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Elon Musk’s Boring Co. Accused of Nearly 800 Environmental Violations on Las Vegas Project
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Nevada state regulators have accused Elon Musk’s Boring Co. of violating environmental regulations nearly 800 times in the last two years as it digs a sprawling tunnel network beneath Las Vegas for its Tesla-powered “people mover.” The company’s alleged violations include starting to dig without approval, releasing untreated water onto city streets and spilling muck from its trucks, according to a new document obtained by City Cast Las Vegas and ProPublica.
The Sept. 22 cease-and-desist letter from the state Bureau of Water Pollution Control alleged repeated violations of a settlement agreement that the company had entered into after being fined five years ago for discharging groundwater into storm drains without a permit. That agreement, signed by a Boring executive in 2022, was intended to compel the company to comply with state water pollution laws.
Instead, state inspectors documented nearly 100 alleged new violations of the agreement. The letter also accuses the company of failing to hire an independent environmental manager to regularly inspect its construction sites. State regulators counted 689 missed inspections.
The Boring Co. is disputing the violation letter, a state spokesperson said.
The Nevada Division of Environmental Protection could have fined the company more than $3 million under the 2022 agreement, which allowed for daily penalties to be assessed. But regulators knocked down the total penalty to $242,800. For example, the bulk of the total possible fine was linked to the alleged missed inspections, but the agency chose to levy just a $10,000 penalty for each of the company’s 11 permits.
“Given the extraordinary number of violations, NDEP has decided to exercise its discretion to reduce the penalty to two $5,000 violations per permit, which it believes offers a reasonable penalty that will still serve to deter future non-compliance conduct,” regulators wrote in the letter.
Payment of the penalty isn’t required until after the dispute resolution process is complete, a state spokesperson said. In the letter, the agency reminded the company that it “reserves the right to direct TBC to cease and desist construction activities” under the agreement.
In the past, Musk has espoused paying penalties rather than waiting for approvals as a way of doing business.
“Environmental regulations are, in my view, largely terrible,” he said at an event with the libertarian Cato Institute last year. “You have to get permission in advance, as opposed to, say, paying a penalty if you do something wrong, which I think would be much more effective.”
Neither Musk nor Boring responded to requests for comment for this story.
The Sept. 22 letter documents the latest in a string of alleged violations of state and local regulations by The Boring Co. since it began construction in 2019 of the Loop project, which uses driver-operated Teslas to move people through the tunnels. The project, initially a 0.8-mile underground route connecting the sections of the Las Vegas Convention and Visitors Authority campus to each other, has grown to a planned 68 miles of tunnels and 104 stations across the Las Vegas Valley. It’s carried out in partnership with the LVCVA, the tourism board best known for the “What Happens Here, Stays Here” slogan.
Boring uses a machine known as Prufrock to dig the 12-foot-diameter tunnels, applying chemical accelerants as part of the process. For each foot the company bores, it removes about 6 cubic yards of soil along with any groundwater, according to a company document prepared for state environmental officials.
Because it is privately funded and receives no federal money, the project is exempt from many exhaustive governmental vetting and environmental analysis requirements. But it is required to obtain state permits to ensure the waste does not contaminate the environment or local water sources.
A January story by ProPublica and City Cast Las Vegas documented how the company worked to escape county and state oversight requirements by arguing its project didn’t fit under existing regulations and promising to hold itself accountable through independent audits — all while being cited for permitting and water pollution violations in 2019, 2021, 2022 and 2023. Last year, the company successfully lobbied to be exempted from holding a county “amusement and transportation system” permit, arguing instead for an oversight plan that removed multiple layers of inspection.
Workers have complained of chemical burns from the waste material generated by the tunneling process, and firefighters must decontaminate their equipment after conducting rescues from the project sites. The company was fined more than $112,000 by Nevada’s Occupational Safety and Health Administration in late 2023 after workers complained of “ankle-deep” water in the tunnels, muck spills and burns. The Boring Co. has contested the violations. Just last month, a construction worker suffered a “crush injury” after being pinned between two 4,000-foot pipes, according to police records. Firefighters used a crane to extract him from the tunnel opening.
After ProPublica and City Cast Las Vegas published their January story, both the CEO and the chairman of the LVCVA board criticized the reporting, arguing the project is well-regulated. As an example, LVCVA CEO Steve Hill cited the delayed opening of a Loop station by local officials who were concerned that fire safety requirements weren’t adequate. Board chair Jim Gibson, who is also a Clark County commissioner, agreed the project is appropriately regulated.
“We wouldn’t have given approvals if we determined things weren’t the way they ought to be and what it needs to be for public safety reasons,” Gibson said, according to the Las Vegas Review Journal. “Our sense is we’ve done what we need to do to protect the public.”
Asked for a response to the new proposed fines, an LVCVA spokesperson said, “We won’t be participating in this story.”
The repeated allegations that the company is violating regulations — including the bespoke regulatory arrangement agreed to by the company — indicates that officials aren’t keeping the public safe, said Ben Leffel, an assistant public policy professor at the University of Nevada, Las Vegas.
“Not if they’re recommitting almost the exact violation,” Leffel said.
Leffel questioned whether a $250,000 penalty would be significant enough to change operations at The Boring Co., which was valued at $7 billion in 2023. Studies show that fines that don’t put a significant dent in a company’s profit don’t deter companies from future violations, Leffel said.
A state spokesperson disagreed that regulators aren’t keeping the public safe and said the agency believes its penalties will deter “future non-compliance.”
“NDEP is actively monitoring and inspecting the projects,” the spokesperson said.
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In just over eight months, the second Trump administration has made a rapid succession of political hires and policy decisions at the U.S. Department of Education that could spur profound changes in the way schools are operated and children learn.
After years of advocating to expand private and religious education and homeschooling, using tax dollars, a cadre of conservative activists is in a position to push forward its agenda. Some of its policies are already undermining public schools, which it has denigrated as unsuccessful and out of step with Christian values, a ProPublica investigation found.
In many communities, public schools are valued hubs for community life and services, including meals, socializing and counseling. More than 80% of students are enrolled in traditional public schools, which must serve all children, including those with disabilities. The administration, however, views public schools as a monopoly that should be broken up.
“Millions of young Americans are trapped in failing schools, subjected to radical anti-American ideology,” Education Department Secretary Linda McMahon claimed immediately after taking office. She and others in the administration believe that progressive activists have led schools to focus too much on “woke” policies rather than on rigorous academic standards.
Agency officials and spokespeople declined to speak to ProPublica.
Here are five ways the Education Department under McMahon is creating profound change in public schools.
1. Encouraging an exodusMcMahon and President Donald Trump want to expand tax-funded school choice options, giving more families the financial means to leave public schools. Trump pushed Congress to pass, and signed into law, a new federal tax credit to finance the first national school voucher program, set to open to families on Jan. 1, 2027. The Education Department has also encouraged school districts to spend some federal money meant for disadvantaged students on services from private providers and on children from low-income families who live within district boundaries but attend private schools.
Public school leaders say they’ve already watched students transfer out to private and charter schools in recent years — and with them, they’ve lost essential per-pupil funding. They worry that voucher expansion will cause further damage to their budgets and threaten their survival.
Occasionally, McMahon has spoken positively of public schools — for example, praising some for literacy gains. But more often, and more emphatically, she portrays them as unsuccessful, as do her advisers.
Education Department adviser Lindsey Burke came from The Heritage Foundation, where she co-authored the education chapter of Project 2025, the policy playbook for the Trump administration. It calls for tax-funded education accounts so parents can customize their children’s schooling. Years ago, Burke said she hoped that one day “we will marvel at the fact that we once assigned children to government-run schools consigning the poorest to schools that were often failing and sometimes unsafe.”
2. Cutting federal fundingIn a move that affects public school students across the country, the department has slashed hundreds of millions of dollars in grant funding for a variety of programs, including for mental health professionals and for training and supporting new teachers. More cuts are likely.
The administration’s proposed education budget for fiscal 2026 calls for combining 18 existing grant programs — including funds for rural schools and homeless students — into a single $2 billion block grant to be allocated to states. That is about $4.5 billion less than if the grants survived alone. Overall, the Trump administration has proposed reducing federal spending on education by 15% in the 2026 budget. Congress has not passed a budget yet, and the government is shut down.
3. Injecting God into the classroomDepartment officials have decried what they view as liberal indoctrination in public schools — what one top leader describes as a “Marxist and anti-God and anti-family agenda.” They now are pursuing policies that align with conservative Christian values, including opposing protections for transgender students and restricting materials about sexuality. Early this year, the department notified schools it would follow Trump’s executive order stipulating that there are “two sexes, male and female.”
McMahon has made Meg Kilgannon, who advocates for more Christian leadership in school districts, a top adviser. Kilgannon has decried the removal of spirituality as a topic from classrooms, arguing that “if we’re not going to discuss our identity as Christians,” schools will push “racial identities” and “sexual identities” on students instead.
In a speech on Sept. 8 at the Museum of the Bible in Washington, D.C., Trump announced that the Education Department “will soon issue new guidance protecting the right to prayer in our public schools.” He said that the Bible is “an important part of the American story” and that he intends to “protect the Judeo-Christian principles of our founding, and we will protect them with vigor.”
4. Promoting curriculum choicesThe federal government historically has not dictated curriculum choices, and McMahon has stressed that she thinks what is taught in schools is best left to local communities. Yet the Education Department is prioritizing patriotic education, promoting civics lessons that present American history and the nation’s founding principles in an “inspiring” manner. History should portray an “ennobling characterization” of the country’s past, the department said. Critics contend that the administration’s aim is to present a sanitized version of history, downplaying bitter episodes, including racial oppression and sexism.
The department has directed states and districts to avoid material that could make white students feel “intrinsic guilt” based on the oppressive acts of past generations. McMahon also supported the rights of parents to pull their children out of classes they find objectionable, such as those involving books with gay characters or themes.
5. Weakening civil rights protectionsThe department is using its Office for Civil Rights to press public schools to drop programs and policies designed to help Black or Hispanic students. The office has launched investigations against school districts for teaching lessons on systemic racism, hosting empowerment gatherings for students of color and providing remedial help for Black youth, all of which the administration says discriminates against white students.
In addition, the department has repeatedly targeted school districts for allowing students who were born male but identify as female to play on girls sports teams and use bathrooms and locker rooms reserved for girls. In some instances, the department has issued or threatened sanctions, including the potential loss of federal funding and referral to the U.S. Department of Justice for further action.
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