Amid heated debate over Oregon legislation that would require data centers to use clean energy, data center operators have been conspicuously quiet.

Amazon, Apple, Facebook and Google all operate large data centers in central and eastern Oregon. But they’ve said nothing in public about whether they support or oppose House Bill 2816, which would require data centers and crypto miners to use clean energy in big, new facilities.

Privately, though, one company is working hard to fight the legislation.

“There is no question that Amazon was lobbying against this bill from the very first moment,” said Rep. Pam Marsh, D-Ashland, one of the bill’s sponsors. She said Amazon’s representatives have been very active in Salem this winter, campaigning hard against the bill in lawmakers’ offices.

Neither Amazon nor its Oregon lobbyists, Oxley & Associates, returned messages seeking comment on HB 2816.

Publicly, the Seattle company says it’s committed to green energy.

It has pledged to reach zero carbon emissions by 2040. In Oregon, though, there’s no evidence of that. Unlike Apple and Facebook, which have built renewable energy projects to help power their Oregon data centers, Amazon’s data centers in Morrow and Umatilla counties appear to be relying primarily on carbon-burning fuel sources for most of their electricity.

The Oregonian/OregonLive reported last summer that carbon emissions from the utility serving Amazon are soaring — with emissions per megawatt hour up 543% since 2010. Amazon plans to shift some of its Oregon data centers to fuel cells powered by natural gas. Regulators say the fuel cells emit just as much carbon as conventional gas-fired electricity plants.

That, and the “vehemence” of Amazon’s lobbying, has Marsh doubting whether Amazon has “any intention of actually seeking renewable energy goals.” She chairs the climate and energy committee considering HB 2816. Marsh said she’s not aware of lobbying by any of the other data center companies.

Data centers are enormous electricity consumers, using as much power as small cities to run thousands of high-end computers and to cool the hardworking machines. In dollar terms, server farms are now among Oregon’s largest industries — growth fueled by more than $180 million annually in local property tax breaks.

While data centers aren’t major employers, they have had a profound effect on the handful of small Oregon communities where they operate, including Prineville, The Dalles and the regions around Boardman and Hermiston.

Data centers provide hundreds of local jobs and millions in tax revenues, though their exemptions save them more than they actually pay. Rep. Bobby Levy, a Republican representing large parts of eastern Oregon, says HB 2816 would stifle that growth and exacerbate the state’s geographic divide.

“Amazon, as you can imagine, is very concerned when we start targeting end users of electricity,” Levy wrote in an email.

HB 2816 would compel large data centers and crypto miners to move to clean energy over the next 17 years. It wouldn’t apply to other industries or residential power.

While data center operators are silent on the bill, the Technology Association of Oregon is a vocal opponent. The organization says  HB 2816 “targets data centers in eastern Oregon,” putting them in a tough opposition because they have no say over how the utilities that supply their electricity obtain it.

HB 2816 is due for a committee vote Monday. Marsh said she might pull the bill if it doesn’t have enough support to pass, but that if the bill dies, she intends to revive the issue at next year’s session.

Mike Rogoway, oregonlive.com

From seed to store: Meet some of the people in Washington’s marijuana industry

There are three stages most legal marijuana goes through before winding up in the hands of consumers.

First, it is grown on a farm.

Then, processors purchase it and package it, turning some into oils and edibles.

And finally, stores buy the packaged products and put them on their shelves.

All three steps are done in Skagit County by those who hold licenses from the state Liquor and Cannabis Board. So a consumer who visits a store in Mount Vernon can buy a product that was grown nearby.

According to Top Shelf Data, in December, Skagit County had 11 licensed marijuana producers/processors, one processor and 20 retailers.

Meet the growers

Alison Sheafor-Joy, of The High End west of Burlington, spends most of her days in the dirt, ensuring her marijuana plants are healthy.

“Our secret weapon is our soil,” she said.

Sheafor-Joy said The High End uses live soil, which includes worms, bugs and nutrients that help the plants thrive. This, along with an automatic watering system, makes her job easier, she said.

With the automatic watering system, the tubes that do the watering only need to be cleaned every two months. Otherwise, there is no labor required to water.

“I don’t consume, but I love the smell,” Sheafor-Joy said, rubbing her fingers on the leaf of a plant and bringing them to her nose. “This one smells just like oranges.”

Each strain is unique, she said, making her job interesting as she tries to predict the strengths and smells of every plant before they’ve bloomed. The High End grows about 50 strains.

“The first question I get asked when I tell them we  grow 50 strains is ‘How do you keep track of all of them?’” Sheafor-Joy said. “But we have a labeling system.”

Each plant has a tag near the stem that lists its strain. The tags are kept on the plants from when they are first planted to when they are moved to a bigger room on the farm to allow for taller growth.

Once fully grown, the plants are cut and sold to processors.

Here are the processors

Matthew Friedlander and Corey Williams, of Skagit Organics in Mount Vernon, have been working together since 2013.

Williams began his journey in the marijuana industry in the medical marijuana field, before it was legalized for recreational use. Once their business took off, they expanded their inventory. Now, Skagit Organics produces recreational and medical-grade marijuana products.

Williams said the time from coming up with an initial product idea to actually getting it on shelves is usually months.

“The budtenders have to be educated on the product before they can sell it,” he said.

As a processor, Skagit Organics cannot sell directly to the public. Stores buy inventory and their employees — or budtenders — sell to customers.

The retailers

There are many marijuana retailers in Skagit, some locally based and some that are part of a chain.

Nate Loving, the owner of Loving Farms in Mount Vernon, said processors often bring in samples for him and the budtenders to try, and that the product choices can get overwhelming.

“There’s so many companies now, so a lot of good options out there,” he said. “But I prefer to do business with the companies that have been doing business with us for a long time that are high quality.”

Julieth Jreige, owner of Cannazone, operates two stores in Mount Vernon and one in Bellingham. She said the biggest changes she’s seen since she got into the business are the regulations from the Liquor and Cannabis Board.

“They would walk in our door, and we would shake because we thought they were going to close us down,” she said. “They’re still very strict about the 21 and older, which is good, but they’ve eased off a little bit with some of the other [regulations].” 

Jreige said the Liquor and Cannabis Board now has consultants to help retailers ensure they are following the rules rather than enforcement officers who come in and threaten to shut a store down.

Common ground

There’s one thing all three stages of the marijuana industry have in common since recreational use become legal in 2012: taxes.

Statewide, marijuana is taxed at a rate of 37%.

In 2015, tax collected was $64.9 million. In 2022, the state collected $515.2 million from marijuana tax, penalties and license fees, according to the Liquor and Cannabis Board’s annual report. By comparison, liquor, including beer and wine, brought in $261 million in 2022.

Skagit County accounted for $9.8 million in marijuana tax in 2022, an increase from $1.1 million in 2015.

Most of the taxes from the sale of marijuana — including from producer to processor and processor to retail — go into the state’s general fund and its basic health account. They are also distributed to such agencies as the State Patrol, Department of Health and the Liquor and Cannabis Board.

“The taxes have been tough,” Loving said. “You don’t get to write things off on taxes like other businesses get to, so it’s definitely strained. And I’m sure a lot of people think it’s lucrative and all that. It’s really not.

It’s a lot of work.” Loving said after paying his employees, taxes and rent for his store, his takehome pay is less than what many would imagine.

“As the owners, we don’t make a ton just by one store,” he said.
Isabella Loy, Skagit Valley Herald