Hazardous Waste Generation and Handling Fee Return

The California Department of Tax and Fee Administration (CDTFA) collects the Hazardous Waste Generation and Handling Fee on behalf of the California Department of Toxic Substance Control (DTSC), according to the requirements of the California Hazardous Substances Tax Law.

Effective January 1, 2022, a new law repeals the Hazardous Waste Generator Fee and replaces it with a new Generation and Handling Fee (Senate Bill 158; Stats. 2021, ch.73). The generation and handling fee is imposed as a flat rate per ton or fraction of a ton on generators of hazardous waste for each generator site that generates five or more tons of hazardous waste at a site in California within a calendar year. This includes most recycled waste, treated wood waste, imported non-RCRA (Resource Conservation Recovery Act) waste, and waste sent outside California for disposal. The per ton fee is determined by the total tonnage of waste generated per site. The fee also applies to facility operators that generate five or more tons of hazardous waste who pay the facility fee. (Health and Safety Code (HSC) section 25205.5.)

Effective July 2, 2024, Senate Bill 156 (Stats. 2024, ch 72) made several changes to the Hazardous Waste Generation and Handling Fee Program, including new penalties, a revised return reporting period, and clarification of exemptions.

Note: Prior to January 1, 2022, the Hazardous Waste Generator Fee was imposed on anyone who generated five or more tons of hazardous waste on a tiered category basis.

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Federal Liability for the Fee

According to 42 U.S.C. section 6961, federal departments, instrumentalities, and agencies are subject to state regulations concerning disposal or management of hazardous waste including the payment of the Hazardous Waste Generation and Handling Fee. However, the federal government is not liable for interest imposed by the California Revenue and Taxation Code.

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Generation and Handling Fee Exemptions and Exclusions

The hazardous waste generation and handling fee does not apply to the following hazardous waste generated on or after January 1, 2023:

• Hazardous waste that results when a governmental agency takes a removal, remedial, or corrective action to address a release of hazardous substance caused by a person other than the governmental agency that takes the action if both of the following conditions are met:
  • The governmental agency took immediate action necessary to remove or remedy an imminent and substantial threat of a release of hazardous substance.
  • The governmental agency files an annual return with us.
  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 section 25174.8.1[a] [1]&[b])
• Hazardous wastes generated or disposed of by a public agency resulting from the operation of a household hazardous waste collection facility in California, 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 25174.8.1[a][2]&[b])
• Hazardous waste disposed of, or submitted for disposal or treatment, that is generated by any person and that is discovered and separated from solid waste as part of a load checking program. 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 section 25174.8.1[a][1]&[b])
• Hazardous waste that is “household do-it-yourselfer used oil,” as defined in California Code of Regulations, title 22, Section 66279.1, and is accepted from the public at no charge as provided in the Public Resources Code section 48660 (b)(1) by a used oil collection center certified by CalRecycle (California 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 25174.8.1[a][4]&[b])
• Hazardous waste that is recycled and used onsite and is not transferred offsite. (HSC sections 25174.8.1[a][5]&[b])
• Hazardous waste that is generated onsite and meets both of the following conditions:
  • (A) Is treated onsite in a treatment unit authorized by DTSC, or the CUPA, to treat hazardous waste pursuant to the applicable hazardous waste facilities permit requirements.
  • (B) Becomes nonhazardous as a result of that treatment.
  The fee exemption applies even if the waste is transferred, consolidated, or bulked and subsequently included on a manifest with other nonexempt hazardous wastes. (HSC section 25174.8.1[a][6]&[b])
• Universal waste managed in accordance with the universal waste management requirements in Chapter 23 (Commencing with Section 66273.1) of Division 4.5 of Title 22 of the California Code of Regulations. The fee exemption applies even if the waste is transferred, consolidated, or bulked and subsequently included on a manifest with other nonexempt hazardous wastes. (HSC section 25174.8.1[a][7]&[b])
• Hazardous waste generated in a natural disaster. (HSC section 25205.5.1)

For exemptions and exclusions that apply to hazardous waste generated prior to January 1, 2023, please see Industry Topics on our Hazardous Substances (Waste) Fee Guide. For additional industry specific information, please see Generation and Handling Fee Topics on our Hazardous Substances (Waste) Fee Guide.

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Filing Requirements

Under Revenue and Taxation Code section 43152.7, every site that generates hazardous waste is required to electronically file a Hazardous Waste Generation and Handling Fee return with a remittance payable to the California Department of Tax and Fee Administration.

You are required to pay your generation and handling fee for each reporting period in two equal payments based on the waste generated in the calendar year prior to the current reporting period, as shown below.

• Prepayment — Due the last day of November each fiscal year. The prepayment must be equal to 50 percent of the total amount of fee due.
• Final Payment with Return — Due last day of February of the same fiscal year. The final payment is the remaining 50 percent of the fee due.

For example:

Notes

1. If the due date falls on a Saturday, Sunday, or state holiday, returns and/or prepayments postmarked or received by the next business day will be considered timely

For additional information on filing due dates for Special Taxes and Fees, please refer to Important Dates for Other Taxes and Fees.

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Penalty and Interest

For any payments and returns that become due on and after November 30, 2024, we will assess escalating penalties if you do not file your return timely and pay the generation and handling fee timely, including your prepayment. Interest also applies to late fee payments.

The escalating penalties are calculated based on the following schedule and capped at 100 percent of the fee due.

For payments and returns due on and after November 30, 2024, we will also apply a 300 percent penalty if we determine that you willfully or knowingly provided incorrect information, or withheld information, on your return that resulted in deficient payment of the generation and handling fee.

The escalating penalties are in addition to any other penalties imposed under the Hazardous Substances Tax Law, including the 300 percent penalty for willfully or knowingly providing incorrect information or withholding information on your return.

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Report waste generated in the calendar year prior to this return reporting period.

Do any sites include non-manifested hazardous waste?

If the sites listed include non-manifested hazardous waste for the calendar year prior to this return reporting period, select Yes.

If the sites do not include non-manifested hazardous waste for the calendar year prior to this return reporting period, select No.

Do you have additional hazardous waste generation and handling sites not listed?

If you have additional hazardous waste generation sites (unregistered sites) that are not listed, select Yes.

If you do not have additional sites, select No.

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Generation and Handling Fee Schedule (Schedule G)

Report waste generated in the calendar year prior to this return reporting period.

A list of sites registered to your account is displayed.

Gross Tonnage of Waste Generated. Enter the total gross tonnage of waste generated at each site for the calendar year prior to this return reporting period. For example, for the return due February 28, 2025, gross tonnage must be based on waste generated in calendar year 2023. Gross tonnage includes exempt waste, non-manifested wood waste, and universal waste.

Last Generation Date. If you are no longer generating hazardous waste, enter the date you last generated hazardous waste at the site listed. You may need to file a final return to report waste generated through the closeout date.

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Report waste generated in the calendar year prior to this return reporting period.

To register new Hazardous Waste Generation and Handling Fee site(s) to your account, select the Add a Site hyperlink and enter the requested information. Report the fees due for waste generated in the calendar year prior to this return reporting period.

Site EPA Number. Enter the Environmental Protection Agency (EPA) number associated to the site being added. The EPA number must be 12 characters long and start with a valid prefix ending with numbers. Valid prefixes: CAR, CA, CAD, CAT, CAP, CAL, CAC, CAH, CAI, CAE, CAF, CAS, CLU, CAX, CA99.

Street. Enter the site's street number and street name.

Street 2. If you need additional space, enter the remaining street information in this field .

Unit Type. If applicable, select the correct unit type under the drop-down menu.

Unit. If applicable, enter the unit number.

City. Enter the city in which the site is located.

State. Select the state in which the site is located.

Zip. Enter the site's five (5) digit ZIP code.

Validate Address. Select the Validate Address button to verify the inputted address. Once the system verifies the address, select the Save button.

Gross Tonnage of Waste Generated. Enter the total gross tonnage of waste generated at each site for the calendar year prior to this return reporting period. For example, for the return due February 28, 2025, gross tonnage must be based on waste generated in calendar year 2023. Gross tonnage includes exempt waste, non-manifested wood waste, and universal waste.

Do you still generate hazardous waste at this location? The system is defaulted to Yes, meaning you are generating hazardous waste at this location.

If you are no longer generating hazardous waste at this location, select No and enter the date you last generated hazardous waste in the Last Generation Date field.

Once all the required information is entered, select the Add button. To add another site, select the Add a Site hyperlink. Once all additional sites are entered, select Next to continue.

Do you have any exemptions to report?

If you have any exemptions to report, select Yes.

If you do not have any exemptions to report, select No.

Exemptions Schedule

Report your hazardous waste exemptions in the applicable fields of the Generation and Handling Fee — Exemptions Schedule table.

Government Cleanup Exemption. Enter the total tonnage of hazardous waste that resulted when a governmental agency took a removal, remedial, or corrective action to address a release of hazardous substance caused by a person other than the governmental agency that took the action of both of the following conditions were met:

• The governmental agency took immediate action necessary to remove or remedy an imminent and substantial threat of a release of hazardous substance.
• The governmental agency files an annual return with us.

The fee exemption applies even if the waste is transferred, consolidated, or bulked and included on a manifest with other nonexempt hazardous wastes. (HSC section 25174.8.1[a][1]&[b])

Note:A “responsible party” as defined in HSC section 78145, or a person subject to an order as described in HSC section 25187, shall pay the fee for the hazardous waste generated from the governmental agency's removal, remedial, or corrective action. (HSC section 25174.8.1[a][1][B])

Natural Disaster Exemption. Enter the total tonnage of hazardous waste generated as a result of a natural disaster, and identified in a state of emergency proclaimed by the Governor and that meets all the conditions stated in HSC section 25205.5.1.

Household Waste Exemptions. Enter the total tonnage of hazardous waste generated or disposed of by a public agency operating a household hazardous waste collection facility in California, 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 25174.8.1[a][2]&[b])

Used Oil Exemption. Enter the total tonnage of hazardous waste that is “household do-it-yourselfer used oil” as defined in section 66279.1 of Title 22 of the California Code of Regulations, and is accepted from the public at no charge as provided in the Public Resources Code section 48660 (b)(1) by a used oil collection center certified by the California Department of Resources Recycling and Recovery (CalRecycle). The fee exemption applies even if the waste was transferred, consolidated, or bulked and subsequently included on a manifest along with other nonexempt hazardous wastes. (HSC sections 25174.8.1[a][4]&[b])

Other Exemption. Enter the total tonnage of hazardous waste that is exempt from the hazardous waste generation and handling fee that was not previously claimed as part of another exemption.

Other Exemption Description. If tonnage was entered in the Other Exemption field, enter a description of the hazardous waste that is exempt from the fee.

Total Exemptions. The total tonnage of claimed exemptions. The system will automatically calculate this field.

Report waste generated in the calendar year prior to this return reporting period.

Do any sites include non-manifested hazardous waste?

If registered and/or additional site(s) under the schedule include non-manifested hazardous waste for the calendar year prior to this return reporting period, make sure the Yes button is selected.

If the sites do not include non-manifested hazardous waste, make sure the No button is selected.

Please review the information you reported on Schedule G – Generation and Handling Fee Schedule. If you need to make changes, select the Previous button to return to previous screens. If the reported information is accurate, select the Next button to proceed.

Do you have any prepayment credits for the period other than what is displayed?

If you have any prepayment credits for the period other than what is displayed under Prepayment amount, select Yes to edit the field.

Prepayment amount. Enter the prepayment amount if different than what is displayed (if applicable).

If you do not have prepayment credits for the period other than what is displayed, select No.

• Hazardous Substances (Waste) Fee Guide
• Online Return Filing Tutorial