Businesses in the cannabis industry, similar to other businesses, are required to comply with energy and environmental rules established by their respective states. Such rules may include how to adhere to standards on energy efficiency requiring specific lighting or HVAC equipment, or how to dispose of or treat wastewater.
This industry’s huge impact on the environment, particularly the significant use of water and energy, is drawing the attention of regulators. This has prompted some states to enact cannabis-specific environmental regulations in response. States that have taken such action include Illinois, California, New York, Michigan and Massachusetts.
A number of towns and cities have also implemented similar environmental measures, including Boulder, Colorado; Beverly, Massachusetts; and Grand Rapids and Ann Arbor in Michigan.
While these jurisdictions have their own regulations, some common themes have been observed, a good example being the efforts being made to decrease the high use of energy by the marijuana industry.
Below, we look at the ecoregulations of the different jurisdictions in detail.
Illinois
All growers in the state, depending on their size, are required to use variable refrigerant-flow HVAC units; split, ductless HVAC units; or similar energy-efficiency HVAC options. The state has also made it compulsory for growers to have equipment to capture condensate as well as automated watering systems.
It should be noted that the regulations apply only to recreational growers.
California
The state mandates that cultivators use chilled water systems and integrated HVAC systems with on-site heat recovery to reheat dehumidified air.
Vermont and New York
Both states require that during license renewals and applications, companies submit yearly reports showing their use of gas, water and energy.
Oregon and New Jersey
The states require that applicants of cultivation licenses submit waste-management plans as well as water and energy-use plans.
Massachusetts
The state of Massachusetts has implemented a rule similar to that of New Jersey and Oregon. It also directs that the lighting power density of all cultivators not be higher than 36 watts per feet of canopy.
While these regulations look easy enough to implement, Climate Resources Group’s principal Sam Milton says that isn’t the case. Milton explains that these rules are hard to enforce in these jurisdictions, with the exception of Massachusetts, which uses an independent third-party evaluator to ensure that licensees are conforming to environmental regulations. He also highlights the importance of growers being educated on the rebates afforded to them when they purchase energy-efficient equipment. Information and incentives, Milton notes, may be more effective than rules in this case.
This patchwork of environmental laws is just another illustration of the challenges that MSOs such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) have to contend with as they navigate different regulations in each market they are licensed to operate within.
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