The Commonwealth of Massachusetts Executive Office of Energy and Environmental Affairs 100 Cambridge Street, Suite 900 Boston, MA 02114 Charles D. Baker GOVERNOR Karyn E. Polito LIEUTENANT GOVERNOR Matthew A. Beaton SECRETARY Tel: (617) 626-1000 Fax: (617) 626-1181 http://www.mass.gov/eea February 9, 2018 By U.S. Mail & Email Cannabis Control Commission 101 Federal Street, 13th Floor Boston, MA 02110 Dear Chairman Hoffman and Commissioners: The Executive Office of Energy and Environmental Affairs (EEA) appreciates this opportunity to offer comments and proposed additions to the draft regulations issued by the Cannabis Control Commission pursuant to G. L. c. 94G, §§ 1-21. We offer the following comments on behalf of EEA and its constituent agencies affected by the regulations, including the Department of Energy Resources (DOER), the Department of Environmental Protection (MassDEP), and the Massachusetts Department of Agricultural Resources (MDAR). General Comments We offer these comments with the recognition that in undertaking to formulate a comprehensive regulatory scheme for an entirely new industry, the Commission is taking on an enormous task and that the expedited timeline that the statute has set for completion of this work adds to the Commission’s challenge. This will inevitably require that the Commission prioritize its work so that regulatory provisions that are necessary and essential to a successful launching of the adult use marijuana market are resolved in the few months that remain before the Commission must begin licensing marijuana establishments. The Legislature has clearly indicated the importance of establishing definitive energy efficiency and environmental standards as a condition for licensure. Accordingly, Chapter 94G places energy and environmental standards for licensure within the category of policy decisions that the Commission must address in regulation rather than among those areas the Commission may in its discretion choose to address. See G. L. c. 94G, § 4(a½)(xxxiv). We are concerned, however, that the Commission’s draft regulations leave those standards unspecified, and we therefore strongly recommend that the Commission amend the draft regulations to ensure that substantive energy efficiency and environmental standards are established prior to initial licensure. We suggest that in the limited time remaining before the initial regulations must be issued, the Commission focus on finalizing these standards and clarifying other mandatory elements of the adult use regulations and postpone consideration of other elements or licensing classes that the Commission is not required to consider either by statute or, as a practical matter, in order to meet the July 1, 2018 target date for initiating retail sales of adult use marijuana. Experience from other states has shown that the energy usage of marijuana establishments, especially large-scale, indoor facilities engaged in cultivation, is extraordinarily high.1 This raises concerns about the carbon footprint of this new industry and the corresponding negative effects this will produce on the Commonwealth’s ability to meet its Global Warming Solution Act (GWSA) goals. Massachusetts has been ranked #1 for energy efficiency by the American Council for an Energy-Efficient Economy (ACEEE) for seven years. We believe that it is important to continue our leadership and that the regulations must therefore set substantive minimum efficiency standards to counteract the high energy usage of this new industry. We note that other states that have legalized adult use of cannabis have missed the opportunity to set meaningful energy guidelines for the marijuana industry. This oversight has resulted in the negative consequences shown by the experience of cities like Denver, which has seen a troubling increase in energy use from marijuana cultivators.2 The main energy driver in cultivation is high intensity lighting, which runs 12-24 hours every day, uses inefficient technology usually found in old street lights, and requires significant cooling to offset the heat from the lights. Setting energy standards that encourage the use of LED lighting will reduce the need for cooling and significantly reduce energy use by cultivators. We propose below a number of other suggestions that will encourage this new industry to reduce its carbon footprint and become civic partners in achieving the Commonwealth’s energy and environmental goals. Specific Comments 1. Energy Efficiency and Environmental Standards The draft regulations intend to establish certain class-specific operating requirements for Marijuana Cultivation (935 CMR 500.120(L)) and Marijuana Product Manufacturers (935 CMR 500.130(C)) relating to energy efficiency and environmental matters, as required by G.L. c. 94G, § 4(a½)(xxxiv). To do so, the draft language states generally that marijuana cultivators and marijuana product manufacturers must satisfy “minimum energy efficiency and equipment standards established by the Commission” and must meet “all applicable environmental laws, regulations, permits and other applicable approvals.” While this general requirement states the proper obligation, the draft language in 935 CMR 500.120(L) and 935 CMR 500.130(C) does not in fact specify any substantive energy efficiency standards that will apply as a condition of initial licensure. Instead, those provisions defer decision-making on this important issue by signaling that the Commission will establish energy efficiency and equipment standards at some future time. 1 See Marijuana Industry, Far from Green, Is a Power Hog, Providence Journal (Aug. 5, 2017), available at http://www.providencejournal.com/news/20170805/marijuana-industry-far-fromgreen-is-power-hog. 2 Marijuana Grow Houses Boost Denver Power Demand, Complicating Efficiency Plans, Utility Dive, available at https://www.utilitydive.com/news/marijuana-grow-houses-boost-denverpower-demand-complicating-efficiency-pl/401751/. We believe it is critical to establish basic standards by regulation at the time of initial licensure, as required by Chapter 94G, even if further details are later added through consideration of “best management practices” identified by the working group established under St. 2017, c. 55, § 78(c). Setting minimum energy efficiency and equipment standards at the time of initial licensure will ensure that applicants will take energy consumption into account when designing and constructing newly licensed facilities. This has obvious advantages over putting operators in the position of possibly needing to retrofit designs during the license renewal process in order to meet standards that have been put in place since the time they commenced operations. In view of the large capital investment required to construct cultivation facilities, the regulated entities should be given clear, up front notice of the minimum standards that the Commission will require as a condition of licensure. EEA therefore recommends that regulations include specific efficiency and equipment standards for marijuana cultivators in 935 CMR 500.120(L). In view of the lower anticipated energy usage by marijuana manufacturers, it would be reasonable for the Commission to omit the reference to specific efficiency and equipment standards in 935 CMR 500.130(C), provided that the regulations add to section 935 CMR 500.105, which covers all classes of marijuana establishments, a universal requirement that all marijuana establishments demonstrate consideration of energy efficiency and conservation measures and implementation measures as part of the initial licensing evaluation. Finally, EEA recommends adding language to clearly tie the license application requirements in 935 CMR 500.101 to 500.103 to the operating requirements set forth in later sections. To incorporate these recommendations, EEA proposes the specific language changes below. a. Modify the first sentence of 935 CMR 500.120(L) (Additional Operational Requirements for Marijuana Cultivators) as follows: (1) A marijuana cultivator shall satisfy minimum energy efficiency and equipment standards established by the Commission and meet all applicable environmental laws, regulations, permits and other applicable approvals, including those related to water quality and solid and hazardous waste management disposal, prior to obtaining a final license under 935 CMR 500.103(B). , and to use additional best management practices as determined by the working group established under section 78(b) of chapter 55 of the acts of 2017 to reduce energy and water usage, engage in energy conservation and mitigate other environmental impacts. (2) Marijuana cultivators shall be subject to the following minimum energy efficiency and equipment standards: (a) The building envelope for all facilities, except greenhouses, must meet minimum Massachusetts Building Code requirements and all Massachusetts amendments (780 CMR), IECC Section C.402 or ASHRAE Chapters 5.4 and 5.5. (b) The Lighting Power Densities (LPD) for cultivation space must not exceed 36 watts per square foot of canopy, unless otherwise determined in guidelines issued by the Commission. (c) Heating Ventilation and Air Conditioning (HVAC) and dehumidification systems must meet Massachusetts Building Code requirements and all Massachusetts amendments (780 CMR), IECC Section C.403 or ASHRAE Chapter 6. (d) Safety protocols must be established and documented to protect workers and consumers (e.g., eye protection near operating grow light). (e) Requirements (b) and (c) shall not be required if an indoor marijuana cultivator is generating 100% or more of the onsite load from a renewable resource. (f) The Commission may further define these standards, or create reasonable exemptions or modifications, through guidelines issued in consultation with the working group established under section 78(b) of chapter 55 of the acts of 2017, including but not limited to provisions for greenhouses and agricultural buildings. (3) A marijuana cultivator must also demonstrate consideration of the following factors as part of its operating plan and application for licensure: (a) Identification of potential energy use reduction opportunities (including but not limited to natural lighting, heat recovery ventilation and energy efficiency measures), and a plan for implementation of such opportunities; (b) Consideration of opportunities for renewable energy generation, including, where applicable, submission of building plans showing where energy generators could be placed on the site, and an explanation of why the identified opportunities were not pursued, if applicable; (c) Strategies to reduce electric demand (such as lighting schedules, active load management, and energy storage); and (d) Engagement with energy efficiency programs offered pursuant to M.G.L. c. 25, § 21, or through municipal lighting plants. b. Modify the second sentence of 935 CMR 500.120(L) (Additional Operational Requirements for Marijuana Cultivators) as follows: (4) A marijuana cultivator shall adopt and use additional best management practices as determined by the Commission, in consultation with the working group established under section 78(b) of chapter 55 of the acts of 2017, to reduce energy and water usage, engage in energy conservation and mitigate other environmental impacts, and shall provide annual energy reporting to the Commission. If minimum standards or best management practices are not established by the time of an application for initial licensure, a marijuana cultivator must satisfy such standards or best management practices as a condition of license renewal, in addition to any the terms and conditions of any environmental permit regulating the licensed activity. c. Insert at the end of 935 CMR 500.105 (General Operational Requirements for Marijuana Establishments): (R) Energy Efficiency and Conservation A marijuana establishment must demonstrate consideration of the following factors as part of its operating plan and application for licensure: a. Identification of potential energy use reduction opportunities (such as natural lighting and energy efficiency measures), and a plan for implementation of such opportunities; b. Consideration of opportunities for renewable energy generation, including, where applicable, submission of building plans showing where energy generators could be placed on the site, and an explanation of why the identified opportunities were not pursued, if applicable; c. Strategies to reduce electric demand (such as lighting schedules, active load management, and energy storage); and d. Engagement with energy efficiency programs offered pursuant to M.G.L. c. 25, § 21, or through municipal lighting plants. d. Modify 935 CMR 500.130(C) (Additional Operational Requirements for Marijuana Product Manufacturers) as follows: A marijuana product manufacturer shall satisfy minimum energy efficiency and equipment standards established by the Commission and meet all applicable environmental laws, regulations, permits and other applicable approvals, including those related to water quality and solid and hazardous waste management disposal, and to adopt and use additional best management practices as determined by the Commission, in consultation with the working group established under section 78(b) of chapter 55 of the acts of 2017, to reduce energy and water usage, engage in energy conservation and mitigate other environmental impacts. If minimum standards or best management practices are not established by the time of an application for initial licensure, a marijuana cultivator must satisfy such standards or best management practices as a condition of license renewal, in addition to any the terms and conditions of any environmental permit regulating the licensed activity. e. Insert at the end of 935 CMR 500.101(A)(3) (Application Requirements for New Applicants): The Management and Operation Profile submitted in accordance with this subsection (A)(3) shall demonstrate compliance with the operational requirements set forth in 935 CMR 500.105 to 500.145. f. Insert at the end of 935 CMR 500.101(B)(5) (Application Requirements for RMD Priority Applicants): The Management and Operation Profile submitted in accordance with this subsection (B)(5) shall demonstrate compliance with the operational requirements set forth in 935 CMR 500.105 to 500.145. g. Insert at the end of 935 CMR 500.103(A)(1)(a)(i) (Inspections under Provisional License): . . . and a description of plans to ensure that the Marijuana Establishments will be compliant with requirements of the Americans with Disabilities Act (ADA) Accessibility Guidelines and the operational requirements set forth in 935 CMR 500.105 to 500.145. h. Modify the second sentence of 935 CMR 500.103(B) (Final License) as follows: . . . All information described in 935 CMR 500.000 that is not available at the time of submission, must be provided to and approved by the Commission, and must demonstrate compliance with the operational requirements set forth in 935 CMR 500.105 to 500.145, before Marijuana Establishments may receive a final license. 2. Leadership Rating The draft regulations at 935 CMR 500.040 set forth a leadership rating program for marijuana establishments and marijuana-related businesses. EEA recommends that the factors considered in designating a facility as an “energy and environmental leader” be expanded to reflect the facility’s active use of renewable energy and associated credits. EEA recommends the specific language changes below. a. Modify 500.040(C)(3) as follows: (3) Energy and Environmental Leader: in the year preceding the date of application for a leader rating: (a) The licensee has met or exceeded its energy and environmental impact goals for its registration period; and (b) The licensee has consistently documented and complied with best management practices for energy use, waste disposal and environmental impact.; (c) The licensee has documented that renewable energy credits representing 100% of the licensee’s energy usage have been retired; and (d) The licensee has labeled all their products as being produced using 100% renewable energy. 3. Waste Disposal Based on earlier discussions between the Commission and MassDEP, we understand that the waste disposal standards in 935 CMR 500.105(L) will be amended to reflect the revisions proposed by MassDEP and consistent with its regulations. A copy of these proposed revisions, as discussed with the Commission, is appended as Attachment A to this letter. MassDEP and MDAR look forward to continuing discussions about ways in which disposal methods can be modified to allow for reuse of marijuana waste for other permitted uses, including manufacturing of fabric, paper or rope, subject to all applicable registrations, permits and other regulations governing such uses. * * * * * Thank you again for the opportunity to comment on the Commission’s draft regulations. EEA and its agencies would be happy to meet with you to discuss the issues raised in this letter, or otherwise assist the Commission as it works towards final promulgation of the regulations. Very truly yours, /s/ Tori T. Kim__ Tori T. Kim General Counsel ATTACHMENT A MassDEP Comments on Waste Disposal 935 CMR 500.105(L). Recycling, Waste Handling Diversion and Disposal  (1) All recyclables and waste, including organic waste composed of or containing finished marijuana and  Marijuana products, shall be stored, secured, and managed in accordance with applicable state and local  statutes, ordinances, and regulations.  (2) Liquid waste containing marijuana or by‐products of marijuana processing shall be disposed of in  compliance with all applicable state and federal requirements, including but not limited to,  requirements for discharge of pollutants into surface water (314 CMR 3.00),or groundwater  (Massachusetts State Clean Waters Act, G.L. c. 21, §§ 26 – 53;, 314 CMR 3.00: Surface Water Discharge  Permit Program;, 314 CMR 5.00: Groundwater Discharge Permit Program;, 314 CMR 12.00: Operation,  Maintenance and Pretreatment Standards for Wastewater Treatment Works and Indirect Dischargers;,  the federal Clean Water Act, 33 U.S.C. 1251 et seq., and the National Pollutant Discharge Elimination  System Permit Regulations at 40 CFR Part 122), septic systems (G.L. c. 21A, § 13, 310 CMR 15.000: The  State Environmental Code, Title 5;), and sewers (314 CMR 7.00), or disposed of in : Sewer System  Extension and Connection Permit Program), or stored pending disposal in an industrial wastewater  holding tank in accordance with 314 CMR 18.00, Industrial Wastewater Holding Tanks and Containers.  (3) SolidOrganic wastematerial, recyclable material and solid waste generated at a Marijuana  Establishment shall be divertedredirected or disposed of as follows.  (a) Incineration in a commercial or municipal combustor Organic material and recyclable  material shall be divertedredirected from disposal in accordance with the waste disposal bans  described at 310 CMR 19.017.  (b) To the greatest extent feasible:   (i) Any recyclable material as defined in 310 CMR 16.02 shall be recycled in a manner  approved by the Commission; and  (ii) Any portion(s) of the marijuana waste which can be used for fabric, paper, rope or  other purposes is sent for such use in accordance with Department of Agricultural  Resources regulations and guidance; and finally,  (ii) Any remaining marijuana waste shall be ground and incorporated wastemixed with  other organic material as defined in 310 CMR 16.02 such that the resulting mixture  renders the marijuana waste unusable for its original purpose. Once such marijuana  waste has been rendered unusable, the mixture may be composted or digested at an  aerobic or anaerobic digester at an operation that is in compliance with the  requirements of 310 CMR 16.00.  (c) Grinding and incorporating theSolid waste containing marijuana waste generated at a  Marijuana Establishment may be ground up and mixed with solid wastes such that the resulting  mixture renders the marijuana waste unusable for its original purposes. Once such marijuana  waste has been rendered unusable, it may be brought to a solid waste managementtransfer  facility or a solid waste disposal facility (e.g.i.e. landfill or incinerator) that holds a valid permit  issued by the DEP or by the appropriate state agency in the state in which the facility is located.    (4) No fewer than two Marijuana Establishment Agents must witness and document how the marijuana  waste is disposed or otherwise handled (recycled, composted, etc.) in accordance with 935 CMR  500.105(L).  When marijuana or Marijuana products or waste is disposed or divertedredirecthandled,  the Marijuana Establishment must create and maintain a written or electronic record of the date, the  type and quantity disposed of or handledredirected, the manner of disposal or other handlingdiversion,  the location of disposal or other handlingdiversion, and the names of the two Marijuana Establishment  Agentspersons present during the disposal or other handlingdiversion, with their signatures. Marijuana  Establishments shall keep disposalthese records for at least twothree years.  This period shall  automatically be extended for the duration of any enforcement action and may be extended by an order  of the Commission.