Mill Assessment Study

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The Department of Pesticide Regulation’s (DPR) mission is to protect human health and the environment by regulating pesticide sales and use, and by fostering reduced-risk pest management. The Department receives a majority of its resources through the DPR Fund—80% of which is derived from the mill assessment that is levied on the sale of registered pesticides at the point of first sale into the state. However, this fee has not changed in over 17 years. To determine an appropriate mill assessment structure, funding source(s), and level(s) to support and sustain the department's long-term programmatic goals and responsibilities, DPR is initiating a study that will systematically approach this evaluation. The 2021-2022 state budget allocated $1 million over two years to DPR to fund a study on the mill assessment that examines:

  • The existing structure and rate of the mill assessment;
  • Current and future funding needs for DPR, including strategies for linking how revenues are collected to DPR’s broader mission objectives;
  • Existing County Agricultural Commissioners’ funding associated with mill-related responsibilities and future needs;
  • Detailed options that incentivize the use of safer sustainable pest management practices across the state of California; and
  • Current and future revenues produced by proposed structures and rates to provide long-term sustainable funding that allows DPR to continue to fulfill its mission.

In February 2022, DPR entered into contract with Crowe LLP to conduct this study on DPR’s mill assessment, engage and consult with DPR stakeholders throughout various stages of the study, and issue a report outlining proposed mill options.

To receive updates on the progress and findings of the mill assessment study, please sign up to our email distribution list. Questions, feedback or comments can be submitted to DPR in writing via email at ProjectMillStudy@cdpr.ca.gov. For more information about the mill assessment in general, please visit the Mill Assessment page.

What are the latest updates on the Mill Assessment Study?

DPR conducted a webinar on March 30, 2022, to introduce the Crowe LLP team, a timeline of project milestones, and details on how stakeholders can get involved. A copy of the presentation slides is now available. A recording of this webinar is also available (Transcript, PDF) on DPR’s YouTube page.

Why is DPR considering updating the Mill Assessment now?

The mill assessment supports DPR’s work of regulating pesticide sales and use, fostering reduced-risk pest management, conducting enforcement and compliance activities, health and human assessments, environmental monitoring, and worker safety protection in alignment with the Department’s mission. However, the pesticide mill assessment has remained the same since 2004. The DPR Fund’s structural imbalance is a result of the continued expansion of programs and priorities, growth in employee compensation, and DPR’s supplemental pension payment obligations under Chapter 50, Statutes of 2017 (SB 84). As the fund balance has been depleted over time, DPR has faced greater challenges in managing the structural imbalance.

To better protect public health and the environment and support the state’s agricultural economy, DPR is launching a study of the mill assessment to identify sustainable long-term funding for DPR while accelerating the transition to safer, sustainable pest management practices across California. As pest management practices evolve, so must DPR and its funding structure to reflect the transition to safer, sustainable practices. To help promote a smooth transition, DPR and Crowe LLP will be engaging and consulting with DPR stakeholders throughout various stages of the mill assessment study.

What will the mill study cover?

In February 2022, DPR entered into contract with Crowe LLP to conduct a study on DPR’s mill assessment. Over the course of the study, Crowe LLP will also:

  • Engage and consult with DPR stakeholders throughout various stages of the study;
  • Facilitate presentations and proposed recommendations to obtain feedback from stakeholders;
  • Issue reports outlining the strengths and weaknesses of their proposed options for the structure of DPR’s mill assessment; and
  • Provide DPR a detailed plan to implement the options recommended as a result of the study.

How can I provide feedback for the Mill Study?

Questions, feedback or comments can be submitted to DPR in writing via email at ProjectMillStudy@cdpr.ca.gov.

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