Facts

The State of California enacted a comprehensive statutory and regulatory framework for the generation, handling, treatment, storage, transportation, and disposal of hazardous wastes. This framework mandates a 'cradle to grave' system known as the Hazardous Waste Control Law (HWCL). The HWCL system is maintained to record the generation, registration, tracking, storage, treatment, and disposal of hazardous wastes and to provide for the protection of the public and the environment from present and potential risks posed by hazardous wastes. Tesla, Inc. (Tesla) is a Delaware corporation that conducted vehicle manufacturing, battery production, and automotive repair work at different operations in California, including 57 car service centers, 18 solar energy facilities, and its Fremont factory, located at 45500 Fremont Boulevard. In 2018, San Francisco District Attorney Office's Environmental Division began investigating Tesla's trash containers at its car service centers. On April 1, 2019, the Environmental Protection Agency announced a settlement with Tesla to address hazardous waste violations at its Fremont facility; requiring the company to pay a $31,000 penalty and to purchase $55,000 in emergency response equipment for the City of Fremont's Fire Department. On January 30, 2024, the People of California through the District Attorneys of 25 California countries brought a lawsuit against Tesla, alleging violations of California's Business & Professions Code and Health & Safety Code.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendant intentionally and negligently disposed of hazardous waste, including lubricating oils, brake fluids, lead acid batteries, aerosols, antifreeze, cleaning fluids, propane, paint, acetone, liquefied petroleum gas, adhesives, and diesel fuel, accumulated during the manufacturing of its electric vehicles and batteries at unauthorized location, including "trash containers, dumpsters, or compactors at the facilities or caused the disposal of hazardous waste at a transfer station or landfill that [was] not permitted to accept hazardous waste." In particular, plaintiff contended that defendant generated and continues to generate at its Fremont Factory, located at 45500 Fremont Boulevard, hazardous waste, including weld spatter waste, waste paint mix cups, and used wipes contaminated with primer coat. Moreover, plaintiff argued that defendant failed to: determine if the waste generated at the facilities was hazardous, properly mark or label containers and tanks of hazardous waste, properly use and complete a uniform hazardous waste manifest, timely file a hazardous waste manifest with the Department of Toxic Substances Control, segregate incompatible hazardous waste, properly manage universal waste, and comply with employee training and record-keeping requirements pertaining to the handling of the hazardous waste.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions.

Result

Tesla agreed to a $1.5 million settlement with the 25 California counties.