States struggle to implement effective environmental regulations for marijuana

(This story is part of the cover package in the July-August issue of MJBizMagazine.)

When it comes to being environmentally friendly, there are things marijuana businesses can do voluntarily and things that states mandate they do.

Like any type of business, marijuana companies are required to comply with environmental and energy regulations laid out by their respective states.

Such regulations can include how to treat or dispose of wastewater and adhere to energy-efficiency standards that often require specific lighting or heating, ventilation and air conditioning (HVAC) equipment.

The cannabis industry’s outsized impact on the environment – especially high energy and water use – increasingly is catching the attention of regulators, and some states are developing marijuana-specific environmental regulations in response.

“Energy efficiency was a bit of an afterthought as states were putting their rules together,” said Sam Milton, principal of Portland, Maine-based Climate Resources Group, a consultancy specializing in indoor horticulture.

“It’s just not, frankly, a huge priority of regulators or the commissions,” he said. “The environmental stuff gets shunted aside.”

States that have taken cannabis-specific environmental action include California, Illinois, Massachusetts, Michigan and New York.

Some cities and towns also have taken environmental measures, such as Ann Arbor and Grand Rapids in Michigan, Beverly, Massachusetts, and Boulder, Colorado.

While these areas have their own rules, there are some common themes among the regulations, most notably an effort to reduce the cannabis industry’s voracious energy usage, Milton said.

“The first theme is: How do we limit the overall energy intensity of the industry, the lighting and the HVAC? Those are the two biggest areas that comprise cultivators’ energy use,” he said.

“States with mandates, they address those two technology types.”

For example:

The state requires that growers use an integrated HVAC system with on-site heat recovery for reheating dehumidified air as well as a chilled water system with on-site heat recovery for reheating dehumidified air.

Growers’ lighting power density (LPD) may not be higher than 36 watts per square foot of canopy – essentially, a 576-watt bulb for a 4- x 4-foot grid.

Licensees also can comply by using lighting fixtures from the DesignLights Consortium’s Horticultural Qualified Products List that have photosynthetic photon efficacy (PPE) that is 15% above the organization’s minimum.

The state also requires license applicants and renewals to submit an annual report showing energy, water and gas use.

The state has similar rules to Massachusetts, except they apply only to recreational cultivators.

Illinois cultivators, depending on their size, must use ductless, split HVAC units, variable refrigerant flow HVAC units or similar energy-efficient HVAC options.

Illinois also mandates automated watering systems and equipment for capturing condensate.

Cultivation license applicants must submit energy- and water-use plans as well as waste-management plans.

All require license applicants and renewals to submit an annual report showing their energy, water and gas use.

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While Milton and other industry sustainability advocates welcome a bigger focus by states to make for a greener cannabis industry, they said the measures often have only marginal impact.

One problem is that these regulations are hard to enforce, Milton said.

An exception is Massachusetts, which requires an independent, third-party energy evaluator to certify that licensees are complying with environmental rules.

Evaluators check what type of lights are being used, how many there are and the lighting layout, Milton said.

He also believes that state regulators tasked with crafting and enforcing environmental rules should be better educated on cannabis-sustainability issues.

“The regulators need to get educated around what the regulations actually entail,” Milton said.

“They have a checklist of stuff they need to be looking for in the facility; all the aspects – especially the energy piece – can be very technical.

“The inspectors are often not qualified to be inspecting for energy and environmental rules and regulations.”

Beyond that, regulators need to educate growers about the rebates that are available to them when they buy energy efficient equipment.

Incentives and information about that is more effective than regulations that deter somebody, Milton said.

Omar Sacirbey can be reached at omar.sacirbey@mjbizdaily.com.