CHAPTER
22. California Photovoltaic Panel Collection and Recycling Act of 2014
42995.
This chapter shall be known, and may be cited, as the California Photovoltaic Panel Collection and Recycling Act of 2014.42995.1.
(a) The Legislature finds and declares all of the following:(1) California’s policies, including the policies reflected in the California Solar Initiative (Chapter 8.8 (commencing with Section 25780) of Division 15), the state’s net energy metering program, and the California Renewable Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code), have made California the leading state in the installation of solar energy systems by providing ratepayer-funded incentives to eligible solar energy systems, resulting in substantially increased utilization by homes, businesses, and utilities.
(2) Existing
solar energy systems use photovoltaic technology to capture sunlight and convert it into electricity until the end of their useful lives, estimated to be between 25 and 40 years. Today a wide variety of solar photovoltaic technologies, manufactured using processes and materials similar to those of the microelectronics industry, contribute to California’s solar energy portfolio.
(3) The numerous renewable and customer-generated solar programs in California have led to a rapid expansion of solar energy systems and have given rise to an emerging photovoltaic industry. An increasing amount of end-of-life photovoltaic panels can be expected from 2020 onwards in California. It is critical to consider the end-of-life issues associated with photovoltaic panels. Recycling is the most sustainable way to manage end-of-life photovoltaic panels.
(b) It is the intent of the Legislature to do
all of the following:
(1) Foster a comprehensive and innovative system for the reuse, recycling, and proper and legal disposal of end-of-life photovoltaic panels.
(2) Establish a program that makes it convenient for consumers and the public to return and recycle photovoltaic panels, and ensures the efficient, environmentally safe disposition of end-of-life photovoltaic panels.
(3) Reduce the likelihood of improper disposal and ensure that the cost associated with the handling, recycling, and disposition of end-of-life photovoltaic panels shall be the responsibility of the photovoltaic panel producers and consumers, and not local governments or their service providers, state government, or taxpayers.
(4) Provide flexibility to photovoltaic panel
producers to partner with each other and with those private and nonprofit business enterprises that currently provide collection and processing services to develop and promote a safe and effective end-of-life photovoltaic panel recycling system for California.
(5) Provide for the collection and recycling of the maximum feasible number of end-of-life photovoltaic panels.
(6) Ensure that semiconductor materials and other metal constituents of photovoltaic panels are recovered from photovoltaic panels at the end of life.
(7) Encourage photovoltaic panel producers to establish a cost-effective system for the recovery, reuse, recycling, and proper disposal of end-of-life photovoltaic panels, and build on and reward early action to create existing photovoltaic panel take-back and recycling programs.
(c) It is further the intent of the Legislature that photovoltaic panels, to the greatest extent feasible, should be designed for extended life, repair, and reuse, and that collection and recycling services should be provided for the maximum feasible number of end-of-life photovoltaic panels.
42995.2.
For the purposes of the chapter, the following definitions shall apply:(a) “Bulk recycling” means recycling targeted at the recovery of a certain percentage of the total mass of a photovoltaic panel and that does not differentiate between high-value and low-value constituents.
(b) “Business consumer” means a business, corporation, limited partnership, nonprofit organization, or governmental entity that purchases or owns photovoltaic panels in a quantity larger than those typically possessed by a household consumer.
(c) “Consumer” means a purchaser or owner of a photovoltaic panel in the state.
(d) “Department” means the Department of Resources Recycling and Recovery.
(e) “End-of-life photovoltaic panel” means a photovoltaic panel that has been used and is removed from service in this state and is intended to be discarded or recycled. A photovoltaic panel that is designated for refurbishment or reuse is not an end-of-life photovoltaic panel.
(f) “High-value recycling” means recycling targeted at the recovery of a significant percentage of metals and semiconductor materials from a photovoltaic panel.
(g) “Historic photovoltaic panel” means a photovoltaic panel placed on the market by a producer before January 1, 2015.
(h) “Household consumer” means both of the following:
(1) A household, as defined in Section 25218.1 of the Health and Safety Code, that purchases or owns a photovoltaic panel in the state.
(2) The purchaser or owner of a photovoltaic panel that does not meet the definition of a household specified in paragraph (1), but purchases or owns photovoltaic panels in a limited quantities that is equivalent to the amount of photovoltaic panels that a household otherwise purchases or owns.
(i) (1) “Photovoltaic panel producer” or “producer” means a person, business, corporation, limited partnership, nonprofit organization, or governmental entity that, irrespective of the selling technique used, sells photovoltaic panels in this state or places photovoltaic panels on the market because it does one of the following:
(A) Manufactures photovoltaic panels within the state under its own name or trademark, or has photovoltaic panels designed or manufactured in the state, and markets the photovoltaic panels in the state under its own name.
(B) Resells photovoltaic panels within the state that were produced within the state by another entity under the reseller’s own name.
(C) Imports into the state photovoltaic panels manufactured outside of the state for the purpose of sale within the state.
(D) Sells photovoltaic panels directly into the state or solely by means of distance communication, including telephone or internet sales, to consumers in the state.
(2) Notwithstanding subparagraph (B) of paragraph (1), a
person, business, corporation, limited partnership, nonprofit organization, or governmental entity is not a producer if the brand of a producer which is not that person, business, corporation, limited partnership, nonprofit organization, or governmental entity appears on the photovoltaic panels resold by that entity.
(j) “Photovoltaic panel” means a device having the primary purpose of providing nonthermal generation of electricity from solar energy.
(k) “Orphan photovoltaic panel” means a photovoltaic panel sold to a consumer that, at the end of life, is not managed by the producer of that photovoltaic panel because the producer no longer exists or because the producer does not otherwise operate or participate in a take-back program.
(l) “Take-back program” means a system for the collection, transportation,
recovery, and environmentally sound recycling of end-of-life photovoltaic panels.
(m) “Take-back program operator” or “operator” means an individual producer or a group or organization of producers that manages a take-back program.
42995.3.
(a) On or before July 1, 2016, a producer shall establish and operate a take-back program or shall participate as a member in a take-back program established and operated by, or on behalf of, two or more producers.(b) A take-back program established pursuant to this chapter shall provide for the collection, transportation, recovery, and environmentally sound recycling of end-of-life photovoltaic panels that are put on the market on and after January 1, 2015, by the producer participating in the take-back program pursuant to subdivision (a), and for end-of-life historic photovoltaic panels and end-of-life orphan photovoltaic panels, upon payment of the fee specified in Section 42995.4.
(c) (1) A producer may enter an agreement with a business consumer to establish an alternative contractual arrangement to finance the costs of the collection, transportation, recovery, and environmentally sound recycling of the end-of-life photovoltaic panels that are sold by the producer to the business consumer. An agreement entered into pursuant to this subdivision shall require the photovoltaic panels managed pursuant to the alternative contractual arrangement to meet the photovoltaic panel collection and recycling targets established pursuant to subdivisions (a) and (b) of Section 42995.4.
(2) If a producer enters into an agreement pursuant to this subdivision, any photovoltaic panels sold by the producer that are not subject to the alternative contractual arrangement shall be included in a take-back program established pursuant to subdivision
(a).
42995.4.
The department may adopt regulations to implement this chapter. On or before January 1, 2016, the department shall adopt regulations that do all of the following:(a) Set reasonably achievable collection targets for take-back programs, on a graduated basis, taking into account cost and the technical feasibility.
(b) Establish a high-value recycling rate of not less than 80 percent and a bulk recycling rate of not less than 75 percent for all end-of-life photovoltaic panels collected pursuant to a program, taking into account cost and technical feasibility.
(c) Set the amount of the fee that a consumer submitting an end-of-life historic
photovoltaic panel or an end-of-life orphan photovoltaic panel to a take-back program shall pay to the program, based upon the reasonable costs of the program to handle, transport, and recycle the end-of-life photovoltaic panel.
42995.5.
An operator of a take-back program shall submit to the department a proposal to establish a take-back program that would take all of the following actions:(a) Collect end-of-life photovoltaic panels at the rate established by the department pursuant to subdivision (a) of Section 42295.4. The take-back program operator shall undertake the educational and outreach efforts necessary to achieve the established collection rates.
(b) Meet the recovery rates for high-value recycling and bulk recycling of photovoltaic panels established by the department pursuant to subdivision (b) of Section 42995.4. The take-back program operator shall utilize recycling technologies capable of meeting the recycling rates
established by the department.
(c) Affix a label to each photovoltaic panel sold by the producers participating in the program. The label shall enable the consumer to easily contact the take-back program operator at end-of-life, by including the name of the take-back program operator, relevant handling instructions, and contact information including, but not limited to, a toll-free number, an Internet Web address, or an email address.
(d) Provide for one or more of the following:
(1) The direct pickup of end-of-life photovoltaic panels from the installation location.
(2) The free shipping of photovoltaic panels to the operator.
(3) The operation of locations for consumers to drop off
end-of-life photovoltaic panels.
(e) Handle and transport photovoltaic panels in a manner consistent with all local, state, and federal requirements.
(f) Notify a consumer of the requirements of Section 42995.9, if the consumer removes a photovoltaic panel and does not intend to reuse, sell for reuse by another, or refurbish the photovoltaic panel.
(g) Accept end-of-life historic and orphan photovoltaic panels, pursuant to one or more of the means specified in subdivision (d), from a consumer who pays the program the amount of the fee established by the department pursuant to subdivision (c) of Section 42295.4.
42995.6.
(a) A take-back program operator shall submit the take-back program proposal to the department for approval no less than 60 days before beginning operation of the program. The department shall approve a take-back program if it meets the requirements of Section 42995.5.(b) If the department takes no action to approve or reject a program proposal within 60 days of its submittal, the program shall be deemed to be an approved program.
42995.7.
On or before April 1, 2017, and on or before April 1 annually thereafter, each take-back program operator shall submit a report to the department covering the one-year period ending December 31 of the previous calendar year. The annual report shall include all of the following:(a) The volume by weight of photovoltaic panels marketed for sale by producers participating in the take-back program that were installed by consumers in the past calendar year. If the operator enters into an alternative contractual arrangement pursuant to subdivision (c) of Section 42995.3 with a business consumer, the operator shall include the volume by weight of the photovoltaic panels that are sold to the business consumer subject to that agreement.
(b) The volume by weight of end-of-life photovoltaic panels collected under the take-back program during the previous calendar year, including the quantity of historic photovoltaic panels and orphan photovoltaic panels collected by the program.
(c) Information regarding the collection rate and recycling rates achieved by the take-back program and under any alternative contractual arrangement entered into pursuant to subdivision (c) of Section 42995.3.
(d) Contact information for all collection locations operated as part of the take-back program.
(e) If the take-back program fails to meet the collection or recycling rates established by the department pursuant to Section 42995.4, a summary of the actions the operator plans to take in the upcoming calendar
year to achieve those rates.
42995.8.
(a) The department shall establish an annual administrative fee to be paid by the operator of a take-back program, which shall be set at an amount to cover the reasonable costs of implementing and enforcing this chapter.(b) An operator shall pay an annual administrative fee to the department. The department shall deposit the fee revenues in the Photovoltaic Panel Collection Administration Fund, which is hereby established in the State Treasury, the moneys in which may be expended by the department, upon appropriation by the Legislature, to implement and enforce this chapter.
42995.9.
(a) A person that removes an end-of-life photovoltaic panel from a building or structure, other than a take-back program operator or the operator’s employee, contractor, or representative, shall contact the take-back program operator using the contact information on the panel’s label and shall follow the instructions received from the operator for participation in the take-back program.(b) A person removing an end-of life historic photovoltaic panel or orphan photovoltaic panel shall submit the photovoltaic panel to an existing take-back program and pay the program the fee established by the department.
42995.10.
(a) A person who does any of the following shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation or, for continuing violations, for each day that violation continues, not to exceed a total of two hundred fifty thousand dollars ($250,000) for all violations:(1) Intentionally violates the requirements of this chapter or a regulation adopted pursuant to this chapter.
(2) Knowingly makes any false statement or representation in any application, record, report, or other document filed, maintained, or used for purposes of compliance with this chapter.
(b) In any
action brought pursuant to subdivision (a), the department may seek injunctive relief in addition to civil penalties.
(c) (1) As an alternative to a civil penalty pursuant to subdivision (a), the department may impose an administrative penalty in an amount not to exceed one thousand dollars ($1,000) for each intentional violation of this chapter, or a regulation adopted pursuant to this chapter, or, for continuing violations, for each day that violation continues, not to exceed a total of fifty thousand dollars ($50,000) for all violations, and shall submit a notice of the proposed penalty to the person subject to the penalty.
(2) A person assessed an administrative penalty may request the department to reconsider the penalty within 30 days of receiving notice of the proposed penalty. Upon receiving a request for reconsideration, the department shall, within
45 days, review the administrative penalty and issue a written decision. If the department upholds the administrative penalty, the person assessed that penalty may appeal the department’s determination in an action brought in the superior court, where the court shall consider the issue de novo.
(d) The department shall deposit all penalties collected pursuant to this section in the Photovoltaic Panel Penalty Fund, which is hereby established in the State Treasury. The department may expend the funds in the Photovoltaic Panel Penalty Fund, upon appropriation by the Legislature, to implement and enforce this chapter.