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Tesla has agreed to pay a settlement fee of $1.5 million to resolve a civil lawsuit accusing the company of mishandling hazardous waste materials at various facilities across California for an extended period. The settlement comes after district attorneys representing 25 California counties filed the lawsuit earlier in the week, alleging that Tesla had intentionally disposed of hazardous waste in locations not authorized or equipped to handle such materials.
The complaint further accused Tesla of inadequate handling of hazardous materials, including spent lead-acid batteries, paint, and lubricants used in auto repairs and manufacturing. The company was also accused of failure to properly label containers of hazardous materials and lacking proper employee training for handling hazardous waste.
The settlement fee of $1.5 million comprises $1.3 million in civil penalties and an additional $200,000 to cover the costs of the investigation. In addition to the financial settlement, Tesla is required to comply with a detailed injunction for five years, which includes demonstrating proper training of employees. Furthermore, the company will need to hire a third party to conduct annual waste audits on trash containers at 10% of its facilities each year for the next five years. These audits will involve inspections for hazardous waste, ensuring compliance with environmental regulations.
Despite Tesla’s commitment to accelerating the world’s transition to sustainable energy, the company has faced scrutiny for environmental concerns in the past. The Political Economy Research Institute ranks Tesla 89th on its list of Toxic 100 air polluters, based on data from 2021. Additionally, CEO Elon Musk has been criticized for his frequent use of a private jet, with emissions associated with it tracked by independent researcher Jack Sweeney through social media accounts like ElonMusksJet on Threads.
This settlement follows a previous incident in 2022 when Tesla paid a $275,000 penalty to the EPA for violating air toxic emission standards at its Fremont, California plant during a three-year period. The settlement underscores the importance of proper hazardous waste management practices for companies, even those with a focus on sustainability.