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New California Fee on Nonremovable Batteries: What Manufacturers Need to Know

Update New Fee Targets Nonremovable Battery Products Starting January 1, 2026, consumers in California will see a new 1.5% fee added to products with nonremovable batteries, such as power tools, gaming consoles, and even singing greeting cards. This charge, which caps at $15 per item, is part of an expanded recycling program aimed at making the environment safer and reducing the risk of battery-related fires. Understanding the Fee and Its Implications for Manufacturers This new mandate, formally known as the Covered Battery-Embedded Waste Recycling Fee, impacts manufacturers across various industries. If you produce or sell items with batteries that users can't easily remove, your products will be subjected to this fee. California’s Department of Tax and Fee Administration (CDTFA) requires retailers to register, collect, and remit this fee at the point of sale. For those who don’t pay when buying, there are methods to register and settle the fee directly with the state. Why Is This Important Now? The adoption of this fee comes in response to rising concerns about lithium-ion batteries—ranging from the fire risks they pose to the environmental issues linked to improper disposal. With around 7,300 tons of battery waste finding its way into landfills each year, action was overdue. As noted by Joe La Mariana, executive director of RethinkWaste, the prevalence of these batteries makes it crucial to tackle the disposal challenges they present. This situation illustrates the need for responsible manufacturing practices in California’s manufacturing landscape. A Collective Effort to Support Recycling Alongside the new fee, California's legislative efforts advocate improved recycling systems under Senate Bill 1215, which aims to increase awareness of recycling practices among consumers and manufacturers alike. The funds collected will help with the collection, recycling, and safe disposal of items containing hazardous materials, ensuring that manufacturers contribute to a greener future. Exemptions and the Wider Context While the fee covers most battery-powered products, certain devices, such as single-use nicotine devices, have been excluded due to concerns regarding the handling of hazardous substances. This highlights the balancing act legislators must perform—addressing environmental needs while considering public health and safety. Embracing a Proactive Manufacturing Approach As a manufacturer, understanding the implications of these new tax measures can allow you to navigate this evolving landscape effectively. The fee isn’t just a cost; it represents a shift toward environmental stewardship that all producers can embrace. By engaging with programs that promote recycling, manufacturers can not only comply with regulations but also improve their public image and potentially reduce risks linked to battery disposal. What’s Next for California Manufacturers? For manufacturers, this initiative offers the chance to reflect on production methods and look into ways to create more environmentally friendly products. Engaging with eco-friendly practices can lead to innovation, enhancing market competitiveness while aligning with growing consumer demand for sustainable options. As this new recycling fee unfolds, manufacturers must stay informed and adaptable. Understanding the ramifications now can help mitigate future challenges and foster a sustainable future. Explore proactive measures in your manufacturing practices to not only comply with policies but also contribute positively to our environment.