ZF #2022-0089: Consider a request for a Cannabis Use Permit to allow issuance of a cannabis cultivation license for up to 5,000 square feet of canopy for Flower of Life Farm Capay Valley, LLC, and determine the project falls within the scope of the previously certified Yolo County Cannabis Land Use Ordinance Environmental Impact Report and that no further environmental review is required under the California Environmental Quality Act (CEQA). The project is located on a ±121-acre agriculturally-zoned parcel at 7087 County Road 49, approximately 1-mile northwest of the unincorporated community of Guinda (APN: 018-140-037). (Applicant: Justin Byrd/Owner: Road 49 Inc.) (Planner: Jeff Anderson)

The proposed Cannabis Use Permit, if approved, will contain an extensive set of conditions that will regulate the use of the property to conduct cannabis cultivation activities. The allowance of up to one acre of cannabis canopy for Flower of Life Farm Capay Valley (“Flower of Life”) will provide continued business opportunity for the operator to compete in the regulated cannabis industry. The project, as conditioned, is in compliance with the Countywide General Plan, Cannabis Land Use Ordinance, and Yolo County Code.

SUMMARY
The project site is a ±121-acre agriculturally zoned parcel, located approximately 1-mile northwest of the town of Guinda. Flower of Life first received a license to cultivate cannabis in 2017 and has cultivated continuously since then under state and county licenses. Flower of Life currently cultivates less than 5,000 sf of canopy. Pursuant to Section 8-2.1403(F) of the County’s Cannabis Land Use Ordinance (CLUO), cultivation in the Capay Valley is limited to the canopy approved for each licensee as of the effective date of the CLUO (October 14, 2021). As such, Flower of Life is limited to one acre of canopy; however, the operator is only seeking approval to cultivate approximately 5,000 sf of canopy. The existing cultivation area is exclusively indoors and is located within a permitted 5,760 sf greenhouse facility.

The operator currently processes (dries and trims) the cannabis product inside refrigerated truck trailers. However, the CLUO does not allow for the continued use of refrigerated truck trailers for processing. Therefore, the operator proposes to improve an existing 1,148 sf metal garage building with slab foundation, for use as an indoor immature plant, processing and post-harvest storage area, located approximately 280 feet southwest of the existing cultivation area. Should the operator decide not to improve the existing 1,148 sf metal building for cannabis uses, including processing, the operator will contract with a company to pick up the cannabis product immediately after harvesting and transport off-site to a licensed location for processing. The cannabis operation is supported by an onsite well and three 2,500-gallon water storage tanks.

In addition to the existing cannabis related uses and structures, the property contains a primary home occupied by the applicant, a residential garage, and two 8’ x 20’ shipping containers used for non-cannabis storage. Access to the property is from a private road (compacted gravel) via County Road 49, with internal dirt and gravel roads leading to the indoor cultivation site.  The majority of cannabis cultivation activities are carried out by the applicant/property owner. Flower of Life utilizes two to three contract laborers from a licensed labor contractor for a period of five to nine days every two to three months for replanting and for harvesting of the indoor crop. The applicant does not anticipate an increase in employees, and therefore, does not anticipate an increase in daily vehicle trips. Cultivation will occur from September to June—the operator does not typically cultivate in July and August due to increased energy costs and diminished quality of the product from increased temperatures. Delivery of nursery plants and materials will occur once every two to three months during the cultivation season. Should the applicant contract with an outside company to pick up harvested product for off-site processing, it is expected that approximately three trucks would access the property for one day immediately after each harvest. As such, the number of daily trips to and from the project site will typically be less than one, with occasional truck trips occurring  once every two to three months.

The CLUO requires outdoor cannabis cultivation in the Capay Valley to be located a minimum of 1,000 feet from identified sensitive land uses, including off-site residences, with no exception allowances. As a result, Flower of Life ceased outdoor cannabis cultivation operations and exclusively cultivates cannabis indoors, within the greenhouse. Indoor cannabis uses are required to maintain a 100-foot buffer from identified sensitive land uses. The indoor cannabis operation meets the CLUO 100-foot buffer requirement from off-site residences to the north (496 ft), the west (887 ft) the east (983 ft), and the south (2297 ft), as measured from the extent of the greenhouse.

The proposed project results in a reduction in production cultivation from the previously licensed outdoor cultivation, and according to the applicant, has resulted in over 90% reduction in water usage and over a 70% reduction in the footprint of the previous outdoor cultivation operation. As mentioned, Flower of Life previously cultivated up to one-acre of outdoor cannabis canopy. Cannabis waste will be composted on-site in a 40’x40’ secure composting area in compliance with county and state regulations. The operator does not propose any new ground-disturbing activities to support the existing and proposed cannabis operations, with the exception of a paved ADA parking stall adjacent to the processing building, as required by Yolo County Building Division per state building code requirements. Additionally, a new onsite wastewater treatment system (septic system) may be required for a new permanent restroom within the processing building if required by the Environmental Health Division. However, should the applicant decide to contract with a company to process the harvested product off-site, ADA improvements and a permanent restroom would not be required.  As required by the CLUO, the applicant has prepared a security plan for the project site. The operation will maintain adequate utilities, access roads, drainage, and sanitation infrastructure in line with County and State regulations, standards, and specifications.

ANALYSIS
The proposed project has been reviewed for consistency with the Countywide General Plan and the County Zoning Regulations, including the Cannabis Land Use Ordinance (CLUO). The proposal is also consistent with the CLUO Environmental Impact Report, and no further environmental review is required under the California Environmental Quality Act. As explained below, the project, as conditioned, is consistent with all applicable plans, policies, and regulations.

General Plan and Zoning Consistency 
The project, as conditioned, is consistent with the Countywide General Plan. The requested use is proposed on property designated as Agriculture (AG) in the Countywide General Plan. Cannabis cultivation uses, which include activities involving the planting, growing, harvesting, drying, curing, grading, storing, and trimming of cannabis grown onsite, are called out as agricultural activities under the AG land use designation (Policy LU-1.1, and Table LU-4). Further, Policy AG-3.22 reads:

The project furthers policies in the Countywide General Plan that seek to promote a healthy and competitive farm economy to expand the County’s agricultural base, including Policy AG-3.2, which encourages processing on agricultural land subject to appropriate design review and development standards, and Policy AG-3.12 that promotes marketplace-initiated conversion from lower to higher value-added crops and agricultural commodities. The project, when considered as a component of the County’s cannabis industry as a whole, furthers Policy AG-5.1 which promotes markets for locally and regionally grown and/or prepared food and other products and services. 

The subject property is zoned Agricultural Extensive (A-X). Pursuant to Article 3, of Chapter 2, of Title 8 of the Yolo County Code, cannabis cultivation uses are allowed in the A-X zone upon issuance of a Cannabis Use Permit. The project meets the development requirements and setbacks prescribed for the A-X zone.

CLUO Consistency 
As part of the application review process, staff conducted a thorough review of the project against the applicable provisions of the CLUO. The project, as conditioned, is determined to be in compliance with the CLUO. The applicable provisions of the CLUO are included as conditions of approval. The operator is required to submit an annual report on July 1 of each year starting the first July in the year after permit issuance documenting compliance with the Cannabis Use Permit requirements.

Project Design and Operation
As described above, Flower of Life is proposing to cultivate approximately 5,000 sf of cannabis canopy. The project site is served by PG&E and the project is conditioned to achieve Valley Clean Energy ultra-green or equivalent standard (100 percent renewable and 100 percent carbon-free) within six months of project approval. The project is also conditioned to require the use of LED lighting or equivalent or more efficient technology. The operator intends to participate in a PG&E exchange program intended to finance the switch from High Intensity Discharge (HID) grow lights to efficient LED lighting. Indoor lighting is required to be fully controlled so that minimal or no light escapes. Outdoor lighting is required to be full cut-off, shielded, and downward facing so it does not spill over onto other properties, structures, or the night sky.

The CLUO addresses odor impacts through limiting the location of cannabis uses, and establishing buffers for outdoor cannabis uses, odor control requirements, and enforcement procedures. However, while these measures may minimize the likelihood of nuisance odors, the potential for odors to occur remains and was considered a significant and unavoidable impact in the CLUO EIR. The applicant submitted an odor control plan that describes the odor emitting activities and the administrative and engineering controls to reduce and control odors to the greatest extent possible. The odor control system in the greenhouse facility filters the exhaust from the indoor canopy to reduce exterior nuisance odors. The greenhouse is equipped with a ventilation system that uses inline fans and charcoal filters. Additionally, the operator uses an odor neutralization gel throughout the A/C ducting system to remove residual odors. The operator also implements administrative controls, such as weekly inspections to ensure efficiency of filters, entry and exit points are properly sealed, and doors and windows are functioning properly. The odor control plan identified that typical winds are expected to blow mainly from the north-northwest and south-southeast, parallel with the valley.

The project relies on groundwater from an onsite well. The applicant estimates that approximately 0.829- acre feet of water per year are used for the existing 5,000 sf canopy. The CLUO EIR analyzed groundwater that would be used for cannabis crops and compared that to average groundwater use for other non-cannabis crops. The analysis demonstrated that the amount of groundwater used for cannabis activities under each of the CEQA Alternatives would be similar to the amount used for other crops likely to be grown on the property in the absence of contemplated cannabis uses. The high end of the analysis estimated the cumulative use of all cannabis operations in the County could reach 424-acre feet per year, which equates to approximately the average groundwater used by an orchard of about 131 acres.  

Site Setting 
Cannabis cultivation and associated uses, such as onsite processing, are permitted in agricultural zones with a Cannabis Use Permit. The operator has been cultivating cannabis on a continuous basis under validly-issued county and state licenses since 2017. The project site is located in an agriculturally zoned area and is surrounded by parcels in agricultural production and/or livestock grazing land, ranging in size from ten acres to 591 acres. There are approximately 18 residences on agriculturally zoned parcels within one-half mile of the project site. The parcels to the north and west are farmed in seasonal hay crops, the parcels to the south are planted in almonds and used for livestock grazing, and the parcels to the east are planted in olives and fruit trees.  The cultivation area is located in a relatively flat pasture and has been previously farmed in seasonal hay crop and cannabis. The indoor cultivation area is not visible from the public right-of-way. The terminus of County Road 45 is lined with mature trees, which block the views of the existing greenhouse approximately 1,200 feet west. Additionally, there is an approximately ten-acre A-N zoned parcel in between the Flower of Life parcel and County Road 45.

The operator has prepared a security plan and will implement measures to secure the property, such as security cameras, alarms, and administrative controls. The operator also is required to provide property owners within 1,000 feet of the property line with an operable method of communication with a local or on-site responsible party having prompt access to the site, operations, and activities. This requirement facilitates communication between neighbors related to conditions at the site and operation of the activities.

Buffers and Setbacks
All existing structures, including the existing processing building, meet the setback requirements for the A-X zone. The existing indoor cultivation area is set back approximately 35 feet from the northern property line and is screened from public view from County Road 45 by mature trees/vegetation. The buffer requirement for indoor cannabis uses is 100 feet from sensitive land uses in the Capay Valley, which Flower of Life meets. The nearest agricultural homesite is approximately 496 feet north of the Flower of Life property boundary.

Compliance History 
The Department of Community Services—Cannabis Unit maintains compliance and complaint history dating back to 2019 when the cannabis program moved from the Agriculture Department to the Department of Community Services. The operator has not received a Notice of Violation from the Cannabis Unit and no formal nuisance complaints have been lodged with the Cannabis Unit during this time.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) REVIEW
The Cannabis Land Use Ordinance Environmental Impact Report (CLUO EIR) was prepared as a programmatic EIR for adoption of the CLUO and to support streamlined review of individual permit applications pursuant to CEQA Guidelines Sections 15168, 15162, and 15183. If the County finds that an individual project is within the scope of the CLUO EIR, its environmental impacts are adequately addressed in the CLUO EIR, and applicable mitigation measures are applied to the project, then no further environmental review is required. Staff prepared a project-specific CLUO Program EIR Checklist (Attachment C) that examines the conclusions reached in the CLUO EIR for each relevant CEQA impact category identified in the CLUO EIR and Appendix G of the CEQA Guidelines. Staff determined that the proposed project activities are within the scope of the CLUO EIR, that no additional environmental review is required.

SUMMARY OF PUBLIC CORRESPONDENCE
A Request for Comments was distributed to reviewing agencies on April 7, 2023. Comments received from reviewing agencies were incorporated into the Conditions of Approval (Attachment E) where applicable. A Courtesy Notice was also distributed on April 7, 2023, to the Planning Division’s interested parties list and mailed to property owners within 1,000 feet of the property boundary of the subject parcel. The Courtesy Notice summarized the existing and proposed operations as provided in the application materials. Staff received an email from a Guinda resident expressing support for all Cannabis Use Permit projects within the Capay Valley, which includes Flower of Life. Staff also received an email from a nearby property owner stating concerns about the scale of the operation, power usage, odor, and effect on property values. Another email was received asking for clarity on the relationship between the applicant and the cannabis business. Staff followed up with the two commenters who expressed concern about the project to provide additional clarification. No other public comments were received throughout the application review process. All comment letters are included as Attachment F.

The project was presented to the Capay Valley Citizens Advisory Committee on August 7, 2024. The meeting was attended by staff, applicant/property owner, and several members of the community. The committee and members of the community discussed the components of the project and asked questions of staff and the applicant. The committee unanimously recommended approval of the project (Ayes: 7, Noes: 0, Abstention: 0). Prior to the vote to recommend approval, several members of the committee commented that the applicant has proved himself to be a good operator and appreciated that the cannabis use is away from adjacent homes.

In June 2023, The Yocha Dehe Wintun Nation (“Tribe”) identified the Flower of Life property as being within a cultural resource buffer zone and recommended the County deny the cannabis use permit. Section 8-2.1408(E) of the CLUO identifies tribal cultural resources as a sensitive land use and requires a 1,000-foot buffer between cannabis uses (outdoor and indoor) and tribal cultural resources.  County staff spent many months coordinating with the Tribe on this issue to gain a better understanding of the Tribe’s position and the cultural resource buffer zone. In April 2024, the Yocha Dehe Tribal Council discussed the Flower of Life project along with three other cannabis use permit applications located near identified tribal cultural resources. The Tribal Council sent the County a letter dated May 7, 2024 (Attachment G) stating that the proposed Flower of Life cannabis operations are within a cultural resource or tribal trust land buffer, and the Tribe has no objections to the project, as proposed, with the inclusion of tribal monitoring for any ground disturbance activities and with the inclusion of three specific measures, which have been added to the project’s conditions of approval. The applicant has agreed to the measures, which include surveying the boundaries of the environmentally sensitive area and recordation of a deed restriction, cultural resources sensitivity training, and allowing tribal representatives to inspect the environmentally sensitive area on an annual basis.

A public hearing notice was mailed to property owners within 1,000 feet and to interested parties who previously provided comments on August 30, 2024, and published in the Davis Enterprise on September 1, 2024.

Staff consulted with Agricultural Commissioner’s Office, Building Division, Public Works Division, Environmental Health Division, various agencies and interested parties, and has received input from the Office of County Counsel.

Any person who is dissatisfied with the decisions of this Planning Commission may appeal to the Board of Supervisors by filing a notice of appeal with the Clerk of the Board within fifteen (15) days from the date of the action. A Planning Commission Appeal Form and appeal fee immediately payable to “County of Yolo” must be submitted at the time of filing. The Board of Supervisors may sustain, modify or overrule this decision. The Planning Commission Appeal Form can be accessed at the following link: https://www.yolocounty.org/government/board-of-supervisors/clerk-of-the-board/planning-commission-appeal