MJBiz - July/August 2024 - 35

Energy-efficient HVAC systems are increasingly common in indoor cannabis cultivation facilities.
Photo by stock.adobe.com/denboma
on, they're the most important to
plant health: lights and air quality,
air movement and cooling, heating
through that space, " Anderson said.
DEMANDS FOR REGULATORY
COMPLIANCE
The CEQA, in effect since 2019, offers
an interesting case study in cannabis
industry energy-efficiency policy.
One challenge is that local jurisdictions
have been slow to write-in
their respective regulations, according
to Chelsea Haskins, a member
of the National Cannabis Industry
Association's Cannabis Cultivation
Committee and the director of state
and local licensing at MWG Holdings,
which owns and operates California
cannabis company Perfect
Union.
The cost of complying with
the CEQA likely is driving many
operators away from the legal
market, and they aren't renewing
their licenses, Haskins said.
The administrative and reporting
work alone can cost $30,000 because
specialized work such as biological
surveys and cultural reports, which
examine whether the site contains
archeologically significant remains,
are required.
Complying with CEQA rules can be
especially hard on legacy operators,
said Haskins, who is working to help
educate the market on best practices
for water use, energy consumption
and other issues.
Since 2022, as part of the license-renewal
process, California
cultivators also have been required
to report their own average
weighted Greenhouse Gas Emissions
Intensity to the Department
of Cannabis Control, as well as the
energy suppliers for the license
period.
If the cultivator's number is
higher, they're asked to buy carbon
credits, which motivates many
growers to conserve energy.
That's why a growing number of
cultivators are using mixed-light
greenhouses, where the sun and
artificial light can be used in tandem.
Breathable blackout curtains
prevent light pollution, keep air
flowing through the grow and don't
block ventilation.
Some blackout curtains also have
a thermal layer that can be used to
regulate the temperature inside the
greenhouse.
Environmental sensors also
can make cannabis grows more
efficient. Growlink's Environmental
Sensor Module, for example, tracks
temperature, humidity, carbon
dioxide and light sensors to fine
tune growing conditions.
But implementing these
technologies and complying with
the CEQA are expensive endeavors,
and the process likely is driving
many cultivators away from the
regulated market, according to
Haskins. She recommends reaching
out to energy suppliers to discuss
how to access rebates.
In the long term, Haskins said
she hopes that, with enough
support, cultivators will be able to
both adhere to the environmental
regulations and thrive.
" It's my opinion that if we educate
about environmental regulation,
what's going to be required, then cultivators
can make a road map for how
to plan out their license application
and opening their business. Then
we're going to start to see a better
cultivation market in California. "
mjbizdaily.com | July-August 2024 35

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MJBiz - July/August 2024

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