Industry Topics for Hazardous Substances (Waste) Fee

Definitions

Below are definitions for the hazardous waste programs.

RCRA and non-RCRA Hazardous Waste

The Resource Conservation Recovery Act (RCRA) is a federal statute which regulates facilities that treat, store, and/or dispose of hazardous waste. All RCRA hazardous wastes are identified in Part 261 of Title 40 of the Code of Federal Regulations and Appendices.

Non-RCRA Hazardous Wastes are considered those wastes which are regulated in California, other than the federally regulated RCRA hazardous wastes.

Uniform Hazardous Waste Manifest

A Uniform Hazardous Waste Manifest is the shipping document or bill of lading that travels with the hazardous waste from point of generation, through transportation, to the final treatment, storage, or disposal facility. It contains information about the type and quantity of hazardous waste and identifies the generator and location from where it was removed, the hazardous waste transporter, and the treatment, storage, and/or disposal facility. For more information on hazardous waste manifests, visit the Department of Toxic Substances Control website.

Required Registration with other Agencies

The following hazardous waste programs are required to register with other agencies:

  • Disposal Fee
  • Generation and Handling Fee
  • Facility Fee

Treatment, storage, and disposal facilities must obtain either a state or federal hazardous waste ID number as well as a hazardous waste facility permit (HSC section 25205.2) or a grant of authorization from the Department of Toxic Substances Control (DTSC).

Additionally, anyone who generates, transports, offers for transport, treats, stores, or disposes of hazardous waste generally must have a hazardous waste ID number. A hazardous waste ID number is used to identify the hazardous waste generator, transporter, and facility that handles hazardous waste.

Visit the sites below for more information about other state, federal, and local taxing and licensing information:

You may also want to consult with a tax professional for assistance on other agency requirements.

Visit DTSC's website for more information on managing hazardous waste and manifesting.

Status of Environmental Protection Agency (EPA) ID

You may check the status of the issuance of your new hazardous waste ID number for the programs below:

  • Disposal Fee
  • Facility Fee
  • Generation and Handling Fee

To check the status, you can do so by going to DTSC's Hazardous Waste Tracking System and clicking on the Reports tab. You can search your business name or site address and the report will show if you have a hazardous waste ID number. You can also look up other facility and manifest information by searching by hazardous waste ID number, address, or business name.

Refunds

Submit a Claim for Refund – File your claim for refund through our online services system. Log in using your username and password and select the account for which you want to claim a refund. Select the More link under the I Want To section then select the Submit a Claim for Refund link and follow the prompts.

Additional Return Filing Options - You may also file a claim for refund by filing either:

Claims for refund must be in writing, state the reason for overpayment, specify the period for which you made the overpayment, and the amount of the refund requested. Additional refund details can be found on our Filing Claims for Refund - Special Taxes and Fees webpage.

You may email the claim form to the Refund Team or mail it to:

California Department of Tax and Fee Administration
Appeals and Data Analysis Branch (MIC 33)
P.O. Box 942879
Sacramento, CA 94279-0033

Deadline to File a Claim for Refund

Be sure to file your claim for refund by the applicable deadline. If you do not file on time, we cannot consider your claim, even if you overpaid the surcharge. You must file a claim for refund by whichever of the following dates occurs last:

  • Three years after the due date of the return on which you overpaid the tax or fee.
  • Six months after the date you overpaid the tax or fee.
  • Six months after the date a determination (billing) became final.
  • Three years after CDTFA collected an involuntary payment, such as from a levy or lien.

If you have questions about your deadline to file a refund claim, contact our Customer Service Center at 1-800-400-7115 (CRS: 711) weekdays between 7:30 a.m. and 5:00 p.m., Pacific Time (except state holidays).

Update Account Information

You may update your business information with CDTFA for the following Hazardous Waste accounts:

  • Generation and Handling Fee
  • Environmental Fee

Update Business Information Online – Update your business information through our online services homepage. Login using your username and password and select the account for which you wish to update. Select the More link under the I Want To section. Then select the option you are requesting to update under Account Maintenance.

Additional Business Update Options – You may also notify us of any changes by:

Account information for the Disposal Fee and Facility Fee is maintained by DTSC. To make changes to your Disposal or Facility Fee account information, please contact DTSC at 1-916-445-1664.

Record Keeping

Records must be retained for at least four years from the time the hazardous waste fee is due unless we authorize you in writing to destroy them sooner.

For additional information regarding record retention, please view Regulation 4901.

General Exemptions and Exclusions

Department of Toxic Substances Control (DTSC) is the agency that regulates hazardous waste in California and has the authority to determine if any waste meets the below listed exemptions. Below is a summary of exemptions and exclusions for the various hazardous waste programs.

Disposal Fee

The hazardous waste disposal fee ended on June 30, 2022 (Senate Bill 158; Stats. 2021, ch.73).

Hazardous waste disposal fees do not apply to any of the following:

  • Hazardous waste that results when a government agency, or its contractor, removes or remedies a release of hazardous waste in the state caused by another person.
  • Hazardous waste generated or disposed of by a public agency operating a household hazardous waste collection facility in the state pursuant to Health and Safety Code (HSC), Division 20, Chapter 6.5, Article 10.8, commencing with section 25218, including, hazardous waste received from conditionally exempt small quantity commercial generators.
  • Hazardous waste generated or disposed of by local vector control agencies that have entered into a cooperative agreement pursuant to HSC section 116180 or by county agricultural commissioners, if the hazardous waste resulted from their control or regulatory activities and if they comply with the requirements of this chapter and regulations adopted.
  • Hazardous waste disposed of, or submitted for disposal or treatment, which is discovered and separated from solid waste as part of a load checking program.
  • Hazardous waste disposed of by any person who acquires land for the sole purpose of owner-occupied single-family residential use, and who acquires that land without actual or constructive notice or knowledge that there is a tank containing hazardous waste on or under that property, if the waste is disposed in connection with the removal of the tank.

Environmental Fee

Businesses or organizations with less than the number of qualifying employees who have worked in California are not subject to the Hazardous Waste Environmental Fee. For periods prior to 2022, the qualifying number of employees is 50 or more employees that have worked more than 500 hours during the calendar year. Starting January 1, 2022, the qualifying number of employees is 100 or more employees that have worked more than 500 hours during the calendar year. The following organizations are also exempt:

  • Private households (Standard Industrial Classification (SIC) code major group 88).
  • Nonprofit residential care facilities SIC code 8361 and starting January 1, 2022, North American Industry Classification System (NAICS) codes 623220, 623312, and 623990.
  • Insurance companies that pay a tax on gross premiums in lieu of all other California taxes and licenses.
  • Banks that pay a tax on net income in lieu of all other California taxes and licenses.
  • Non-profit credit unions.
  • U.S. Government agencies and instrumentalities.

Facility Fee

Hazardous waste facility fees do not apply to the following:

  • Facilities issued a variance by DTSC from the requirement of obtaining a hazardous waste facilities permit or grant of interim status. (HSC section 25205.2).
  • Treatment facilities engaging in treatment exclusively to accomplish a removal, or remedial action or a corrective action, in accordance with an order issued by the U.S. Environmental Protection Agency or an order issued by DTSC pursuant to HSC section 25187 (order for corrective action) if the facility was put in operation solely for the purposes of complying with the order. (HSC section 25205.2)
  • Metal shredding facilities paying an annual fee. (HSC section 25150.84)
  • After July 1, 2022, generators conducting a treatment activity that is eligible for operation under a permit-by-rule pursuant to DTSC's regulations, a grant of conditional authorization, or a grant of conditional exemption, and who meet the criteria in HSC section 25204.7(b). However, generators are subject to the local Certified Unified Program Agencies (CUPA) fees, please check with your local CUPA. (HSC section 25204.7)
  • Eligible participants who submit banned, unregistered, or outdated agricultural wastes for collection in a qualifying program. (HSC section 25207.12)

The following exemption was repealed on January 1, 2022:

  • Facilities authorized by DTSC to clean and recycle excavated underground storage tanks. (HSC section 25205.12)

Facilities authorized under Permit by Rule, Conditional Authorization, or Conditional Exemption by the local Certified Unified Program Agencies (CUPA) and have paid the local CUPA fees, are exempt from the facility fee administered by CDTFA and imposed under HSC section 25205.2. (HSC section 25404.5)

On and after July 1, 2022, the following facilities are subject to permitting under their local CUPA and are exempt from facility fee administered by CDTFA and imposed under HSC section 25205.2. (HSC section 25205.3 inoperative 7/1/22)

  • A facility that has been issued a permit for the purpose of storing hazardous waste onsite, and whose permit has expired, if all of the following has occurred:
    • The facility has received no waste from offsite since the permit expired.
    • The owner or operator gave DTSC timely notification of intent to close the facility, pursuant to regulations adopted by DTSC.
    • At least 90 days have elapsed since the owner or operator gave DTSC that notification.
    • DTSC did not complete its review of the closure plan within 90 days of receiving the notification.
  • A facility used solely for processing or storage of hazardous waste where a public agency or contractor remedies a release of hazardous waste caused by another person.
  • The portion of a solid waste facility used for segregation, handling, and storage of hazardous waste separated from solid waste loads received by the facility.
  • Any facility operated by a local government agency, or by any person operating a hazardous waste collection program under an agreement with a public agency.
  • Any household hazardous waste collection facility.

Generation and Handling Fee

The hazardous waste generation and handling fee does not apply to:

  • Waste that is generated, recycled, and reused onsite and is not transferred offsite. (HSC section 25205.5(b)(1).)
  • Aqueous waste treated in a treatment unit operating, or which subsequently operates, pursuant to a permit-by-rule, or pursuant to HSC section 25200.3 or 25201.5. However, hazardous waste generated by a treatment unit treating waste pursuant to a permit-by-rule, by a unit which subsequently obtains a permit-by-rule, or other authorization pursuant to HSC section 25200.3 or 25201.5 is hazardous waste for purposes of this section and is subject to the hazardous waste generation and handling fee. (HSC section 25205.5(b)(2).)
  • Hazardous waste that results when a government agency, or its contractor, removes or remedies a release of hazardous waste in the state caused by another person. (25174.8(a)(1)(A).) However, a person responsible for a release of hazardous waste that has been removed or remedied by a governmental agency, or its contractor, shall pay the fee.
  • Hazardous waste generated or disposed of by a public agency operating a household hazardous waste collection facility in California pursuant to HSC sections 25100-25258.2, including, but not limited to, hazardous waste received from conditionally exempt small quantity commercial generators. The fee exemption applies even if the waste is transferred, consolidated, or bulked and subsequently included on a manifest along with other nonexempt hazardous wastes. (HSC sections 25174.8(a)(2)&(b).)
  • Hazardous waste disposed of, or submitted for disposal or treatment, which is discovered and separated from solid waste as part of a load checking program. (HSC section 25174.8(a)(3).)
  • Hazardous waste that is used oil collected from the public and generated by a used oil collection center certified by CalRecycle (Department of Resources Recycling and Recovery). The fee exemption applies even if the waste is transferred, consolidated, or bulked and subsequently included on a manifest along with other nonexempt hazardous wastes. (HSC sections 25174.8(a)(4)&(b).)
  • Hazardous waste generated in a natural disaster HSC section 25205.5.1;.

The following exemptions/exclusions to the generator fee were repealed on January 1, 2022:

  • Used motor oil removed from a motor vehicle that is recycled by a recycler permitted by DTSC. (HSC section 25250.24(b).)
  • Hazardous waste generated or disposed of by local vector control agencies that have entered into a cooperative agreement pursuant to HSC section 116180 or by county agricultural commissioners, if the hazardous wastes result from their control or regulatory activities and if they comply with the requirements of the HSC and regulations adopted. (HSC section 25174.7(a)(3).)
  • Any person who acquires land for the sole purpose of owner-occupied single-family residential use, and who acquires that land without actual or constructive notice or knowledge that there is a tank containing hazardous waste on or under that property, is exempt from the fees imposed pursuant to HSC section 25174.1, and 25205.5, in connection with the removal of the tank. (HSC section 25174.7(c).)
  • Facility operators who generate five or more tons of hazardous waste at any site during a calendar year and who have paid a hazardous waste facility fee pursuant to HSC section 25205.2 or received a credit under HSC section 25205.2(i) are exempt from the hazardous waste generator fee. (HSC section 25205.5)

Environmental Fee Topics

Below are industry topics for the Environmental Fee Program.

Parent Corporations/Organization Requirements

Parent corporations/organizations should contact their wholly-owned subsidiaries to find out if they are registered with CDTFA. All parent and subsidiary organizations must separately register and file returns for the Hazardous Waste Environmental Fee.

Professional Employment Organizations (PEO) are Employers

Both DTSC and the Employment Development Department (EDD) recognize Professional Employment Organizations (PEOs) as employers. PEOs, such as a temporary employment agency, are responsible for paying the Hazardous Waste Environmental Fee for any employees reported under their EDD number.

Payroll Agencies

Payroll Agencies must separately apply for third-party access to each of their client's accounts in order to report and pay the Environmental Fee on behalf of their clients. Access may be requested through our online services system.

Visit our Tutorials page to view the video tutorial How to Create a Username and Password For a Third Party and Request Access to an Account.

Standard Industrial Classification (SIC) codes

Standard Industrial Classification (SIC) codes have been established by the U.S. Department of Labor and are used to designate the activities of business operations. Only organizations in specific SIC codes are exempt from the hazardous waste environmental fee (HSC section 25205.6).

Determining number of employees

The number of qualifying employees is determined by counting the number of employees who are employed in California more than 500 hours during a calendar year. This includes vacation, sick leave, and holidays for which an employee is paid during their employment.

If a person terminates employment, vacation, sick leave, holidays or other severance pay are not included when calculating the number of hours.

Paid Travel Time

An employee's paid travel time should be included in the calculation of the 500-hour threshold that an employee is employed.

For example, travel time on an airplane should be included in the calculation of hours paid if the employee is paid for that time.

No prorating for hours worked in-state and out-of-state

If the organization reports employees to EDD in California, the hours worked in California should be calculated based on the total number of hours paid by the organization, regardless of the number of hours the employee works in California or out-of-state. The number of hours should not be prorated between in-state and out-of-state to determine hours worked.

If an employee is reported to another state's EDD, that person is not considered employed in California regardless of the number of hours the employee actually works in this state.

Facility Fee Topics

Below is industry topic for the Facility Fee Program.

Household hazardous waste collection facilities

The exclusion for household hazardous waste collection facility was made inoperative on July 1, 2022. However, household hazardous waste collection facilities that are authorized under Permit by Rule, Conditional Authorization, or Conditional Exemption by the local Certified Unified Program Agencies (CUPA), are not subject to the facility fee if they paid the local CUPA fees.

Generation and Handling Fee Topics

Below are industry topics for the Generation and Handling Fee Program.

Facility operators are responsible for the generation and handling fee

Starting January 1, 2022, facility operators who generate five or more tons of hazardous waste at any site during a calendar year are subject to the hazardous waste generation and handling fee, even if they have paid a hazardous waste facility fee pursuant to HSC section 25205.2 or received a credit under HSC section 25205.2(i). (HSC section 25205.5)

However, a facility operator that is issued a hazardous waste facility permit from DTSC and that pays the annual facility fee, as specified in HSC section 25205.2, may deduct, from the amount of hazardous waste subject to the generation and handling fee, the amount of waste that is stored, bulked, or transferred from that facility to another authorized facility for management according to HSC section 25205.5(a)(4).

Prior to January 1, 2022, facility operators who generated five or more tons of hazardous waste at any site during a calendar year and who had paid a hazardous waste facility fee prior to January 1, 2022, were exempt from the hazardous waste generator fee.

Imported Waste into California

From January 1, 1996 through December 31, 2021, any person transporting, importing, or receiving non-RCRA hazardous waste imported into California for purposes of treatment, recycling, or disposal is exempt from the payment of the generator fee imposed pursuant to HSC section 25205.5.

On and after January 1, 2022, for hazardous waste imported into California for purposes of treatment, recycling, or disposal, the operator of the facility receiving the imported hazardous waste shall register for a generation and handling fee account (in addition to a facility fee account) and pay the applicable generation and handling fee. Please see HSC section 25205.22 for details.

Hazardous waste generator fee paid to local agencies (CUPA)

Any hazardous waste generator fee paid to your local agency (city or county), as part of the Certified Unified Program Agencies (CUPA), is a separate fee from the state hazardous waste generator fee or the generation and handling fee. If you generate hazardous waste in an area that has a CUPA fee, you are responsible for and must pay both the local hazardous waste generator fee and the state hazardous waste generator fee/generation and handling fee. For more information, visit the Department of Toxic Substances Control's CUPA webpage.

Consolidated manifesting (Milk Run) haulers and transporters

Consolidated manifesting, formerly known as modified manifesting or milk running, allows certain registered hazardous waste transporters to combine specified wastes from multiple eligible generators on a single manifest, rather than using a separate manifest from each generator. For more information on consolidated manifesting, please see HSC section 25160.2(c) and visit the Department of Toxic Substances Control's website.

Hazardous waste identification numbers (EPA ID numbers)

The Department of Toxic Substances Control (DTSC) issues state EPA ID Numbers for generators, transporters, and treatment, storage, and disposal facilities that handle hazardous wastes not regulated under the Resource Conservation and Recovery Act (RCRA). For more information on state EPA ID numbers or federal EPA ID numbers see DTSC's website on Applying for a Hazardous Waste Identification Number or call 1-800-618-6942 for more information.

Treated wood waste (TWW)

Treated wood waste (TWW) is considered to be hazardous waste for the proposes of the hazardous waste generation and handling fee and should be included in the calculation of total tonnage of waste subject to the fee, regardless of whether the waste is shipped using a hazardous waste manifest or other shipping document.

All TWW handlers and generators that generate more than 10,000 pounds (5 tons) in any calendar year shall obtain an EPA number from DTSC and register with CDTFA for a generation and handling fee account. Please see DTSC's website for more information on TWW.

Activity Fee

Effective September 13, 2016, DTSC is responsible for assessing and billing the Hazardous Waste Activity Fees (Senate Bill 839).

Activity fees are assessed for permit applications, permit modifications, renewals of permits, requests for variance or site mitigation assessments or other activities, as notified by DTSC.