Tesla has reached an agreement to pay $1.5 million to settle a case in California, which alleged the mislabeling of hazardous waste and its subsequent disposal in landfills incapable of processing such materials.
Following lawsuits from 25 California counties filed against Tesla for the purported mishandling of waste materials, the automaker agreed on Thursday to a $1.3 million civil penalty and an additional $200,000 allocated for reimbursement to the counties, covering the costs associated with investigating the matter.
This settlement was reached on Thursday in San Joaquin County state court under the jurisdiction of Judge Jayne Lee.
Tesla Accused in 101 California Hazardous Waste Cases
The lawsuit accused Tesla of violating hazardous waste regulations at 101 facilities throughout California, including its Fremont factory.
The allegations encompassed improper labeling of waste materials, such as diesel fuel, paint substances, lubricating oils, brake fluids, and used lead-acid batteries, among others.
These materials were allegedly sent to landfills not equipped to handle such waste.
The lawsuit outlined nine violations spanning waste disposal, handling procedures, transportation, and employee training.
While not admitting wrongdoing in response to the lawsuit, Tesla has agreed to the settlement amount.
Tesla Commits to 3rd-Party Audit for Waste
The company has committed to improving its waste management practices and has engaged a third-party auditor to monitor its waste handling for a five-year duration.
Tesla has also indicated that it has initiated more rigorous screening of its waste.
Despite the positive environmental impact of electric vehicles, the manufacturing and servicing of such vehicles still generate potentially harmful waste streams, according to a statement from San Francisco District Attorney Brooke Jenkins.
Tesla has previously faced environmental lawsuits in California, including a 2021 case in which the automaker settled for $1 million.
The settlement addressed allegations of air quality violations by the Environmental Protection Agency (EPA) and the Bay Area Air Quality Management District (BAAQMD) related to Tesla’s Fremont paint shop.
