Hazardous waste generation and handling fees: Department of Toxic Substances Control oversight responses: housing development projects.

Senator Grayson's proposal to modify California's hazardous waste oversight process establishes new timelines for Department of Toxic Substances Control (DTSC) reviews of housing development projects and caps certain hazardous waste fees. The legislation creates a two-tier system for DTSC responses to oversight requests, requiring written notices within 60 business days for projects with 25 or fewer housing units and within 120 business days for larger developments.

The bill sets maximum annual hazardous waste generation and handling fees at $100,000 for residential infill housing projects and $250,000 for master development projects, provided the generators did not create the hazardous waste. To qualify for these caps, projects must meet specific criteria - infill housing must dedicate at least two-thirds of proposed square footage to residential use, while master developments must operate under formal development agreements, involve multiple phases, require new infrastructure, and include residential units.

Implementation occurs in two phases, with fee provisions taking effect January 1, 2026, and DTSC review timelines beginning July 1, 2028. Generators seeking fee limitations must submit applications to DTSC with documentation including local government entitlements, after which DTSC notifies the California Department of Tax and Fee Administration of eligible projects. The legislation maintains DTSC's authority to request additional information and provide feedback throughout the review process, without imposing deadlines for final determinations.