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Understanding the Impact of Cannabis Cultivation in Santa Barbara County

The Unprecedented Scope of the Cannabis Ordinance

  • Sweeping Legislation: Our county's Cannabis Ordinance is one of the most comprehensive in recent history. It permits 186 acres of cultivation near schools and neighborhoods in Carpinteria and allows 1,575 acres in North County’s wine country.

  • Unchecked Cultivation Expansion: As of March 2022, less than 1000 acres of the allowed cultivation area of 1570 acres are actively used, yet the potential for expansion poses significant concerns.

Critical Zoning and Property Value Implications

  • Inconsistent Zoning Requirements: The AG-I inland zone mandates a 20-acre minimum lot size, while the highly sensitive AG-I Coastal Zone lacks such minimum acreage requirements, leaving our coastal lands vulnerable.

  • Permanent Use: The issuance of a Cultivation Permit remains effective indefinitely, impacting land use dynamics.

The Challenge of Legal Nonconforming Use

  • Reliance on Affidavits: Approximately 60% of current cultivation claims are based on Legal Nonconforming Use, often supported by unverified affidavits without public hearings or thorough scrutiny.

The Moratorium and Permit Stacking

  • Large Grow Loopholes: Despite Proposition 64's moratorium until 2023 to support small local growers, Santa Barbara’s Ordinance allows for the stacking of small grow permits. This enables extensive cultivation beyond the intended scope.

Local Ownership and Environmental Concerns

  • Non-Local Investment: Many cannabis farms in our county are owned by large, out-of-town investment groups, raising questions about local control and sustainability.

  • Environmental and Health Risks: Cannabis odors, caused by terpenes (Volatile Organic Compounds), contribute to air quality issues and can affect health, particularly in vulnerable populations.

Financial and Safety Considerations

  • Taxation Challenges: Our unique taxation system for cannabis, based on self-reported cash revenue, raises concerns about accuracy and compliance.

  • Cash Transactions and Crime: The federal illegality of cannabis, necessitating cash transactions, increases the risk of crime and traffic issues.

Policy and Planning Oversight

  • Inconsistency with Comprehensive Plan: The current Cannabis Ordinance contradicts several provisions of the County’s Comprehensive Plan, creating potential conflicts with established businesses.

  • Need for Comprehensive Studies: Before passing the legislation, there was a notable absence of in-depth Economic Impact Studies and long-term Health Studies, crucial for informed decision-making.

Our Practical Solutions 

Property Line Odor Testing in Cannabis Cultivation

  • Critical Need for Odor Regulation: One of the key initiatives of the Santa Barbara Coalition for Responsible Cannabis is the implementation of property line odor testing for all cannabis cultivation sites. This approach is crucial for objectively measuring and regulating the impact of cannabis odors on surrounding areas.

  • Science-Driven Approach: Property line odor testing uses scientific methods to detect and quantify cannabis odors at the boundaries of cultivation sites. This data-driven approach ensures that odor emissions are evaluated objectively, leading to more effective regulatory enforcement.

  • Setting Clear Standards: By establishing clear odor emission standards at property lines, growers are held accountable for the impact of their operations on the community. This not only protects residents from unwanted odors but also encourages cultivators to adopt the best practices and technologies for odor control.

  • Future-Proofing Regulations: As odor control technologies evolve, property line odor testing will provide a flexible and adaptive framework for regulation. This ensures that our community is safeguarded against odor nuisances, both now and in the future.

Odor Control in Indoor Cannabis Cultivation

  • Necessity of Carbon Scrubbers: For indoor cannabis grows, the implementation of carbon scrubber technology is essential to mitigate the pervasive odors that can impact nearby communities. While these odors are more contained compared to open-air grows, they still present a significant nuisance without proper control measures.

  • Effectiveness of Carbon Scrubbers: Carbon scrubbers are proven to be effective in filtering out the odorous terpenes released during cannabis cultivation. By using activated carbon, these systems can absorb and neutralize the volatile organic compounds responsible for the distinctive cannabis odor.

  • Benefits Beyond Odor Control: Besides addressing the odor issues, carbon scrubbers also contribute to overall air quality improvement. They can help reduce the presence of airborne pollutants, which is particularly beneficial in densely populated areas or close to schools and residential neighborhoods.

  • Regulatory Consideration: We advocate for the mandatory installation of carbon scrubber systems in all indoor cannabis cultivation facilities within Santa Barbara County. This step is crucial not only for community well-being but also for setting a standard in responsible cannabis cultivation practices.

Prioritizing Enhanced and Effective Enforcement

  • Strengthening Odor Control Enforcement: The Santa Barbara Coalition for Responsible Cannabis advocates for robust enforcement mechanisms to ensure compliance with odor control regulations. It is essential that the county takes decisive action against cannabis operations that fail to adhere to established odor control standards.

  • Addressing Illegal Grows: Alongside odor control, there is a critical need to effectively address and eliminate illegal cannabis cultivation. These unauthorized grows not only evade regulatory oversight but also potentially harm the environment and disrupt the balance of lawful cannabis operations.

  • Integrated Enforcement Strategy: We propose an integrated enforcement strategy that combines technology, regulatory oversight, and community involvement. This includes the use of advanced detection methods, regular inspections, and a streamlined process for reporting and addressing violations.

  • Collaboration with Law Enforcement and Regulatory Bodies: Effective enforcement requires close collaboration between the county, law enforcement agencies, and regulatory bodies. By working together, we can ensure that both odor control and the eradication of illegal grows are managed efficiently and effectively.

  • Community Involvement in Reporting: We encourage community members to remain vigilant and report any instances of odor nuisance or suspected illegal cannabis activities. Community reports are invaluable in aiding enforcement efforts and ensuring that our county’s cannabis cultivation landscape is safe, legal, and responsible.

Advocating for Fair and Transparent Per Acre Taxation

  • Rationalizing Cannabis Taxation: The Santa Barbara Coalition for Responsible Cannabis supports the implementation of a per acre taxation system for cannabis cultivation. This approach would ensure a fair, transparent, and easily verifiable method of taxation, aligning with best practices in agricultural taxation.

  • Benefits of Per Acre Taxation: Taxing cannabis cultivation on a per acre basis simplifies the tax structure, making it more straightforward for growers to comply and easier for the county to administer. This method also reduces the likelihood of underreporting and non-compliance, ensuring that cannabis operations contribute their fair share to the community.

  • Comparative Analysis with Other Counties: Many other counties have successfully implemented per acre taxation for cannabis cultivation, leading to more equitable and efficient tax collection. Adopting a similar model in Santa Barbara County would bring us in line with these best practices.

WHAT DOES OUR COUNTY RECEIVE IN CANNABIS TAXES

Revenue: Our $1.6B County receives very little in revenue through Cannabis-taxes. In 2023, for example, the number will be approximately $6M.  

Tax Method: Our County has a uniquely friendly Cannabis tax scheme that relies on self-reported revenue by Cannabis “Growers”.  Depending on the year, as many as 50% of SB Growers either report zero revenue or don’t report at all.

Costs: How much does it cost to capture this revenue across a multitude of departments (AG, P&D, Tax Collector, Sheriff, etc.) is purposely opaque/vague but we estimate the total annual costs at approximately $10M, i.e., we are hugely “under water”.  

Monterey grows significantly less Cannabis (all indoor) and—through a Grand Jury review—it was determined that it cost the County $6.3M to run their Cannabis Program.

Outdoor Cannabis

83% of our Permitted Cannabis is grown wholly outdoors in North County.  In spite of the scale of Cannabis (we grow more than any other county) we tax outdoor Cannabis very minimally:

  • It was reported in March of 2023 that if our Revenue tax were converted to a Square Foot tax, outdoor Cannabis would be paying just 6 cents per square foot, i.e., $1,456 per acre.

  • An outdoor acre of Cannabis results in 1,456 pounds of dried Cannabis and is worth approximately $822,000**

  • Sonoma County understands the value of outdoor Cannabis and, therefore taxes it more accordingly at $43,317 per acre**

Given its impact and damage to legacy businesses, we need to consider

**https://sonomacounty.ca.gov/Main%20County%20Site/Natural%20Resources/Agricultural%2C%20Weights%20%26%20Measures/Documents/Crop%20Reports/2022-Sonoma-County-Crop-Report-Cannabis-Addendum.pdf

According to cannabis industry calculations, outdoor cannabis uses significantly more water than most crops and it poses a threat to our water security.

For example, one 65 acre outdoor cannabis operation in the Santa Ynez Valley uses 618,000 gallons of water per day during the growing season. As cannabis has proliferated across the United States, scientists have been reviewing environmental impacts of cannabis cultivation. These studies have shown that growing cannabis is water-intensive and that cannabis cultivation can lead to water pollution. Unfortunately, as more and more cannabis is approved, more and more water will be used.

A proposed outdoor cannabis farm outside of Buellton is putting in piping that can pump out millions of gallons per day, In addition to the three other wells already on the property, the proposed production facility will be installing an enormous 20 inch water well 1,200 feet deep into the aquifer, creating the capacity to suck 12,000 gallons per minute of groundwater.  That equates to over 5.5 million gallons in an 8 hour daily irrigation set.  Per US Government estimates, the average person uses 80-100 gallons per day.  That is enough water to satisfy the domestic needs of 72,000 citizens every day. All of this is being done even as the State of California lists Santa Barbara County under “Extreme Drought.

This is an irresponsible use of our precious water resources. Our Coalition works to find sustainable water solutions for agriculture across the county and will continue to fight for the water security for Santa Barbara County.

Cannabis and Water

Illegal Water Usage in Cannabis

A thorough investigation by experts of Santa Ynez Valley cannabis cultivators has shown that 22 of the 31 cannabis operations along the Santa Ynez River illegally use water during our state's worst and most dangerous drought. That number represents approximately  70% of the growers in that area. 

Our six-month investigation - carried out by leading hydrology firm, Lynker Technologies - shows that more than 411 million gallons of water per year are being diverted from the Santa Ynez River Alluvial Basin to cannabis grows. This water use violates California law, which prohibits the use of surface water for cannabis cultivation between March 31 and November 1. Of the 31 cannabis cultivation operations along the Santa Ynez River between Lake Cachuma and Lompoc, 22 appear to pump and irrigate illegally using water that is protected under California law. The total estimated illegal water consumption from these grows is 1261 acre-feet of water (or 411,000,000+ gallons). For comparison, the total water usage of Buellton for one year was 1220 acre-feet. These numbers are staggering.

Read more in the Santa Maria Times

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Grand Jury Report

The non-partisan Santa Barbara County Grand Jury has released it’s findings. This scathing report breaks down the divisive and corrupt methods that led to our failed cannabis ordinance.