Mold and Moisture Management
Indoor cannabis cultivation requires elevated humidity and warm temperatures. In efforts to prevent odors from impacting adjacent properties, some facilities may also inhibit ventilation. These conditions can lead to mold growth within the building. Moisture intrusion can also occur due to storms, flooding, leaking water pipes, spillage of irrigation water, sprinklers, and HVAC systems, and lead to mold growth. Mold growth can require cleanup or result in third-party bodily injury or property damage claims.
Legionella
Legionella is a bacterium that causes a form of potentially fatal pneumonia. Legionella can thrive in water-containing systems like misters, air conditioning, heating and cooling, plumbing, and water features. Poorly maintained systems and inadequate corrosion control or sanitation can result in Legionella growth and dispersal through mist and airborne droplets. Exposure can lead to illness and result in bodily injury claims.
Chemical Management
Fertilizers, pesticides, herbicides, rodenticides, and other chemicals utilized in cannabis operations could leak or be spilled, overapplied, or mismanaged and impact soil and groundwater or migrate to floor drains, storm drains, or surface waters. These chemicals can impact drinking water supplies and wastewater treatment systems. Pesticides and herbicides can kill plants, fish, or wildlife, changing the natural ecosystem, and fertilizers can cause algal blooms, harming aquatic life.
Carbon Dioxide
Carbon dioxide may be used in dry or liquid gas form for plant growth. Carbon dioxide is an asphyxiant; therefore, it can present a physical injury hazard if released in an enclosed space. Two common methods for generating carbon dioxide are fermentation and combustion. Inefficient combustion can produce carbon monoxide, which could cause carbon monoxide poisoning. Other air contaminants, such as hydrogen, methane, particulate matter, nitrogen oxides, sulfur dioxide, and volatile organic compounds, can be emitted due to carbon dioxide generation processes. Significant emissions of air contaminants can pose public health risks and result in third-party bodily injury claims.
Silt and Sediment
Soil movement and excavations, movement of heavy equipment, stockpiling of soils, or composting may occur as part of cannabis operations, resulting in the migration of silt and sediment in stormwater run-off. Run-off of silt and sediment into surface water bodies can impact water quality and cause ecological damage to wildlife and aquatic systems.
Equipment Leaks and Fluid Releases
Leaking of fluids, such as motor oil, hydraulic fluid, gasoline, or diesel fuel from vehicles and powered equipment used in cannabis operations, can lead to contamination of soil, groundwater, or surface water. Releases to surface water may cause damage to natural resources and may also negatively impact local drinking water sources.
Storage Tanks
Aboveground or underground storage tanks may store the fuel for equipment or fleet vehicles. Leaks from storage tank systems and releases during delivery or fueling operations could contaminate soil, groundwater, or surface waters.
Stormwater Run-off
Outdoor cannabis operations are exposed to weather elements. Stormwater may come in contact with trash, debris, pallets, chemical containers, and fueling areas and can collect chemicals, oils, pesticides, and silt and sediment., Failure to properly contain stormwater run-off can allow contaminants to enter storm drains, water bodies, or nearby third-party properties and impact soil, groundwater, or surface water.
Hazardous Waste Management
Cannabis cultivation operations can generate wastes, such as organics, pesticide and fertilizer wastes, waste oils and fluids from equipment, and waste lamps and ballasts. Pesticide and fertilizer wastes can include rinse material from containers and spray equipment, leftover spray solutions, and excess chemicals. Waste lamps and ballasts can contain mercury, heavy metals, and other toxins. Some wastes may be classified as regulated or hazardous and must be disposed of at facilities permitted to accept this material. Improper waste handling or disposal could lead to environmental liability or legal consequences for violating regulatory requirements. Waste generators can become Potentially Responsible Parties for cleanups at non-owned disposal sites (NODs).
Waste Transportation
Accidental releases during the transportation of wastes or wastewater from a cannabis operation due to improper cargo securement, a loose valve, or vehicle upsets or overturns can result in environmental liability.
Wastewater Management
Wastewater from cannabis operations can carry pesticides, herbicides, fertilizers, and other pollutants to storm drains, drywells, or surface waters, potentially impacting drinking water supplies and surface water bodies. Wastewater may be discharged to a municipal wastewater treatment plant. Accidental discharges to floor drains, upsets, or maintenance issues with wastewater pre-treatment systems may result in upsets at the municipal sewer plant or violations and fines for cannabis operations.
Odors and Third-Party Complaints
Flowering cannabis plants have a pungent odor. If odors are not controlled, neighbors may complain or file third-party suits. Courts have affirmed that claims based on odors emanating from a facility meet the pollution exclusion in the commercial general liability policy. A substance need not be toxic or harmful to be considered a “pollutant.”
