Tesla uses new Texas law to avoid Austin's environmental regulations
The company's ability to deannex from the city comes after Senate Bill 2038 passed last year.
TRAVIS COUNTY, Texas — A petition by Tesla to release nearly 2,100 acres of land from Austin's extraterritorial jurisdiction, or ETJ, has been approved.
But many are concerned because Giga Texas will no longer have to follow Austin's environmental regulations that they've been under for the last four years. The city's regulations included standards on water and air quality.
"We're always concerned about being down water and downwind of anything that happens over there," Richard Franklin, a resident of one of the closest neighborhoods to the gigafactory, said.
How can Tesla deannex from the city?
Texas lawmakers passed Senate Bill 2038 this past session, that allows cities to release land on the outskirts of the city's boundaries if they meet certain requirements. One of those requirements is acquiring a majority of the landowners in the area to sign off on the petition to deannex.
But several homeowners KVUE spoke with near the factory said they haven't heard anything from Tesla, and they don't like the idea of the deannexation.
'I'm a homeowner, and I'm on the first street they would have had to come to," Franklin said. "We're the closest there is to the Tesla land. That land sits right here behind us."
Franklin, a resident of the ETJ that Giga Texas is in, said he prefers the city's regulations over the unclear regulations of Travis County. Austin City Councilmember Vanessa Fuentes –who represents District 2, the area that borders the Gigafactory – also said the city should be the one regulating companies like Tesla.
"As local council members, we know the unique needs of our community," Fuentes said. "Let us provide the safety and standards for the communities that we have been elected to represent."
Since Tesla is one of the top five largest water consumers in the Austin area, Fuentes thinks the company should be subject to the city's strong environmental regulations. She feels SB 2038 strips the city of its authority at the local level.
"[When] we have the state Legislature passing legislation that makes it easier for companies like Tesla to opt out of our own regulation, it's going to have consequences," Fuentes said. "It's going to have impacts on our communities."
Fuentes said other cities like Hutto and Lockhart have filed lawsuits against SB 2038.
What's next?
Fuentes said the city has been in talks with county commissioners about what exactly the county's regulations are and how Tesla would have to comply with them.
But until then, many questions remain about what Tesla will be allowed to do.