Director's office recommends denying petition to expand Tier 2 outdoor cannabis canopy

Daniel, a director's office staffer, told the board caucus that the director's office is recommending denial of a petition that would let Tier 2 outdoor cannabis producers use up to 30,000 square feet of canopy, up from the current 10,000.

The recommendation rests on the office's view that a statewide increase of that scale would “likely exacerbate oversupply issues” identified in recent economic analyses and JLARC reports, and that petitioners have the option of obtaining a Tier 3 license, which already allows 30,000 square feet, through existing licensing procedures, Daniel said.

The petition, filed May 5 by Jessica Strait and Kenny Ingebrigtsen on behalf of Eagle Trees Farms, asked the agency to amend Washington Administrative Code 314-55-075(6) to allow Tier 2 "sun growers" to expand canopy to 30,000 square feet. In his preview, Daniel summarized five arguments submitted by the petitioners: that previous incremental expansions of Tier 1 suggest precedent; that their current floor plan had been approved without canopy problems; that outdoor production has environmental advantages relative to indoor grows; that a 2023 interpretive statement created retroactive noncompliance; and that a denied declaratory order justified rulemaking.

Daniel addressed each point in turn. He said the earlier Tier 1 expansion increased allowable canopy by 2,000 square feet per producer, whereas the current proposal would increase every Tier 2 producer’s allowance by 20,000 square feet, creating a much larger aggregate increase. He noted floor-plan approvals reflect security and other requirements, not canopy use, and therefore do not guarantee future compliance with canopy limits. On environmental claims he said that any environmental benefits from outdoor growing would require additional incentives or policy changes to be realized and that canopy alone does not create that effect. He characterized the interpretive statement as over three years old and part of ongoing enforcement and education practice rather than a new policy shift. On the declaratory order denial, he said the denial did not endorse a rule change; instead it indicated formal rulemaking would be the appropriate route if a change were desired.

Daniel also said petitioners can pursue a Tier 3 license on the open market to reach 30,000 square feet without a rule change, and that staff will present the recommendation for the board’s consideration at the full meeting tomorrow. No formal vote or motion occurred during the caucus.

Next steps: the board is scheduled to take up the petition at its next meeting; staff recommended denial in the absence of additional justification to change the statutory framework.