Tesla will pay $750,000 and build a solar roof to settle dozens of air-quality violations at its Fremont factory

• Tesla agreed to $1 million in penalties for violating air-quality regulations in California.
• The company will pay a $750,000 fine and fund a solar roof project in a community with poor air quality.
• The EPA in April accused Tesla of failing to report emissions from its cars' coatings.

Tesla has been slapped with a $750,000 fine for violating air quality regulations more than 30 times over the last several years at its Fremont, California plant, state officials announced Friday.

The electric-car maker will also install a solar array and battery system in a community with poor air quality and public health outcomes as part of the settlement, the Bay Area Air Quality Management District 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," Jack Broadbent, executive officer of the agency, said. "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."

Tesla agreed to a $1 million penalty, but will only pay $750,000 directly to the agency's operating fund. It will receive the other $250,000 as a credit once the solar-power project is complete, The Mercury News reported, citing an agency spokesperson.

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The settlement addresses 33 notices of violations Tesla has received since 2015. Violations included installing or modifying equipment without the appropriate permits, exceeding the plant's permitted emissions, failing to keep records, and failing to report information to the agency in a timely manner.

Tesla is now in full compliance with regulations, the agency said. As part of the settlement, Tesla will be required to implement a "comprehensive environmental management system, which will track all applicable environmental requirements and ensure that the company's managers are trained on what is needed to comply with them," the air district said in a statement.

In April, the US Environmental Protection Agency accused Tesla of failing to report emissions generated by its car-coating operations. During the pandemic, Tesla CEO Elon Musk has sparred with local officials over public-health measures that forced its factory to close down temporarily.

Tesla did not respond to a request for comment.