Bill Text: CA SB615 | 2023-2024 | Regular Session | Amended


Bill Title: Vehicle traction batteries.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2023-06-15 - June 20 set for first hearing canceled at the request of author. [SB615 Detail]

Download: California-2023-SB615-Amended.html

Amended  IN  Senate  April 12, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 615


Introduced by Senator Allen Senators Allen and Min

February 15, 2023


An act to repeal and add Article 3 (commencing with Section 42450.5) of Chapter 8 of Part 3 of Division 30 of the Public Resources Code, relating to solid waste.


LEGISLATIVE COUNSEL'S DIGEST


SB 615, as amended, Allen. Electric vehicle Vehicle traction batteries.
Existing law requires the Secretary for Environmental Protection to convene the Lithium-Ion Car Battery Recycling Advisory Group to review, and advise the Legislature on, policies pertaining to the recovery and recycling of lithium-ion vehicle batteries sold with motor vehicles in the state. Existing law also requires the advisory group to submit policy recommendations to the Legislature aimed at ensuring that as close to 100% as possible of lithium-ion vehicle batteries in the state are reused or recycled at end-of-life in a safe and cost-effective manner.
This bill would repeal those requirements. The bill would instead require all electric vehicle traction batteries, as defined, sold with motor vehicles in the state to be recovered and reused, repurposed, remanufactured, or or remanufactured and eventually recycled at the end of their useful life in a motor vehicle or any other application. The bill would also require a vehicle manufacturer, dealer, automobile dismantler, automotive repair dealer, and nonvehicle secondary user to be responsible for ensuring the responsible end-of-life management of an electric a vehicle traction battery once it is removed from a vehicle or other application to which the electric vehicle traction battery has been used. The bill would make a vehicle or battery manufacturer responsible for collecting a stranded battery, as defined, and repurposing the battery, if possible, but would require the manufacturer to ensure the battery is recycled if it cannot be reused. The bill would require, by January 1, 2025, a battery supplier, as described, to be responsible for the development of a core exchange program for replacing a battery, module, or cell removed from a vehicle, as specified. The bill would also require a battery supplier to annually submit a report to the Department of Toxic Substances Control, as provided. The bill would require a qualified facility, as defined, buying removed batteries to submit a report containing specified information to the department and would require specified entities that remove a battery from a vehicle that is still in service to participate in the core exchange program. The bill would make a secondary user that purchases a battery that was removed from a vehicle responsible for ensuring the battery is sent to a qualified facility at the end of the battery’s useful life and reporting specified information to the department. The bill would include a related statement of legislative findings and declarations and a statement of policy regarding end-of-life management of electric vehicle traction batteries.
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 hereby finds and declares all of the following:
(a) As the State of California continues its commitment to decarbonizing the on-road transportation sector and as electric vehicles become more cost-competitive and popular with consumers, the state will see an increase in the number of electric vehicle traction batteries.
(b) Electric vehicle Vehicle traction batteries that are no longer useful in an electric vehicle vehicles can be repurposed for another application, remanufactured, or recycled. Given the growth expected in California’s electric vehicle market, the value inherent in the material used to manufacture vehicle batteries, and the potential hazard posed by these batteries if handled improperly, California has an interest in creating a coherent state policy designed to ensure all electric vehicle traction batteries are reused, repurposed, remanufactured, and eventually recycled.
(c) In 2018, the Legislature passed and the governor signed AB 2832, calling for the formation of an advisory group of experts to develop policy recommendations aimed at ensuring that as close to 100 percent as possible of electric vehicle traction batteries in the state are reused or recycled at end-of-life in a safe and cost-effective manner. The advisory group published a report in March of 2022 summarizing their work, detailing barriers and opportunities for improving management of these batteries, and presenting policies designed to further the already-developing circular economy, avoid adverse impacts to public health and the environment, and at keep these batteries out of the waste stream.
(d) One key recommendation of the advisory group was to create a program which would require those involved in the production and use of electric vehicle traction batteries to take responsibility for the end-of-life of the product. The report articulated different approaches to accomplishing this goal and underscored the need to define which entities should be responsible for coordinating and covering the costs associated with management of the batteries when those costs present a burden for the vehicle owner and the need to mitigate barriers that currently inhibit the reuse, repurposing, and recycling of these batteries.

SEC. 2.

 (a) It is the policy of the State of California that in situations when an electric a vehicle traction battery reaches the end of its life and cannot be reused in another vehicle or repurposed, it shall be sent to a qualified repurposer, remanufacturer, recycler, or sorting facility to ensure proper disposal. be recycled.
(b) It is further the policy of the State of California that any program designed to ensure proper end-of-life management of electric vehicle traction batteries first strives to reuse batteries when possible. When that is not possible, the program shall strive to repurpose or remanufacture the battery for a different application. When neither is possible, the program shall ensure the batteries are recycled. Disposal of these batteries should be discouraged and ultimately eliminated in support of achieving a circular economy.

SEC. 3.

 Article 3 (commencing with Section 42450.5) of Chapter 8 of Part 3 of Division 30 of the Public Resources Code is repealed.

SEC. 4.

 Article 3 (commencing with Section 42450.5) is added to Chapter 8 of Part 3 of Division 30 of the Public Resources Code, to read:
Article  3. Electric Vehicle Traction Batteries

42450.5.
 For purposes of this article, the following definitions apply:
(a) “Automobile dismantler” has the same definition as in Section 220 of the Vehicle Code.
(b) “Automotive repair dealer” has the same definition as subdivision (a) of Section 9880.1 of the Business and Professions Code.
(c) “Battery supplier” includes, but is not limited to, a vehicle manufacturer who sells or distributes motor vehicles containing a vehicle traction battery, a manufacturer who sells or distributes vehicle traction batteries, or a secondary handler. For purposes of this article, a secondary handler or remanufacturer selling a battery removed from a vehicle to be used as a replacement battery in another vehicle is a battery supplier.

(c)

(d) “Dealer” has the same definition as in Section 285 of the Vehicle Code.
(e) “Department” means the Department of Toxic Substances Control.

(d)“Electric vehicle traction battery” means an advanced battery technology used as a traction battery to propel a motor vehicle.

(e)

(f) “Motor vehicle” has the same definition as in Section 415 of the Vehicle Code.

(f)

(g) “Nonvehicle secondary user” means a business or entity that has repurposed an electric a vehicle traction battery to another application, other than as a traction battery in an electric a vehicle.
(h) “Orphaned battery” means a battery for which the owner or manufacturer cannot be identified.
(i) “Qualified facility” means a recycler or secondary user of a battery.
(j) “Remanufacturing” means the process of refurbishing battery modules or packs to as good or better quality and performance levels through the replacement of worn or deteriorated components and recertifying them to original manufacturer specifications.
(k) “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.
(l) “Secondary handler” means any entity, other than the vehicle manufacturer, that removes a battery from a vehicle.
(m) “Secondary user” means an entity that repurposes a battery to fulfill a different use than what was originally intended.
(n) “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. This also includes batteries for which an owner cannot be identified.

(g)

(o) “Vehicle manufacturer” has the same definition as in Section 672 of the Vehicle Code.
(p) “Vehicle traction battery” or “battery” means an advanced battery technology used as a traction battery to propel a motor vehicle.

42450.6.
 All electric vehicle traction batteries sold with motor vehicles in the state shall be recovered and reused, repurposed, remanufactured, or remanufactured and eventually recycled at the end of their useful life in a motor vehicle or any other application. application, as provided in this article.

42450.7.
 (a) (1) A vehicle manufacturer, dealer, automobile dismantler, automotive repair dealer, and nonvehicle secondary user shall be responsible for ensuring the responsible end-of-life management of an electric a vehicle traction battery once it is removed from a vehicle or other application to which the electric vehicle traction battery has been used.
(2) If a battery is removed from a vehicle that is still in service, while the battery is still under warranty, the vehicle manufacturer is solely responsible for ensuring responsible end-of-life management of the battery pursuant to state and federal law.
(b) The vehicle or battery manufacturer is responsible for collecting a stranded battery, if that battery can be traced to the manufacturer, and for repurposing the battery, if possible, but shall ensure the battery is recycled if it cannot be reused.
(c) By January 1, 2025, a battery supplier that sells or distributes vehicle traction batteries in or into California is responsible for the following:
(1) (A) The development of a core exchange program for replacing a battery, module, or cell removed from a vehicle. This program shall include proper tracking and recordkeeping for any battery, module, or cell removed from a vehicle and for a replacement battery, module, or cell. The tracking system shall include a unique identifier for each battery. The unique identifier shall be consistent with any applicable regulations adopted by the State Air Resources Board on or after January 1, 2023, that govern labeling requirements for batteries.
(B) The program shall include two options: a refundable core exchange deposit, or, in lieu of a refundable core exchange deposit, an option for a battery supplier and buyer to enter into a contractual agreement to ensure the removed battery is returned or sent to a qualified facility.
(C) The program shall require a battery supplier to collect from a buyer a minimum deposit set to ensure batteries are returned. A deposit may be waived if the battery supplier has documentation that the buyer has shipped the removed battery to the supplier or to a qualified facility prior to the replacement battery being shipped.
(D) A battery supplier that collects a deposit that is not refunded to the buyer shall hold the funds in escrow to be used to fund the collection and recycling of orphaned or stranded batteries.
(E) In lieu of a core exchange deposit, a battery supplier may enter into a contractual agreement with a buyer to ensure removed batteries are returned or sent to a qualified facility. If a battery is not either returned or sent to a qualified facility within the timeframe established in the contract, the supplier shall charge, and the buyer shall pay, the minimum deposit set by the supplier. If the removed battery is still not returned, the supplier shall hold the deposit in escrow to be used to fund the collection and recycling of orphaned or stranded batteries.
(2) Annually submitting a report to the department containing the date of sale of the battery, the name of the entity to which a replacement battery was sold, and the battery’s unique identifier and state of health. The report shall also include the date the battery removed by the buyer was received by the supplier or a qualified facility and the removed battery’s unique identifier and state of health. For batteries collected by the supplier, the report shall indicate when the battery was sent to a qualified facility and the qualified facility to which it was sent.
(d) A qualified facility buying removed batteries shall submit a report to the department detailing the date the battery was purchased, including the battery’s unique identifier, as described in subparagraph (A) of paragraph (1) of subdivision (c), and indicate if the battery was reused, repurposed, or recycled.
(e) A dealer, automobile dismantler, automotive repair dealer, nonvehicle secondary user, or recycler that removes a battery from a vehicle that is still in service shall participate in the core exchange program established by the battery supplier and shall be responsible for either returning a removed battery to the battery supplier or sending it to a qualified facility.
(f) A secondary user that purchases a battery that was removed from a vehicle is responsible for ensuring the battery is sent to a qualified facility at the end of the battery’s useful life and shall report to the department the date on which the battery was sent and the qualified facility to which the battery was sent.