The Oklahoma Bar Journal May 2025

Environmental compliance also plays a critical role in cannabis pro cessing regulations. The Oklahoma Department of Environmental Quality (DEQ) oversees key environmental permits affecting cannabis processors, including air quality, water quality and waste management. 40 Their regulatory authority includes environmental permitting, compliance monitoring and enforcing state and federal environmental laws. 41 Firstly, the DEQ regulates air quality through a dual permitting system comprising construction permits and operating permits. 42 This system applies to both major and minor sources of air pollu tion. Cannabis processing facilities may fall under these regulations, depending on their specific opera tions and emission levels. Secondly, the DEQ oversees water quality and waste management through its Water Quality and Land Protection divisions. 43 While the general waste water disposal permit (OKG42T) primarily addresses wastewater from medical marijuana cultiva tion facilities, it explicitly excludes

wastewater from processing facil ities. 44 Therefore, cannabis proces sors are not authorized to dispose of their wastewater under this general permit. As a result, cannabis proces sors must seek alternative permits for wastewater disposal (if appli cable to their operations) to comply with state and federal environ mental regulations. 45 For instance, discharges to waters of the state or potentially contaminated storm water generated at processing sites require coverage under a different Oklahoma Pollutant Discharge Elimination System (OPDES) permit. Additionally, discharges to Publicly Owned Treatment Works (POTW) are not covered under this permit and may necessitate apply ing for coverage under a different permit. When it comes to the disposal of solid medical marijuana waste, pro cessors are not permitted to obtain their own DEQ-issued solid waste disposal license; instead, they must use OMMA-licensed waste disposal companies to ensure proper canna bis waste management in compli ance with state regulations. 46

CONVOLUTED LICENSING AND COMPLIANCE REQUIREMENTS While licensing requirements differentiate between hazardous and nonhazardous processing, Oklahoma medical marijuana laws fail to define key aspects, such as solvent concen tration limits, facility safety require ments and compliance obligations for emerging technologies. Processors must also secure permits beyond standard OMMA licensing, includ ing Oklahoma Bureau of Narcotics and Dangerous Drugs (OBNDD) registration, 33 Class VIII un-odor ized LP Gas Administration (LPG) permit(s) for the use of propane or butane, 34 Oklahoma Department of Agriculture, Food and Forestry (ODAFF) permits for the purchase and resale of live plants 35 and can nabis seeds 36 and Oklahoma State Department of Health (OSDH) food permit for edible cannabis products. 37 Cannabis processing facili ties must comply with fire safety regulations set by the Oklahoma State Fire Marshal (OSFM), 38 which has emphasized the need for processors to engage with local government agencies during their facility-planning phase. The fire marshal’s oversight is particularly relevant in unincorporated areas where local jurisdiction agreements may not exist, adding another layer of complexity to compliance obligations. Obtaining a business license and building permit may not suffice; additional permits and adherence to specific safety proto cols are often required. 39 Processors should be strongly encouraged to consult licensed Oklahoma design professionals for facility planning to ensure compliance with the latest state-adopted building and fire codes.

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

10 | MAY 2025

THE OKLAHOMA BAR JOURNAL