In California’s Wine Valley, Cannabis Company Caught Running 16 Diesel Generators as Main Power Source

A cannabis company in California’s wine valley has been caught using 16 diesel generators as the main engine of its business, resulting in a hefty settlement of $620,000. Central Coast Agriculture Inc. was found to be using these generators without permits and in violation of California’s Portable Engine Registration Program (PERP).

The company’s actions were brought to light by a civil complaint filed by the Santa Barbara County District Attorney’s Office, which alleged that the generators were being used to power refrigerated shipping containers full of cannabis and a greenhouse. This is a clear violation of Santa Barbara County’s strict cannabis ordinance, which prohibits the use of diesel generators as primary power sources in unincorporated areas except during outages.

The settlement, reached on August 15, directs $260,000 to the DA’s environmental enforcement unit, another $260,000 to local regulators, and $100,000 to the Refugio Road Trail Restoration Project through the Santa Barbara Bucket Brigade. In addition, the company is now under a permanent injunction to comply with air-quality laws.

History Repeats Itself: Central Coast Agriculture’s Pattern of Environmental Violations

This is not the first time Central Coast Agriculture has found itself in legal trouble. In June 2024, the same company paid $1.3 million to the Santa Barbara County Air Pollution Control District for violations at its cannabis manufacturing and extraction facility in Lompoc. The facility was found to have emitted 135 tons of reactive organic compounds into the air in 2020 alone, more than twice the annual emissions of every gas station in Santa Barbara County combined.

While the issue in Buellton was the use of diesel generators, the problem in Lompoc was the use of solvents in cannabis extraction, such as butane and ethanol. Different technologies, same story: the company failing to comply with basic rules that protect air quality in communities where farms, vineyards, and homes share the same sky.

The Bigger Picture: Cannabis’ Environmental Impact

This is not an isolated incident. Cannabis has become one of the most resource-intensive crops in North America, not because of the plant itself, but because of the restrictions imposed by prohibition. As Rolando García wrote in High Times, the current state-by-state legalization model has forced cannabis into a “Bitcoin” model of production, with high energy use, closed loops, artificial lighting, and heavy machinery.

With federal law still banning interstate commerce, each state is forced to build its own inefficient supply chain. This means that states like Vermont, New York, and Michigan are growing cannabis indoors in less-than-ideal conditions, while California’s abundant sunshine goes unused. And in cases like Central Coast Agriculture, companies are turning to diesel generators in wine country.

Why Federal Legalization is Crucial for the Environment

The lesson here is clear: until cannabis is legalized federally, it will continue to have a negative impact on the environment. State-by-state walls and prohibition only serve to perpetuate the inefficient and harmful practices of the cannabis industry. Legalization at the federal level would allow for more sustainable and environmentally-friendly methods of production, ultimately benefiting both the industry and the planet.

 

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