No, my argument is that the state is the right level of government at which to regulate the environment. As we see here, most states have the power to abrogate city regulations, to dissolve and combine cities, and so forth. If the state of Texas permits Tesla's battery factory to dump waste into rivers, the state should fix that in state law.

There is not an analogy here between states of the nation and cities of the states. In the federal system, states have all the powers. Within the state, states also have all the powers.