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File #: 26-0283    Version: 1 Name:
Type: Action Item Status: Agenda Ready
File created: 3/26/2026 In control: BOARD OF SUPERVISORS
On agenda: 4/7/2026 Final action:
Title: 1:00 P.M. - PUBLIC HEARING - Consideration of Ordinance to Amend Chapter 21, Article 27 of the Lake County Code regarding Commercial Cannabis Regulations (Continued from March 10, 2026)
Sponsors: Community Development
Attachments: 1. Farmland Protection Zone Boundaries, 2. Table of Code Amendments, 3. Approved Projects Zoning_Size_Setbacks, 4. Odor Control Plan Requirements_Yolo County, 5. Sampler for Terpenes, 6. Public Comment_Benjamin Mitchell, 7. Public Comment_Forest Nikola Elie, 8. Public Comment_Kassouni Law, 9. Public Comment_Sky Laiwa Item 6.10.pdf
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Memorandum

 

 

Date:                                          April 7, 2026

 

To:                                          The Honorable Lake County Board of Supervisors

 

From:                                          Mireya G. Turner, Community Development Director

                                          Mary Claybon, Senior Planner

 

Subject:                     1:00 P.M. - PUBLIC HEARING - Consideration of Ordinance to Amend Chapter 21, Article 27 regarding Commercial Cannabis Regulation

 

Executive Summary: At the Board meeting on March 10, 2026, the Board received a presentation from Staff regarding the following draft amendments to Article 27.

                     Setbacks from off-site residences

                     Maximum canopy

                     Applicant and Property Owner Identification and Background Checks

                     Operating Hours

                     10-year Permit Duration and Renewal

                     Opt Out and Reduced Canopy Options

                     Exclusion Areas

                     Farmland Protection Zone - development standard

                     Riparian Setbacks

                     Annual Performance Review - Reports and Process

                     Incomplete and Abandoned Applications

                     Setbacks from hemp cultivation

                     METRC - Track and Trace Tags

                     Other nonsubstantive amendments, including grammar corrections and removal of Community Development Department from Background Check Evaluation to reflect current process

 

After the public hearing, the Board directed Staff to confer with the Lake County Air Quality Management District on options to minimize odor impacts between cannabis cultivation and processing, and off-site residences. Additionally, the following further amendments and research were requested:

 

                     Minimum canopy during a Reduced Canopy season

                     Fine for missing filing deadline for Opt Out & Reduced Canopy request

                     Multiple site visits for mixed light/indoor cultivation during Reduced Canopy year

                     Public posting of Annual Inspection Reports

                     Add Minor Use Permit for Cannabis Retail in “C2” Community Commercial zoning district

                     Add $5,000 Surety Bond requirement

                     Review available data for options for reduce odor impacts to offsite residences

                     No change to Farmland Protection Zone boundaries (maps included as Attachment 1)

 

Further amendments to the draft Ordinance are in process to reflect the above (included in Attachment 2), and corrections noted by Supervisor Sabatier at the last meeting. The Board asked for a report on existing permits, specific to size of canopy permitted, base zoning district, and distance from nearest offsite residence. This report is included as Attachment 3.

 

Reduced Canopy Request - Minimum Canopy Required

Licensees are able to notify the State Cannabis Control Department of a reduction of canopy on an annual basis. The smallest cannabis cultivation license for outdoor cultivation (Type 1c) allows for up to 2,500 sf outdoor and mixed light, and up to 500 sf indoor. Alternatively, the Board could set a minimum canopy based on a percentage of the total canopy approved. Staff has no preference on either option.

 

Reduced Canopy and Opt Out - Missing Deadline to File - Fines

Staff has begun work with County Counsel to establish a fine for not filing a Reduced Canopy/Opt Out Request before the June 1st deadline.

 

Reduced Canopy - Compliance Monitoring Site Visits for Mixed Light/Indoor Cultivation - A second compliance monitoring site visit will be required during the calendar year for mixed light and indoor permits.

 

Annual Inspection Reports - Public Access

Staff will reconfigure the Annual Inspection Report to separate any proprietary and/or confidential information and will upload these reports to the electronic permitting system as a public record.

 

Cannabis Retail - Permitting Requirement                     

The draft Ordinance will been modified to remove the use by right, and add a Minor Use Permit requirement for Cannabis Retail in the “C2” Community Commercial Zoning District, and add the Minor Use Permit requirement to the Table at Section 27.13.

 

Surety Bond

The draft Ordinance will be modified to add a required $5,000 surety bond to every commercial cannabis cultivation permit, listing the County of Lake as obligee.

 

Odor impacts

Staff met with Air Pollution Control Officer Doug Gearhart and discussed a number of studies and guidelines regarding toxins and hazards, though none were specific to cannabis. Staff also reviewed the Programmatic Environmental Impact Report prepared for the County of Sonoma for their cannabis regulation update. Based on this research, Staff recommends the combination of use of inverse square for setbacks varying by size of canopy and starting at 800’ for a canopy of ≤10,000 sf, Permittee participation in the Western Weather Group, and addition of any/all of the options listed below, in order to decrease the setback to no less than 1,000 feet from the nearest offsite residence. This reduction in setback would require substantiation by an Odor Control Plan, demonstrating that the odor can be reduced to no more than a 7:1 ratio of clean air  to odor, at the property line. Additional odor minimizing options include:

 

                     Site selection and layout, avoidance by design to maximize distance and topographic shielding between flowering plants and neighbors recommended during Pre-Application Conference (pre-proposal stage).

                     Use prevailing-wind analysis to place grows downwind of receptors where feasible

                     Use vegetative windbreaks, shelterbelts, or fencing to promote vertical dispersion and dilute odor, recognizing these are partial measures.

                     Stagger planting and harvest to avoid a single, large peak-odor period, or limit total canopy during flowering if neighbors are close.

                     Manage waste (fan leaves, stalks, trim) promptly via covered containers, rapid composting, or off-site removal to avoid extra odor sources beyond live plants.

 

 

The recent discussions with Air Quality Management District also established the requirement for an air filtration permit from the Air Quality Management District for cultivation and processing taking place within a structure and using air filtration systems to minimize odor. Department Staff was unaware of this requirement is reviewing current permits and pending applications for its inclusion and enforcement.

 

The table below illustrates an inverse square approach to setbacks between cannabis canopy and offsite residences, with both 200’ and 800’ at 10,000 sf canopy options.

 

Setback (from Offsite Residence(s)

Inverse Square (Baseline: 200’ setback for 10,000 sf canopy

Inverse Square (Baseline: 800’ for 10,000 sf canopy)

Up to 10,000 sf

200

800

≤One acre

417

1670

≤5 Acres

933

3734

≤10 Acres

1320

5280

≤20 Acres

1867

7467

 

The inverse square formula does not take into account the other possible criteria that could minimize the impacts, such as positioning the cultivation site downwind, or establishing vegetative windbreaks.

 

Yolo County requires Odor Control Plans as part of their application for cannabis related permits. The submittal requirements (Attachment 4) set an allowable threshold for cannabis odors from all cannabis uses as a dilution-to-threshold (D/T) ratio of less than seven parts clean or filtered air to one-part odorous air (7:1) at the property line of the site. They require an Odor Control Plan be certified by a Professional Engineer, Qualified Odor Professional, or Certified Industrial Hygienist. One challenge to this approach locally, is identifying a weather station in Lake County which could provide the windroses data necessary for the wind pattern evaluation part of the report. It is possible that the Western Weather Group could provide information about the availability of weather data closest to a project location. Staff is working confirm this availability.

 

Recommended Action: Staff requests direction from the Board regarding any amendments to setbacks, as well as any other amendments, and continuing the public hearing and first reading to the next available meeting date.