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AB-1509 Solid waste: lithium-ion batteries.(2019-2020)

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Date Published: 05/01/2019 09:00 PM
AB1509:v97#DOCUMENT

Amended  IN  Assembly  May 01, 2019
Amended  IN  Assembly  April 01, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1509


Introduced by Assembly Members Mullin and Berman
(Principal coauthor: Senator Hill)
(Coauthors: Assembly Members Bloom and Eggman)

February 22, 2019


An act to add Section 42450.6 to the Public Resources Code, relating to solid waste.


LEGISLATIVE COUNSEL'S DIGEST


AB 1509, as amended, Mullin. Solid waste: lithium-ion batteries.
Existing law, the Rechargeable Battery Recycling Act of 2006, requires every retailer, as defined, to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal. Existing law requires the system for the acceptance and collection of used rechargeable batteries to include, at a minimum, specified elements, including, among others, the take-back of a used rechargeable battery of the type or brand that the retailer sold or previously sold at no cost to the consumer. Existing law defines “rechargeable battery” for purposes of these provisions to mean a small, nonvehicular, rechargeable nickel-cadmium, nickel metal hydride, lithium-ion, or sealed lead-acid battery, or a battery pack containing these types of batteries.
This bill would establish the Lithium-Ion Battery Recycling Program in the Department of Resources Recycling and Recovery. The bill would require the department, by March 1, 2021, and by March 1 of each year thereafter, to track the total number of covered batteries and the total number of covered battery-embedded products disposed of in the state in the previous year. a covered entity, as defined, on or before March 1, 2021, to provide a list of covered products that it sells or offers for sale in the state to the department and the total number of each covered product it sold in the state during the prior year, and to update those lists annually. The bill would define “covered product” to mean a lithium-ion battery sold separately or sold with a product, or a product containing a lithium-ion battery or battery pack that is not designed to be removed from the product by a consumer. The bill would require manufacturers and retailers, as defined, a covered entity to annually achieve specified collection and recycling rates for covered batteries and covered battery-embedded products based on the number of covered batteries and covered battery-embedded products disposed of in the previous year, products, as provided. The bill would require a manufacturer covered entity to establish and implement a stewardship program for covered batteries independently or as part of a group of manufacturers covered entities through membership in a stewardship organization. The bill would authorize a retailer covered entity to achieve the recycling rates for covered battery-embedded products through any of specified mechanisms, including through a take-back program in which the retailer offers consumers covered battery-embedded product take-back services through collection receptacles or a mail-back program. The bill would require a covered entity to pay the department an administrative fee, set by the department at an amount that, when paid by every covered entity, is adequate to cover the department’s, and any other state agency’s, full costs of administering and enforcing this program. The bill would require the department to deposit those administrative fees in the Lithium-Ion Battery Recycling Cost of Implementation Account, which would be established by the bill, and would authorize the expenditure of those funds, upon appropriation by the Legislature, for certain purposes. The bill would require the department, on or before January 1, 2022, to adopt regulations to implement the program.
This bill would also state the intent of the Legislature to enact legislation to amend the Electronic Waste Recycling Act of 2003 to allow for the recovery and recycling of lithium-ion batteries and products containing lithium-ion batteries under the existing program established by the act.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Lithium-ion batteries are commonly found in everyday electronics, including cell phones, tablets, laptops, power tools, and toys. According to Call2Recycle, California consumes approximately 64 million lithium-ion batteries a year. Some of these batteries are sold individually, some are removable from the product in which they are sold, and others are secured inside of products and are not removable.
(b) These batteries store high levels of energy. If improperly disposed of, they pose a serious fire and safety hazard to waste collecting and processing infrastructure and workers.
(c) According to Fire Rover, more than 1,700 fires occurred in the United States and Canada in 2017 as a result of lithium-ion batteries. Resource Recycling Systems estimates that between 75 percent and 92 percent of lithium-ion batteries are disposed of improperly.
(d) In 2016, a lithium-ion battery started a fire at the Shoreway Recycling Center in the County of San Mateo, which threatened the safety of workers at the center, caused millions of dollars in damage, and shut the center down for 90 days.
(e) Each new lithium-ion battery deposited into the waste stream could cause another catastrophic fire. Lithium-ion batteries are already banned from disposal in California and should not be ending up in the state’s solid waste and recycling system.
(f) Given the increased consumption of lithium-ion batteries, the state must ensure the proper disposal of those batteries to protect California’s communities and workers from these hazards.

SEC. 2.

 It is the intent of the Legislature to enact legislation to amend the Electronic Waste Recycling Act of 2003 to allow for the recovery and recycling of lithium-ion batteries and products containing lithium-ion batteries under the existing program established by the act.

SEC. 3.

 Section 42450.6 is added to the Public Resources Code, to read:

42450.6.
 (a) For purposes of this section, the following definitions apply:
(1) “Covered battery” means a lithium-ion battery or battery pack that is sold separately or is sold with an electronic product and is removable from the electronic a product.
(2) “Covered battery-embedded product” means a product containing a lithium-ion battery or battery pack that is not designed to be removed from the electronic product by the consumer. “Covered battery-embedded product” does not include either of the following:
(A) A Class III medical device, as specified in Section 360c of Title 21 of the United States Code.
(B) A Class II medical device, as specified in Section 360c of Title 21 of the United States Code, that is not exempt from Section 360(k) of Title 21 of the United States Code.
(C) An electronic device, as defined in Section 25214.10.1 of the Health and Safety Code.
(D) A motor vehicle, as defined in Section 415 of the Vehicle Code.
(3) “Covered entity” means the following:
(A) The person or company that manufactures a covered product and that sells, offers for sale, or distributes the covered product in the state.
(B) If there is no person or company that meets the description in subparagraph (A), the covered entity is the person or company that imports the covered product into the state for sale or distribution.
(C) If there is no person or company that meets either description in subparagraph (A) or (B), the covered entity is the person or company that sells, offers for sale, or distributes the covered product in the state.
(4) “Covered product” means a covered battery or a covered battery-embedded product.

(3)

(5) “Mail-back program” has the same meaning specified in subdivision (m) of Section 42030 of the Public Resources Code.

(4)“Manufacturer” means any of the following:

(A)The person or company that manufactures covered batteries and that sells, offers for sale, or distributes the covered batteries in the state.

(B)If there is no person or company that meets the description in subparagraph (A), the manufacturer of the covered batteries is the person or company that imports the covered batteries into the state for sale or distribution.

(C)If there is no person or company that meets either description in subparagraph (A) or (B), the manufacturer is the person or company that sells the covered batteries in the state.

(5)“Retailer” means a person or company who sells, offers for sale, imports, or distributes a covered battery-embedded product in the state.

(6) “Program” means the Lithium-Ion Battery Recycling Program.
(7) “Stewardship organization” means an organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) that is established by a group of covered entities to develop, implement, and administer a stewardship program established pursuant to this section.

(7)

(8) “Stewardship program” means a program established by manufacturers pursuant to paragraph (4) (6) of subdivision (b) for the free and convenient collection, transportation, and disposal of covered batteries.
(b) (1) The Lithium-Ion Battery Recycling Program is hereby established in the department.

(2)By March 1, 2021, and by March 1 of each year thereafter, the department shall track the total number of covered batteries and the total number of covered battery-embedded products disposed of in the state in the previous year.

(3)Manufacturers and retailers shall achieve the following recycling rates for covered batteries and covered battery-embedded products, respectively, based on the total number of covered batteries and covered battery-embedded products disposed of in the previous year, as determined pursuant to paragraph (2):

(2) On or before March 1, 2021, a covered entity shall provide a list of covered products that it sells or offers for sale in the state to the department. The covered entity shall also provide the department with the total number of each covered product it sold in the state during the prior year.
(3) On or before March 1, 2022, and on or before March 1 of each year thereafter, a covered entity, or a stewardship organization on behalf of a group of covered entities, shall update the lists described in paragraph (2) and provide the updated lists to the department.
(4) (A) On or before July 1, 2021, and once every three months thereafter, a covered entity shall pay to the department an administrative fee. The department shall set the fee at an amount that, when paid by every covered entity, is adequate to cover the department’s, and any other state agency’s, full costs of administering and enforcing this section. The total amount of administrative fees collected shall not exceed the state’s actual and reasonable regulatory costs to implement and enforce this section.
(B) The department shall deposit administrative fees paid by a covered entity pursuant to subparagraph (A) into the Lithium-Ion Battery Recycling Cost of Implementation Account, which is hereby established. Upon appropriation by the Legislature, moneys in the fund may be expended by the department, and by any other agency that assists in the regulatory activities of administering and enforcing this section, for the regulatory activities of this section and to reimburse any outstanding loans made from other funds used to finance the startup costs of the department’s activities pursuant to this section. Moneys in the fund shall not be expended for any purpose not enumerated in this section.
(5) Covered entities shall achieve the following annual collection and recycling rates for covered products, based on the total number of covered products sold in the previous year and a reasonable projection of covered products discarded in the state, as determined by the department based on information gathered pursuant to paragraphs (2) and (3):
(A) Twenty-five percent by December 31, 2025.
(B) Fifty percent by December 31, 2028.
(C) Seventy-five percent by December 31, 2031.
(D) Ninety percent by December 31, 2034.

(4)(A)A manufacturer shall establish and implement

(6) A covered entity shall establish a stewardship program for covered batteries independently or as part of a group of manufacturers covered entities through membership in a stewardship organization.

(B)By January 1, 2022, the department shall adopt regulations requiring manufacturers to establish or join a stewardship program for covered batteries.

(5)

(7) A retailer covered entity may achieve the recycling rates specified in paragraph (3) (5) through any of the following mechanisms:
(A) The retailer covered entity may establish a take-back program for covered battery-embedded products in which the retailer covered entity offers consumers covered battery-embedded product take-back services through collection receptacles or a mail-back program.
(B) The retailer covered entity may establish a deposit system in which the retailer covered entity charges a refundable deposit sufficient to encourage recovery of a covered battery-embedded product sold by the retailer covered entity and refunds the deposit if the consumer returns the covered battery-embedded product to the retailer. covered entity.
(C) If a retailer covered entity is participating in an existing battery recycling program that includes covered batteries, in addition to any other type of batteries, the retailer covered entity may include covered battery-embedded products in that program if the department determines that the inclusion of covered battery-embedded products in that battery recycling program would accomplish the intent of the program.
(c) In order to further the objective that covered entities establish and implement programs that comply with the requirements of this chapter, each covered entity shall pay all administrative and operational costs, or the covered entity’s share of costs if the covered entity is part of a stewardship organization, associated with establishing and implementing the program in which it participates, including the cost of collecting, transporting, and recycling covered products.
(d) On or before January 1, 2022, the department shall adopt regulations to implement this section.