BILL NUMBER: SB 1020	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Monning

                        FEBRUARY 14, 2014

   An act to add Article 11.6. (commencing with Section 25243) to
Chapter 6.5 of Division 20 of the Health and Safety Code, relating to
hazardous waste.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1020, as introduced, Monning. Hazardous waste: photovoltaic
panels: collection and recycling programs.
   (1) The Hazardous Waste Control Law, among other things, vests the
Department of Toxic Substances Control with the authority to
regulate the generation and disposal of hazardous waste. A violation
of the Hazardous Waste Control Law is a crime.
   This bill would enact the California Photovoltaic Panel Collection
and Recycling Act of 2014 in the Hazardous Waste Control Law and
would require photovoltaic panel manufacturers, individually or
collectively, or with photovoltaic panel vendors, to establish a
program for the collection and recycling of end-of-life photovoltaic
panels that meets specified criteria. The bill would require the
Department of Toxic Substances Control to approve a program that
meets those criteria and would prohibit a photovoltaic panel
manufacturer that fails to establish an approved program from selling
or offering for sale photovoltaic panels in the state, as specified.
The bill would require the department to impose a reasonable annual
administrative fee, as specified, and would provide for the deposit
of the fees in the Photovoltaic Panel Collection Administration
Account, which this bill would establish in the State Treasury. The
bill would authorize the department to expend those fees, upon
appropriation by the Legislature, to cover the department's costs to
implement and enforce the bill's requirements, as specified.
   The bill would require a contractor removing end-of-life
photovoltaic panels and a person who demolishes a building having
end-of-life photovoltaic panels to take the panels to an appropriate
location for collection and recycling. The bill would require the
bidder on state contracts for the purchase or lease of solar energy
systems to certify that the photovoltaic panels used are purchased
from a photovoltaic panel manufacturer in compliance with the above
requirements.
   Because a violation of the act would be a crime, this bill would
impose a state-mandated local program.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 11.6 (commencing with Section 25243) is added
to Chapter 6.5 of Division 20 of the Health and Safety Code, to read:


      Article 11.6.  California Photovoltaic Panel Collection and
Recycling Act of 2014


   25243.  This act shall be known, and may be cited, as the
California Photovoltaic Panel Collection and Recycling Act of 2014.
   25243.1.  (a) The Legislature finds and declares all of the
following:
   (1) California's policy, including the policies reflected in the
California Solar Initiative (Chapter 8.8 (commencing with Section
25780) of Division 15 of the Public Resources Code), the state's net
energy metering program, and the California Renewable Portfolio
Standard Program (Article 16 (commencing with Section 399.11) of
Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code),
has made California the leading state in the installation of solar
energy systems by providing ratepayer-funded incentives to eligible
solar energy systems, resulting in substantially increased
utilization by homes, businesses, and utilities.
   (2) Existing solar energy systems use photovoltaic technology to
capture sunlight and convert it into electricity until the end of
their useful lives, estimated to be between 20 and 25 years. Today's
most common solar photovoltaic technology is based on silicon
semiconductors, and uses manufacturing processes and materials
similar to those of the microelectronics industry. New technologies
are lowering the manufacturing cost by using less semiconductor
material and streamlining production. Many of these new technologies
use toxic, explosive, corrosive, or potentially carcinogenic
materials, such as cadmium and selenium.
   (3) The numerous renewable and customer-generated solar programs
in California have led to a rapid expansion of solar energy systems
and given rise to an emerging photovoltaic industry. It is critical
to consider the potential environmental and public health impacts
associated with end-of-life photovoltaic panels.
   (b) It is the intent of the Legislature to do all of the
following:
   (1) Foster a comprehensive and innovative system for the reuse,
recycling, and proper and legal disposal of end-of-life photovoltaic
panels.
   (2) Establish a program that makes it convenient for consumers and
the public to return and recycle photovoltaic panels, ensures the
environmentally safe disposal of end-of-life photovoltaic panels, and
provides a system that does not create an undue burden when a
photovoltaic panel exceeds its useful life.
   (3) Ensure that the cost associated with the handling, recycling,
and disposal of end-of-life photovoltaic panels shall be the
responsibility of the photovoltaic panel manufacturers and vendors
and consumers of solar energy systems, and not local governments or
their service providers, state government, or taxpayers.
   (4) Reduce the likelihood of illegal disposal of hazardous
materials, by ensuring that all costs associated with the proper
management of end-of-life photovoltaic panels are internalized by the
photovoltaic panel manufacturers and vendors and consumers of solar
energy systems at or before the point of purchase, and not at the
point of discard.
   (5) Provide flexibility to photovoltaic panel manufacturers and
vendors to partner with each other and with those private and
nonprofit business enterprises that currently provide collection and
processing services to develop and promote a safe and effective
end-of-life photovoltaic panel recycling system for California.
   (6) Provide for the collection and recycling of the maximum
feasible number of end-of-life photovoltaic panels.
   (7) Encourage photovoltaic panel manufacturers and vendors to
establish a cost-effective system for the recovery, reuse, recycling,
and proper disposal of end-of-life photovoltaic panels, and to build
on existing photovoltaic panel take-back and recycling programs.
   (c) It is further the intent of the Legislature that:
   (1) Photovoltaic panels, to the greatest extent feasible, should
be designed for extended life, repair, and reuse.
   (2) Collection and recycling services should be provided for the
maximum feasible number of end-of-life photovoltaic panels.
   25243.2.  For the purposes of the article, the following
definitions shall apply:
   (a) "Consumer" means a purchaser or owner of a photovoltaic panel.
"Consumer" includes a business, corporation, limited partnership,
nonprofit organization, or governmental entity.
   (b) "End-of-life photovoltaic panel" means a photovoltaic panel
that has been used and is removed from a building or facility in this
state and is intended to be discarded.
   (c) "Photovoltaic panel manufacturer" or "manufacturer" means a
business concern that manufactures and sells photovoltaic panels
directly to a consumer or enters into an agreement to provide a solar
energy system directly to a consumer.
   (d) "Photovoltaic panel vendor" or "vendor" means a business
concern that retains ownership of photovoltaic panels and enters into
an agreement with a consumer for the purpose of providing a solar
energy system directly to a consumer, which agreement is commonly
referred to as "third-party solar financing."
   (e) "Photovoltaic panel" means a device that is a part of a solar
energy system having the primary purpose of providing nonthermal
generation of electricity from solar energy.
   (f) "Program" means a system for the collection, transportation,
reuse, recycling, and proper management of end-of-life photovoltaic
panels.
   (g) "Solar energy system" means a nonthermal electrical generation
system using solar energy and composed of one or more photovoltaic
panels.
   25243.3.  (a) A photovoltaic panel manufacturer shall,
individually or collectively with a group or organization of
photovoltaic panel manufacturers, photovoltaic panel vendors, or both
manufacturers and vendors, establish, finance, manage, and maintain
a program in compliance with this article.
   (b) (1) A photovoltaic panel manufacturer that fails to comply
with this article shall not sell or offer for sale in this state a
photovoltaic panel.
   (2) The sales prohibition specified in paragraph (1) shall be
effective on the 120th calendar day after the notice specified in
subdivision (c) listing the photovoltaic panel manufacturer is posted
on the department's Internet Web site and shall remain in effect
until the photovoltaic panel manufacturer is no longer listed.
   (c) (1) On July 1, 2015, and on January 1 and July 1 of each year
thereafter, the department shall post a notice on its Internet Web
site listing photovoltaic panel manufacturers that are not in
compliance with this article.
   (2) Upon a determination that a photovoltaic panel manufacturer
listed pursuant to paragraph (1) is in compliance with this article,
the department shall immediately remove that photovoltaic panel
manufacturer from the list.
   25243.4.  A program established pursuant to this article shall do
all of the following:
   (a) Collect and arrange for the management of end-of-life
photovoltaic panels in compliance with this chapter and the
regulations adopted pursuant to this chapter.
   (b) On and after July 1, 2015, provide accessible and convenient
locations for consumers to drop off an end-of-life photovoltaic
panel.
   (c) Either arrange for the pickup from dropoff locations, or pay
for the costs of shipping, of the end-of-life photovoltaic panels
provided pursuant to subdivision (b) for proper handling and
management.
   (d) Undertake education and outreach efforts, including, but not
limited to, all of the following:
   (1) One or more public service announcements promoting the proper
management of end-of-life photovoltaic panels. Copies of the public
service announcements shall be provided to the department and the
Department of Resources Recycling and Recovery for their use and
promotion.
   (2) A publicly accessible Internet Web site that contains
templates of educational materials in a form and format that can be
easily downloaded. A link to this Internet Web site shall be provided
to the department and to the Department of Resources Recycling and
Recovery.
   (3) Methods to engage other stakeholders, such as waste,
demolition, and installation organizations, as well as appropriate
state agencies and local governments, to secure support and
participation that encourages proper management of end-of-life
photovoltaic panels throughout California.
   (4) Strategies to work with California utilities involving the
installation or replacement of solar energy systems and to encourage
their participation in the collection and proper management of
end-of-life photovoltaic panels. These strategies may include the
inclusion of an educational insert in their customers' utility bills.

   (5) Contacting other photovoltaic panel manufacturers in
California and encouraging their support and participation in
educating their customers on the proper management of end-of-life
photovoltaic panels.
   (e) Develop, and update as necessary, education and other outreach
materials aimed at solar energy system contractors, demolition
contractors and their associations, utilities, and consumers. These
materials shall include, but are not limited to, one or more of the
following:
   (1) Signage that is prominently displayed and easily visible to
consumers and installers.
   (2) Written materials and templates of materials for reproduction
by photovoltaic panel manufacturers and vendors that are to be
provided to the consumer at the time of purchase, delivery, or both
purchase and delivery of a solar energy system. The materials shall
include information on the improper disposal of photovoltaic panels,
the proper management of end-of-life photovoltaic panels, and the
options for proper collection.
   (3) Advertising and other promotional materials, or both, that
include references to the collection opportunities.
   (f) Provide incentives and education to contractors, service
technicians, and consumers to encourage the return of end-of-life
photovoltaic panels.
   (g) On or before April 1, 2016, and on or before April 1 annually
thereafter, submit a report to the department covering the one-year
period ending December 31 of the previous calendar year. Each report
shall be posted on the photovoltaic panel manufacturer's or program's
Internet Web site. The annual report shall include all of the
following:
   (1) The number of end-of-life photovoltaic panels collected by the
photovoltaic panel manufacturer, group, or organization in
California during the previous calendar year.
   (2) The estimated total amount of hazardous waste in the collected
end-of-life photovoltaic panels.
   (3) An evaluation of the effectiveness of the program.
   (4) Commencing with the report due on April 1, 2019, a comparison
to the performance requirements for collection established pursuant
to subdivision (b) of Section 25243.6.
   (5) An accounting of the program administrative costs, including a
copy of Internal Revenue Service Form 990 for a nonprofit
organization's program. For a for-profit organization's program, the
photovoltaic panel manufacturer or vendor, or group of photovoltaic
panel manufacturers or vendors operating the program, shall submit
independently audited financial statements detailing revenues and a
full accounting of administrative costs incurred.
   (6) A description of the outreach strategies employed to increase
participation and collection rates.
   (7) Examples of outreach and educational materials used.
   (8) Names and locations of any accessible collection locations.
   (9) The number of end-of-life photovoltaic panels collected at
each collection location.
   (10) The Internet Web site address where the annual report may be
viewed online.
   (11) A description of how end-of-life photovoltaic panels were
managed.
   (12) Modifications that the photovoltaic panel manufacturer,
group, or organization is proposing to make in its program.
   25243.5.  (a) A photovoltaic panel manufacturer or a group or
organization of manufacturers or vendors or both, as described in
subdivision (a) of Section 25243.3, shall submit its program to the
department for approval.
   (b) The department shall approve the program if the program
complies with the criteria set forth in Section 25243.4.
   25243.6.  (a) The department may order a photovoltaic panel
manufacturer, or a group or organization of photovoltaic panel
manufacturers or vendors, or both, operating a program, to revise its
program and to undertake actions to comply with this article.
   (b) On or before January 1, 2016, the department shall adopt
regulations for both of the following:
   (1) To develop performance requirements that specify reasonable
and feasible collection rates expressed as a percentage of
photovoltaic panels sold in the state by the photovoltaic panel
manufacturer, group, or organization.
   (2) To establish a methodology for the calculation of the number
of end-of-life photovoltaic panels that annually become waste.
   (c) (1) The photovoltaic panel manufacturer or group or
organization operating a program shall pay the department an annual
administrative fee pursuant to paragraph (2).
   (2) The department shall impose a fee in a reasonable amount that
is sufficient to cover the department's costs of administering and
enforcing this article with respect to the photovoltaic panel
manufacturers or groups or organizations operating a program,
including regulatory costs incurred by the department.
   (d) The Photovoltaic Panel Collection Administration Fund is
hereby established in the State Treasury. All fees collected by the
department pursuant to this section shall be deposited in the
Photovoltaic Panel Collection Administration Fund and may be expended
by the department, upon appropriation by the Legislature, to cover
the department's costs to implement and enforce this article with
respect to the photovoltaic panel manufacturers or groups or
organizations operating a program.
   25243.7.  A contractor that removes an end-of-life photovoltaic
panel shall handle the end-of-life photovoltaic panel in accordance
with all applicable regulations adopted pursuant to this chapter, and
take the end-of-life photovoltaic panel to an appropriate location
for collection and recycling in accordance with those regulations.
   25243.8.  A person that demolishes a building having a
photovoltaic panel shall remove the photovoltaic panel from the
building prior to demolition in accordance with all applicable
regulations adopted pursuant to this chapter, and take the material
to a location that is authorized to collect end-of-life photovoltaic
panels.
   25243.9.  (a) A state agency that purchases or leases solar energy
systems shall require each prospective bidder to certify that the
photovoltaic panels for the solar energy system are obtained from a
photovoltaic panel manufacturer that is in compliance with this
article.
   (b) Notwithstanding any other law, a bidder that fails to provide
the certification pursuant to subdivision (a) shall be deemed a
nonresponsive bidder not eligible to be awarded the contract for the
procurement or leasing of solar energy systems.
   (c) The bid solicitation documents shall specify that the
prospective bidder is required to cooperate fully in providing
reasonable access to its records and documents demonstrating
compliance with this section.
   (d) In addition to other penalties, a person awarded a contract
that is found to have provided a false certification is subject to
all of the following:
   (1) The contract awarded shall be voided by the state agency to
which the solar energy system was provided.
   (2) The contractor shall be ineligible to bid on other state
contracts for a period of three years.
   (3) The contractor shall be subject to the disgorgement of any
money, property, or benefit obtained by the contractor as a result of
violating this section, as ordered by a court in the interest of
justice.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.