Greenhouse Growers Have Chance to Weigh in on Proposed Energy Efficiency Standards

Greenhouse Cannabis Lighting From Fluence efficiency standards

Photo: Fluence by Osram

California greenhouse growers, including cannabis producers, are dealing with looming proposed revisions to energy efficiency standards by the California Energy Commission (CEC) for indoor lighting horticulture. For these growers, one upcoming event gives them an opportunity to provide feedback directly to the CEC.

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At this point, the proposed regulations still include efficiency standards that can only be achieved by switching to the most energy efficient LED lights available. This 75% increase in the standard could cost new indoor cannabis growers $255 million in the coming years, without any of the subsidies or rebates normally available to ease such transitions. This cost does not include the potential impact of lighting changes on the efficiency of a grow room or the quality of flower produced.

According to United Cannabis Business Association President Jerred Kiloh and Seinergy CEO Bob Gunn, the primary concerns of the proposed regulation and the process include:

  • Commits horticulture practices to a nascent technology, using metrics that researchers are still developing
  • Undue cost burden on social equity applicants
  • Creates competitive advantage for illicit growers, thus threatening jobs, tax revenues, and public health
  • Timeline is misaligned with the slow launch of the California regulated market
  • Analysis fails to model technology impact on yield, quality, and revenue
  • Failed stakeholder engagement effort did not include outreach to growers (food or cannabis) in any substantive manner.
  • Proposed energy savings data is unreliable and not based on any statistically significant sample input data (e.g., regarding saturation rates, baseline technology)

In recent months, more than 130 cannabis industry participants provided comments to the utility company-sponsored consultants who drafted the proposed regulations arguing  the standards would not only be a burden on the emerging California cannabis industry — with small and social-equity businesses especially at risk of harm — but would also provide yet another advantage to illicit operators.  Despite that feedback, the consultants presented the CEC with the same recommended standard.

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Gunn also notes the cannabis industry is often slow to launch due to local regulations. So by 2023, many cannabis operations — especially equity applicants — will not have established their facilities yet. With that, they will have to bear the full brunt of the regulation.

On October 27, the CEC held a workshop on these standards that was open for public participation. Click here for more information.

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