Sometimes, technology moves faster than rules and regulations. For instance, in some parts of Kansas, shops must provide water troughs for horses. A more recently inanity is the requirement that electric vehicles receive an emissions "Certificate of Conformity" from the EPA to comply with the "Clean Air Act." And, while Kansan storekeepers have long been excused from abiding by the obviously obsolete ordinance, such is not the case for America's best known electric car maker, Tesla Motors.
In its Securities and Exchange Commission 10-Q filing for the quarter ending on the 30th of June, Tesla noted that expenses may be incurred from complying (or, in this case, not complying) with the myriad regulations that govern the activity of providing automobiles for sale to the public. As an example of such, it mentions being found in contravention of the requirement to have the aforementioned certificate for the vast majority of 2009. It had the necessary document in 2008. As a result, it and the EPA:
Ouch. While it may seem as if Tesla shouldn't need such documentation since its products don't even have a tailpipe, the fact that the company had the proper certification in '08 means it should have known better in '09. Live and learn, eh?...entered into an Administrative Settlement Agreement and Audit Policy Determination in which we agreed to pay a civil administrative penalty in the sum of $275,000...
[Source: Tesla Motors via EVTV]