Cannabis cultivator Central Coast Agriculture Inc. and partners agree to $620,000 settlement

BUELLTON, Calif. – A $620,000 settlement of an environmental protection lawsuit has been reached by Central Coast Agriculture Inc. and several related companies over the use of multiple diesel generators at cannabis cultivation operations for more than a year.
Central Coast Agriculture Inc. agreed to pay $520,000 in civil penalties of which $260,000 will support the District Attorney's Office to support enforcement of consumer and environmental protection laws shared the Santa Barbara County District Attorney's Office in a press release Friday.
The additional $100,000 from the settlement is dedicated to funding for the Refugio Road Trail Restoration Project added the Santa Barbara County District Attorney's Office.
The civil complaint alleged that the companies operated at least 16, 100 to 500 kilowatt diesel generators to power refrigeration unites storing cannabis and at least one of those generators was used as the primary power source for a cannabis greenhouse detailed the Santa Barbara County District Attorney's Office.

According to the Santa Barbara County District Attorney's Office, the cannabis companies violated the California Air Resources Board's Portable Engine Registration Program (PERP) by using those generators as the primary power for a building, facility, or stationary equipment without Air Pollution Control District authorization, kept them at the same location for more than 12 months, and failed to record the location of each generator on a monthly basis.
Those violations of the PERP required a permit from the Air Pollution Control District and part of the settlement included a permanent injunction requiring the companies to comply with all PERP regulations noted the Santa Barbara County District Attorney's Office.
"Under state law, it is illegal to use a diesel generator as a primary source of power without a permit from the district," explained Melinda Burns, an investigative journalist covering cannabis cultivation in Santa Barbara County, while covering violations by Central Coast Agriculture Inc. in June of 2021. "The Santa Barbara County cannabis ordinance goes further: it bans the use of diesel generators as a primary source of power for cannabis operations in all unincorporated areas, except during power outages and other emergencies. De Friel had no state or district permits for his 16 diesel generators."

An undisclosed portion of that settlement went to an expansion of cannabis operation surveillance by the county-based environmental regulator.
"We are thankful to have reached a settlement, and more importantly worked with CCA [Central Coast Agriculture Inc.] to reach compliance with air quality regulations for their manufacturing operations," stated Aeron Arlin Genet Executive Director for the Santa Barbara County Air Pollution Control District back when the settlement was announced in early June of 2024. "The magnitude of this settlement reflects the significance of the violations and the amount of emissions over 3 years. The Clean Air Fund portion of this settlement will be used on other projects throughout the Lompoc community to reduce emissions and improve air quality."
