The Los Angeles Times reported Friday that the tentative agreement with the state's attorney general also calls for the company to train employees on proper waste disposal methods and hire a compliance auditor.
As part of the deal, Target does not acknowledge any wrongdoing.
An Alameda County judge is scheduled to review the agreement March 2.
The attorney general's office declined to comment to The Associated Press. Messages left at Target's Minneapolis headquarters were not immediately returned.
Prosecutors had accused Target of pouring returned or defective merchandise down drains, throwing it into trash bins, and in one instance, donating it to a food bank.
Information from: Los Angeles Times, http://www.latimes.com