FREMONT – Tesla must pay a $ 750,000 fine and install a solar roof and battery project in a poor air quality community to commit 33 air quality violations, officials said Friday.
The Bay Area Air Quality Management District announced that the settlement is based on violations Tesla has committed at its Fremont facility at 45500 Fremont Blvd since 2015.
Violations include exceeding emission limits, installing or changing equipment without proper authorization, failing to perform required emissions tests, failing to keep records, and failing to timely report required air quality information to the district, a statement said District.
Although both sides agreed that the fine should be $ 1 million, Tesla will pay $ 750,000 directly to the Aviation District General Operating Fund.
Aviation district spokesman Ralph Borrmann said Tesla will receive US $ 250,000 in credit for the balance after completing the installation of a 160 kilowatt microgrid system in one of the communities promoted as part of the “Community Health Protection Program ”of the Air District.
Borrmann said the system will consist of solar panels on the roof along with an energy storage system from two Tesla powerhouses, a product the company sells and installs at an estimated cost of $ 500,000.
Where the network system would lead has not yet been determined, said Borrmann, but it will probably end in West Oakland, Richmond, San Pablo, East Oakland, San Leandro, East San Francisco, Pittsburg, Bay Point, San Jose, and Trieste Valley area or Vallejo.
Regardless of whether the network ends up in a community center, a church, a boys ‘and girls' club or another facility, “the final location chosen will benefit the community,” said Borrmann.
“The aim of this project is to reduce electricity costs and localized air pollution emissions in the community. The project will deliver zero-emission electricity and also provide reliability in the event that utility power is unavailable due to public safety blackouts or other reasons, ”the district said in a statement.
The violations covered by the settlement have all been corrected, the district said.
The settlement also “requires Tesla to implement a comprehensive environmental management system” to track environmental requirements and ensure that the company's employees are appropriately trained to comply with them, as appropriate for the district.
“This environmental management system is intended to ensure that Tesla continues to ensure full compliance with the regulations in the future. Tesla has already started implementing such a system, but today's settlement agreement will make it a legally binding and enforceable commitment, ”the statement added.
Tesla, which has closed its public relations department, did not immediately respond to a request for comment.