Automotive Oil Change Assn. v. Dept. of Toxic Substances Control CA3

BACKGROUND

We draw the following facts from the allegations of the challenged pleading. The Association is a nonprofit trade organization whose members, including Nor Cal and Henley, operate automotive maintenance facilities. DTSC assesses generation and handling fees payable by businesses that collect, generate, and store hazardous waste, including used motor oil. The California Department of Tax and Fee Administration (CDTFA) collects generation and handling fees for DTSC. Under section 25174.8, subdivision (a)(4), a generator of hazardous waste need not pay generation and handling fees for “[h]azardous waste that is used oil collected from the public and generated by a used oil collection center certified by the Department of Resources Recycling and Recovery pursuant to Section 48660 of the Public Resources Code [(hereafter certified used oil collection centers)].” DTSC interprets the statute to exempt from payment of the fees used oil collected from the public but not used oil generated by businesses. Beginning in 2022, DTSC has been assessing generation and handling fees against certified used oil collection centers, including Nor Cal, Henley, and other Association members,…