A resolution has been reached just two days subsequent to district attorneys from 25 California counties lodging a lawsuit against Tesla, citing allegations of repeated mishandling of hazardous waste across its facilities statewide.
According to a press release issued by the Office of the District Attorney in San Francisco, Tesla has consented to pay $1.3 million in civil penalties along with $200,000 earmarked for reimbursing investigation costs. Additionally, the automaker is bound by a comprehensive injunction for the next five years, mandating the training of employees and engagement of a third party for annual waste audits of trash containers at 10% of its facilities. These audits, set to transpire annually for the ensuing five years, will involve scrutiny for hazardous waste, as outlined in a joint release dispatched on Thursday evening.
As clarified by the San Francisco District Attorney’s (SFDA) office, Tesla will be responsible for funding these audits as forthcoming expenses.
With 57 car service centers and 18 solar energy facilities scattered across California, in addition to its electric vehicle manufacturing operations at the Fremont Factory in Alameda County, Tesla occupies a significant footprint in the state.
The swift resolution, according to the SFDA office, can be attributed to the pre-existing agreement between the involved parties, as articulated by a spokesperson: “The Complaint and the Stipulated Judgment were filed at the same time on Tuesday reflecting this agreement. However, the Judge did not approve of the settlement until today.”
District Attorney Brooke Jenkins of San Francisco remarked, “While electric vehicles may benefit the environment, the manufacturing and servicing of these vehicles still generates many harmful waste streams. Today’s settlement against Tesla Inc. serves to provide a cleaner environment for citizens throughout the state by preventing the contamination of our precious natural resources when hazardous waste is mismanaged and unlawfully disposed. We are proud to work with our district attorney partners to enforce California’s environmental laws to ensure these hazardous wastes are handled properly.”
The filed complaint, dated January 30 and submitted in San Joaquin County Superior Court, outlined Tesla’s alleged improper labeling and disposal of materials such as “lead acid batteries and other batteries,” paints, brake fluid, aerosols, antifreeze, acetone, diesel fuel, and more across its production and service sites statewide. Additionally, the lawsuit contends that Tesla engaged in improper disposal both on-site and at landfills unsuitable for hazardous waste.
Despite the recent filing of the lawsuit, the environmental investigation spans a six-year duration.
Per prosecutors, the San Francisco District Attorney’s Environmental Division initiated an inquiry in 2018, conducting undercover inspections of Tesla’s trash containers at its car service centers. These inspections reportedly uncovered the illicit disposal of numerous used hazardous automotive components. Subsequent inspections were conducted at Tesla car service centers, culminating in examinations of trash containers at the Fremont factory, where further unlawful disposal of hazardous wastes was allegedly uncovered, including metal car panel welding spatter waste, waste paint mix cups, and contaminated wipes/debris.
The SFDA’s office, in conjunction with a joint press release, acknowledged Tesla’s cooperation with the investigation and its efforts to enhance compliance. Settlement discussions had commenced prior to the lawsuit.