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Opportunities and Risks In Managing Marijuana Waste Rich Thompson, CHMM Managing Partner, TEC, LLC March 27, 2019 2019 ESD/MWRA Solid Waste Technical Conference

K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

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Page 1: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Opportunities and RisksIn Managing

Marijuana Waste

Rich Thompson, CHMMManaging Partner, TEC, LLC

March 27, 2019

2019 ESD/MWRA Solid Waste Technical Conference

Page 2: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Fortune Magazine

February 2019

2019 ESD/MWRA Solid Waste Technical Conference

Page 3: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Ten states and Washington, DC now allow for recreational

marijuana use, and 33 allow

for medical use, but cannabis

remains illegal under Federal

law.

2019 ESD/MWRA Solid Waste Technical Conference

Page 4: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

Michigan Department of Licensing and

Regulatory Affairs (LARA) Bureau

of Marijuana Regulation (BMR) is responsible for

the oversight of medical and adult-use

(recreational) marijuana in Michigan.

Page 5: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

MichiganMedical Marijuana Program

• Approved in November, 2008• New laws establishing the

program approved in 2016• Retail sales began in 2018• 2018 Medical Sales: $869M

Michigan Adult-Use Marijuana Program

• Approved November, 2018• Retail sales expected in late

2019 or 2020

Page 6: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

New adult-use program allows possession for adults 21 and over.

Residents will be able to grow up to 12 plants.

A 10% tax is imposed on all marijuana sales.

License required for growers, processors, transporters, testers, and dispensaries.

Page 7: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

“It’s no secret the cannabis market generates a lot of waste.”

Rich Thompson, CHMMManaging Partner, TEC, LLC

Waste Dive – October 29,2018

Page 8: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

Page 9: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Three main points of marijuana waste

generation:

• Growers (Cultivation)

• Processors (Manufacturing and Extraction

• Dispensaries (Distribution)

2019 ESD/MWRA Solid Waste Technical Conference

Page 10: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Cultivation = Grow Facilities

2019 ESD/MWRA Solid Waste Technical Conference

Page 11: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

Page 12: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Marijuana Waste must generally meet these requirements:

• Be removed from packaging and rendered “unusable and unrecognizable.”

• Be incorporated with non-cannabis waste such as non-consumable solid wastes

• Resulting mixture must be at least 50% non-marijuana waste and should be placed in a secured waste receptacle

Marijuana regulations require proper disposal of cannabis waste

2019 ESD/MWRA Solid Waste Technical Conference

Page 13: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

Credit: GAIACA

Page 14: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Shredders or grinders can destroy tough solids including stems, stalks, and root balls

2019 ESD/MWRA Solid Waste Technical Conference

Page 15: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Cultivation waste disposed in compactors, roll-off boxes, or solid

waste containers from 2-10 yards

2019 ESD/MWRA Solid Waste Technical Conference

Page 16: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Composting cannabis plant waste is required in some states and the desired treatment method in

several others.

2019 ESD/MWRA Solid Waste Technical Conference

Page 17: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

5 Benefits of CompostingCannabis Waste

• Increase soil health; improving yields• Comply with state regulations efficiently (with less

dependency on pesticides)• Decrease overall operational costs• Promote sustainability – organic products • Having cannabis waste composted by a licensed

operator ensures public and environmental safety

Page 18: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

In Colorado – prices are in a broad range from $50 - $400 cy

Page 19: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Processing – preparing cut flower, extraction (cold and heat)

2019 ESD/MWRA Solid Waste Technical Conference

Page 20: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Manufacturing = Processing

What are marijuana concentrates?

Also known as: 710 (the word “OIL” flipped and spelled backwards), wax, ear wax, honey oil, butane honey oil (BHO), shatter, dabs (dabbing), black glass, and errl.

How are marijuana concentrates processed?

Most use forms of pressure and filtering but some use solvents including butane or CO2 to deliver a more potent product.

2019 ESD/MWRA Solid Waste Technical Conference

Page 21: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Distribution = Dispensaries

2019 ESD/MWRA Solid Waste Technical Conference

Page 22: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Aspen Airport Now Offers Marijuana-Only Disposal Bins: Keeps You From

Breaking Federal LawMarijuana at airports: Colo., Wash. adjust to new laws

2019 ESD/MWRA Solid Waste Technical Conference

Page 23: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

Top 5 Cannabis Cultivation Violations for 2018:

1. Inventory Controls – the licensee does not reconcile all on-premisescannabis inventory with the inventory tracking system and account for allvariances as required

2. Business Records Required – the facility does not document materialchanges required for standard operating procedures and regulatedprocesses

3. Financial Filings – the business is not compliant with IRS regulations forrequired tax filings

4. Waste Management – the cultivation facility has not properly documentedall cannabis waste and cannabis waste removal

5. OSHA Records – the business does not have a complete inventory of SDSdocuments where chemicals and or pesticides are stored

Credit: Adherence Compliance

Page 24: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

Best Management Practices

1. In order to avoid fines, penalties and further regulatoryinspections, implement routine compliance inspections. This isespecially true of inventory tracking systems, which are the mostproblematic systems in terms of compliance.

2. Implement routine compliance training for your managementteam and staff. Learn about safeguarding inventory and avoidingpotential vulnerabilities from risk of theft, cannabis diversion andwaste.

3. Be proactive and start now. Compliance saves time and money.Protect your business assets at all times.

Credit: Adherence Compliance

Page 25: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

Opportunities and Risks in Managing Marijuana Waste

Rich Thompson, CHMMManaging Partner, TEC. LLC

[email protected]

Thank you!

2019 ESD/MWRA Solid Waste Technical Conference

Page 26: K } µ v ] ] v Z ] l / v D v P ] v P D ] i µ v t - ESD · 2019. 3. 28. · 6kuhgghuv ru julqghuv fdq ghvwur\ wrxjk vrolgv lqfoxglqj vwhpv vwdonv dqg urrw edoov î ì í õ ^ ldtz

2019 ESD/MWRA Solid Waste Technical Conference

QUESTIONS?