Tesla has leveraged a new Texas state law to exempt its Austin gigafactory from environmental regulations set by the city of Austin, as reported by the Austin Business Journal.
While Tesla’s Texas gigafactory is often associated with Austin, it is actually located just outside the city’s official borders, within Austin’s “extraterritorial jurisdiction” (ETJ). This area allows the city some control over development outside its limits, ensuring compatibility with future infrastructure if the city expands.
Last year, the Texas legislature passed SB 2038, enabling developments to easily remove themselves from ETJs. Earlier this year, Tesla filed a petition to exit Austin’s ETJ, which was approved, according to the Austin Business Journal.
The move exempts Tesla from Austin’s environmental regulations, particularly regarding water quality and flooding, crucial issues given the gigafactory’s location along the Colorado River. The site covers 2,100 acres and borders the river just after it passes through Austin’s center.
Tesla CEO Elon Musk initially touted the site as an “ecological paradise,” although this vision has yet to materialize. The company has, however, proposed a 120-acre public space along the river.
Regarding water management, Tesla is constructing a “Giga Water Loop” at the site, but details about its function remain undisclosed.
Water management has been contentious at other Tesla sites, such as its gigafactory in Grünheide, Germany, where concerns about water usage led to opposition from environmental groups and local residents.
In response, Tesla has worked to improve water management and replant trees to mitigate its impact on the surrounding forest. However, in Texas, Tesla’s exemption from environmental regulations raises concerns about water usage and discharge affecting the Colorado River.
Despite this exemption, Tesla has benefited from its proximity to Austin, with the city extending utility connections to the site during construction. Austin provided these services under the assumption that the site fell within its ETJ, a status that Tesla has now legally changed.
