Regulators in Nevada have accused Elon Musk’s Boring Company of breaching environmental regulations nearly 800 times over the past two years while digging a network of tunnels in Las Vegas for a Tesla-based “people mover.”
The Nevada Department of Environmental Protection (NDEP) has issued a cease-and-desist order against The Boring Company for recurring violations of a settlement agreement that followed a fine five years ago for illegally discharging groundwater into storm drains. A letter from September 22, obtained by Citycast Las Vegas and ProPublica, cites around 100 new alleged breaches of agreements designed to ensure compliance with state water pollution laws.
Some of the violations pointed out by state inspectors included starting excavation without the necessary permits, discharging untreated water onto city streets, spilling mud from trucks, and not hiring an independent environmental manager to regularly check the construction site. Overall, regulators noted 689 missed inspections along with 100 new violations.
Following a 2022 settlement, NDEP could have imposed fines on The Boring Company exceeding $3 million, with additional penalties possible. However, given the “unusual number of violations,” the regulator opted to reduce the total fine to $242,800. Notably, the agency decided to set a $10,000 fine for each of the company’s 11 permits, even though most potential fines were connected to suspected inspection failures.
A spokesperson for the state mentioned that The Boring Company is contesting the violation notification. No penalty payments are mandatory until the dispute resolution process is resolved. In the correspondence, NDEP reminded the company of its authority to instruct TBC to cease operations under the existing contract.
This is not the first instance of The Boring Company facing claims of regulatory infractions since starting the Las Vegas Loop project in 2019. The project, which employs driver-operated Teslas for transportation through the tunnels, has expanded from an initial 0.8-mile stretch to a projected 108 miles of tunnels and 104 stations throughout the Las Vegas Valley. It is being developed in collaboration with the Las Vegas Tourism Authority (LVCVA).
As a privately funded initiative that doesn’t receive federal support, the Loop is exempt from various government review processes and environmental assessments. Still, obtaining a state permit is essential to prevent environmental contamination and protect local water sources. The company has previously faced permit and water pollution allegations in 2019, 2021, 2022, and 2023.
Moreover, worker safety concerns have arisen during the project. Reports indicate that the company was fined over $112,000 by the Nevada Occupational Safety and Health Administration in late 2023 after workers raised issues about “ankle-deep” water in the tunnels, mud spills, and chemical burns due to waste generated during tunneling. The Boring Company is also contesting these claims.
