January 31, 2022
Cannabis Cultivators of British Columbia (CCBC) is a non-profit association that represents the views of cannabis cultivators across British Columbia. Our organization was formed in July 2021 to advocate for the growth of a responsible cannabis industry in British Columbia and to work collaboratively with communities and governments across the province. We are a collection of cultivators who care deeply about the local communities we serve and work tirelessly to foster the responsible growth of our industry in B.C. and beyond. Just three years into the legalization of recreational cannabis in Canada, our industry has experienced a manifold of challenges which have resulted in contraction rather than expansion – a contraction that is putting at risk some of the important public policy aims that the legalization of recreational cannabis was meant to address, including, and especially, providing an increased measure of public safety by helping to eliminate the illicit cannabis market in Canada.
We have serious concerns about the proposed emission regulations. These regulations:
- Are predicated on measures that are inconsistent, remain untested, and are not scientifically validated;
- Will result in acutely negative impacts on plant health;
- Single out cannabis production that accounts for such a small portion of modeled emissions regulated by Metro Vancouver; and
- Are being advanced without the benefit of an economic analysis of its far-reaching impacts for the overall sector.
The B.C. Ministry of Agriculture, Food and Fisheries (AFF) commissioned its own study, released in September 2021, which focused on characterizing VOCs from various agricultural commodities in the Metro Vancouver area and their contribution to the overall VOC emissions and air quality in the region. The emission estimates put forward in the two reports from AFF and Metro Vancouver, relative to cannabis, do not align. In fact, the discrepancy between their two estimates is of fundamental concern. Currently there is no other scientific, peer-reviewed evidence to corroborate either measure. It is fair to say, evidence of the scale of VOC emissions from cannabis, and of the impacts (if any) human health, have not been validated by the scientific community and, as such, verifiably established. And the gap is not only in science but also in practice. There is no jurisdiction anywhere that we know of where such production conditions that these regulations would impose have been implemented.
Among the many risks posed by these regulations is the entirely untested method of cannabis cultivation that adherence to the new filtration requirements necessitates for greenhouse growers (which most cultivators in the region utilize). Our growing methods are the result of over 50 years of refinement of greenhouse production. They rely upon the free exchange of air with the external environment. The untested control measures proposed by these regulations would restrict air flow in a greenhouse environment, severely affecting the ability of plants to grow to such an extent that it is possible they would not survive.
We are also concerned that these regulations are disproportionate to the impacts that they seek to mitigate. On the one hand, we are concerned that cannabis production is being singled out when it is such a minor source of VOC emissions in the region and within the category of “natural emissions” that arise from agricultural crops. Pursuant to the previously discussed AFF report, greenhouse cannabis production accounts for only 0.3% of all VOC emissions in the region. By comparison, greenhouse and vegetable agriculture accounts for 0.5%, cropland and pasture for 1.5%, and non-agricultural anthropogenic sources for 78% of all VOC emissions in the region. The 0.3% calculated contribution, as low as it is, likely overstates emissions from greenhouse cannabis production since it was calculated using total facility square footage, rather than the actual growing area within those facilities. To serve as an example, three of the largest cannabis cultivators in the region combined hold a 1.85M sq ft facility footprint, of which only approximately 873,000 sq ft is used to grow the plant in various stages of its flowering lifecycle. This is a staggering difference of 47%, which could significantly impact the overall calculation of total emissions. Furthermore, previously calculated emissions estimates included largescale facilities which are no longer in operation today.
Our concerns of disproportionate treatment also extend to financial ramifications. We urge Metro Vancouver to complete a full analysis of the economic impacts of the proposed regulations. Conservative estimates indicate that CCBC members contribute well over $158M in annual revenue, over $52M in excise taxes, and more than 1,000 jobs to the region. While the economy recovered in 2021 and profits are up, it has not been without its challenges. Only three years into legalization, producers are consistently facing losses, closures, and consolidations in a market priced below the cost of production.
The aggregate effect of these regulations would add to the serious pressures that this newly formed industry is already facing. In order to comply with these regulations, cannabis greenhouses would need to be reengineered and reconstructed to physically support the proposed new filtration systems. This would entail design, engineering, construction, financing costs, among others. New construction would require the cessation of production for extended periods of time as our greenhouses are reengineered – imposing a loss of revenue and customer base throughout the construction period. This does not include other costs associated with local charges for permitting or any delays associated with the permit process that would impact returning to regular production levels and the ongoing operating cost increases. Additional costs must be factored in for the new fees and charges arising directly from the bylaw, not to mention the underlying cost of installation and for the ongoing maintenance of the filtration systems themselves, which are expected to cost anywhere from $2.5M-6M as a baseline investment per facility, not including ongoing costs associated with the changes and technology.
The added costs of implementing such activities would further erode the viability of our already challenged operators, causing many (if not all) of our members to shut down operations. The resulting supply gap would incentivize illicit operators to overtake legal cannabis cultivation to meet the demand.
We respectfully ask Metro Vancouver to discontinue the advancement of these regulations. The creation of a regulation without an evidence-based and scientific approach would not only be premature, but also and create a myriad of serious and unintended consequences for a newly formed cannabis industry in the province.
We want to thank Metro Vancouver for the opportunity to participate in this public engagement process. We also want to reassure you that public safety is of utmost importance and the Cannabis Cultivators of B.C. take this commitment very seriously. Indeed, it is why we have entered the regulated cannabis field (which includes Health Canada’s odour abatement regulations) when so many have chosen the illicit market. The proposed bylaw risks posing an existential threat to our operators. We urge Metro Vancouver to proceed with mindfulness and to support the viability of these businesses and the communities they serve.
Sincerely,
Cannabis Cultivators of British Columbia