BILL ANALYSIS Ó SB 489 Page 1 SENATE THIRD READING SB 489 (Monning) As Amended July 16, 2015 Majority vote SENATE VOTE: 35-0 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Environmental |7-0 |Alejo, Dahle, | | |Safety | |Gallagher, Gonzalez, | | | | |Gray, McCarty, Ting | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |16-0 |Gomez, Bigelow, | | | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Daly, Eggman, | | | | |Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Jones, Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | SB 489 Page 2 ------------------------------------------------------------------ SUMMARY: Authorizes photovoltaic modules (known as solar panels) to be managed as universal waste. Specifically, this bill: 1)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. 2)States the intent of the Legislature to encourage the photovoltaic module industry 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 recovery and recycling of photovoltaic modules. 3)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. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill will likely result in potential one-time cost for DTSC of approximately $27,000 (Hazardous Waste Control Account) to prepare the documents required to resubmit the universal waste regulations for Photovoltaic (PV) modules. COMMENTS: Need for this bill: According to the author, "PV modules, commonly referred to as solar panels, have varying useful lives SB 489 Page 3 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 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." SB 489 Page 4 Solar energy is ever-growing: Under California law, the California Renewable Portfolio Standard (RPS) requires 33% of all of California's energy to be generated from eligible renewable energy resources, including solar energy, by 2020. Governor Brown made statements in his January 5, 2015, Inaugural Address proposing to increase, from one-third to 50% our 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. 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 products such as fiberglass, DTSC proposed amending its regulations to manage solar panels that are a hazardous waste as a universal waste. 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 United States 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 5 Extended producer responsibility (EPR): This bill is essentially calling on solar panel manufacturers to establish an EPR framework for spent solar panels. 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. Analysis Prepared by: Paige Brokaw / E.S. & T.M. / (916) 319-3965 FN: 0001480