 NEWSLETTERTO: ClientsFROM: Sam Celly, BChE MChE JD CSPDATE: April 20, 2026SUBJECT: CLARIFICATION FOR FEE ON PRODUCTS CONTAINING NON-REMOVABLE (EMBEDDED) BATTERIESIntroduction & PurposeEffective 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) irrespective of the fact whether any fees are due or not. 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.) Essentially, products that contain hard to replace batteries.The CDTFA has confirmed with CNCDA that“dealers selling ‘covered battery-embedded products’ (CBEP) retail over the parts countermust register with the CDTFA and remit the fee for qualifying products.”What you need to doDealers should audit parts inventory and check with manufacturer if CBE fee is applicableTax persons should determine the Fee to be collectedAccountants should create an account where the fee is to be routedDMS should be set up to create language for the line item on the invoiceTrain parts staff to explain the fee to customersBusiness Office to pay the CBE Fee to the state on a quarterly basis.The CDTFA has confirmed with CNCDA that the fee is applicable to CBE products sold over the parts counter. Dealership vehicle sales and service operations are exempt.Dispose CBE just like your other e-waste. Set up for recycling and keep out of regular trash.For more info: https://cdtfa.ca.gov/taxes-and-fees/covered-electronic-waste-recycling-feeCBE Fee Rates CalRecycle has 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 priceCapped at $15 per productEffective January 1, 2026Dealership 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.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 ResponsibilitiesRegister with CDTFA for the CBE FeeFee collection at parts point of saleFiling CBE returns, at assigned frequencyTimely remittance of fees to CDTFARetain 3% of fees as reimbursement for all fee collection costsInventory review and system updateConnect with auto manufacturer representative to confirm fee applicabilityNon-compliance may result in CDTFA penalties, interest, and enforcement action.The following transactions are not subject to the CBE waste recycling fee.A sale for resaleA sale to Native Americans on Indian countrySale 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 CaliforniaExamples of CBE in Automotive PartsPortable jump starters and battery boostersPortable power banksTPMS (tire pressure monitoring) sensorsAutomotive GPS/navigation unitsOBD-II connected-car devices with cellular/Wi-FiDash camerasAutomotive diagnostic tools — digital multimeters, electronic torque wrenches, dial indicatorsTrack-day / performance driving devicesWireless towing and trailer light kitsBody shop inventory management hardwareNote: 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. 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. |
Month: August 2026
Top 10 OSHA Citations of 2025
| TO: Environmental, Health and Safety (EHS) Coordinator FROM: Sam Celly, BChE MChE, JD CSP SUBJECT: Top 10 OSHA Citations of 2025 DATE: February 5, 2026  FED-OSHA TOP 10 Citations Issued in 2025 and the Basics of Prevention 1. Fall Protection: Work-related fatalities due to slips, trips, and falls accounted for 885 fatalities in 2023. Fed-OSHA requires fall protection for employees working 4 feet above in general industry. Cal/OSHA requires fall protection for employees working 30 inches above the level below in general industry. 2. Hazard Communication: Employers are required to provide a written Hazard Communication Program, label hazardous chemicals, provide a Safety Data Sheet for each chemical, and document employee training.3. Ladders: Limit ladder use to ladder safety trained and experienced staff only. Secure ladders with a chain to prevent usage by untrained staff.4. Lockout/Tagout: Specific procedures and practices safeguard employees from the unexpected energization or startup of machinery and equipment. A written program and annual employee training is mandatory. Employees working on automobiles must comply by isolating energy to the engine to prevent inadvertent movement during repair or service. A lockout kit including locks should be available for each piece of equipment/machinery.5. Respiratory Protection: Body shop employees need specific training both on written policies and on practices involving the use of respirators during auto refinishing operations. Training for respiratory protection, fit testing, user seal check, and respiratory cleaning procedures is mandatory, as is the OSHA Respirator Medical Evaluation Questionnaire. When an employee wears a respirator, information on proper usage, including limitations, must be provided even when it is not required under the regulation. 6. Fall Protection Training Requirements: Dealerships must protect employees working on 2nd floor of the parts department, especially while loading and unloading parts at the mezzanine edge.7. Scaffolding (General Requirements): Primarily applicable to the construction industry.8. Powered Industrial Trucks (Forklifts): The high number of fatalities associated with forklifts and high number of violations associated with powered industrial trucks tell us that many workers are not properly trained to safely drive potentially hazardous equipment. OSHA compliance requires training in these specific activities: forklift operations, loading and unloading, and vehicle maintenance. Evaluating each operator every three years is also mandatory.9. Eye & Face Protection: Reinforce your Personal Protective Equipment (PPE) policy and ensure all employees wear eye and face protection as necessary.10. Machine Guarding: Moving machine parts have the potential to cause severe workplace injuries such as crushed fingers or hands, amputations, burns, or blindness. Safeguards, including anchoring machinery, are essential for protecting workers from these preventable injuries. Any machine part, function, or process that may cause injury must be safeguarded. When machine operation or accidental contact with the machine may injure the operator or others in the vicinity, hazards must be eliminated or controlled. Moving parts in automobiles, grinders, and brake lathes are all subject to this regulation. COMPLETE OSHA TRAINING ON THE WEB AT YOUR OWN PERILOSHA has stated repeatedly and consistently in its training-related interpretation letters that online or computer-based training is acceptable as part of an overall training program that includes hands-on, site-specific information and work practices where it is needed to meet workplace safety goals. Many online courses may not be legitimate. In many instances, the training company clearly states that the training does not meet any local, state, or federal standards. The awakening happens when OSHA audits the workplace and finds the employer lacking in hands-on, site-specific information and work practices. We discuss the hand-on element of some of the hands-on training requirements as follows:Fall Protection: Employees must have hands-on training in using fall protection equipment such as harnesses. Also, the lanyards which automatically limit free fall distance are to be marked according to the actual edge. In summary, the training is hands-on and site-specific.Forklift Training: Many employers are under the false assumption that the online training is sufficient for employees operating forklifts. Allowing a person who has completed only online training to operate a forklift is akin to driving an automobile after passing a written test. We all know that hands-on proficiency is to be shown before an actual driver’s license is granted. Some trainers will state in fine print that hands-on training is necessary, and some do not mention it all. An experienced trainer must provide training on the operation of the actual forklift and evaluate the employee on proficiency prior to providing an operator certification. Lockout/Tagout (LOTO): A written program and employee training is mandatory along with the hands-on portion of lockout. An effective LOTO program requires that the employee must be able to show to the certifier that he possesses the tools and has procedural knowledge to effectively lockout and tagout the equipment, e.g., a faulty hoist.Respiratory Protection: Each employee must be fit tested for the specific respirator to be worn by the employee. Respirator selection must be done by the employer based on the hazard to which the employee is/will be exposed. The SDS for the chemical being used must be utilized in the selection process. The employee should be given training on the respirator that must be worn during the work shift. OSHA PENALTIES ARE UP AGAIN*Type of ViolationPenaltyOther-Than-Serious$16,550 per violationSerious$16,550 violationFailure to Abate$16,550 per day beyond abatement datePosting Requirements$16,550 per violationWillful or Repeated$165,514 per violation *Note: The penalties are automatically adjusted for inflation on an annual basis and based on the number of employees. Table above reflects penalty amounts as of 1/27/2026. DISCLAIMER: The contents of this newsletter are for informational purposes only and are not to be considered 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 in Arizona, California, Hawaii, Idaho, Nevada, New Mexico, New York, Texas, and Virginia comply with EPA and OSHA regulations for over 35 years. Sam is a Certified Safety Professional (No. 16515) certified by the National Board of Certified Safety Professionals. Sam received his BE (1984) and MS (1986) in Chemical Engineering, followed by a J.D. from Southwestern University School of Law (1997). Sam is a member of the American Chemical Society (No. 31176063), American Industrial Hygiene Association (No. 124715), and National Association of Dealer Counsel (NADC). Sam also serves on the Board of Orange County American Industrial Hygiene Association and on CA Industrial Hygiene Council (CIHC). Our newsletters can be accessed at www.epaoshablog.com. We welcome your comments/questions. Please send them to sam@cellyservices.com |
Celly Services Inc. 