Committee Blog: Three Things Your Company Can Do For Sustainability (And Why You Should Care)

Contributors to this article include current and former members of NCIA’s Sustainability Council: lead author Laura Wilkinson Sinton, Shawn Cooney, David Schwartz, Fred Whittlesey, Gabe Cross, Emily Long, and NCIA’s DEI Manager, Mike Lomuto.

“Everyone talks about changing the world. Nobody talks about changing themselves.”  – Leo Tolstoy

Sustainability can be a confusing term for cannabis companies. The reality is, in a still- federally-illicit market, individual businesses taking active steps towards reducing their own environmental impact (no matter how small) is the catalyst for systemic change across the broader industry.  Does sustainable mean to recycle? Does it mean regenerative farming? Compostable packaging? 

It means some – or all – of those things, depending on your industry vertical. It means a collection of all of the seemingly little steps toward a larger collective impact. 

Sustainability is the ability to exist and develop in the current generation without depleting our natural resources for future generations.

Here are our top 3 reasons why you should pay attention and take action.

Your future depends on it.

As the cannabis industry seeks legitimacy with both private and institutional investors, institutional and private investors have made it clear that a robust sustainability plan is mandatory. The Security and Exchange Commission (SEC) will be instituting reporting standards for publicly traded companies, and ESG (Environmental, Social, and Governance) reporting will be required. If you are or will be looking for capital and investors in the near future, you need to start reporting metrics today. If you have to play catch up, it may play out like musical chairs – leaving you with a “nosebleed” seat at the money table, if at all. Another point to consider – the number of women in cannabis has been rapidly declining, so pay attention to your hiring practices and be aggressive on inclusion. Women sit on investor boards and will be looking closely at your leadership gender balance metric when you court them. It’s both environmental AND social statistics they’ll be looking for and inclusion gives you a competitive advantage. The inclusion of minorities and those affected by the “War on Drugs” should be on your roster as well.

Your customers are demanding it.

According to a recent Calivate survey, 79% of cannabis retail customers (the revenue drivers) indicate through their purchases that environmentally conscious brands get their preference. Companies like Wyld, with their forward-looking ESG reporting and social justice activism, demonstrate the power of their market positioning. It has become a major competitive advantage for Wyld. You can make it yours, too. The ICR-Spectacle 2021 showed customers prefer to buy their weed from women (46%) and from people of color and veteran-owned businesses (44%). Sustainability and ESG reporting of these types of metrics go hand in hand. It will bring different perspectives (and customer acquisition viewpoints) to your strategy. It’s not just about the cheapest price point or highest THC anymore. And all indicators show that ESG reporting will play an even more crucial role in the future, with both investor and customer loyalty,

It’s actually easier than you think.

Depending on your vertical, you can easily start measuring and setting benchmarks today. Most of these metrics you already measure, but not for sustainability reporting. Efforts to improve them will impress investors with both prudent money-saving strategies and social indicators. Here are a few easy ones to start quarterly or monthly, depending on your company.

Water. Indoor and outdoor grows and most manufacturers already measure water usage. Establish a benchmark of where you currently are and measure quarterly for seasonal changes. Then you can develop strategies to reduce usage, including, as simply as installing low flush toilets and watering less volume but more frequently throughout the day to reduce wasted runoff 

Electricity/Power. Everyone, regardless of vertical, pays a power bill. Establishing a quarterly benchmark and implementing reduction strategies (including time of day use and working with local utilities) will save both money and power usage e.g. lower wattage LEDs. Avoid bandaid approaches to environmental controls such as installing more and more systems providing a single function, like additional large dehumidification units.  You don’t want to be using diesel generators for your indoor cultivation facility in a major Port of a major California city on the water adjacent to a low-income population area like these guys. It will get you in trouble with every authority, and likely cost you your license (and any downstream customers). The news cycles will hammer you and your brand’s reputation in the worst possible way. Be mindful of the perils of making a quick buck with cheap, polluting energy. It comes at a cost. It’s unsustainable.

Waste. All verticals can measure their waste output. Organic waste with cultivation can be included in the metrics of landfill-waste diversion (and there’s a simple way to calculate this measurement in “cars taken off the road.” Plastic waste – which so many manufacturers must use for child-proof packaging – is a fertile arena for reduction. Several cannabis packaging companies like Sana Packaging use oceanic plastic lids on glass bottles, which are recyclable. Wyld is now using compostable child-proof packaging which is a revolution in our industry. Manufacturers have different takes on waste depending on process type. 

The most important thing is to just get started. Even if you think you don’t need it today, you will tomorrow. And make sure your CEO is onboard 100%. If you don’t have the backing of your CEO and investors, you will have an uphill battle that will make your sustainability goals nearly impossible. Make sure you bring them the data and the reasons why your company will benefit financially from these actions and get them to engage in this process. This may mean hiring an environmental sustainability professional or consulting firm to help collect the data to bring to the executives showing the clear financial benefits. If you are a smaller company, try it yourself.

If you feel overwhelmed, try this free sustainability website to input sample data and see instant graphs. It’ll start you on the path, and prepare you for the future of cannabis. 

But only if you plan to be around for it.

 

 

Committee Blog: VPD Topics for Cannabis Cultivation and Opportunities to Reduce Facility Energy Costs

by NCIA’s Facilities Design Committee

Indoor cannabis cultivation facilities are complex environments, where a large number of variables interact to create an ideal ecosystem to grow cannabis. The upside of an indoor facility is it allows a year-long growing climate, optimized for each stage of the plant grow cycle. The downside, however, is creating this ideal climate is very energy-intensive.  

There are three (3) main types of precision cooling equipment offered in the cultivation space. Those are Air Cooled DX, Water Cooled DX, and Chilled Water Units. DX stands for direct expansion systems. The immediate and most noteworthy difference between these systems is that DX units cool air using refrigerant, and Chilled Water units cool air utilizing chilled water. A DX unit uses refrigerant-based cooling and cools indoor air using a condensed refrigerant liquid. Typically, the decision regarding which cooling source is better for a cultivation facility is usually driven by the size of the cooling plant as well as other unique site conditions. Selecting the right HVAC system for your cultivation facility can be a challenging process driven by many factors, however this is beyond the topic of discussion for this article, it should be noted that the following analysis assumes an Air Cooled DX based system.

The total energy costs for indoor cannabis grow operations typically vary between 25%-50% of total operating costs (or approximately 150-200 kWh/sq.ft). In comparison, energy use in a typical commercial building environment is approximately 25 kWh/sq. ft. As indoor cultivation facilities increase, they can be a source of strain on electrical grids. A recent study showed indoor cannabis cultivation alone accounted for 4% of the energy grid usage in Denver. (IEEE, 2020)

With that context, any areas we can identify to improve energy efficiencies without introducing a negative impact to the grow environment can have enormous bottom-line impacts for cultivation owners and society at large. 

In this article, we are going to be examining two ways we can optimize HVACD systems to improve energy efficiency. When HVACD systems are designed for grow facilities, the primary variables we are looking to influence are the following psychrometric properties: temperature (either wet or dry bulb) and relative humidity. Mechanical engineers will often refer to an information-packed graph called a psychrometric chart shown below.

 

This chart helps to visualize the relationships different properties of air like temperature, humidity (relative and absolute) and dew points along the saturation curve have with each other. This is useful to analyze, as these are direct inputs to a scientific measure often favored by growers called Vapor Pressure Deficit (VPD).

Vapor Pressure Deficit, simply described, compares these variables to determine how much additional room for water vapor there is in the air. This is important as it determines how readily cannabis plants can transpire. Controlling transpiration rates help to aid in healthy, robust growth through the plant life cycle. Growers tend to want lower VPD, and thus lower transpiration, early in plant maturity, and increase to higher VPDs, and thus high transpiration, at the flowering stage before harvesting.

 

So we know a successful indoor cultivation facility HVAC system will need to control temperature and humidity to ensure the desired VPD values. How can we do that efficiently?

Stand-Alone Dehumidifiers Are Inefficient

A cannabis plant can transpire up to 99% of the water absorbed through its roots. Due to this, we often tell people that designing an indoor cultivation facility is like designing a data center with a swimming pool inside. Because of the increased humidity introduced from plant transpiration, we must pay special attention to dehumidification strategies within the grow space. Humid air requires treating significant latent loads in the grow space, requiring additional energy to remove moisture from the airstream. This is one reason HVACD systems can consume up to 50% of the energy budget in a cultivation facility. As previously mentioned, higher humidity levels will lower the VPD in the room, preventing a plant from transpiring effectively to continue healthy growth. To combat this, sometimes stand-alone dehumidifiers are added into the grow room.

While these units can do the job of removing moisture from the room, it is a very energy-intensive process. One of the issues with stand-alone dehumidifiers is that they reject heat back into the grow room, thereby adding additional cooling load onto the main HVAC equipment. 

Integral Hot Gas Reheat System

An air handling unit, sometimes called an air handler or AHU, is a piece of equipment that is used to condition and circulate air as a component of a heating, ventilating, and air conditioning system. 

The air handler is usually a large metal box that contains a blower, heating and cooling elements, filter chambers, sound attenuators, and dampers. It then connects to ductwork that distributes the conditioned air throughout the space before returning it back to the AHU.

Of particular interest are the units cooling coil and reheat coil. These two components are namely responsible for controlling VPD levels in our grow space. In an AHU equipped with Integral Hot Gas Reheat, the cooling coil serves as a dehumidifier, by cooling the air thereby reducing its moisture/latent load (we recommend considering capturing this water for treatment and reuse: read more here). The hot gas reheat capability utilizes heat from grow space and compressor heat to reheat the air before returning to the grow space (without using additional heating energy).

While this may seem like a minor design change, it results in a considerable reduction in energy. As the chart below illustrates, leveraging Integral Hot Gas Reheat units can result in a 30-35% reduction in HVACD energy when compared with other dehumidification systems. Additional automation capabilities built-into these systems will ensure that the grow room will remain tightly controlled within the desired state points of your grow room to optimize VPD.

 

This reduction in energy quickly adds up to reduced utility bills. Despite marginally higher upfront costs as compared to standard HVAC equipment coupled with standalone dehumidifiers, this option results in a lower 5-year system cost than common HVACD systems installed in cultivation facilities, and these savings will only increase over time.  

Maintaining Consistent VPD, but at higher Temperature / Humidity Ranges

The second energy-saving measure we would like to discuss goes back to the earlier discussion of VPD. Recall the equation for VPD is

V P sat – V P air = VPD

This is important, as it provides growers the flexibility to fall within desired VPD ranges, but at higher temperature and humidity ranges than typically used. Many growers target grow room setpoint temperatures around 72-75F and limit relative humidity to a maximum of 50 percent, but by allowing slightly higher room setpoint temperatures of 76-82F, with corresponding relative humidity increases, we can create identical VPDs at higher setpoint temperatures. The cost-benefit of this small adjustment is considerable. The HVAC system (including cooling and dehumidification) can be sized at roughly 20-30% smaller capacity, reducing the owner’s up-front equipment costs. In addition, the system’s energy consumption and costs during operations will be significantly lower, to the tune of 30-40%. In a theoretical 30,000 square foot facility, this could result in $1,125,000 savings in the first 5 years.

 

The case for a hybrid greenhouse, using VPD controls

Another way of growing instead of full indoor, is a highly efficient, sealed greenhouse. It is designed to maximize sunlight inside the growing environment, meaning energy used for lighting is dramatically reduced. And because it is sealed, energy-efficiency is maximized, as leakage is kept to a minimum. In order to make this work, these greenhouses need to be hybrid (using insulated walls and glazing) and the orientation and design play a bigger role.

In this hybrid greenhouse environment, the growing space typically heats up as soon as the sun comes out, no matter the outside temperature. Cooling in this instance would increase the power usage vs. increasing the humidity to keep the VPD level in the same range. When the sun goes down, the opposite happens. The grow environment starts to cool and it would be expensive to try and keep the temperature up. 

In order to achieve VPD control, the control system needs to be able to variably adjust temperature and humidity, based on inputs like weather forecast, time of the day, day of the year, etc. Being able to control the grow environment by VPD level will significantly reduce the energy consumption for your HVACD system.

 

Member Blog: ESG Initiatives and Potential Impacts on Cannabis CRE

by Bryan McLaren, CEO and chair at Zoned Properties, Inc.

Environmental, Social, and Governance (ESG) initiatives are central to the evolving business landscape as more organizations dedicate resources to amplify their social impact, execute on purpose-driven goals, and ultimately create long-term value.  

Pressure from stakeholders and shareholders has been instrumental in transforming how organizations are planning for the future. In the Accenture Future of Work Study 2021, 65% of employees believe organizations should be responsible for leaving their people “net better off” through work and 71% of consumers believe ethical corporate practices and values are an important reason to choose a brand. But even beyond this shift in demand for company transparency and a more defined investment in communities from corporations, ESG reporting will soon be a necessity for public companies and a variety of financial organizations. 

The Securities and Exchange Commission’s climate-related disclosure earlier this year is a major shift in how companies will be structured requiring corporate entities to proactively integrate ESG into their business model. 

Though the proposed rules will most likely lead to legal challenges, accepting the realities of where global business stands today and the environmental issues communities are facing should be at the forefront of every cannabis business, whether they are public or private. There will also inevitably be opportunities that develop from these policies to engage with stakeholders and increase value. 

Recent data illustrate the positive results of adopting new standards and reporting methods. According to the Accenture Future of Work Study 81% of sustainable stock indices outperformed their peer benchmarks in 2020. ESG focuses on the Triple-Bottom-Line principles, which essentially advocates for a balance between people, profit, and planet when considering any program or project within an organization. Sustainability professionals who have been advocating for both ESG and Triple-Bottom-Line principles will likely not be surprised by these statistics, as their focus on a long-term, balanced approach to creating value can be less subject to the waxing and waning fluctuations that come with the single-bottom-line approach of focusing only on short term profit.

ESG in Cannabis Real Estate

It is essential for cannabis companies to make ESG initiatives a priority as more investors look to these frameworks as potential predictors for future success. Already some cannabis license applications are requiring environmental impact statements and state-level environmental compliance documentation. 

The cannabis industry also has a unique opportunity as a relatively young and emerging industry. Many cannabis companies already have the capacity and infrastructure to adapt swiftly to changing regulations. In the new era of ESG, cannabis corporations are in the position to make these principles a part of their core narrative early on and become more attractive to investors. 

In commercial real estate, here are some of the most relevant ESG initiatives to consider. 

  • ENERGY MANAGEMENT (e.g. Utility Installation & Efficiency)
  • WATER & WASTE WATER MANAGEMENT (e.g. Water Use & Treatment)
  • PRODUCT DESIGN & LIFECYCLE MANAGEMENT (e.g. Building Operations)
  1. PHYSICAL IMPACTS OF CLIMATE CHANGE. (e.g. Indoor Air Quality)  

These are based on the Sustainability Accounting Standards Board’s (SASB) materiality finder for real estate, which also provides insight across a broad range of industries for those interested in other sectors.

There are many ways to begin monitoring and collecting data that will help provide a clearer picture of a cannabis facility’s operational efficiency. For facilities already existing in the cannabis ecosystem, property owners and operators should consider investing in eco-friendly waste management initiatives, repurposing materials when possible, and ensuring recycling capabilities at every operation. Utilizing technology platforms to track water consumption and overall environmental performance will allow an operation to investigate what opportunities exist to reduce energy use by replacing equipment or introducing more natural ventilation into spaces to reduce heating and cooling use. 

For those in the early stages of a cannabis real estate project, industry professionals should make ESG initiatives a part of their buildout strategy from the beginning. This means addressing the potential physical risks and impacts on a building where you’re looking to develop. Is the property in a flood zone and at risk of rising sea levels? Is the potential building site exposed to other natural disasters like wildfires?

Many of these environmental and climate-related risks also intersect on a social level. In cannabis real estate, companies should consider whether a building and its materials are safe for workers and the larger community. For example, due to changing weather patterns and increasing temperatures, air quality may decrease or there may be extended periods of drought. Planning ahead to mitigate some of these risks is essential, from considering the introduction of cisterns to collect rainwater during extreme weather that can be repurposed in drier seasons, as well as on-site green spaces and rooftop gardens that can generate cooler temperatures while providing a welcoming environment for employees.

The key to preparing for ESG requirements and ensuring that your organization is ready to tackle these issues is to incorporate these specific needs directly into project objectives and having experts on the project team that understand both short-term requirements and long-term opportunities.

Overall, cannabis real estate needs to be developed with geography and locality risks in mind. It’s not only a necessity to make energy-efficient and sustainable strategies a part of a facility’s infrastructure, but also consider where and how that property will be impacted in the future. 


Bryan McLaren serves as the Chairman and CEO of publicly traded Zoned Properties, Inc. (ZDPY). As a licensed Realtor, certified Green Roof Professional,and former City Sustainability Commissioner, with multiple Masters degrees focused specifically on Sustainable Development, Bryan has navigated state regulatory programs for environmental projects and cannabis commercial real estate projects nationally across hundreds of development projects.  

About Zoned Properties, Inc. (OTCQB: ZDPY):

Zoned Properties is a leading real estate development firm for emerging and highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investment through its integrated growth services.

Headquartered in Scottsdale, Arizona, Zoned Properties has developed a full spectrum of integrated growth services to support its real estate development model; the Company’s Property Technology, Advisory Services, Commercial Brokerage, and Investment Portfolio collectively cross-pollinate within the model to drive project value associated with complex real estate projects. With national experience and a team of experts devoted to the emerging cannabis industry, Zoned Properties is addressing the specific needs of a modern market in highly regulated industries.   

Zoned Properties is an accredited member of the Better Business Bureau, the U.S. Green Building Council, and the Forbes Real Estate Council. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended (the “CSA”). Zoned Properties corporate headquarters are located at 8360 E. Raintree Dr., Suite 230, Scottsdale, Arizona. For more information, call 877-360-8839 or visit www.ZonedProperties.com.  

Twitter: @ZonedProperties

LinkedIn: @ZonedProperties

 

Committee Blog: Brand Driven Package Design Cheatsheet

by Wendy Barr, CEO & Creative Director, Barrcode Branding
Member of NCIA’s Packaging and Labeling Committee

You want “that” package, the one that is flying off the shelves; the one that people photograph and post on social media; the one that makes the consumer feel something inside, something special, maybe even emotional. Maybe it’s a package they keep, reuse, save, share, and purchase over and over again.  

If you’re in retail, you want a package that earns you shelf space. A package that retailers want at eye-level in their stores and dispensaries, featured on their website, in their app, directly in front of the consumer… tantalizing, educating, and urging them to purchase. Admit it, you have an amazing product, and you want irresistible packaging design!

What does all gorgeous packaging have in common? 

YES!! Branding!

Cool, you have been listening…

Yes, it’s true, we’re extremely passionate about packaging design (and branding). That’s why we’ve committed our professional life to the packaging design industry. We want to understand why a consumer is compelled to purchase one package over another. What makes this package so hypnotic and desirable? We want the graphics, colors, messaging and overall design to appeal to something deep inside of the discerning adult consumer. It’s our goal to create a personal connection that expands beyond the product itself. The packaging is more than a mere vehicle. It should hold the sale, inform, and delight the consumer.

Did you know that packaging design is one of the last sustaining manufactured print products?

Think about it. Magazines, books and literature, posters, flyers, brochures, album covers (yes, I remember vinyl), even business cards are on their way out. But, product packaging is here to stay. It can’t be purely ‘digital’; the product has to go into something for transport, storage, information, and more. 

Your packaging is a billboard that represents your entire brand.

Your branding will dictate the look and feel of your packaging, and the language used to communicate the product’s value to the consumer. When you get this part right, you can experience huge rewards. But if you get this wrong, you may never get a second chance. Ouch, that stings…

Many businesses get this wrong, especially those in newer industries like the legal cannabis, CBD, and hemp industry, for example. Some companies opt for a white label product and simple packaging design created by the white label company. Or they print their own labels using their DIY logo and wonder why it’s not selling. It’s a great product, tried and true, but the packaging doesn’t communicate the brand value to the consumer effectively resulting in #epicfail. 

Why focus so much energy on Brand Driven Package Design?

If the goal is to be visible, popular, and profitable, your product packaging can’t be an afterthought. Your branded product packaging is part of the big picture. It’s functional marketing and should be treated as such. Keep it simple, clean, and on-brand, and you can’t go wrong. You got this!

Here is your mini cheatsheet:

Branding (need I say more?)

Your spot-on brand identity comes first, it has to, because your packaging design is a reflection of your brand. The logo, colors, fonts, imagery, and language must be indicative of your unique differentiation as a brand. 

Sustainability (it’s time to save the planet!)

Make sure that your packaging materials reflect your brand values and mesh with the product. Sustainability issues and concerns are critical due to the potential negative impact on the environment. Consider recycled and/or recyclable materials, and work with regulators and lawmakers to improve access and feasibility. 

Primary vs. Secondary Packaging (what does it all mean?)

Primary packaging is what directly holds and contains the product (like a bottle). Secondary packaging is the exterior packaging (like the box that holds the bottle) that protects and/or labels the product. Tertiary packaging is used for bulk handling, storage, and distribution.

Specialty Design Agency (can you say branding?)

Choose an agency that is or has worked closely with you on the development of your brand. A professional agency will have designers with expansive knowledge regarding packaging design, print production, branding, and marketing. Your packaging design, website, and marketing efforts must be intrinsically and cohesively linked to your brand identity.

Wait, maybe white label or private label would work for you. But, in that case, is branding still a valid concern? 

I’m so glad you asked! White labeling is hot and trending in the cannabis industry. But, is it right for you? Let’s take a look…

What are White Label Products?

White label products are mass produced by a manufacturer as a generic product, and sold to a retailer who will in turn add their own label and sell it under their brand name. The formula is standard and typically, cannot be customized. So, the only thing that you can customize is the branding, packaging design and brand marketing. 

What are Private Label Products?

Private label products are produced by a manufacturer as well, but in partnership with the brand to create a unique formulation. It is a longer, more expensive undertaking, but it results in an exclusive product. Retail brands use this to differentiate their products and cater to their niche audience. 

White Label vs. Private Label

How do business owners decide which is the best investment for them? Well, it’s important to weigh the price differential. White labeling is more affordable, but the product is not original. Private label requires a more substantial investment, but it allows for collaboration, flexibility, and exclusivity with regards to formulation, and in some cases, trademarking and market share. But, unless you have a loyal, expansive customer base and exceptional branding/marketing, it could be difficult to compete against established, well-known brands. 

What is exactly the same?

BRANDING! In the end, no matter the direction you choose, a white-label product or a private label, the only way to optimize your visibility and assure that your product stands out is branding. Having professional, eye-catching branding, a spot-on brand story and a unique branded marketing strategy can earn you distribution, shelf space, and loyal customers now and in the future. 

Short story long, if you are in this to win this, do it right the first time! Make it custom, make it YOURS!

 

 

 

 

Video: NCIA Today – Friday, October 22, 2021

NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday on Facebook for NCIA Today Live.

On the latest episode, Bethany discusses the millions of dollars the cannabis industry is losing each year to moisture, an update on cannabis policy reform in D.C. as the federal government acts on other issues, an upcoming Fireside Chat Webinar with our Government Relations Team on environmental sustainability, and more.

Registration to the Cannabis Business Summit in San Francisco is now open with special limited-time super early bird pricing on tickets available, head to our website for more information today.

 

Across the Country – State Cannabis News and Movement

by Madeline Grant, NCIA’s Government Relations Manager

As the deadline to submit feedback for the Cannabis Administration and Opportunity Act approached last week, our Government Relations team worked tirelessly to submit a detailed analysis and recommended improvements on behalf of the legal cannabis industry. The full comments and an executive summary can be downloaded here. The Cannabis Administration and Opportunity Act (CAOA), submitted in July by Majority Leader Charles Schumer (D-NY) and Senators Cory Booker (D-NJ) and Ron Wyden (D-OR), would remove cannabis from the schedule of controlled substances, create a regulatory structure and federal guidelines for cannabis products and state-legal markets, and is intended to support restorative justice for the people and communities that have been disparately hurt by prohibition while ensuring fair opportunities in legal cannabis markets for small businesses and marginalized communities. 

The introduction of the comprehensive draft language was a pivotal moment for the United States Senate and NCIA will continue to do whatever we can to ensure value-driven policies for the cannabis industry. Meanwhile, we continue to see movement at the state level as support for cannabis legalization efforts continues to grow. Here are some important updates happening at the state level.

California

California officials announced that they are soliciting proposals for a program aimed at helping small marijuana cultivators with environmental clean-up and restoration efforts. The California Department of Fish and Wildlife’s (CDFW) Cannabis Restoration Grant program will release applications this fall and remain open through spring 2023. The $6 million in potential funding, which comes from cannabis tax revenue, must go to government agencies, California nonprofits, or Native American tribes who would then work with cultivators on environmental efforts.

New York

The newly inaugurated governor of New York says she wants to “jumpstart” the implementation of cannabis legalization. Governor Kathy Hochul took a major step by making two key regulatory appointments to oversee the state’s cannabis market. Soon after they were quickly confirmed by the Senate during a special session. Former New York Assemblywoman Tremaine Wright (D) will serve as chair of the Cannabis Control Board, and former Drug Policy Alliance (DPA) staffer Christopher Alexander will be the executive director of the state’s Office of Cannabis Management.

Ohio

Ohio activists can begin collecting signatures for a 2022 ballot initiative to legalize marijuana in the state. The Coalition to Regulate Marijuana Like Alcohol (CTRMLA) launched its ballot effort last month. The new initiative is a statutory proposal and if supporters collect 132,887 valid signatures from registered voters, the legislature will then have four months to adopt the measure, reject it, or adopt an amended version. In the case of lawmakers not passing the proposal, an additional 132,887 signatures will be required to place the proposal before voters on the ballot in 2022.

Missouri

Another adult-use legalization proposal has been filed. Legal Missouri 2022 submitted the latest measure to the secretary of state’s office, and it will now go through a review period before potentially being certified.

New Mexico

The Cannabis Control Division announced applications are now open for businesses interested in legal cannabis producers licensed by the state of New Mexico. After an application is submitted, regulators will have 90 days to issue a determination.

Colorado

Colorado voters will decide on an initiative in November that would raise cannabis taxes to fund programs that are meant to reduce the education gap for low-income students. The secretary of state confirmed that the campaign behind the measure collected more than the required 124,632 valid signatures to make the ballot. The measure would give low and middle-income families a $1,500 stipend to have school-aged children participate in afterschool programs, tutoring, and summer learning programs.

As states continue to legalize medical and adult-use cannabis, be sure to check out our state policy map for updates. Our Government Relations team will continue to educate congressional offices as states move forward. It’s vital to have accurate information and resources for members and Congress and staffers on Capitol Hill. With advancements at the state level, we continue to relay the importance of cannabis legalization at the federal level. Please stay tuned for more updates from our Government Relations team. 

 

Member Blog: Eradicating Pesticide Use in the Cannabis Industry – Without Sacrificing Crop Quality 

By Carlos Perea, Co-founder and CEO of Terra Vera

One of the direst, yet infrequently discussed, issues in the cannabis industry is the lack of federal guidelines regulating pesticide use. Despite the adult-use cannabis market consistently expanding on a state-by-state basis, as long as the crop remains illegal on the federal level, much-needed national oversight will continue to be limited. 

The more states that legalize under a national prohibition, the more varying and convoluted state-by-state crop management regulations may become. Meanwhile, without standards firmly set in stone across the country, some cultivators have turned to hazardous chemicals to control pathogens and preserve their crop yields. Such cultivation solutions can compromise the safety of staff, the environment and, of course, the consumers. 

Health Hazards of Pesticides in Cannabis

Even when shopping at a licensed adult-use or medical dispensary, consumers today still cannot be 100 percent confident that the cannabis they are purchasing is completely safe and free of contaminants and unwanted components, such as pesticides, harmful microbials, heavy metals, and solvents. Emerging research from Colorado State University shows that contaminants in cannabis, including pesticides, “are imminent threats that directly impact public health and wellness, particularly to the immunocompromised and pediatric patients who take cannabis products as a treatment for numerous human disorders including cancer patients and those suffering from epileptic seizures.” With many consumers turning to cannabis for its health benefits, and because it’s a natural alternative to heavily processed pharmaceuticals, the cultivation process should honor cannabis’ medical use by being as safe and accountable as possible.

The pesticide issue is compounded when we think about how cannabis is often consumed: through inhalation. Additional research has shown that nearly 70 percent of the pesticides used in cultivation remain in the cannabis flower that consumers smoke. 

Even when these same pesticides are permitted in other types of American agricultural industries, this is a global anomaly. More than 25 percent of pesticides used in the U.S. are banned in other countries.

Moving Towards a Pesticide-Free Flower  

So how do we work towards a pesticide-free cannabis industry? Licensed businesses, regulators, and consumers need to band together to set standards and guidelines for pesticide use across each legal state, and eventually on a federal level. 

In 2020, Arizona took a page out of Oregon’s playbook by establishing a regulatory agency and adopting Oregon’s standards for limiting pesticide use in cannabis, setting a prime example for inter-state collaboration and accountability. Measures also need to be taken to lower the cost of testing cannabis products for pesticides and contaminants. And, of course, we need to embrace more sustainability and environmentally-minded education, and emerging technologies.

While testing does not necessarily prevent contaminants during the grow process, frequent, reliable, and standardized testing can help ensure contaminated products don’t make it to market. Unfortunately, testing requirements continue to differ by state, with some being more lenient than others. For instance, certain states only test for certain types of microbials, while others allow companies and cultivators to cherry-pick samples. This makes it easier for companies’ products to meet compliance, however, doesn’t ensure that the final products available for purchase will be safe for the consumer. Looking ahead towards inevitable federal legalization, testing requirements need to be uniform across all legal markets.

However, cultivators shouldn’t wait for federal oversight to hold themselves to the highest possible standards. There are inexpensive testing procedures currently available that cultivators can adopt before sending their cannabis products to the lab, which can help to better ensure what they are doing is working and catch a problem before it starts. 

There are also non-toxic crop management technologies available now, and in addition to seeking out vendors offering innovation-driven solutions to replace conventional pesticides, cannabis companies and their cultivators can embrace simple, preventative measures to minimize outbreaks of bio-contaminants. This includes controlling humidity at the grow site, plant spacing, adequate air circulation, and implementing a strict chain of custody throughout the supply chain. Successful prevention mitigates the temptation to turn to potentially toxic pesticides to eradicate contaminants. 

While federal legalization looms, it likely won’t happen this year. Therefore, state regulatory agencies should continue to be prepared with comprehensive outreach plans to communicate their pesticide and testing regulations to cultivators and their companies, ensuring that industry participants are fully informed. Planning and communication also sets the stage for the industry to have tried and true standards already in place by the time federal legalization does come to fruition. 

The good news is the cannabis industry has the potential to lead a paradigm shift towards a safer agricultural sector as a whole. In years past, the amount of information shared between cannabis and other agricultural industries was limited, cutting cannabis cultivators off from reliable best practices for cultivation and crop management. However, this is changing quickly. Cannabis is also pushing the envelope towards more sustainable practices, with more cultivation sites moving indoors and into greenhouses, complete with LED lighting and additional sustainable practices. Cannabis cultivators are becoming more cutting-edge and setting an example for the broader agricultural community. The industry should continue these forward-thinking approaches by embracing pesticide-free solutions on a broad, scalable level.


Carlos Perea is the CEO and Co-founder of Terra Vera, an agricultural technology company offering innovative solutions to replace conventional pesticides and increase product safety and consumer confidence within the agriculture industry. Carlos is a serial entrepreneur with a focus on the intersection of technology and social impact. Prior to founding Terra Vera, he formed MIOX Corporation, a technology company that treats water in a variety of applications and is distributed in over 30 countries. He is active as an advisor and board member with several early stage companies and social enterprises including YPO, where is he an active board member. Carlos has an MBA from the Stanford Graduate School of Business, and an BS in Mechanical Engineering from the University of New Mexico.

 

Committee Blog: Future-Proofing Cannabis Manufacturing Processes – Part 2

by NCIA’s Cannabis Manufacturing Committee

Despite prohibition, the cannabis industry is not behind the curve of sustainability progress. While other industries were inventing modern Cloud-based quality control/distribution systems and making stuff out of plastic, cannabis producers were maximizing yields per watt and creating stronger concentrates in attempts to get the most out of their value streams while staying under the radar. Now all industries are racing towards a more sustainable future and the cannabis industry has the opportunity to show that it can be a good example, even a leader in sustainability. Regardless if it is in preparation for competition or regulation, now is the time to start building more sustainable, energy-efficient, and overall lower footprint businesses.

As the manufacturing branch of the cannabis industry paves its way into the future, the processes involved need to be made environmentally sustainable and best practices need to be shared and standardized to ensure product safety and industry longevity. Collecting and sharing data from manufacturing facilities is the ideal way to achieve these sector goals.

Environmental sustainability is a multi-discipline effort. Experts in engineering, emissions, air quality, worker health and legal matters should be relied on for educating and guiding businesses into a more sustainable future.

The Data Vacuum Is Holding Back Environmental Sustainability Advancements

While cultivation is one of the main focuses of the cannabis sustainability effort, manufacturing procedures are also prime targets for sustainable advancements. Due to the nature of the organic chemical processes used to produce consumables, some of the materials and practices could have a negative impact on both worker and environmental health if not addressed and handled properly. As a best management practice, regulated cannabis manufacturers typically operate closed-loop systems, which greatly reduce certain dangers, but this can require other more energy-intensive systems. As these relatively new processing techniques are being pioneered, we need more data to understand how they can be made more efficient and sustainable. For various reasons — such as intellectual property concerns — advancements in sustainable practices are often not shared and therefore not visible to potentially become a standard process that ensures product and consumer safety.

Cannabis Science Outpacing Regulations

The scientific improvements for manufacturing cannabis into consumer products in high demand have outpaced regulations. From process design and equipment to processing material sourcing, the manufacturing branch of the cannabis industry has much to offer the future of sustainable cannabis products. In many jurisdictions today, regulators have hastily opted for vertical, prescriptive regulations which have left many manufacturing operations without the leeway required to innovate more sustainable process strategies. Even more businesses with the legal leeway simply do not want to push the envelope in today’s regulatory climate. More forward-thinking, regulation-savvy equipment manufacturers have begun focusing on lower energy-use in their newer products as a selling point. The industry as a whole could be making progress much faster if regulators focused on performance standards for manufacturing facilities.

Strategies inspired by building and process heat recovery offer dozens of basic possibilities when it comes to implementation in a cannabis manufacturing facility. Using the energy released during solvent condensation for solvent evaporation is a prime example. Connecting liquid-cooled equipment with the building’s central plant system is another. These are big ideas that could be implemented in different ways with different efficiencies. Intelligent use of insulation, exhaust recirculation, odor mitigation, ventilation minimization, demand-control ventilation for providing makeup air, etc. could also make significant differences. Data collected from actual operating facilities experimenting with different strategies will be the best guide going forward in determining what the best energy saving strategies are.

Cannabis Extraction Processes and Air Quality

In an effort to prevent unnecessary Volatile Organic Compounds (VOC) emissions it is important to maintain proper solvent transfer and storage, perform extraction equipment inspections, and ensure a maintained inventory and handling of solvents on site are a part of a facility’s standard operating procedures. Best practice for extraction and post-processing dictates the use of butane, propane, CO2, ethanol, isopropanol, acetone, heptane, and pentane as solvents to encourage safe consumer products.

Carbon filtration is also the best management practice for controlling cannabis terpenes (VOCs) and odor emissions. It is important to install properly engineered molecular filtration systems (aka carbon scrubbers) that are sized appropriately for a facility’s ‘emission load’ and don’t exceed the maximum cfm rating for air circulation through the filter. To prevent VOC and odor breakthrough, it is imperative to inspect and conduct regular maintenance of HVAC systems and carbon filters. A standardized method for measuring the lifespan of carbon is by using a Butane Life Test, which equips manufacturers with the data to know how to manage their carbon replacement schedule effectively, minimizing unnecessary carbon waste. Additionally, processors can conduct air sampling to detect and measure VOC and odor levels in their facilities and the data can be used to validate the impact of control technologies further protecting worker and environmental health.

Proper VOC and cannabis odor control from manufacturing processes helps reduce community odor complaints and improve neighborhood relations. It also improves public and environmental health by reducing local ozone concentrations. Proper emissions control when running cannabis manufacturing processes and handling chemicals helps to shift the industry at large toward sustainable and environmentally conscious business practices.

Preparing Your Business for the Next Stage

Cannabis manufacturers are seeing big changes on the horizon. Increased legalization brings increased competition and inevitable M&A activity. Whether a business aspires to compete on the world stage or to be acquired in one of the coming green waves, there are actions that can be taken today to help cannabis manufacturers maximize their value to both customers and potential acquirers.

One of the most important assets a company can have — both to compete effectively and to attract purchasers — is intellectual property. Intellectual property, or IP for short, is the term for an intangible asset that has been afforded certain legal protections to solidify the asset into a commodity that can be bought, sold, and licensed. IP can have a negative connotation in some circles, mostly resulting from misconceptions in the law but also rooted in IP abuses by unscrupulous “trolls.” In reality, IP is an important tool to help companies protect their hard work and, when properly deployed, intellectual property can increase transparency into cannabis manufacturing processes and open new avenues of scientific advancement.

Intellectual property broadly covers a number of different types of rights. Patents protect new inventions like processes, machines, compositions of matter, ornamental designs, and plant genetics. Patents can grant relatively broad rights to these ideas, but with substantial additional costs and scrutiny.

Similarly, copyright can protect creative works, like writings, drawings, and sculptures. But many do not recognize that copyright can also protect compilations of data that have been creatively selected or arranged. Data and algorithm copyrights are relatively nascent, but they promise to play a large role in the intellectual property landscape of the future cannabis industry.

Another sect of intellectual property, trademarks, is all about protecting a brand: the names, logos, slogans, and overall look that tells customers that a good or service is from a particular company. Federal trademark registration is unavailable for federally illegal goods and services, but that does not mean that federal trademark protection is unavailable to cannabis brands. Many companies are using the zone-of-expansion doctrine baked into federal trademark law to set up registrations on related legal products (smoking/vaping devices, clothing, and even CBD edibles) that can be expanded to cover THC products when federally legal.

The nuances and requirements of these property rights — along with other IP rights like trade secrets and trade dress — are highly fact-specific, so involve a good IP attorney to guide your strategy from the start.

Towards A More Sustainable Future

Now is the time to start building more sustainable, energy-efficient, and overall lower carbon footprint businesses and the emerging legal cannabis industry is well-positioned to be the leader. If manufacturers are incentivized to safely share processing data directly or through emerging data collection and tracking platforms, the industry will make major advancements towards more environmentally sustainable practices. Environmental impact areas, such as air quality, energy, water, soil waste, and community all need to be considered by the manufacturing arm of the cannabis industry. Regulators can help push the industry forward by reducing negative impacts in these areas though focusing on performance standards for manufacturing facilities and their processes. Lastly, understanding that IP, including trademarks, can in fact increase transparency into cannabis manufacturing processes and open new avenues of scientific advancement will help position operators for M&A activity coupled with proper legal representation. These factors work together to protect the environment and communities, as well as future-proof manufacturing operations setting up the rest of the cannabis industry for longevity and federal legalization.

 

Committee Blog: An Introduction to HVACD for Indoor Plant Environments – Why We Should Include a “D” for Dehumidification

by NCIA’s Facilities Design Committee

Transpiration and VPD are two fundamental components of plant vitality, and heating, ventilation, and air conditioning (HVAC) systems are one of the most critical considerations for an indoor cannabis cultivator. HVAC alone doesn’t tell the full story of environmental control for cultivation facilities. The term HVAC is typically used to refer to the cooling, heating, or ventilation systems in a building, and while it technically includes dehumidification in most forms, it does not directly highlight the significant dehumidification requirements necessary to maintain optimum plant health inside indoor cultivation spaces. In order to emphasize the importance of dehumidification in the mechanical equipment sizing and selection process, the controlled environment horticulture industry would benefit from moving toward the concept of heating, ventilation, air conditioning, and dehumidification (HVACD) as the common term for these systems.

“HVAC” Challenges

The term HVAC is typically used to reference conventional air conditioning and heating systems designed for temperature control to provide a comfortable environment for people. This is clearly demonstrated in the very design of these systems – for example, sensible heat ratios of commercial HVAC equipment are pretty high in order to meet the loads generated by people, lighting, and miscellaneous equipment found in offices. Plants grown in enclosed spaces have different needs than people do. Of particular interest is the large amount of dehumidification that needs to be performed on a daily basis to maintain an optimum vapor pressure deficit (VPD). 

When you apply a standard HVAC system to indoor horticulture, the instant the sensible load is removed from the space (i.e. the lights turn off), the air conditioning unit reaches the lower deadband of the specified temperature set point and shuts off. In the process of bringing the temperature down, we have raised the relative humidity to the detriment of the plants. Further, despite being mostly sensible cooling machines, conventional HVAC systems provide most of the dehumidification capacity in an indoor cultivation space, and that capacity is now inactive during the dark period.

Traditionally, growers would install stand-alone, pocket dehumidifiers to handle the moisture removal requirements that the air conditioning units cannot meet. There are a handful of challenges with this approach that can negatively impact plant health when scaling into industrial-scale operations. Most standalone dehumidifiers dry the air with mechanical refrigeration and in the process add hot air into the room, which then needs to be cooled by additional cooling equipment to maintain temperature. Another challenge is the numerous condensate drains throughout the growing space that are high risk for clogging and quickly leading to pest and pathogen proliferation which are potential GMP and GFSI compliance risks. The separate cooling and dehumidification systems typically do not have communication and control amongst them and ultimately “fight” against each other for temperature and relative humidity setpoints. Additional pest vectors can come into play when the HVAC contractor enters the cultivation or curing space to make repairs on mechanical equipment that is mounted above plants. Above all, maintaining cleanliness in the space can be challenging with many mechanical units perched above a dynamic plant canopy.

Dehumidification, or removing humidity from a room that is filled with water vapor as a result of plant transpiration, is arguably the biggest environmental challenge in controlled environment horticulture. When you size an HVAC system for human comfort or server rooms, the primary focus is temperature control (or sensible load). When selecting and sizing an HVACD system for plants to thrive, it’s all about the latent load, plant transpiration and VPD. Excess humidity is roughly twice as difficult to remove as excess heat from lights, so an effective system needs to be designed as a dehumidifier first and an air conditioner second. Integrated dehumidification needs to be at the beginning of every HVAC conversation, and a primary focus of every system.

The benefits of including dehumidification as a critical component

To maximize plant vitality, two fundamental components to understand are transpiration and VPD. Put simply, VPD is the humidity difference (or deficit) between the inside of a leaf and the environmental conditions surrounding that leaf. It is this humidity difference that draws water from the roots of a plant, through the stem and out of the leaf tissue, otherwise known as transpiration. This process is critical to photosynthesis and optimizing plant production, and it’s all directly related to the levels of humidity in a given room. As humidity is drawn out of the leaf, dehumidification must be used to remove the humidity from the environment and maintain appropriate VPD levels. Without dehumidification, humidity builds inside the room, plant growth and plant health are negatively impacted, and conditions become ideal for pests and pathogens. 

Properly-designed dehumidification creates consistent and precise environmental conditions across the plant canopy, mitigating risk against issues like powdery mildew and botrytis. Well-executed dehumidification allows growers to control their VPD and drive plant health. At the end of the day, a stable climate sets a strong foundation of cultural control for a facility to maximize quality biomass while limiting crop loss associated with pest and pathogen issues.

Why does this all matter? Because properly sized and commissioned HVACD systems empower the cultivator to maximize production efficiency, reduce the risk of production downtime, and promote growth. 

HVACD will change industry standards and best practices

Collectively updating the industry’s knowledge and understanding surrounding dehumidification highlights the true challenges of growing plants indoors, and the need for purpose-built equipment and controls that optimize the environment based on every stage of the plant life cycle. Plants are living organisms that have different needs at different times, and mechanical equipment should be designed and manufactured around this concept. 

We can draw a comparison to this concept by looking at indoor horticulture lighting systems. When the industry began to develop new terms like Photosynthetic Photon Flux Density (PPFD), the phrase “PPFD for plants because lumens are for humans” came to be. Meaning that if we are measuring lumens, we are prioritizing people in the space as opposed to the plants. This same mindset should apply to all mechanical equipment involved in a cultivation facility.

Now that more scientific studies and data are becoming available on topics like plant transpiration, dehumidification, and VPD as a driving force in plant vitality, it is clear that there is a better way to think about climate control when applied to controlled environment horticulture. HVAC focuses on the sensible (or temperature) cooling that keeps people happy indoors, while HVACD focuses on the latent cooling (or moisture removal) that keeps plants happy indoors. Both are critical concepts that must be considered during the design of an indoor cannabis cultivation facility to ensure both people and plants are happy indoors.

Critical Dehumidification Requirements for other Rooms in an Integrated Cannabis Grow/Manufacturing Facility

Extending the discussion downstream of horticulture to other areas of the facility, humidity control plays a critical role in profitability, food safety, asset utilization, and operating efficiency. 

Humidity control in the Curing Room and the awareness of any air exchange with building areas adjacent to Cure is important. More broadly, any room-to-room pressure differentials can transfer air with different humidity levels. 

Food safety is enhanced by considering humidity control, usually dehumidification. Any cold surfaces below the dew point of the room can cause condensation, which can lead to microbiological growth. Room environments controlled so that the water activity (aW) of the cannabis is maintained between 0.55 and 0.65, will also help limit mold growth and the associated mycotoxins. 

In many cases, there are special dehumidification requirements, such as in an equipment drying room after warewashing, or to dry out a room and return it to operation after washing and sanitizing. HVACD designers need to coordinate closely with process or manufacturing specialists to be aware of any process exhausts, combustion air requirements, or high outside air exchanges. That additional outside air and the humidity carried in with it, must be considered. 

And for Marijuana Infused Products (MIPs), specifically gummies and chocolates, the primary food safety control is low water activity, rather than a robust kill step, so precise humidity control is again a critical issue.

Even further, packaging machinery operates more efficiently if the flow characteristics of the cannabis are a key operating parameter. Moist cannabis will adhere to machinery and create other problems that slow run rates and cause downtime. This problem can occur with any weight fillers or the pre-roll machines. 

All told, moisture can be both your friend and foe in a wide variety of cannabis endeavors. The ability to maintain the appropriate relative humidity, in addition to temperature, in each different type of room in a cannabis production facility is a key factor in a successful operation.


The Facilities Design Committee (FDC) focuses on providing NCIA members and regulators a framework and information about facilities design options through which legal producers can plan for GMP level production as the market transitions from a state to a federally regulated industry.

 

 

Member Blog: 7 Places You’ll Find Mold In Most Cannabis Grows

by Bernie Lorenz, PhD, Chief Science Officer for ProKure Solutions

Want Clean Cannabis? Identify Mold Pain Points.

In the battle against mold, there are three critically important questions. 

  1. Where is the mold coming from?
  2. How did mold get there?
  3. How did the mold travel to where it grew?

Answering these questions gives growers the power to mitigate mold, and the ability to pass total yeast and mold tests. 

Know Thy Enemy

It helps to first understand what you’re up against. Understand first and foremost that mold is a living thing that starts and ends somewhere. Its spores travel to reproduce, just like a plant.

And it needs the right environment to flourish. Moisture and temperature have the biggest impact. But hosts that help it travel are also critical.

Process Over Point

Most indoor and greenhouse grows have dozens, if not hundreds of people working across the organization. From back office to packaging to production – you have people and places that impact the air quality and can act as hosts, ultimately, impacting spore counts.

These hundreds of interchangeable parts make it difficult to figure out the source of mold, so it’s critical to see it as a process.

Break your facility into seven core parts of a process, and start digging. Not literally, of course, but as a scientist would. Examine what might cause the issues by looking at variables and constants.

Look at these seven locations:

  1. Mother Plants
  2. Cuttings from Mother Plants (clones, propagation)
  3. Vegetative Growth
  4. Flower Growth
  5. Trim Rooms
    1. Immediate postharvest
    2. Sometimes after dry and cure
  6. Dry Rooms
  7. Cure Space

Follow the plant through those places and test regularly to see where moisture or cross-contamination may be occurring. 

This is a painstaking process, make no mistake. Mold develops over time, so you’ll need to spend weeks or months tracking the lifecycle of the plant.

You’ve Solved The Riddle, Now Solve The Problem

Of course, once you find the sources, mitigation through a solid Integrated Pest Management (IPM) program is critical. There are many methods for that, from cleaning and disinfection to HEPA filters, and more. You’re not in this fight alone, either. You can call solutions providers like ProKure for help or find a Certified Industrial Hygienist in your area.

Whatever you choose to mitigate with, just remember to start with the answers to those core questions. Any program will be much more effective with those in mind.


Bernie Lorenz, PhD, is Chief Science Officer for ProKure Solutions, where he applies an advanced chemistry background and passion for sustainability to make ProKure products approachable to cultivation professionals. As one of the industry’s most seasoned experts on ClO₂, Dr. Lorenz recently led the effort as technical contact for a new ASTM International standard aimed at establishing cleaning and disinfecting protocols for indoor and greenhouse cannabis cultivation facilities. Dr. Lorenz earned both his PhD and Masters in Inorganic Chemistry from New Mexico State University. 

Member Blog: California Cultivators – Weigh In On Energy Efficiency Standards Now!

By Joe Sullivan, Technical Director at Cultivation Energy Optimization

The California Statewide Utility Codes and Standards Program is considering the addition of energy efficiency standards to its Title 24, Part 6 Building Code for Controlled Environment Horticulture (CEH) facilities.

Currently, there are no existing energy efficiency standards in Title 24, Part 6 for CEH facilities and the Statewide Codes and Standards Enhancement (CASE) Team is actively working to help code-setting bodies develop building energy codes that not only save electricity but are practical and cost-effective.

Right now, the CEH CASE Team is in the process of gathering data on the types of equipment that are commonly used in cultivation facilities.

California growers, the Statewide CASE Team needs your help!

Please take a few minutes to tell them what equipment you currently use by participating in a short 10-minute phone interview. Involvement from stakeholders is a critical part of the energy codes and standards development process. It is important to get direct input from California growers so proposed codes can achieve significant statewide energy savings without placing an unreasonable burden on you or the industry. This is the first time the Statewide CASE Team is analyzing CEH facilities and we would like California growers to be a part of this historic and monumental process.

Any information you share will be considered confidential and will not be shared outside the Statewide CASE Team. They understand privacy is important to growers and will not publish or share your name for any reason. 

If you would like to participate, please email joe@CultivateEO.com with the subject line ‘CA Grower Survey’ and include your first name, phone number and the best time to receive a call in the body of the email.

This program is funded, in part, by California utility customers and administered by Pacific Gas and Electric Company, Southern California Edison, Southern California Gas Company, San Diego Gas & Electric Company, Los Angeles Department of Water and, and Sacramento Municipal Utility District Power under the auspices of the California Public Utilities Commission. The Statewide CASE Team will provide the Energy Commission with the technical and cost-effectiveness information required to make informed judgments on proposed standards for promising energy efficiency design practices and technologies in controlled environment horticulture facilities. For more information about this process, visit: www.title24stakeholders.com.

Thank you for partnering with us to help build an efficient and sustainable horticulture industry in California!


Joe Sullivan is the technical director and co-founder of Cultivate Energy Optimization, an energy management firm that works exclusively with utilities and governments to design and implement energy management programs specifically for the controlled environment agriculture industry. CultivateEO currently administers programs for utilities across the U.S. and Canada, including the country’s first state sponsored cannabis energy management program in CO. Joe serves as the company’s national expert on indoor ag. and energy management technologies working closely with over 100 cultivators to develop and implement energy management strategies. Prior to forming CultivateEO, Joe worked for the USDA supporting their research on global climate change and its effect on field crops. Joe is a Certified Energy Auditor through the Association of Energy Engineers and hold a bachelor’s degree from the University of Illinois Urbana-Champaign in Natural Resource and Environmental Sciences.

Member Blog: The Most Important Things to Consider When Purchasing Bulk or Wholesale Hemp Derived Phytocannabinoids

by Ryan Lewis, Entourage Nutritional Distributors

Folium Biosciences hemp farms are some of the largest in the USA. Location: La Junta, CO.
Folium Biosciences hemp farms are some of the largest in the USA. Location: La Junta, CO.

Hemp, more than any other plant on Earth, is unique in its ability to literally suck the heavy metals and toxic waste out of the environment. Hemp is even being used in phytoremediation at Chernobyl in Russia. What does this mean to consumers of hemp products? Knowing as much information as possible about your hemp is crucial to understanding its legality, limitations, and effectiveness.

Hemp from China, for example, contains some of the most dangerous heavy metals in the world. According to a 2011 study of Chinese hemp strains, the plant was able to absorb dangerously high levels of the heavy metal cadmium without detriment to the plant itself. Cadmium (Cd) is an extremely toxic industrial and environmental pollutant classified as a human carcinogen. 

See the study here:
Cadmium Tolerance and Bioaccumulation of 18 Hemp Accessions

The 5 most important things to consider when purchasing bulk or wholesale phytocannabinoid rich hemp oil products high in cannabidiol (CBD) are:

  1. Was the hemp grown in accordance with section 7606 of the US Farm Bill? The head of the DEA recently stated that section 7606 Farm Bill compliant hemp is safe from the DEA.***
  2. What is the heavy metals and residual solvent content of the hemp oil? Residual solvents and heavy metals can negatively influence the health benefits of the oil.
  3. Besides CBD, what other cannabinoids and terpenoids are present in the extract? A full spectrum profile of synergistic compounds has been shown to be more effective than an extract with only cannabidiol.
  4. Was the hemp grown using clones or seeds? Clones provide a much more consistent end product. With seeds, you never truly know what is going to grow.
  5. Can your supplier provide you with a consistent and reliable product? What good is the product if you cannot get it the exact same way every time and when you need it?

Considering the fact that many people are relying on CBD for their health and wellness, ensuring that your hemp oil is the highest quality is vital to its effectiveness. Prior to purchasing bulk or wholesale CBD oil, make sure you know where your hemp was grown and processed. Ask yourself this question before purchasing imported Chinese or European hemp oil: Would you feed your child milk imported from cows located in China or Eastern Europe? Didn’t think so.

***EDITOR’S NOTE: Federal policy toward hemp-derived CBD products with respect to Section 7606 is currently subject to substantial debate. The USDA’s website states, “[S]ection 7606 did not alter the approval process for new drug applications or any other authorities of the FDA, nor does it alter the requirements of the Controlled Substances Act that apply to the manufacture, distribution, and dispensing of drug products containing controlled substances.”


ryanlewisRyan Lewis is the VP and Head of Global Sales for Folium Biosciences of Colorado Springs, CO. Folium Biosciences is the largest vertically integrated producer, manufacturer, and distributor of hemp derived phytocannabinoids in the U.S. Folium, along with their exclusive distributor, Entourage Nutritional Distributors, supplies section 7606 US Farm bill compliant hemp derived phytocannabinoids to some of the leading brands and companies in the world. Ryan graduated with high honors from Brown University and attended Pepperdine University Law School and Business School.

Guest Post: Supplementing Greenhouse Lighting in Winter Months

By Shelly Peterson, Vice President, urban-gro

urbangro3As the seasons change, so does the amount of light that enters into your greenhouse. Summer months may offer an abundance of natural light; however, the longer nights of winter require supplemental lighting for growers to achieve the best yield possible from their crop. Some greenhouse facilities shut down during the winter months due to natural lighting restraints, but there are easy solutions that can mean more harvests and bigger profits for growers. The first step is to target a daily light interval (DLI) number for each facility and design the supplemental light accordingly. This ensures optimal light intensity and uniformity in the facility year-round.  

On Site

Recently, Colorado marijuana cultivators have begun to move into more efficient greenhouse structures. With proper planning and execution, these growers are experiencing as much or more success as indoor gardeners. It does take proper planning to get through the short days of the winter, and owners are turning towards horticulture companies to help them succeed. Based on the sun’s position in the geographical region, high tech control systems with DLI sensors can be installed to measure when the natural light falls below a certain level and the supplemental light is needed to optimize growth.

urbangrogreenhouseFor example, at urban-gro, once we know the facility’s DLI and obstructions within the greenhouse structure, we begin the planning process and consider technical factors for the layout of the lighting system. Ensuring optimal lighting layout for the grow facility is the top priority. Incorporating lights into the structure so they create minimal shadowing is critical; this ensures that the crops are getting the optimal amount of natural light when the sun is shining. 

Today, most grow facilities use 1,000-watt DE HPS light fixture, which is the most efficient light source on the market for the plant canopy. Once the lighting system is installed, it is essential that the correct intensity is aligned with the crops’ growth stage, which ranges from veg to bloom. We schedule a gradual increase of light intensity so yield is maximized and never harmed.

End Result

With supplemental lighting, cultivators can guarantee the correct amount of lighting and environmental controls for the winter months to ensure yields and profits. 


Shelly Peterson serves as Vice President of Sales for urban-gro for the last three years. Shelly manages the company’s sales force located across the country. Her passion for eco-friendly solutions and creating a sustainable environment ensures that the commercial cultivator is provided with a lighting plan that utilizes the least amount of equipment. Further, her skills learned in the commercial lighting industry have enabled her to work with regional electrical providers to maximize available utility rebates for urban-gro’s customers. Urban-gro is a Sustaining level member of NCIA since November 2014. 

 

GUEST POST: The Real Environmental Impact – Sustainable Practices For Cannabis Companies

By Alex Cooley, Solstice

Growing greener has been making the news. Or rather, the cannabis industry’s habit of scaling up largely unsustainable grow methods in big production facilities is on the national radar.

Alex Cooley, Solstice
Alex Cooley, owner at Solstice

One widely circulated quote equates the carbon footprint of producing a gram of hydroponically grown cannabis to that of “driving seventeen miles in a Honda Civic.” And while that beats seventeen miles in a Hummer, it’s a number we have the power to greatly reduce. Part of what excites me about this freshly-legal industry is that we have the opportunity to shape it in a way that big business has thus far failed to do by not putting a higher profit margin above the health of the planet.

In August I was asked to speak about this very topic in Las Vegas at the 2nd annual NCIA Southwest CannaBusiness Symposium. It gave me a chance to reflect on something I’m passionate about – the real environmental impact of what we do, what isn’t working, and how we can create positive change for this and future generations of growers and patients.

Get Under The Sun

  • It takes vast resources to power a warehouse grow that relies on High Intensity Discharge (HID) or High Pressure Sodium (HPS) lights. Automated light deprivation greenhouses can produce cannabis of equal or greater value as that produced indoors at half the cost and one quarter the environmental impact.
  • Cannabis used for extracts can all be grown outdoors. Provided you live in a climate that allows for outdoor cultivation, sun-grown cannabis is excellent starting material for extractions. The finished form will be far from the flower, so why not take advantage of one of our most powerful (and free!) resources?
solsticecooley_warehouse
Solstice growhouse

Keep It Lean Indoors

I know that not every method of cultivation can rely exclusively on solar power. However, in indoor grows, we can focus on efficiency.

  • For most indoor grows, Heating, Ventilation, and Air Conditioning (HVAC) systems are a huge resource suck. I’ve discovered that the best method is to utilize a centralized Variable Air Volume (VAV) system.
  • Make sure the envelope is sealed. Keep your buildings well insulated to prevent energy leaks. Without a higher energy code and tighter insulation, many industrial-scale grows hemorrhage energy and resources.

Lay Down the Law

Frankly, some of the cities and states currently passing laws to regulate cannabis cultivation have the least enviable power infrastructures. Las Vegas, which relies heavily on coal and natural gas, is ahead of the curve in terms of legislation, whereas clean n’ green hydro-electrically-powered Washington State has yet to create stringent and sustainable regulations. Legislators have been more concerned with issues of security and diversion than environmental impact. The “pot is dangerous” paradigm needs to shift to “unregulated grow practices are dangerous for the planet.”

Nice Package…

We can effectively undo all the good of a smart grow with wasteful packaging.

Solstice glass jars
Glass jars with cork & wood tops
  • Think cradle-to-grave for your packaging: Where did it come from? What is it made of? Where will it go after it has been used? That plastic container might be a good fix in a pinch, but think about the impact it has as you scale.
  • We’ve got to reduce plastics and push glass, wood, or paper wherever possible. Almost every gram of cannabis that goes out into the world from a processing facility is wrapped in plastic – and we all know that it can’t be properly disposed of or recycled. However, the plastic used for business-to-business bulk orders could be saved and reused.
  • At Solstice we’ve been designing glass containers with cork and wood tops for our flower. They can be collected, reused, or returned for a deposit. Our pre-rolls are made from 60% post-consumer recycled paper and printed with vegetable ink. Every little bit counts.

Have Multiple Bottom Lines

The “Triple P bottom line: People, Planet, Profits” is the newest, sexiest take on commerce with a conscience. The Triple P works primarily because it’s a flexible paradigm; it gives business owners a framework in which they can question and evaluate the human and environmental cost of every move they make.

Across industries, innovative leaders are finding more generous, humane, and ultimately more sustainable ways to do big business. Some of these are easy and inexpensive: utilizing proper waste disposal, bike-to-work incentive programs (a Solstice favorite), Plant-A-Tree days, or making sure your pesticide program is safe for employees and the planet.

Sometimes however, there is an unavoidable immediate cost to doing what’s right. Google uses a fancy fuel cell with 2-3 bloom boxes for their building infrastructure. They’re getting loads of good PR for this – in part because very few people can afford to use them.

But it is my belief that the more you grow, the more capital you’re bringing in, the more you have to give to impeccable resource management.

Everyone knows that cannabis makes money; we’re looking at a multi-billion dollar industry over the next 5 years. Hobby systems and garage standards are not scalable for the cannabis boom. Whatever the laws might ‘allow’ us to do, we have to stay ahead of the curve and firmly within our own conscience.

Alex Cooley is the owner of Solstice, a member of NCIA since April 2013. Solstice founded their Seattle-based flagship in 2011 as the first-ever permitted cannabis production facility in Washington State. Solstice has taken an environmentally conscious approach to high quality cannabis production and has cultivated over 350 different types of cannabis, creating one of the most robust genetic libraries anywhere in the world.

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