Tesla to Pay $1 Million Fine for Air Quality Violations at Fremont Factory

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After Tesla allegedly broke environmental rules relating to its paint coatings in Germany and the U.S. last month, the California-based zero-emissions vehicle company is facing over $1 million in fines for violating California air-quality regulations, according to Business Insider.

Tesla will now face a $750,000 fine for violating air quality regulations over 30 different times in the last several years at its Fremont production facility, as announced Friday by state officials.

As a piece of the settlement, the company has agreed to build and install a solar array and battery storage system in surrounding communities with poor air quality and related public health outcomes, according to the Bay Area Air Quality Management District (BAAQMD).

BAAQMD Executive Officer Jack Broadbent said, “This settlement requires Tesla’s compliance with Air District regulations at its Fremont facility and demonstrates the Air District’s continuing efforts to ensure strict compliance with air pollution regulations while seeking mutually beneficial solutions for the community.”

Broadbent continued, “As part of this settlement, Tesla has agreed to implement a community microgrid project, which leverages the company’s technological expertise in developing next-generation power here in the Bay Area.”

While Tesla has agreed to pay $750,000 directly to the agency, it will receive the other $250,000 as a credit upon completion of the solar project, according to a Mercury News report.

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