The Assembly Environmental Safety and Toxic Materials Committee convened on July 1, 2025, to discuss Senate Bill 328, a proposed measure aimed at addressing the rising costs associated with hazardous waste fees for housing developers. The bill seeks to alleviate financial burdens on developers who are remediating contaminated land, thereby facilitating the return of these sites to productive use.

Senate Bill 328 is a response to significant changes made by Senate Bill 158 in 2022, which altered the fee structure imposed by the Department of Toxic Substances Control (DTSC). Previously, fees were tiered and capped at $100,000 for most housing projects. However, the new fixed price model set the fee at $46.20 per ton, leading to dramatic increases in costs. For example, a housing project in San Francisco saw its fees escalate from $100,000 to $800,000, making several projects financially unfeasible amid California's ongoing housing crisis.

The proposed legislation would reinstate a cap on hazardous waste generator fees at $100,000 per project per year for infill projects and $250,000 for master development projects. Additionally, SB 328 aims to establish timelines for DTSC's responses to development-related actions, which could help streamline the development process and reduce delays.

Supporters of the bill, including representatives from the Bay Area Council and the Housing Action Coalition, emphasized the importance of capping fees to encourage urban infill development and soil remediation. They argued that uncapped fees could deter housing projects from urban areas, leaving communities polluted and exacerbating the housing shortage.

The committee heard testimonies highlighting the financial strain caused by the increased fees, with some developers reporting additional costs of up to $600,000 due to the new fee structure. Advocates for SB 328 believe that the bill strikes a balance between ensuring the DTSC can fulfill its regulatory responsibilities while allowing essential housing projects to proceed without overwhelming costs.

As California grapples with rising development expenses, SB 328 represents a critical effort to create a more favorable environment for affordable housing development, addressing both environmental and housing needs in the state. The committee's discussions will likely influence the bill's progress as it moves through the legislative process.