Planning Commission — Thursday, October 10, 2019

..Title ..Body MEMORANDUM TO: Planning Commission FROM: Michalyn DelValle, Community Development Director Byron Turner, Principal Planner DATE: September 23, 2019 SUBJECT: Major Use Permit, UP 19-14 Variance VR 19-03 Categorical Exemption, CE 19-28 Supervisor District 4 ATTACHMENTS: 1. Vicinity Map 2. Site Plan 3. Floor Plan 4. Project Description and Management Plans (Available upon request) 5. Proposed Conditions of Approval 6. Agency Comments EXECUTIVE SUMMARY: Ophira Processing, LLC is a cannabis processor, proposing to take the raw cannabis plant and extracting oils using food grade ethanol. The resulting oil will be sold wholesale for use in cannabis consumer products including concentrates, topicals, and edibles. The processing (manufacturing) will take place in an existing 3,555 sq. ft. structure, which was used in the past as an appliance repair shop, and other industrial uses. Ophira Processing, LLC intends to process approximately 5,000 lbs of biomass a month or 15,000 lbs per quarter. The anticipated workflow allows for the monthly input of biomass to be delivered on the first of the month. The biomass will be completely processed and deemed useless by the last day of the month and will be picked up for disposal. There will be very little traffic associated with the business as no customers will have access to the facility and deliveries are limited to one or two days per month. The vehicle used for deliveries will be the size of a cargo van. EXTRACTION PROCESS Ethanol extraction is a process that has been used to create natural by-products from many different types of plants in order to collect desirable compounds while leaving behind the undesirable compounds and unusable plant material. The applicant proposes food grade ethyl alcohol to extract cannabinoids and terpenes. These compounds provide the aroma, flavor and effect of the final product. Ethanol extraction is a single-stream process that can be conducted under warm or cold conditions. This technique essentially uses alcohol that has been significantly cooled and then drips through the packed flower material, stripping the cannabinoids and terpenes during the process. Distillation then separates the cannabinoids from the alcohol creating a pure, solvent free extract. The advantage to this approach is that the extraction is time efficient and of relatively low solvent-to-feed ratio. Ethanol is a solvent capable of extracting cannabinoids and terpenes efficiently. It also has a relatively low boiling point, which makes it easy to remove from the final product, and a favorable toxicological profile including FDA limits in the range of 0.5 percent. Overall, ethanol extraction is an effective process most suited to high-throughput, bulk-processing laboratories that focus on a few products. The FDA classifies ethanol as Generally Regarded as Safe (GRAS), meaning that it is safe for human consumption. As a result, it is commonly used as a food preservative and additive, found in everyday foods. Summary of Steps 1. Biomass: pulverize dry plant material (flower/trim). 2. Wash: combine the biomass and cold food grade ethanol. The cold temperature locks in chlorophyll & waxes to the plant material, which eliminates a secondary removal process. 3. Filtration: passing the crude extract through filters to remove any impurities. 4. Distillation: separating the ethanol from the cannabinoids. 5. Quality check and testing. 6. Offered as a wholesale product to end product manufacturers. Staff recommends approval of Major Use Permit (UP 19-14) and Variance (VR 19-03) for Ophira Processing, to manufacture and distribute wholesale cannabis oil (Type 6 Non-Volatile), (Type 11 Distributor License) RECOMMENDED ACTION: Categorical Exemption I move that the Planning Commission find that the Use Permit, UP 19-14 applied by Ophira Processing, LLC on property located at 109 Soda Bay Road, Lakeport, CA 95453 further described as APN: 008-019-60 is exempt from CEQA because it falls within Categorical Exemption Class 1 set forth in the Staff Report dated September 19, 2019. Major Use Permit I move that the Planning Commission find that the Use Permit, UP 19-14 applied by Ophira Processing, LLC on property located at 109 Soda Bay Road, Lakeport, CA 95453 further described as APN: 008-019-60 does meet the requirements of Section 51.4 and Section 27(av) of the Lake County Zoning Ordinance and grant the Major Use Permit subject to the conditions and with the findings listed in the Staff Report dated September 19, 2019. Variance I move that the Planning Commission find that the Variance 19-04 applied by Ophira Processing, LLC on property located at 109 Soda Bay Road, Lakeport, CA 95453 further described as APN: 008-019-60 meets the requirements in Article 52 of the Lake County Zoning Ordinance subject to the conditions and with the findings listed in the Staff Report dated September 19, 2019. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Commission's final determination