Existing law establishes in the California Environmental Protection Agency the Department of Resources Recycling and Recovery, which administers various solid waste management and recycling programs.

This bill would require the department to draft and submit a report to the Legislature, on or before January 1, 2028, relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, as defined, and other similar valuable materials as reasonably decided by the department, contained within products in the state, as specified. The bill would require the department to provide opportunities for public input and to perform outreach to potentially interested parties, as specified. The bill also would authorize the department to make recommendations to industries on the promote a circular economy for precious metals, critical minerals, and other similar valuable materials within products, including, but not limited to, best practices for product design to optimize the ability to recycle precious metals, critical minerals, and other similar valuable materials at the products end of life.

Existing law establishes in the California Environmental Protection Agency the Department of Resources Recycling and Recovery, which administers various solid waste management and recycling programs.

This bill would require the Department of Resources Recycling and Recovery department to draft and submit a report to the Legislature Legislature, on or before January 1, 2028, relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, as defined, and other similar valuable materials as reasonably decided by the department, contained within products in the state, as specified. The bill would require the department to provide opportunities for public input and to perform outreach to potentially interested parties, as specified. The bill also would authorize the department to make recommendations to industries on the best practices for product design to optimize the ability to recycle precious metals, critical minerals, and other similar valuable materials at the products end of life.

Existing law establishes in the California Environmental Protection Agency the Department of Resources Recycling and Recovery, which administers various solid waste management and recycling programs.

This bill would require the Department of Resources Recycling and Recovery to draft and submit a report to the Legislature on or before January 1, 2028, relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, as defined, and other similar valuable materials as reasonably decided by the department, contained within products in the state, as specified. The bill would require the department to provide opportunities for public input and to perform outreach to potentially interested parties, as specified.

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

SB 235 (McNerney) - Recycling: precious metals and critical minerals: report

Bill Summary:

This bill would require the Department of Resources Recycling and Recovery (CalRecycle) to submit a report to the Legislature relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, and other similar valuable materials contained within products in the state.

Fiscal Impact:

• CalRecycle estimates ongoing costs of $188,000 annually beginning in Fiscal Year (FY) 2026-27 for one new position to conduct research and stakeholder outreach, create a report, and manage a contract, as well as one-time costs of $500,000 between FYs 2026-27 and 2027-28 for a contract to gather data regarding precious metals, critical minerals, and other similar valuable materials within products currently outside of CalRecycle's expertise, identify extraction and separation processes in mining operations, and evaluate revenue potential (General Fund or special fund).

Background:

Universal wastes are hazardous wastes that are widely produced by households and many different types of businesses. Universal wastes include televisions, computers, other electronic devices, batteries, fluorescent lamps, mercury thermostats, and other mercury containing equipment, among others.

Electronic waste (E-waste) refers to any unwanted electronic device and is classified as universal waste. E-waste frequently contains hazardous materials, predominantly lead and mercury, and is produced by households, businesses, governments, and industries. In 2022, over 60 million tons of e-waste was generated globally. In the US, it is estimated that 46 pounds of e-waste is generated per person per year, for a total of 7 million tons. Each year in California, hundreds of thousands of computers, monitors, copiers, fax machines, printers, televisions, and other electronic items become "obsolete" in the eyes of consumers. Rapid advances in technology and an expanding demand for new features accelerate the generation of e-waste. The result is a growing challenge for businesses, residents, and local governments as they search for ways to reuse, recycle, or properly dispose of this equipment.

In 2022, it was reported that e-waste worldwide contained 34 million tons of metals. According to a 2018 CalRecycle report entitled “Future of Electronic Waste Management in California,” from 2003-2018, approximately 2.2 billion pounds of covered video display devices were recycled. Currently, there are 19 in-state facilities for e-waste recyclers and 288 e-waste collectors.

Recycling e-waste could be a promising alternative to mining for recovering valuable materials. According to the DOE, only 17percent of e-waste was collected and recycled globally in 2019 (15 percent in the United States), the remainder was discarded, representing approximately $57 billion in raw material value. According to the United Nations Environmental Program, as much as 7 percent of the world’s gold may be currently contained in e-waste. The United States Environmental Protection Agency (U.S. EPA) reports that for every 1,000,000 discarded cell phones, there are 35,000 pounds of copper, 772 pounds of silver, 33 pounds of palladium, and 75 pounds of gold. E-waste worldwide contains over 8 billion pounds of critical raw materials.

Proposed Law:

This bill would require CalRecycle to submit a report to the Legislature on precious metals, critical minerals, and other similar valuable materials contained within products in the state. Specifically, this bill would:

1. Require CalRecycle to submit a report to the Legislature relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, and other similar valuable materials contained within products in the state.
2. Require the report to discuss:
   1. Precious metals, critical minerals, and other similar valuable materials available in products collected in state programs that address electronic waste.
   2. The existing methods to extract critical minerals and valuable materials from products.
   3. The existence of current in-state processes to extract and separate these materials, whether that extraction is being used on recycled consumer goods or in mining operations.
   4. The ability of California to recycle materials in products sold, used, and disposed in the state to facilitate the transition away from fossil fuels.
   5. The benefits to California from recycling these materials in products sold, used, and disposed in the state.
   6. The potential for revenue to the state in extracting and creating a stockpile of critical minerals for domestic manufacturing of green technology.
   7. Barriers to create, expand, and incentivize the ability to recycle and reuse critical minerals within California.
   8. Policy recommendations to further California’s ability to recycle and reuse these materials in products.
3. Allow the report to discuss the environmental, economic, and social implications of the existing methods to extract precious metals, critical minerals, and other similar valuable materials from products at a commercial scale.
4. Authorize CalRecycle to make recommendations to promote a circular economy for precious metals, critical minerals, and other similar valuable materials within products, including, but not limited to, best practices for product design to optimize the ability to recycle precious metals, critical minerals, and other similar valuable materials at the product’s end of life.
5. Authorize CalRecycle to consult with the Governor’s Office of Business and Economic Development (GO-Biz) or DTSC for relevant or useful information.
6. Require CalRecycle to provide opportunities for public input and perform outreach to potentially interested parties including, but not limited to: researchers, academics, scientists, the business community, manufacturers, and environmental organizations.

Related Legislation:

SB 1306 (Skinner, 2024) would have required CalRecycle to submit a report to the Legislature relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, and other similar valuable materials contained within products in the state. This bill was held on Suspense in this committee.

SB 615 (Allen, 2024) would have required vehicle traction batteries to be recycled at the end of their useful life and required the battery supplier to pay the actual and reasonable regulatory costs of DTSC in implementing and enforcing the bill. This bill was vetoed by Governor Newsom.

AB 2440 (Irwin, Chapter 351, Statutes of 2022) established the Responsible Battery Recycling Act of 2022 to create a stewardship program for the collection and recycling of covered batteries as defined.

SB 1215 (Newman, Chapter 370, Statutes of 2022) expands the definition of “covered electronic device” to include a “covered battery-embedded product”, or a new or refurbished product containing a battery that is not intended to be easily removed from the product by the consumer with no more than commonly used household tools, to be covered by the Electronic Waste Recycling Act.

AB 2832 (Dahle, Chapter 822, Statutes of 2018) requires the Secretary for the California Environmental Protection Agency to convene a research 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.

AB 2901 (Pavley, Chapter , Statutes of 2004) requires retailers to implement a system for the acceptance and collection of used cell phones for reuse, recycling, or proper disposal and made it unlawful for a retailer to sell a cell phone to a consumer unless compliant with the law.

SB 20 (Sher, Chapter 526, Statutes of 2003) enacts the Electronic Waste Recycling Act of 2003 to provide for the convenient recycling of covered electronic devices in California.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Blakespear, Chair

2025 - 2026 Regular

Bill No: SB 235

SUBJECT: Recycling: precious metals and critical minerals: report

DIGEST: This bill requires the Department of Resources Recycling and Recovery (CalRecycle) to submit a report to the Legislature relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, and other similar valuable materials contained within products in the state.

ANALYSIS:

Existing law:

1. Pursuant to the Electronic Waste Recycling Act of 2003 (EWRA), among other things, (Public Resources Code (PRC) § 42460 et seq.):
   1. Establishes covered electronic waste recycling fees for covered electronic devices and covered battery-embedded electronic devices due to consumers at the time of purchase.
   2. Establishes processes for consumers to return, recycle, and ensure the safe and environmentally sound disposal of video display devices, such as televisions and computer monitors that are hazardous wastes when discarded.
   3. Imposes certain obligations on a manufacturer of a covered electronic device (CED), including, but not limited to, requiring a manufacturer to submit a report to the Department of Resource Recovery and Recycling (CalRecycle), as provided, and to make information available to consumers that describes where and how to return, recycle, and dispose of the CED.
   4. Requires an exporter of covered electronic waste, among other things, to notify the Department of Toxic Substances Control (DTSC) of the destination, disposition, contents, and volume of the waste intended for recycling or disposal to be exported and demonstrate that they attempted to locate an in-state covered electronic waste recycler but that the waste could not be managed in-state.
2. Requires the Secretary for the California Environmental Protection Agency to convene a research 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. (PRC §42450.5 et seq.)
3. Requires the DTSC to adopt regulations that prohibit an electronic device from being sold or offered for sale in California if the electronic device is prohibited from being sold or offered for sale in the European Union (EU) on and after its date of manufacture, to the extent that Directive 2002/95/EC, adopted by the European Parliament and the Council of European Union on January 27, 2003, as amended by the Commission of European Communities, prohibits that sale due to the presence of certain heavy metals. (Health and Safety Code (HSC) §25214.10 et seq.)
4. Requires DTSC to adopt regulations to identify electronic devices that DTSC determines are presumed to be, when discarded, a hazardous waste. Requires a manufacturer of an electronic device that is identified in those regulations to send to any retailer that sells that electronic device a notice that identifies the electronic device and informs the retailer that the electronic device is subject to the covered electronic waste recycling fee. (HSC §25214.10 et seq.)
   

This bill:

1. Requires CalRecycle to submit a report to the Legislature relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, and other similar valuable materials contained within products in the state. Requires the report to discuss:
   1. The existing and developing technologies to extract critical minerals and valuable materials from products.
   2. The benefits to California from recycling materials in products sold and used in the state to facilitate the transition away from fossil fuels.
   3. The existence of current in-state processes to extract and separate critical minerals, in both mining applications and recycling consumer goods.
   4. The potential for revenue to the state in extracting and creating a stockpile of critical minerals for domestic manufacturing of green technology.
   5. Barriers to incentivize and create the ability to recycle and reuse critical minerals within California.
   6. Policy recommendations to further California’s ability to recycle and reuse these materials in products.
2. Authorizes CalRecycle to make recommendations to industries on the best practices for product design to optimize the ability to recycle critical minerals.
3. Authorizes CalRecycle to consult with the Governor’s Office of Business and Economic Development (GO-Biz) or DTSC for relevant or useful information.
4. Requires CalRecycle to provide opportunities for public input and perform outreach to potentially interested parties including, but not limited to: researchers, academics, scientists, the business community, manufacturers, and environmental organizations.

Background

1. Critical minerals and rare earth elements (REEs). Critical minerals are non-fuel minerals, elements, substances, or materials that serve an essential function in the manufacturing of a product, have a supply chain that is vulnerable to disruption, and are essential to the economic or national security of the United States. As of 2022, the United States Geological Survey (USGS) identified 50 minerals based on an evaluation of the above criteria and additional criteria specified in The Energy Act. Rare earth elements (REEs) represent 17 of the 50 critical minerals. REEs are found throughout the earth’s crust, but most often occur in low concentrations that are too small for economical extraction. However, REEs are often mined. The U.S. used to be a major producer of REEs in the 1960s and 1970s, but China has rapidly increased its critical mineral and REE production and now dominates on the global scale. The U.S. imports about 100% of 17 of these minerals and 50% of other minerals.^[1]

Many of these critical minerals are integral to the production and development of clean energy technology. As the energy sector continues to decarbonize, the list and demand for these materials will increase.^[2] Different technologies require different materials: for example, lithium, cobalt, and nickel are used in electric vehicles, whereas REEs are used in permanent magnets for wind turbines.^2,[3] Thirteen critical minerals, including 5 REEs, which are also important to the energy transition will experience a high supply risk from now to 2035.² The International Energy Agency reports that the demand for critical minerals for energy could be six times the demand of 2020 by 2040.^1,[4]

Universal waste and e-waste. Universal wastes are hazardous wastes that are widely produced by households and many different types of businesses. Universal wastes include televisions, computers, other electronic devices, batteries, photovoltaic modules (PV modules), fluorescent lamps, mercury thermostats, and other mercury-containing equipment, among others. California’s Universal Waste Rule allows individuals and businesses to transport, handle, and recycle certain common hazardous wastes in a manner that differs from the requirements for most hazardous wastes. The more relaxed requirements for managing universal wastes were adopted to ensure that they are managed safely and are not disposed of in the trash. The universal waste requirements are also less complex and easier to comply with than those for hazardous waste, thereby increasing compliance.

E-waste is a subset of universal waste and refers to any unwanted electronic device. E-waste frequently contains hazardous materials, predominantly lead and mercury. In the U.S., it is estimated that 46 pounds of e-waste is generated per person per year, for a total of 7 million tons per year. Each year in California, hundreds of thousands of computers, monitors, copiers, fax machines, printers, televisions, and other electronic items become "obsolete" in the eyes of consumers. Rapid advances in technology and an expanding demand for new features accelerate the generation of e-waste. The result is a growing challenge for businesses, residents, and local governments as they search for ways to reuse, recycle, or properly dispose of this equipment.

1. Recovering e-waste. Recycling e-waste could be a promising alternative to mining for recovering critical minerals and valuable materials. E-waste worldwide contains over 8 billion pounds of critical materials.^[5] According to the DOE, only 17.4% of e-waste was collected and recycled globally in 2019 (15% in the United States), the remaining 83% was discarded, representing approximately $57 billion in raw material value. The United States Environmental Protection Agency (U.S. EPA) reports that for every 1,000,000 discarded cell phones, there are 35,000 pounds of copper, 772 pounds of silver, 33 pounds of palladium, and 75 pounds of gold. Some of the challenges e-waste recovery faces include a fragmented recycling value chain, lack of incentives for recycling, technological difficulties of separation processes, a rapidly evolving end-use market, and historically toxic extraction processes.^[6],[7] The commercial recycling of REEs is extremely low and there are various research efforts to advance recycling.^3,6 Efficient recycling of REEs requires the development of fully integrated and logistically sound recycling flow sheets including dismantling, sorting, pre-processing, and extractive metallurgical processes.³ The extractive processes in recycling may require large amounts of chemicals and energy, but extracting critical minerals from products, such as magnets, can reduce greenhouse gas emissions and the release of toxic substances that otherwise result from mining and refining operations.^6,[8] Through optimal recycling rates, over half of the annual lithium and certain REE demand could be met by the mid-21^st century.^[9]
2. California’s existing recycling infrastructure for electronics. California has had mechanisms for the collection of e-waste over the past two decades. California enacted the Electronic Waste Recycling Act of 2003 (SB 20 Sher, Chapter 526, Statutes of 2003), which established the covered electronic waste recycling program. This program developed a fee collected by retailers during the purchase of a covered electronic device to offset the cost of safe collection, handling and recycling of end-of-life, unwanted electronic devices. The Electronic Waste Recycling Act was amended in 2022 to expand the scope of recycled products and included covered battery-embedded products (SB 1215 Newman, Chapter 370, Statues of 2022). In 2004, the Cell Phone Recycling Act was established, which requires cell phone retailers to collect cell phones for reuse, recycling, or disposal (AB 2901 Pavley, Chapter 891, Statutes of 2004). The Responsible Battery Act of 2022 (AB 2440, Chapter 351, Statutes of 2022) was the first extended producer responsibility (EPR) program for electronics. This EPR program requires producers to create a stewardship organization to establish a stewardship program for the collection and recycling of covered batteries. The goal of EPR programs is to reduce waste, support the recycling of materials, create circular economies, and sometimes encourage changes in product design to minimize environmental impacts. The regulations for the battery stewardship program will be effective by April 1, 2025. All of these programs are implemented and monitored mainly by CalRecycle and DTSC.
3. Annual reporting for e-waste collectors, recyclers, and generators. As of 2024, there are 288 e-waste collectors and 19 facilities for e-waste recycling in California. An annual report is required to be submitted to DTSC for any universal waste collector and/or recycler that:
   1. Generated 11,000 pounds or more of e-waste from on-site activities and operations; or
   2. Accepted 220 pounds or more of e-waste from off-site sources (e.g., households, businesses) but did not perform any treatment; or
   3. Treated and/or recycled any amount of electronic waste.

These reports are submitted to DTSC using the Universal Waste Electronic Devices online system or by hard copy. The report, among other things, requires handlers and recyclers to report the types of e-waste received and/or treated, including electronic devices and cathode ray tubes and glass, as well as any methods of treatment.

1. Shipping e-waste abroad. A two-year investigation by the Basel Action Network found that a third of tracked electronics went overseas. Much of this waste is handled in poorly regulated facilities, or by individuals who scavenge landfills to extract usable or high-value components (such as copper wiring) in a dangerous and difficult work sometimes called “urban mining”. E-waste can be burned, generating toxic dioxins, or dismantled, exposing people to toxic materials such as mercury. Many e-waste collection and recycling facilities in California do not recover commodities on-site, and instead send them to downstream processors and refineries. In response to social and environmental concerns about these labor practices, SB 568 (Newman, Chapter 308, Statutes of 2023) was signed into law requiring any person who exports e-waste or a covered electronic device to a foreign country to, at least 60 days prior, demonstrate the person attempted to locate an in-state e-waste recycler and that the e-waste or covered electronic device could not be managed by an in-state e-waste recycler. It also requires that the person demonstrate that the waste or device will be managed within facilities whose operations meet or exceed the standards of the Organization for Economic Cooperation and Development, an international organization designed to foster economic growth, employment, and a rising standard of living while ensuring the protection of human health and the environment.
2. Lithium-ion car battery recycling advisory group. In 2018, AB 2832 (Dahle, Chapter 822, Statutes of 2018) was signed into law, requiring the Secretary for Environmental Protection to convene a 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 (LIBs) sold with motor vehicles in the state. The advisory group, which met quarterly from Fall 2019 to Spring 2022, was facilitated by researchers from UC Davis and contained members from 19 governmental, non-profit, and industry organizations. The group was tasked to “submit policy recommendations to the Legislature… aimed at ensuring that as close to 100 percent 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.” The group voted on policy proposals, which were then subject to a public comment period, before the report was released in March 2022. The recycling subcommittee of the advisory group was formed to identify policy options that address barriers to recycling and opportunities for minimizing environmental and economic costs while maximizing material recovery. The scope included material recovery through recycling processes.

The report highlights the high-level barriers to LIB recycling in the state, including the regulatory environment, the economic challenges and logistical costs, a limited supply of LIBs, a lack of a LIB battery supply chain to purchase the recovered materials after recycling, and a lack of information about the chemical makeup of the battery. It also highlights the opportunities of LIB recycling, including the environmental and social impact, the economic benefits, and the support of the development of a domestic LIB supply chain. The subgroup recommended policy changes to encourage reuse, repurposing, and recycling of LIBs including: providing financial incentives to recycle LIBs in California, establishing a timeline for hazardous waste processing permits, and expanding eligibility for relevant incentive programs to include reused and repurposed batteries. The report also contained recommendations for future research.

1. New vision for e-waste management. Developing sustainable, domestic supply chains for strategic minerals and precious metals, including critical minerals and rare earth metals has become a national security and state priority. The previous federal administration released a review on resilient supply chains, under former President Biden’s Executive Order on Supply Chains, which highlights recycling as a key component of a broader supply chain to secure resilient and sustainable supplies for these minerals in a manner that supports domestic job creation and environmental justice. The recent Inflation Reduction Act also includes tax credits for electric vehicles that meet certain eligibility requirements, including domestic content of minerals produced or recycled in North America.

A 2018 CalRecycle report titled, Future of Electronic Waste Management in California, also highlights California’s interest in this area, stating that “CalRecycles’s vision is that e-waste management should move beyond focusing solely on hazardous waste and should emphasize resource recovery and the waste management hierarchy by prioritizing source reduction, reuse, and recycling.”

Comments

1. Purpose of Bill. According to the author, “California is a national leader on clean energy, but we’re in danger of falling behind other states when it comes to reusing critical minerals. Much of our clean energy manufacturing still relies on critical minerals that are mined in China in ways that are not only damaging to the environment, but also carbon-intensive. SB 235 will jumpstart the creation of a new market in California for recapturing rare earth metals from old batteries, cellphones, and other electronics and reusing them for our own clean energy industry. Recycled and reused rare earth metals have the potential to meet as much as 40 percent of the demand for critical minerals in the United States, China and Europe by 2050. Over the next few decades, the importance of critical minerals to our energy transition, economic growth, and national security will only grow. Creating a market in California for rare earth metals recycling will not only reduce climate impacts but also promises to be cost-effective. Plus, it will help California guard against the threat of expensive tariffs on goods from China and other countries.”
   
2. The harms of extraction in mining. Historically, critical minerals and REEs have been extracted from land mines. This type of extraction is accompanied by a slew of negative environmental and social consequences. Deforestation can be necessary to access deposits and mining pollutes the air and water with toxic heavy metals.^[10] Nearby communities can be exposed to these toxins, increasing the risk of adverse public health impacts. The degradation of the land can increase the risk of flooding and landslides, and the tailings used to store the displaced materials have a history of failure, swallowing communities and killing hundreds over the last couple of decades.^[11],[12] The extraction of critical minerals is also extremely water and energy-intensive and requires a significant amount of chemicals, including fossil fuels.^12,[13] The mining industry is known to violate human rights, commit labor abuses, displace indigenous communities, and perpetuate violence towards environmental defenders.¹² Furthermore, practices to mine critical minerals for the green transition may echo the patterns of exploitation, dispossession, and inequality that have occurred during the fossil fuel era.¹²

The consequences of mining critical minerals are also found at depth. Nickel, copper, and cobalt reside in deep seabed mineral deposits in amounts greatly exceeding the supply on land. However, deep-sea mining can lead to sediment plumes that may be deleterious to abyssal life, even miles away from the drilling site.^[14] Nearly 1,000 marine scientists and policy experts globally have called for a moratorium on deep sea mining until more scientific research is conducted to assess the harm.^[15]

Extracting critical minerals from existing products through recycling avoids many of the harms caused by mining on land and in the ocean. Though recycling critical minerals alone cannot meet global supply, advancing progress and shifting towards these extraction practices could mitigate some of these harms. The current recycling rate for lithium and REEs is about 1%.⁹ If the collection and recycling rates were optimal, over half of the demand for these minerals would be met.⁹ Extracting critical minerals from products does not go without consequence, however. It will be important to be conscientious of hydrometallurgical, pyrometallurgical, and other processes involved and potential negative impacts, as extraction may utilize large amounts of energy and emit toxins into the environment. The committee may wish to consider including in the report potential environmental and social impacts of extracting critical minerals from products for the purposes of recycling.

1. Incorporating EPR and e-waste programs. California has a few programs for collecting and managing e-waste and end-of-life products containing critical minerals. It would provide more focus if the proposed report explicitly considered the products targeted by these programs, relevant extraction processes, and potential end-markets within the state for the materials within those collected products. It would also benefit e-waste programs if specific products were considered, as it may shift current recycling and management practices towards practices that maintain the value of the materials. The report could also consider the role EPR should play in the extraction of critical minerals, for both current and future EPR programs. This could include expanding the list of product candidates for EPR, opportunities for producer responsibility organizations to invest in extraction industries and processes, identifying and creating end-use markets within the state, and improving product design to aid extraction and recycling. Many of these aspects are principles and mechanisms of pre-existing EPR programs and are synergistic with the current requests of the proposed report. The battery stewardship program is the only EPR program for electronics and has yet to be implemented, so it could be opportune to incorporate early consideration of the full life cycles of product components as more electronic stewardship programs develop. Past proposed legislation and current discussions surrounding product stewardship for e-waste have shown the Legislature’s interest in EPR programs for electric vehicle lithium-ion batteries (SB 615, Allen) and solar panels (AB 1238, Ward). The committee may wish to consider incorporating California’s current programs and approaches to addressing e-waste within the report where appropriate, including narrowing the scope of the report to assess the costs and benefits of extracting critical minerals in current e-waste collection streams. The committee may also wish to specify that the report consider the viability of including extraction in EPR plans and implementation, and provide recommendations to promote a circular economy for critical minerals in electronics in California.
2. Envisioning a path forward. With a growing demand for critical minerals during the green energy transition and the demand for certain critical minerals projected to soon surpass supply, it will be integral to create infrastructure to recycle these materials from end-of-life products and waste. This is especially important as the United States is heavily dependent on foreign sources of critical minerals, creating vulnerabilities to supply chain disruption due to geopolitical instability, market volatility, export quotas, and other political, social, regulatory, and environmental factors.^2,[16]

California has an opportunity to lead the domestic production of critical minerals through recycling, and the proposed report is a first step. To ensure that the findings and discussions of this report are actionable, the report may also discuss implementation strategies or pathways and their related policy recommendations. This may be premature, as critical mineral recycling processes have yet to be scaled up to match industrial demands.⁶ However, by narrowing the scope of recycled products, the department could identify and assess the necessary research and development, potential jobs and workforce training, areas for public and private capital investment, and markets for the recycled materials. Legislators can be more targeted in their approaches to address regulatory barriers. This approach could be effective as the proposed report requests information on the benefits from recycling critical minerals in products to facilitate the transition away from fossil fuels, which implies the need to identify materials that would provide supply for green technologies. The author may also consider if an advisory group, similar to the Lithium-ion Car Battery Recycling Advisory Group (AB 2832 Dahle, Chapter 822, Statutes of 2018), could be a more constructive vehicle if strategies or pathways are to be discussed. The author may wish to consider requesting a discussion on strategies or pathways in the report on the ways in which recycling critical minerals from products can facilitate the transition away from fossil fuels.

1. Expertise on extraction and mining. While the previous version of this bill, SB 1306 (Skinner, 2024), was moving through this committee, GO-Biz was the primary reporting agency. Committee staff suggested that CalRecycle or DTSC would be better suited as the primary reporting agency because of their expertise on e-waste collection and management. Staff still recommended the involvement of GO-Biz, but instead as a consulting partner. This bill would assign CalRecycle as the primary reporting agency, and the department may consult GO-Biz or DTSC.

While the technical expertise on recycling e-waste is certainly in the jurisdiction of CalRecycle, this report has interdisciplinary aspects that fall outside the purview and expertise of CalRecycle, including the extraction of critical minerals from e-waste and mining operations. The Department of Conservation (DoC) may serve as another agency that could perform this report, as they house the Division of Mine Reclamation and the California Geological Survey. These entities may have the technical background and expertise to conduct the research necessary for this report as they focus on mining operations and developing mineral resources, respectively. This agency could work in consultation with CalRecycle to fully address the requests of this report, which include understanding the sources, management, ability to recycle, and circular economies of e-waste.

Alternatively, the California Council on Science and Technology (CCST) is another entity that could be considered to conduct this report. CCST works to respond to state government entities that request independent assessments of public policy issues that affect the State of California relating to science and technology. They work in collaboration with academic, research, and other institutions to leverage their expertise in fulfilling their mission. In the past, CCST has published scientific and technical reports requested by the Legislature such as “Biomethane in California Common Carrier Pipelines: Assessing Heating Value and Maximum Siloxane Specifications” (SB 840 Budget Committee, Chapter 341, Statutes of 2016) and “Long-Term Viability of Underground Natural Gas Storage in California: An Independent Review of Scientific and Technical Information” (SB 826 Leno, Chapter 23, Statutes of 2016). As the author continues discussions surrounding the reporting agency, it may be beneficial to consult with DoC and CCST. Staff encourages the author to engage with these alternative entities.

1. Committee Amendments. Staff recommends the committee adopt the bolded amendment contained in comment 2 above.

Related/Prior Legislation

SB 1306 (Skinner, 2024) required CalRecycle to submit a report to the Legislature relating to the in-state collection, recycling, reuse, and stockpiling for domestic consumption of precious metals, critical minerals, and other similar valuable materials contained within products in the state.

SB 615 (Allen, 2024) required vehicle traction batteries to be recycled at the end of their useful life and required the battery supplier to pay the actual and reasonable regulatory costs of DTSC in implementing and enforcing the bill.

AB 2440 (Irwin, Chapter 351, Statutes of 2022) established the Responsible Battery Recycling Act of 2022 to create a stewardship program for the collection and recycling of covered batteries as defined.

SB 1215 (Newman, Chapter 370, Statutes of 2022) expands the definition of “covered electronic device” to include a “covered battery-embedded product”, or a new or refurbished product containing a battery that is not intended to be easily removed from the product by the consumer with no more than commonly used household tools, to be covered by the Electronic Waste Recycling Act.

SB 1153 (Archuleta, 2022) required DTSC to survey battery handling or recycling facilities and publically report the amount of rechargeable batteries returned for recycling.

AB 1657 (Garcia, Chapter 271, Statutes of 2020) required the State Energy Resources Conservation and Development Commission to establish and convene the Blue Ribbon Commission on Lithium Extraction in California.

AB 2832 (Dahle, Chapter 822, Statutes of 2018) requires the Secretary for the California Environmental Protection Agency to convene a research 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.

AB 2901 (Pavley, Chapter , Statutes of 2004) required retailers to implement a system for the acceptance and collection of used cell phones for reuse, recycling, or proper disposal and made it unlawful for a retailer to sell a cell phone to a consumer unless compliant with the law.

SB 20 (Sher, Chapter 526, Statutes of 2003) enacts the Electronic Waste Recycling Act of 2003 to provide for the convenient recycling of covered electronic devices in California.

SOURCE:

Author.

SUPPORT:

California Product Stewardship Council
Corporate Ewaste Solutions
Form Energy
National Stewardship Action Council
Redwood Materials, INC.
Zero Waste Marin Joint Powers Authority

1 Individual

OPPOSITION:

None received

-- END --

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