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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.

 


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I’m not really pro cannabis industry, but California’s control over air pollution is bonkers. Like everything else state related, it seems to be structured to just extract the most money possible from all citizens and business that reside here.


34

Skirting the rules using mobile diesel engine harms your neighbors health and they are noisy. The state isn’t bonkers to crack down on them. Elon’s AI company is doing the same thing to power his data center back east. They both have the money to pay the fine. It is a drop in the bucket.


What they article didn’t note was the ceasing of the operation of the engines. If still allowed, then you would be correct about the state extracting money without addressing issues.

BTW I have been to that facility many times. A single C-Train there holds about $3 million in extracted oils. There were seven of them in the one building I visited.. There are a lot more buildings there. They also use liquid nitrogen to force the oils from the leaf. Tens of thousands of gallons of it. The terpins from the oils bleed off and are also volatile. They are required to monitor most buildings for explosive gases.


I am quite happy they are vigorously regulated and fined when necessary.


11

“The nine most terrifying words in the English language are, I’m from the government and I’m here to help.” – Ronald Reagan, August 12th, 1986


25

Thanks Karen. Might just be the tip of the “potberg” for the industry. $620,000 – I wonder how many days production that equals.


21

or how many paid off politicians it equals.


26

I’m pro-pot but I agree that ALL businesses should be following the rules. Just last April an oil company was fined $18 million for defying orders to stop work on a corroded pipeline in Santa Barbara as well. Shocking how brazen all these big money businesses( of all kinds ) have become :/


-14

And how much would they have been fined, had that pipe burst?


Shocking how brazen all these big money government regulations, have hurt businesses (of all kinds).


9

It shocks me how eager many on this site are to sell out their own kids and the younger generation. In most cases, for absolutely nothing. Pro corporation and anti environment; smh. Why?


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