The Rechargeable Battery Recycling Act of 2006 requires every retailer, as defined, to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal. Existing law requires the system for the acceptance and collection of used rechargeable batteries to include, at a minimum, specified elements, including, among others, the take-back at no cost to the consumer of a used rechargeable battery of the type or brand that the retailer sold or previously sold. Existing law defines rechargeable battery for purposes of these provisions to mean a small, nonvehicular, rechargeable nickel-cadmium, nickel metal hydride, lithium-ion, or sealed lead-acid battery, or a battery pack containing these types of batteries.

This bill would require the Secretary for Environmental Protection, on or before April 1, 2019, 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 batteries sold with motor vehicles in the state, and would require the secretary to appoint members to the committee from specified departments, vocations, and organizations. The bill would require the advisory group to consult with specified entities and, on or before April 1, 2022, to submit policy recommendations to the Legislature aimed at ensuring that as close to 100% as possible of lithium-ion batteries in the state are reused or recycled at end-of-life in a safe and cost-effective manner. The bill would require the policy recommendations to reflect specified considerations. The bill would repeal these provisions on January 1, 2027.

The Rechargeable Battery Recycling Act of 2006 requires every retailer, as defined, to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal. Existing law requires the system for the acceptance and collection of used rechargeable batteries to include, at a minimum, specified elements, including, among others, the take-back at no cost to the consumer of a used rechargeable battery of the type or brand that the retailer sold or previously sold. Existing law defines rechargeable battery for purposes of these provisions to mean a small, nonvehicular, rechargeable nickel-cadmium, nickel metal hydride, lithium-ion, or sealed lead-acid battery, or a battery pack containing these types of batteries.

This bill would require the Secretary for Environmental Protection, on or before April 1, 2019, 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 batteries sold with motor vehicles in the state, and would require the secretary to appoint members to the committee from specified departments, vocations, and organizations. The bill would require the advisory group to consult with specified entities and, on or before April 1, 2022, to submit policy recommendations to the Legislature aimed at ensuring that as close to 100% as possible of lithium-ion batteries in the state are reused or recycled at end-of-life in a safe and cost-effective manner. The bill would require the policy recommendations to reflect specified considerations. The bill would repeal these provisions on January 1, 2027.

The Rechargeable Battery Recycling Act of 2006 requires every retailer, as defined, to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal. Existing law requires the system for the acceptance and collection of used rechargeable batteries to include, at a minimum, specified elements, including, among others, the take-back at no cost to the consumer of a used rechargeable battery of the type or brand that the retailer sold or previously sold. Existing law defines rechargeable battery for purposes of these provisions to mean a small, nonvehicular, rechargeable nickel-cadmium, nickel metal hydride, lithium-ion, or sealed lead-acid battery, or a battery pack containing these types of batteries.

This bill would require the Secretary for Environmental Protection, on or before April 1, 2019, 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 batteries sold with motor vehicles in the state, and would require the secretary to appoint members to the committee from specified departments, vocations, and organizations. The bill would require the advisory group to consult with specified entities and, on or before April 1, 2020, 2022, to submit policy recommendations to the Legislature aimed at ensuring that as close to 100% as possible of end-of-life lithium-ion batteries discarded in the state are reused or recycled at end-of-life in a safe and cost-effective manner in the state. manner. The bill would require the policy recommendations to reflect specified considerations. The bill would repeal these provisions on January 1, 2022. 2027.

The Rechargeable Battery Recycling Act of 2006 requires every retailer, as defined, to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal. Existing law requires the system for the acceptance and collection of used rechargeable batteries to include, at a minimum, specified elements, including, among others, the take-back at no cost to the consumer of a used rechargeable battery of the type or brand that the retailer sold or previously sold. Existing law defines rechargeable battery for purposes of these provisions to mean a small, nonvehicular, rechargeable nickel-cadmium, nickel metal hydride, lithium-ion, or sealed lead-acid battery, or a battery pack containing these types of batteries.

This bill would require the Secretary for Environmental Protection, on or before April 1, 2019, 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 batteries sold with motor vehicles in the state, and would require the secretary to appoint members to the committee from specified departments, vocations, and organizations. The bill would require the advisory group to consult with specified entities and, on or before April 1, 2020, to submit policy recommendations to the Legislature aimed at ensuring that 90% as close to 100% as possible of end-of-life lithium-ion batteries discarded in the state are recycled in a safe and cost-effective manner in the state. The bill would require the policy recommendations to reflect specified considerations. The bill would repeal these provisions on January 1, 2022.

The Rechargeable Battery Recycling Act of 2006 requires every retailer, as defined, to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal. Existing law requires the system for the acceptance and collection of used rechargeable batteries to include, at a minimum, specified elements, including, among others, the take-back of a used rechargeable battery of the type or brand that the retailer sold or previously sold at no cost to the consumer. Existing law defines rechargeable battery for purposes of these provisions to mean a small, nonvehicular, rechargeable nickel-cadmium, nickel metal hydride, lithium-ion, or sealed lead-acid battery, or a battery pack containing these types of batteries.

This bill would require the Department of Toxic Substances Control to work collaboratively with specified state entities and stakeholders to identify approaches for the reuse or recycling of lithium-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes, identify processes for the proper disposal of those lithium-ion batteries, and develop recommendations for the creation of, and funding for, a grant program that would provide assistance for the development of recycling and reuse opportunities for those lithium-ion batteries, as provided, and to submit a report to the Legislature, on or before July 1, 2020, based on their findings. The bill would require the Department of Toxic Substances Control to develop a grant program to fund the development of recycling and reuse opportunities for lithium-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes. The bill would require the Department of Resources Recycling and Recovery to develop a process for a consumer to properly dispose of a lithium-ion battery from an electric vehicle, at no cost to the consumer.

The Rechargeable Battery Recycling Act of 2006 requires every retailer, as defined, to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal. Existing law requires the system for the acceptance and collection of used rechargeable batteries to include, at a minimum, specified elements, including, among others, the take-back of a used rechargeable battery of the type or brand that the retailer sold or previously sold at no cost to the consumer. Existing law defines rechargeable battery for purposes of these provisions to mean a small, nonvehicular, rechargeable nickel-cadmium, nickel metal hydride, lithium-ion, or sealed lead-acid battery, or a battery pack containing these types of batteries.

This bill would require the Department of Toxic Substances Control to work collaboratively with specified state entities and stakeholders to identify approaches for the reuse or recycling of lithium-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes, and to submit a report to the Legislature, on or before July 1, 2020, based on their findings. The bill would require the Department of Toxic Substances Control to develop a grant program to fund the development of recycling and reuse opportunities for lithium-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes. The bill would require the Department of Resources Recycling and Recovery to develop a process for a consumer to properly dispose of a lithium-ion battery from an electric vehicle, at no cost to the consumer.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2832

Author:(Dahle and Ting)

As Amended Ver:August 6, 2018

Majority vote

Original Committee Reference: E.S. & T.M.

SUMMARY: Requires the Secretary for the California Environmental Protection Agency (CalEPA) to convene a research group to review, and advise the Legislature on, policies pertaining to the recovery and recycling of lithium-ion (Li-ion) vehicle batteries sold with motor vehicles in the state. Specifically, this bill:

1. Requires, on or before April 1, 2019, the Secretary of CalEPA to convene the Lithium-Ion Car Battery Recycling Advisory Group (Advisory Group) to review, and advise the Legislature on, policies pertaining to the recovery and recycling of Li-ion vehicle batteries sold with motor vehicles in the state.
2. Requires, until April 1, 2022, the Advisory group to meet at least quarterly; and, to consult with universities and research institutions that have conducted research in the area of battery recycling; manufacturers of electric and hybrid vehicles; and, the recycling industry.
3. Requires the Secretary of CalEPA to appoint members to the Advisory Group from specified governmental entities and related fields.
4. Requires, on or before April 1, 2022, the Advisory Group to submit policy recommendations to the Legislature aimed at ensuring that as close to 100 percent as possible of end-of-life Li-ion vehicle batteries in the state are reused or recycled at end-of-life in a safe and cost-effective manner.
5. Sunsets the provisions of the bill on January 1, 2027.

The Senate amendments

1. Delete the contents of bill, entirely, and replace with language that is substantially similar to AB 2407 (Ting) of the current legislative session, as amended April 17, 2018.
2. Add Assemblymember Ting as a joint author.

EXISTING LAW:

1. Prohibits the disposal of a lead-acid battery at a solid waste facility, or on or in any land, surface waters, watercourses, or marine waters.
2. Establishes the Lead-Acid Battery Recycling Act of 2016 (Act) to impose fees on lead-acid batteries to fund lead contamination cleanup.
3. Establishes the California Rechargeable Battery Recycling Act to require retailers to have a mechanism to accept all non-vehicular rechargeable batteries from consumers for recycling.

FISCAL EFFECT: According to the Senate Appropriations Committee, enactment of this bill could result in costs of $2 to $ 3 million (Hazardous Waste Control Account) for DTSC to create a new program, research existing technologies, and provide reports to the Legislature. There are additional, unknown costs for CalRecycle to develop a process for consumers to dispose of Li-ion electric vehicle batteries at no cost to the consumer.

COMMENTS:

Zero emission vehicles (ZEVs): Zero emission vehicles, or ZEVs, is an umbrella term for hydrogen fuel cell electric vehicles, battery electric vehicles (EVs), and plug-in hybrid electric vehicles (PHEVs). ZEVs are vehicles that emit no exhaust gas from the onboard source of power, hence the term 'zero emission.'

The number of ZEVs and Li-ion batteries that are on the road today: California increased the number of ZEVs in the state by 1300% in six years, growing from 25,000 in 2012 to more than 450,000 today. ZEVs now account for approximately 4.5-5 percent of all new car sales in California. All ZEVs contain a Li-ion battery to provide their electric power.

Li-ion batteries are hazardous waste: In California, because Li-ion batteries are considered a hazardous or universal waste, any facility that accepts them for collection, storage, waste management, or recycling would have to be permitted by DTSC for managing hazardous waste. It is unknown how many facilities are permitted by DTSC to accept Li-ion batteries from hybrids and electric vehicles for management or recycling.

According to a presentation to DTSC from Occupational Knowledge International, by 2028 roughly 8 million kilotons of waste Li-ion batteries from ZEVs are expected to be generated. By 2038, the estimate is 55 million kilotons.

Infrastructure, as well as understanding, is lacking: Little research has been devoted to understanding the challenges and tradeoffs associated with end-of-life management strategies for ZEV batteries, and the pace at which new collection, second life, and recycling infrastructure must be scaled up. It will require appropriate research to develop a roadmap for building the infrastructure necessary to process used batteries and divert them from landfills.

This bill requires the Secretary for CalEPA to convene an Advisory Group to review policies pertaining to the recovery and recycling of Li-ion vehicle batteries sold with motor vehicles in the state.

Given the growing number of ZEVs on the road, the fact that Li-ion batteries are considered hazardous, and the need to have systems in place to collect these products when they are done with their useful life, studying the possibilities now is prudent. With the appropriate variety of representation of auto manufacturers, battery management professionals, and state agencies in the Advisory Group, it can be well-quipped to advise the Legislature on policies pertaining to the recovery and recycling of Li-ion vehicle batteries sold with motor vehicles in the state.

Analysis Prepared by: Paige Brokaw / E.S. & T.M. / (916) 319-3965 FN: 0004386

 THIRD READING  

Bill No: AB 2832

Author:

:

Vote:

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 6/20/18

AYES: Wieckowski, Stone, Gaines, Hill, Lara, Skinner, Stern

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/16/18

AYES: Portantino, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 77-0, 5/30/18 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill requires the Secretary for the Environmental Protection Agency to convene a Lithium-Ion Car Battery Advisory Group to review, and advise the Legislature on, policies pertaining to the recovery and recycling of lithium-ion batteries sold with motor vehicles in the state.

ANALYSIS:

Existing law:

1. Prohibits the disposal of a lead-acid battery at a solid waste facility, or on or in any land, surface waters, watercourses, or marine waters. (Health and Safety Code (HSC) § 25215.2)
   
2. Establishes the Lead-Acid Battery Recycling Act of 2016 to impose fees on lead-acid batteries to fund lead contamination cleanup. (HSC § 25215)
   
3. Establishes the California Rechargeable Battery Recycling Act to require retailers to have a mechanism to accept all non-vehicular rechargeable batteries from consumers for recycling. (Public Resources Code § 42451)
   

This bill:

1. Requires, on or before April 1, 2019, the Secretary for the Environmental Protection Agency (CalEPA) to convene a Lithium-Ion Car Battery Recycling Advisory Group (Advisory Group) to review, and advise the Legislature on, policies pertaining to the recovery and recycling of lithium-ion (Li-ion) vehicle batteries sold with motor vehicles in the state.
   
2. Requires, until April 1, 2022, the Advisory Group:
   
   1. To meet at least quarterly; and
      
   2. Consult with universities and research institutions that have conducted research in the area of battery recycling, manufacturers of electric and hybrid vehicles, and the recycling industry.
      
3. Requires the Secretary of CalEPA to appoint at least one member to the Advisory Group from specified state departments and organizations.
   
4. Requires, on or before April 1, 2022, 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.
   
   1. Requires the advisory group, in developing these policy recommendations, to consider both in-state and out-of-state options for recycling.
      
5. Sunsets the provisions of the bill on January 1, 2027.

Background

1. Zero-Emission Vehicles (ZEVs). ZEVs run on electricity stored in batteries instead of fossil fuels. ZEV technologies include hydrogen fuel cell electric vehicles (FCEVs) and plug-in electric vehicles (PEVs), which include both pure battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). ZEVs are vehicles that emit no exhaust gas from the onboard source of power, hence the term “zero emission.”
   

In the past six years, California increased the number of ZEVs in the state by 1300% —growing from 25,000 in 2012 to more than 450,000 today—and ZEVs now account for approximately 4.5-5 percent of all new car sales in California. All ZEVs contain a Li-ion battery to provide their electric power. Li-ion batteries are efficient at holding charges and recharging to power a car, and traditional Li-ion batteries can have hundreds to a few thousand charge cycles through their lives. The life-span of Li-ion battery is anywhere between 10-20 years.

1. ZEV and Climate Goals. With transportation accounting for about 37 percent of California’s GHG emissions, transforming California’s transportation system away from gasoline to ZEVs is a fundamental part of the state’s efforts to reduce GHG emissions and help meet the state’s goals to reduce GHG emissions 40 percent below 1990 levels by 2030. In 2012, Governor Brown issued Executive Order B-16-12 directing state government to help accelerate the market for ZEVs in California. This Executive Order calls for 1.5 million ZEVs in California by 2025 and establishes several milestones on the pathway toward this target. The Administration’s 2013 ZEV Action Plan then identified specific actions state government would take to meet the milestones of the Executive Order. The Legislature has also supported these efforts with passage of the California Charge Ahead Initiative via SB 1275 (De León, Chapter 530, Statutes of 2014) which sets a goal and policies to achieve 1,000,000 ZEVs and near-zero-emission vehicles (NZEVs) by 2023. On January 26 of this year, Governor Brown issued Executive Order B-48-18 which calls for a new target of five million ZEVs on California’s roads by 2030. The executive order also proposes a new eight-year $2.5 billion initiative to continue the state’s clean vehicle rebates and increase the number of electric vehicle charging stations, with the goal of adding 250,000 vehicle charging stations to California by 2025.
   
2. Li-ion batteries are hazardous waste: All batteries, including Li-ion batteries, are considered hazardous waste in California when they are discarded because they contain metals and/or other toxic or corrosive materials. Upon disposal, a spent battery must be recycled or taken to a household hazardous waste disposal facility, a universal waste handler, or an authorized recycling facility. Despite this, batteries are potentially a valuable source of recyclable metal.
   

Because Li-ion batteries are considered a hazardous waste, any facility that accepts them for collection, storage, waste management, or recycling would have to be permitted by the Department of Toxic Substances Control (DTSC) for managing hazardous waste. It is unknown how many facilities are permitted by DTSC to accept Li-ion batteries from hybrids and electric vehicles for management or recycling.

1. Collection rates of Li-ion batteries: It is unknown how many Li-ion batteries are being collected for end of life management. There are currently about 35 million total cars on the road in California. Of those, about 450,000-500,000 are ZEVs. ZEV car sales started to pick up in 2011, when they still represented less than 0.5% of total sales. The life span of those cars' batteries have not yet maxed out, so ZEV car owners have not yet, en masse, needed replacement Li-ion car batteries. There simply is no data from new car dealers or auto body shops on spent Li-ion batteries being collected.
   
2. Other battery recycling and management programs
   
   1. California Rechargeable Battery Recycling Act (Act). The Act (AB 1125, Chapter 572, Statutes of 2005) banned all household batteries from solid waste landfill disposal and required retailers to take back rechargeable batteries for recycling at no cost to consumers. Rechargeable batteries covered under the Act include small, non-vehicular, rechargeable nickel‑cadmium, nickel metal hydride, lithium ion, or sealed lead‑acid battery, or a battery pack containing these types of batteries.
      

According to DTSC's data for 2012, nearly 22.2 million pounds of rechargeable batteries were collected from consumers for recycling, which include approximately 700,000 pounds of Li-ion batteries (non-vehicular) batteries. It is difficult to say how well this program has worked for collecting household lithium-ion batteries because batteries contained within electronic devices that are recycled (e.g. cell phones and laptop computers) are not counted separately but may represent a significant portion of the total quantity.

• 1. Lead-Acid Battery Recycling Act of 2016. Under the Lead-Acid Battery Recycling Act of 2016 (AB 2153, Chapter 666, Statutes of 2016), consumers are charged a $1 fee per lead-acid car battery at the point of sale. Manufacturers also pay a $1 fee on each battery sold in the state. The money from the fee revenues are used to clean up areas of the state that have been contaminated by the production and recycling of lead acid batteries.
     

According to a 2007 contracted report to the California Integrated Waste Management Board (CIWMB, which is now CalRecycle), Framework for Evaluating End-of-Life Product Management Systems in California, the need to have disposal options for lead-acid batteries lead to an industry response by BCI Inc. to promote model legislation for states to enact. That resulted in a model that included a landfill ban, a mandatory retailer-take back system, and mandatory collection of deposit on the purchase of a new battery if an old battery is not returned. California adopted a modified version of the model legislation in 1989 and, in 2016, further added to the act by imposing fees on consumers and manufacturers to clean up areas contaminated by lead-acid batteries. According to the auto care industry, 99.6% of all lead-acid core batteries are currently recycled in California.

Comments

1. Purpose of the bill. According to the author, “With the increase of zero-emission cars on the roads, the potential for disaster is very real. Currently there are more than 300,000 electric vehicles on the road with the potential to increase that substantially. The time is now for us to make a plan for the end of life of these batteries. AB 2832 seeks to have stakeholders come up with a comprehensive end of life plan for the recycling and reuse of Lithium-Ion Electric Vehicle batteries.”
   
2. Lithium-ion batteries versus lead-acid batteries. One of the key elements of any electric vehicle is its battery. A battery is an electrochemical energy storage device that can release an electrical charge when needed. It generally consists of an anode, a cathode, and an electrolyte (separator). Batteries may be made up of one or more cells, which can be connected together (in series) to provide a higher voltage. For example, a typical 12-volt car battery is made up of six cells connected together internally and a battery pack for a battery electric vehicle may have hundreds of individual cells.
   

Battery characteristics that are particularly important for automotive use include their energy density and power density. Energy density is a measure of how much energy a battery can hold. The higher the energy density, the longer it will last before needing to be recharged. Power is the rate at which energy is used. Power density is the measure of how much power a battery can deliver on demand – how quickly it can release energy and conversely, how quickly it can be recharged.

Lead-acid batteries and lithium-ion batteries are very different from each other. Lead-acid battery is defined as any battery weighing over five kilograms that is primarily composed of both lead and sulfuric acid with a capacity of six volts or more that is used for specified purposes. A lithium-ion battery is not currently defined in code, these types of batteries are typically made of lithium iron phosphate, carbon and lithium salt electrolyte. Lithium-ion batteries have a higher energy density that lead-acid batteries and the average lithium-ion battery has a cycle of about 2,000 to 5,000, whereas the average lead-acid battery can last about 500 to 1,000 cycles. Additionally, lithium-ion batteries need protective circuits for safety as they are not as robust as lead-acid batteries and are sensitive to high temperatures.

Because of its unique composition, lithium-ion batteries may present hazards to our environment that lead-acid batteries, or other batteries, do not, and vice versa. Therefore these batteries should be managed accordingly. All batteries are not created equal and a “one size fits all” approach would be inappropriate.

1. Lithium supply and challenges. There are a number of challenges that are likely to impact lithium supply in the future. Although there is a significant amount of lithium resources available globally to meet the demand, almost 70% of the global lithium deposits are concentrated in South America’s Argentina, Bolivia, and Chile region. With such a large percentage of the global supply concentrated to one area, the accessibility of the raw material could be heavily dependent on the social climate of those governments, impacting cost.
   

In the past, a number of sectors like construction, pharmaceuticals, ceramics, and glass utilized lithium, with the automotive industry only representing a small fraction. As of 2011, batteries account for only about one-quarter of the current lithium consumption, but that number is expected to reach about 40% by 2020. Lithium constitutes only a small portion of the cost among other raw materials needed for battery manufacturing, but with the number of ZEVs increasing every year, there will be significant pressure on lithium suppliers to address the demand.

1. Is there a market for recycled lithium? End-of-life management of Li-ion automotive batteries is still emerging, but, theoretically, they could be collected for end-of-life management as hazardous waste, recycling, reuse, or potentially even refurbishment. Although 100% recyclable, recycled lithium is as much as five times the cost of obtaining the raw material and currently OEMs (original equipment manufacturers) do not find it makes economic sense to buy at the higher price points from the recycling companies. However, with the increasing number of ZEVs entering into the market and the potential for a significant supply crunch, recycling would be an important factor for consideration in effective material supply for battery product. For many, recycling lithium-ion batteries is expected to be one of the main sources of lithium supply.
   

There is also potential for repurposing Li-ion batteries for alternative (non-vehicular) energy storage. According to the report by the Lawrence Livermore Laboratory prepared for the California Energy Commission, Plug-In Electric Vehicle Battery Recycling Scale-Up Strategies for California (2015-2050): Logistics, Life-Cycle Environmental Implications, and Second-Life Potential, batteries used in ZEVs "have a lifetime of 8-10 years, and they have significant capacity left for less demanding, second-life stationary energy storage applications after their capacity fades below acceptable levels [for a car]. This second-life battery can be used in California’s electricity grid for demand response and frequency regulation to help stabilize the network, or to support residential customers using off-grid solar arrays.

1. The unknown. As outlined above, one of the biggest obstacles the state faces in recycling lithium-ion batteries is the unknown. While it is unclear how many lithium-ion vehicle batteries are currently on the road, current end-of-life management of those batteries, or the infrastructure needed, one thing that is apparent is the need to understand the field. With the increase of ZEVs, the increase of lithium-ion batteries on the road is inevitable. As a hazardous waste, it is especially important that lithium-ion batteries are properly managed – whether it be through disposal, recycling, or refurbishment.
   

In other recycling markets, it has been largely unknown what percentage of recyclable products is actually being recycled. Often times, products have been sent to other markets outside of the state, presumably to be recycled, but sometimes are ultimately landfilled. It’s additionally unknown whether the act of recycling, for some products, is actually what is best for the environment. For some products it may make sense, but other products, the act of recycling may be causing more harm to the environment than good. The state should not get into the habit of recycling just for the sake of recycling. Instead, the state should consider the best management for its end-of-life products, examining the management’s overall effect on the environment.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, this bill will result in costs of $2 to $3 million from Hazardous Waste Control Account for DTSC to create a new program, research existing technologies, and provide reports to the Legislature.

SUPPORT: (Verified 8/16/18)

Californians Against Waste

Rural County Representatives of California

OPPOSITION: (Verified 8/16/18)

None received

ASSEMBLY FLOOR: 77-0, 5/30/18

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Brough

Prepared by:

8/18/18 13:55:31

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 2832 (Dahle) - Recycling: lithium-ion vehicle batteries: advisory group

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

This bill would require the Department of Toxic Substances Control (DTSC) to identify recycling opportunities for lithium-ion (Li-ion) batteries and develop a grant program for Li-ion battery recycling. Additionally, this bill would require the Department of Resources Recycling and Recovery (CalRecycle) to develop a process for a consumer to properly dispose of a Li-ion battery from an electric vehicle at no cost to the consumer.

Fiscal Impact:

• Costs of $2 to $ 3 million (Hazardous Waste Control Account) for DTSC to create a new program, research existing technologies, and provide reports to the Legislature.
• Unknown costs for CalRecycle to develop a process for consumers to dispose of Li-ion electric vehicle batteries at no cost to the consumer.

Background:

All batteries, including Li-ion batteries, are considered hazardous waste in California when they are discarded because they contain metals and/or other toxic or corrosive materials. Upon disposal, a spent battery must be taken to a household hazardous waste disposal facility, a universal waste handler, or an authorized recycling facility.

Because Li-ion batteries are considered a hazardous waste, any facility that accepts them for collection, storage, waste management, or recycling would have to be permitted by DTSC for managing hazardous waste. It is unknown how many facilities are permitted by DTSC to accept Li-ion batteries from hybrids and electric vehicles for management or recycling.

Proposed Law:

This bill would require DTSC to identify recycling opportunities for Li-ion batteries and develop a grant program for Li-ion battery recycling. Additionally, this bill would require CalRecycle to develop a process for a consumer to properly dispose of a Li-ion battery from an electric vehicle at no cost to the consumer. Specifically, this bill would:

1. Require DTSC to collaborate with the California Air Resources Board (ARB), the Department of Resources Recycling and Recovery (CalRecycle), the California Energy Commission (CEC), the Bureau of Automotive Repair (BAR), and stakeholders to do both of the following:
   1. Identify approaches for the reuse or recycling of Li-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes, in order to minimize the amount of potentially hazardous material that enters the state’s waste disposal system.
   2. Submit a report to the Legislature, on or before July 1, 2020, based on findings pursuant to subdivision (a), and sunsets this reporting requirement on January 1, 2024.
2. Require DTSC to develop a grant program to fund the development of recycling and reuse opportunities for Li-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes.
3. Establish that entities and persons eligible for a grant shall include, but are not limited to, manufacturers of Li-ion batteries for electric vehicles.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2017 - 2018 Regular

Bill No: AB 2832

SUBJECT: Recycling: lithium-ion vehicle batteries: advisory group

ANALYSIS:

Existing law:

1. Prohibits the disposal of a lead-acid battery at a solid waste facility, or on or in any land, surface waters, watercourses, or marine waters. (Health and Safety Code (HSC) § 25215.2)
   
2. Establishes the Lead-Acid Battery Recycling Act of 2016 (Act) to impose fees on lead-acid batteries to fund lead contamination cleanup. (HSC § 25215)
   
3. Establishes the California Rechargeable Battery Recycling Act to require retailers to have a mechanism to accept all non-vehicular rechargeable batteries from consumers for recycling. (Public Resources Code § 42451)
   

This bill:

1. Requires, on or before April 1, 2019, the Secretary for the Environmental Protection Agency (CalEPA) to convene a Lithium-Ion Car Battery Recycling Advisory Group (Advisory Group) to review, and advise the Legislature on, policies pertaining to the recovery and recycling of lithium-ion (Li-ion) vehicle batteries sold with motor vehicles in the state.
   
2. Requires, until April 1, 2020, the Advisory group:
   
   • 1. To meet at least quarterly; and
        
     2. Consult with universities and research institutions that have conducted research in the area of battery recycling, manufacturers of electric and hybrid vehicles, and the recycling industry.
        
3. Requires the Secretary of CalEPA to appoint at least one member to the Advisory Group from each of the following:
   
   1. Department of Resources Recycling and Recovery (CalRecycle).
      
   2. Department of Toxic Substances Control (DTSC).
      
   3. A vehicle manufacturer or an organization that represents one or more vehicle manufacturers.
      
   4. An electronic waste recycler or an organization that represents one or more electronic waste recyclers.
      
   5. An automotive repair dealer or an organization that represents one or more automotive repair dealers.
      
   6. An automobile dismantler or an organization that represents one or more automobile dismantlers
      
   7. An environmental organization that specializes in waste reduction and recycling.
      
   8. A representative of the energy storage industry.
      
   9. A lithium-ion vehicle battery manufacturer.
      
   10. A standards-developing organization that has a focus on automotive engineering.
       
4. Requires, on or before April 1, 2020, the Advisory Group to submit policy recommendations to the Legislature aimed at ensuring that 90 percent of end-of-life lithium-ion vehicle batteries discarded in the state are recycled in a safe and cost-effective manner in the state.
   
5. Sunsets the provisions of the bill on January 1, 2022.
   

Background

1. According to the authors,
   

“With the increase of zero-emission cars on the roads, the potential for disaster is very real. Currently there are more than 300,000 AB 2832 seeks to have stakeholders come up with a comprehensive end of life plan for the recycling and reuse of Lithium-Ion Electric Vehicle batteries.”

1. Zero-Emission Vehicles (ZEVs). ZEVs run on electricity stored in batteries instead of fossil fuels. ZEV technologies include hydrogen fuel cell electric vehicles (FCEVs) and plug-in electric vehicles (PEVs), which include both pure battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). ZEVs are vehicles that emit no exhaust gas from the onboard source of power, hence the term 'zero emission.'
   

In the past six years, California increased the number of ZEVs in the state by 1300% —growing from 25,000 in 2012 to more than 450,000 today—and ZEVs now account for approximately 4.5-5 percent of all new car sales in California. All ZEVs contain a Li-ion battery to provide their electric power. Li-ion batteries are efficient at holding charges and recharging to power a car, and traditional Li-ion batteries can have hundreds to a few thousand charge cycles through their lives. The life-span of Li-ion battery is anywhere between 10-20 years.

1. ZEV and Climate Goals. With transportation accounting for about 37 percent of California’s GHG emissions, transforming California’s transportation system away from gasoline to ZEVs is a fundamental part of the state’s efforts to reduce GHG emissions and help meet the state’s goals to reduce GHG emissions 40 percent below 1990 levels by 2030. In 2012, Governor Brown issued Executive Order B-16-12 directing state government to help accelerate the market for ZEVs in California. This Executive Order calls for 1.5 million ZEVs in California by 2025 and establishes several milestones on the pathway toward this target. The Administration’s 2013 ZEV Action Plan then identified specific actions state government would take to meet the milestones of the Executive Order. The Legislature has also supported these efforts with passage of the California Charge Ahead Initiative via SB 1275 (De León, Chapter 530, Statutes of 2014) which sets a goal and policies to achieve 1,000,000 ZEVs and near-zero-emission vehicles (NZEVs) by 2023. On January 26 of this year, Governor Brown issued Executive Order B-48-18 which calls for a new target of five million ZEVs on California’s roads by 2030. The executive order also proposes a new eight-year $2.5 billion initiative to continue the state’s clean vehicle rebates and increase the number of electric vehicle charging stations, with the goal of adding 250,000 vehicle charging stations to California by 2025.
   
2. Li-ion batteries are hazardous waste: All batteries, including Li-ion batteries, are considered hazardous waste in California when they are discarded because they contain metals and/or other toxic or corrosive materials. Upon disposal, a spent battery must be recycled or taken to a household hazardous waste disposal facility, a universal waste handler, or an authorized recycling facility. Despite this, batteries are potentially a valuable source of recyclable metal.
   

Because Li-ion batteries are considered a hazardous waste, any facility that accepts them for collection, storage, waste management, or recycling would have to be permitted by the Department of Toxic Substance Control (DTSC) for managing hazardous waste. It is unknown how many facilities are permitted by DTSC to accept Li-ion batteries from hybrids and electric vehicles for management or recycling.

1. Collection rates of Li-ion batteries: It is unknown how many Li-ion batteries are being collected for end of life management. There are currently about 35 million total cars on the road in California. Of those, about 450,000-500,000 are ZEVs. ZEV car sales started to pick up in 2011, when they still represented less than 0.5% of total sales. The life span of those cars' batteries have not yet maxed out, so ZEV car owners have not yet, en masse, needed replacement Li-ion car batteries. There simply is no data from new car dealers or auto body shops on spent Li-ion batteries being collected.
   
2. Other battery recycling and management programs.
   
   1. California Rechargeable Battery Recycling Act. The California Rechargeable Battery Recycling Act (Act) (AB 1125, Chapter 572, Statutes of 2005) banned all household batteries from solid waste landfill disposal and required retailers to take back rechargeable batteries for recycling at no cost to consumers. Rechargeable batteries covered under the Act include small, non-vehicular, rechargeable nickel‑cadmium, nickel metal hydride, lithium ion, or sealed lead‑acid battery, or a battery pack containing these types of batteries.
      

According to DTSC's data for 2012, nearly 22.2 million pounds of rechargeable batteries were collected from consumers for recycling, which include approximately 700,000 pounds of Li-ion batteries (non-vehicular) batteries. It is difficult to say how well this program has worked for collecting household lithium-ion batteries because batteries contained within electronic devices that are recycled (e.g. cell phones and laptop computers) are not counted separately but may represent a significant portion of the total quantity.

• 1. Lead-Acid Battery Recycling Act of 2016. Under the Lead-Acid Battery Recycling Act of 2016 (AB 2153, Chapter 666, Statutes of 2016), consumers are charged a $1 fee per lead-acid car battery at the point of sale. Manufacturers also pay a $1 fee on each battery sold in the state. The money from the fee revenues are used to clean up areas of the state that have been contaminated by the production and recycling of lead acid batteries.
     

According to a 2007 contracted report to the California Integrated Waste Management Board (CIWMB, which is now CalRecycle), Framework for Evaluating End-of-Life Product Management Systems in California, the need to have disposal options for lead-acid batteries lead to an industry response by BCI Inc. to promote model legislation for states to enact. That resulted in a model that included a landfill ban, a mandatory retailer-take back system, and mandatory collection of deposit on the purchase of a new battery if an old battery is not returned. California adopted a modified version of the model legislation in 1989 and, in 2016, further added to the act by imposing fees on consumers and manufacturers to clean up areas contaminated by lead-acid batteries. According to the auto care industry, 99.6% of all lead-acid core batteries are currently recycled in California.

Comments

1. Purpose of the Bill. According to the author,
   

“With the increase of zero-emission cars on the roads, the potential for disaster is very real. Currently there are more than 300,000 electric vehicles on the road with the potential to increase that substantially. The time is now for us to make a plan for the end of life of these batteries. AB 2832 seeks to have stakeholders come up with a comprehensive end of life plan for the recycling and reuse of Lithium-Ion Electric Vehicle batteries.”

1. Lithium-ion batteries versus lead-acid batteries. One of the key elements of any electric vehicle is its battery. A battery is an electrochemical energy storage device that can release an electrical charge when needed. It generally consists of an anode, a cathode, and an electrolyte (separator). Batteries may be made up of one or more cells, which can be connected together (in series) to provide a higher voltage. For example, a typical 12-volt car battery is made up of six cells connected together internally and a battery pack for a battery electric vehicle may have hundreds of individual cells.
   

Battery characteristics that are particularly important for automotive use include their energy density and power density. Energy density is a measure of how much energy a battery can hold. The higher the energy density, the longer it will last before needing to be recharged. Power is the rate at which energy is used. Power density is the measure of how much power a battery can deliver on demand – how quickly it can release energy and conversely, how quickly it can be recharged.

Lead-acid batteries and lithium-ion batteries are very different from each other. Lead-acid battery is defined as any battery weighing over five kilograms that is primarily composed of both lead and sulfuric acid with a capacity of six volts or more that is used for specified purposes. A lithium-ion battery is not currently defined in code, these types of batteries are typically made of lithium iron phosphate, carbon and lithium salt electrolyte. Lithium-ion batteries have a higher energy density that lead-acid batteries and the average lithium-ion battery has a cycle of about 2,000 to 5,000, whereas the average lead-acid battery can last about 500 to 1,000 cycles. Additionally, lithium-ion batteris need protective circuits for safety as they are not as robust as lead-acid batteries and are sensitive to high temperatures.

Because of its unique composition, lithium-ion batteries may present hazards to our environment that lead-acid batteries, or other batteries, do not, and vice versa. Therefore these batteries should be managed accordingly. All batteries are not created equal and a “one size fits all” approach would be inappropriate.

1. Lithium supply and challenges. There are a number of challenges that are likely to impact lithium supply in the future. Although there is a significant amount of lithium resources available globally to meet the demand, almost 70% of the global lithium deposits are concentrated in South America’s Argentina, Bolivia, and Chile region. With such a large percentage of the global supply concentrated to one area, the accessibility of the raw material could be heavily dependent on the social climate of those governments, impacting cost.
   

In the past, a number of sectors like construction, pharmaceuticals, ceramics, and glass utilized lithium, with the automotive industry only representing a small fraction. As of 2011, batteries account for only about one-quarter of the current lithium consumption, but that number is expected to reach about 40% by 2020. Lithium constitutes only a small portion of the cost among other raw materials needed for battery manufacturing, but with the number of ZEVs increasing every year, there will be significant pressure on lithium suppliers to address the demand.

1. Is there a market for recycled lithium? End-of-life management of Li-ion automotive batteries is still emerging, but, theoretically, they could be collected for end-of-life management as hazardous waste, recycling, reuse, or potentially even refurbishment. Although 100% recyclable, recycled lithium is as much as five times the cost of obtaining the raw material and currently original equipment manufacturers (OEMs) do not find it makes economic sense to buy at the higher price points from the recycling companies. However, with the increasing number of ZEVs entering into the market and the potential for a significant supply crunch, recycling would be an important factor for consideration in effective material supply for battery product. For many, recycling lithium-ion batteries is expected to be one of the main sources of lithium supply.
   

There is also potential for repurposing Li-ion batteries for alternative (non-vehicular) energy storage. According to the report by the Lawrence Livermore Laboratory prepared for the California Energy Commission, Plug-In Electric Vehicle Battery Recycling Scale-Up Strategies for California (2015-2050): Logistics, Life-Cycle Environmental Implications, and Second-Life Potential, batteries used in ZEVs "have a lifetime of 8-10 years, and they have significant capacity left for less demanding, second-life stationary energy storage applications after their capacity fades below acceptable levels [for a car]. This second-life battery can be used in California’s electricity grid for demand response and frequency regulation to help stabilize the network, or to support residential customers using off-grid solar arrays.

1. A 90% recycling goal. AB 2832 requires the Advisory Group to submit policy recommendations aimed at ensuring 90% of end-of-life Li-ion vehicle batteries discarded in the state are recycled. While a valid goal, why not 100 %? While it may be extremely difficult, or viewed as impossible, to attain a 100% recycling rate, that does not mean the state cannot strive to get to that point. By striving to reach a 100% recycling rate, it sets a policy of maximizing the state’s resources and not settling for “good enough.”

An amendment is needed to have the policy recommendations aimed at ensuring as close to 100% as possible are recycled.

1. The unknown. As outlined above, one of the biggest obstacles the state faces in recycling lithium-ion batteries is the unknown. While it is unclear how many lithium-ion vehicle batteries are currently on the road, current end-of-life management of those batteries, or the infrastructure needed, one thing that is apparent is the need to understand the field. With the increase of ZEVs, the increase of lithium-ion batteries on the road is inevitable. As a hazardous waste, it is especially important that lithium-ion batteries are properly managed – whether it be through disposal, recycling, or refurbishment.
   

In other recycling markets, it has been largely unknown what percentage of recyclable products are actually being recycled. Often times, products have been sent to other markets outside of the state, presumably to be recycled, but sometimes are ultimately landfilled. It’s additionally unknown whether the act of recycling, for some products, is actually what is best for the environment. For some products it may make sense, but other products, the act of recycling may be causing more harm to the environment than good. The state should not get into the habit of recycling just for the sake of recycling. Instead, the state should consider the best management for its end-of-life products, examining the management’s overall effect on the environment.

An amendment is needed to require the policy recommendations to reflect entire life-cycle considerations of lithium-ion vehicle batteries.

Related/Prior Legislation

AB 193 (Cervantes, 2017) provides rebates for electric vehicles and rebates for the replacement or refurbishment of electric vehicle batteries. This bill was held on the Inactive file in the Senate.

SOURCE:

Authors.

SUPPORT:

Californians Against Waste

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2832

Author:(Dahle)

As Amended Ver:May 25, 2018

Majority vote

SUMMARY: Requires the Department of Toxic Substances Control (DTSC) to identify recycling opportunities for lithium-ion (Li-ion) batteries. Specifically, this bill:

1. Requires DTSC to collaborate with the State Air Resources Board (ARB), the Department of Resources Recycling and Recovery (CalRecycle), the State Energy Resources Conservation and Development Commission (CEC), the Bureau of Automotive Repair (BAR), and stakeholders to do both of the following:
   1. Identify approaches for the reuse or recycling of Li-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes, in order to minimize the amount of potentially hazardous material that enters the state’s waste disposal system;
   2. Identify processes for the proper disposal of Li-ion batteries from electric vehicles, including, but not limited to, disposal at no cost to the consumer;
   3. Develop recommendations for the creation of, and funding for, a grant program that would provide assistance for the development of recycling and reuse opportunities for Li-ion batteries when the batteries are no longer suitable for their intended purposes. Requires that the recommendations provide that eligible grant recipients would include, but not be limited to, manufacturers of Li-ion batteries for electric vehicles; and,
   4. Submit a report to the Legislature, on or before July 1, 2020, based on findings pursuant to subdivision (a), and sunsets this reporting requirement on January 1, 2024.

FISCAL EFFECT: According to the Assembly Appropriations Committee, enactment of this bill could result in unknown, one-time DTSC costs, likely less than $500,000 to meet the requirements of the bill.

COMMENTS:

Need for the bill: "This bill requires DTSC, Cal Recycle and other stakeholders identified to develop a plan for the recycling and recovery of Lithium-Ion electric vehicle batteries. Since this is a fairly new problem, there are currently no programs in place to handle this. Currently there are approximately 300,000 electric vehicles on the road. This paired with pending legislation that could increase these numbers by 2040, and the Governor’s EO B-48-18 which requires all state entities working with the private sector and all appropriate levels of government to put at least 5 million zero-emission vehicles on the roads it’s time for California to come up with a plan to address the end of life needs of these batteries."

Zero emission vehicles (ZEVs): Zero emission vehicles, or ZEVs, is an umbrella term for hydrogen fuel cell electric vehicles, battery electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). ZEVs are vehicles that emit no exhaust gas from the onboard source of power, hence the term 'zero emission.'

How many ZEVs and Li-ion batteries are on the road today: California increased the number of ZEVs in the state by 1300% in six years—growing from 25,000 in 2012 to more than 450,000 today—and ZEVs now account for approximately 4.5-5% of all new car sales in California. All ZEVs contain a Li-ion battery to provide their electric power.

Li-ion batteries are hazardous waste: In California, because Li-ion batteries are considered a hazardous waste, any facility that accepts them for collection, storage, waste management, or recycling would have to be permitted by DTSC for managing hazardous waste. It is unknown how many facilities are permitted by DTSC to accept Li-ion batteries from hybrids and electric vehicles for management or recycling.

Li-ion battery waste: According to a presentation to DTSC from Occupational Knowledge International, by 2028, roughly 8 million kilotons of waste Li-ion batteries from ZEVs are expected to be generated; by 2038, the estimate is 55 million kilotons.

Infrastructure, as well as understanding, is lacking: Little research has been devoted to understanding the challenges and tradeoffs associated with end-of-life management strategies for ZEV batteries, and the pace at which new collection, second life, and recycling infrastructure must be scaled up. Developing a roadmap for building the infrastructure necessary to process used batteries and divert them to appropriate uses requires much research.

The bill requires DTSC to collaborate various state agencies and stakeholders to coordinate and report to the legislature about approaches for the reuse or recycling of Li-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes.

Analysis Prepared by: Paige Brokaw / E.S. & T.M. / (916) 319-3965 FN: 0003286

Date of Hearing: May 9, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2832

Author:(Dahle) – As Introduced Ver:February 16, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Department of Toxic Substances Control (DTSC) to identify recycling opportunities for lithium-ion (Li-ion) batteries and develop a grant program for Li-ion battery recycling. Additionally, this bill requires CalRecycle to develop a process for a consumer to properly dispose of a Li-ion battery from an electric vehicle, at no cost to the consumer. Specifically, this bill:

1. Requires DTSC to collaborate with the California Air Resources Board (ARB), the Department of Resources Recycling and Recovery (CalRecycle), the California Energy Commission (CEC), the Bureau of Automotive Repair (BAR), and stakeholders to do both of the following:
   1. Identify approaches for the reuse or recycling of Li-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes, in order to minimize the amount of potentially hazardous material that enters the state’s waste disposal system.
   2. Submit a report to the Legislature, on or before July 1, 2020, based on findings pursuant to subdivision (a), and sunsets this reporting requirement on January 1, 2024.
2. Requires DTSC to develop a grant program to fund the development of recycling and reuse opportunities for Li-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes.
3. Establishes that entities and persons eligible for a grant shall include, but are not limited to, manufacturers of Li-ion batteries for electric vehicles.

FISCAL EFFECT:

1. Increased DTSC costs in the range of $2 to $ 3 million for personnel (to create a new program, research existing technologies, network with entities and stakeholders to establish an advisory group, evaluate existing reporting systems for tracking the generation and disposition of batteries, identify the effectiveness of battery recycling and reuse programs, prepare reports and recommendations to the legislature, and to staff a grant program) and to have enough seed money for meaningful grant program. DTSC currently has no expertise on Li-ion vehicle battery recycling or operating a grant program as specified by this bill.
2. Unknown CalRecycle costs to develop a process for consumers to dispose of Li-ion electric vehicle batteries at no cost to the consumer.

It is difficult to identify this cost without any specificity or scope provided. For example, in 2005, statute was enacted to require retailers selling rechargeable batteries to have places for customers to bring their used batteries for recycling. At the time DTSC enforcement costs were projected to be $250,000 annually. If a similar program were adopted, CalRecycle enforcement costs would be much higher, since automotive dealers selling electric vehicles would likely be the responsible party, and hundreds of those exist throughout the state. If the author intends a stewardship program, paid for by manufacturers, CalRecycle annual costs would likely be in the $300,000 to $500,000 range (5 PY). If the requirement is only for CalRecycle to develop the process, but does not include implementation or enforcement costs, the cost is likely one-time costs of between $150,000 to $200,000 per year over a two-year period.

COMMENTS:

1. Purpose. According to the author, “Currently there are about 300,000 electric vehicles on the road, it’s time for California to come up with a plan to address the end of life needs of these batteries.”
2. Background. Li-ion batteries are widely used in portable electronics like laptops, smart phones, digital cameras, game consoles, and cordless power tools and are also used as vehicle batteries in zero-emission vehicles (ZEVs).

California increased the number of ZEVs in the state by 1300% in six years—growing from 25,000 in 2012 to more than 450,000 today—and ZEVs now account for approximately

4.5% - 5 % of all new car sales in California. All ZEVs contain a Li-ion battery to provide their electric power.

Given the growing number of ZEVs on the road, the fact Li-ion batteries are considered hazardous, and the need to have systems in place to collect these products when their useful useful lives are done, it is prudent to develop recycling and reuse opportunities for Li-ion batteries when the batteries are no longer suitable for their intended purposes.

1. No Cost to the Consumer. This bill requires DTSC to create a grant program to fund the development of recycling and reuse opportunities for Li-ion batteries from ZEVs and requires CalRecycle to develop a process for Li-ion disposal at no cost to the consumer.

It is a policy question as to whether the state should paying for collection and recycling.

For example, the collection and recycling for automotive lead-acid batteries is paid for through a $1 consumer fee and a $1 manufacturer fee for each lead-acid battery sold. Similarly, charging ZEV drivers a consumer fee to fund battery management, much like the lead-acid battery consumer fee, may be an appropriate option for funding a new state program.

1. Related Legislation. AB 2407 (Ting) requires the CalEPA secretary 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 Li-ion vehicle batteries sold with motor vehicles in the state. AB 2407 is on suspense in this committee.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: April 10, 2018

ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS

Bill Quirk, Chair

ABPCA Bill Id:AB 2832 (

Author:Dahle) – As Introduced Ver:February 16, 2018

SUBJECT: Recycling and reuse: lithium-ion batteries.

SUMMARY: Requires the Department of Toxic Substances Control (DTSC) to identify recycling opportunities for lithium-ion batteries and develop a grant program for lithium-ion (Li-ion) battery recycling. Specifically, this bill:

1. Establishes the intent of the Legislature to avoid the disposal in landfills of lithium-ion batteries from electric vehicles, as electric vehicles become a larger portion of the vehicle fleet, by identifying opportunities for the reuse and recycling of those lithium-ion batteries that are no longer suitable for their intended purposes; and, provide consumers with an opportunity to properly dispose of Li-ion batteries from electric vehicles, at no cost to consumers.
2. Requires DTSC to collaborate with the State Air Resources Board (ARB), the Department of Resources Recycling and Recovery (CalRecycle), the State Energy Resources Conservation and Development Commission (CEC), the Bureau of Automotive Repair (BAR), and stakeholders to do both of the following:
   1. Identify approaches for the reuse or recycling of Li-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes, in order to minimize the amount of potentially hazardous material that enters the state’s waste disposal system; and,
   2. Submit a report to the Legislature, on or before July 1, 2020, based on findings pursuant to subdivision (a), and sunsets this reporting requirement on January 1, 2024.
3. Requires DTSC to develop a grant program to fund the development of recycling and reuse opportunities for lithium-ion batteries from electric vehicles when the batteries are no longer suitable for their intended purposes.
4. Establishes that entities and persons eligible for a grant shall include, but are not limited to, manufacturers of Li-ion batteries for electric vehicles.
5. Requires CalRecycle to develop a process for a consumer to properly dispose of a lithium-ion battery from an electric vehicle, at no cost to the consumer.

EXISTING LAW:

1. Prohibits the disposal of a lead-acid battery at a solid waste facility, or on or in any land, surface waters, watercourses, or marine waters. (Health and Safety Code (HSC) § 25215.2)
2. Establishes the Lead-Acid Battery Recycling Act of 2016 (Act) to impose fees on lead-acid batteries to fund lead contamination cleanup. (HSC § 25215)
3. Establishes the California Rechargeable Battery Recycling Act to require retailers to have a mechanism to accept all non-vehicular rechargeable batteries from consumers for recycling. (Public Resources Code § 42451)

FISCAL EFFECT: Unknown.

COMMENTS:

Need for the bill: According to the author, "This bill requires DTSC, Cal Recycle and other stakeholders identified to develop a plan for the recycling and recovery of Lithium-Ion electric vehicle batteries. Since this is a fairly new problem, there are currently no programs in place to handle this. Currently there are approximately 300,000 electric vehicles on the road. This paired with pending legislation that could increase these numbers by 2040, and the Governor’s EO B-48-18 which requires all state entities work with the private sector and all appropriate levels of government to put at least 5 million zero-emission vehicles on the roads it’s time for California to come up with a plan to address the end of life needs of these batteries."

Zero emission vehicles (ZEVs): Zero emission vehicles, or ZEVs, is an umbrella term for hydrogen fuel cell electric vehicles, battery electric vehicles (EVs), and plug-in hybrid electric vehicles (PHEVs). ZEVs are vehicles that emit no exhaust gas from the onboard source of power, hence the term 'zero emission.'

Value of ZEVs to California goals: California has some of the most ambitious climate emission reduction goals in the nation, which include goals to reduce petroleum use in California by up to 50% from 2015 levels by 2030, and reducing greenhouse gas emissions 40% below 1990 levels by 2030. The transportation sector represents about 40% of California's total greenhouse gas emissions portfolio, so promoting ZEVs, and replacing traditional gas-powered cars with ZEVs, is a very big part of California's mission to reduce those climate emissions.

Encouraging ZEV sales is a state priority: In 2012, Governor Jerry Brown issued Executive Order (EO) B-16-12 directing state government to help accelerate the market for ZEVs in California. This EO calls for 1.5 million ZEVs in California by 2025 and establishes several milestones to achieve this goal.

In 2014, the State Legislature passed and Governor Brown signed the California Charge Ahead Initiative (SB 1275, De Léon, Chapter 530, Statutes of 2014) to support consumer incentives and rebates to help achieve one million ZEVs on California’s roads by January 1, 2023.

In 2015, the State Legislature passed and Governor Brown signed into law the Clean Energy and Pollution Reduction Act of 2015 (SB 350, De Léon, Chapter 547, Statutes of 2015), which established a statewide policy to effectuate widespread electrification of the transportation sector.

Most recently, on January 26, 2018, Governor Jerry Brown signed EO B-48-18 to call for a new target of 5 million ZEVs in California by 2030. The Governor is also proposing a new eight-year initiative to continue the state’s clean vehicle rebates and spur more electric vehicle charging station infrastructure investments. This $2.5 billion initiative is aimed to bring 250,000 vehicle charging stations to California by 2025.

State policies supporting ZEVs: Supporting those lofty goals are various state policies that have been enacted or promulgated by state agencies to expand the fleet of ZEVs on California roads.

The State of California continues to provide monetary rebates of up to $2,500 for the purchase or long-term (30 months or more) lease of ZEVs. (There are also federal rebates for ZEVs consumers can take advantage of in addition to the state's rebates.)

The state also gives high occupancy vehicle (HOV) lane access to ZEV drivers, regardless of being a single passenger or HOV, as a benefit for driving a ZEV.

The California Air Resources Board also has the ZEV mandate, which requires auto manufacturers to produce an increasing number of pure ZEVs (battery electric as well as fuel cell electric vehicles).

How many ZEVs and Li-ion batteries are on the road today: California increased the number of ZEVs in the state by 1300% in six years—growing from 25,000 in 2012 to more than 450,000 today—and ZEVs now account for approximately 4.5-5 percent of all new car sales in California. All ZEVs contain a Li-ion battery to provide their electric power.

Li-ion batteries: Li-ion batteries, widely used in portable electronics like laptops, smart phones, digital cameras, game consoles, and cordless power tools, are also widely used as vehicle batteries in ZEVs.

The traditional Li-ion chemistry involves a lithium cobalt oxide cathode and a graphite anode. Li-ion batteries are efficient at holding charges and recharging to power a car, and traditional Li-ion batteries can have hundreds to a few thousand charge cycles through their lives. The life-span of Li-ion battery is anywhere between 10-20 years.

Li-ion batteries are hazardous waste: All batteries are considered hazardous waste in California when they are discarded. Batteries are considered hazardous because of the metals and/or other toxic or corrosive materials contain within. Batteries are potentially a valuable source of recyclable metal.

All batteries in California that are intended for disposal must be recycled, or taken to a household hazardous waste disposal facility, a universal waste handler (e.g. storage facility or broker), or an authorized recycling facility.

Hazardous waste regulations designate a category of hazardous wastes called "universal waste" (u-waste). DTSC regulation recognizes all batteries that exhibit a characteristic of a hazardous waste as a u-waste.

This bill recognizes automotive Li-ion batteries as hazardous waste consistent with state laws and regulations.

Li-ion battery waste: According to CalRecycle's 2014 Waste Characterization Study, batteries, which includes include car, flashlight, small appliance, watch, and hearing aid batteries, represented 11,887 tons (0.003%) of California's overall disposed waste stream. However, this figure does not distinguish between single-use and automotive batteries, but it is also likely that automotive Li-ion batteries represent a de minimis amount of this total.

According to a presentation to DTSC from Occupational Knowledge International, by 2028, roughly 8 million kilotons of waste Li-ion batteries from ZEVs are expected to be generated; by 2038, the estimate is 55 million kilotons.

Collection rates today: It is unknown how many Li-ion batteries are being collected for end of life management.

There are currently about 35 million total cars on the road in California. Of those, about 450,000-500,000 are ZEVs. ZEV car sales started to increase in 2011, when they still represented less than 0.5% of total sales. The life span of those cars' batteries have not yet maxed out, so ZEV car owners have not yet, en masse, needed replacement Li-ion car batteries. There simply is no data from new car dealers or auto body shops on spent Li-ion batteries being collected.

While current end-of-life management for automotive Li-ion batteries is completely unknown, there is no doubt that there is a need for infrastructure to manage the inevitable waste of ZEV Li-ion batteries.

Current Li-ion battery management: According to the U.S. Geological Survey, historically, lithium recycling has been insignificant, but has increased over time owing to the growth in consumption of lithium batteries. One U.S. company has recycled lithium metal and lithium-ion batteries since 1992 at its facility in British Columbia, Canada. In 2009, the U.S. Department of Energy awarded the company $9.5 million to construct the first U.S. recycling facility for lithium-ion batteries, which was still under construction in 2014.

In California, because Li-ion batteries are considered a hazardous or universal waste, any facility that accepts them for collection, storage, waste management, or recycling would have to be permitted by the Department of Toxic Substances Control for managing hazardous waste.

It is unknown how many facilities are permitted by DTSC to accept Li-ion batteries from hybrids and electric vehicles for management or recycling.

Market for Li-ion batteries: End-of-life management of Li-ion automotive batteries is still nascent, but, theoretically, they could be collected for end-of-life management as hazardous waste, recycling, reuse, or potentially even refurbishment.

If there is a market for reusing Li-ion and Cobalt, recycling these automotive batteries could prove to be lucrative.

There is also potential for repurposing Li-ion batteries for alternative (non-vehicular) energy storage. According to the report by the Lawrence Livermore Laboratory prepared for the California Energy Commission, Plug-In Electric Vehicle Battery Recycling Scale-Up Strategies for California (2015-2050): Logistics, Life-Cycle Environmental Implications, and Second-Life Potential, batteries used in ZEVs "have a lifetime of 8-10 years, and they have significant capacity left for less demanding, second-life stationary energy storage applications after their capacity fades below acceptable levels [for a car]. This second-life battery can be used in California’s electricity grid for demand response and frequency regulation to help stabilize the network, or to support residential customers using off-grid solar arrays. At this time, the late-stage degradation pattern of batteries is not yet quantified."

California has battery recycling programs, but not Li-ion: The California Rechargeable Battery Recycling Act (Act) (AB 1125, Pavley, Chapter 572, Statutes of 2005) banned all household batteries from solid waste landfill disposal and required retailers to take back rechargeable batteries for recycling at no cost to consumers. Rechargeable batteries covered under the Act include small, non-vehicular, rechargeable nickel‑cadmium, nickel metal hydride, lithium ion, or sealed lead‑acid battery, or a battery pack containing these types of batteries.

According to DTSC's data for 2012, nearly 22.2 million pounds of rechargeable batteries were collected from consumers for recycling, which include approximately 700,000 pounds of Li-ion batteries (non-vehicular) batteries. It is difficult to say how well this program has worked for collecting household lithium-ion batteries because batteries contained within electronic devices that are recycled (e.g. cell phones and laptop computers) are not counted separately but may represent a significant portion of the total quantity, and California law does not require battery handlers or recyclers to report the number or weight of batteries collected for recycling; however, the increase in battery collection has steadily increased over the years since the Act was enacted.

Under the Lead-Acid Battery Recycling Act of 2016 (AB 2153, C. Garcia, Chapter 666, Statutes of 2016), consumers are charged a $1 fee per lead-acid car battery at the point of sale. Manufacturers also pay a $1 fee on each battery sold in the state. The money from the fee revenues are used to clean up areas of the state that have been contaminated by the production and recycling of lead acid batteries.

According to a 2007 contracted report to the California Integrated Waste Management Board (CIWMB, which is now CalRecycle), Framework for Evaluating End-of-Life Product Management Systems in California, the need to have disposal options for lead-acid batteries lead to an industry response by BCI, Inc. to promote model legislation for states to enact. That resulted in a model that included a landfill ban, a mandatory retailer-take back system, and mandatory collection of deposit on the purchase of a new battery if an old battery is not returned. California adopted a modified version of the model legislation in 1989. According to the auto care industry, 99.6% of all lead-acid core batteries are currently recycled in California.

Given the history with developing lead-acid battery waste management in California, the author may wish to consider including industry perspective in the study required by the bill. This could be done by clarifying that "stakeholders" in section 42420.2 specifically includes ZEV manufacturers, battery manufacturers, and hazardous waste management facility operators in California.

Infrastructure, as well as understanding, is lacking: Little research has been devoted to understanding the challenges and tradeoffs associated with end-of-life management strategies for ZEV batteries, and the pace at which new collection, second life, and recycling infrastructure must be scaled up.

Developing a roadmap for building the infrastructure necessary to process used batteries and divert them to appropriate uses requires much research.

The bill requires DTSC, in collaboration with CalRecycle, ARB, BAR, and the CEC, to study the potential approaches to reuse or recycling for ZEV Li-ion batteries once they are spent. Given the exponentially growing number of ZEVs on the road, the fact Li-ion batteries are considered hazardous, and the need to have systems in place to collect these products when they are done with their useful life, studying the possibilities now is prudent.

Who should foot the bill for Li-ion battery management?: The bill currently requires DTSC to create a grant program to fund the development of recycling and reuse opportunities for Li-ion batteries from ZEVs.

It is a policy question as to whether the state – taxpayers – should be paying the bill for collection and recycling. Collection and recycling for automotive lead-acid batteries, for example, are paid for through a $1 fee paid by consumers and a $1 fee by manufacturers on each lead-acid battery sold.

The author believes that, given the state resources, such as GGRF funds, invested in getting ZEVs on the road in place of gas-powered cars, there should be commensurate investment from the state to establish the infrastructure to handle the waste batteries as a result of those ZEV policies. For instance, after January 1, 2021, GGRF funds will not be legally restricted to greenhouse gas-reduction projects, and could be used to jumpstart the infrastructure economy for Li-ion battery collection and recycling. State funds could be used to incentivize auto-body shops to be trained in battery removal and permitted to store the batteries; assist battery collectors, recyclers, and transporters to get the appropriate hazardous waste permits; and, support state efforts to regulate the resale/reuse of Li-ion batteries.

On the contrary, ZEVs receive state and federal rebates to lower the purchase price of the vehicle, and ZEV drivers do not have to pay the state road improvement fee, which contributes to the state's road repair fund. Therefore, charging ZEV drivers a consumer fee to fund battery management, much like the lead-acid battery consumer fee, may be an appropriate option for funding a new state program.

As a practical reality, it should be noted that auto manufacturers are currently struggling to meet the ZEV mandate to manufacture a set amount of ZEVs, as determined and mandated by ARB. Despite state and federal incentives for consumers to buy ZEVs, HOV lane access, and free charging stations statewide, consumers have not been purchasing ZEVs at a rate fast enough for the manufacturers to comply with the ZEV mandate. Various factors influence the sale of ZEVs, such as gas prices, which is out of the manufacturers' control. Adding a Li-ion battery recycling fee may make the uphill battle to selling ZEVs, and meeting the Governor's ZEV goals, more challenging.

There are many unknowns about Li-ion collection, transport, recycling options, and marketability. Before the state appropriates or collects money and creates a program, it needs to understand the scope of what is needed.

Related legislation:

1. AB 193 (Cevantes). Provides rebates for electric vehicles and rebates for the replacement or refurbishment of electric vehicle batteries. Held on Inactive file in the Senate.
2. AB 2407 (Ting). Requires the California Environmental Protection Agency to convene a Lithium-Ion Car Battery Recycling Advisory Group to review and advise the Legislature on policies pertaining to the recovery and reuse of Li-ion batteries. Will be heard in this Committee on April 24, 2018.

REGISTERED SUPPORT / OPPOSITION:

Support

State of California Auto Dismantlers Association

Opposition

None on file.

Analysis Prepared by: Paige Brokaw / E.S. & T.M. /