Tesla will pay $750K fine, address violations

Tesla must pay a $750,000 fine and install a solar roof and battery project in a community with poor air quality as part of a settlement for committing 33 air quality violations, officials said Friday.

The Bay Area Air Quality Management District announced the settlement stems from violations Tesla committed since 2015 at its Fremont factory at 45500 Fremont Blvd.

The violations include exceeding emission limits, installing or modifying equipment without proper permits, failing to conduct required emissions testing, failing to maintain records and failing to report required air quality information to the district in a timely manner, the district said

in a statement.

Although both sides agreed the penalty fine should be $1 million, Tesla will pay $750,000 directly to the air district’s general operating fund.

Air district spokesman Ralph Borrmann said Tesla will receive a credit of $250,000 for the balance after it finishes installing a microgrid system of about 160 kilowatts in one of the communities prioritized under the air district’s Community Health Protection Program.

Borrmann said the system

will consist of rooftop solar panels along with a power storage system of two Tesla powerpacks, a product the company sells and installs at an estimated cost of $500,000.

Where the grid system would go has not yet been determined, Borrmann said, but it likely will end up in West Oakland, Richmond, San Pablo, East Oakland, San Leandro, Eastern San Francisco, Pittsburg, Bay Point, San Jose, TriValley area or Vallejo.

Whether the grid system lands on a community center, church, boys and girls club or some other facility, “the location that is finally chosen will be of benefit to the community,” Borrmann

said.

“The goal of this project is to reduce electricity costs as well as localized air pollution emissions within the community. The project will provide emissions-free electric power and also provide reliability in the event that grid power is unavailable due to public safety power shutoffs or other reasons,” the district statement said.

The violations covered by the settlement all have been corrected, the district said.

The settlement also “commits Tesla to implementing a comprehensive environmental management system” to track environmental requirements

and ensure company employees are properly trained to comply with them, according to the district.

“This environmental management system is designed to ensure that Tesla remains in full compliance going forward. Tesla has already begun implementing such a system, but today’s settlement agreement will make this a legally binding and enforceable commitment,” the statement adds.

Tesla, which has dissolved its public relations department, didn’t immediately respond to a request for comment.