Amended in Assembly June 1, 2016

Amended in Assembly April 14, 2016

Amended in Assembly April 5, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2153


Introduced by Assembly Member Cristina Garcia

(Coauthor: Assembly Member Santiago)

February 17, 2016


begin delete An act to add Chapter 7.5 (commencing with Section 42420) to Part 3 of Division 30 of the Public Resources Code, relating to solid waste, and making an appropriation therefor. end deletebegin insertAn act to amend, repeal, and add Section 25190 of, to add Section 25215.5.5 to, and to repeal and add Article 10.5 (commencing with Section 25215) of Chapter 6.5 of Division 20 of, the Health and Safety Code, relating to hazardous waste, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2153, as amended, Cristina Garcia. begin deleteLead-Acid Battery Recovery and Recycling Act. end deletebegin insertThe Lead-Acid Battery Recycling Act of 2016.end insert

begin insert

Existing law prohibits a person from disposing, or attempting to dispose, of a lead-acid battery at a solid waste facility or on or in any land, surface waters, watercourses, or marine waters, but authorizes a person to dispose of a lead-acid battery at certain locations. Existing law requires a dealer to accept, when offered at the point of transfer, a lead-acid battery from a consumer in exchange for the new lead-acid battery purchased by that consumer from the dealer.

end insert
begin insert

This bill, the Lead-Acid Battery Recycling Act of 2016, would, as of January 1, 2017, revise these provisions to require a dealer to accept, at the point of transfer, a lead-acid battery of the same type and size that is sold by the dealer, without regard to the brand or original dealer of the used lead-acid battery, and would prohibit the dealer from charging any fee to accept a used lead-acid battery. The bill would require a dealer to collect a refundable deposit for each new lead-acid battery from a person who purchases the battery and who does not simultaneously provide a used lead-acid battery of the same size and type, and would require the dealer to refund the deposit to the person if, within 45 days of the sale of that lead-acid battery, the person presents a used lead-acid battery of the same type and size. The bill would require a dealer to post a specified notice with regard to these provisions. The bill would allow the dealer to keep any lead-acid battery refundable deposit that is not properly claimed within 45 days after the date of sale of the new lead-acid battery.

end insert
begin insert

This bill would require a dealer to charge a consumer or business, at the time of sale, a California battery fee in the amount of $1 for each replacement lead-acid battery purchased. The bill would authorize the dealer to retain 112% of the fee as reimbursement for any costs associated with the collection of the fee and to remit the remainder to the State Board of Equalization for deposit into the Lead-Acid Battery Cleanup Fund, which would be created by this bill.

end insert
begin insert

This bill would require a manufacturer of lead-acid batteries to remit to the State Board of Equalization a manufacturer battery fee of $1 for each lead-acid battery it sells at retail to a person in California, or that it sells to a dealer, wholesaler, distributor, or other person for retail sale in California, for deposit into the Lead-Acid Battery Cleanup Fund. The bill would provide for certain credits against liability for a person who remits manufacturer battery fees if that person is held responsible by any court, regional board, agency, or any other authority for certain hazardous substance violations. The bill would authorize the state to bring an action against a person who has remitted manufacturer battery fees for the payment or reimbursement of any moneys to the state or a regional board for specified response actions only if the state has a reasonable basis to believe that the person would ultimately be held responsible for amounts in excess of the amount the person has remitted in manufacturer battery fees that is not already committed to the person’s liability. The bill would allow certain wholesalers of lead-acid batteries to elect to be considered manufacturers for these purposes, as specified.

end insert
begin insert

This bill would continuously appropriate moneys in the Lead-Acid Battery Cleanup Fund to the Department of Toxic Substances Control and the State Board of Equalization, as applicable, for purposes of response actions at sites investigated due to concern of lead release from a lead-acid battery recycling facility, administration of the fund, and reimbursement of certain General Fund loans for lead cleanup. The bill would make the reimbursement money available for further loans, as specified. The bill would require the department, before seeking to recover moneys spent on the above-described response actions from a person who has remitted manufacturer battery fees, to first draw from and deplete the fund and exhaust efforts to recover any moneys from the owner or operator of the site where the response action occurred, or the site identified as the source of release to which the response action was directed. If a person from whom the department recovers such moneys receives a favorable judgment against a person who has remitted manufacturer battery fees, the bill would require that the judgment be reduced by the amount remitted as manufacturer battery fees.

end insert
begin insert

This bill would require, on and after July 1, 2017, a manufacturer to place a uniform widely understood recycling symbol on all replacement lead-acid batteries sold in California.

end insert
begin insert

This bill would require the department to report annually to the Governor and the Legislature on the status of the Lead-Acid Battery Cleanup Fund and on the department’s progress in implementing these provisions.

end insert
begin insert

This bill would require the department to notify manufacturers of replacement lead-acid batteries of the bill’s requirements, as specified, and would require those manufacturers to notify distributors, wholesalers, and dealers of the lead-acid batteries it manufactures of the bill’s requirements, as specified.

end insert

begin insertA violation of the existing lead-acid battery management provisions is punishable as a misdemeanor.end insert

begin insert

The bill would instead authorize the department to impose civil administrative penalties on any person who is in violation of these provisions and would require the penalty money to be deposited into the Lead-Acid Battery Cleanup Fund.

end insert
begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert
begin delete

Existing law requires a retailer of various specified products, including rechargeable batteries and cellular telephones, sold in the state to have in place a system for the acceptance and collection of those products for reuse, recycling, or proper disposal.

end delete
begin delete

This bill would establish the Used Lead-Acid Battery Recovery and Recycling Act. The bill would require a qualified industry association, as defined, to establish a lead-acid battery recycling organization, as defined. The bill would authorize the Department of Resources Recycling and Recovery to certify that a lead-acid battery recycling organization has been established. The bill would require the lead-acid battery recycling organization to develop, implement, and administer a lead-acid battery recycling program pursuant to the act. The bill would require manufacturers, retailers, and recyclers of lead-acid batteries to register with the lead-acid battery recycling organization on or before January 1, 2018.

end delete
begin delete

This bill would prohibit, on and after January 1, 2019, a manufacturer, recycler, or retailer from, among other things, selling a lead-acid battery, or importing a lead-acid battery into this state, except in compliance with the bill’s requirements.

end delete
begin delete

This bill would require the lead-acid battery recycling organization, by July 1, 2018, to develop a plan for recycling used lead-acid batteries in the state that includes specified goals and elements and to submit the plan to the department, as specified. The plan would be required, among other things, to ensure that it addresses the impact of the requirement of the California Constitution that a local government submit the imposition, extension, or increase in a tax to the electorate for approval, with regard to local governments participating in the program. The bill would require the organization, by July 1, 2018, to annually prepare and approve a proposed used lead-acid battery recycling program plan budget for the next calendar year and to submit the budget to the department for approval, as specified. The bill would require the department to notify the organization of the department’s costs that are directly related to implementing and enforcing the act and would require the organization to reimburse the department for those direct costs. The bill would require the department to deposit these amounts submitted by the organization into the Used Lead-Acid Battery Recycling Fund, which the bill would establish in the State Treasury. The bill would require the department to expend the moneys in the fund, upon appropriation by the Legislature, to administer and enforce the act and to reimburse any outstanding loans made from other funds used to finance the startup implementation costs to the department, as provided.

end delete
begin delete

This bill would require the organization to annually set the amount of a state lead-acid battery recycling charge that would be added to the purchase price of a lead-acid battery, and would require a manufacturer, recycler, retailer, wholesaler, distributor, or other party that sells a lead-acid battery to add the charge to the purchase price for the lead-acid battery and remit the charges collected, less refunds, quarterly to the organization, as specified. The bill would require the lead-acid battery recycling charge to be charged in lieu of any voluntary core charge being collected by retailers. The bill would require the organization to remit $1 from the sale of each lead-acid battery to be deposited into the Lead-Acid Battery Cleanup Fund, which would be created by the bill. Moneys in the Lead-Acid Battery Cleanup Fund would be continuously appropriated to the Department of Toxic Substances Control for the cleanup of areas of the state that have been contaminated by the production, recycling, or improper disposal of lead-acid batteries. The bill would require the organization to suspend and resume remitting the $1 from the sale of each lead-acid battery to the Lead-Acid Battery Cleanup Fund based on the balance in the fund.

end delete
begin delete

This bill would require a manufacturer, recycler, retailer, or distributor to affix a California recycling sticker, as determined by the Department of Resources Recycling and Recovery, to each lead-acid battery at the point of sale. The bill would require that every consumer who returns a lead-acid battery with a California recycling sticker to a manufacturer, retailer, or other entity that sells lead-acid batteries to the ultimate user be given a refund of the recycling charge minus $3, as specified. The bill would prohibit a refund from being given to a consumer who returns a lead-acid battery without a California recycling sticker. The bill would require a retailer that sells a used lead-acid battery to a manufacturer to remit 75% of the sale price of the used lead-acid battery to the organization for deposit into the Lead-Acid Battery Cleanup Fund.

end delete
begin delete

This bill would authorize the department to impose an administrative civil penalty on a manufacturer, organization, recycler, or retailer in violation of the act, and the department would be authorized to expend the moneys, upon appropriation by the Legislature, to implement the act.

end delete
begin delete

The bill would authorize the department to adopt emergency regulations establishing a process for the submission and approval of the used lead-acid battery recovery and recycling plan, and for the submission and approval of the proposed used lead-acid battery recycling program budget.

end delete
begin delete

This bill would provide for the repayment of a portion of a specified General Fund loan from the Lead-Acid Battery Cleanup Fund, and would make that repayment money available for further loans, as specified.

end delete

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P6    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 25190 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert

3

25190.  

(a) Except as otherwise provided in Sections 25185.6,
425189.5, 25189.6, 25189.7, and 25191, any person who violates
5any provision of this chapter, or any permit, rule, regulation,
6standard, or requirement issued or adopted pursuant to this chapter,
7is, upon conviction, guilty of a misdemeanor and shall be punished
8by a fine of not more than one thousand dollars ($1,000) or by
9imprisonment for up to six months in a county jail or by both that
10fine and imprisonment.

11(b) If the conviction is for a second or subsequent violation, the
12person shall, upon conviction, be punished by imprisonment in
13the county jail for not more than one year or by imprisonment
14pursuant to subdivision (h) of Section 1170 of the Penal Code for
1516, 20, or 24 months. The court shall also impose upon the person
16a fine of not less than five thousand dollars ($5,000) or more than
17twenty-five thousand dollars ($25,000).

begin insert

18
(c) This section shall remain in effect only until January 1, 2017,
19and as of that date is repealed, unless a later enacted statute, that
20is enacted before January 1, 2017, deletes or extends that date.

end insert
21begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 25190 is added to the end insertbegin insertHealth and Safety Codeend insertbegin insert,
22to read:end insert

begin insert
23

begin insert25190.end insert  

(a) Except as otherwise provided in Sections 25185.6,
2425189.5, 25189.6, 25189.7, 25191, and 25215.7, any person who
25violates any provision of this chapter, or any permit, rule,
26regulation, standard, or requirement issued or adopted pursuant
27to this chapter, is, upon conviction, guilty of a misdemeanor and
28shall be punished by a fine of not more than one thousand dollars
P7    1($1,000) or by imprisonment for up to six months in a county jail
2or by both that fine and imprisonment.

3
(b) If the conviction is for a second or subsequent violation, the
4person shall, upon conviction, be punished by imprisonment in the
5county jail for not more than one year or by imprisonment pursuant
6to subdivision (h) of Section 1170 of the Penal Code for 16, 20,
7or 24 months. The court shall also impose upon the person a fine
8of not less than five thousand dollars ($5,000) or more than
9twenty-five thousand dollars ($25,000).

10
(c) This section shall become operative on January 1, 2017.

end insert
11begin insert

begin insertSEC. 3.end insert  

end insert

begin insertArticle 10.5 (commencing with Section 25215) is added
12to Chapter 6.5 of Division 20 of the end insert
begin insertHealth and Safety Codeend insertbegin insert, to
13read:end insert

begin insert

14 

15Article begin insert10.5.end insert  The Lead-Acid Battery Recycling Act of 2016
16

 

17

begin insert25215.end insert  

This article shall be known, and may be cited, as the
18Lead-Acid Battery Recycling Act of 2016.

19

begin insert25215.1.end insert  

For purposes of this article, the following definitions
20shall apply:

21
(a) “Business” means any person, as defined in subdivision (j),
22that is not a natural person.

23
(b) “California battery fee” means the fee imposed pursuant to
24Section 25215.25.

25
(c) “Consumer” means every natural person who purchases a
26lead-acid battery at retail in California for use or consumption.

27
(d) “Dealer” means every person who sells at retail replacement
28lead-acid batteries directly to persons in California.

29
(e) “Lead-acid battery” means any battery weighing over five
30kilograms that is primarily composed of both lead and sulfuric
31acid, whether sulfuric acid is in liquid, solid, or gel state, with a
32capacity of six volts or more that is used for any of the following
33purposes:

34
(1) As a starting battery that is designed to deliver a high burst
35of energy to an internal combustion engine until it starts.

36
(2) As a motive power battery that is designed to provide the
37source of power for propulsion or operation of a vehicle, including
38a boat.

39
(3) As a stationary storage or standby battery that is designed
40to be used in systems where the battery acts as either electrical
P8    1storage for electricity generation equipment or a source of
2emergency power, or otherwise serves as a backup in case of
3failure or interruption in the flow of power from the primary
4 source.

5
(4) As a source of auxiliary power to support the electrical
6systems in a vehicle.

7
(f) “Lead-acid battery recycling facility” means any site at
8which lead-acid batteries are or have been disassembled for the
9purpose of making components available for reclamation to
10produce elemental lead or lead alloys or at which lead-acid
11batteries or their components, or both, are or have been reclaimed
12to produce elemental lead or lead alloys.

13
(g) “Manufacturer” means either of the following:

14
(1) The person who manufactures the lead-acid battery and who
15sells, offers for sale, or distributes the lead-acid battery in the
16state, unless subdivision (b) of Section 25215.35 applies to the
17lead-acid battery, in which case the wholesaler shall be deemed
18the manufacturer, except for purposes of Section 25215.65.

19
(2) If there is no person described in paragraph (1) that is
20subject to the jurisdiction of the state, the manufacturer is the
21person who imports the lead-acid battery into the state for sale or
22distribution.

23
(h) “Manufacturer battery fee” means the fee imposed pursuant
24to Section 25215.35.

25
(i) “Owner or operator” has the same meaning given in Section
269601(20) of Title 42 of the United States Code.

27
(j) “Person” means a natural person, trust, firm, joint stock
28company, corporation, company, partnership, limited liability
29company, or association.

30
(k) “Remedial action” has the same meaning as in Section
3125322.

32
(l) “Removal” has the same meaning as in Section 25323.

33
(m) “Replacement lead-acid battery” means a new lead-acid
34battery that is sold at retail subsequent to the original sale or lease
35of the equipment or vehicle in which the lead-acid battery is
36intended to be used. “Replacement lead-acid battery” does not
37include a spent, discarded, refurbished, or reused lead-acid battery.

38
(n) “Response action” has the same meaning as in Section
3925323.3.

P9    1
(o) A “retail” sale, or a sale “at retail,” means the sale of a
2new lead-acid battery to a person in California who is the ultimate
3user either at a California store or via the Internet, telephone,
4mail order, or otherwise, including, but not limited to, the sale of
5a new lead-acid battery in connection with vehicle service or
6repair. “Retail” sale does not include sales to a wholesaler or
7dealer, to a person for incorporation into new equipment for
8subsequent resale, or replacement of a lead-acid battery pursuant
9to a vehicle manufacturer’s warranty or a service contract
10described under Section 12800 of the Insurance Code.

11
(p) “Used lead-acid battery” means a lead-acid battery no
12longer fully capable of providing the power for which it was
13designed or that a consumer or other user no longer wants for any
14other reason.

15
(q) “Wholesaler” means any person who purchases a lead-acid
16battery from a manufacturer for the purpose of selling the lead-acid
17battery to a dealer, high-volume customer, or to a person for
18incorporation into new equipment for resale.

19

begin insert25215.15.end insert  

(a) Except as provided in subdivision (b), no person
20shall dispose, or attempt to dispose, of a lead-acid battery at a
21solid waste facility or on or in any land, surface waters,
22watercourses, or marine waters.

23
(b) A person may dispose of a lead-acid battery at any of the
24following locations:

25
(1) A facility, including a facility located at a solid waste facility,
26established and operated for the purpose of recycling, or providing
27for the eventual recycling of, lead-acid batteries.

28
(2) A dealer pursuant to Section 25215.2.

29

begin insert25215.2.end insert  

(a) A dealer shall accept from persons at the point
30of transfer a used lead-acid battery of the same type and size that
31is sold by the dealer, without regard to the brand or original dealer
32of the used lead-acid battery, but shall not be required to accept
33from any person more than six used lead-acid batteries per day.
34A dealer shall not charge any fee to receive a used lead-acid
35battery.

36
(b) A dealer shall charge to each person who purchases a
37replacement lead-acid battery and who does not simultaneously
38provide the dealer with a used lead-acid battery of the same type
39and size a refundable deposit for each such battery purchased.
40The dealer shall display the amount of the deposit on the receipt
P10   1provided to the purchaser as a separate line item. The dealer shall
2refund the deposit to that person if, within 45 days of the sale of
3the replacement lead-acid battery, the person presents to the dealer
4a used lead-acid battery of the same type and size. A dealer may
5require the person to provide a receipt documenting the payment
6of the deposit before refunding any deposit. A dealer may keep
7any lead-acid battery deposit moneys that are not properly claimed
8within 45 days after the date of sale of the replacement lead-acid
9battery.

10
(c) A dealer shall post a written notice that is clearly visible in
11the public sales area of the establishment and that contains the
12following language:

13

 

begin insert

It is unlawful to dispose of a motor vehicle battery or other lead-acid battery in a landfill or any unauthorized site.

 

Recycle all used batteries.

This dealer is required by law to accept used lead-acid batteries of the same type and size sold by the dealer, but is not required to accept more than six lead-acid batteries from any person per day.

 

When a replacement lead-acid battery is purchased, this dealer is required by law to charge a nonrefundable $1 California battery fee for each battery.

 

An additional refundable deposit will be charged for each replacement lead-acid battery purchased unless a used lead-acid battery of the same type and size is returned at the time of purchase. The deposit will be refunded by the dealer if a used lead-acid battery of the same type and size is returned within 45 days of purchase of the replacement lead-acid battery. Upon return of a lead-acid battery for the refund of this deposit, the dealer may require the consumer to show the receipt for the purchase of the lead-acid battery on which the deposit was paid.

end insert
P10  33

 

34
(d) This section does not apply to a person whose ordinary
35 course of business does not include the sale of lead-acid batteries.

36

begin insert25215.25.end insert  

(a) (1) A consumer or business that purchases from
37a dealer a replacement lead-acid battery shall pay a California
38battery fee of one dollar ($1) for each replacement lead-acid
39battery purchased.

P11   1
(2) The dealer shall charge a consumer or business the amount
2of the California battery fee as a charge that is separate from, and
3not included in, any other fee, charge, or other amount paid by
4the consumer or business.

5
(3) The dealer shall collect the California battery fee at the time
6of sale and may retain 112 percent of the fee as reimbursement for
7any costs associated with the collection of the fee. The dealer shall
8remit the remainder to the State Board of Equalization on a
9quarterly schedule pursuant to Section 25215.45. All moneys
10remitted to the State Board of Equalization from the California
11battery fee shall be deposited into the Lead-Acid Battery Cleanup
12Fund.

13
(b) The California battery fee imposed pursuant to subdivision
14(a) shall be separately stated by the dealer on the invoice given to
15a consumer or business at the time of sale. Any other fee charged
16by the dealer related to the lead-acid battery purchase, including
17any deposit charged, credited, or both, pursuant to Section
1825215.2, shall be identified separately from the California battery
19fee.

20

begin insert25215.3.end insert  

An advertisement or other printed promotional
21material related to the sale of replacement lead-acid batteries
22shall contain the following notice: “By law, a nonrefundable $1
23California battery fee is charged per replacement lead-acid battery
24purchased, and an additional refundable deposit will be charged
25unless a used lead-acid battery of the same type and size is returned
26at the time of purchase. The deposit shall be refunded if a used
27battery of the same type and size as that purchased is returned
28within 45 days with a receipt from the purchase.”

29

begin insert25215.35.end insert  

(a) Each manufacturer of lead-acid batteries shall
30remit to the State Board of Equalization a manufacturer battery
31fee of one dollar ($1) for each lead-acid battery it sells at retail
32to a person in California or that it sells to a dealer, wholesaler,
33distributor, or other person for retail sale in California. The
34manufacturer shall remit the fees on a quarterly schedule pursuant
35to Section 25215.45. All moneys remitted to the State Board of
36Equalization from the manufacturer battery fee shall be deposited
37into the Lead-Acid Battery Cleanup Fund.

38
(b) (1) A wholesaler of a lead-acid battery who ships or
39arranges for the shipment of used lead-acid batteries to a lead-acid
40battery recycling facility may elect to be considered a manufacturer
P12   1for purposes of subdivision (a) and Sections 25215.5 and 25215.55.
2To so elect, the wholesaler shall notify the manufacturer of the
3lead-acid battery from which he or she purchased the lead-acid
4battery, the department, and the State Board of Equalization of its
5intent to be considered a manufacturer for those purposes and
6shall remit a manufacturer battery fee for each lead-acid battery
7purchased from the notified manufacturer. The wholesaler shall
8provide at least 30 days’ notice to the manufacturer, the
9department, and State Board of Equalization before the wholesaler
10is considered a manufacturer under subdivision (a). A
11manufacturer who has been notified by a wholesaler pursuant to
12this subdivision shall not be subject to subdivision (a) for purposes
13of the lead-acid batteries sold to the wholesaler.

14
(A) A manufacturer otherwise exempt from subdivision (a)
15pursuant to this subdivision may voluntarily submit an additional
16manufacturer battery fee of one dollar ($1) per lead-acid battery
17that is otherwise covered by a wholesaler. A manufacturer that
18voluntarily submits a manufacturer battery fee under this
19subparagraph shall be subject to Sections 25215.5 and 25215.55.

20
(B) A manufacturer that submits a manufacturer battery fee
21pursuant to subparagraph (A) shall be prohibited from imposing
22or passing on the voluntarily remitted fees to a wholesaler.

23
(2) A wholesaler that provides notice pursuant to paragraph
24(1) shall be considered a manufacturer for purposes of subdivision
25(a) and Sections 25215.5 and 25215.55 until 60 days after the
26wholesaler provides notice to the State Board of Equalization, the
27department, and the manufacturer of the lead-acid battery of the
28wholesaler’s intention to no longer be considered a manufacturer.

29
(3) The State Board of Equalization shall establish appropriate
30procedures for providing notifications pursuant to this subdivision.

31

begin insert25215.45.end insert  

(a) The State Board of Equalization shall establish
32a mechanism by which the fees remitted pursuant to Sections
3325215.25 and 25215.35 shall be due and payable quarterly on or
34before the 15th day of the month following each calendar quarter.
35The remitted moneys shall be deposited into the Lead-Acid Battery
36Cleanup Fund.

37
(b) The department and the State Board of Equalization shall
38be reimbursed for the costs of collection, auditing, and
39administration of funds associated with the establishment and
40operation of the Lead-Acid Battery Cleanup Fund in an amount
P13   1that shall not exceed 3 percent of the total annual revenue
2deposited in the fund for a fiscal year.

3
(c) (1) The State Board of Equalization, if it deems it necessary
4to ensure payment to, or facilitate the collection by, the state of
5the amount of the fees required to be remitted under this article,
6may require returns and payment of the amount of the fees for a
7yearly period. The State Board of Equalization may audit the
8returns submitted by a person who remits moneys to the Lead-Acid
9Battery Cleanup Fund pursuant to Section 25215.25 or 25215.35.

10
(2) On or before the 15th day of the month following each
11designated yearly period, a return for the preceding designated
12yearly period shall be filed with the State Board of Equalization
13in the form that the State Board of Equalization prescribes.

14

begin insert25215.5.end insert  

(a) The Lead-Acid Battery Cleanup Fund is hereby
15created in the State Treasury.

16
(b) Moneys in the Lead-Acid Battery Cleanup Fund shall be
17continuously appropriated, without regard to fiscal year, solely
18to pay the costs for the following activities:

19
(1) To the department for investigation, site evaluation, cleanup,
20abatement, remedy, removal, monitoring, or other response actions
21at any site in California investigated because of concerns about
22lead releases from a lead-acid battery recycling facility, including,
23but not limited to, areas at or near the former Exide lead-acid
24battery recycling facility in Vernon, California.

25
(2) To the department and the State Board of Equalization for
26administration of the Lead-Acid Battery Cleanup Fund, as provided
27in subdivision (b) of Section 25215.45.

28
(3) To the department for repayment of a loan pursuant to
29Section 25215.6.

30
(c) (1) Before seeking to recover moneys spent for purposes
31identified in paragraph (1) of subdivision (b) from a person who
32has remitted a manufacturer battery fee pursuant to Section
3325215.35, other than a person who is the owner or operator, or
34legal successor to the owner or operator, of a site at which the
35activity occurred, the department shall do both of the following:

36
(A) Draw from and deplete the funds in the Lead-Acid Battery
37Cleanup Fund.

38
(B) Exhaust efforts to recover any moneys expended for an
39activity described in paragraph (1) of subdivision (b) from the
40owner or operator, or legal successor to the owner or operator,
P14   1of the site at which the activity occurred, or the site that is
2identified as the source of the release to which the activity was
3directed. If a person from whom the department recovered moneys
4under this subparagraph receives a favorable judgment against a
5second person who has remitted a manufacturer battery fee in an
6action relating to those response activities, the judgment shall be
7reduced by the amount the second person has already remitted to
8the Lead-Acid battery Cleanup Fund pursuant to Section 25215.35
9that is not previously committed to other payor liabilities.

10
(2) Nothing in this subdivision shall be construed to limit or
11otherwise affect any cause of action that may exist under any law
12that the state may bring against the owner or operator, or legal
13successor to the owner or operator, of a site at which any activity
14described in paragraph (1) of subdivision (b) occurred.

15
(d) Any funds expended from the Lead-Acid Battery Cleanup
16Fund that are subsequently recovered from any person pursuant
17to subdivision (c) shall be deposited into the Lead-Acid Battery
18Cleanup Fund.

19
(e) Moneys from the Lead-Acid Battery Cleanup Fund shall not
20be used to implement Article 14 (commencing with Section 25251)
21with respect to lead-acid batteries or to loan moneys to any other
22program. As long as the national recycling rate for lead in
23lead-acid batteries, determined by the methodology accepted by
24the United State Environmental Protection Agency and used in
25the Battery Council International’s National Recycling Rate Study,
26exceeds __ percent, a lead-acid battery shall not be considered
27for inclusion on a list of products established under Section 25252
28or be otherwise regulated under Article 14 (commencing with
29Section 25251). Nothing in this subdivision shall preclude a study
30of the impacts and benefits of the manufacture and recycling of
31lead-acid batteries from being conducted as a pilot project
32pursuant to the department’s Community Protection and
33Hazardous Waste Reduction Initiative.

34
(f) The department shall report annually to the Governor and
35to the Legislature on the status of the Lead-Acid Battery Cleanup
36Fund and on the department’s progress to implement this article,
37including, but not limited to, the sites at which actions were
38performed using moneys from the fund, the balance of the fund,
39the amount of fees remitted to the fund, the amount spent by the
40fund and the purposes for which those amounts were spent, the
P15   1amounts reimbursed to the department and the State Board of
2Equalization pursuant to subdivision (b) of Section 25215.45, the
3amounts collected by the department pursuant to subdivision (c),
4and any other information requested by the Governor or the
5Legislature.

6

begin insert25215.55.end insert  

(a) (1) A person who has remitted a manufacturer
7battery fee and who is held responsible by any court, regional
8board, agency, or any other authority, under the
9Carpenter-Presley-Tanner Hazardous Substance Account Act
10(commencing with Section 25300) or any other law, for the
11payment or reimbursement of any moneys to the state or a regional
12board for any activity listed in paragraph (1) of subdivision (b) of
13Section 25215.5 shall have its responsibility for that payment or
14reimbursement reduced by the amount that person remitted
15pursuant to Section 25215.35 that has not otherwise been
16committed to the payor’s liability and by the amount recovered by
17the state pursuant to subparagraph (B) of paragraph (1) of
18subdivision (c) of Section 25215.5.

19
(2) The state may bring an action against a person who has
20remitted a manufacturer battery fee for the payment or
21reimbursement of any moneys to the state or a regional board for
22any of the activities listed in paragraph (1) of subdivision (b) of
23Section 25215.5 only if the state has a reasonable basis to believe
24that the person ultimately would be held responsible for amounts
25in excess of the amount of manufacturer battery fees the person
26has remitted to the Lead-Acid Battery Cleanup Fund that is not
27already committed to the payor’s liability.

28
(3) Before bringing any action against a person pursuant to
29paragraph (2), the state shall notify the person of the state’s intent
30to bring the action and meet and confer with that person to attempt
31to reach an agreement by which the person voluntarily resolves
32the state’s claim.

33
(4) Nothing in this subdivision shall be construed to create a
34private cause of action against a manufacturer, affect any cause
35of action that may exist under other law, or reduce the amount of
36damages for which a manufacturer is held liable in any civil action
37for personal injury or wrongful death.

38
(5) Nothing in this subdivision shall be construed to limit or
39otherwise affect a claim the state may assert against an owner or
40operator, or legal successor of an owner or operator, of a site at
P16   1which any activity described in paragraph (1) of subdivision (b)
2of Section 25215.5 occurred.

3
(b) Notwithstanding any other law, not including a person who
4is or was an owner or operator of a site subject to paragraph (1)
5of subdivision (b) of Section 25215.5, an administrative order shall
6not be issued or judicial relief sought to compel any person who
7has remitted a manufacturer battery fee to take any activity
8described in paragraph (1) of subdivision (b) of Section 25215.5
9at that site unless all of the following conditions are met:

10
(1) The Lead-Acid Battery Cleanup Fund has been exhausted
11by the state.

12
(2) Any activities undertaken by any party at the site have been
13inadequate to fully address concerns to which the activities
14described in paragraph (1) of subdivision (b) of Section 25215.5
15would be directed.

16
(3) The state has a reasonable basis to believe that, if state or
17private funds are used to undertake the activities described in
18paragraph (1) of subdivision (b) of Section 25215.5 and recovery
19of those funds is sought from the person against whom the
20administrative order was issued, that person ultimately would be
21held responsible for amounts in excess of the amount of
22manufacturer battery fees the person has remitted to the Lead-Acid
23Battery Cleanup Fund that is not already committed to the payor’s
24liability.

25

begin insert25215.6.end insert  

If the state loans money from the General Fund to
26the Toxic Substances Control Account for the cleanup of lead
27contamination in the state, the following shall apply:

28
(a) Money from the Lead-Acid Battery Cleanup Fund may be
29used towards repaying the loan.

30
(b) Any moneys designated as repayment of the loan shall be
31deposited to that loan, but shall be available to be loaned to the
32Toxic Substances Control Account for the purposes of cleaning
33up areas of the state that have been contaminated with lead by the
34production, handling, storage, reclamation, or improper disposal
35of lead-acid batteries.

36

begin insert25215.65.end insert  

On and after July 1, 2017, a manufacturer shall
37place a uniform widely understood recycling symbol on all
38replacement lead-acid batteries sold in California.

P17   1

begin insert25215.7.end insert  

(a) The department may impose civil administrative
2penalties not to exceed one thousand dollars ($1,000) per day on
3any person who is in violation of any provision of this article.

4
(b) In assessing or reviewing the amount of a civil penalty
5imposed pursuant to subdivision (a) for a violation of this article,
6the department or the court shall consider all of the following:

7
(1) The nature and extent of the violation.

8
(2) The number and severity of the violation or violations.

9
(3) The economic effect of the penalty on the violator.

10
(4) Whether the violator took good faith measures to comply
11with this article and the period of time over which these measures
12were taken.

13
(5) The willfulness of the violator’s misconduct.

14
(6) The deterrent effect that the imposition of the penalty would
15have on both the violator and the regulated community.

16
(7) Any other factor that justice may require.

17
(c) The department shall deposit all penalties collected pursuant
18to this section into the Lead-Acid Battery Cleanup Fund.

19

begin insert25215.75.end insert  

This article shall become operative on January 1,
202017.

end insert
21begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 25215.5.5 is added to the end insertbegin insertHealth and Safety
22Code
end insert
begin insert, to read:end insert

begin insert
23

begin insert25215.5.5.end insert  

This article shall remain in effect only until January
241, 2017, and as of that date is repealed, unless a later enacted
25statute, that is enacted before January 1, 2017, deletes or extends
26that date.

end insert
27begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

(a) The Department of Toxic Substances Control,
28within 30 days after the effective date of this act, shall notify all
29manufacturers of replacement lead-acid batteries sold in this state
30of the requirements set forth in Article 10.5 (commencing with
31Section 25215) of Chapter 6.5 of Division 20 of the Health and
32Safety Code, as it will read on and after January 1, 2017.

end insert
begin insert

33
(b) Each manufacturer of lead-acid batteries sold in this state,
34within 30 days of receiving notice pursuant to subdivision (a),
35shall notify the distributors, wholesalers, and dealers of the
36lead-acid batteries it manufactures of the requirements set forth
37in Article 10.5 (commencing with Section 25215) of Chapter 6.5
38of Division 20 of the Health and Safety Code, as it will read on
39and after January 1, 2017.

end insert
P18   1begin insert

begin insertSEC. 6.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
2immediate preservation of the public peace, health, or safety within
3the meaning of Article IV of the Constitution and shall go into
4immediate effect. The facts constituting the necessity are:

end insert
begin insert

5
In order to increase the cleanup of toxic materials and to prevent
6additional toxic pollution at the earliest possible time, it is
7necessary that this act take effect immediately.

end insert
begin delete
8

SECTION 1.  

Chapter 7.5 (commencing with Section 42420)
9is added to Part 3 of Division 30 of the Public Resources Code, to
10read:

11 

12Chapter  7.5. Lead-Acid Battery Recovery and Recycling
13Act
14

14 

15Article 1.  Declarations and Definitions
16

 

17

42420.  

(a) The Legislature finds and declares that in order to
18reduce illegal dumping, increase recycling, and substantially reduce
19public agency costs for the end-of-life management of lead-acid
20batteries, the Lead-Acid Battery Recovery and Recycling Act is
21hereby established by this chapter to require manufacturers of
22lead-acid batteries sold in this state to develop, finance, and
23implement a convenient and cost-effective program to recover and
24recycle lead-acid batteries generated in this state.

25(b) It is the intent of the Legislature in enacting this chapter that
26all of the following occur:

27(1) That consumers have the opportunity to drop off their
28lead-acid batteries free of charge.

29(2) That existing lead-acid battery recycling, resale, refurbishing,
30and reuse operations that are in compliance with state and federal
31law shall not be adversely affected by this chapter.

32(3) That domestic processing of lead-acid batteries and the
33utilization of recycled materials from lead-acid batteries are
34encouraged.

35

42420.2.  

This chapter shall be known, and may be cited, as the
36Lead-Acid Battery Recovery and Recycling Act.

37

42421.  

For purposes of this chapter, the following definitions
38shall apply:

39(a) (1) “Consumer” means an owner of a lead-acid battery,
40including a person, business, corporation, limited partnership,
P19   1nonprofit organization, or governmental entity, including the
2ultimate purchaser, owner, or lessee of a lead-acid battery.

3(2) “Consumer” does not include a governmental organization
4or other party that obtains one or more used lead-acid batteries in
5the course of collecting used lead-acid batteries for recycling for
6purposes of this chapter, or through the ordinary collection and
7handling of municipal solid waste.

8(b) “Distributor” means a company that has a contractual
9relationship with one or more manufacturers to market and sell
10lead-acid batteries to retailers.

11(c) “Good-faith effort” means all reasonable and economically
12practical efforts, consistent with the components identified in the
13approved plan and annual budget of a lead-acid battery recycling
14organization.

15(d) “Importer” means a party qualifying as an “importer of
16record” for purposes of Section 1484(a)(2)(B) of Title 19 of the
17United States Code, with regard to the import of a finished
18lead-acid battery sold in the state that was manufactured or
19assembled by a company outside the United States.

20(e) “Lead-acid battery” means any battery that consists of lead
21and sulfuric acid and is used as a power source.

22(f) “Lead-acid battery recycling organization” or “organization”
23means an organization exempt from taxation under Section
24501(c)(3) or Section 501(c)(6) of the Internal Revenue Code of
251986, that is established by a qualified industry association,
26composed of manufacturers, recyclers, retailers, and environmental
27justice organizations, and certified pursuant to Section 42422, to
28develop, implement, and administer the lead-acid battery recycling
29program established pursuant to this chapter.

30(g) (1) “Manufacturer” means any of the following:

31(A) The person who manufactures a lead-acid battery and who
32sells, offers for sale, or distributes a lead-acid battery in the state.

33(B) The person who imports the lead-acid battery into the state
34for sale or distribution if there is no person who is a manufacturer
35of a lead-acid battery for purposes of subparagraph (A).

36(2) A retailer that brings a lead-acid battery into its store
37locations from an out-of-state warehouse or distribution center is
38not a manufacturer.

39(h) “Program” or “lead-acid battery recycling program” means
40the program implemented by the lead-acid battery recycling
P20   1organization pursuant to a lead-acid battery recycling plan approved
2by the department.

3(i) “Qualified industry association” means the Battery Council
4International, or a successor of that organization, or a group of
5lead-acid battery manufacturers that collectively represent at least
635 percent of the volume of lead-acid batteries manufactured in
7the United States.

8(j) “Recycle” or “recycling” has the same meaning as defined
9in Section 40180.

10(k) “Recycler” means a person that engages in the manual or
11mechanical separation of lead-acid batteries to substantially recover
12components and commodities contained in lead-acid batteries for
13the purpose of reuse or recycling.

14(l) “Recycling charge” or “charge” means the charge imposed
15on the sale of a new lead-acid battery at the point of sale and
16collected by the recycling organization to fund the recycling of
17used lead-acid batteries pursuant to this chapter.

18(m) “Retailer” means a person who sells lead-acid batteries in
19the state or offers to a consumer a lead-acid battery in the state
20through any means, including, but not limited to, remote offering,
21including sales outlets or catalogs, electronically through the
22Internet, by telephone, or through the mail.

23(n) “Sale” or “sell” means the transfer of title of a lead-acid
24battery for consideration, including by a manufacturer, a distributor,
25or a retailer, for eventual consumption to a consumer in the state,
26including remote sales conducted through sales outlets, catalogs,
27or the Internet or any other similar electronic means.

28(o) “Solid waste facility” means, for purposes of this chapter,
29 a solid waste facility that accepts, under its normal operating
30conditions, used lead-acid batteries from the public for collection,
31storing, and handling, whether for recycling or disposal.

32(p) “Used lead-acid battery recovery and recycling plan” or
33“plan” means the plan for recycling used lead-acid batteries that
34is developed by the lead-acid battery recycling organization
35pursuant to this chapter.

36 

37Article 2.  Lead-Acid Battery Recycling Plan
38

 

39

42422.  

(a) (1) On or before July 1, 2017, a qualified industry
40association shall establish a lead-acid battery recycling organization
P21   1for purposes of this chapter, which shall be composed of
2manufacturers, recyclers, and retailers and be certified pursuant
3to this section to develop, implement, and administer the lead-acid
4battery recycling program established pursuant to this chapter.

5(2) Within 60 days of receipt of a request for certification, the
6department shall certify the organization as specified in paragraph
7(1) or notify the requesting qualified industry association of the
8department’s decision not to certify the organization.

9(3) Prior to certification by the department, the department’s
10director shall appoint an advisory committee to advise the lead-acid
11battery recycling organization.

12(A) The advisory committee shall be composed of members of
13the environmental community, the solid waste industry, local
14governmental entities, public and private entities involved in the
15collection, processing, and recycling of used lead-acid batteries,
16and other interested parties.

17(B) The lead-acid battery recycling organization shall consult
18the advisory committee at least once during the development of
19the plan required pursuant to Section 42422.2, and annually prior
20to the submittal of the annual report required pursuant to Section
2142425.2 and the annual budget required pursuant to Section 42423.

22(C) The advisory committee shall provide ongoing feedback to
23a recycling organization on the implementation of the recycling
24organization’s plan.

25(b) On or before January 1, 2018, each manufacturer, retailer,
26and recycler shall register with the lead-acid battery recycling
27organization.

28(c) On and after January 1, 2019, a retailer shall not sell,
29distribute, or offer for sale a lead-acid battery in the state unless
30the retailer is in compliance with this chapter and the manufacturer
31or recycler of the lead-acid battery sold by the retailer is listed in
32compliance with this chapter.

33(d) On and after January 1, 2019, a manufacturer or recycler
34shall not sell or offer for sale in this state, or import into this state,
35a lead-acid battery, or sell or distribute a lead-acid battery to a
36distributor or retailer in this state, unless the manufacturer or
37recycler is in compliance with this chapter.

38

42422.2.  

On or before July 1, 2018, the lead-acid battery
39recycling organization shall develop and submit to the department
40a plan for recycling used lead-acid batteries in the state in an
P22   1economically efficient and practical manner that includes all of
2the following goals and elements:

3(a) Program objectives consistent with the state’s solid waste
4management hierarchy.

5(b) The names of manufacturers, recyclers, and brands, including
6the types of lead-acid batteries, covered under the plan, and contact
7information of manufacturers and producers covered under the
8plan.

9(c) A description of a consultation process with affected
10stakeholders, including, but not limited to, local government
11representatives, recyclers, and solid waste industry representatives,
12undertaken during plan development, and a process for receiving
13continuous feedback from stakeholders during plan
14implementation.

15(d) Methods to increase the number of used lead-acid batteries
16diverted from landfills, reduce the number of illegally dumped
17used lead-acid batteries, and increase the quantity of used
18lead-acid-battery-related materials recovered and recycled for other
19uses.

20(e) A description of how the goals will be achieved and how
21results will be measured, including an estimate of the amount of
22lead-acid batteries with California recycling stickers that will be
23recovered compared to the amount of lead-acid batteries sold in
24the state.

25(f) Roles and responsibilities of key players along the product
26chain, including the names and locations of transporters, recyclers,
27and disposal facilities, and a description of how lead-acid batteries
28with California recycling stickers and their components will be
29collected, transported, and managed.

30(g) Strategies for managing and reducing the life cycle impacts
31of lead-acid batteries, including finding an alternative to the use
32of lead in batteries.

33(h) Conducting research, as needed, related to improving
34collection and recycling operations for used lead-acid batteries
35with California recycling stickers, including pilot programs to test
36new processes, methods, or equipment on a local, regional, or
37otherwise limited basis.

38(i) An itemized budget, including total program cost.

P23   1(j) (1) The establishment and administration of a mechanism
2that distributes the lead-acid battery recycling organization’s costs
3uniformly over all lead-acid batteries sold in the state.

4(2) The funding mechanism shall provide sufficient funding for
5the lead-acid battery recycling organization to carry out the plan,
6including the administrative, operational, and capital costs of the
7plan.

8(k) Financing methods, including financial assurance, for the
9program and an explanation of how the recycling organization will
10 provide evidence of adequate collection, handling, and recycling
11or disposal of lead-acid batteries with California recycling stickers.

12(l) The publishing of an annual report for each calendar year of
13operation.

14(m) A program performance measurement that shall collect
15program data for the purpose of the annual report. The information
16shall include:

17(1) A methodology for estimating the amount of lead-acid
18batteries sold in the state and for quantifying the number of used
19lead-acid batteries with California recycling stickers collected and
20recycled in the state.

21(2) A methodology for determining the proportion of lead-acid
22batteries sold in the state by the manufacturers that are members
23of the lead-acid battery recycling organization.

24(n) A description of methods used to coordinate activities with
25other used lead-acid battery collecting and recycling programs,
26including nonprofit lead-acid battery recyclers, and other relevant
27parties, as appropriate, with regard to the proper management or
28recycling of discarded or abandoned lead-acid batteries for
29purposes of providing the efficient delivery of services and
30avoiding unnecessary duplication of effort and expense.

31(o) Entering into contracts or agreements, which may include
32contracts and agreements with nonprofit or for-profit recyclers,
33that are necessary and proper for the lead-acid battery recycling
34organization to carry out these duties consistent with the terms of
35this chapter.

36(p) Establishment of a financial incentive to encourage parties
37to collect for recycling used lead-acid batteries discarded or
38illegally dumped in the state.

39(q) Ensuring, to the maximum extent possible, that urban and
40rural local governments and participating solid waste facilities that
P24   1accept lead-acid batteries are provided with a mechanism for the
2recovery of illegally disposed used lead-acid batteries that is funded
3at no additional cost to the local government or solid waste facility.

4(r) Providing outreach efforts and education to consumers,
5manufacturers, and retailers, for the purpose of promoting the
6recycling of used lead-acid batteries and options available to
7consumers for the free drop-off of used lead-acid batteries.

8(s) A provision that allows an individual to drop off, at no
9charge, a lead-acid battery at a lead-acid battery recycling center,
10permitted solid waste facility, or other municipal facility that
11accepts lead-acid batteries, and that provides for reasonable
12payment to a municipal or solid waste facility that accepts lead-acid
13batteries for collecting, storing, transporting, and handling used
14lead-acid batteries.

15(t) Ensuring that the impact of Article XIII C of the California
16Constitution is addressed for local governments participating in
17the program.

18(u) A report from the advisory committee, established pursuant
19to paragraph (3) of subdivision (a) of Section 42422, that includes
20a summary of the consultative process between the advisory
21committee and the lead-acid battery recycling organization during
22the development of the plan, as well as any other information
23deemed pertinent by the advisory committee to maximizing the
24recovery and recycling of used lead-acid batteries in the state.

25(v) Other information requested by the department that is
26reasonably related to compliance with the recycling plan and that
27the organization can reasonably compile.

28

42422.4.  

The recycling organization, in developing the plan
29pursuant to Section 42422.2, may include market development
30opportunities that would provide incentives to universities and
31research companies to find alternatives to lead.

32

42422.6.  

(a) The department shall review the plan for
33compliance with this chapter and shall approve, disapprove, or
34conditionally approve the plan within 90 days of receipt of the
35plan. If the department fails to act within 90 days of the receipt of
36the plan, the plan shall be deemed approved.

37(b) If the department disapproves the plan pursuant to
38subdivision (a), the department shall explain, in writing, how the
39plan does not comply with this chapter, and the lead-acid battery
40recycling organization shall resubmit a plan to the department. If
P25   1the department finds that the plan as resubmitted by the
2organization does not comply with the requirements of this chapter,
3the lead-acid battery recycling organization shall be deemed not
4in compliance with this chapter until the organization submits a
5plan that the department finds complies with the requirements of
6this chapter. The lead-acid battery recycling organization shall not
7resubmit the plan more than two times to the department.

8(c) The approved plan shall be a public record, except that
9financial, production, or sales data reported to the department by
10the lead-acid battery recycling organization is not public record
11for purposes of the California Public Records Act (Chapter 3.5
12(commencing with Section 6250) of Division 7 of Title 1 of the
13Government Code) and shall not be open to public inspection. The
14department may release financial, production, or sales data in
15summary form only so that the information cannot be attributable
16to a specific manufacturer, retailer, or other entity.

17

42422.8.  

Within 90 days after approval or conditional approval
18by the department of the plan, but no later than January 1, 2019,
19the lead-acid battery recycling organization shall implement the
20approved plan.

21

42422.9.  

(a) On or before January 1, 2021, based on
22methodology contained in the plan and information contained in
23the first annual report, the department, in consultation with the
24organization and after taking into consideration relevant economic
25and practical considerations and other information, shall establish
26and make public the following:

27(1) The state baseline amount of recycling of lead-acid batteries
28with California recycling stickers.

29(2) The state recycling goals for lead-acid batteries with
30California recycling stickers.

31(b) Beginning July 1, 2022, and annually thereafter, the annual
32report required pursuant to Section 42425.2 shall demonstrate the
33lead-acid battery recycling organization’s good-faith effort to
34comply with the state lead-acid battery recycling goals established
35pursuant to this section.

36(c) On or before July 1, 2023, and every four years thereafter,
37the department shall review, including reviewing for consistency
38with Section 41780.01, and update, as necessary, the baseline
39amount and goals to ensure that the program advances the state
40recycling goal.

 

P26   1Article 3.  Budget
2

 

3

42423.  

On or before July 1, 2018, and on or before July 1
4annually thereafter, the lead-acid battery recycling organization
5shall prepare and submit to the department a proposed used
6lead-acid battery recycling program budget for the following
7calendar year that includes all of the following:

8(a) Anticipated revenues and costs of implementing the program,
9including related programs, projects, contracts, and administrative
10expenses.

11(b) A recommended funding level sufficient to cover the plan’s
12budgeted costs and to operate the lead-acid battery recycling
13program over a multiyear period in a prudent and responsible
14manner.

15(c) The amount of the lead-acid battery recycling charge and
16an itemization of the costs of the program.

17

42423.2.  

(a) On or before October 1, 2018, and annually
18thereafter, the department shall approve or disapprove a final used
19lead-acid battery recycling program budget. If the department fails
20to act or does not disapprove a final used lead-acid battery recycling
21program budget, the budget shall be deemed approved.

22(b) (1) If the department disapproves the budget, the department
23shall explain, in writing, how the budget does not comply with
24this article, and the lead-acid battery recycling organization shall
25submit a revised budget addressing the department’s written
26reasons for its decision within 30 days of the disapproval.

27(2) The department, within 30 days from the date the lead-acid
28battery recycling organization submits a revised budget, shall
29approve or disapprove a final used lead-acid battery recycling
30program budget. If the department fails to act or does not
31disapprove a final program budget within those 30 days, the budget
32shall be deemed approved.

33

42423.4.  

(a) The department shall notify the lead-acid battery
34recycling organization of the department’s costs that are directly
35related to implementing and enforcing this chapter relating to the
36lead-acid battery recycling organization’s activities. This may
37include the direct costs associated with regulatory development
38prior to submittal of the plan required pursuant to Section 42422.2.
39The total amount shall not exceed the department’s direct costs to
40implement and enforce this chapter.

P27   1(b) On or before July 1, 2019, and once every three months
2thereafter, and within the fiscal year ending June 30, the lead-acid
3battery recycling organization shall reimburse the department for
4costs the department incurs of which the organization is notified
5pursuant to subdivision (a).

6(c) The department shall deposit all moneys submitted pursuant
7to this section into the Used Lead-Acid Battery Recycling Fund,
8which is hereby established in the State Treasury. Upon
9appropriation by the Legislature, moneys in the fund shall be
10expended by the department to administer and enforce this chapter,
11as well as reimburse any outstanding loans made from other funds
12used to finance startup costs of the department’s activities pursuant
13to this chapter. The funds collected pursuant to this section shall
14not be expended for any other purpose.

15 

16Article 4.  Lead-Acid Battery Recycling Charge
17

 

18

42424.  

(a) The lead-acid battery recycling organization shall
19set the amount of the lead-acid battery recycling charge that shall
20be added to the purchase price of a lead-acid battery at the point
21of sale and include the charge amount in the annual budget.

22(b) The lead-acid battery recycling charge shall meet all of the
23following:

24(1) It shall be based on the value of lead.

25(2) It shall be no more than twenty dollars ($20) and no less
26than fifteen dollars ($15).

27(3) It shall be a flat rate and not a percentage of the purchase
28price of the lead-acid battery.

29(c) The recycling organization shall not set more than two
30different charges to accommodate lead-acid battery size
31differentials.

32(d) The lead-acid battery recycling charge shall be charged in
33lieu of any voluntary core charge being collected by retailers
34covered under this chapter.

35(e) If the amount of the lead-acid battery recycling charge
36changes pursuant to subdivision (f), the recycling organization
37shall notify retailers and any other entities that collect the recycling
38charge.

39(f) (1) In the first 12 months during which the lead-acid battery
40recycling charge is collected, the lead-acid battery recycling
P28   1organization may change the amount of the lead-acid battery
2recycling charge, in accordance with subdivision (b), and shall
3provide no less than 90 days’ notice to the public of any change
4in the amount of the charge.

5(2) After one year from the date when the collection of the
6lead-acid battery recycling charge commences, the lead-acid battery
7recycling organization may change the amount of the charge, in
8accordance with subdivision (b), but the lead-acid battery recycling
9organization shall not change the amount of the charge more
10frequently than annually and shall provide no less than 180 days’
11notice to the public before the change in the amount of the charge
12takes effect.

13(g) The amount of the lead-acid battery recycling charge shall
14be included in the annual program budget for approval by the
15department.

16

42424.1.  

(a) On a quarterly basis, a manufacturer, recycler,
17retailer, or distributor shall submit all moneys collected pursuant
18to this article, minus the amount disbursed to consumers for the
19return of lead-acid batteries with California recycling stickers
20pursuant to Section 42427, to the recycling organization along
21with any additional paperwork required by the department.

22(b) (1) The recycling organization shall remit to the state one
23dollar ($1) from the sale of each lead-acid battery with a California
24recycling sticker to be deposited in the Lead-Acid Battery Cleanup
25Fund, which is hereby created. Money in the Lead-Acid Battery
26Cleanup Fund shall be continuously appropriated, without regard
27to fiscal year, to the Department of Toxic Substances Control for
28the cleanup of areas of the state that have been contaminated by
29the production, recycling, or improper disposal of lead-acid
30batteries and activities described in Article 11 (commencing with
31Section 42431).

32(2) The balance in the Lead-Acid Battery Cleanup Fund shall
33not be more than one hundred million dollars ($100,000,000). If
34the balance in the Lead-Acid Battery Cleanup Fund reaches one
35hundred million dollars ($100,000,000), notice shall be given to
36the organization, and a retailer of lead-acid batteries and other
37collectors of the lead-acid battery recycling charge shall decrease
38the amount of the lead-acid battery recycling charge by one dollar
39($1) and the recycling organization shall suspend remitting moneys
40pursuant to paragraph (1). When the fund reaches thirty million
P29   1dollars ($30,000,000), notice shall be given to the organization,
2and the retailer or collector of the recycling charge shall increase
3the lead-acid battery recycling charge by one dollar ($1) and the
4recycling organization shall resume remitting moneys pursuant to
5paragraph (1).

6

42424.2.  

(a) Commencing 90 days after the date the department
7approves or conditionally approves the plan pursuant to Section
842422.6, each manufacturer, recycler, retailer, or distributor that
9sells a lead-acid battery to a consumer or to the ultimate end user
10of the lead-acid battery in the state shall add the charge to the
11purchase price of the lead-acid battery.

12(b) In each transaction described in subdivision (a), the charge
13shall be clearly visible as a separate line item on the invoice,
14receipt, or functionally equivalent billing document provided by
15the retailer to the consumer.

16(c) The lead-acid battery recycling organization shall develop
17reimbursement criteria to enable retailers to recover administrative
18costs associated with collecting the charge.

19(d) The lead-acid battery recycling organization shall determine
20the rules and procedures that are necessary and proper to implement
21the collection of the charge in a fair, efficient, and lawful manner.

22

42424.4.  

(a) The lead-acid battery recycling organization may
23conduct an audit of the parties that are required to remit the charge
24to the lead-acid battery recycling organization to verify that the
25charges paid are proper and accurate and to ensure all parties
26required by this chapter to pay or collect the charge are paying or
27collecting the proper amount.

28(b) An audit conducted pursuant to this section shall be carried
29out in accordance with generally accepted auditing practices and
30shall be limited in scope to confirming whether the charge has
31been properly collected on all sales of lead-acid batteries to
32consumers in the state.

33(c) For purposes of conducting audits pursuant to this section,
34the lead-acid battery recycling organization shall hire independent
35third-party auditors.

36(d) If the lead-acid battery recycling organization conducts an
37audit pursuant to this section, the organization shall provide a copy
38of the audit to the department.

39

42424.6.  

(a) Except as provided in Section 42424.1, the
40lead-acid battery recycling organization shall deposit the charges
P30   1and other moneys collected by the lead-acid battery recycling
2organization pursuant to this chapter in accounts that are
3maintained and disbursed by the organization.

4(b) The lead-acid battery recycling organization may enter into
5a joint venture, agreements, or contracts with third parties,
6including, but not limited to, corporations, partnerships, nonprofit
7entities, and governmental agencies, to undertake activities on the
8lead-acid battery recycling organization’s behalf that are consistent
9with this chapter.

10 

11Article 5.  Records, Audits, and Annual Report
12

 

13

42425.  

(a) The lead-acid battery recycling organization shall
14keep minutes, books, and records that clearly reflect the activities
15and transactions of the organization.

16(b) (1) The accounting books of the lead-acid battery recycling
17organization shall be audited at the organization’s expense by an
18independent certified public accountant retained by the organization
19at least once each calendar year.

20(2) The audit shall include, but is not limited to, the recycling
21organization’s program results and the number of lead-acid
22batteries with California recycling stickers that have been returned
23pursuant to Article 7 (commencing with Section 42427) in
24comparison to the number of lead-acid batteries sold in the state.

25(c) The lead-acid battery recycling organization shall arrange
26for each audit conducted since the prior annual report to be
27delivered to the department, along with the annual report required
28pursuant to Section 42425.2. The department shall review each
29audit for compliance with this chapter and consistency with the
30plan created pursuant to this chapter. The department shall notify
31the lead-acid battery recycling organization of any compliance
32issues or inconsistencies. The lead-acid battery recycling
33organization may obtain copies of the audits upon request. The
34department shall not disclose any confidential proprietary
35information in an audit.

36(d) The department may conduct its own audit if it determines
37that an audit is necessary to enforce the requirements of this chapter
38and that audits conducted pursuant to subdivision (b) are not
39adequate for this purpose.

P31   1

42425.2.  

On or before July 1, 2020, and each year thereafter,
2the lead-acid battery recycling organization shall submit to the
3department and make publicly available on its Internet Web site
4a report that includes, for the preceding calendar year, all of the
5following:

6(a) The lead-acid battery recycling organization’s costs and
7revenues.

8(b) The quantity of discarded used lead-acid batteries with
9California recycling stickers collected for recycling in the program.

10(c) The quantity of used lead-acid batteries with California
11recycling stickers collected for recycling from different types of
12collection points.

13(d) The quantity of materials recycled, disaggregated by
14material.

15(e) The uses for the recycled materials, disaggregated by
16material.

17(f) The quantity of materials disposed of without recycling.

18(g) A description of methods used, and the best management
19practices, to collect, transport, and process used lead-acid batteries
20in this state.

21(h) In the first report pursuant to this section, examples of
22educational materials that were provided to consumers during the
23program’s first year, and, in subsequent years, any changes to those
24materials.

25(i) The total volume, number, and weight of used lead-acid
26batteries with California recycling stickers collected, recycled, and
27reused in this state during the preceding calendar year, including
28any conversion factor used to determine the number of lead-acid
29batteries recovered.

30(j) A report by the advisory committee, established pursuant to
31paragraph (3) of subdivision (a) of Section 42422 that includes a
32summary of the consultative process between the advisory
33committee and the lead-acid battery recycling organization relating
34to the ongoing implementation of the plan, as well as any other
35information deemed pertinent by the advisory committee to
36maximizing the recovery and recycling of used lead-acid batteries
37in the state.

38(k) For reports submitted on and after April 1, 2023, a
39demonstration of good-faith effort with the state lead-acid battery
40recycling goals established pursuant to Section 42422.9.

P32   1(l) (1) Any modifications or revisions to the lead-acid battery
2recycling plan including those required pursuant to Section
342422.2, necessary to achieve the state lead-acid battery recycling
4goals established pursuant to Section 42422.9.

5(2) Any proposed modifications or revisions to the lead-acid
6battery recycling plan shall be submitted to the department and
7are subject to the department review process prescribed in Section
842422.6.

9(3) Within 90 days after approval or conditional approval by
10the department, the lead-acid battery recycling organization shall
11implement the revised plan.

12(m) Other information relevant to compliance with the plan.

13

42425.4.  

No later than 60 days after the date the department
14receives the annual report, the department shall notify the lead-acid
15battery recycling organization of any deficiencies in the report.
16No later than 60 days after receiving this notice from the
17department, the lead-acid battery recycling organization shall
18provide additional information, or modify or make corrections in
19the report, in response to the department’s notification.
20

 

21Article 6.  Lead-Acid Battery Recycling
22

 

23

42426.  

(a) On or before July 1, 2020, and annually thereafter,
24a person that is engaged in business as a recycler shall submit a
25report to the department that includes the following:

26(1) The number of lead-acid batteries with California recycling
27stickers received and recycled in the state during the preceding
28calendar year.

29(2) Other information deemed necessary by the department that
30is reasonably related to compliance with this chapter and that can
31be reasonably compiled.

32(b) For purposes of determining the used lead-acid battery
33recycling rate, on or before July 1, 2020, and annually thereafter,
34the operator of a solid waste landfill facility within the state shall
35report to the department, if requested, in a form and manner
36determined by the department, regarding the number of used
37lead-acid batteries with California recycling stickers received by
38that facility that were recycled or disposed of in the preceding
39calendar year.

P33   1(c) The department shall make the information provided pursuant
2to this section available to interested parties and to the public.

3 

4Article 7.  California Lead-Acid Battery Consumer Recycling
5Program
6

 

7

42427.  

(a) On and after the same date a manufacturer, recycler,
8retailer, or distributor described in Section 42424.2 is required to
9add the recycling charge to the purchase price of a lead-acid
10battery, that manufacturer, recycler, retailer or distributor shall
11affix a California recycling sticker, as determined by the
12department, to each lead-acid battery at the point of sale. Every
13lead-acid battery sold in California on and after that date shall be
14labeled with that California recycling sticker.

15(b) (1) Except as provided in paragraph (2), a consumer who
16returns a lead-acid battery with a California recycling sticker to a
17manufacturer, retailer, or other entity that sells lead-acid batteries
18to the ultimate user shall be given a refund of the recycling charge
19minus three dollars ($3).

20(2) If at the time the consumer returns a lead-acid battery the
21recycling organization is not remitting one dollar ($1) into the
22Lead-Acid Battery Cleanup Fund, as described in paragraph (2)
23of subdivision (b) of Section 42424.1, the refund shall be the
24recycling charge minus two dollars ($2).

25(3) One dollar ($1) of the three dollars ($3) described in
26paragraph (1) shall be used as the one dollar ($1) remitted to the
27Lead-Acid Battery Cleanup Fund pursuant to Section 42424.1.
28The remaining two dollars ($2) shall be used by the lead-acid
29battery recycling organization for administration and
30implementation of the program.

31(c) A consumer who returns a lead-acid battery without a
32California recycling sticker shall not be given a refund.

33

42427.2.  

If the total amount of refunds given out by an entity
34exceeds the total amount of recycling charge collected by the entity,
35the entity shall receive moneys from the recycling organization in
36the amount of the difference.

37

42427.4.  

An entity that sells or distributes a lead-acid battery
38in California to the ultimate user shall accept a used lead-acid
39battery regardless if the lead-acid battery has a California recycling
40sticker.

P34   1

42427.6.  

A retailer that sells a used lead-acid battery to a
2manufacturer shall remit 75 percent of the sale price of the used
3lead-acid battery to the lead-acid battery recycling organization
4for deposit into the Lead-Acid Battery Cleanup Fund.
5

5 

6Article 8.  Enforcement
7

 

8

42428.  

(a) On or before March 1, 2018, and annually thereafter,
9the department shall post on its Internet Web site a list of
10manufacturers and recyclers that are in compliance with this
11chapter.

12(b) A manufacturer or recycler that is not listed on the
13department’s Internet Web site pursuant to this section, but
14demonstrates compliance with the requirements directly imposed
15by this chapter before the next notice is required to be posted
16pursuant to this section, may request a certification letter from the
17department stating the manufacturer or recycler is in compliance.
18The manufacturer or recycler that receives the letter shall be
19deemed to be in compliance with this chapter.

20(c) A retailer that distributes or sells a lead-acid battery shall
21monitor the department’s Internet Web site to determine if the
22manufacturer or recycler is in compliance with this chapter. A
23retailer otherwise in compliance with this chapter shall be deemed
24in compliance with the chapter if, on the date the retailer ordered
25or purchased a lead-acid battery, or within 120 calendar days before
26or after that date, the manufacturer or recycler was listed as
27compliant on the department’s Internet Web site, unless it is shown
28the retailer was actually aware of the manufacturer’s or recycler’s
29noncompliance.

30(d) A retailer may sell or distribute lead-acid batteries through
31sales to the public if those batteries were initially ordered or
32purchased from a manufacturer or recycler when the manufacturer
33or recycler was in compliance with the requirements of this chapter
34or the retailer is deemed compliant in regard to those batteries
35pursuant to subdivision (c).

36(e) The sale, distribution, or offering for sale of any lead-acid
37battery in stock prior to the commencement of the collection of
38the lead-acid battery recycling charge pursuant to this chapter shall
39be deemed to be in compliance with this chapter.

P35   1(f) If the department determines a manufacturer or recycler is
2not in compliance with this chapter, the department shall remove
3the manufacturer or recycler from the department’s Internet Web
4site pursuant to this section and the manufacturer or recycler shall
5not sell a lead-acid battery in the state until the department
6determines the manufacturer or recycler is in compliance with this
7chapter.

8

42428.2.  

(a) The department may impose an administrative
9civil penalty on any manufacturer, lead-acid battery recycling
10organization, recycler, or retailer that is in violation of this chapter.
11The amount of the administrative civil penalty shall not exceed
12one thousand dollars ($1,000) per day, but if the violation is
13intentional, knowing, or reckless, the department may impose an
14administrative civil penalty of not more than ten thousand dollars
15($10,000) per day.

16(b) The department shall not impose a penalty on the lead-acid
17battery recycling organization pursuant to this section for a failure
18to comply with this chapter if the organization demonstrates it
19received false or misleading information from a member of the
20organization or another party that was the direct cause of its failure
21to comply.

22(c) The department shall deposit all penalties collected pursuant
23to this section into the Lead-Acid Battery Recovery and Recycling
24Penalty Account, which is hereby created in the Used Lead-Acid
25Battery Recycling Fund. Upon appropriation by the Legislature,
26moneys deposited into the Lead-Acid Battery Recovery and
27Recycling Penalty Account shall be expended by the department
28to administer and enforce this chapter, including offsetting the
29costs incurred by the department as specified in subdivision (a) of
30Section 42423.4.

31

42428.4.  

Upon a written finding that a manufacturer, lead-acid
32battery recycling organization, recycler, or retailer has not met a
33material requirement of this chapter, in addition to any other
34penalties authorized under this chapter, the department may take
35any of the following actions, after affording the manufacturer,
36organization, recycler, or retailer a reasonable opportunity to
37respond to or rebut the finding, to ensure compliance with the
38requirements of this chapter:

P36   1(a) Revoke the lead-acid battery recycling organization’s plan
2approval or require the lead-acid battery recycling organization to
3resubmit the plan.

4(b) Remove the manufacturer or recycler from the department’s
5Internet Web site and list of compliant manufacturers and recyclers,
6as specified in Section 42428.

7(c) Require additional reporting requirements relating to
8compliance with the material requirement identified by the
9department.

10

42428.6.  

(a) A manufacturer, recycler, retailer, and lead-acid
11battery recycling organization shall do both of the following:

12(1) Upon request, provide the department with reasonable and
13timely access, as determined by the department and as authorized
14pursuant to Title 13 (commencing with Section 1822.50) of Part
153 of the Code of Civil Procedure, to its facilities and operations,
16as necessary to determine compliance with this chapter.

17(2) Upon request, provide the department with relevant records
18necessary to determine compliance with this chapter.

19(b) The records required by this chapter shall be maintained and
20accessible for three years. All reports and records provided to the
21department pursuant to this chapter shall be provided under penalty
22of perjury.

23(c) The department may take disciplinary action against a
24manufacturer, recycler, retailer, or lead-acid battery recycling
25organization if the manufacturer, recycler, retailer, or lead-acid
26battery recycling organization fails to provide the department with
27the access required pursuant to this section, including, but not
28limited to, imposing penalties pursuant to Section 42428.2 and
29posting an immediate notice on the department’s Internet Web site
30pursuant to Section 42428 that the manufacturer or recycler is no
31longer in compliance with this chapter.

32 

33Article 9.  Emergency Regulatory Authority
34

 

35

42429.  

(a) (1) The department may adopt emergency
36regulations to implement this chapter with regard to establishing
37a process for the submission and approval of the used lead-acid
38battery recovery and recycling plan, pursuant to Section 42422.6,
39and for the submission and approval of the proposed used lead-acid
P37   1battery recycling program budget, pursuant to Sections 42423 and
242423.2.

3(2) The department shall not adopt regulations pursuant to this
4section with regard to any other provision of this chapter.

5(3) This section does not limit the department’s authority to
6adopt regulations pursuant to Section 40502.

7(b) The emergency regulations adopted pursuant to this section
8shall be adopted in accordance with Chapter 3.5 (commencing
9with Section 11340) of Part 1 of Division 3 of Title 2 of the
10Government Code, and for the purposes of that chapter, including
11Section 11349.6 of the Government Code, the adoption of these
12regulations is an emergency and shall be considered by the Office
13of Administrative Law as necessary for the immediate preservation
14of the public peace, health, safety, and general welfare.
15Notwithstanding Chapter 3.5 (commencing with Section 11340)
16of Part 1 of Division 3 of Title 2 of the Government Code, any
17emergency regulations adopted by the department pursuant to this
18section shall be filed with the Office of Administrative Law.

19 

20Article 10.  Antitrust Immunity
21

 

22

42430.  

(a) Except as provided in subdivision (c), an action
23specified in subdivision (b) that is taken by a lead-acid battery
24recycling organization or its members that relates to any of the
25following is not a violation of the Cartwright Act (Chapter 2
26(commencing with Section 16700) of Part 2 of Division 7 of the
27Business and Professions Code), the Unfair Practices Act (Chapter
284 (commencing with Section 17000) of Part 2 of Division 7 of the
29Business and Professions Code), or the Unfair Competition Law
30(Chapter 5 (commencing with Section 17200) of Part 2 of Division
317 of the Business and Professions Code).

32(b) Subdivision (a) shall apply to all of the following elements
33of the plan and actions taken by the lead-acid battery recycling
34 organization, manufacturer, or recycler:

35(1) The creation, implementation, or management of a plan
36approved by the department pursuant to Article 2 (commencing
37with Section 42422) and the selection of the types or quantities of
38used lead-acid batteries recycled or otherwise managed pursuant
39to a plan, as described in Article 2 (commencing with Section
4042422).

P38   1(2) The cost and structure of an approved plan.

2(3) The establishment, administration, collection, or
3disbursement of the charges associated with funding the
4implementation of this chapter.

5(c) Subdivision (a) shall not apply to an agreement that does
6any of the following:

7(1) Fixes a price of or for lead-acid batteries, except for an
8 agreement related to costs or charges associated with participation
9in a plan approved or conditionally approved by the department
10and otherwise in accordance with this chapter.

11(2) Fixes the output of production of lead-acid batteries.

12(3) Restricts the geographic area in which, or customers to
13whom, lead-acid batteries will be sold.

14 

15Article 11.  Cleanup and Corrective Action of Sites
16Contaminated by Lead-Acid Batteries
17

 

18

42431.  

If the state loans money from the General Fund to the
19Toxic Substances Control Account during the 2016-17 fiscal year
20for the cleanup of lead contamination in the state, the following
21shall apply:

22(a) Money from the Lead-Acid Battery Cleanup Fund may be
23used towards repaying the loan, in an amount necessary to fund
24any share of the cleanup costs for which there is no identifiable
25responsible party.

26(b) Any moneys designated as repayment of the loan shall be
27credited to that loan, but shall be available to be loaned to the Toxic
28Substances Control Account for the purposes of cleaning up
29additional contamination by lead-acid batteries.

end delete


O

    96