A state appeals court has rejected a lawsuit by environmentalists seeking to block construction of a massive solar project in San Benito County.

The San Jose Mercury News reports Tuesday's decision clears a major hurdle for the $1.8 billion, 399-megawatt solar farm in the Panoche Valley, about 50 miles southeast of Hollister.

The environmental groups claimed the 4 million solar panels would harm endangered species and disrupt the area's rural character.

The San Jose-based Sixth District Court of Appeal upheld a 2011 lower-court ruling rejecting the lawsuit.

If built, solar panels would cover an area the size of about 3,000 football fields and provide enough electricity for more than 100,000 homes.

The developers hope to break ground by late 2014, but the environmentalists plan to keep fighting the project.