City of Delta F.15 COUNCIL REPORT Regular Meeting

To: Mayor and Council

From: Corporate Services Department

Date: December 11, 2019

BC Tweed Cannabis Greenhouse Air Discharge Approval Application

The following report has been reviewed and endorsed by the City Manager.

■ RECOMMENDATION:

THAT Metro Vancouver be requested to require that the emissions of all air contaminants from the BC Tweed Cannabis Greenhouse in Delta be addressed through an Air Quality Permit and that a temporary Approval for the discharge of air contaminants from a cogeneration facility not be considered.

■ PURPOSE:

To seek endorsement of Delta's proposed submission to Metro Vancouver on the subject of an Approval application submitted related to emissions from a cogeneration facility at a cannabis greenhouse in Delta.

■ BACKGROUND:

BC Tweed Joint Venture Inc. (BC Tweed) the operator of a cannabis greenhouse located at 10250 Hornby Drive has applied to Metro Vancouver pursuant to the Greater Vancouver Regional District Air Quality Management Bylaw 1082, 2008 for an Approval. Attachment A is the notice of application.

An Approval is a short-term (up to 15 month) authorization of the discharge of air contaminants. Approvals are used for temporary emission sources and as an interim measure for permanent installations while work on a longer term Permit is underway.

BC Tweed is requesting authorization to discharge air contaminants from five 2 megawatt and three 1 .5 megawatt cogeneration natural gas fueled engine systems at their cannabis greenhouse facility. The cogeneration system will operate for the purpose of supplying heat and electricity to BC Tweed's Delta greenhouse. The facility will be equipped with a Selective Catalytic Reduction (SCR) system to reduce the discharge of air contaminants into the surrounding environment. Page 2 of 3 BC Tweed Cannabis Greenhouse Air Discharge Approval Application December 11, 2019

■ DISCUSSION:

Delta Zoning Requirements

Delta's zoning bylaw was amended in September 2014 to allow combined heat and power generation (cogeneration) as an accessory use within the A 1 Agricultural zone subject to the facility being sized in accordance with the heat and power requirements of a co-located greenhouse. This amendment resulted in Delta's zoning bylaw being consistent with provincial guidelines for cogeneration facilities at greenhouses on agricultural land. BC Tweed has provided information in support of their application in the context of Delta's zoning bylaw requirements for cogeneration facilities. The installation is consistent with Delta's requirements, which include that the maximum output of cogeneration facilities is.1 .0 megawatts per hectare of greenhouse area. The BC Tweed greenhouse is approximately 16 hectares in size and the proposed total cogeneration output is 14.5 megawatts.

BC Tweed has confirmed that the engines will be operated based on the electrical requirements of the greenhouse and there will not be excess power sold to BC Hydro. Given that there is no sale of electricity proposed, staff has confirmed with the Agricultural Land Commission that an application for a "non-farm use" is not required.

Approval Application

The air quality Approval application is specific to the cogeneration facility and does not address other emiss.ions of air contaminants from the greenhouse facility. The maximum term for an Approval is 15 months. Unlike an Air Quality Permit application, an Approval application does not require formal public notification or a public comment period. Metro Vancouver staff has advised that the BC Tweed cogeneration facility is a permanent installation so a longer-term Air Quality Permit will be required prior to the end of the term of the Approval.

It is Delta staff's understanding that Metro Vancouver has advised all cannabis greenhouses that an Air Quality Permit is required for all emissions, including the Volatile Organic Compounds (VOCs) and odourous air contaminants that are released as part of the production of cannabis. Metro Vancouver is also currently consulting on a Cannabis Production and Processing Facility Emission Regulation that would apply to the small to medium sized operations. These facilities would not require an Air Quality Permit and could operate under the regulation if adopted as currently proposed. The 2 larger facilities (currently proposed as greater than 50,000 m ) such as the BC Tweed cannabis greenhouse would still require an Air Quality Permit regardless of whether the regulation is adopted.

Staff is concerned that not all emissions from the BC Tweed site are being addressed through the subject Approval application. If an Approval is issued without consideration of the entirety of emissions from the cannabis greenhouse and overall potential impacts to the environment and human health, this could raise questions as to Metro Vancouver's authority to regulate the non-combustion emissions from a cannabis facility. It could also further delay any regulatory action in this regard. It is therefore Page 3 of 3 BC Tweed Cannabis Greenhouse Air Discharge Approval Application December 11 , 2019

recommended that Metro Vancouver be requested to require that the emissions of all air contaminants, including odourous air contaminants, from the BC Tweed cannabis greenhouse be addressed through an Air Quality Permit which includes requirements for best available emission control technology, and that a temporary Approval for the discharge of air contaminants from a cogeneration facility not be considered.

Enforcement of Air Quality Management Bylaw

The first cannabis production in Delta greenhouses started approximately 18 months ago. To date, staff are not aware of any enforcement action taken by Metro Vancouver regarding the discharge of air contaminants from cannabis greenhouses without authorization. Attachment Bis a recent letter from Mayor George V. Harvie to the Chair of Metro Vancouver requesting details of the actions Metro Vancouver is taking to bring the cannabi"s greenhouses in Delta into compliance with the Air Quality Management Bylaw.

Implications: Financial Implications - There are no financial implications.

■ CONCLUSION:

BC Tweed is seeking an Approval under Metro Vancouver's Air Quality Management Bylaw to allow for the discharge of air contaminants from a cogeneration facility at their Delta cannabis greenhouse. Metro Vancouver must regulate all emissions from the greenhouse. It is recommended that Metro Vancouver be requested to not grant this Approval and that the emission of all air contaminants, including odourous air contaminants, from the cannabis greenhouse be regulated through an Air Quality Permit that requires the use of best available control technology. It is noted that an Air Quality Permit application process would include public consultation and the opportunity for Delta to provide further comments. ~- Mel Cheesman Director of Corporate Services

Department submission prepared by: Mike Brotherston, Manager of Climate Action and Environment

■ ATTACHMENTS:

A. Notice of Application for an Approval under Metro Vancouver's Air Quality Management Bylaw: BC Tweed Joint Venture Inc. B. Letter dated December 10, 2019 from Mayor George V. Harvie to Chair Sav Dhaliwal, Metro Vancouver re: Enforcement of Air Quality Management Bylaw Attachment A Page 1 of 1 metrovancouver

ENVIRONMENTAL PROTECTION NOTICE

TAKE NOTICE THAT BC Tweed Joint Venture Inc. ("BC Tweed") of 10250 Hornby Drive, Delta, BC V4K 3N3 applies to the Metro Vancouver Regional District ("Metro Vancouver") pursuant to the Greater Vancouver Regional District Air Quality Management Bylaw 1082, 2008 for an Approval.

1. The purpose of this application is to request authorization to discharge air contaminants from five 2 MW and three 1.5 MW cogeneration natural gas engine systems at a greenhouse facility located at 10250 Hornby Drive, Delta, BC V4K 3N3.

This approval application addresses installation of the five 2 MW and three 1.5 MW cogeneration natural gas engine systems with appropriate control works at BC Tweed. The cogeneration system will operate for the purpose of supplying heat and electricity to BC Tweed's Delta greenhouse. The system will be equipped with a Selective Catalytic Reduction (SCR) system to reduce the discharge of air contaminants into the surrounding environment.

2. The legal description of the land or premises where the plant, operation or source and treatment works are or will be located is PID 006-801-731, north half of the north east quarter section 34 township 3 New Westminster district, except: part on SRW plan LMP41036.

3. The characteristics of the waste in specific terms including the content of potential pollution causing substances expressed in metric scientific units are as follows: a. Combustion processes: Primary fuel - Natural gas ; b. Maximum Opacity: 5 Percent; c. Maximum total number of sources: 8; d. Maximum duration of discharge of air contaminants in hours per year: 8760; e. Requested approval term: 15 months

4. The volume of material to be discharged, emitted or stored (per specific time period) is as follows: T oa t I E mIssIons. . f rom All S ources B ase d on Requeste d L.ImIts . an d or E st1mates*. Contaminant Emissions (tonnes/year)*

Nitrogen Oxide (NOx) 10.0 Carbon Monoxide (CO) 67 .9 Ammonia (NH3) 5.0 Methane (CH4) 459.8 Sulphur Dioxide (SO2) 0.8 Total Particulate Matter 3.7

Volatile Organic Compounds (VOCs) 144.0 Total 691 .2 *Detailed methods for calculating emissions are contained in the full application document.

This Notice is published pursuant to the Environmental Management Act, the Public Notification Regulation, and the Greater Vancouver Regional District Air Quality Management Bylaw 1082, 2008. A person who may be adversely affected by the granting or amending of the permit described in this notice may, within 30 days of its publication, notify Metro Vancouver's District Director in writing stating how that person is affected. When making a decision on the permit or approval application, the District Director will consider the application, comments submitted and any responses provided by the applicant. Information collected during the comment period and the time following until a decision on the permit application has been made is collected under the authority of the Freedom of Information and Protection of Privacy Act. Your personal information and comment will be forwarded to the permit applicant for response to the District Director. By submitting a public comment, you consent to such disclosure.

Please note that submissions in response to this notice may be made available to the public as part of the public record, subject to the provisions of the Freedom of Information and Protection of Privacy Act.

Metro Vancouver Attention: Ray Robb, District Director 4730 Kingsway, Burnaby BC V5H 0C6

Phone: (604) 432-6200 Fax: (604) 436-6707 Email: [email protected]

9 SERVICESAND SOLUTION S FORA LIVABLE REGION December 10, 2019

Sav Dhaliwal, Chair Metro Vancouver Board of Directors 4 730 King sway Burnaby, BC V5H 0C6

Dear Chair Dhaliwali

Re: Cannabis Greenhouses and Enforcement of Air Quality Management Bylaw No. 1082

The emission of odourous air contaminants from cannabis greenhouses is a significant issue for our City. There are two very large greenhouses currently producing cannabis in Delta, and a third that is in the process of converting from a vegetable greenhouse to a cannabis facility. Another greenhouse, Pure Sun Farms on 80th Street, has announced plans to expand its cannabis operation to include area currently dedicated to vegetable production. The total area of greenhouses in Delta that produce cannabis or are in the process of converting to cannabis production is now approximately 6 million square feet.

Despite the installation of air filters in these facilities, we continue to experience strong odours at significant distances from cannabis-producing greenhouses in Delta. The lack of prescriptive requirements for odour control under Health Canada licences (which neither include performance outcomes nor require monitoring), allows significant odour issues to continue in our community.

I recognize that Metro Vancouver is in the process of developing a regulation to address air contaminants from small to medium-sized cannabis production and processing facilities. While this work is ongoing, it is our understanding that cannabis greenhouses discharging air contaminants without a permit or other approval contravene Metro Vancouver's Air Quality Management Bylaw. City of Delta staff are not aware of any Air Quality Permits that have been issued or applied for 1n respect of cannabis greenhouses located in Delta.

------4500 Clarence Taylor Crescent, Delta, , V4K 3E2 / 604.946.327 0 I [email protected] Attachment B 2 of 2

December 10, 2019 Page 2

Pursuant to your authority over the discharge of air contaminants, Delta urges Metro Vancouver to address odourous air contaminants from cannabis-producing greenhouses. We expect that this would include requirements that cannabis greenhouses employ the best available technology to control emissions, and implement appropriate compliance mechanisms to ensure the surrounding community is not negatively impacted.

I respectfully request an update on actions to bring the cannabis greenhouses in Delta into compliance with Metro Vancouver's Air Quality Management Bylaw. I am copying this letter to my fellow Mayors who have cannabis-producing greenhouses within their municipalities.

Thank you for your attention to this important matter; I look forward to your response.

Yours truly,

George V. Harvie Mayor cc: The Honourable Carla Qualtrough, PC, MP for Delta , MLA Delta North Ian Paton, MLA Mayor Malcolm Brodie and Council, City of Richmond Mayor Jack Froese and Council, Township ofLangley Mayor Bill Dingwall and Council, City of Pitt Meadows Mayor Mike Morden and Council, City of Maple Ridge Delta Council Sean McGill, City Manager Mel Cheesman, Director of Corporate Services