Officials from the Bay Area Air Quality Management District said Friday that Tesla, Inc., has agreed to pay a $1 million penalty and install a solar roof project to settle air quality violations at its Fremont factory.
The settlement covers 33 notices of violation that the air district issued to Tesla and the notices of violation cover a range of violations, including emissions exceeding Tesla's permit limits, installing or modifying equipment without proper permits, failure to conduct required emissions testing, failure to maintain records and failure to report information to the air district in a timely manner.
"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," said Jack Broadbent, the air district's executive officer. "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."
Ralph Borrmann, a spokesperson for BAAQMD, explained what a microgrid project in the community might look like. “Basically what it is — is a photovoltaic array on the roof that's connected to a battery storage system,” he said. “So it'll bring down electricity costs and it'll reduce air pollution in the community where it will be installed.”
Tesla will fund the implementation of the solar microgrid system in a community prioritized under the air district's Community Health Protection Program, which focuses on improving air quality and public health in the Bay Area's most heavily impacted areas.