A project that aims to create standards to fortify the hemp building and construction industry has been selected for federal funding.
Earlier this month, EPA announced grants of nearly $160 million for projects that track and reduce climate pollution in construction materials. The Hemp Building Institute received more than $6 million to develop environmental project declarations and lifecycle assessments (LCAs) for construction material made from agricultural crops like hemp, soy and straw.
Funding for the awards comes from the Inflation Reduction Act and support the Biden administration’s Federal Buy Clean Initiative, which aims to increase demand for clean construction materials for federal buildings, highways and infrastructure projects.
Deputy EPA Administrator Janet McCabe said that "cleaner construction materials like concrete and steel are increasingly essential," adding in a statement that the grants "will expand market access for a new generation of more climate-friendly construction materials."
“The reality is that we need to get it up to scale. We need to start talking about building large volumes, large quantities,” said Jacob Waddell, president of the Hemp Building Institute.
The EPA-funded project intends to analyze already completed LCAs and resolve any issues with those, and create product category rules to set a methodology for future LCAs to make the process more streamlined and cost-effective.
Several companies have completed LCAs, which can cost upwards of $50,000 to complete and verify. But variability has created some “chaos” within the industry, Waddell said.
“That’s what is hard about this is trying to go from a world where everybody’s doing the best they can and coming up with the best numbers they can, to a world where everyone’s doing the same math,” Waddell said.
In addition to adding standards for the building sector, "it could also create a pathway for hemp farmers and manufacturers to collect carbon credits,” said Todd Hughes, a partner in the project.
Waddell and Hughes expect government and later corporations with environmental, social and governance policies to use clean construction materials but understanding the true carbon footprint of such products is crucial. They say it will keep hemp competitive in a growing market.
Overall, the project aims to be a rung in a ladder of growth for the industrial hemp industry, which advocates say holds massive environmental and economic potential. But while industrial hemp has made several advancements, advocates also worry that an amendment included in the House farm bill could decimate further growth by redefining hemp.
Jonathan Miller, general counsel at the U.S. Hemp Roundtable, noted that in Europe, hemp is used in construction materials, car paneling and other plastic products, adding that it could become a multibillion-dollar industry in the United States.
Hemp used in buildings is not a new market. Individual homeowners have turned to hemp or other biogenic materials for environmental or health reasons. However, the new recognition from EPA the project's goals show the industry is picking up momentum and could lead to more large-scale uses, said Ray Kaderli, president of the U.S. Hemp Building Association.
“It'll help us transition from one-offs to more momentum in residential space to being an actual viable product for large-scale use of commercial projects,” Kaderli said. “That's the main thing to do for the industry, and then more people will see it, and the more people see it, the more people that will be aware.”
The project from the Hemp Building Institute is an exciting sign that industrial hemp is getting more attention after long taking a “back seat” in the overall hemp industry, said Erica Stark, executive director of the National Hemp Association.
“It’s industrial hemp that holds the vast majority of the potential when we're looking at things like soil health, carbon sequestration, creating supply chains for the overall ag bio-economy,” Stark said.
Advocates cite environmental benefits of hemp, like removing carbon from the soil and using less water than similar crops. Non-edible hemp products are also biodegradable and won't sit in landfills like chemical plastic.
Leaning into sustainability of hemp has become a major focus to build out the industrial market, said Patrick Atagi, president and CEO of the National Industrial Hemp Council.
Hemp can’t replace everything, but it’s another “arrow in the quiver” for farmers to grow another crop that feeds into manufacturing, textile and other industries, Atagi said.
Other developments on the horizon could greatly expand the industrial hemp market. For example, advocates await a decision on approval for hemp seed meal as an ingredient in animal feed. Some are also beginning to look at the potential of using hemp in the biofuels market.
However, the hemp industry overall lags behind other similar crops because those have never been banned or don’t face the same regulatory hurdles, Stark said.
The 2018 farm bill removed the crop from the Drug Enforcement Administration’s schedule of controlled substances. This opened the floodgates for the industry, but challenges remain.
Currently, the same standards apply to farmers whether they're growing hemp for industrial uses, or to make CBD or ingestible products. Industry advocates say these standards are not necessary for crops intended for building materials, for example.
The latest push by advocates is to reduce regulatory barriers and separate industrial hemp from consumable hemp. The farm bill advanced by the House Agriculture Committee would draw a line between the two.
The bill would remove background checks for farmers wanting to grow hemp for grain and fiber.
Currently, criminal background checks are a deterrent to some, Miller said. Farmers are required to undergo regular sampling and chemical testing to prove their product is below 0.3% of THC, the psychoactive substance in marijuana. If a sample tests above the threshold, farmers must destroy an entire field, which may discourage planting.
The proposal in the House farm bill would allow states to do visual inspections rather than mandatory chemical testing. It also gives states options like a certified seed program.
“It really works towards getting hemp as close to traditional agriculture as possible,” Stark said.
While ensuring hemp for consumption don’t contain high levels of THC, Miller said it doesn’t make sense for industrial hemp.
Even though the bill contains significant improvements for the industrial hemp industry, advocates warn it cannot pass with a “disastrous” amendment added by Rep. Mary Miller, R-Ill., said the Hemp Roundtable's Jonathan Miller. The amendment, which passed by voice vote during the House committee markup, attempts to crack down on those that sell intoxicating cannabis products to children by redefining hemp under the Agricultural Marketing Act to include only naturally occurring, naturally derived and non-intoxicating cannabinoids.
If included in the final bill, it would ban about 90% to 95% of consumable hemp products, Jonathan Miller said. It would also “wreak havoc” on industrial hemp, he said.
Miller said the amendment would make most hemp growth, even for fiber or grain, non-compliant, effectively wiping away six years of crafting seeds to meet THC guidelines.
While the text of the bill by Senate Agriculture Committee Chair Debbie Stabenow, D-Mich., has not been released, its framework includes hemp provisions like the House version, Miller said.
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