According to the California Department of Tax and Fee Administration (CDTFA), retailers selling or leasing covered battery-embedded products must register for a fee account, collect the fee at the point of sale and remit it to the state. Consumers who do not pay the fee at purchase are required to register and pay the fee directly.

There are certain exceptions, including electronic devices already subject to California’s existing e-waste recycling fee, certain medical devices and electronic nicotine delivery systems.

For manufacturers, the change represents an expansion of California’s electronic waste framework into a broader range of battery-powered products now common across industrial, commercial and consumer markets. CDTFA administers the new fee alongside the state’s long-standing Covered Electronic Waste Recycling Fee program, which applies to certain video display devices.

Revenue collected through the battery-embedded fee is intended to support the safe collection, recycling and environmentally sound disposal of covered electronic products that contain hazardous materials, according to CDTFA and CalRecycle.

The battery-embedded fee operates alongside a separate producer responsibility framework under the Responsible Battery Recycling Act of 2022, administered by CalRecycle, in consultation with the California Department of Toxic Substances Control. That law applies to producers of batteries sold separately, batteries designed to be easily removed by users, or batteries packaged with but not installed in products. Producers covered by the act must participate in a stewardship program for battery collection and recycling in California. Retailers and distributors are prohibited from selling or importing covered batteries in California if the battery producer is noncompliant with the stewardship requirements.