To: Environmental Health and Safety Coordinator

From: Sam Celly, BChE MChE JD CSP

Date: November 24, 2025

Ref: SB 1215 requires California retailers to register with CDTFA and collect a new recycling fee on products containing non-removable (embedded) batteries starting January 1, 2026.

Introduction & Purpose
Effective January 1, 2026, retailers doing business in California—including automotive dealerships—must comply with the newly established Covered Battery-Embedded Products (“CBE”) Waste Recycling Fee, administered under Senate Bill (SB) 1215. Retailers must register with the California Department of Tax and Fee Administration (CDTFA) and collect the CBEP fee at the point of sale or lease of applicable products. 

The program is jointly overseen by CDTFA, CalRecycle, and the Department of Toxic Substances Control (DTSC). It is intended to support statewide recycling of electronic products containing non-removable batteries. The new law expands the existing Electronic Waste Recycling Act of 2003 to include these “covered battery-embedded products.”

What Is a Covered Battery-Embedded Product?
Covered battery-embedded product means “a product containing a battery or battery pack that is not designed to be removed from the product by the consumer.”(California Public Resources Code 42464(d)(1), as amended by SB 1215, 2022.)

Examples of CBE at dealerships

• Consumer electronics
• EV-related accessories
• Diagnostic or programming devices
• Electronic tools or service accessories
• TPMS-Tire Pressure Monitoring Systems
• Smartphones, tablets, and similar sealed battery devices

Note:  Key fobs are not considered CBE because it contains a battery that is designed to be easily removed by the user with common household tools.

TPMS Sensors – Possible Inclusion
Many Tire Pressure Monitoring System (TPMS) sensors contain sealed lithium batteries that are not easily user replaceable. This design places TPMS within the scope of a CBE. As of the date of this memo, no TPMS manufacturer has released official SB 1215 guidance. Dealerships should prepare for potential inclusion and monitor manufacturer updates closely.

Exclusions
The following are not classified as CBE.

• Certain medical devices
• Covered electronic devices (already subject to California’s e-Waste fee)
• Certain energy storage systems
• Certain electronic nicotine delivery systems

The following transactions are not subject to the CBE waste recycling fee.

• A sale for resale
• A sale to Native Americans on Indian country
• Sale of CBE products the retailer ships directly to a location outside California when the transaction is not subject to California sales or use tax. The fee will apply if the buyer takes possession of the CBE products in California

CBE Fee Rates
CalRecycle has now finalized the 2026 fee structure.  This will be revised annually in October and will take effect January 1 of the following year.

• 1.5% of the retail sales price
• Capped at $15 per product
• Effective January 1, 2026
• Dealership POS systems will need to incorporate the percentage-based calculation and the per-item cap. They may retain three percent of the CBE waste recycling fee collected as reimbursement for all fee collection costs.

Registration Timeline
CDTFA opens online registration for the CBEP Waste Recycling Fee account today, November 19, 2025.
Dealerships without CDTFA credentials (username, password, or seller’s permit) must create them using the “Sign Up Now” feature in the CDTFA Online Services Portal.

Filing Requirements & Due Dates
Returns and payments are due the last day of the month following each calendar quarter. For example, the first required reporting period is for the first quarter, January 1 through March 31. The return and fee payment are due on or before April 30th. The return is due on either a quarterly or yearly filing basis, and filing frequency is assigned when you register. You are required to file a return even if you did not have any reportable activity or do not owe an amount during the reporting period.

Dealership Responsibilities

• Fee collection at POS (including leases)
• Filing CBE returns, at assigned frequency
• Timely remittance of fees to CDTFA
• Retain 3% of fees as reimbursement for all fee collection costs
• Inventory review and system updates

Non-compliance may result in CDTFA penalties, interest, and enforcement action.

For More Information
CDTFA – CBE Waste Recycling Fee Guide
Provides instructions for registration, filing, and fee remittance.

CDTFA Customer Service Center
1-800-400-7115 (TTY: 711)
Monday–Friday, 7:30 a.m.–5:00 p.m. Pacific
Select: Special Taxes and Fees

CSI Client Testimonials
https://cellyservices.com/testimonials/

DISCLAIMER: The contents of this newsletter are merely for informational purposes only and are not to be considered as legal advice.  Employers must consult their lawyer for legal matters and EPA/OSHA consultants for matters related to Environmental, Health & Safety. The article was authored by Sam Celly of Celly Services, Inc. who has been helping automobile dealers comply with EPA and OSHA regulations since 1987.  Sam received his BE (1984) and MS (1986) in Chemical Engineering, followed by a J.D. from Southwestern University School of Law (1997).  Our newsletters can be accessed at www.epaoshablog.com.  Your comments/questions are always welcome.  Please send them to sam@cellyservices.com.