Correction: Hemp is defined as cannabis that contains less than 0.3 percent THC. An earlier version of this story misquoted the percentage.

CBD is popping up all over the Burlington area — from the wellness department at South Burlington's Healthy Living Market to the pastry case at Monarch and the Milkweed.

What is CBD, and how is it made?

CBD is an acronym for "cannabidiol," a compound found in cannabis. Alejandro Bergad, the co-founder of Northeast Kingdom-based Green Mountain CBD, said his company makes CBD by extracting the compounds from hemp into coconut oil.

"We take hemp and extract all the cannabinoids out," he said. Green Mountain CBD is derived from cannabis, but cannabis that has less than 0.3 percent THC, the psychoactive substance in marijuana that makes you high.

Bergad's company sells CBD in pill or salve form in about 100 stores, and online to all 50 states, Bergad said.

More:Burlington bakery-bar branches into CBD oil confections

What are CBD's supposed health benefits?

Sellers of CBD can't make medical claims about the substance, which is not currently recognized by the FDA. But Bergad said many of their customers have told him that CBD helps them with anxiety, or helps them sleep.

CBD has also gained media attention for its effect on children with drug-resistant epilepsy.

Dr. Nora Volkow, the director of the National Institute of Drug Abuse, testified to Congress in 2015 on the need for further study of the health benefits of cannabidiol.

"There is significant preliminary research supporting the potential therapeutic value of CBD, and while it is not yet sufficient to support drug approval, it highlights the need for rigorous clinical research in this area," she said.

Is CBD legal?

Bergad said yes, citing the federal Farm Act of 2014 and its section dealing with industrial hemp.

But the wider answer is a little more tricky, said Matt Simon, the New England political director for the Marijuana Policy Project.

"It certainly isn't clearly legal," he said. "It's really confusing to a lot of people."

Some of it is made from hemp that's legally grown, but it can also be made from cannabis plants with THC levels above 0.3 percent — the legal threshold to be considered marijuana under federal guidelines. The THC would be separated out later. Green Mountain's CBD is made from hemp.

Confusion exists because marijuana is a federally illegal substance, and the federal definition does not exempt non-psychoactive components.

This can be confusing to people who want to make the product, people who want to sell it, and people who want to try it, he said.

Where can you get CBD in Vermont?

Burlington's Monarch and the Milkweed has recently begun selling CBD-laced confections. Healthy Living Market's wellness department also sells several brands of the oils.

Contact Jess Aloe at 802-660-1874 or jaloe@freepressmedia.com. Follow her on Twitter @jess_aloe