Picture Theaters P P
Teleproduction and Other Postproduction Services P P
Other Motion Picture and Video Industries P P
Record Production P P
Integrated Record Production/Distribution P P
Sound Recording Studios P P
Other Sound Recording Industries P P
Radio Stations, Radio Networks, Television Broadcasting P P
Cable and Other Subscription Programming P P
Wired Telecommunications Carriers P P
Paging P P P
Cellular and Other Wireless Telecommunications P5 A2 A2 P5
Telecommunications Resellers P P
Satellite Telecommunications P P
Cable and Other Program Distribution P P
Other Telecommunications P P
Internet Service Providers P P
Web Search Portals P P
Data Processing, Hosting, and Related Services P P
Cryptocurrency Mining P
News Syndicates P P
Libraries and Archives P P P P
All Other Information Services P P
All Other Information Services (Tourist Related--Information Booths)P P
EW Urban Area
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13.1.2. The City of East Wenatchee has adopted the Greater East Wenatchee Area Comprehensive Plan in accordance with the Growth Management Act (GMA), RCW Chapter 36.70A, which cover the unincorporated areas of Douglas County within the East Wenatchee Urban Growth Area and the City of East Wenatchee.
13.1.3. The Greater East Wenatchee Area Comprehensive Plan (2018) reflects the community’s preferred future and contains goals and policies. The goals and policies from the comprehensive plan stress that development should occur when infrastructure is available to support the project and in a manner that is compatible with surrounding uses and preserves and protects the community’s quality of life.
13.1.4. The East Wenatchee Planning Commission is responsible for long range planning matters and providing implementation recommendations to assure compliance with the Growth Management Act in coordination with Douglas County.
13.1.5. RCW Chapters 36.70 and 36.70A authorize the adoption of development regulations.
13.1.6. The East Wenatchee City Council adopted Ordinance 2018-06 on March 27, 2018 establishing interim regulations for cryptocurrency mining.
13.1.7. The Planning Commission held a public workshop on April 26, 2018.
13.1.8. A public hearing was held by the City Council on May 8, 2018 regarding the interim regulations in Ordinance 2018-06.
13.1.9. A joint workshop with the City Council and Planning Commission was held on July 26, 2018.
13.1.10. The City Council adopted Ordinance 2018-21 on November 13, 2018 extending the interim regulations for such uses. The interim regulation ordinance will expire on November 13, 2019.
13.1.11. A public hearing was held by the City Council on December 11, 2018 regarding the interim regulations adopted in Ordinance 2018-21.
13.1.12. The Planning Commission held public workshops on May 28, 2019 and on July 23, 2019.
13.1.13. On August 19, 2019, a Notice of Intent to adopt development regulation amendments was transmitted to the Washington State Department of Commerce with a request for expedited review as required by RCW 36.70A.106.
13.1.14. The East Wenatchee Planning Commission has reviewed the entire record and public testimony as it relates to the proposed amendments to
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the East Wenatchee Municipal Code.
13.1.15. Cryptocurrency is a term encompassing code-based protocols supporting an electronic, non-physical media for the exchange of value.
13.1.16. Cryptocurrency mining is a continuous process where computers work to solve algorithms to maintain and build an algorithmic chain, or blockchain, and in exchange are granted cryptocurrency. The process relies upon continuous use of specialized computer hardware which creates an intensive electrical demand.
13.1.17. The electrical demand necessary for cryptocurrency mining is taxing the existing electricity distribution and service infrastructure throughout various parts of the community and has the potential to create a life-safety fire hazard.
13.1.18. The energy consumption characteristics of cryptocurrency mining was not envisioned in the development of the community’s plans as they pertain to accommodating future growth.
13.1.19. High consumption of electricity for cryptocurrency mining may limit the Douglas County Public Utility District’s (PUD) ability to meet the community’s electricity consumption needs which may limit the ability of the City and County to accommodate its projected growth without the siting and construction of significant electrical infrastructure.
13.1.20. An Environmental Checklist was prepared on August 19, 2019. A threshold determination and environmental review pursuant to RCW 43.21C the State Environmental Policy Act was completed, and a Determination of Non-significance was issued on August 20, 2019 with no comment period.
13.1.21. Advertisement of the Planning Commission’s public hearing was published in the Wenatchee World on August 16, 2019 and posted on the City’s web site.
13.1.22. Any Finding of Fact that is more correctly a Conclusion of Law is hereby incorporated by this reference.
13.1.23. The East Wenatchee Planning Commission held a duly advertised open-record public hearing on August 27, 2019.
13.2. Conclusions of Law
13.2.1. The proposal is consistent with and implements policies in the Greater East Wenatchee Area Comprehensive Plan.
13.2.2. Approval of the proposal will not be detrimental to the public health, safety, and general welfare.
13.2.3. Proper legal requirements of RCW 36.70A.106 and Title 19 EWMC
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were met and the community and state agencies were given the opportunity to comment on the proposal at duly noticed public workshops and a public hearing.
13.2.4. It is the determination of the lead agency that no more than a moderate effect on the environment is a reasonable probability as a result of the proposed action. The proper exercise of the threshold determination process as required by WAC 197-11 is than an environmental impact statement is not required to be prepared for this project.
13.2.5. The proposed amendments have been processed in a manner consistent with the requirements of the Revised Code of Washington and the Washington Administrative Code.
13.2.6. Any Conclusion of Law that is more correctly a Finding of Fact is hereby incorporated by this reference.
14. Publication. The City Council directs the City Clerk to publish a summary of this Ordinance. The summary shall consist of the title of this Ordinance. The City Council directs the City Clerk to publish a copy of this Ordinance on the City’s website.
15. Submittal of Notice of Adoption. In accordance with RCW 36.70A.106, this Ordinance shall be transmitted by the Community Development Director to the Washington State Department of Commerce within 10 days of adoption.
16. Effective Date. This Ordinance becomes effective five days after the date its summary is published.
17. Severability. If a court of competent jurisdiction declares any provision in this Ordinance to be contrary to law, such declaration shall not affect the validity of the other provisions of this Ordinance