Part One – Air, Water, California Proposition 65, and Cannabis

CANNANNEW REPORT

Cannabis Client Alert: Three Part Series on Environmental, Health, Safety, and Sustainability Regulation of the Cannabis Industry WRITTEN BY: Foley & Lardner LLP Nicholas Johnson Mia Lombardi Gary Rovner Peter Tomasi Cannabis growing and processing operations face increasing regulatory pressure to assess and reduce their environmental impacts – especially in the areas of water quality, air emissions, energy use and sustainability, pesticide use, and consumer warnings. Adding to the complexity, this pressure often comes simultaneously from state, regional, and/or local authorities that impose overlapping environmental requirements, which are not consistent from jurisdiction to jurisdiction. Navigating these issues without assistance from environmental counsel could result in costly project delays, or potentially even fines or governmental orders to cease operations. In part one of this three-part series, we explore environmental regulatory requirements related to air permitting, wastewater, and California’s Proposition 65 labeling requirements. Air Permitting What operations or equipment may require a permit? Air permitting requirements may apply to several aspects of cannabis industry operations. For example, emission of terpenes – a reactive organic compound – have the potential to occur during processing or manufacturing operations. Further, the use of certain solvents and cleaning materials in processing operations may generate regulated volatile organic compounds (VOCs). Operations with propane, gas- or diesel-powered ancillary equipment – such as emergency generators, boilers, or space or water heaters – may need to obtain permits for this equipment as well. How do I determine whether an air permit is required? Depending on the state where the facility is located, the first step in an air permitting analysis is calculating the facility’s Maximum Theoretical Emissions (MTE) and/or Potential to Emit (PTE) air pollutants. Because this calculation generally determines the type of air permit (and therefore the level of regulatory oversight) an operation may need, and because there are…

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Source : Part One – Air, Water, California Proposition 65, and Cannabis

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