Board affirms CEQA categorical exemption for 1719 Wallace cannabis cultivation site after neighborhood objections

The San Francisco Board of Supervisors on Dec. 17 affirmed the Planning Department's categorical exemption under the California Environmental Quality Act for a proposed cannabis cultivation facility at 1719 Wallace Avenue, despite objections from nearby residents who said the project could harm local air quality.

The decision came after a contested public hearing in which appellant Barbara Tassa, a Bayview resident, urged the board to require a full environmental review. "I believe this decision was a mistake," Tassa said during her allotted time, arguing the site's proximity to longtime homes and the cumulative number of cultivation projects in Bayview raised a "reasonable possibility of significant environmental harm." She cited CEQA guidance that exempts projects only where there are no unusual circumstances and warned of volatile organic compounds and odors from cultivation that can affect vulnerable residents.

The Planning Department's principal planner, Tanya Shaner, told the board staff had reviewed the appeal and concluded the project fit within CEQA's class 1 and class 3 categorical exemptions for minor alterations and small changes of use. "The project is relatively small, its location is appropriate with similar uses already present in the area and existing regulations concerning air quality, odors, and other potential impacts would avoid any significant impacts," Shaner said, adding the operation must comply with city and state cannabis rules including an odor mitigation plan.

Representatives of the project sponsor, Lukon Inc., said the cultivation footprint would be about 1,000 square feet and described planned air filtration and negative-pressure HVAC systems. "We plan to filter all air within the facility with carbon filters, as well as all air exiting the facility," Mookie, speaking for the applicant, told the board. He said doors and windows would be sealed and that any noticeable odors would be treated as a mechanical failure to be corrected.

Neighbors disputed the applicant's assurances. June Zong, a member of the Bayview Hunters Point AB 617 community steering committee, and Brian Johnson, who lives immediately behind the warehouse at 1718 Yosemite, described recurring cannabis odors in the neighborhood and cited AB 617 concerns about cumulative pollution in Bayview. "There is a growing sentiment among residents that city hall leaders apply a separate set of public health standards toward Hunters Point projects," Zong said. Johnson said he recorded elevated air-quality readings on days when the odor was strong and asked the board to require a fuller review.

Supervisor Shamann Walton moved to affirm the Planning Department's categorical-exemption determination, saying the project was small-scale and subject to odor-control and state regulatory requirements. "The project is not a major cannabis cultivation facility as the appeal suggests," Walton said in making the motion. The motion was seconded by Supervisor Dean Preston and passed on a 9-0 roll call.

Votes were recorded as follows: Supervisor Connie Chan (excused), Supervisor Matt Dorsey — aye; Supervisor Joel Engardio (Angadio on roll) — aye; Supervisor Rafael Mandelman — aye; Supervisor Ahsha Safaíe — aye; Supervisor Gordon Mar (Melgar on roll) — aye; Supervisor Aaron Peskin — aye; Supervisor Dean Preston — aye; Supervisor Hillary Ronan — aye; Supervisor Shamann Walton — aye.

The board's action upholds the Planning Department position that the site's change of use and equipment installation involve no unusual circumstances that would trigger a mandatory environmental impact report. The department pointed to the city's odor-mitigation plan requirement and the state Department of Cannabis Control rules as regulatory safeguards. Appellants and some community commenters urged the board and the mayor's office to require more extensive monitoring and to consider setbacks from residential uses for cultivation in industrial buffers.

The board's affirmation closes the appeal at the supervisor level; permit conditions and regulatory compliance will be addressed during subsequent permitting steps by city departments and state regulators.

Provenance: first related remarks to the board began when appellant Barbara Tassa opened the appeal at the public hearing (transcript excerpt: "My name is Barbara Tassa and I'm a resident of the Bayview neighborhood...") and the discussion concluded with the roll call affirming the categorical exemption (transcript excerpt: "The motion is approved and the categorical exemption determination is affirmed.").