Beginning January 1, 2022, an application for renewal of a license to engage in commercial cannabis cultivation shall include total electricity usage for each power source used at the licensed premises. Below is an overview of the information the Department requires for each power source.
Electricity from UTILITY PROVIDER
If using a utility provider for electricity, such as the Los Angeles Department of Water and Power, you will need the following information:
- The monthly kilowatt hours (“kWh”) from each bill for each month of the previous licensed period.
- The total number of cannabis licenses covered in each utility bill.
- Greenhouse gas (“GHG”) emission intensity. This can be found on the power content label from the utility provider, usually available on their website.
- If you participate in a Net Energy Metering Program with your provider (for example, LADWP’s Interconnection Program for Net Energy Metering), you will need the total electricity supplied by the renewable program.
Electricity from RENEWABLE SOURCES
If using an off-grid renewable energy sources (e.g. solar panels, wind turbines), you simply need the total electricity supplied by each renewable energy source.
Electricity from OTHER SOURCES
If using generators, fuel cells, or any source other than a utility provider or renewable sources, you will need the following to complete the Template:
- Type of energy source, and whether it is above or below 50 horsepower.
- Method of electricity usage calculation. Options include: Direct Measurement, if your generator has a meter; Fuel Usage, if you do not have a meter, but you have the fuel consumption rate; Hours of Usage, if you do not have a meter or the fuel consumption rate, but you have the rated electrical output or the horsepower of your power source; Electricity Demand Spreadsheet, if you cannot use any of the previous options. This spreadsheet is a tool created by Department.
- GHG emission intensity of the fuel source. Refer to Appendix A of the Electricity Usage Reporting Guide for License Renewals (“Department Reporting Guide”) for the values for common fuel types. This form is also not available online at the moment; please contact Department or KVK for a copy.
- GHG emission intensity for the license. This can be calculated using the emission intensity of the fuel source, the total electricity supplied, and the number of gallons of fuel. Refer to page 18 of Appendix B of the Department Reporting Guide for guidance on these calculations.
Average Weighted Greenhouse Gas Emission Intensity
The Average Weighted Greenhouse Gas Emission Intensity (“AWGGEI”) must be determined if you have multiple electricity sources.
- The Department Reporting Guide provides a formula for determining AWGGEI.
- Note that all indoor and tier 2 mixed light cultivators must meet the AWGGEI level required by their local utility provider. If your local utility provider is not your exclusive source of electricity, and your AWGGEI exceeds the amount produced by your local utility, you will need to purchase carbon offset credits.
If you have any questions or if you would like more detailed guidance on complying with these requirements, please feel free to contact Katchko, Vitiello & Karikomi, PC for more information and a member of the team will be happy to assist.