{"id":23415,"date":"2021-01-22T17:59:24","date_gmt":"2021-01-22T17:59:24","guid":{"rendered":"https:\/\/www.simplifya.com\/?p=23415"},"modified":"2022-08-24T23:20:24","modified_gmt":"2022-08-25T05:20:24","slug":"cannabis-compliance-sustainability-a-complicated-relationship","status":"publish","type":"post","link":"https:\/\/www.simplifya.com\/cannabis-compliance-sustainability-a-complicated-relationship\/","title":{"rendered":"Cannabis Compliance & Sustainability: A Complicated Relationship"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]There\u2019s no question that compliant, sustainable cannabis operations are the goal of the cannabis industry. Regardless of whether you\u2019re a single location retailer or a multi-state operator, the task of developing and successfully operating a compliant cannabis business that is also sustainability-minded is not a challenge for the weak of heart…or wallet.\u00a0<\/span><\/p>\n

The relationship between cannabis compliance and cannabis sustainability is a double-edged sword. In the interest of protecting consumers from this \u201cdangerous\u201d plant, regulatory bodies have turned cultivating something that literally grows freely like a weed in the sun into an industry carving an incredible environmental impact. Because so few states allow legal outdoor grows, cultivators are weighed down by compliance mandates resulting in significant water usage and massive electricity consumption.\u00a0<\/span><\/p>\n

Regulations around single-use, child-proof packaging, combined with mandatory dispensary exit bags results in literal <\/span>tons of packaging<\/span><\/a> waste, much of which is non-recyclable. In some cases, requirements around cannabis waste disposal demand that extractors<\/span> make their cannabis waste and extraction byproducts “unusable” by mixing them with products like cat litter or bleach so they are impossible to consume…which ultimately results in <\/span>doubling the amount<\/span><\/a> of <\/span>non-compostable waste<\/span><\/a> headed to landfills.<\/span><\/p>\n

And, it\u2019s not just the rules around cultivation, packaging or waste disposal that make it hard for operators to focus on <\/span>sustainability<\/span><\/a>. The cost of operating a business in a highly-regulated industry, weighed down even more by the costs of 280-E and the thousands of rules covering everything from advertising to signage, security, labeling and more, leave little time, budget or operational bandwidth to dedicate to implementing more sustainable operations.\u00a0<\/span><\/p>\n

At <\/span>Simplifya<\/span><\/a>, our experts have distilled all of the regulations governing cannabis businesses in 21 states, and more than 400 local jurisdictions. The complicating factor for many operators is that it\u2019s not just one set of cannabis regulations that they have to adhere to; in addition to state and local agencies, there are often federal agencies like OSHA and EPA, which have also issued regulations that impact cannabis business operations. Additionally, in states like California, operators have to deal with not only rules from the <\/span>Bureau of Cannabis Control<\/span><\/a>, but depending on their license type also the <\/span>California Dept. of Public Health<\/span><\/a>, <\/span>California Dept. of Food & Agriculture<\/span><\/a>, not to mention their local city or county mandates as well. That\u2019s a lot of rules to keep straight. <\/span>(Luckily, the state of <\/span><\/i>California is looking to consolidate all three licensing agencies<\/span><\/i><\/a>, with the intent of streamlining regulations, tax assessment, and collection.)\u00a0<\/span><\/i><\/p>\n

So, what\u2019s the good news?\u00a0<\/strong><\/p>\n

The good news is that operating in compliance with these layers of complicated regulations is — in the end — more affordable than not. In fact, many of the regulations in place can actually help operators develop, implement and maintain a more sustainably-minded operation. According to the <\/span>Environmental Sustainability in the Cannabis Industry Impacts, Best Management Practices and Policy Considerations report<\/span><\/a> issued by the National Cannabis Industry Association in 2020, companies that focus on sustainable practices often reduce their resource dependence and associated costs, positioning them to outperform their competitors in the long-term.<\/span><\/p>\n

The better news is that many state regulatory and enforcement agencies are starting to see the light. For example, <\/span>Colorado\u2019s Marijuana Enforcement Division (MED)<\/span><\/a>\u00a0implemented new sustainability measures that went into effect on January 1, 2021. The new Sustainability Measures include:\u00a0<\/span><\/p>\n