The Agriculture Improvement Act of 2018 (the 2018 Farm Bill) removed industrial hemp from Schedule I of the federal Controlled Substances Act. Even though growing industrial hemp is currently legal under State and Federal law, the lack of local regulation has shown to be problematic as the similarities between cannabis and industrial hemp plants present challenges for law enforcement and code enforcement when determining whether a cultivation site complies with applicable law.  
  
Industrial hemp and cannabis are derivatives of the same plant and can only be distinguished through chemical analysis for the presence of tetrahydrocannabinol (THC). If the plant has a concentration of 0.3% THC or less, it is industrial hemp. However, THC levels are difficult to test reliably until the plant is close to maturity and ready for harvest. The cultivation of industrial hemp has also shown to be a potential creator of significant impacts to neighboring properties such as light pollution, odor, and need for heightened security.  
  
Considering these issues, and to allow time for staff to develop appropriate draft regulations, on November 17, 2020, the Board of Supervisors adopted an urgency interim ordinance imposing a temporary moratorium on industrial hemp cultivation. The Board twice extended the moratorium, which currently extends through September 30, 2021. During the moratorium the Department of Conservation and Development and the Department of Agriculture have worked collaboratively to develop regulations for industrial hemp cultivation. Staff believes that the two proposed ordinances—a zoning ordinance and an agricultural permit ordinance—will provide appropriate regulation of industrial hemp cultivation.   
  
Industrial Hemp Cultivation Zoning Ordinance No. 2021-21  
  
Summary  
The Department of Conservation and Development has drafted a zoning ordinance that would allow industrial hemp cultivation in certain zoning districts with a land use permit. The proposed zoning ordinance is intended to address potential impacts from industrial hemp cultivation, including light pollution, odor, and need for heightened security. The required conditions of a land use permit issued under this ordinance would mitigate these potential impacts and provide the County with an enforcement mechanism in the event a permittee fails to conform to the required standards.  
  
Under the proposed zoning ordinance, a land use permit to cultivate industrial hemp may only be issued for cultivation on a lot in an agricultural zoning district located within the boundaries of the East Contra Costa Irrigation District, the Byron-Bethany Irrigation District, or the East Contra Costa County Groundwater Subbasin. The ordinance would establish different location requirements and operational standards for indoor and outdoor cultivation.  
  
A land use permit issued under the proposed ordinance would have an initial term of five years. A permit could be renewed if the permittee has complied with all applicable regulations and industrial hemp cultivation is authorized in Contra Costa County at the time the renewal request is made. The term of a renewed permit would last until the permit is revoked. Generally, land use permits do not expire after a set term because they run with the land. Staff believes that an initial term of five years, with the opportunity for renewal, is appropriate here given the potential for significant impacts to neighbors and the community. If a permittee has not complied with permit conditions or the standards included in the ordinance, or if the industrial hemp cultivation is no longer authorized in the County, a request for renewal may be denied. As opposed to building construction or other development, the initial investment in an annual agricultural crop is substantially less and generally recoverable each year. Moreover, the value of agricultural land is not diminished if a land use permit for industrial hemp cultivation is not renewed as the land can be utilized for other agricultural uses. Accordingly, staff recommends an initial term of five years for land use permits issued under the proposed ordinance.  
  
Key Provisions The attached map shows the area where industrial hemp cultivation may be permitted under this ordinance per the location requirements described above.  
  
Lastly, industrial hemp may not be cultivated outdoors at any property within the urban limit line or within one mile beyond the urban limit line.  
County Planning Commission Hearing  
  
On June 23, 2021, the County Planning Commission held a public hearing on the proposed industrial hemp cultivation ordinance. After closing the public hearing, the Planning Commission unanimously recommended that the Board of Supervisors adopt the proposed industrial hemp cultivation ordinance.  
  
Agricultural Industrial Hemp Permit Ordinance No. 2021-22  
  
In addition to the proposed zoning ordinance, the County Agricultural Department has also prepared an agricultural permit ordinance that would establish standards for cultivating industrial hemp and require a person to obtain a permit from the Contra Costa County Agricultural Commissioner, in addition to all other required County and State permits and registrations, prior to cultivation. Testing, tracking, transportation, and destruction of industrial hemp plants will be regulated by the County Agricultural Department under the provisions of the agricultural permit ordinance.

  
Environmental Review  
  
Under CEQA Guidelines Section 15061(b)(3), the proposed Zoning Text Amendment to adopt a County Industrial Hemp Cultivation Ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that establishing regulations for the cultivation of industrial hemp could have a significant effect on the environment. The proposed regulations will help mitigate any potential impacts caused by the cultivation of industrial hemp, and therefore will reduce impacts on the environment.  
  
Conclusion