Planning Commission — Thursday, April 13, 2017

M E M O Date: March 28, 2017 To: Planning Commission From: Robert Massarelli, AICP RE: Resolution of Intent of Amending Article 72 of the Zoning Ordinance At the March 21, 2017 workshop, the Board of Supervisors provided direction regarding the regulation of cannabis in the county. Part of that direction was to expand Article 72 to include "RL" Rural Lands zoning district in addition to "A" Agriculture zoning district as to where the outdoor cultivation of medical cannabis would be allowed. Article 72 does not include a permitting system and therefore there is no means for the County to know what cultivation sites are in compliance. The Board directed the staff to amend Article 72 to include a self-certification of compliance program. The self-certification would be verified by a compliance monitoring inspection. The intent of the Board of Supervisors is to allow those who are in compliance with Article 72 to be given priority in the implementation of a pilot program for the new cannabis ordinance that is under development. Those in compliance with Article 72 with a tier 3 permit from the state water board would be given first priority, those with a tier 2 permit would be given second priority, and those with a tier 1 permit would be given the next priority. In order to amend the zoning ordinance a resolution of intent must be adopted by the Board of Supervisors or the Planning Commission. Attached is the proposed resolution of intent. The staff recommends approval of the resolution of intent.

STAFF REPORT TO: Planning Commission FROM: Robert Massarelli, Community Development Director Prepared by: Mark Roberts, Associate Planner DATE: March 16, 2017 SUBJECT: Request for ninety-nine (99) year extension of time (UPX 16-02) for Use Permit UP 81-05 ATTACHMENTS: 1. Vicinity Map 2. Project Description 3. Conditions of Approval Dated April 23, 1981 with Amendments 4. Planning Commission Staff Report & Attachments Dated August 1986 I. PROJECT DESCRIPTION Project Name: Tocher Two (2) Drill Pad Application: Use Permit Extension, UPX 16-02 CE 16-74 Applicant/Owner: Geysers Power Company, LLC Project Summary: The Geysers Power Company originally requested a thirty year (30) extension of time (UPX 16-02) for Use Permit, UP 81-05. However, according to the California Government Code, Section 65960: "Notwithstanding any other provision of law, if any person applies for approval of a geothermal field development project, then only one permit from the lead agency and one permit from each responsible agency shall be required for all drilling, construction, operation, and maintenance activities required during the course of the productive life of the project, including, but not limited to, the drilling of makeup wells, redrills, well cleanouts, pipeline hookups, or any other activity necessary to the continued supply of geothermal steam to a power plant." Therefore, staff has determined that a ninety-nine (99) year extension of time (UPX 16-02) for Use Permit, UP 81-05 is appropriate. There will be no changes in the operation and/or expansion of the authorized use. The applicant shall continue to be in compliance with all previously approved Conditions of Approval in Use Permit, UP 81-05 (UNOCAL TOCHER) and submit Annual Compliance Reports to the Community Development. Previous Project: Use Permit UP 81-05 was approved by the Lake County Planning Commission in 1981 for a period of five (5) years and scheduled to expire in 1986. During that five-year period of time there were several changes in the Federal and State regulations. In addition, the original Conditions of Approval were difficult to enforce. During the extension of time request the County revised the Use Permit to reflect the changes in the Federal and State regulations and to clarify the Conditions of Approval to improve the ability to enforce them. In March of 1987, the Lake County Planning Commission approved a thirty-year extension of time. Location: 10350 Socrates Mine Road, Middletown, CA 95461; Approximately 2.25 miles northwest of Anderson Springs in Section 27, T11N, Range 8 West MDB&M. APNs: 013-005-20, 013-058-02, 013-058-03 Parcel Size: 013-005-20: Approximately 75 acres 013-058-02: Approximately 73 acres 013-058-03: Approximately 21 acres General Plan: "RL" - Rural Lands Zoning: "RL - WW - Bfroz"; Rural Lands-Waterway-Bfroz Flood Zone: "X" - Areas determined to be outside the 0.2% annual chance (500-year floodplain) Slope: The project parcels are moderately steep to fairly steep (20% -30% average cross slopes). II. ZONING ORDINANCE ARTICLE 55 APPLICATION This is an application for a ninety-nine (99) year extension of time for the ongoing operation as authorized (Use Permit UP 81-05) for the Tocher Number Two Drill Pad for the Geysers Power Company. The Tocher Number Two Drill Pad is an existing drill pad which contains two production wells, an injection well, associated access roads and pipeline facilities. III. LAKE COUNTY ZONING ORDINANCE ARTICLE 7 REGULATIONS FOR THE RURAL LANDS OR "RL" DISTRICT * Conforms to Development Standards * Geothermal Operations are permitted with a Major Use Permit per Section 7.5(h); "Those uses permitted in the "RL" district with a Major Use Permit in Table B, Article 27, Section 27.11 (m)(n)(o). * Use Permit UP 81-05 was approved by the Planning Commission on March 13, 1980. The ongoing operation(s) as authorized shall adhere to all Conditions of Approval in Use Permit, UP 81-05. IV. ZONING ORDINANCE ARTICLE 60 EXPIRATION, REVOCATION, OR MODIFICATION OF PERMITS AND REAPPLICATION 60.1(c) Expiration: If prior to expiration of a permit, the applicant files a written application for extension, the period within which substantial physical construction or use commenced, may be extended one (1) year by order of the Planning Director, Zoning Administrator, Development Review Committee, Planning Commission, or Board of Supervisors, whichever granted the permit, at any time within ninety (90) days of the date of expiration. An application for such an extension shall be made on the prescribed form and shall be accompanied by any applicable fee as established by the Board of Supervisors. (Ord. No. 1749, 7/7/1988) * The Use Permit was set to expire on March 17, 2017, unless the applicant has submitted a Use Permit Extension Request Application. On September 30, 2016, the applicant submitted a request for a thirty (30) year extension of time. However, Staff is proposing a ninety-nine (99) year extension of time. V. CONDTIONS OF APPROVAL The applicant shall continue to be in compliance with all previously approved Conditions of Approval in Use Permit, UP 81-05 (UNOCAL TOCHER). Approval is Subject to the Following General Conditions: Condition 1 shall be amended and read as follows: * This use permit has been approved by the Planning Commission subject to the expiration date of March 17, 2017. The use permit shall be valid for a period nine-nine (99) years from date of extension of time approval April 13, 2017 until April 13, 2116. There shall be no changes in the operation or use and/or expansion of the authorized use Condition 9 shall be added and read as follows: * The applicant shall submit Annual Compliance Reports to the Community Development Department detailing how each Condition of Approval is complied with within sixty (60) days of the new calendar year. Condition 10 shall be added and read as follows: * The applicant shall submit Annual Seismicity Report(s) to the Community Development Department within sixty (60) days of the new calendar year. Said report shall contain detailed date interpretation and summary analysis of the following: o Status of Seismic Monitoring Network o Yearly field Seismicity Analysis o Yearly field Water Injection and Seismicity Analysis o Yearly field steam production o Yearly analysis of well options& induced seismicity relationships o Comparison of the semi-annually reporting periods o Community Outreach Condition 11 shall be added and read as follows: * The applicant shall continue to hold the Seismic Monitoring Advisory Committee (SMAC) Meeting for the life of the project. VI. LAKE COUNTY GENERAL PLAN This project is generally consistent with: Geothermal Resources, 10.1 GR-1 Goal "To promote research and develop innovative techniques to improve the use of geothermal resources as a sustainable energy source that benefits Lake County "This project is generally consistent with Policy GR 1.6 Data Collection and Monitoring "The County shall establish and maintain a geothermal database which will include information submitted for project application, economic information employment, production etc.), monitoring results, and other appropriate information." VII. MIDDLETOWN AREA PLAN This project is generally consistent with: Chapter 5, Section 5-4, and "Geothermal" of the Middletown Area Plan. "The importance of the geothermal industry to Lake County and the Middletown Planning area cannot be understood. The geothermal companies provided millions of dollars in annual tax revenues and royalties and employees spend money in the local economy. However, there are a number of environmental challenges with the power plants and future expansion and development. The County needs to maintain a positive relationship with the geothermal industry and work closely to find a balance between protecting the industry as an economic "engine" and proper environmental mitigation." VIII. ENVIRONMENTAL ANALYSIS (CEQA) The permit holder is in compliance with all of the conditions contained in the existing use permit UP 81-5. There will be no changes in the operation or use; there will be no expansion of the authorized use and no request to change any of the other item(s) and/or Conditions of Approval at this time. The California Environmental Quality Act (CEQA) requires agencies to evaluate the environmental implications of their actions. The geothermal wells have been in operation continuously for several years without any significant effect to the environment, therefore a CEQA Categorical Exemption, Class 1 is appropriate for this project. CEQA Guidelines Section 15301 states that, "Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination... include but are not limited to... (b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services". The permit conditions of approval contained in UP 81-05 are expected to continue to provide adequate mitigation to ensure that no harm will come to the environment including health and safety concerns during the term of the permit. The project site is built out and no new construction will result from the extension of this use permit. IX. ZONING ORDINANCE ARTICLE 51.4 MAJOR USE PERMIT FINDINGS Pursuant to Zoning Ordinance Section 51.4(a), the Planning Commission may only conditionally approve a major use permit if all the following findings are made: 1. That the establishment, maintenance, or operation of the use applied for will not under the circumstances of the particular case, be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use, or be detrimental to property and improvements in the neighborhood or the general welfare of the County. * The existing and ongoing authorized use will not be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such use, or be detrimental to property and improvements in the neighborhood or the general welfare of the County with the incorporated mitigations, as partially listed below. * There are no nearby residential areas; in fact the closest residential community is Anderson Springs which is located approximately 2.25 miles northwest or the project parcel. CONDITIONS/MITIGATIONS, SECTION "A" - PUBLIC HEALTH AND SAFETY: 1. All unattended drilling equipment, well heads, sumps and ponds shall be protected from access by livestock and unauthorized persons. 2. Sanitary and hand washing facilities shall be provided at the work sites as specified by the County of Lake Health Department. 3. In the event of casing blowout or other uncontrolled venting, the permit holder shall move immediately to control the vent. No more than two (2) days shall elapse from the date of the uncontrolled vent to the date of equipment relocation to secure it. 4. The permit holder shall comply with the requirements of the fire prevention practices and measures as may be prescribed by the California Division of Forestry and/or County of Lake. 5. The permit holder shall be responsible for repair of any direct verifiable damage to public roadways resulting from construction or operation of this project, including actions by contractors or subcontractors. 6. The permit holder shall inform all of its contractors that extra-wide and slow moving vehicles shall be preceded by a flag car while on public roadways. The California Highway Patrol shall be notified of geothermal waste generated by permit holder and transported on public roads at least four (4) hours prior to occurrence of each activity, unless this time period is amended in writing by the officer in charge of the local California Highway Patrol Office. 7. The permit holder shall provide all truck drivers, prior to entering the leasehold, with a map of the area in which they are traversing. The map shall include: a) all major curves and elevations, b) speed limits/reduced limits depicted on the map, c) safe locations for vehicle inspections, and d) a warning clause/penalties if drivers violate any safety procedures while traveling on leasehold roads. 8. The permit holder shall notify in writing that all of its trucking contractors require that each truck driver conduct a vehicle inspection prior to leaving the leasehold. The inspection shall include brakes, vehicle connection, wheels/tires, valves, tanks, etc. and other equipment as outlined in Title 13 CAC. After loading, a material inspection for leaks in the system shall be conducted. All inspections shall be logged for verification by agency staff. 9. If a geysers area waste transport safety program is approved in writing by the California Highway Patrol (Kelseyville Commander) in the future, it shall satisfy the requirements of this condition. 10. The permit holder shall enter into compliance monitoring inspection agreement with the County of Lake. Said agreement shall provide for reimbursement to the County for the actual cost of inspection and monitoring, limited to staff time, equipment repair, and mileage, for the life of the project. If an area-wide fee schedule for inspection services is adopted in the future, it shall replace this condition. 11. If any section, subsection, sentence, clause or phrase of this permit is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of the use permit. The Board of Supervisors hereby declares that it would have passed this use permit and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more sections, subsections, clauses or phrases are declared invalid. 12. Prior to additional well drilling on Tocher Well Site No. 2, a financial assurance agreement, certificate of deposit or bond, satisfactory n form and content to the Lake County Counsel, shall be provided and maintained by the permit holder to insure cleanup in case of spills, landslides, mishaps and site reclamation upon abandonment. Said financial agreement shall make available up to $50,000.00 (in 1986 dollars, to be adjusted every two (2) years according to the consumer price index: San Francisco Bay/Oakland Area) for this purpose and shall be payable to the County of Lake and require County approval to terminate. A blanket financial assurance in the amount of $350,000.00 shall be considered blanket coverage for all geothermal activities undertaken by the permit holder in Lake County 2. That the site for the project is adequate in size, shape, location, and physical characteristics to accommodate the type of use and level of development proposed. * The existing and approved project site is adequate in size, shape and location. The project site consist of three (3) parcel(s) approximately 169 acres in total size. 3. That the streets, highways and pedestrian facilities are reasonably adequate to safely accommodate the specific proposed use. * The project parcel(s) and surrounding parcels have adequate road access to safely accommodate the ongoing and authorized use. The Geysers Power Company has a Civil Crew that maintains all private leased roads for their operations. 4. That there are adequate public or private services, including but not limited to fire protection, water supply, sewage disposal, and police protection to serve the project. * There is no existing or proposed sewage disposal system at this time. The existing and authorized use shall adhere to the incorporated mitigations, as partially listed below in Section "D" for Waste Disposal. * The project parcels have adequate fire and police protection through South Lake Fire Protections District and the Lake County Sheriff's Department. CONDITIONS/MITIGATIONS; SECTION "D" - WASTE DISPOSAL 1. Prior to removal or burial of sump materials or within ninety (90) days of the removal of drilling equipment, or as directed by the CVRWQCB or County Planning Department in consultation with the County Health Department., sump fluids (both mud and supernatant liquids) shall be chemically analyzed for type and quantity of biologically sensitive materials, especially hazardous materials, heavy metals and acids unless waived by the Planning Director upon written consultation with the CVRWQCB. Sampling and testing parameters and procedures shall be submitted to the Lake County Community Development Department Planning Department for review and approval, consistent with CVRWQCB standards. Additional sump sampling and testing may be required if requested in writing by the Community Development Director Planning Director (in consultation with the Lake County Health Department) or CVRWQCB. 2. No hydrocarbon base cleaning agent, no waste oils or greases, and no liquid fuel shall intentionally be released directly onto the surface of a pad. All such liquids shall be contained and removed from the site. Any accidental discharge of the materials mentioned above shall be removed and properly disposed of by the permit holder. 3. After the sump has been filled, all liquids produced during pipeline testing, cleanout or blow down, which are not injected, shall be containerized and removed to a waste management unit permitted to accept these wastes. No surface spills will be allowed from pipelines. The permit holder shall provide catchment or container basins for condensate traps and pipeline bleeder valves. Plans for condensate collection systems shall be submitted for approval by the Department Planning Department in conjunction with the CVRWQCB prior to pipeline construction. 4. All solid waste material other than chemically acceptable sump material (D-1) shall be removed from the site to a waste management unit which is in compliance with all local, state and federal requirements. The permit holder shall be responsible for collection and removal of all litter resulting from project activities. 5. Upon completion of each drilling operation, all equipment and materials unnecessary to the operation of the well shall be removed. No equipment or material shall be stockpiled at the site. 6. If known hazardous wastes are stored on site for more than ninety (90) days, the permit holder shall obtain a determination from the California Department of Health Services (DHS) that the requirements of a hazardous waste facility permit have been satisfied. All hazardous wastes are to be taken to a facility permitted by the (DHS) to accept such wastes. The permit holder shall ensure that any hazardous waste hauler employed has a certificate of registration from the DHS, Hazardous Materials Management Section. 7. The DRAVO or an equivalent process may be installed and utilized on this drill site. If an equivalent process is used, plans and specifications shall be submitted to the Planning Director for review and approval prior to installation of the facility. CONDITIONS/MITIGATIONS; SECTION "F" - WATER QUALITY 1. Upon reactivation of the drilling sump, the permit holder shall implement a site specific water quality monitoring program. The monitoring program shall be conducted along Anderson Creek, and shall be approved by the Department Planning Department in consultation with the CVRWQCB. This program shall be terminated upon sump closure. The proposed monitoring plan shall be submitted for approval by the Department Planning Department within thirty (30) days of further sump construction activities. In the event that an area wide water quality monitoring program is entered into by the permit holder, the monitoring program established pursuant to condition F-2 may be substituted by the Department Planning Department, upon a request by the permit holder, if a duplication of monitoring efforts is occurring. 2. Steam condensate and sump contents such as rainwater and other sump fluids may be injected in accordance with California Division of Oil and Gas regulations. The injection of surface and ground water from on- or off-site sources is specifically disallowed without specific approval of the Lake County Planning Commission. 3. The permit holder shall also obtain a permit from and comply with all permit regulations of the CVRWQCB. All conditions of the permit holder's waste discharge requirements are herein referenced and incorporated into this use permit. 4. In order to preserve the hydrologic integrity of this area, the permit holder shall obtain by legal right, purchase or agreement; all water used, and provide documentation to that effect to the Planning Department prior to continuation of construction activities. *The utilization of water from Anderson Creek for construction, drilling, and revegetation purposes on the Tocher Leasehold is allowed. No water shall be taken from the Tocher Leasehold without written authority from the Lake County Planning Department, State Water Resource Control Board, and California Department of Fish and Game. 5. That the project is in conformance with the applicable provisions and policies of this Code, the General Plan and any approved zoning or land use plan. * The project is consistent with applicable provisions of the Lake County General Plan, Middletown Area Plan and Lake County Zoning Ordinance with the incorporated mitigations as conditions of approval. 6. That no violation of Chapters 5, 17, 21, 23 or 26 of the Lake County Code currently exists on the property, unless the purpose of the permit is to correct the violation, or the permit relates to a portion of the property which is sufficiently separate and apart from the portion of the property in violation so as not to be affected by the violation from a public health, safety or general welfare basis. * The department has no record of current violations of Chapters 5, 17, 21, 23 or 26 of the Lake County Code. RECOMMENDATION Staff recommends that the Planning Commission take the following actions: A. Adopt Categorical Exemption, Class 1 (CE 16-74) for UPX 16-02 with the following findings: 1. This time extension is for an existing use permit to allow continued operation of existing geothermal wells with no expansion. 2. This project is consistent with CEQA Categorical Exemption, Class 1, which consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination 3. This project remains consistent with the Lake County General Plan, Middletown Area Plan and the Lake County Zoning Ordinance. 4. There has been no change in the project which would create new significant environmental impacts. 5. There has been no substantial change in circumstances resulting in new significant environmental impacts. 6. This project will not result in any significant adverse environmental impacts. B. Approve the request for a ninety-nine (99) year extension of time for Use Permit Extension UPX 16-02 for Use Permit UP 81-05, extending the expiration to March 17, 2116. 1. That the existing, operational geothermal production well facility, will not be detrimental to the health, safety, and welfare of persons residing in the neighborhood, nor to the neighborhood or general welfare of the County and environmental impacts to aesthetics, air quality, biology, geology, hazards and hazardous material, hydrology and water quality, noise, public service, transportation systems will continue to be mitigated by use permit conditions. 2. That the site for the project is adequate in size, shape, location, and physical characteristics to accommodate the type of use and level of development proposed. 3. That the streets, highways and pedestrian facilities are reasonably adequate to safely accommodate the specific proposed use 4. That there are adequate public or private services, including but not limited to fire protection, water supply, sewage disposal, and police protection to serve the project 5. This project is in conformance with the General Plan, Middletown Area Plan and the Lake County Zoning Ordinance. 6. That no violation of Chapters 5, 17, 21, 23 or 26 of the Lake County Code currently exists on the property, unless the purpose of the permit is to correct the violation, or the permit relates to a portion of the property which is sufficiently separate and apart from the portion of the property in violation so as not to be affected by the violation from a public health, safety or general welfare basis. SAMPLE MOTIONS: Categorical Exemption I move that the Planning Commission find this Use Permit Extension is exempt from CEQA because it falls within Categorical Exemption Class 1, based on the findings set forth in the staff report dated March 16, 2017. Use Permit Extension I move that the Planning Commission find that the Use Permit Extension UPX 16-02 applied for by Geysers Power Company, LLC on property located at 10350 Socrates Mine Road, Middletown, CA 95461, does meet the requirements of Section 51.4 of the Lake County Zoning Ordinance and grant the Use Permit Extension subject to the conditions and with the findings listed in the staff report dated March 16, 2017. 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 Reviewed by: _ Geysers Power Company; Use Permit Extension UPX 16-02 Associated File: Use Permit, UP 81-05 Page 2 of 2 Page 1 of 1