BILL ANALYSIS Ó SB 489 Page 1 Date of Hearing: June 30, 2015 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Luis Alejo, Chair SB 489 (Monning) - As Amended April 6, 2015 SENATE VOTE: 35-0 SUBJECT: Hazardous waste: photovoltaic modules. SUMMARY: Authorizes photovoltaic modules (known as solar panels) to be managed as universal waste. Specifically, this bill: 1) Finds and declares that California has adopted policies that have contributed to making the state a leader in the installation of solar energy systems. 2) Finds and declares these policies include the California Solar Initiative, the state's net energy metering program, and the California Renewable Portfolio Standard (RPS). 3) Finds and declares that 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 25 and 40 years. SB 489 Page 2 4) Finds and declares the numerous renewable and customer-generated solar programs in California have led to a rapid expansion of solar energy systems and that an increasing amount of end-of-life photovoltaic modules can be expected from 2020 onwards, and that recycling is the most sustainable way to manage end-of-life photovoltaic modules. 5) States the intent of the Legislature to foster a comprehensive and innovative system for the reuse, recycling and proper and legal disposal of end-of-life photovoltaic modules. 6) States the intent of the Legislature to encourage the photovoltaic module industry to create a photovoltaic recycling organization to develop a plan for recycling end-of-life photovoltaic modules in order to make end-of-life management of photovoltaic modules convenient for consumers and the public and to ensure the return and recycling of photovoltaic modules. 7) Authorizes the Department of Toxic Substances Control (DTSC) to designate end-of-life photovoltaic modules that are identified as hazardous waste as a universal waste and subject those modules to universal waste management. EXISTING LAW: 1) Requires, pursuant to the Integrated Water Management Act of 1989, each city and county in California to implement a plan to divert 25-percent of its waste stream by 1995 and 50-percent of its waste stream starting in 2000. (Public Resources Code (PRC) § 41780, et seq.) SB 489 Page 3 2) Defines hazardous wastes as those identified in regulation by DTSC; wastes categorized as hazardous under the federal Resource Conservation and Recovery Act (RCRA); and, extremely hazardous waste and acutely hazardous waste. (Health & Safety Code § 25117) 3) Regulates seven categories of hazardous wastes that can be managed as universal wastes. (California Code of Regulations (CCR), Title 22, Division 4.5, Ch. 22) 4) Requires the California Department of Resources Recycling and Recovery (CalRecycle) to coordinate with DTSC to develop and implement a public information program to provide uniform and consistent information on the proper disposal of hazardous substances found in and around homes, and to assist the efforts of counties required to provide household hazardous waste collection, recycling, and disposal programs. (PRC § 47050 - 47051) 5) Allows CalRecycle to provide grants to local governments to help prevent the disposal of HHW, including for programs that expand or initially implement HHW programs. (PRC § 47200) 6) Requires, by December 31, 2020, 33% of total retail sales of electricity in California to be generated from eligible renewable energy resources, including from solar energy. (PUC § 399.11-399.32) 7) Defines "solar energy system" as a solar energy device that has the primary purpose of providing for the collection and distribution of solar energy for the generation of electricity, that produces at least one kilowatt, and produces not more than five megawatts, SB 489 Page 4 alternating current rated peak electricity, and that meets or exceeds the eligibility criteria established by the commission or the California Energy Commission. (Public Utilities Code (PUC) § 2852) FISCAL EFFECT: According to the Senate Appropriations Committee, this bill will likely result in one-time costs of $28,000 from the Toxic Substances Control Account to resubmit universal waste regulations for photovoltaic modules. COMMENTS: Need for the bill: According to the author, "Photovoltaic (PV) modules, commonly referred to as solar panels, have varying useful lives with some estimates ranging from 25-40 years. As part of California's effort to invest in solar installation, it is critical to consider its inevitable waste stream by making it easier for end-users to properly dispose and recycle these PV modules, promote efforts that provide a comprehensive system for take-back and recycling, and discourage disposal to landfills? "While some PV module companies may provide take-back and recycling services for their end-of-life PV modules, there is no comprehensive industry standard or system in place to deal with all PV modules? "SB 489 allows for a universal waste designation for hazardous waste PV modules, which will provide flexibility for companies or third-parties to develop more effective and cost efficient methods of handling PV modules within a take-back and recycle program. Universal waste designation relieves the burden of meeting some of the state's rigorous hazardous waste laws and allows the waste to be streamlined in existing systems for proper management similar to electronic devices, batteries, or SB 489 Page 5 CRVs [cathode ray tubes]." Life expectancy of a solar panel: According to the Solar Energy Industries Association, "[Solar panels] are designed to last more than 25 years, and many manufacturers back their products with performance guarantees backed by warranties. The lifespan of a [solar panel] is approximately 20-30 years, while the lifetime of an inverter is approximately 10 years. Therefore, many solar products have not yet reached end-of-life, and in fact, panels installed in the early 1980s are still performing at levels nearly equal to the installation performance level. Thus, even accounting for the dramatic growth of the industry, annual [solar panel] waste will not exceed 10,000 tons until after 2014, and will not exceed 100,000 tons until after 2017." Right now, solar panel recycling suffers from a chicken-or-egg problem: there currently aren't many places to recycle old solar panels, and there aren't enough defunct solar panels to make recycling them economically attractive. Solar energy is ever-growing: Under California law, the RPS requires 33% of all of California's energy to be generated from eligible renewable energy resources, including solar energy, by 2020. In May 2015, the Public Utilities Commission reported that California's three largest Independent Utility Operators (IOU) collectively served 22.7% of their 2013 retail electricity sales with renewable power, and the IOUs are on track to achieve the 2020 RPS mandate. Much of that can be attributed to solar. As of December 2014, 8,544 megawatts of cumulative solar energy have been installed in California. There were 642 megawatts of solar energy installed in California in the third quarter of 2014, which marks a 37% increase over the same quarter last year. Governor Brown made statements in his January 5, 2015, Inaugural Address proposing to increase, from one-third to 50 percent our SB 489 Page 6 electricity derived from renewable sources, and there are multiple pending legislative proposals to codify that proposal. If an increase in the RPS mandate is successful, there will likely be a significant uptick in solar panel installations and, therefore, eventual solar panel disposal. Universal waste: Under current law, it is illegal to dispose of hazardous waste in the garbage, down storm drains, or onto the ground. Universal waste, which is regulated by DTSC (California Code of Regulations (CCR), Title 22, Division 4.5, Chapter 23), comes primarily from consumer products containing mercury, lead, cadmium and other substances that are hazardous to human health and the environment. Examples of universal waste are batteries, fluorescent tubes, and many electronic devices. These items cannot be discarded in household trash or disposed of in landfills. Are solar panels hazardous? End-of-life disposal of solar products in the United States is governed by RCRA, and state policies that govern waste. To be governed by RCRA, solar panels must be classified as hazardous waste. To be classified as hazardous, panels must fail to pass the Toxicity Characteristics Leach Procedure (TCLP) test. Most solar panels pass the TCLP test, and thus are classified as non-hazardous and are not federally regulated. However, the production of solar panels involves toxic heavy metals, such as cadmium, copper, lead, and selenium; therefore, some solar panels are likely to exhibit the characteristic of toxicity that have adverse environmental and public health effects. Current regulatory thinking on governing solar panel disposal: Given that solar panels can be recycled and that portions of the panels can be reclaimed for use in new panels, or used in other SB 489 Page 7 products such as fiberglass, DTSC proposed amending its regulations (CCR, Title 22, Division 4.5, Chapter 10 (commencing with §66260.10), Chapter 11 (commencing with §66261.1), and Chapter 23 (commencing with §66273.1)) to manage solar panels that are a hazardous waste as a universal waste, stating: "In 2009, DTSC became aware that some [solar panels] may be hazardous waste by California standards for non-RCRA hazardous waste (i.e., [solar panels] that fail California's hazardous waste criteria for toxicity). DTSC conducted further research and found that few [solar panels] on the market had undergone hazardous waste testing. However, available information indicates that most [solar panels] do not fail the federal hazardous waste criteria for toxicity (i.e., are not federally-regulated RCRA hazardous waste). If such [solar panels] then fail California hazardous waste criteria, then those [solar panels] would be non-RCRA hazardous waste. Therefore, based on available information on hazardous waste testing to date, DTSC believes that some [solar panels] would likely only be hazardous waste under California hazardous waste criteria for toxicity. Thus, these non-RCRA hazardous waste [solar panels] would be subject to full hazardous waste management standards when handled in California." However, on October 8, 2013, the Office of Administrative Law (OAL) disapproved the proposed regulations citing the expired statute authorizing DTSC to adopt new universal waste regulations. After consideration of OAL's concerns, DTSC decided to withdraw the proposed solar panel regulations package. DTSC plans to pursue obtaining authorization from the US EPA to implement the federal Universal Waste Regulations in California-a process that was initiated by DTSC in 2003, but was never completed. Upon completion of the application for RCRA Authorization and approval by the United States Environmental Protection Agency, DTSC intends to reintroduce this rulemaking for Proposed Management Standards for Hazardous Waste Photovoltaic Modules. SB 489 Page 8 Extended producer responsibility (EPR): This bill is essentially calling on solar panel manufacturers to establish an EPR framework for spent solar panels. CalRecycle defines EPR as a strategy to place a shared responsibility for end-of-life product management on the producers, and all entities involved in the product chain, instead of the general public; while encouraging product design changes that minimize a negative impact on human health and the environment at every stage of the product's lifecycle. This allows the costs of treatment and disposal to be incorporated into the total cost of a product. It places primary responsibility on the producer, or brand owner, who makes design and marketing decisions. It also creates a setting for markets to emerge that truly reflect the environmental impacts of a product, and to which producers and consumers respond. By shifting costs and responsibilities of product disposal to producers and others who directly benefit, EPR provides an incentive to eliminate waste and pollution through product design changes. Related legislation: 1) SB 1020 (Monning, 2014) would have designated solar panels with hazardous waste properties to be classified as universal waste. The bill also would have required producers of solar panels to have a take-back and recycling plan. That bill was held by the author in the Senate Environmental Quality. SB 489 Page 9 2) AB 645 (Williams), which is pending in the Senate Rules Committee, would increase the State's RPS from 33% to 50% by 2030. 3) SB 350 (de Léon), which is pending the Assembly Rules Committee, would also increase the State's RPS from 33% to 50% by 2030. REGISTERED SUPPORT / OPPOSITION: Support ACR Solar International Corp. California Product Stewardship Council Californians Against Waste Central Contra Costa Solid Waste Authority (dba RecycleSmart) Los Angeles County Solid Waste Management Committee / Integrated waste Management Task Force Rural County Representatives of California Sierra Club California SB 489 Page 10 Silicon Valley Toxics Coalition Solar Energy Industries Association SolarCity Solid Waste Association of North America Opposition None on file Analysis Prepared by:Paige Brokaw / E.S. & T.M. / (916) 319-3965