In a recent meeting of the California State Assembly's Environmental Safety and Toxic Materials Committee, lawmakers discussed Senate Bill 328, aimed at addressing the rising costs associated with hazardous waste fees that impact housing development. The bill seeks to cap these fees, which have surged dramatically since the introduction of a new fee structure in 2022, significantly affecting the feasibility of essential housing projects across the state.

The current fee model, established by SB 158, replaced a tiered fee system with a fixed price of $46.20 per ton for hazardous waste disposal. This change has led to exorbitant costs for developers, with some projects experiencing fee increases from $100,000 to as much as $800,000. Such financial burdens have stalled numerous housing initiatives at a time when California is grappling with a severe housing shortage.

SB 328 proposes to reinstate a cap on hazardous waste generator fees at $100,000 per project per year for infill projects and $250,000 for larger master development projects. Additionally, the bill aims to streamline the response times of the Department of Toxic Substances Control (DTSC) to ensure timely processing of development-related actions. Proponents argue that these measures will not only alleviate financial pressures on developers but also encourage the cleanup of contaminated sites, ultimately contributing to the availability of affordable housing.

Supporters of the bill, including representatives from the Bay Area Council and the Housing Action Coalition, emphasized the importance of maintaining urban development while addressing environmental concerns. They highlighted real-world examples where increased fees have halted projects, thereby exacerbating the housing crisis and leaving contaminated sites unaddressed.

However, the bill faced some opposition, particularly from the California Council for Environmental and Economic Balance. Critics expressed concerns that capping fees for housing developers could lead to increased costs for other sectors, as the financial burden would shift to different entities, including schools and hospitals. They urged for a comprehensive review of the fee structure to ensure sustainability across all sectors affected by hazardous waste regulations.

The committee's discussions underscored the delicate balance between fostering housing development and ensuring environmental safety. As California continues to confront its housing crisis, the outcomes of SB 328 could play a pivotal role in shaping the future of urban development and environmental remediation in the state. The committee's next steps will likely involve further deliberations on the bill and its implications for both housing and environmental policy.