A California judge has ordered Tesla Inc. to pay $1.5 million to settle a civil case accusing the electric vehicle giant of mishandling hazardous waste at its various facilities, including car service centers, energy centers, and its factory.
Multiple county district attorneys announced the settlement, which addresses allegations of illegal disposal of hazardous waste and violations of laws related to storage and management of such waste, as per to Associated Press.
Tesla to Pay $1.5 Million For Hazardous Waste
FREMONT, CALIFORNIA - SEPTEMBER 18: In an aerial view, the exterior of the Tesla automotive company manufacturing facility is seen on September 18, 2023 in Fremont, California. Israeli Prime Minister Benjamin Netanyahu is visiting the Tesla manufacturing facility with CEO Elon Musk and other tech firms in Silicon Valley. Netanyahu will travel to New York to speak at the U.N. General Assembly and meet with U.S. President Joe Biden later in the week.
The complaint, filed in San Joaquin County, brought together efforts from 25 district attorneys' offices across California. The combined civil environmental prosecution focused on claims that Tesla improperly disposed of substances such as used lead acid batteries, antifreeze, paint, and electronic waste at its service and energy centers throughout the state.
As part of the settlement, Tesla is subject to a five-year injunction. The injunction mandates the company to train its employees on proper hazardous material disposal practices. Additionally, Tesla must enlist an external contractor to audit some of its trash containers for hazardous waste.
San Francisco District Attorney Brooke Jenkins highlighted the environmental impact of electric vehicles, stating, "While electric vehicles may benefit the environment, the manufacturing and servicing of these vehicles still generates many harmful waste streams." She emphasized that the settlement aims to provide a cleaner environment for citizens throughout the state.
When the Environmental Division of the San Francisco District Attorney started conducting covert inspections of garbage cans at Tesla service centers in 2018, the legal investigation got underway. Investigators found that improper disposal was taking place of hazardous trash, which included aerosols, brake cleaners, contaminated debris, and lubricating oils.
Court documents revealed allegations that Tesla placed hazardous waste into ordinary trash containers at its facilities or improperly outsourced materials to transfer stations and landfills ill-suited for such waste. Inspections in Alameda County uncovered instances of weld spatter waste, paint mix, and hazardous waste being disposed of in regular trash containers at Tesla's Fremont factory, according to Low Anges Times.
Tesla's Unlawful Disposal
District attorneys in Orange County and Riverside County reported similar unlawful disposal during their inspections at Tesla facilities.
In addition to an extra $200,000 to pay investigative expenses, the $1.5 million settlement includes a $1.3 million allocation to be divided among the 25 counties involved in the case. San Francisco and San Joaquin will each get $200,000, with Alameda County expected to earn the highest part at $225,000. Los Angeles will get $15,000, while Santa Barbara, San Bernardino, and Ventura will each receive $10,000. The amounts allocated to other counties will vary.
In the deal, Tesla, which avoided from acknowledging any illegal activity, consented to pay a $1.3 million civil penalty and $200,000 to cover the counties' investigative expenses. In addition to committing to remedial action to manage waste appropriately, the corporation will have its waste practices audited by a third party every five years.
Despite the settlement, Tesla faced previous legal issues related to hazardous waste. In 2019, the company settled with the US Environmental Protection Agency over federal hazardous waste violations at its Fremont plant, agreeing to manage waste properly and pay a $31,000 fine. In 2022, Tesla reached another settlement with the EPA, involving a $275,000 penalty for failing to maintain records and implement plans to minimize air pollutants from painting operations at the Fremont plant, Reuters reported.
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