BILL NUMBER: SB 1100	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Corbett

                        FEBRUARY 17, 2010

   An act to add Article 3 (commencing with Section 42450.1) to
Chapter 8 of Part 3 of Division 30 of the Public Resources Code,
relating to product stewardship.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1100, as introduced, Corbett. Product stewardship: household
batteries.
   The California Integrated Waste Management Act of 1989,
administered by the Department of Resources Recycling and Recovery,
is required to reduce, recycle, and reuse solid waste generated in
the state to the maximum extent feasible in an efficient
cost-effective manner to conserve water, energy, and other natural
resources.
   This bill would require the department by January 1, 2012, to
establish a baseline collection rate for the amount of household
batteries that are discarded and subsequently collected. The bill
would provide a procedure for determining the collection rate
applicable commencing January 1, 2013.
   The bill would require, by September 30, 2011, a producer or the
product stewardship organization created by one or more producers of
a covered product to submit a product stewardship plan to the
department, which would be required to include specified elements,
including performance goals and product goals. By January 1, 2012,
the department would be required to review and either approve or
disapprove the product stewardship plan submitted to the department.
   The bill would prohibit a producer or retailer, on and after
January 1, 2012, from selling a household battery unless the producer
or product stewardship organization of the household battery has
submitted a plan to the department that is approved by the
department. The act would require a producer of a household battery
to collect the household battery pursuant to the product stewardship
plan and to meet the performance goals included in the product
stewardship plan.
   Each producer or product stewardship organization implementing a
product stewardship plan would be required to prepare and submit to
the department an annual report describing the activities carried out
pursuant to the product stewardship plan and the department would be
required to adopt regulations, by January 1, 2012, specifying the
information required to be included in the annual product stewardship
plan report.
   A producer or product stewardship organization submitting a
product stewardship plan would be required to pay the department an
unspecified fee when submitting the plan for review and approval and
to pay an annual administrative fee, determined as an unspecified
percentage of the costs of implementing the plan. The bill would
provide for the imposition of administrative civil penalties upon a
producer who does not comply with the bill's requirements or a
producer or retailer selling household batteries in violation of the
bill. The bill would create the Household Battery Stewardship Account
in the existing Integrated Waste Management Fund and would require
that the administrative fees be deposited into that account and that
the penalties be deposited into the Household Battery Stewardship
Penalty Subaccount that the bill would create in that account. The
bill would authorize the fees and penalties to be expended, upon
appropriation by the Legislature, to cover the department's program
implementation costs and as incentives to enhance recyclability and
redesign efforts and to reduce environmental and safety impacts of
household batteries.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) In early 2006, all household batteries were classified by the
state as universal waste and prohibited from being disposed of in
solid waste landfills.
   (b) Effective July 1, 2006, state law prohibited most retailers
from selling rechargeable batteries in the state unless they have a
system in place for collecting used rechargeable batteries from
consumers.
   (c) Approximately 80 percent of batteries sold in this state are
alkaline batteries, and are not covered under the retail take-back
requirements.
   (d) Local governments throughout the state are responsible for the
collection and management of household batteries, and to manage this
hazardous waste, these local governments and taxpayers pay an
average of eight hundred dollars ($800) per ton, or tens of millions
of dollars each year.
   (e) Because other types of recycling programs have proven to have
limited success, state and regional governments in Europe and Canada
have adopted producer responsibility programs to redirect the
responsibility for the end-of-life management of discarded hazardous
and hard to manage products from local governments and retailers
primarily to producers.
   (f) The former California Integrated Waste Management Board
adopted an overall Framework for an Extended Producer Responsibility
(EPR) guidance document as a policy priority in January 2008.
   (g) The program established by this act is intended to reduce
costs to local government, to harmonize the state's producer
responsibility obligations with other national and international
programs, and to enhance the protection of public health and
environment through safer product design, use and end-of-life
management.
  SEC. 2.  Article 3 (commencing with Section 42450.1) is added to
Chapter 8 of Part 3 of Division 30 of the Public Resources Code, to
read:

      Article 3.  Product Stewardship for Household Batteries


   42450.1.  For purposes of this article, and unless the context
otherwise requires, the definitions in this article govern the
construction of this article.
   (a) "Brand" means a name, symbol, word, or mark that identifies a
household battery, rather than its components, and attributes the
household battery to the owner or licensee of the brand as the
producer.
   (b) "Collection rate" means a quantitative measure that
establishes the amount of household batteries required to be
collected by the household battery stewardship system for that
household battery by an established date. The collection rate is
included as a component of the performance goals for a household
battery.
   (c) "Department" means the Department of Resources Recycling and
Recovery.
   (d) "Household battery" has the same meaning as defined in
subdivision (c) of Section 42450.
   (e) "Performance goal" means the collection rate of household
batteries and may include, but is not limited to, the reuse and
recycling rates established by the household battery stewardship plan
for that household battery.
   (f) "Producer" shall be determined, with regard to a household
battery that is sold, offered for sale, or distributed in the state,
as meaning one of the following:
   (1) The person who manufactures the household battery and who
sells, offers for sale, or distributes that household battery in the
state under that person's own name or brand.
   (2) If there is no person who sells, offers for sale, or
distributes the household battery in the state under the person's own
name or brand, the producer of the household battery is the owner or
licensee of a trademark or brand under which the household battery
is sold or distributed in the state, whether or not the trademark is
registered.
   (3) If there is no person who is a producer of the household
battery for purpose of paragraphs (1) and (2), the producer of that
household battery is the person who imports the household battery
into the state for sale or distribution.
   (g) "Product stewardship" means requiring the producer of a
household battery, and all other entities involved in the
distribution chain of a household battery, to share in the
responsibility of reducing the life cycle impact of the household
battery and its packaging, including requiring the producer who makes
design and marketing decisions for the household battery to bear the
primary responsibility for this reduction.
   (k) "Product stewardship organization" means an organization
appointed by one or more producers to act as an agent on behalf of
the producer to design, submit, and administer a household battery
stewardship plan pursuant to this article.
   (l) "Product stewardship plan" or "plan" means a plan written by
an individual producer or a household battery stewardship
organization, on behalf of one or more producers, that includes all
of the information required by Section 42450.4.
   (m) "Product goal" means those qualitative or quantitative goals
determined by the producer to measure improvements that reduce the
life cycle impacts of a household battery.
   (n) "Recycling rate" means a quantitative measure that establishes
the amount of collected household batteries that is recycled as
compared to the total amount of household batteries that is
collected, including the amount of the household batteries that is
discarded for reuse, energy recovery, or safe disposal.
   (o) "Reuse rate" means a quantitative measure that establishes the
amount of collected household batteries that is reused as compared
to the total amount of household batteries that is collected,
including the amount of household batteries that is discarded by
recycling, energy recovery, or safe disposal.
   (p) "Reporting period" means the period commencing January 1 and
ending on December 31 of the same calendar year.
   (q) "Retailer" means a person that offers new household batteries
in a retail sale, as defined in Section 6007 of the Revenue and
Taxation Code, including a retail sale at retail through any means,
including remote offerings such as sales outlets, catalogs, or an
Internet Web site.
   (r) "Sell" or "sales" means any transfer of title of a household
battery for consideration, including a remote sale conducted through
a sale outlet, catalog, or Internet Web site or similar electronic
means, but does not include a lease.
   42450.2.  On or before January 1, 2012, the department shall
establish a baseline collection rate for the amount of household
batteries that is discarded and subsequently collected, based on
existing collection data.
   42450.3.   (a) The collection rate for a household battery shall
be determined in the following manner:
   (1) For the calendar year commencing January 1, 2013, the
collection rate shall be 5 percent more than the baseline collection
rate determined pursuant to Section 42450.2.
   (2) On and after January 1, 2014, the collection rate for
household batteries shall increase by no less than 5 percent annually
until a 95 percent collection rate is reached.
   (b) A producer may petition the department for an adjustment to
the collection rate. The department may grant an adjustment to the
collection rate only if the department determines there are
documented exigent circumstances that are beyond the control of the
producer or household battery stewardship organization.
   42450.4.  (a) On or before September 30, 2011, a producer or the
household battery stewardship organization of a household battery
shall submit a household battery stewardship plan to the department.
A household battery stewardship organization created pursuant to this
section shall be open for participation by all producers of a
household battery.
   (b) A producer, group of producers, or household battery
stewardship organization shall consult with stakeholders during the
development of the household battery stewardship plan, including
soliciting stakeholder comments and responding to stakeholder
comments prior to submitting the household battery stewardship plan.
   (c) Each household battery stewardship plan for a covered
individual household battery shall address the environmental impacts
of a household battery over the entire life cycle of that household
battery, including household battery design, manufacture, and
distribution, and the collection, transportation, reuse, recycling,
and final disposition of discarded household batteries, in accordance
with this article. The plan shall include, at a minimum, all of the
following elements:
   (1) Contact information for all participating producers.
   (2) A description of the brands of the household batteries covered
by the plan.
   (3) Performance goals, including a detailed description of how the
performance goals will be achieved and how results will be measured
and including both of the following:
   (A) The collection rate shall be included as a performance goal
for a household battery.
   (B) The reuse rate and recycling rate for that household battery
shall be included in the performance goal.
   (4) An overview of the roles and responsibilities of key players
along the distribution chain for that household battery.
   (5) Financing methods for the household battery stewardship plan.
   (6) Strategies for managing and reducing the life cycle impacts of
the household battery, steps that will be taken to ensure
environmentally sound management, and how impacts will be tracked
over time to show continual improvement.
   (7) Education and outreach activities.
   (8) A description of the consultation process used to consult with
affected stakeholders regarding the household battery stewardship
plan.
   (9) A description of product goals, including, but is not limited
to, household battery designing and materials content, manufacturing,
packaging, distribution, and end-of-life management goals. The
product goals shall address the use of virgin material in the
manufacture of the household battery, the impact upon, or use of,
water or energy by the household battery, the use of, or generation
of hazardous substances, by the household battery, the carbon
footprint of the household battery, the household battery's
longevity, the recycled content of the household battery, and
recyclability, where applicable.
   (10) Procedures for notifying all retailers engaged in the sale of
that household battery.
   42450.5.  (a) On or before January 1, 2012, the department shall
review any plan submitted to the department and either approve or
disapprove the household battery stewardship plan submitted to the
department. If the department does not approve the plan, the
department shall notify the producer or organization that submitted
the plan and the producer or organization shall revise and resubmit
the disapproved household battery stewardship plan within 30 days
after receiving the notification.
   (b) All household battery stewardship plans submitted to the
department shall be available to the public on the department's
Internet Web site.
   (c) A producer shall notify the department 30 days before
instituting a significant or material change to a household battery
stewardship plan.
   (d) The household battery stewardship plan shall be implemented
upon the approval of the department by the producer or the household
battery stewardship organization that submitted the plan.
   42450.6.  On and after January 1, 2012, a producer or retailer
shall not offer a household battery for sale in this state or offer a
household battery for promotional purposes in this state unless the
producer or household battery stewardship organization of the
household battery has submitted a household battery stewardship plan
to the department pursuant to Section 42450.4 and the household
battery stewardship plan is approved by the department pursuant to
Section 42450.5 and is being implemented pursuant to Section 42450.7.

   42450.7.  A producer of a household battery shall do all of the
following when implementing this chapter, including when implementing
an approved household battery stewardship plan:
   (a) Collect the individual household battery to be reused or
recycled pursuant to the household battery stewardship plan for the
household battery submitted by the producer or household battery
stewardship organization pursuant to Section 42450.4, and approved by
the department pursuant to Section 42450.5.
   (b) Meet the performance goals included in household battery
stewardship plan, including achieving the collection rate established
pursuant to Section 42450.3.
   (c) Provide collection services, in accordance with Section
42450.8, for the household battery that does not charge a fee at the
time when the household battery is collected for either recycling or
disposal.
   (d) Pay all administrative and operational costs associated with
the household battery stewardship plan, including the costs of
collection, transportation, and recycling or disposal, or both, of
the household battery, including the amount determined pursuant to
Section 42450.10.
   (e) Submit the annual report required by Section 42450.9.
   42450.8.  A household battery shall be handled and recycled, or,
if not feasible to be recycled, disposed of, in accordance with all
state and federal laws and regulations and local ordinances and
regulations, including, but not limited to, any law, regulation, or
ordinance that regulates hazardous waste.
   42450.9.  (a) On or before January 1, 2012, the department shall
adopt regulations specifying the information required to be included
in annual household battery stewardship plan reports. Notwithstanding
subdivision (b), the department may include, in those regulations,
alternative reporting requirements for purposes of those annual
reports.
   (b) Beginning one year after a household battery stewardship plan
is approved or no later than January 1, 2013, whichever date is
earlier, and every subsequent year thereafter, each producer or
stewardship organization implementing a household battery stewardship
plan shall prepare and submit to the department an annual report
describing the activities carried out pursuant to the household
battery stewardship plan during the previous reporting period. The
report shall include all of the following, unless required otherwise
by the department pursuant to the regulations adopted pursuant of
subdivision (a), including, but not limited to, all of the following:

   (1) Whether the producer or household battery stewardship
organization, in implementing the plan, attained the performance
goals for the household battery, and if the performance goals were
not met, what actions the producer or household battery stewardship
organization will take during the next reporting period to attain
those performance goals.
   (2) Whether the producer or household battery stewardship
organization, in implementing the plan, attained the household
battery goals for the household battery, and if the household battery
goals were not met, what actions the producer or stewardship
organization will take during the next reporting period to achieve
those household battery goals.
   (3) A description of the outreach and education activities
undertaken during the reporting period to inform consumers and other
stakeholders of the collection opportunities and safe household
battery handling described in the household battery stewardship plan.

   (4) A description of those areas in the state that have been
served by the household battery stewardship plan and any barriers to,
or opportunities for, increased coverage in the future.
   (5) A description of the actions undertaken to manage and reduce
the life cycle impacts of the household battery.
   (6) The total cost to implement the household battery stewardship
plan and a description of any economic or job impacts to
stakeholders.
   (c) The department shall review a report submitted pursuant to
this section and shall approve the report if the department
determines the report contains the information required by this
section.
   (d) The department shall make all reports submitted to the
department pursuant to this section available to the public on the
department's Internet Web site.
   42450.10.  (a) The producer or household battery stewardship
organization submitting a household battery stewardship plan shall
pay the department an administrative fee in the amount of ____dollars
($____) when the plan is submitted for review and approval and
thereafter pay an annual administrative fee of ____percent of the
household battery stewardship program costs as reported under
paragraph (6) of subdivision (b) of Section 42450.9.
   (b) The total amount of annual fees collected pursuant to this
section shall not exceed the amount necessary to recover costs
incurred by the department in connection with the administration and
enforcement of the requirements of this article.
   42450.11.  (a) The Household Battery Stewardship Account and the
Household Battery Stewardship Penalty Subaccount are hereby
established in the Integrated Waste Management Fund.
   (b) All fees collected pursuant to this article shall be deposited
in the Household Battery Stewardship Account and may be expended by
the department, upon appropriation by the Legislature, to cover the
department's costs to implement this article.
   (c) All penalties collected pursuant to this article shall be
deposited in the Household Battery Stewardship Penalty Subaccount and
may be expended by the department, upon appropriation by the
Legislature, to cover the department's costs to implement this
article.
   (d) All funds collected may be expended as incentives to enhance
reuse, recyclability, and redesign efforts and to reduce
environmental and safety impacts of household batteries.
   42450.12.  (a) If, after holding a public hearing, the department
finds that a producer has failed to make a good faith effort to
comply with this article, including, but not limited to, failing to
submit a plan pursuant to Section 42450.4, the department shall issue
a compliance order with a schedule for achieving compliance.
   (b) If, after issuing an order and schedule for compliance
pursuant to subdivision (c), the department finds that the producer
has failed to make a good faith effort to comply with this article,
the department may impose an administrative civil penalty of ten
thousand dollars ($10,000) per day until the producer achieves
compliance.
   (c) For purposes of this section, "good faith effort" means all
reasonable and feasible efforts to by a producer towards implementing
the requirements of this article, including, but not limited to,
meeting the performance goals specified in the plan.
   42450.13.  (a) In addition to the penalty specified in Section
42450.12, the department may impose an administrative civil penalty
of ten thousand dollars ($10,000) per day against a producer or
retailer who violates Section 42450.6.
   (b) Prior to enforcing any penalty pursuant to this section, the
department shall issue a compliance order to the producer or retailer
selling the household battery allowing 30 days from the date of the
compliance order to cease sales of the household battery.
   42450.14.  (a) The department, or its designee, may inspect,
audit, or require and review third-party audits of producers,
household battery stewardship organizations, and service providers,
including collectors and recyclers, that are utilized to fulfill the
requirements of a household battery stewardship plan.
   (b) For purposes of this section, a "service provider" means any
person who is authorized to perform an action to implement the
household battery stewardship plan with regard to the collection,
recycling, reuse, or disposal of a household battery, but does not
include the consumer of the household battery.
   42450.15.  The department shall adopt regulations for the
imposition of administrative civil penalties pursuant to this
article.
   42450.16.  This article does not limit, supersede, duplicate, or
otherwise conflict with the authority of the Department of Toxic
Substances Control under Section 25257.1 of the Health and Safety
Code to fully implement Article 14 (commencing with Section 25251) of
Chapter 6.5 of Division 20 of the Health and Safety Code, including
the authority of the department to include household batteries in its
household battery registry.