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DTSC reports recovery in hazardous-waste fee receipts after emergency rulemaking; CBCI grants scaled back
Summary
DTSC told the budget subcommittee it identified causes of a shortfall in its new generation-and-handling hazardous-waste fee, implemented emergency regulations and increased outreach; the agency also outlined the Cleanup in Vulnerable Communities Initiative and said funding was reduced and rounds limited.
The Department of Toxic Substances Control (DTSC) briefed the Assembly Budget Subcommittee No. 4 on reforms to the newly consolidated generation-and-handling hazardous waste fee and on the state's Cleanup in Vulnerable Communities Initiative (CBCI), including the Equitable Community Revitalization Grants.
Director Catherine Butler said the 2021 fee reform (SB 158) consolidated prior fee streams into a per-ton generation-and-handling fee assessed to hazardous-waste generators. When the new fee took effect, revenues came in at roughly half the level projected because many generators underreported or underpaid and DTSC's data systems were not fully aligned with the new fee structure. The 2023—24 budget included a one-time loan to keep the account solvent while DTSC analyzed the shortfall.
Butler said DTSC identified late or missing payments, data challenges and inconsistent use of statutory exemptions as primary causes. DTSC implemented emergency regulations in January to clarify exemption review processes, increase penalties for late or missing payments and establish reporting requirements. Butler said early indicators are positive: since February, revenues were up about $19 million compared with the same point last year and the agency is optimistic the actions are reducing the shortfall.
Butler also updated the committee on CBCI, which originally was allocated $500 million but was reduced to about $231.5 million after budget adjustments and partial offset with greenhouse-gas reduction funds. DTSC said it awarded 58 assessment-and-cleanup grants in round one totaling about $88 million and 32 additional grants in a second round totaling roughly $43 million. Because of the funding reduction, DTSC will not run a planned third round and will instead apply lessons learned from CBCI to other cleanup programs.
Members asked for geographic detail on where CBCI grants flowed and for evidence of outcomes; DTSC said it would provide a breakdown of grants by county and program-specific deliverables, and noted the CBCI grants have yielded a higher share of projects aimed at affordable housing reuse than other cleanup programs. DTSC and DOJ staff said outreach and stronger data collection remain priorities to reduce fee noncompliance and stabilize the hazardous-waste-control account.
