Cannabis business to pay $620,000 over environmental violations

August 16, 2025

By KAREN VELIE

A cannabis company located near Buelton has agreed to pay a $620,000 settlement for violating environmental regulations regarding diesel generators, according to the Santa Barbara County District Attorney’s Office.

Prosecutors filed an environmental protection lawsuit against Central Coast Agriculture Inc. and several related companies, which operate cannabis cultivation, harvesting, and processing facilities in Buellton. The cannabis company utilized at least 16, 100 to 500 kilowatt diesel generators to power refrigeration units storing frozen cannabis and greenhouses.

California’s Portable Engine Registration Program regulates the use of diesel-fueled generators, particularly those used as backup or emergency power sources. Regulators allow for the temporary use of otherwise unpermitted diesel engines during some emergencies.

Prosecutors accused the cannabis company of using diesel engines for primary power to a building, facility, or stationary equipment in violation of the regulations.

As part of the settlement, Central Coast Agriculture will pay $520,000 in civil penalties and $100,000 to the Santa Barbara County Bucket Brigade to fund the Refugio Road Trail Restoration Project. The District Attorney’s Office is slated to receive $260,000 of the civil penalties to support enforcement of consumer and environmental protection laws.

The settlement also includes a permanent injunction requiring the cannabis company to comply with all portable engine regulations in California.

District Attorney John Savrnoch thanked the Santa Barbara County Air Pollution Control District, and deputy district attorneys Christopher Dalbey and Morgan Lucas for their work on the case. Savrnoch emphasized that all businesses must comply with our environmental laws for the protection of the public, company personnel, and the environment itself.