Cannabis Update
Andrew Firestine
Director of Community and Economic
Development
April 23, 2025
Background
• On February 26, 2025, the City Council extended the cannabis moratorium by 10 months and 15 days
• Council requested routine updates
• Prior report focused on an evaluation of the City’s zoning, locational requirements, definitions, standards, and enforcement provisions, fines, and penalties
Presentation Objectives
• Provide updates on:
• Cannabis research conducted in other cities and counties • Consultant support to set standards and to support the development of an odor control permitting process
• Consultant support to the City related to cannabis odors at C4 Industry • Cannabis odor control reporting and monitoring pilot program Review of Cannabis Regulations – Zoning
• Cannabis uses may be permitted as a conditional use in the Planned Community Commercial (PCC), Commercial Business Park (CBP-2), and Light Industrial (I-1) zoning districts • The PCC zoning district is the most common commercial zoning district in the City and is typified by retail uses and shopping centers throughout the City
• The CBP-2 and I-1 zoning districts are generally clustered around Perez Road
Review of Cannabis Regulations –
Separation Requirements
Minimum Separation Requirement from Use
School, Day-Care Center, or
Youth Center1
Residential Zone2 Resort Residential Zone
Dispensaries 600-feet 250-feet 250-feet, if the dispensary allows for outdoor
consumption
Cultivation, Manufacturing,
and Distribution Sites
600-feet 300-feet -
1 Setbacks from schools, day-care centers and youth centers, shall be measured to the nearest property line of the parcel where such use is located
2 Setbacks from residential zones shall be measured to: the nearest point of any legally permitted structure located in a residential zone; or if there is land within a residential zone with no legally permitted structure, the measurement shall be to the nearest property line unless the nearest property line is within the public right-of-way, in which case the measurement shall be to the edge of the right-of-way furthest from the proposed cannabis business.
Review of Cannabis Regulations – Odor
Control
• Section 9.108.080 requires as a condition of approval:
A. All Cannabis Businesses. Every cannabis business conditional use permit shall include the following conditions of approval.
1. The premises must be equipped with an odor absorbing ventilation and exhaust system so that odor generated inside the cannabis business that is distinctive to its operation is not detected outside the cannabis business, anywhere on adjacent property or public rights-of- way, on or about any exterior or interior common area walkways, hallways, breeze-ways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis business. As such, cannabis businesses must install and maintain the following equipment or any other equipment which local licensing authority determines has the same or better effectiveness:
a. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or
b. An air system that creates negative air pressure between the cannabis businesses' interior and exterior so that the odors generated inside the cannabis business are not detectable outside the cannabis business.
Review of Cannabis Regulations – Odor
Enforcement
• Section 13.80.240.J of the Cathedral City Municipal Code declares a public nuisance:
J. To cause or permit persistent cannabis odors that are offensive to individuals of normal sensitivity, and which adversely impact or unreasonably interfere with the use and enjoyment of property, to:
1. Emanate across any property line.
2. Emanate across a common wall or otherwise be detectable within an adjacent or nearby unit in a multi-tenant building or in a multi-family residential building that is occupied by another.
Cannabis Research – Other Cities and
Counties
• Department of Cannabis Control defines large indoor cultivation licenses as licenses that are 22,000 square feet in size or greater • There are 7 of these across the State, 5 in Oakland,1 in Richmond, and 1 in Cathedral City
• Only the location in Cathedral City was purpose built, all the others were conversions of industrial warehouses
• Except for the Tinnery in Oakland, none of the other licenses are comparable in size to C4 Industry and none are good comparisons
• 84 California cities and counties allow indoor cultivation • Staff conducted an initial review of the cannabis zoning regulations, licensing, and enforcement provisions for each of these cities and counties and identified 15 cities and 3 counties to research further Cannabis Research – Other Cities and
Counties
El Dorado County Hayward Long Beach Desert Hot
Springs
Palm Springs Grover Beach
Santa Barbara
County
Richmond Pasadena Moreno Valley La Mesa Santa Cruz
Stanislaus
County
Lancaster Coachella Palm Desert National City Oakland
Zoning Questions
1. What zoning districts are cannabis cultivation, manufacturing, and lab uses permitted?
2. What separation requirements existing between cannabis uses and either residential zones or uses and other sensitive uses? Identify both the use and the separation requirement.
3. Are there separation requirements between cannabis uses?
4. Are there limits on either the number or size of cannabis uses?
5. What is the definition of a nuisance cannabis odor?
6. What are the odor mitigation requirements, either through a CUP or cannabis license? Are there specific requirements or standards for cultivation and manufacturing uses?
7. Does the city or county require an odor mitigation plan or permit? If so, who is authorized to prepare and submit it? What are the submission requirements? Does it need to be renewed annually as part of the license? Who approves it?
Enforcement Questions
8. What constitutes an odor violation? Are there thresholds or measurements for cannabis odor, either for the concentration of odor or the time period over which it is detected?
9. When there is an odor complaint, how is it investigated? Does the cannabis business have a period of time to correct a violation before a citation or further action is taken? If so, how long?
10. What are the fines for a violation of the cannabis ordinance? Are there penalties beyond fines? If so, what?
11. Are there any unique provisions, such as a hearing officer, that warrant further evaluation? Zoning - Question #1
• What zoning districts are cannabis cultivation, manufacturing, and lab uses permitted?
• Cannabis uses such as cultivation, manufacturing, distribution, and testing labs uses are restricted to industrial zone districts • Dispensaries are permitted in both industrial and retail zones Zoning - Question #2
• What separation requirements existing between cannabis uses and either residential zones or uses and other sensitive uses? Identify both the use and the separation requirement.
• Under the California Business and Professions Code (BPC) Section 26054(b), cannabis businesses shall not be located within a 600-foot radius of a school providing K-12 instruction, a daycare center, or a youth center • Separation requirements from residential uses vary significantly • Palm Springs established a 1,000-foot separation requirement between cannabis cultivation and manufacturing and a residential zoning district • Coachella, Lancaster, and Pasadena each have a 600-foot separation requirement from commercial cannabis uses and residentially zoned property • Grover Beach requires a 100-foot setback between retailers and residential zones
Zoning - Question #3
• Are there separation requirements between cannabis uses? • Palm Desert requires that cannabis retailers be 1,500 feet apart and similarly requires cannabis businesses within their service industrial zoning district to be separated by 1,500 feet
• With some exceptions, Palm Springs requires cannabis businesses be separated by 500 feet
• Long Beach has a 1,000-foot separation requirement between dispensaries
Zoning - Question #4
• Are there limits on either the number or size of cannabis uses? • Other cities place limits on the number of cannabis dispensaries allowed, often setting the cap between three and 10
• Most do not impose limits on other types of cannabis operations, including cultivation, manufacturing, distribution, and testing laboratories • Santa Cruz and Moreno Valley are two cities that have additional requirements for cultivation facilities
• Santa Cruz restricts indoor cultivation to a maximum of 10,000 square feet • Moreno Valley restricts the total area of the premises designated/used for the cultivation canopy to no more than 22,000 square feet
• Pasadena limits cultivation to four licensed facilities Zoning - Question #5
• What is the definition of a
nuisance cannabis odor?
• Nuisance cannabis odor is
not consistently defined
across all city zoning codes
• No objective standard
• Palm Springs and Coachella
• Odor Detection Threshold /
Odor Threshold
Concentration
• Olfactometer
Zoning - Question #6
• What are the odor mitigation requirements, either through a CUP or cannabis license? Are there specific requirements or standards for cultivation and manufacturing uses?
• Consistent standard requiring odor absorbing ventilation and exhaust system
• Exhaust air filtration system with odor control
• Air system that creates negative air pressure between the interior and exterior Zoning - Question #7
• Does the city or county require an odor mitigation plan or permit? If so, who is authorized to prepare and submit it? What are the submission requirements? Does it need to be renewed annually as part of the license? Who approves it?
• Common requirement, including Coachella, Desert Hot Springs, and Palm Springs
• Includes detailed information about the proposed ventilation system, including technical specifications indicating that the system can prevent the release of cannabis odors into the atmosphere from the cultivation or manufacturing operation
• Prepared by a license mechanical engineer
• Post-entitlement submittal
• Annual certification through license renewal
Enforcement – Question #8
• What constitutes an odor violation? Are there thresholds or measurements for cannabis odor, either for the concentration of odor or the time period over which it is detected?
• National City, La Mesa, and Desert Hot Springs require that odor not be detectable at the property line
• El Dorado County uses the St. Croix Sensory Nasal Ranger Field Olfactometer and Santa Barbara County’s new regulations incorporate a nuisance threshold relying on an olfactometer
• Desert Hot Spring and Palm Springs report that they have discontinued use of the Nasal Ranger
Enforcement – Question #9
• When there is an odor complaint, how is it investigated? Does the cannabis business have a period of time to correct a violation before a citation or further action is taken? If so, how long? • Multiple cities and counties require cannabis businesses to respond to cannabis odor complaints, including Santa Barbara County, Long Beach, and Desert Hot Springs
• Palm Springs allows cannabis businesses with a compliant odor control plan seven days to correct an odor issue
Enforcement – Question #10
• What are the fines for a violation of the cannabis ordinance? Are there penalties beyond fines? If so, what?
• Palm Springs has an escalating enforcement process
• Compliant odor control plan
• Written warning
• 7 days to correct
• After 7 days, if the odor cannot be mitigated, the use must cease until effective odor control measures are in place
• Non-compliant odor control plan
• Subject to $10,000 administrative citation
• 30 days to remedy
• Additional $10,000 administrative citations every 30 days • After three administrative citations, the permit is automatically revoked • Desert Hot Springs code allows fines up to $1,000 per day Enforcement – Question #11
• Are there any unique provisions, such as a hearing officer, that warrant further evaluation?
• Stanislaus County established a hearing officer process • Desert Hot Springs contracts with a third-party for all cannabis ordinance and enforcement
• Palm Springs contracts for the review of odor control plans Consultant Support - General
• Scope of work issued on April 14 to four firms with a due date of April 28
• Builds on the city and county research performed by City staff and seeks specific subject matter expertise on cannabis odor control • Focus is on six areas:
1. Regulatory review and best practices assessment
2. Odor control technology evaluation
3. Odor control permitting process
4. Inspection and verification protocols
5. Stakeholder engagement and presentations
6. Training
Consultant Support – Odor Analysis
• Contract has been executed with Hartman Environmental Geoscience for the review of the odor control systems at C4 Industry, both existing and proposed
• They are tasked with providing the City a qualified opinion on the effectiveness of both the current and proposed odor mitigation plans and make specific recommendations to improve the
effectiveness of the existing and any additionally proposed odor mitigation
Envirosuite Pilot Program
• Envirosuite is a leader in environmental intelligence and offers a technology driven, real-time reporting and monitoring service • 6-month pilot program to be launched in May 2025 in the vicinity of C4 Industry
• Improved data collection and reporting
• Environmental monitoring
• Accountability and response timelines
Envirosuite Pilot Program
• Time and date
• Location
• Description
• Contact info
Complaint
Submitted
• Routed to
City
• “New –
Unvalidated”
Initial Routing
• Weather
info from
weather
station
• Sensor data
Environmental
Validation
• Complaint
assigned to
business for
response
• 30-minutes to
initial response
during business
hours (8-6)
• 90 minutes to
initial response
after-hours
Routing to
Business • Led by business
• Investigation
summary within 24-
hours
Investigation
• City reviews
the
investigation
City Oversight
Next Steps
• Training
October
• City Council
September
• Cannabis
Task Force
• Planning
Commission
August
• Review of
Draft
Ordinance
July
• Draft
Ordinance
• Develop
Odor Control
Permitting
Process and
Checklists
June
• Award
contract to
cannabis
consultant
• Assessment
and
Evaluation
May