Bill Text: CA AB2886 | 2021-2022 | Regular Session | Amended
Bill Title: Recycling: electric vehicle lithium-ion batteries.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-04-06 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2886 Detail]
Download: California-2021-AB2886-Amended.html
|
Amended
IN
Assembly
March 24, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 2886
| Introduced by Assembly Member Lee |
February 18, 2022 |
LEGISLATIVE COUNSEL'S DIGEST
AB 2886, as amended, Lee.
Coastal protection: findings and declarations. Recycling: electric vehicle lithium-ion batteries.
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. The act 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 at no cost to the consumer of a used rechargeable battery of the type or brand that the retailer sold or previously sold.
This bill would require producers, as defined, of electric vehicle lithium-ion batteries to establish a stewardship program
for electric vehicle lithium-ion batteries, either individually or through the creation of one or more stewardship organizations. The bill would require a stewardship organization or producer, on or before June 30, 2026, to submit to the Department of Resources Recycling and Recovery a stewardship plan for the collection, transportation, and recycling, and the safe and proper management, of electric vehicle lithium-ion batteries that are out of warranty in the state. The bill would require the plan to include specified elements, including consultation with an advisory body, which the bill would require the department to create, a collection system for electric vehicle lithium-ion batteries that are out of warranty with a specified minimum distribution of collection sites, and a funding mechanism to provide sufficient funding for implementation of the plan. The bill would provide for review and approval of the stewardship plan by the department and any other state agency with relevant jurisdiction and would
require the stewardship organization or producer to fully implement its stewardship program on or before June 30, 2027.
The bill would require a stewardship organization or producer to annually be audited and submit a report and budget to the department, as prescribed, and would require a stewardship organization, producer, manufacturer, distributor, retailer, importer, recycler, or collection site to, among other things, provide the department with relevant records necessary to determine compliance with the bill. The bill would require reports and records provided to the department pursuant to the bill to be provided under penalty of perjury, thereby creating a state-mandated local program by expanding the crime of perjury. The bill would restrict public access to certain information collected for the purpose of administering a stewardship program.
The bill would require the department, on or before July 1, 2027, and each
year thereafter, to post on its internet website a list of producers, brands, and electric vehicle lithium-ion batteries that are in compliance with the bill. The bill would prohibit a retailer or distributor from selling, distributing, offering for sale, or importing an electric vehicle lithium-ion battery in or into the state unless the producer of the electric vehicle lithium-ion battery is listed as in compliance on that list for that brand and electric vehicle lithium-ion batteries, except as specified.
The bill would require a stewardship organization or producer to quarterly reimburse the department and any other relevant state agency for their respective reasonable regulatory costs that are directly related to implementing and enforcing the bill in relation to the stewardship organization’s or producer’s activities. The bill would require the department and each state agency to deposit those moneys into the Electric Vehicle Lithium-Ion Battery Recycling
Fund, which the bill would establish, and would authorize the department and any other relevant state agency to expend those moneys, upon appropriation by the Legislature, to administer and enforce the stewardship program.
The bill would provide for enforcement of its provisions, including authorizing the department to impose an administrative civil penalty on a stewardship organization, producer, manufacturer, distributor, retailer, importer, recycler, or collection site in violation of the bill not to exceed $10,000 per day, unless the violation is intentional, knowing, or reckless, then in that case not to exceed $50,000 per day. The bill would require the department to deposit those moneys into the Electric Vehicle Lithium-Ion Battery Recycling Penalty Account, which the bill would establish in the fund, and would require the department to expend those moneys, upon appropriation by the Legislature, to administer and enforce the stewardship program. The bill
would require the department, by January 1, 2025, and in consultation with the Department of Toxic Substances Control, to adopt regulations to implement the bill.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a
specified reason.
Existing law, the California Coastal Act of 1976, provides for the protection of California’s coast and requires any person wishing to perform or undertake any development in the coastal zone, as defined, to obtain a coastal development permit, except as specified. The act makes various findings and declarations regarding the need to preserve the state’s natural and scenic resources along the coast and ensure that development in the coastal zone is carefully planned and regulated.
This bill would make nonsubstantive changes to those findings and declarations.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 7.9 (commencing with Section 42430) is added to Part 3 of Division 30 of the Public Resources Code, to read:CHAPTER 7.9. Electric Vehicle Lithium-Ion Battery Recycling
Article 1. General Provisions
42430.
(a) The Legislature finds and declares both of the following:(1) In order to reduce incidents of fires and illegal dumping, increase recycling, and substantially reduce public agency costs for the end-of-life management of discarded electric vehicle lithium-ion batteries, this act is hereby established to require producers of electric vehicle lithium-ion batteries offered for sale or sold in this state to develop, finance, and implement a convenient and cost-effective stewardship program to recover and recycle electric vehicle lithium-ion batteries that are out of warranty.
(2) In order to promote a circular economy, electric vehicle lithium-ion batteries that are out of
warranty should enter a recycling process at end of life, and the incorporation of the resulting material residuals into new products should be pursued to the extent that it is economically and technically feasible.
(b) Both of the following are the intent of the Legislature in enacting this chapter:
(1) That consumers have the opportunity to drop off their waste electric vehicle lithium-ion batteries that are out of warranty free of charge, and that the program established by this chapter leverages existing local infrastructure.
(2) To prioritize the use of in-state processing facilities over the use of out-of-state processing facilities to the extent economically practical.
42430.2.
For purposes of this chapter, the following definitions apply:(a) “Annual report” means the annual report required pursuant to Section 42434.2.
(b) “Collection site” means a permanent or temporary location at which electric vehicle lithium-ion batteries are collected and prepared for transport in accordance with the requirements of this chapter.
(c) “Consumer” means an owner of an electric vehicle lithium-ion battery, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of an electric vehicle lithium-ion battery.
(d) “Distributor” means a company that has a contractual relationship with one or more producers to market and sell electric vehicle lithium-ion batteries to retailers.
(e) “Importer” means a person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of an electric vehicle lithium-ion battery sold in or into the state that was manufactured or assembled by a company outside the United States. “Importer” includes a person importing an electric vehicle lithium-ion battery sold in or into the state that was manufactured or assembled by a company outside the state.
(f) “Material recovery rate” means the ratio of the weight of a specific material recovered from electric vehicle lithium-ion batteries received by a battery recycler to the
original weight of that material in the electric vehicle lithium-ion batteries received by the battery recycler.
(g) (1) “Performance goal” means a metric proposed in a stewardship plan to measure, on an annual basis, the performance of that plan, taking into consideration technical feasibility and economic practicality, in achieving a collection rate determined by the department. “Performance goal” includes annual target collection rates, material recovery rates, target recycling efficiencies by recycling process, and goals for public awareness, convenience, and accessibility.
(2) Using the most current science, monitoring, collection technology, data collection, and other best management practices, the department shall develop a performance goal that maximizes the diversion of electric vehicle lithium-ion batteries from the waste stream and that minimizes
health and safety concerns.
(h) (1) (A) “Producer” means the person who manufactures the electric vehicle lithium-ion battery and who sells, offers for sale, or distributes the electric vehicle lithium-ion battery in or into the state.
(B) If there is no person who is the producer of the electric vehicle lithium-ion battery for purposes of subparagraph (A), the producer of the electric vehicle lithium-ion battery is the person who imports the electric vehicle lithium-ion battery in or into the state for sale or distribution.
(C) If there is no person who is the producer for purposes of subparagraphs (A) and (B), the producer is the person who sells the electric vehicle lithium-ion battery in or into the state.
(2) A producer does not include a person who annually sells, offers for sale, distributes, or imports in or into the state electric vehicle lithium-ion batteries with a total annual retail value of less than ____ dollars ($____) or less than ____ units.
(i) “Recycler” includes both of the following:
(1) A person who engages in the manual or mechanical separation of electric vehicle lithium-ion batteries to recover components and commodities contained in the electric vehicle lithium-ion batteries for the purpose of recycling.
(2) A person who changes the physical or chemical composition of electric vehicle lithium-ion batteries, in accordance with the requirements of Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and the regulations adopted pursuant to that
chapter, by deconstructing, reducing the size, crushing, cutting, sawing, compacting, shredding, or refining for purposes of segregating and recovering or recycling components, and who arranges for the transport of those components to an end user.
(j) “Recycling” means using, reusing, or reclaiming a recyclable material.
(k) “Recycling efficiency rate” means the ratio of the weight of resources recovered from electric vehicle lithium-ion batteries received by a battery recycler to the weight of electric vehicle lithium-ion batteries received by the battery recycler.
(l) “Retailer” means a person who sells electric vehicle lithium-ion batteries in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
“Retailer” does not include a person selling electric vehicle lithium-ion batteries with a total annual retail value of less than ____ dollars ($____) or less than ____ units.
(m) “Sale” or “sell” means the transfer of title of electric vehicle lithium-ion batteries for consideration, including by a manufacturer, a distributor, or a retailer, for eventual consumption to a consumer in the state. “Sale” or “sell” includes both of the following:
(1) Remote sales conducted through sales outlets, catalogs, the internet, or any electronic means.
(2) A long-term lease of not less than 12 months.
(n) “Stewardship organization” means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec.
501(c)(3)) that is established by a group of producers in accordance with Section 42431 to develop, implement, and administer a stewardship program.
(o) “Stewardship plan” or “plan” means the plan for the collection, transportation, and recycling, and the safe and proper management, of electric vehicle lithium-ion batteries that are out of warranty that is developed by a stewardship organization or producer pursuant to this chapter.
(p) “Stewardship program” means a program established by a producer or stewardship organization for the free and convenient collection, transportation, and recycling, and the safe and proper management, of electric vehicle lithium-ion batteries that are out of warranty pursuant to a stewardship plan approved by the department.
Article 2. Producers and Stewardship Organizations for Electric Vehicle Lithium-Ion Batteries
42431.
(a) Producers may establish one or more stewardship organizations composed of producers to develop, implement, and administer the electric vehicle lithium-ion battery recycling program established pursuant to this chapter.(b) (1) A producer shall comply with this chapter either individually or through a stewardship organization established pursuant to subdivision (a).
(2) A producer shall not sell, distribute, offer for sale, or import an electric vehicle lithium-ion battery in or into this state unless the producer is in compliance with this chapter.
(c) Each producer covered under a
stewardship organization shall register with that stewardship organization.
(d) To obtain a determination that a person is not a producer under this chapter, the person shall request an exemption through the form and manner determined by the department and provide the necessary data required for the department to make this determination.
Article 3. Stewardship Plan for Electric Vehicle Lithium-Ion Batteries
42432.
No later than April 1, 2023, a producer shall register with the department and shall provide to the department a list of electric vehicle lithium-ion batteries that it sells or offers for sale in the state.42432.1.
On or before June 30, 2026, a producer, or a stewardship organization on behalf of a group of producers, shall develop and submit to the department a stewardship plan for the collection, transportation, and recycling, and the safe and proper management, of electric vehicle lithium-ion batteries that are out of warranty in the state in an economically efficient and practical manner. The stewardship plan shall include all of the following goals and elements:(a) The names of producers, distributors, importers, brands, and electric vehicle lithium-ion batteries covered under the stewardship plan.
(b) A consultation process with the advisory body created pursuant to subdivision (b) of Section
42432.4 to receive advice on the development and implementation of the plan.
(c) A free and convenient collection system for electric vehicle lithium-ion batteries that are out of warranty that achieves a collection rate determined by the department. The system shall include all of the following:
(1) (A) A minimum distribution of collection sites to be achieved collectively statewide to appropriately serve the population distribution in a county, with no fewer than five collection sites per county and no fewer than one collection site per population of 10,000 persons.
(B) The department may adjust the minimum required collection sites to ensure that consumers have sufficient convenient access to collection sites.
(2) A reasonable
geographic spread of collection sites, including an explanation of the distribution.
(3) A retailer, where feasible, shall serve as an authorized collector as part of a stewardship program in the county in which it is located. If the minimum thresholds described in paragraphs (1) and (2) are not met in each county in which a retail chain has store locations, the retail chain shall have at least one location or ____ percent of its store locations, whichever is greater, in that county serve as authorized collectors in a stewardship program.
(4) (A) A producer or stewardship organization shall include as a collection site under its stewardship program any entity that offers in writing to participate in the stewardship program in return for reasonable compensation to the entity pursuant to paragraphs (5) and (6), even if the minimum thresholds described in
paragraphs (1) and (2) have been achieved.
(B) A producer or stewardship organization shall include the offering entity as a collection site in the program within 90 days of receiving the written offer to participate. The producer or stewardship organization shall not be required to respond to offers pursuant to this paragraph until its stewardship plan has been approved by the department.
(5) A producer or stewardship organization shall allow a consumer to drop off, at no charge, electric vehicle lithium-ion batteries that are out of warranty at a collection site and shall provide for the payment to a collection site that accepts electric vehicle lithium-ion batteries that are out of warranty in an amount determined by the collection site and producer or stewardship organization that is reasonable for accepting, handling, collecting, storing, and transporting electric vehicle
lithium-ion batteries that are out of warranty.
(6) A producer or stewardship organization shall reimburse collection sites for all actual costs of collection and compliant management of electric vehicle lithium-ion batteries that are out of warranty related to collection sites providing free electric vehicle lithium-ion battery dropoff services to consumers, including equipment, training, storage and floor space costs, signage, certifications and safety inspections, education materials and programs, personnel, or other costs associated with implementing this section.
(7) A producer or stewardship organization may suspend or terminate a collection site or service that does not adhere to the collection site criteria in an approved plan.
(8) A collection site shall be staffed and operated to ensure that electric
vehicle lithium-ion batteries are safely collected and handled.
(d) (1) The establishment and administration of a means for fully funding the stewardship program in a manner that equitably distributes the stewardship program’s costs.
(2) The funding mechanism shall provide sufficient funding for the producer or stewardship organization to implement the plan, including the administrative, operational, and capital costs of the plan and the department’s and any other relevant state agency’s administrative costs pursuant to Section 42433.4.
(e) (1) A description of how electric vehicle lithium-ion batteries will not be landfilled and how all discarded electric vehicle lithium-ion batteries will enter a recycling process.
(2) A description of how discarded electric vehicle lithium-ion battery residual materials will be, to the extent economically and technically feasible, recycled.
(f) A program performance measurement to collect program data for the purpose of the annual report, which shall include all of the following:
(1) Data and the method of analysis necessary for demonstrating how the stewardship program’s performance goals will be achieved and measured.
(2) A methodology for all of the following:
(A) Determining the amount of electric vehicle lithium-ion batteries sold in the state by the stewardship organization or producer operating the stewardship program.
(B) Determining the amount of discarded electric vehicle lithium-ion batteries available for collection in the state by the stewardship organization or producer operating the stewardship program.
(C) Quantifying the number of electric vehicle lithium-ion batteries collected and recycled in the state by the stewardship organization or producer operating the stewardship program.
(3) A methodology for determining the amount of electric vehicle lithium-ion batteries sold in the state by each producer registered with the stewardship organization, if applicable.
(g) Coordination with, and a description of methods used to coordinate activities with, all of the following, with regard to the proper management or recycling of discarded electric vehicle lithium-ion
batteries, for purposes of providing the efficient delivery of services and avoiding unnecessary duplication of effort and expense:
(1) Other stewardship programs.
(2) Existing electric vehicle lithium-ion battery collection and recycling programs, including electronic waste recyclers and dismantlers.
(3) Other relevant parties, as appropriate.
(h) Entering into contracts or agreements, which may include contracts and agreements with existing nonprofit or for-profit recyclers, that are necessary and proper for the stewardship organization or producer to carry out its duties in accordance with this chapter.
(i) Developing strategies, in consultation with the California Environmental
Protection Agency’s Environmental Justice Task Force and other relevant parties, for collecting electric vehicle lithium-ion batteries for recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.
(j) Providing outreach and education programs to consumers, manufacturers, distributors, and retailers to promote the collection and recycling of electric vehicle lithium-ion batteries and options available to consumers for the free collection of electric vehicle lithium-ion batteries that are out of warranty. The programs shall maximize the goals to remove electric vehicle lithium-ion batteries from the waste stream, keep facilities safe, and improve the recycling market. Consumer-facing programs shall support all California communities, and may deploy community-based organizations to support regions with low rates of recycling.
(k) Goals for public awareness, including the implementation of annual consumer awareness studies.
(l) Developing strategies in coordination with other stewardship programs on proper labeling of electric vehicle lithium-ion batteries to ensure proper collection and recycling, including, but not limited to, a uniform color, design, and labeling scheme for electric vehicle lithium-ion batteries.
(m) A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the plan objectives can be carried out in the absence of a plan, either by the stewardship organization or producer, or through an entity such as an escrow company.
(n) Any other information requested by the department that
is reasonably related to compliance with the plan and that the producer or stewardship organization can reasonably compile.
42432.2.
(a) During the 2028 calendar year, and at least once every five years thereafter, a producer or stewardship organization shall review the stewardship plan and determine whether revisions to the plan are necessary.(b) If a producer or stewardship organization determines revisions to the plan are necessary, it shall submit a revised plan, subject to the approval process in Section 42432.6.
(c) If a producer or stewardship organization determines that no revisions to the plan are necessary, it shall send a letter to the department explaining that the producer or stewardship organization has reviewed the plan and determined no revisions are needed. The department may
disapprove the producer’s or stewardship organization’s determination within 30 days of that determination if the department concludes that the producer or organization cannot implement the objectives of this chapter without revising the plan.
42432.4.
(a) In preparing the stewardship plan pursuant to Section 42432.1, and any updates to the plan pursuant to Section 42432.2, the producer or stewardship organization shall consult with interested stakeholders, which shall include, but not be limited to, local government representatives, recyclers, retailers, distributors, and solid waste industry representatives.(b) (1) The department shall create an advisory body for electric vehicle lithium-ion battery stewardship that includes, but is not limited to, representatives from local governments, recyclers, retailers, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, consumer advocates, and the solid
waste industry.
(2) Participation on the advisory body shall be voluntary.
(3) The advisory body is not a state body for purposes of Section 11121 of the Government Code.
42432.6.
(a) (1) At least 90 days before submitting a stewardship plan to the department, a producer or stewardship organization shall submit its proposed stewardship plan to any applicable state agencies with areas of authority relative to the stewardship plan.(2) A state agency that receives a plan shall review the plan for compliance with state and federal laws and regulations related to the agency’s respective authority. The agency shall determine compliance or noncompliance with those laws and regulations and provide to the producer or stewardship organization that determination and an explanation for any finding of noncompliance, within 90 days of receipt of the plan.
(3) A producer or stewardship organization may submit an updated proposed plan to a state agency that issued a determination of noncompliance to attempt to obtain a determination of compliance. A producer or stewardship organization shall submit any determination received from an agency when it submits its stewardship plan to the department.
(4) If, 90 days after submitting a plan to a state agency, a producer or stewardship organization has not received a response from the state agency, the producer or stewardship organization may submit a certification to the department that the stewardship plan is consistent with all other applicable laws and regulations.
(b) The department may consult with, or submit a stewardship plan for review to, another state agency it determines is necessary to determine the completeness of the
stewardship plan or for making a determination on the approval of the stewardship plan or an amendment to the stewardship plan. The duration of time that the department takes to review a stewardship plan pursuant to this subdivision shall not count toward the 90-day time limit specified in subdivision (c).
(c) The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 90 days of receipt of the plan.
(d) If the department disapproves the plan pursuant to subdivision (c), the department shall explain, in writing, how the plan does not comply with this chapter, and the producer or stewardship organization shall resubmit a plan to the department. If the department finds that the plan resubmitted by the producer or stewardship organization does not comply with the requirements of this
chapter, the producer or stewardship organization shall not be deemed in compliance with this chapter until the producer or stewardship organization submits a plan that the department finds complies with the requirements of this chapter.
(e) On or before December 31, 2026, a producer or stewardship organization on behalf of a group of producers shall have a complete stewardship plan approved by the department.
(f) The approved plan shall be a public record, except that financial, production, or sales data reported to the department by the producer or stewardship organization is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7290.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial, production, or sales data in summary form only so the information cannot
be attributable to a specific producer or distributor or to any other entity.
42432.8.
(a) On or before June 30, 2027, a producer or stewardship organization shall fully implement its stewardship program.(b) All handling, collection, and transport of electric vehicle lithium-ion batteries undertaken as part of a stewardship program under this chapter shall comply with all applicable state and federal laws.
Article 4. Financial Provisions
42433.
(a) On or before June 30, 2026, and on or before June 30 of each year thereafter, a stewardship organization or producer shall prepare and submit to the department a proposed stewardship program budget for the next five calendar years that includes all of the following:(1) Anticipated revenues and costs of implementing the stewardship program, including related programs, projects, contracts, and administrative expenses. Administrative expenses shall include the department’s and other state agencies’ reasonable regulatory costs pursuant to Sections 42432.6 and 42433.4. For purposes of this paragraph, stewardship program implementation begins once the department approves a stewardship organization’s or producer’s stewardship plan.
(2) A recommended funding level sufficient to cover the plan’s budgeted costs and to operate the stewardship program in a prudent and responsible manner over a multiyear period. For purposes of this paragraph, stewardship program operation begins once the department approves a stewardship organization’s or producer’s stewardship plan.
(3) Any additional information that the department deems necessary to determine whether the budget meets the requirements of this chapter.
(b) A producer or stewardship organization shall not expend revenue from the stewardship program for either of the following purposes:
(1) To pay an administrative civil penalty pursuant to Section 42435.2.
(2) To pay costs
associated with litigation between the producer or organization and the state.
42433.2.
(a) Within 90 days of receipt, the department shall conditionally approve, approve, or disapprove a stewardship program budget. If the department fails to act or does not disapprove a final stewardship program budget, the budget shall be deemed approved.(b) (1) If the department conditionally approves or disapproves the budget, the stewardship organization or producer shall resubmit a revised budget addressing the department’s written reasons for the department’s decision within 30 days of the conditional approval or disapproval.
(2) The department, within 60 days from the date the stewardship organization or producer resubmits a revised budget,
shall approve or disapprove a final stewardship program budget. If the department fails to act or does not disapprove a final stewardship program budget within those 60 days, the budget shall be deemed approved.
(c) If the department disapproves a revised budget submitted pursuant to paragraph (1) of subdivision (b), the producer or stewardship organization may submit only one additional revised budget, subject to review in accordance with paragraph (2) of subdivision (b).
(d) Until a budget has been approved or deemed approved pursuant to this section, a stewardship organization or producer shall make expenditures consistent with the most recent approved budget until a new budget has been approved or deemed approved by the department.
42433.4.
(a) The department and state agencies with jurisdiction relevant to this chapter shall notify each stewardship organization, and each producer that is not part of a stewardship organization, of their respective reasonable regulatory costs that are directly related to implementing and enforcing this chapter in relation to the stewardship organization’s or producer’s activities. This may include the direct costs associated with regulatory development before submission of the stewardship plan pursuant to Section 42432.1.(b) On or before August 31, 2026, and once every three months thereafter, producers and stewardship organizations shall reimburse the department and any other state agency for incurred costs as described in subdivision
(a). The reimbursement shall not exceed the department’s or other state agency’s full reasonable regulatory costs to implement and enforce this chapter.
(c) The department and each state agency with jurisdiction relevant to this chapter shall deposit all moneys submitted for reimbursement costs by a stewardship organization or producer pursuant to this section into the Electric Vehicle Lithium-Ion Battery Recycling Fund, which is hereby established in the State Treasury. Upon appropriation by the Legislature, moneys in the fund shall be expended by the department and any other state agency with jurisdiction relevant to this chapter to administer and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance startup costs of the department’s and any other state agency’s activities pursuant to this chapter. The moneys collected pursuant to this section shall not be expended for any other
purpose.
42433.6.
(a) A stewardship organization or producer operating a stewardship program shall not maintain total program reserves exceeding 60 percent of its annual operating expenses, consistent with the requirements of the Financial Accounting Standards Board’s Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958), and any future updates to that standard.(b) The department, in approving the annual stewardship program budget, may authorize the total reserves to be increased to up to 75 percent of the stewardship organization’s or producer’s annual operating expenses if the department determines the increase is necessary to implement the requirements of this chapter.
(c) If a stewardship organization’s or producer’s reserves exceed the amount specified in subdivision (a) or (b), the department may require the organization or producer to increase spending on implementing the requirements of this chapter.
Article 5. Records, Audits, and Reports for Electric Vehicle Lithium-Ion Batteries
42434.
(a) A stewardship organization or producer shall keep minutes, books, and records that clearly reflect the activities and transactions of the stewardship organization or producer.(b) The accounting books of the stewardship organization or producer shall be audited at the stewardship organization’s or producer’s expense by an independent certified public accountant retained by the stewardship organization or producer at least once each calendar year, commencing with the 2025 calendar year.
(c) The stewardship organization or producer shall arrange for the audit to be delivered to the department with the annual report. The department shall review the audit for compliance with
this chapter and consistency with the stewardship plan. The department shall notify the stewardship organization or producer of any compliance issues or inconsistencies.
(d) The department may conduct its own audit if it determines that an audit is necessary to enforce the requirements of this chapter and that the audit conducted pursuant to subdivision (b) is not adequate for this purpose. The stewardship organization or producer may obtain copies of the audit upon request.
(e) The department shall not disclose any confidential proprietary information in an audit conducted pursuant to this section.
42434.2.
On or before June 30, 2026, and on or before June 30 of each year thereafter, a stewardship organization, or producer that is not part of a stewardship organization, shall submit to the department, in the form and manner determined by the department, and make publicly available on its internet website, an annual report that includes, for the preceding calendar year, all of the following:(a) The stewardship organization’s or producer’s costs and revenues.
(b) The quantity of electric vehicle lithium-ion batteries sold in the state by the producers in the stewardship program and the discarded electric vehicle lithium-ion batteries that are out of warranty collected for recycling in the
stewardship program.
(c) A list of the stewardship program’s collection sites, by name, location, and type.
(d) The total weight of each battery chemistry type that was collected.
(e) A list of each electric vehicle lithium-ion battery recycling facility used by the stewardship program, by name and location.
(f) An updated list of the names and locations of producers, manufacturers, distributors, importers, brands, and electric vehicle lithium-ion batteries covered under the stewardship plan.
(g) The total weight of electric vehicle lithium-ion batteries recycled in the state during the preceding calendar year, including any conversion factor used to determine the number of electric
vehicle lithium-ion batteries recovered.
(h) The recycling efficiency rate of each battery chemistry type that was recycled.
(i) The material recovery rate of each individual battery material.
(j) The total weight of residual materials from electric vehicle lithium-ion batteries.
(k) The uses for the recycled residual materials.
(l) The weight of residual materials that were not recycled, subject to paragraph (2) of subdivision (e) of Section 42432.1.
(m) A description of methods used to collect, transport, and process electric vehicle lithium-ion batteries, including any conversion factor used to determine the number
of electric vehicle lithium-ion batteries recovered.
(n) A list of any contracts or agreements, which may include contracts and agreements with existing nonprofit or for-profit recyclers, that are necessary and proper for the stewardship organization or producer to carry out its duties under this chapter.
(o) A description of outreach efforts and education to consumers, manufacturers, distributors, and retailers for the purpose of promoting the collection and recycling of electric vehicle lithium-ion batteries.
(p) (1) A report on coordination activities with other stewardship programs, including coordinating existing electric vehicle lithium-ion battery collection and recycling programs, and with other relevant parties, as appropriate, with regard to the proper management or recycling of
discarded electric vehicle lithium-ion batteries that are out of warranty, for purposes of providing the efficient delivery of services and avoiding unnecessary duplication of effort and expense.
(2) A description of strategies in coordination with other stewardship programs on proper labeling of electric vehicle lithium-ion batteries to ensure proper collection and recycling.
(q) (1) Findings from an annual consumer awareness study and examples of educational materials that were provided to consumers in the first year of the stewardship program and any changes to those materials in subsequent years, as well as other mechanisms, including advertising of the program, to increase consumer awareness.
(2) A description of any consultation with the California Environmental Protection Agency’s
Environmental Justice Task Force and other relevant parties for collecting electric vehicle lithium-ion batteries that are out of warranty for recycling in areas and communities that face unique challenges.
(r) A demonstration of efforts to comply with collection goals established pursuant to Section 42432.1.
(s) (1) A report on activities the stewardship organization or producer has undertaken in relation to all of the following:
(A) Meeting performance goals.
(B) Making progress on meeting performance goals.
(C) Making progress on planned efforts to meet performance goals.
(2) Factors to be considered
for paragraph (1) may include, but are not limited to, availability of take-back options and no-cost local curbside collection services, proximity to recyclers and no-cost collection points and events, and the state of current recycling technology.
(t) A report on activities, which the stewardship organization or producer shall undertake, to prioritize, to the extent economically practical, the use of in-state processing facilities over out-of-state processing facilities. If the stewardship organization or producer decides to use out-of-state processing facilities, the stewardship organization or producer shall provide an explanation of that decision.
(u) If the producer or stewardship organization determines during a particular year that any of the activities undertaken to implement subdivision (s) were unsuccessful, the stewardship organization or producer shall identify the
problems with the current activities, and report on the new activities undertaken and progress made, in the following year’s annual report.
(v) A hard copy of, or an electronic reference to, any report completed by the stewardship organization or producer during the period covered by the annual report and a brief explanation of how the stewardship organization or producer anticipates the activities may benefit the stewardship program. The stewardship organization or producer shall make these reports publicly available free of charge. If the report contains trade secrets or confidential information protected under existing law, the stewardship organization or producer shall only be required to provide a description of the information and its relevance to the stewardship program that omits any of the trade secrets or confidential information.
(w) The progress toward attainment of
the goals included in the stewardship organization’s or producer’s stewardship plan.
(x) Any modification or revision to the stewardship plan, including those required pursuant to Section 42432.2, which are subject to review under Section 42432.6, necessary to achieve the goals established pursuant to Section 42432.1.
(y) Any other information relevant to compliance with the approved stewardship plan.
42434.4.
(a) No later than 90 days after the date the department receives the annual report, the department shall notify the stewardship organization or producer of any deficiencies in the annual report. No later than 60 days after receiving this notice from the department, the stewardship organization or producer shall provide additional information, modifications, or corrections in response to the department’s notification.(b) Any proposed activities in the annual report shall be evaluated by the department for progress and shall be taken into consideration when approving, disapproving, or conditionally approving the report.
(c) Within 90 days of receipt of an annual report
deemed complete, the department shall review the report for compliance with this chapter and shall approve, disapprove, or conditionally approve the annual report. If the department fails to act within 90 days of receipt of the report, the report shall be deemed approved.
(d) (1) If the department conditionally approves or disapproves the annual report, the stewardship organization or producer shall resubmit a revised annual report addressing the department’s written reasons for its decision within 30 days of the conditional approval or disapproval.
(2) The department, within 60 days from the date a stewardship organization or producer resubmits a revised annual report, shall approve or disapprove a final annual report. If the department fails to act or does not disapprove a final annual report within those 60 days, the annual report shall be deemed
approved.
(e) If the department disapproves a revised annual report submitted pursuant to paragraph (1) of subdivision (d), the stewardship organization or producer may submit only one additional revised annual report, subject to review in accordance with paragraph (2) of subdivision (d).
Article 6. Enforcement
42435.
(a) On or before July 1, 2027, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands and names of electric vehicle lithium-ion batteries for each producer.(b) A producer that is not listed on the department’s internet website pursuant to this section that demonstrates compliance with this chapter before the next post is required pursuant to subdivision (a) may request a certification letter from the department stating that the producer, brand, or electric vehicle lithium-ion battery is in compliance. A producer that receives this letter shall be deemed listed as
compliant on the department’s internet website.
(c) (1) A retailer or distributor shall monitor the department’s internet website to determine if a producer, brand, or electric vehicle lithium-ion battery is in compliance with this chapter for that brand or electric vehicle lithium-ion battery.
(2) A retailer or distributor shall not sell, distribute, offer for sale, or import an electric vehicle lithium-ion battery in or into the state unless the producer of the electric vehicle lithium-ion battery is listed as in compliance pursuant to subdivision (a) for that brand and electric vehicle lithium-ion battery.
(d) Notwithstanding subdivision (c), both of the following apply:
(1) A retailer or distributor may sell or distribute an
electric vehicle lithium-ion battery if, on the date the retailer or distributor ordered or purchased the electric vehicle lithium-ion battery, or within 120 calendar days before or after that date, the producer, brand, or electric vehicle lithium-ion battery was listed as compliant on the department’s internet website.
(2) A retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory.
(e) If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and electric vehicle lithium-ion batteries, from the department’s internet website, as specified in subdivision (a). The producer shall not sell an electric vehicle lithium-ion battery in the state until the department determines the
producer is in compliance with this chapter.
42435.2.
(a) The department may impose an administrative civil penalty on a producer, stewardship organization, manufacturer, distributor, retailer, importer, recycler, or collection site that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day.(b) The department shall not impose a penalty pursuant to this section on a stewardship organization or producer operating a stewardship program for a failure to comply with this chapter if the organization or producer demonstrates it received
false or misleading information from a member of the organization, as applicable, or other party that was the direct cause of its failure to comply.
(c) The department shall deposit all penalties collected pursuant to this section into the Electric Vehicle Lithium-Ion Battery Recycling Penalty Account, which is hereby created in the Electric Vehicle Lithium-Ion Battery Recycling Fund. Upon appropriation by the Legislature, moneys in the account shall be expended by the department to administer and enforce this chapter.
42435.4.
(a) Upon a written finding that a producer, stewardship organization, manufacturer, distributor, retailer, importer, recycler, or collection site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:(1) Revoke the stewardship organization’s or producer’s stewardship plan approval or require the stewardship organization or producer to resubmit the plan.
(2) Remove the producer, along with its brands and
electric vehicle lithium-ion batteries, from the department’s list of compliant producers, as specified in Section 42435.
(3) Impose additional reporting requirements relating to compliance with the material requirement identified by the department.
(b) If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the stewardship organization or producer that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42435.2, sell or offer for sale electric vehicle lithium-ion batteries in the state for a period of up to one year after the stewardship plan was terminated or was revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.
42435.6.
(a) A producer, stewardship organization, manufacturer, distributor, retailer, importer, recycler, or collection site shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department and as authorized pursuant to Title 13 (commencing with Section 1822.50) of Part 3 of the Code of Civil Procedure, to its facilities and operations, as necessary to determine compliance with this chapter.
(2) Upon request, provide the department with relevant records necessary to determine compliance with this chapter.
(b) The records required by this
chapter shall be maintained and accessible for three years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c) The department may take disciplinary action against a producer, stewardship organization, manufacturer, distributor, retailer, importer, recycler, or collection site that fails to provide the department with the access required pursuant to this section, including, but not limited to, imposing administrative civil penalties pursuant to Section 42435.2 and posting an immediate notice on the department’s internet website pursuant to Section 42435 that the producer, along with its brands and electric vehicle lithium-ion batteries, is no longer in compliance with this chapter.
42435.8.
The department, in consultation with the Department of Toxic Substances Control, shall adopt regulations for the implementation of this chapter by January 1, 2025.Article 7. Antitrust Immunity
42436.
(a) Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a stewardship organization or producer that relates to any of the following is not a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).(b) Subdivision (a) applies to all of the following actions taken by a stewardship organization or producer:
(1) The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42432) and the determination of the types or quantities of electric vehicle lithium-ion batteries recycled or otherwise managed pursuant to a stewardship plan.
(2) The determination of the cost and structure of an approved stewardship plan.
(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c) Subdivision (a) does not apply to an agreement that does any of the following:
(1) Fixes a price of or for electric vehicle lithium-ion batteries,
except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.
(2) Fixes the output or production of electric vehicle lithium-ion batteries.
(3) Restricts the geographic area in which, or customers to whom, electric vehicle lithium-ion batteries will be sold.
SEC. 2.
The Legislature finds and declares that Section 1 of this act, which adds Chapter 7.9 (commencing with Section 42430) to Part 3 of Division 30 of the Public Resources Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to ensure that the competitive market in the state for the manufacture and sale of electric vehicle lithium-ion batteries is not compromised, it is necessary that financial, production, and sales data and confidential proprietary information collected for the purpose of administering a stewardship program be confidential.
SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.The Legislature hereby finds and declares all of the following:
(a)That the California coastal zone is a distinct and valuable natural resource of vital and enduring interest to all the people and exists as a delicately balanced ecosystem.
(b)That the permanent protection of the state’s natural and scenic resources is a paramount concern to present and future residents of the state and nation.
(c)That to promote the
public safety, health, and welfare, and to protect public and private property, wildlife, marine fisheries, and other ocean resources, and the natural environment, it is necessary to protect the ecological balance of the coastal zone and prevent its deterioration and destruction.
(d)That existing developed uses, and future developments that are carefully planned and developed consistent with the policies of this division, are essential to the economic and social well-being of the people of this state and especially to working persons employed within the coastal zone.
