Sustainability

Ron Flax

Amanda Borup

Roberta Smith

Emily Backus

Sustainability and Regulation of the Cannabis Industry

Ron Flax Boulder County Land Use

Cannabis Cultivation – Sustainability Regulations

Current Regulations:

• Land Use / Zoning Restrictions

• Sustainability Requirements

• 100% renewable energy offset

• On-site renewables

• Community Solar Gardens

• Energy Impact Offset Fund

• Safe disposal of used lamps

• Compostable waste stream & water usage (under development)

Energy Impact Offset Fund – Energy Monitoring

• Install energy monitors on all participating grows.

• Provide business-specific energy data and

training to owners and operators about load

shifting, peak reduction, energy usage patterns

and operational opportunities

• Use energy data to quantify consumption and

assess fees for fund participation

Boulder County Energy Impact Offset Fund (BCEIOF) Objectives

Mission: To support measures that offset the environmental impacts from this industry

Strategy: Redirect offset money into local projects

• Local projects are more verifiable

• Local projects stimulate the local economy

• Help the industry reduce costs first

– Demand rate savings

– Optimized process and facility design

– Efficiency retrofits

– Information sharing (regional and national)

Pricing for the Offset Fund

The Externalized Costs of Electricity

Carbon emissions of regional electric grid x

Social Cost of Carbon

= 3.58 ¢ per kWh (2014 data)

Boulder County Commissioners approved a price of 2.16 ¢ per kWh for 2015 & 2016.

Adopted August 2014

Overview of Calculation

Energy Consumed – Baseline Consumption Value =

Energy to be offset

Energy to be offset x Carbon Intensity of Grid = Carbon

to be offset

Carbon to be offset x Social Cost of Carbon = Fee

Example: 5000 sqft grow, using 46,000 kWh per Month (estimates use 2015 data)

Estimated Production (pounds of dried flower) =

34 pounds per month (408 pounds per year):

Sales = $261,120 per month ($ 3,133,440 per year)

Utility bill = $4,000 per month ($48,000 per year)

Offset fee = $869 per month ($10,428 per year)

Power, Energy, & Load Factors

Height of curve = power (kW)

Area under curve = energy (kWh)

Load Factor = ratio of average power to peak power

Source: Brad Queen, Cube Resources

Load Factor

Sample from BCEIOF Participants

Optimized Grow Over Year

22.8% Cost

Variation

Source: Brad Queen, Cube Resources

Hot Weather Load Cycle with HPS

Disaggregation

Compressor struggling to move

heat to a higher heat sink

AC still fighting mid-day heat after lights

are off. Dehumidification shifts

to AC when long run times occur.

Source: Brad Queen, Cube Resources

Some Lessons Learned

• Substantial opportunities for load factor improvements.

• “Split incentives” are a substantial barrier. • Energy productivity (not efficiency) is ultimate

measure of improvements.

• Natural gas data is necessary to understanding greenhouses vs indoor cultivation.

• Production data is necessary for full understanding. (Colorado Energy Office study).

• Many of the fundamental problems are the same as other commercial buildings (but magnified by the energy use intensity).

Manufacturing of Infused Products

Solvent Handling and Standard Operating Procedure Documentation

More Information

Coming Soon: Marijuana Industry Energy Use Report, Colorado Energy Office

Thank You

Ron Flax Chief Building Official Boulder County Land Use 2045 13th Street Boulder, CO 80306 rflax@bouldercounty.org www.bouldercounty.org

Boulder County Marijuana Licensing marijuanalicensing@bouldercounty.org

www.bouldercounty.org

Denver Marijuana Management Symposium

Oregon Recreational Marijuana Program

State Law and Responsible State Agencies

▪ Measure 91: Passed by voters in November 2014

▪ Statutes: ORS Chapter 475B

▪ Administrative Rules: OLCC Division 25

▪ Oregon Liquor Control Commission (OLCC): recreational marijuana businesses and worker permits

▪ Oregon Health Authority (OHA): medical marijuana activities/businesses, testing standards and requirements

▪ Oregon Department of Revenue (DOR): tax collection

▪ Oregon Department of Agriculture (ODA): commercial kitchens, scale certification, certain food handling activities, pesticides

▪ Local jurisdictions: law enforcement, governing bodies, code enforcement

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ORS Chapter 475B and OLCC Administrative rules – Division 25

– Land Use Compatibility Statement (LUCS) signed by local jurisdictions for all licenses

– Producer licensees required to provide a water and energy use report at time of application

– OLCC statutory authority to set marijuana canopy designations to insure indoor and outdoor production is equal in Oregon ▪ Mature flowering plant canopy tiers at a 1:4 outdoor to indoor ratio

– Verification of legal access to water for production

– Collaboration with Oregon DEQ on waste disposal and composting options

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Task Force on Cannabis Environmental Best Practices

(1) Support access to education and technical assistance regarding best practices for energy and water use in cannabis production and regarding available incentives;

(2) Support the creation of voluntary third-party environmental best practice certification;

(3) Encourage research into cannabis issues, including environmental best practices, lighting, health and safety, and other areas of importance related to the cannabis sector;

(4) Investigate the adequacy of water regulations applicable to small-scale producers.

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– Guidebook to better prepare applicants to establish legal operations in Oregon and comply with state and local laws.

▪ Land Use

▪ Workplace safety

▪ Taxes

▪ Pesticide use

▪ Air emissions

▪ Health insurance for employers and employees

▪ Energy use

Created based on publication by IRAC workgroup in Washington State

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www.marijuana.oregon.gov

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Building Safety with Sustainability

Roberta Smith, RN, MSPH, CIH Occupational Health Manager

Colorado Department of Public Health and Environment

Control of Occupational

Hazards

Source: NIOSH

Workplace Hazards

• Identified hazards in the marijuana industry

– Biological

– Chemical

– Physical

Biological Hazards

• Mold

• Sensitizers/Allergens (dermal)

• Sensitizers/Allergens (respiratory)

Chemical Hazards

• Carbon dioxide

• Carbon monoxide

• Indoor Air Quality (Volatile Organic

Compounds)

• Pesticides

• Disinfectants/ Cleaning Chemicals

• Nutrients/ Corrosives

Physical Hazards

• Flammable/ Combustible Liquids

• Compressed Gases

• Occupational Injuries

• Ergonomics

• Workplace Violence

• Walking and working surfaces

• Working at Heights

• Electrical

• Noise

• Environmental Hazards

• Powered Industrial Trucks (forklifts)

• Lighting Hazards

• Machines

• Confined Spaces

Prevention Through Design

• NIOSH initiative launched in July 2007.

• “The practice of anticipating and “designing out”

potential occupational safety and health hazards

and risks associated with new processes,

structures, equipment or tools , and organizing

work, such that it takes into consideration the

construction, maintenance, decommissioning and

disposal/recycling of waste material, and

recognizing the business and social benefits of

doing so.” (NIOSH, 2010)

Prevention Through Design

Meets Hierarchy of Controls

Occupational Health Hazard

Prevention through Design

• Biological Hazards

– Mold- tied to water usage

– Risk factor is moist/ humid environments

– Ensuring wet areas are dried appropriately

use can help eliminate issues with mold.

Occupational Health Hazard

Prevention through Design

• Chemical Hazards

– Cleaning/ Disinfectant Chemicals

• Substitute with product that is effective against

the targeted organisms but less harmful to

people/ environment.

– Volatile Organic Compounds

• Elimination or substitution with a less hazardous

chemical.

– Nutrients/ Corrosives

• Consider using pre mixed nutrients

Occupational Health Hazard

Prevention through Design • Physical Hazards

– Noise

• Design of space can have effect on noise levels and vibrations.

• Existing spaces can be evaluated to reduce noise levels indoors

• Buy Quiet/ Quiet by design

– Electrical Hazards

• Design of electrical outlets to prevent cord trip hazards

• Effective guarding of equipment

• Maintaining electrical equipment in good working conditions

Occupational Health Hazard

Prevention through Design

• Physical Hazards (continued)

– Lighting Hazards

• Changing to different bulbs reduces universal

waste

• Metal halide bulbs can be explosive- alternative

lighting can help reduce employee injuries

– Slips, trips, falls

• Efficient water use systems can help to reduce

excess water on floors.

Don’t Create New Hazards

• Skylights – Fall protection

• Green Rooftops – Safe access to users

– Fall protection for installers and maintenance staff

• Lighting – Ensure that lighting remains adequate for

worker tasks and activities.

PTD Development Tools

• Use a risk-assessment driven process that promotes zero harm to people/ environment

• Use hierarchy of controls to achieve a tolerable level of risk (as low as reasonably practicable, or ALARP)

• Investigate incidents and conduct root-cause analysis to generate lessons learned that drive improved understanding of risk and behaviors.

• Train senior management to understand the effect of facility design on injury/illness.

References

• NIOSH [2013]. The state of the national initiative on prevention through

design. Cincinnati, OH: U.S. Department of Health and Human Services,

Centers for Disease Control and Prevention, National Institute for

Occupational Safety and Health, DHHS (NIOSH) Publication No. 2014–123.

Collaborative Approaches to

Environmental Challenges in the

Cannabis Industry 2016 Marijuana Management Symposium

Presentation

Emily Backus

Sustainability Advisor

Certifiably Green Denver

• Established in 2009

• Administered by the City and County of Denver’s

Department of Environmental Health

• Over 1700 businesses enrolled

• Over 200 certified businesses and events

• Work with all types of businesses throughout the city

Program Goals & Achievements

• Goals:

– Foster a network of green businesses in Denver

– Conserve energy and water; reduce environmental impacts of Denver businesses

– Support the local small business community

• Metrics

– Nearly 5 million gallons of water per year

– 28 million kWh saved

– $2.7 million reduction in utility bills

Cannabis Areas of Concern

• Energy – significant electric and natural gas use from

lighting, HVAC, CO2 production, water purification equipment

• Water use and wastewater quality

• Solid Waste – at the facility and after products leave the

store

• Worker health and safety

Opportunities

Barriers to Adoption of

Sustainable Practices

1. Best practices are unknown, not proven or in development

2. Historic culture of secrecy (now diminishing)

3. Distrust of new equipment and technology due to faulty products marketed in recent years

4. Federal funding barriers to university research

5. Rapid technology development – what is cutting edge today will be out of date in 5 years

6. Variation in growing techniques and styles means one technology does not suit all growers

Engaging the Industry

• Engagement began when medical cultivation facilities began to move from small home-based operations to larger facilities – primary area of discussion/concern was odors.

• Developed a relationship with a local entrepreneur who was passionate about sustainability and owns several cannabis businesses around 2012 – began hosting regular, informal meetings in 2014

• Formalized Cannabis Sustainability Work Group via open applications in December 2015.

Overall Approach

Utilize an existing non-regulatory program that has good

relationships with industry to provide education.

• Engage stakeholders;

• Determine priorities and associated best practices;

• Develop program to engage larger community and

provide useful education;

• Utilize rebates as the carrot if possible; and

• Measure results – kilowatt hours saved, gallons of water

saved, waste diverted from landfill, number of odor

complaints, worker’s comp claims.

Tips for Developing a Network

• Creating trust between growers and government is

essential.

• Start with someone you know and expand from

there.

• Host regular, open meetings

• Ask for a tour! Growers with good practices are

usually willing show off their new technology – normally the only government interest is from

regulators.

Utilize Industry Expertise

• Growers know what works and what doesn’t.

• Production facilities are living laboratories for new

technologies.

• Getting growers to share what they know with one another is

one of the greatest challenges but also a huge opportunity.

• Companies that make related

technology (lighting, HVAC systems,

odor control) are a great source of

information and expertise, but be wary

of exaggerated performance claims.

Cut Your

Energy Bill

by 75%!

Collaborate with Partner

Agencies and Organizations

Tap into the expertise and manpower of:

• Utilities

• Neighboring municipalities (opportunities to

streamline programs)

• Related agencies

• Universities and nonprofits

Cannabis Sustainability Work

Group Projects

• Developing a free Best Management Practices Manual for indoor cultivation – to be released in early 2017

• Survey of cannabis businesses on environmental practices

• First Cannabis Sustainability Symposium held on October 26th, with over 200 attendees

• Plan to host additional educational events in 2017

Recognition – Finding a Fit

• Cannabis retail stores (aka dispensaries) are

certified under existing retail standards.

April 29, 2016

Recognition – Finding a Fit

• Some business owners have expressed interest in a

certification for their cultivation facility - Certifiably

Green Denver may develop if the industry requests

• Certification criteria would be based on BMPs and

input from industry stakeholders

• There are other third party certifications options

(Clean Green, Pesticide-Free, Cannabis

Conservancy) – may not need a local certification

Mind the Gap

• We still have a lot to

learn!

• Much more data and

research is needed.

• Best practices will

evolve and we need to

keep up.

Questions