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Ben Nelms/Bloomberg
Cannabis operations require compliance with environmental regulations, too

Cannabis operations require compliance with environmental regulations, too

The legal cannabis business in Michigan, both medical and adult use, is slowly maturing as a viable and profitable industry. Even though the nature of the business appears to be exotic, issues related to employment, mergers and acquisitions, transactions and tax also apply to cannabis businesses. The same holds true for environmental compliance.

In an earlier column, I discussed the resource intensive nature of cannabis growing and processing, which require significant amounts of energy and water. Operators of those types of facilities need to plan for access to those resources when they start up.

Cannabis growing and processing also require the use of significant quantities of potentially harmful materials, may generate air emissions and require specialized disposal methods for their wastes. Recently CBS's "60 Minutes" aired an episode on California's cannabis black market activities, including issues related to environmental impacts of such operations. But even legal operations require compliance with environmental regulations lest they run afoul of the law.

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