ZF #2022-0082: Consider a request for a Cannabis Use Permit to allow issuance of a cannabis cultivation license for up to one-half acre of canopy and the issuance of a self-distribution license for California Clean Cannabis, 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 26-acre agriculturally-zoned parcel at 3038 County Road 41, approximately 1,000 feet northwest of the town of Rumsey (APN: 060-260-005). (Applicant: Jordan Karlonas/Owner: Jordan & Sarah Karlonas) (Planner: Jeff Anderson)

That the Planning Commission: 

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 and self-distribution uses. The allowance of up to one-half acre of cannabis canopy for California Clean Cannabis will provide continued business opportunity for the operator to compete in the regulated cannabis industry. The issuance of the self-distribution license will contribute to cost savings and vehicle trip reductions by allowing the operator to distribute products grown and processed on their own site instead of relying on outside distribution services. 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 26-acre agriculturally zoned parcel, located just northwest of the town of Rumsey. California Clean Cannabis first received a license to cultivate cannabis in 2018, but did not begin cultivation activities on the site until 2021. California Clean Cannabis did not cultivate cannabis in license year 2022-2023, but resumed cultivation in 2023. The operator has maintained State and County licenses to allow up to one-half acre of outdoor cultivation canopy; however, they have typically cultivated one-quarter acre 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, California Clean Cannabis is limited to one-half acre of canopy. The existing cultivation area is located within a remnant walnut orchard and currently consists of 10 raised boxes, each measuring 9.6 feet by 10 feet, totaling 9,600 square feet (sf). The total footprint of the cultivation area (including spaces in between the raised boxes) is approximately 19,000 sf. Immediately south of the existing cultivation area is a 1,440 sf shop building that is used for cannabis drying, processing, packaging, product storage, and chemical storage. Additionally, there are multiple shade structures toward the northwest end of the parcel for employee use. In addition to the cannabis related uses and structures, the property contains a primary home lived in by the applicant/property owner and an ancillary home, pole barn, and shipping container used for non-cannabis storage.

The property is served by an existing onsite domestic well and septic system. Access to the property is directly from County Road 41, with internal dirt and gravel roads leading to the outdoor cultivation site.  The majority of cannabis cultivation activities are carried out by the applicant/property owner. Occasionally, four to five seasonal employees are hired through a local labor company for one or two days in spring for planting and three days in fall for harvesting. The labor company provides transportation for all seasonal employees, minimizing employee vehicle trips. One soil shipment occurs in the spring, and trips for other supplies are typically conducted concurrently with the applicant’s personal trips.

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. There is a residence on an adjacent A-N zoned parcel located approximately 800 feet from the existing outdoor cannabis cultivation area. Therefore, the applicant will be required to relocate the outdoor cannabis cultivation area further north and/or east on the property to meet with buffer requirements (Attachment F). All proposed cannabis cultivation would continue to be conducted outdoors in raised beds within the remnant walnut orchard. The total footprint to accommodate the maximum one-half acre canopy is approximately 38,000 sf (.87 acre). Cannabis waste would be composed on-site and/or disposed of in compliance with county and state regulations. The applicant does not propose any new ground-disturbing activities to support the existing and proposed cannabis operations, with the exception of a paved parking 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. The applicant is in discussions with the Environmental Health Division to determine if a variance from septic system requirements for agricultural operations can be issued.  

California Clean Cannabis engages in seasonal cultivation for outdoor cultivation, with the planting generally beginning around May and the harvesting phases ending around October/November. The applicant does not anticipate an increase in employees, and therefore, does not anticipate an increase in daily vehicle trips. The self-distribution license would allow California Clean Cannabis to transport only the goods they cultivate to off-site manufacturing or distribution premises. 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. All exterior lighting is required to be full cut-off, shielded, and downward facing to prevent spill over onto other properties, structures, or the night sky.

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 Intensive (A-N). Pursuant to Article 3, of Chapter 2, of Title 8 of the Yolo County Code, cannabis cultivation uses are allowed in the A-N zone upon issuance of a Cannabis Use Permit. The project meets the development requirements and setbacks prescribed for the A-N 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 of the year after permit issuance documenting compliance with the Cannabis Use Permit requirements.

Project Design and Operation
As described above, California Clean Cannabis is proposing to cultivate up to one-half acre of cannabis canopy, which is what their current license allows, although the applicant has typically only cultivated one-quarter acre of 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. 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 passive controls to reduce and control odors to the greatest extent possible. If odor nuisances are verified pursuant to the enforcement procedure set forth in the CLUO, the operator may employ active controls, such as odor neutralizers for the outdoor canopy and carbon filtration systems for the processing building, as well as passive controls such as additional vegetation barriers, relocation of the outdoor grow area, or different plant strains to minimize the potential for nuisances. 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 domestic well using drip irrigation methods. The applicant estimates that approximately 28,800 gallons of water per year are used for the existing one-quarter acre canopy, and expects water usage to double (57,600 gallons per year) for one-half acre of 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 an intermittent basis under validly-issued county and state licenses since 2021 (California Clean Cannabis first received a license in 2018, but did not begin cultivating until 2021). The project site is located in an agriculturally zoned area and is surrounded by parcels in agricultural production and/or open grazing land, ranging in size from six acres to 47 acres. Cache Creek transects the western portion of the California Clean Cannabis property, flowing north to south. The parcel to the west, across Cache Creek, is farmed in organic row crops, the parcels to the south and east are planted in fruit trees, and the parcels to the north are grazing/pastureland. The project site where the cultivation area will be located is relatively flat and was previously planted in walnuts. According to the applicant, the five-acre walnut orchard, which provides shade cover for the cannabis plants, is approximately 60 years old and has not been farmed in approximately 20 years. The project site, including the cultivation area, is not visible from any public right-of-way. The existing outdoor cultivation area is set back approximately 600 feet from the southern property line (this distance will increase after the applicant relocates the cultivation area to meet CLUO buffers from an off-site residence) and is screened from public view along County Road 41 by mature vegetation. Additionally, there is a nine-acre A-N zoned parcel in between the California Clean Cannabis parcel and County Road 41.

The operator has prepared a security plan and will implement measures to secure the property, such as security cameras, motion detectors, 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-N zone. As described above, the project does not currently meet the buffer requirements from sensitive land uses as set forth in the CLUO. Outdoor cannabis uses (i.e., cultivation) in the Capay Valley must maintain a distance of 1,000 feet from all identified sensitive land uses, which includes off-site individual legal residences located on parcels under separate ownership in any non-residential zone. There is a residence on an adjacent parcel located approximately 800 feet from the existing outdoor cannabis cultivation area. Therefore, should the Cannabis Use Permit be approved, the operator will be required to relocate the outdoor cannabis cultivation area further north and/or east on the property. Attachment F identifies the area where the applicant can relocate the outdoor cultivation area to meet the 1,000-foot buffer requirement from the off-site residence. The buffer requirement for indoor cannabis uses is 100 feet from sensitive land uses in the Capay Valley, which California Clean Cannabis meets. There are 42 agricultural homesites within one-half mile of the California Clean Cannabis boundary. The nearest agricultural homesite is approximately 300 feet east of the California Clean Cannabis 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 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, and that no additional environmental review is required.

SUMMARY OF PUBLIC CORRESPONDENCE
A Request for Comments was distributed to reviewing agencies on April 28, 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 28, 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 one letter from a Guinda resident expressing support for all Cannabis Use Permit projects within the Capay Valley. No other public comments were received throughout the application review process.

The project was presented to the Capay Valley Citizens Advisory Committee on October 11, 2023. 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: 6, Noes: 0). Prior to the vote to recommend approval, several members of the committee commented that they consider California Clean Cannabis to be a good neighbor within the community.  

The Yocha Dehe Wintun Nation (“Tribe”) submitted a comment letter dated May 9, 2023 (Attachment G), stating that the project is within the aboriginal territories of the Yocha Dehe Wintun Nation and therefore has a cultural interest and authority in the proposed project area, but based on the information provided, the Tribe is not aware of any known cultural resources near the project site and a cultural monitor is not needed. The Tribe recommended cultural sensitivity training for any pre-project personnel. A condition of approval has been added to require the operator to request cultural sensitivity training with the Tribe prior to the first construction activities requiring a building permit (i.e., if a permanent restroom and septic system are required per Environmental Health Division requirements).

A public hearing notice was mailed to property owners within 1,000 feet on December 1, 2023, and published in the Davis Enterprise on December 3, 2023.

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