Exhibit D - PLZM-25-0107- Project H20 Rezone Modification-Narrative-CC20260303.pdf
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Rev. 1 9 December 2025 Page 1 of 7 City of Buckeye Planning and Zoning Permit Modification of Stipulations Request PLZM-25-0107 Project H20 Rezone Request to revise Ordinance No. 18-23 to remove a stipulation limiting development to a hydrogen production facility. Fortescue 28702 W. Patterson Road Buckeye, Arizona 85326 APN 40166038 2R PLZZ-25-0107 RECEIVED DEC 10 2025 WD Rev. 1 9 December 2025 Page 2 of 7 Joseph Mueller Senior Planner City of Buckeye 945 N. 215th Ave. Suite 137 Buckeye, AZ 85326 7 October 2025 Dear Joseph Mueller, Ordinance No. 18-23 Modification of Stipulations Request Fortescue (the Applicant) requests the City of Buckeye amend or modify Ordinance No. 18- 23 conditions to remove the provisions outlined in Section 3 of the ordinance requiring that "all present and future owners of the Property shall develop the Property in accordance with the requirements of the 'Project H2O Hydrogen Hub Minor General Plan Amendment and Rezoning Applications' project narrative" and to also delete, and/or revise corresponding conditions (a), (b), and (d) attached to the ordinance as follows: a. Delete: Development of the property shall be in general conformance with the Project Narrative entitled “Project H2O Hydrogen Hub Minor General Plan Amendment and Rezoning Application” project narrative consisting of 20 pages, dated February 28, 2023, and stamped received February 28, 2023, except as modified by the following conditions. b. The site plan and other imagery provided within the rezoning narrative are strictly conceptual and may require modifications to achieve conformance with City requirements and policies in response to comments provided with review of a Site Plan application for the project. Additional stipulations pertaining to development of the site will also be provided as part of the project's Site Plan review. d. Prior to issuance of any permits for development, the developer shall submit, and the Buckeye Fire Department shall approve, any emergency response plan related to a future operation of the site as a hydrogen production facility. Policy changes and market uncertainty have created headwinds for both clean and low- carbon hydrogen development. Striking the provisions outlined in Section 3 in Ordinance No. 18-23 will remove the "hydrogen only" development requirement of the subject parcel and allow other industrial development opportunities to occur at the project site as permitted in the Heavy Industrial (I-2) zone per City of Buckeye Development Code Chapter 7, Article 3.1 (City of Buckeye 2025). Fortescue is currently assessing multiple development options for the property, including a potential data center and other industrial developments. Background The subject parcel is located approximately 13 miles south of the center of Buckeye and 1 mile west of State Route 85. The subject parcel is in the southeast corner of a larger 920- acre property. site consists of agricultural fields. Agricultural land surrounding the property Rev. 1 9 December 2025 Page 3 of 7 includes limited development which supports the agricultural use of the property, including a mobile home, water wells, farm equipment storage building, and an equipment storage area. The subject 157-acre parcel, ID 40166038, was rezoned in 2023 from Rural Residential (SF- 43) to I-2 zoning. A general plan amendment was completed concurrently to change the land use designation of the 157 acres from Rural to Employment (Resolution 29-23). The approving ordinance for the rezoning, Ordinance 18-23, included a restriction limiting development to only a proposed hydrogen production facility proposed by Nikola Corporation (a manufacturer of heavy-duty commercial battery electric vehicles, fuel-cell electric vehicles, and energy infrastructure solutions). The hydrogen facility, referred to as the Hydrogen Hub, was proposed with an ultimate buildout goal of producing up to 150-300 metric tonnes per day of clean liquid hydrogen. The proposal indicated that the Hydrogen Hub was necessary to expand the current network of hydrogen production, distribution, and dispensing planned for North America. However, since the City of Buckeye passed Ordinance 18-23, the policy environment surrounding clean hydrogen has considerably shifted. The Trump administration’s One Big Beautiful Bill Act, passed on July 4, 2025, imposes stricter eligibility requirements for clean energy tax credits and accelerates the phase-out of clean energy tax credits that previously supported hydrogen production from renewable sources (ACTNews 2025). In addition, the U.S. Department of Energy (DOE) is considering cutting funding to hydrogen hubs, which, coupled with the new administration's limited regulatory pressures on reducing emissions, further weakens domestic demand for low-emissions hydrogen (Hydrogen Insight 2025). Since City provided utilities, such as water and wastewater, do not extend to the property, any future development will likely source water from onsite groundwater wells. Similarly, onsite wastewater treatment systems will be required for any wastewater streams, such as evaporation ponds and a septic system. General Plan and Development Code Conformance The General Plan is a strategic framework that guides the development and decision-making process. The Development Code (City of Buckeye 2025) is a regulatory document that outlines allowable uses, development standards, setbacks, zoning, design standards, and subdivision requirements, among other topics. A proposed development must be consistent with both documents. Following Resolution 29-23, the 157-acre site’s General Plan land use designation is “Employment.” Figure 1 (below) illustrates the current land use designation of the site and surrounding area. Figure 1. General Plan Land Use Designations Rev. 1 9 December 2025 Page 4 of 7 Per the City of Buckeye’s General Plan, “Employment” is defined as follows (City of Buckeye 2022): The Employment designation denotes areas of development that have a focus on employment opportunities that contribute to the overall local and regional economy. This may include industrial uses, such as warehouses and manufacturing facilities, as well as business parks. Industrial uses should be buffered and/or separated from existing or planned residential uses. Planned Area Developments (PAD) within a larger center to accommodate ancillary business services and eating and retail establishments may also be appropriate in this land use designation. Uses within the Employment designation should have vehicular access to major arterials. Underlying zoning districts consistent with this land use designation are: 1‐ 1, I‐2, BP, and PO. Heavy Industrial (I‐2) zoning without a PAD or CMP Overlay must be located at least ½ mile from a Neighborhood Land Use designation. Following the rezoning effort approved with Ordinance 18-23, the entire 157-acre parcel is currently I-2 zoning (see Figure 2). As such, the subject parcel’s zoning is consistent with the Buckeye General Plan “Employment” land use designation. Figure 2. Zoning The City’s I-2 zoning district is intended for heavy industrial development such as heavy manufacturing, storage, and distribution centers (City of Buckeye 2025). Allowing the site to accommodate not only hydrogen uses, but other heavier industrial uses align with the existing fabric of the surrounding area. The majority of the properties adjacent to the site are within an obsolete zoning district, General Commerce (GC), that was intended to accommodate general commercial, employment, and industrial land uses. Surrounding uses within this zoning district include the Lewis Arizona State Prison Complex and the Phoenix Municipal Landfill. Northeast of the site, across from SR-85, is the Southwest Regional Landfill. The site’s location, adjacent to similar employment type uses and within close proximity to State Route 85 (approx. ½ mile) and the State of Arizona’s Lewis Correctional Facility, makes the site a logical choice for appropriately scaled industrial development as it is unlikely to be a desirable location for residential use. The expanded employment use in the area does not encroach upon residential or neighborhood uses because a buffer of more Rev. 1 9 December 2025 Page 5 of 7 than a ½-mile will be provided to separate the ‘Neighborhood’ designated land uses farther to the northwest of the site. The proposal to expand industrial development options at the site, beyond hydrogen-only use, is consistent with the following General Plan goals and policies (City of Buckeye 2022): Goal G-3: Non-residential development is considerate of existing and future adjacent residential land uses. Policy G-3.6 Business Commerce and Employment designated lands should provide appropriate buffers and or setbacks when adjacent to existing or future residential land uses. Goal G-7: Buckeye has a strong employment base providing a range of job opportunities with competitive salaries. Policy G-7.1 The City of Buckeye should identify and protect areas suitable for large scale office park and industrial activities, such as distribution, logistics, manufacturing, and other employment type uses within the City’s MPA. Policy G-7.3 The City of Buckeye will have an average of one-to-one jobs per household. Policy G-7.4 The City of Buckeye should protect existing industrial development from encroachment by incompatible development. Policy G-7.5 Employment uses should mitigate potential negative impacts of associated operations including negative impacts to the natural environment. Goal G-9: Buckeye has an expansive and diverse economy. Policy G-9.2 The City of Buckeye should continue business attraction efforts that focus on the City’s Targeted Economic Sectors. Policy G-9.3 The City of Buckeye should protect its primary industrial and commercial corridors (areas with access to highways and railroads) from conversion to nonemployment uses or encroachment by uses that would limit future uses on these sites. Goal G-11: Buckeye is an economic leader in Maricopa County. Policy G-11.2 The City of Buckeye will maintain and build on its relationship and partnership with Greater Economic Council (GPEC) and Arizona Commerce Authority (ACA). These goals and policies indicate that the City of Buckeye is committed to fostering a diverse economy, a strong workforce, and an always-improving local economic environment. The City has therefore identified seven different Targeted Economic Sectors that are designed to accomplish these goals. Among these sectors is the ‘Manufacturing, Logistics and Rev. 1 9 December 2025 Page 6 of 7 Distribution’ sector. The Hydrogen Hub development previously proposed at this site was consistent with the City’s target sectors. However, due to market factors (described above under Section I), the Hydrogen Hub is not currently a viable option for development at this site. As a result, with the current language in Section 3 of Ordinance No. 18-23, no alternative development at the site can occur, even if permitted in the I-2 zone per City of Buckeye Development Code Chapter 7, Article 3.1. Conclusion The City’s “Employment” land use designation and I-2 zoning district are intended for heavier industrial development such as heavy manufacturing, storage, and distribution centers. Allowing the site to accommodate not only hydrogen uses, but other heavier industrial uses align with the existing fabric of the surrounding area and is consistent with the City’s General Plan and Development Code. By amending the ordinance to remove the “hydrogen-only” conditions in Section 3, the City maximizes its ability to expand and diversify its economy by facilitating alternative industrial developments, as permitted in the I-2 zone. Therefore, the Applicant petitions the City of Buckeye to consider this request to modify Ordinance No. 18-23 conditions and remove the provisions outlined in Section 3 of the ordinance requiring that "all present and future owners of the Property shall develop the Property in accordance with the requirements of the 'Project H2O Hydrogen Hub Minor General Plan Amendment and Rezoning Applications' project narrative" and to also remove conditions (a) through (k) attached to the ordinance. Yours sincerely FORTESCUE Christy McDonough Approvals & Environment, North America Enc. Attachment 1 Signed Application Form Attachment 2 Signed Planning Processes Fee Worksheet Attachment 3 Citizen Participation Plan Cc Chris Henderson, Fortescue Eric Hawkinson, Jacobs Chris McHan, Jacobs Rev. 1 9 December 2025 Page 7 of 7 References Advanced Clean Tech News (ACTNews). 2025. “Senate Approves ‘One Big Beautiful Bill’ with Clean Energy Rollbacks.” https://www.act-news.com/news/senate-approves-one-big- beautiful-bill-with-clean-energy-rollbacks/. City of Buckeye. 2022. 2040 General Plan – Imagine Buckeye. https://www.buckeyeaz.gov/home/showpublisheddocument/6300/637928096311900000. City of Buckeye. 2025. Buckeye Development Code (Chapter 7). https://library.municode.com/az/buckeye/codes/code_of_ordinances?nodeId=CD_ORD_CH 7DECO. Hydrogen Insight. 2025. “Trump's One Big Beautiful Bill Act has given the US hydrogen industry certainty — but where will the green energy come from?” July 29. https://www.hydrogeninsight.com/policy/analysis-trumps-one-big-beautiful-bill-act-has-given- the-us-hydrogen-industry-certainty-but-where-will-the-green-energy-come-from-/2-1- 1850597.