STOCKTON, Calif. (CN) — Tesla will pay several district attorney’s offices $1.5 million over violations of hazardous waste laws, per an agreement it reached this week in San Joaquin County Superior Court.
The payment stems from Tesla’s handling, transporting and disposing of hazardous materials from its facilities in California. Tesla knew about policies and procedures for handling that waste and violated the law by disposing of waste at unauthorized spots. It also failed to determine whether waste created at its facilities was hazardous and didn’t properly label and store it.
Tesla owns and operates facilities across the state. At those facilities vehicles are made, batteries produced, and cars repaired. Waste is generated at them, like brake fluids, lead acid batteries, propane, paint, and other materials.
Those accusations led to a legal action being filed early this week. A stipulated judgment and permanent injunction came on Thursday.
"Electric vehicles play a role in environmental betterment, yet it's imperative to recognize that their production and maintenance yield detrimental waste,” San Joaquin County District Attorney Ron Freitas said in a statement. “Today's agreement with Tesla, Inc. underscores our commitment to environmental stewardship. Ensuring companies are responsible for the proper management and disposal of hazardous waste is essential in safeguarding our natural resources and upholding California's robust environmental regulations.”
Prosecutors write that San Joaquin County is appropriate as a venue, as some violations occurred in that jurisdiction.
Of the total $1.5 million in civil penalties, $1.3 million of it will go to 25 different district attorney’s offices across the state. The remaining $200,000 is for reimbursing attorneys’ fees, as well as investigatory and other costs.
Certain payments come with caveats. For example, the payment for the Sacramento County District Attorney’s Office is earmarked for reimbursing money spent in enforcing consumer protection and environmental laws. None of it can go toward the office’s budget.
Tesla also faces an injunction as part of the agreement that stipulates it must comply with all applicable health and safety code, and business and professions code, regulations.
Specifically, it cannot dispose of any hazardous waste at an unauthorized point. It cannot transport any hazardous waste unless the transporter has authorization. It also must properly label and store hazardous waste, use a hazardous waste manifest before moving waste and file that manifest with the Department of Toxic Substances Control, among other requirements.
Tesla also is required to submit an annual status report for five years that details a summary of actions it took based on the judgment.
Attorneys for Tesla couldn’t be reached for comment.
Once five years have passed, and Tesla has paid everything it owes, it can ask a judge to terminate the injunction. The injunction will automatically terminate after seven years, if all payments are made.
Tesla — as well as X Corp., both of which are owned by Elon Musk — has been in court recently in a slew of unrelated cases.
The Equal Employment Opportunity Commission sued Tesla in September in federal court. It said the automotive and clean-energy company had supervisors and others who used racial slurs toward Black employees. Those workers also were subject to racist graffiti on desks, equipment and vehicles on the production line.
The commission also claimed Tesla has illegally retaliated against workers by firing them or handing over unjustified write-ups.
In an unrelated case, X Corp. — formally called Twitter — sued California Attorney General Rob Bonta in September over Assembly Bill 587. That law requires some social media companies to give reports to the state, which include information about how it defines and regulates hate speech and misinformation.
A federal judge in December denied X Corp.’s request for a preliminary injunction, which the company appealed.
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