Article
11.3. Vehicle traction batteries
25235.
For purposes of this article, the following definitions apply:(a) “Auctioneer” has the same definition as in subdivision (d) of Section 1812.601 of the Civil Code, but includes a wholesale motor vehicle auction subject to regulation by the Department of Motor Vehicles. Auctioneer does not include a salvage disposal auction.
(b) “Automobile dismantler” has the same definition as in Section 220 of the Vehicle Code.
(c) “Automotive repair dealer” has the same definition as in subdivision (a) of Section 9880.1 of the Business and Professions Code.
(d) “Battery cell” means
the basic electrochemical unit of a battery that consists of a cathode, an anode, and an electrolyte and is used to store and release electrical energy.
(e) “Battery management hierarchy” means a hierarchy of battery management wherein the entity in possession of the battery shall first strive to reuse, repair, or remanufacture batteries when possible and cost effective. When that is not possible or cost effective, that entity shall ensure that the battery is either repurposed or recycled. If a battery can no longer be cost-effectively used in any application, that entity shall ensure the batteries are recycled.
(f) “Battery supplier” means all of the following:
(1) A person who initially sells, offers for sale, or distributes a battery into the state, including a vehicle manufacturer licensed pursuant to Section
11701 of the Vehicle Code, or a vehicle traction battery manufacturer, who sells, offers for sale, or distributes a vehicle traction battery in or into the state under the person’s own name or brand. A vehicle manufacturer shall be considered a battery supplier with respect to vehicle traction batteries included in its vehicles that are sold in this state and with respect to replacement vehicle traction batteries provided, directly or indirectly, by the manufacturer to dealers in the state.
(2) If there is no vehicle manufacturer licensed pursuant to Section 11701 of the Vehicle Code, or no other person in the state who is the battery supplier for purposes of paragraph (1), the battery supplier is the owner or licensee of a brand or trademark under which the battery is sold or distributed into the state, whether or not the trademark is registered. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to
use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the battery.
(3) If there is no person in the state who is the battery supplier for purposes of paragraph (1) or (2), the battery supplier is the person that imports the battery into the state for sale, distribution, or installation.
(4) If there is no other person in the state who is the battery supplier for the purpose of paragraph (1), (2), or (3), the battery supplier is the distributor, retailer, dealer, or wholesaler who sells the battery in or into the state.
(5) For purposes of this article, the sale of a battery shall be deemed to occur in the state if the battery, or the vehicle containing the battery, is delivered to a licensed dealer, as defined in Section 285 of the Vehicle
Code, or to the consumer in the state.
(6) “Battery supplier” does not include a secondary handler who sells, offers for sale, or distributes a battery in or into the state.
(g) “Brand” means a name, symbol, word, or mark that identifies a vehicle traction battery rather than its components, and attributes the vehicle traction battery to the owner or licensee of the brand as the battery supplier.
(h) “Dealer” has the same definition as in Section 285 of the Vehicle Code.
(i) “Department” means the Department of Toxic Substances Control.
(j) “Motor vehicle” has the same definition as in Section 415 of the Vehicle Code.
(k) “Orphaned battery” means a battery for which the battery supplier, owner, or manufacturer cannot be identified or is no longer doing business.
(l) “Qualified facility” means a qualified battery recycler or secondary user of a battery.
(m) (1) “Qualified battery recycler” means an entity or facility that is certified by the department, abides by all applicable federal, state, and local laws, and does either of the following:
(A) Collects, sorts, separates, and refines the elemental components of end-of-life traction batteries or battery materials and refines the elemental components back to usable battery intermediary components or battery chemicals that include, but are not limited to, nickel sulfates, cobalt sulfate, and lithium salts.
(B) Extracts and separates a composition of elemental components that include, but are not limited to, lithium compounds, cobalt, nickel, copper, aluminum, iron, manganese, and graphite, and sends the material for further processing or refining to another qualified recycling facility.
(2) The term “qualified battery recycler” does not include entities or facilities that are only engaged in the collection or logistics of moving materials for recycling or household hazardous waste collection facilities and solid waste enterprises that are only engaged in the collection and transportation of vehicle traction batteries for subsequent reuse, processing, recycling, or disposal.
(3) An entity or facility can be deemed a “qualified battery recycler” even if it relies on separate entities for the collection and sorting of
batteries, provided it fulfills the requirements stated in subparagraphs (A) and (B) of paragraph (1).
(4) When determining the requirements for a qualified battery recycler, the department’s regulations shall encourage recycling that minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts. The regulations shall include criteria to exclude recycling technologies that produce significant amounts of hazardous waste.
(n) “Recycle” or “recycling” means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ultimately be disposed of onto land or into water or the atmosphere, and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products that meet the
quality standards necessary to be used in the marketplace.
(o) “Remanufacturing” means the process of refurbishing battery modules or packs through the replacement of worn or deteriorated components to same-as-new, or better, condition and performance.
(p) “Repurposing” means the process of refurbishing vehicle traction battery components or packs to fulfill a different use than what was originally intended, such as secondary use.
(q) “Repair” means the process of fixing or replacing components of the battery to restore the battery to operational condition.
(r) “Salvage disposal auction” has the same definition as in Section 24020 of the Vehicle Code.
(s) “Secondary handler” means any
entity, other than the vehicle manufacturer or a secondary user, that takes possession of a battery permanently removed from the vehicle or that permanently removes a battery from the vehicle for purposes, including, but not limited to, repair, remanufacturing, and recycling.
(t) “Secondary user” means an entity that repurposes a battery to fulfill a different use than what was originally intended.
(u) “State of health” or “battery state of health” has the meaning set forth in Section 1962.5(c)(4)(A)4. c. to e., inclusive, of Title 13 of the California Code of Regulations.
(v) “Stranded battery” means a vehicle traction battery in which the costs associated with recycling the battery present a burden for the owner of the vehicle or an entity that has removed the battery from the vehicle.
(w) “Vehicle manufacturer” has the same definition as in Section 672 of the Vehicle Code.
(x) “Vehicle traction battery” or “battery” means an advanced battery technology used as a traction battery to propel a motor vehicle that is required to be registered pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, including the individual components and cells that comprise a battery pack. This definition does not include a “lead-acid battery,” as defined in subdivision (f) of Section 25215.1 and does not include any battery less than seven kilowatthours.
25235.1.
All vehicle traction batteries in the state shall be recovered and, when possible, reused, repaired, repurposed, or remanufactured, and all vehicle traction batteries shall eventually be recycled at the end of their useful life, as provided in this article 25235.2.
(a) A battery supplier shall do the following:(1) Ensure the responsible end-of-life management of a vehicle traction battery under the following circumstances:
(A) If a battery is removed from a vehicle that is still in service, while the battery is still under warranty, pursuant to state and federal laws.
(B) If a battery is offered or returned to its battery supplier. “Returned to its battery supplier” for purposes of this section may include sending a battery to a qualified facility determined by the battery supplier.
(2) Adhere to the
battery management hierarchy for any vehicle traction batteries in their possession.
(3) Report information regarding the sale, transfer, or receipt of a vehicle traction battery or module to the department pursuant to subdivision (b) of Section 25235.3. This shall include the initial sale or delivery of a vehicle traction battery into the state, either within a vehicle or separately.
(4) (A) Fully fund the cost of collection of a battery for which they are required to ensure responsible end-of-life management pursuant to paragraph (1).
(B) A battery supplier may require a secondary handler in possession of a vehicle with the traction battery installed who wishes to return the battery to the battery supplier to send the vehicle back to the battery supplier or to a qualified facility determined
by the battery supplier, subject to agreement on compensation. In this case, the battery supplier shall be responsible for the cost to transport the vehicle from the secondary handler to the battery supplier or to a qualified facility subject to the contractual relationship established between the qualified facility and the battery supplier, and shall pay the fair market value of that vehicle in its current condition. If the secondary handler and the battery supplier do not agree on the fair market value for the vehicle, the battery supplier remains obligated for the responsible end-of-life management of the battery pursuant to paragraph (1) and shall be responsible for the cost of transport without the vehicle.
(5) Ensure battery state of health data that is easily interpretable and accessible to secondary handlers and secondary users, either while the battery is inside the vehicle or, if feasible, pursuant to paragraph (4) of subdivision (b)
of Section 25235.3, once it has been removed.
(b) A secondary user shall do all of the following:
(1) Adhere to the battery management hierarchy.
(2) If the battery has been removed from the secondary application to which the vehicle traction battery has been used and is at the end of its useful life, do either of the following:
(A) Ensure the responsible end-of-life management for a battery.
(B) Return a vehicle traction battery to the battery supplier if the secondary user is in a contractual relationship with the original battery supplier, which provides for the retention of responsibility for the end-of-life management of the battery by the primary battery supplier.
(3) Report information regarding the sale, transfer, or receipt of a vehicle traction battery or module to the department pursuant to subdivision (b) of Section 25235.3.
(c) A secondary handler in possession of a battery that has been removed from the vehicle shall:
(1) Adhere to the battery management hierarchy.
(2) Ensure the responsible end-of-life management of the battery or return the battery to a battery supplier. If the battery supplier requires a battery to be returned within the vehicle from which it was removed, the secondary handler shall return the vehicle and be compensated at fair market value if that value is agreed upon pursuant to paragraph (4) of subdivision (a).
(3) Report
information regarding the sale, transfer, or receipt of a vehicle traction battery or module to the department pursuant to subdivision (b) of Section 25235.3. If a secondary handler receives a vehicle from a salvage disposal auction that has not reported the unique identifier to the department pursuant to subdivision (b) of Section 25235.3, the secondary handler shall report the unique identifier, along with the vehicle identification number, within 30 days of receiving the vehicle.
(d) An auctioneer and salvage disposal auction shall report information regarding the sale or transfer of a vehicle containing a vehicle traction battery to the department pursuant to subdivision (b) of Section 25235.3.
(e) A qualified facility shall do both of the following:
(1) Be certified by the department pursuant to subdivision (e)
of Section 25235.3.
(2) Report to the department pursuant to subdivision (b) of Section 25235.3 any battery it receives that has been removed from a vehicle.
(f) For the purposes of this section, “responsible end-of-life management” means ensuring a vehicle traction battery that cannot be repaired, reused, remanufactured, or repurposed is ultimately sent to a qualified battery recycler pursuant to the battery management hierarchy. This may include initial processing by secondary handlers if the material is ultimately sent to a qualified battery recycler.
25235.3.
(a) The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement and enforce this article with an effective date no later than July 1, 2028.(b) The regulations shall include a method and form for battery suppliers, secondary users, secondary handlers, auctioneers, salvage disposal auctions, and qualified facilities to report the sale, transfer, or receipt of a vehicle traction battery, or the individual module if these components are removed from a battery prior to
receipt by a qualified battery recycler. This shall include the initial sale or delivery of a vehicle traction battery into the state, either within a vehicle or separately, and when a vehicle containing a vehicle traction battery is sold by an auctioneer.
(1) The reporting system shall include vehicle traction batteries shipped out of the state and exported to other countries.
(2) The reporting system shall include a unique identifier for each battery. The unique identifier shall be consistent with and in addition to any applicable automotive battery labeling regulations adopted by the State Air Resources Board on or after August 1, 2022. For batteries installed in the vehicle by the vehicle manufacturer, the department shall consider utilizing all or part of the vehicle identification number of the vehicle as the unique identifier.
(3) The reports shall include the date the battery was sold, transferred, or received, the name of the entity selling or transferring the battery and the name of the entity receiving it, the battery’s unique identifier, and, if the battery has been removed from the vehicle or is subject to paragraph (4) of subdivision (a) of Section 25235.2, whether the battery will be repaired, reused, remanufactured, repurposed, or recycled. The regulation shall include criteria for when a battery’s unique identifier is not required to be reported, including when it is not present or not possible to access.
(A) When a vehicle containing a vehicle traction battery is sold by a salvage disposal auction, the salvage disposal auction shall be required to report the unique identifier for each battery only if the battery’s unique identifier is present and reasonably accessible through visible inspection of
the vehicle without removing parts or dismantling the vehicle.
(B) If the salvage disposal auction cannot access the unique identifier, the salvage disposal auction shall instead include the vehicle identification number and inform the buyer of the vehicle that this information was not reported to the department and of the buyers responsibility to report the unique identifier within 30 days of receiving the vehicle.
(4) For purposes of facilitating the potential reuse, repurpose, or remanufacture of a battery pursuant to the battery management hierarchy, the department may consider requiring battery suppliers to report a battery’s state of health if it determines that there is a feasible, safe, and cost-effective way to do so and that there is adequate training and education among battery suppliers and secondary users to safely assess battery state of health. At least 12 months
prior to doing so, the department shall conduct a public workshop and seek input from stakeholders. For the purposes of this section, “battery state of health” is defined as the remaining capacity measured in kilowatts of a battery.
(5) The department may require qualified battery recyclers to report where treatment of batteries takes place along with data on recycling efficiency for waste batteries, recovery of materials from waste batteries, and the yield of the final output fractions of lithium, cobalt, nickel, and copper.
(c) The regulations shall include a process and criteria for determining how the department will assign costs for implementing this article to each battery supplier.
(d) Annually, the department shall publicly post on the department’s internet website aggregated data on the disposition of
batteries removed from vehicles, including data on the number of batteries sold or distributed for reuse, remanufacturing, repurposing, and recycling. The department shall not disclose proprietary or confidential information.
(e) The regulations shall include a process for certifying qualified battery recyclers, including an appeals process, a reasonable standard of review, and the ability for entities to cure identified deficiencies and be reevaluated for certification. The process may include, but not be limited to, the following:
(1) Requiring certified, qualified battery recyclers to demonstrate that employees undergo mandatory safety training to ensure the proper management and recycling of batteries. The department may require, develop, or select appropriate training modules for this purpose or may allow a recycler to submit its own safety training plan for approval.
(2) Establish criteria regarding benefits to the environment and minimization of risks to public health and worker health and safety.
(f) If the federal government creates a battery labeling requirement, the department shall review, evaluate, and compare the federal requirements to those established under this article. It shall, if necessary, revise the regulations pursuant to paragraph (2) of subdivision (b) to ensure consistency and achieve greater efficiency and feasibility. Any revisions shall continue to ensure batteries can be uniquely identified to meet the requirements of this article. If deemed necessary, the department may update the reporting system established under subdivision (b).
25235.4.
(a) No later than 30 days after the effective date of the regulations adopted pursuant to subdivision (a) of Section 25235.3, each battery supplier shall provide to the department, in a form and manner established by the department, the battery supplier’s contact information, including their name, physical and mailing address, email address, and telephone number, and a list of vehicle traction battery types and brands of vehicle traction batteries that the battery supplier sells, distributes for sale, imports for sale, or offers for sale in or into the state.(b) A battery supplier shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year, and upon request of the
department.
(c) (1) A battery supplier may not sell, offer for sale, import, or distribute a vehicle traction battery in the state unless the vehicle traction battery has been reported to the department pursuant to subdivision (b) of Section 25235.3.
(2) If an entity does not meet the definition of a battery supplier and is not subject to this article but, at any point, meets the definition of a battery supplier, the entity shall comply with the requirements of this article prior to beginning to sell, offer for sale, import, or distribute vehicle traction batteries in the state.
(d) A battery supplier is not in compliance with this article and is subject to penalties pursuant to Section 25235.11 if, commencing two years from the effective date of regulations adopted pursuant to Section 25235.3,
a vehicle traction battery sold or offered for sale by the battery supplier is not accounted for in the reports to the department made pursuant to subdivision (b) of Section 25235.3.
25235.5.
(a) Within four months of the effective date of the regulations implementing this article, the department shall notify the battery supplier of the estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Sections 25235.3 and 25235.8, which includes full personnel costs, as related to implementing and enforcing this article. This shall include the costs associated with regulation development and other startup activities.(b) Failure of a battery supplier, or its respective agent who holds records, to produce documents or data that is requested by the department as part of a department audit, or review of a third-party audit, constitutes a violation of this article.
(c) The battery supplier shall, on a schedule determined by the department, pay the department’s actual and reasonable regulatory costs to implement and enforce this article.
(d) (1) The department shall deposit all moneys received from the battery supplier pursuant to this section into the Vehicle Traction Battery Recovery Fund, which is hereby established in the State Treasury.
(2) Upon appropriation by the Legislature, moneys in the Vehicle Traction Battery Recovery Fund shall be expended to implement and enforce this article, as well as to reimburse any standing loans made from other funds used to finance the regulation and startup costs of the department’s activities pursuant to this article.
(3) The moneys in the Vehicle
Traction Battery Recovery Fund shall not be expended for any other purpose.
(4) Upon appropriation by the Legislature, the Director of Finance may make a loan from the Greenhouse Gas Reduction Fund to the Vehicle Traction Battery Recovery Fund to meet regulatory and startup costs of the department’s activities pursuant to this article.
25235.6.
(a) A battery supplier, a secondary user, a secondary handler, or a qualified facility shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.
(2) Upon request, within 14 days, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.
(b) The records required by this article shall be maintained and accessible for five years. All reports and records provided to the
department pursuant to this article shall be provided under penalty of perjury.
(c) (1) The department may impose civil penalties pursuant to Section 25235.11 on a battery supplier, a secondary user, a secondary handler, or a qualified facility that fails to provide the department with the access required pursuant to this section.
(2) The department may post a notice on the department’s internet website that a battery supplier that fails to provide the department with access pursuant to this section is no longer in compliance with this article.
25235.7.
(a) A person seeking to discard a stranded battery may deliver the battery or the vehicle that contains the battery, or may otherwise arrange for the collection and delivery of the battery or vehicle to:(1) A location designated by the battery supplier.
(2) A qualified battery recycler that has been certified by the department to handle, transport, and properly manage batteries.
(b) A battery supplier shall not refuse to recover a battery that it has manufactured, branded, imported, or embedded into a product in the state. The battery supplier shall provide responsible end-of-life management of a battery
returned pursuant to this article. This article does not apply to the original battery supplier of a battery that has been repurposed, branded, imported, retailed, or embedded into a product application by a secondary user, unless the secondary user is in a contractual relationship with the original battery supplier pursuant to Section 25235.2.
25235.8.
(a) (1) The department shall conduct a study to determine whether there is evidence of abandonment of orphaned batteries leading to environmental and health and safety hazards and analyze any trends in the prevalence of stranded batteries.(2) The department shall revise the regulations adopted pursuant to Section 25235.3 in order to include requirements for battery suppliers and secondary users to address the issue of orphaned batteries if determined necessary by the department.
(b) On or before January 1, 2030, and every three years thereafter, the department shall post the results of its findings pursuant to subdivision (a) on its internet website.
The department may include recommendations to improve the program established in this article.
25235.9.
This article does not exempt a secondary handler from applicable licensing and certification requirements of the Department of Motor Vehicles and the Bureau of Automotive Repair. This section is declaratory of existing law. 25235.10.
(a) Within 12 months of the effective date of the regulations and on or before July 1 of each year thereafter, the department shall publish on the department’s internet website, a list of the names of battery suppliers that are compliant with this article. The department shall list, as appropriate, the reported brands of vehicle traction batteries for each battery supplier.(b) (1) A retailer, dealer, importer, or distributor shall monitor the department’s internet website to determine if a battery supplier, brand, or vehicle traction battery is in compliance with this article for that brand of battery.
(2) A retailer, dealer, importer, or distributor
shall not sell, distribute, offer for sale, or import a vehicle traction battery, manufactured on or after the publishing of the most recent list, in or into the state unless the battery supplier of the vehicle traction battery is listed as a compliant battery supplier.
(3) This shall not apply to secondary handlers who return a battery to the vehicle from which it was removed and return that vehicle to its owner after repairs or other maintenance have been completed.
(4) If a vehicle manufacturer, or affiliate thereof, delivers to a dealer a vehicle or battery that cannot be sold pursuant to this article, upon request from the dealer, the vehicle manufacturer, or affiliate thereof, shall buy back the vehicle or battery at the dealer’s cost. For this paragraph, “affiliate” shall have the same meaning as subdivision (z) of Section 11713.3 of the Vehicle Code.
(c) Notwithstanding any other provision of this article, upon identification of a noncompliant battery supplier, the department shall issue a notice of noncompliance to the battery supplier.
(d) If the department determines a battery supplier is not in compliance with this article, the department shall remove the battery supplier, along with its brands of vehicle traction batteries, from the compliance list.
(e) A battery supplier that is not listed on the department’s internet website that demonstrates compliance with this article before the next list is posted by the department shall be added to the internet website list within five business days of becoming compliant.
25235.11.
(a) The department may impose civil or administrative penalties for a violation of this article pursuant to Article 8 (commencing with Section 25180).(b) A violation of this article is not subject to the criminal penalties set forth in Article 8 (commencing with Section 25180).