Benzinga - by Anan Ashraf, Benzinga Editor.
Tesla is reportedly utilizing a new state law to exclude its Gigafactory in eastern Travis County from the environmental regulations of the city of Austin.
What Happened: The electric vehicle giant has managed to remove a vast 2,100-acre, including its factory, from the city’s extraterritorial jurisdiction, reported Austin Business Journal. The move was made possible by a new state law, Senate Bill 2038, which came into effect last September.
The legislation enables landowners on the outskirts of major cities to request the removal of their properties from the city’s jurisdiction, allowing them to develop with fewer restrictions. This law, which is being contested by some municipalities, was approved last year with strong support from developers and the business community.
The new law has sparked controversy, with over a dozen municipalities, including Hutto and Lockhart in the Austin area, challenging it in court. They argue that the law undermines their ability to regulate land they may one day annex into their city limits, and potentially endangers the health and safety of nearby citizens and the environment, the report noted.
Why It Matters: While Austin has not joined the lawsuit, city officials have acknowledged that releasing property from its extraterritorial jurisdiction has implications for current and future residents, the report said.
Tesla’s gigafactory in Texas covers 2,500 acres along the Colorado River with over 10 million square feet of factory floor. It is currently home to both Tesla’s best-selling Model Y as well as its latest offering- the Cybertruck.
The company is currently undertaking expansion efforts at the factory and adding new facilities.
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