A cannabis company based near Buellton has agreed to pay a $620,000 environmental fine after prosecutors accused it of violating state regulations on diesel generator use. The settlement was announced by the Santa Barbara County District Attorney’s Office and resolves a lawsuit against Central Coast Agriculture Inc. and several affiliated businesses operating cultivation, harvesting, and processing facilities in the region.
According to court filings, the company relied on at least 16 diesel generators, ranging in size from 100 to 500 kilowatts, to power refrigeration units storing frozen cannabis and to support greenhouse operations. While diesel engines may be used as backup or emergency power sources, California’s Portable Engine Registration Program strictly regulates their use. Prosecutors argued that Central Coast Agriculture used these generators as a primary power supply for buildings and stationary equipment, a direct violation of the program’s rules.
Under the terms of the settlement, the cannabis company will pay $520,000 in civil penalties and contribute $100,000 to the Santa Barbara County Bucket Brigade. The nonprofit will use those funds to support the Refugio Road Trail Restoration Project, which focuses on repairing and restoring local ecosystems impacted by human activity and natural disasters. Additionally, the District Attorney’s Office will receive $260,000 of the civil penalties to help strengthen enforcement of consumer and environmental protection laws across Santa Barbara County.
The agreement also includes a permanent injunction requiring Central Coast Agriculture to fully comply with California’s portable engine regulations going forward.
District Attorney John Savrnoch praised the work of the Santa Barbara County Air Pollution Control District and his deputy prosecutors Christopher Dalbey and Morgan Lucas for their efforts in pursuing the case. In his statement, Savrnoch emphasized the broader importance of the settlement, noting that compliance with environmental regulations protects not only the public and company employees but also the surrounding environment.
“This case underscores the principle that businesses, regardless of industry, must follow environmental laws designed to protect air quality and public health,” Savrnoch said.
The $620,000 environmental fine sends a clear message to companies operating in California’s cannabis industry and beyond: using unpermitted diesel engines for primary power is a costly risk. The settlement not only penalizes past violations but also invests in community restoration projects that benefit residents and natural resources in Santa Barbara County.
By holding companies accountable, local regulators hope to deter future violations and ensure that economic growth does not come at the expense of environmental responsibility.
