Bill Text: CA AB2 | 2023-2024 | Regular Session | Amended


Bill Title: Recycling: solar photovoltaic modules.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2023-09-01 - In committee: Held under submission. [AB2 Detail]

Download: California-2023-AB2-Amended.html

Amended  IN  Senate  June 28, 2023
Amended  IN  Senate  June 22, 2023
Amended  IN  Assembly  May 18, 2023
Amended  IN  Assembly  April 26, 2023
Amended  IN  Assembly  March 16, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2


Introduced by Assembly Member Ward

December 05, 2022


An act to amend Sections 42463, 42464, 42464.2, 42476, and 42479 of, and to add Chapter 8.7 (commencing with Section 42499.6) to Part 3 of Division 30 of, the Public Resources Code, relating to recycling, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 2, as amended, Ward. Recycling: solar photovoltaic modules.
The Electronic Waste Recycling Act of 2003 (act) requires a retailer selling a covered electronic device in this state to collect from a consumer at the time of retail sale a covered electronic waste recycling fee or a covered battery-embedded waste recycling fee, as specified. The act defines “covered electronic device” to include certain video display devices and battery-embedded products. The act requires all charges collected pursuant to the act to be deposited into specified subaccounts within the Electronic Waste Recovery and Recycling Account, and outlines certain other requirements related to the establishment, adjustment, and administration of the charge. Moneys in the subaccounts are continuously appropriated for specified purposes, including, but not limited to, paying covered electronic waste recycling fee refunds and making electronic waste recovery and recycling payments. Moneys in the account may be expended, upon appropriation by the Legislature in the annual Budget Act, for other specified purposes, including the administration of the act by the Department of Resources Recycling and Recovery (CalRecycle) and the Department of Toxic Substances Control (DTSC) and to provide funding to DTSC to implement and enforce the hazardous waste control laws as they relate to covered electronic devices.
Existing law incorporates the requirements and other provisions of the act by reference as requirements and provisions of the hazardous waste control laws. The act also expressly authorizes DTSC to enforce the act, and all regulations adopted pursuant to the act, through the hazardous waste control laws. A violation of the hazardous waste control laws is a crime.
This bill would, among other things, expand the definition of “covered electronic device” to include a “customer-owned solar PV module,” as defined, thereby expanding the scope of the act to include covered solar photovoltaic (PV) module products, for limited purposes, as provided. The bill would also require, on or before October 1, 2026, and on or before October 1 each year thereafter, CalRecycle to establish a covered solar PV recycling fee based on the reasonable regulatory costs to administer covered electronic waste recycling. The bill would require the charge to be imposed upon a consumer or a service provider serving the consumer for the purchase of a new or refurbished covered solar PV module product. The bill would also require the charge to be adjusted annually based on the California Consumer Price Index. The bill would create the Covered Solar PV Module Recycling Fee Subaccount as a continuously appropriated fund in the Electronic Waste Recovery and Recycling Account. Because the funds deposited to the Covered Solar PV Module Recycling Fee Subaccount would be a new source of funds in the continuously appropriated subaccount within the continuously appropriated Electronic Waste Recovery and Recycling Account, the bill would make an appropriation. By expanding the scope of the act to make it applicable to covered solar PV module products, the bill would expand the scope of a crime, thereby imposing a state-mandated local program.

Existing law requires a manufacturer of a covered electronic device to maintain and keep accessible for a minimum of 3 years all records required to be kept or submitted pursuant to the act and, upon request, provide those records to CalRecycle. The act requires all reports and records provided to CalRecycle pursuant to the act to be provided under penalty of perjury.

This bill, by expanding the definition of “covered electronic device,” would impose these requirements on manufacturers of covered solar PV module products. By expanding the scope of persons subject to the act’s requirements and by expanding the scope of the crime of perjury, the bill would expand the scope of a crime, thereby imposing a state-mandated local program.

Beginning January 1, 2028, the bill would require a solar photovoltaic module, that is not a customer-owned solar PV module, to be included in a plan that describes how the module will be managed at the end of its useful life, who is responsible for managing it, and how it will be recycled, refurbished, or reused.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 42463 of the Public Resources Code is amended to read:

42463.
 For purposes of this chapter, the following terms have the following meanings, unless the context clearly requires otherwise:
(a) “Account” means the Electronic Waste Recovery and Recycling Account created in the Integrated Waste Management Fund pursuant to Section 42476.
(b) “Authorized collector” means any of the following:
(1) A city, county, or district that collects covered electronic devices.
(2) A person or entity that is required or authorized by a city, county, or district to collect covered electronic devices pursuant to the terms of a contract, license, permit, or other written authorization.
(3) A nonprofit organization that collects or accepts covered electronic devices.
(4) A manufacturer or agent of the manufacturer that collects, consolidates, and transports covered electronic devices for recycling from consumers, businesses, institutions, and other generators.
(5) An entity that collects, handles, consolidates, and transports covered electronic devices and has filed applicable notifications with DTSC pursuant to Chapter 23 (commencing with Section 66273.1) of Division 4.5 of Title 22 of the California Code of Regulations.
(c) “CalRecycle” means the Department of Resources Recycling and Recovery.
(d) “CDTFA” means the California Department of Tax and Fee Administration.
(e) “Consumer” means a person who purchases a new or refurbished covered electronic device in a transaction that is a retail sale or in a transaction to which a use tax applies pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(f) (1) “Covered battery-embedded product” means a product containing a battery from which the battery is not designed to be easily removed from the product by the user of the product with no more than commonly used household tools.
(2) “Covered battery-embedded product” does not include any of the following:
(A) A medical device, as defined in Section 321(h) of Title 21 of the United States Code, if either of the following applies:
(i) It is a Class I device as defined in Section 360c of Title 21 of the United States Code, and either of the following applies:
(I) It is a device described in Section 414.202 of Title 42 of the Code of Federal Regulations.
(II) Either of the following applies:
(ia) The device is predominantly used in a health care setting by a provider.
(ib) The device is predominantly prescribed by a health care provider.
(ii) It is a Class II or Class III device as defined in Section 360c of Title 21 of the United States Code.
(B) A covered electronic device, as defined in subparagraph (A) of paragraph (1) of subdivision (g).
(C) An energy storage system, as defined in subdivision (a) of Section 2835 of the Public Utilities Code.
(D) An electronic nicotine delivery system, as defined in Section 375(7) of Title 15 of the United States Code.
(3) CalRecycle may consult with other state agencies to determine if a product meets the definition of a covered battery-embedded product.
(4) “Covered battery-embedded waste recycling fee” means the fee imposed for covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) pursuant to Article 3 (commencing with Section 42464).
(g) (1) “Covered electronic device” means any of the following:
(A) Except as provided in paragraph (2), a video display device containing a screen greater than four inches, measured diagonally, that is identified in the regulations adopted by DTSC pursuant to subdivision (c) of Section 25214.10.1 of the Health and Safety Code.
(B) Any covered battery-embedded product, as defined in subdivision (f).
(C) A customer-owned solar PV module, as defined in subdivision (k). Notwithstanding subdivisions (h) and (i), a customer-owned solar PV module is only covered electronic waste for purposes of subdivisions (c) and (d) of Section 42464, Section 42464.2, subdivision (a) of Section 42476, and subdivision (a) of Section 42479.
(2) “Covered electronic device,” as defined in subparagraph (A) of paragraph (1), does not include any of the following:
(A) A video display device that is a part of a motor vehicle, as defined in Section 415 of the Vehicle Code, or any component part of a motor vehicle assembled by, or for, a vehicle manufacturer or franchised dealer, including replacement parts for use in a motor vehicle.
(B) A video display device that is contained within, or a part of a piece of industrial, commercial, or medical equipment, including monitoring or control equipment.
(C) A video display device that is contained within a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air-conditioner, dehumidifier, or air purifier.
(D) An electronic device, on and after the date that it ceases to be a covered electronic device pursuant to subdivision (f) of Section 25214.10.1 of the Health and Safety Code.
(h) “Covered electronic waste” or “covered e-waste” means a covered electronic device that is discarded.
(i) “Covered electronic waste recycling fee” or “covered e-waste recycling fee” means the fee imposed for covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) pursuant to Article 3 (commencing with Section 42464).
(j) “Covered electronic waste recycler” or “covered e-waste recycler” means any of the following:
(1) A person who engages in the manual or mechanical separation of covered electronic devices to recover components and commodities contained therein for the purpose of reuse or recycling.
(2) A person who changes the physical or chemical composition of a covered electronic device, in accordance with the requirements of Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and the regulations adopted pursuant to that chapter, by deconstructing, size reduction, crushing, cutting, sawing, compacting, shredding, or refining for purposes of segregating components, for purposes of recovering or recycling those components, and who arranges for the transport of those components to an end user.
(3) A manufacturer who meets any conditions established by this chapter and Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code for the collection or recycling of covered electronic waste.
(k) “Customer-owned solar PV module” means a solar photovoltaic module that is owned by the customer being directly served by that solar photovoltaic module and not otherwise covered by a service an agreement that includes a plan described in Section 42499.6.
(l) “Director” means the Director of Resources Recycling and Recovery.
(m) “Discarded” has the same meaning as set forth in subdivision (b) of Section 25124 of the Health and Safety Code.
(n) “DTSC” means the Department of Toxic Substances Control.
(o) “Electronic waste recovery payment” means an amount established and paid by CalRecycle pursuant to Section 42477.
(p) “Electronic waste recycling payment” means an amount established and paid by CalRecycle pursuant to Section 42478.
(q) “Hazardous material” has the same meaning as set forth in Section 25501 of the Health and Safety Code.
(r) (1) (A) “Manufacturer” means a person who manufactures a covered electronic device and who owns or is the exclusive licensee of the brand or trademark under which the covered electronic device is sold, offered for sale, or distributed in the state.
(B) If there is no person in the state who is the manufacturer for purposes of subparagraph (A), the manufacturer of the covered electronic device is the owner or licensee of a brand or trademark under which a covered electronic device is sold, offered for sale, or distributed in the state.
(C) If there is no person in the state who is the manufacturer for purposes of subparagraph (A) or (B), the manufacturer of the covered electronic device is the person who sells, offers for sale, or distributes the covered electronic device into the state for sale, offer for sale, or distribution in the state.
(2) For purposes of this chapter, the sale of a covered electronic device shall be deemed to occur in the state if the covered electronic device is delivered to the purchaser in the state.
(s) “Person” means an individual, trust firm, joint stock company, business concern, and corporation, including, but not limited to, a government corporation, partnership, limited liability company, and association. Notwithstanding Section 40170, “person” also includes a city, county, city and county, district, commission, the state or a department, agency, or political subdivision thereof, an interstate body, and the United States and its agencies and instrumentalities to the extent permitted by law.
(t) “Recycling” has the same meaning as set forth in subdivision (a) of Section 25121.1 of the Health and Safety Code.
(u) (1) “Refurbished,” when used to describe a covered electronic device, other than one defined in subparagraph (C) of paragraph (1) of subdivision (g), means a device that the manufacturer has tested and returned to a condition that meets factory specifications for the device, has repackaged, and has labeled as refurbished.
(2) “Refurbished,” when used to describe a covered electronic device, as defined in subparagraph (C) of paragraph (1) of subdivision (g), means a device that the manufacturer or a third party has tested and returned to a condition that meets factory specifications for the device and has been labeled as refurbished.
(v) “Retailer” means a person who makes a retail sale of a new or refurbished covered electronic device. “Retailer” includes a manufacturer of a covered electronic device who sells that covered electronic device directly to a consumer through any means, including, but not limited to, a transaction conducted through a sales outlet, catalog, or the Internet, or any other similar electronic means.
(w) (1) “Retail sale” has the same meaning as set forth in Section 6007 of the Revenue and Taxation Code.
(2) “Retail sale” does not include the sale of a covered electronic device that is temporarily stored or used in the state for the sole purpose of preparing the covered electronic device for use thereafter solely outside the state, and that is subsequently transported outside the state and thereafter used solely outside the state.
(x) “Vendor” means a person that makes a sale of a covered electronic device for the purpose of resale to a retailer who is the lessor of the covered electronic device to a consumer under a lease that is a continuing sale and purchase pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(y) “Video display device” means an electronic device with an output surface that displays, or is capable of displaying, moving graphical images or a visual representation of image sequences or pictures, showing a number of quickly changing images on a screen in fast succession to create the illusion of motion, including, if applicable, a device that is an integral part of the display, in that it cannot be easily removed from the display by the consumer, that produces the moving image on the screen. A video display device may use, but is not limited to, a cathode ray tube (CRT), liquid crystal display (LCD), gas plasma, digital light processing, or other image projection technology.

SEC. 2.

 Section 42464 of the Public Resources Code is amended to read:

42464.
 (a) On and after January 1, 2005, or as otherwise provided by Section 25214.10.1 of the Health and Safety Code, a consumer shall pay a covered electronic waste recycling fee upon the purchase of a new or refurbished covered electronic device, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463 in the following amounts:
(1) Six dollars ($6) for each covered electronic device, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, with a screen size of less than 15 inches measured diagonally.
(2) Eight dollars ($8) for each covered electronic device, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, with a screen size greater than or equal to 15 inches but less than 35 inches measured diagonally.
(3) Ten dollars ($10) for each covered electronic device, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, with a screen size greater than or equal to 35 inches measured diagonally.
(b) (1) On and after January 1, 2026, a consumer shall pay a covered battery-embedded waste recycling fee in an amount determined by CalRecycle pursuant to paragraph (3) upon the purchase of a new or refurbished covered electronic device, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.
(2) Beginning on August 1, 2028, CalRecycle, in collaboration with DTSC, may establish more than one covered electronic waste recycling fee for covered battery-embedded waste recycling fee for covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, based on categories of covered battery-embedded products, as determined by CalRecycle in collaboration with DTSC.
(3) On or before October 1, 2025, and on or before October 1 each year thereafter, CalRecycle shall establish a covered electronic waste recycling fee based on the reasonable regulatory costs to administer covered electronic waste recycling. The fee shall be imposed upon the purchase of a new or refurbished covered electronic device, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463. The fee shall go into effect on January 1 of each calendar year after the fee is adopted. The maximum fee shall be adjusted annually based on the California Consumer Price Index as compiled and reported by the Department of Industrial Relations.
(c) (1) On and after January 1, 2028, a consumer or a service provider serving the consumer shall pay a covered solar PV recycling fee in an amount determined by CalRecycle pursuant to paragraph (2) upon the purchase of a new or refurbished covered electronic device, as defined in subparagraph (C) of paragraph (1) of subdivision (g) of Section 42463.
(2) On or before October 1, 2026, and on or before October 1 of each year thereafter, CalRecycle shall establish a covered solar PV recycling fee based on the reasonable regulatory costs to administer covered electronic waste recycling. The fee shall apply to the purchase of a new or refurbished covered electronic device, as defined in subparagraph (C) of paragraph (1) of subdivision (g) of Section 42463. The fee shall go into effect on January 1 of the year after the fee is adopted. The maximum fee shall be adjusted annually based on the California Consumer Price Index as compiled and reported by the Department of Industrial Relations.
(d) Except as provided in subdivision (f), a retailer shall collect from the consumer a covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, at the time of the retail sale of a covered electronic device.
(e) (1) A retailer may retain 3 percent of the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, as reimbursement for all costs associated with collecting the fee and shall transmit the remainder of the fee to the state pursuant to Section 42464.4.
(2) If a retailer makes an election pursuant to paragraph (2) of subdivision (f), and the conditions of subparagraphs (A), (B), and (C) of paragraph (2) of subdivision (f) are met, the vendor, in lieu of the retailer, may retain 3 percent of the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, as reimbursement for all costs associated with collecting the fee and the vendor shall transmit the remainder of the fee to the state pursuant to Section 42464.4.
(f) (1) If a retailer elects to pay the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, on behalf of the consumer, the retailer shall provide an express statement to that effect on the receipt given to the consumer at the time of sale. If a retailer elects to pay the covered electronic waste recycling fee on behalf of the consumer, the fee is a debt owed by the retailer to the state, and the consumer is not liable for the fee.
(2) A retailer may elect to pay the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, on behalf of the consumer by paying the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, to the retailer’s vendor, but only if all of the following conditions are met:
(A) The vendor is registered with CDTFA to collect and remit the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, pursuant to this chapter.
(B) The vendor holds a valid seller’s permit pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code.
(C) The retailer pays the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, to the vendor that is separately stated on the vendor’s invoice to the retailer.
(D) The retailer provides an express statement on the invoice, contract, or other record documenting the sale that is given to the consumer, that the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, has been paid on behalf of the consumer.
(3) For the purpose of making the election in paragraph (2), if the conditions set forth in subparagraphs (A), (B), (C), and (D) of paragraph (2), are met, the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, is a debt owed by the vendor to the state, and the retailer is not liable for the fee.
(g) The retailer shall separately state the covered electronic waste recycling fee or covered battery-embedded waste recycling fee, as applicable, on the receipt given to the consumer at the time of sale.
(h) On or before August 1, 2005, and, thereafter, no more frequently than annually, and no less frequently than biennially, CalRecycle, in collaboration with DTSC, shall review, at a public hearing, the covered electronic waste recycling fee outlined in subdivision (a) and shall make any adjustments to the fee to ensure that there are sufficient revenues in the Covered Electronic Waste Recycling Fee Subaccount to fund the covered electronic waste recycling program, as related to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463 and the resulting covered e-waste, established pursuant to this chapter. Adjustments to the fee that are made on or before August 1, shall apply to the calendar year beginning the following January 1. CalRecycle shall base an adjustment of the covered electronic waste recycling fees on both of the following factors:
(1) The sufficiency, and any surplus, of revenues in the Covered Electronic Waste Recycling Fee Subaccount to fund the collection, consolidation, and recycling of covered electronic waste resulting from covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and the resulting covered e-waste, that is projected to be recycled in the state.
(2) The sufficiency of revenues in the Covered Electronic Waste Recycling Fee Subaccount for CalRecycle and DTSC to administer, enforce, and promote the program established pursuant to this chapter, as related to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463 and the resulting covered e-waste, plus a prudent reserve not to exceed 5 percent of the amount in the Covered Electronic Waste Recycling Fee Subaccount.
(i) Following the setting of the covered battery-embedded waste recycling fee pursuant to paragraph (3) of subdivision (b), on or before August 1, 2027, and, thereafter, no more frequently than annually, and no less frequently than biennially, CalRecycle, in collaboration with DTSC, shall review, at a public hearing, the covered battery-embedded waste recycling fee outlined in subdivision (b) and shall make any fair and reasonable adjustments to the fee to ensure that there are sufficient revenues in the Covered Battery-Embedded Waste Recycling Fee Subaccount to fund the covered electronic waste recycling program established pursuant to this chapter related to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, and the resulting covered e-waste. Adjustments to the fee fees that are made on or before August 1, shall apply to the calendar year beginning the following January 1. CalRecycle shall base an adjustment of the covered battery-embedded waste recycling fees on both of the following factors:
(1) The sufficiency, and any surplus, of revenues in the Covered Battery-Embedded Waste Recycling Fee Subaccount to fund the collection, consolidation, and recycling of covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, that is projected to be recycled in the state.
(2) The sufficiency of revenues in the Covered Battery-Embedded Waste Recycling Fee Subaccount for CalRecycle and DTSC to administer, enforce, and promote the program established pursuant to this chapter, related to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, and the resulting covered e-waste, plus a prudent reserve not to exceed 5 percent of the amount in the Covered Battery-Embedded Waste Recycling Fee Subaccount.

SEC. 3.

 Section 42464.2 of the Public Resources Code is amended to read:

42464.2.
 CDTFA shall collect the covered electronic waste recycling fee, the covered battery-embedded waste recycling fee, and the covered solar PV recycling fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code). For purposes of this section, the reference in the Fee Collection Procedures Law to “feepayer” shall include a retailer, a consumer, and a vendor, in the case of a retailer’s election pursuant to paragraph (2) of subdivision (f) of Section 42464.

SEC. 4.

 Section 42476 of the Public Resources Code is amended to read:

42476.
 (a) The Electronic Waste Recovery and Recycling Account is hereby established in the Integrated Waste Management Fund. The Covered Electronic Waste Recycling Fee Subaccount, the Covered Battery-Embedded Waste Recycling Fee Subaccount, and the Covered Solar PV Module Recycling Fee Subaccount are hereby created in the Electronic Waste Recovery and Recycling Account. All covered electronic waste recycling fees collected from sales of covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, shall be deposited into the Covered Electronic Waste Recycling Fee Subaccount. All covered battery-embedded waste recycling fees collected from sales of covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, shall be deposited into the Covered Battery-Embedded Waste Recycling Fee Subaccount. All covered electronic waste recycling fees collected from sales of covered electronic devices, as defined in subparagraph (C) of paragraph (1) of subdivision (g) of Section 42463, shall be deposited into the Covered Solar PV Module Recycling Fee Subaccount.
(1) Notwithstanding Section 13340 of the Government Code, the funds in the Covered Electronic Waste Recycling Fee Subaccount are hereby continuously appropriated, without regard to fiscal year, for the following purposes:
(A) To pay refunds of the covered electronic waste recycling fee imposed under Section 42464.
(B) To make electronic waste recovery payments to an authorized collector of covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463 pursuant to Section 42479.
(C) To make electronic waste recycling payments to covered electronic waste recyclers, for recycling covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(D) To make payments to manufacturers for covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, pursuant to subdivision (h).
(2) Notwithstanding Section 13340 of the Government Code, the funds in the Covered Battery-Embedded Waste Recycling Fee Subaccount are hereby continuously appropriated, without regard to fiscal year, for the following purposes:
(A) To pay refunds of the covered battery-embedded waste recycling fee imposed under Section 42464.
(B) To make electronic waste recovery payments to an authorized collector of covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(C) To make electronic waste recycling payments to covered electronic waste recyclers for recycling covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(D) To make payments to manufacturers for covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, pursuant to subdivision (h).
(3) Notwithstanding Section 13340 of the Government Code, the funds in the Covered Solar PV Module Recycling Fee Subaccount are hereby continuously appropriated, without regard to fiscal year, for the following purposes:
(A) To pay refunds of the covered solar PV recycling fee imposed under Section 42464.
(B) To make electronic waste recovery payments to an authorized collector of covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (C) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(C) To make electronic waste recycling payments to covered electronic waste recyclers for recycling covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (C) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(D) To make payments to manufacturers for covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (C) of paragraph (1) of subdivision (g) of Section 42463, pursuant to subdivision (h).
(b) (1) The money in the Covered Electronic Waste Recycling Fee Subaccount may be expended for the following purposes only upon appropriation by the Legislature in the annual Budget Act:
(A) For the administration of this chapter by CalRecycle and DTSC, as related to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463.
(B) To reimburse CDTFA for its administrative costs of registering, collecting, making refunds, and auditing retailers and consumers in connection with the covered electronic waste recycling fee imposed under Section 42464.
(C) To provide funding to DTSC to implement and enforce Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code, as related to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, as and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, including any regulations adopted by DTSC pursuant to that chapter, as that chapter relates to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463.
(D) To establish the public information program specified in subdivision (d), as it relates to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463.
(E) For expenditure pursuant to paragraph (2) of subdivision (a) of, and paragraph (2) of subdivision (b) of, Section 17001.
(2) The money in the Covered Battery-Embedded Waste Recycling Fee Subaccount may be expended solely for the following purposes only upon appropriation by the Legislature in the annual Budget Act:
(A) For the administration of this chapter by CalRecycle and DTSC, as related to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463 and covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.
(B) To reimburse CDTFA for its administrative costs of registering, collecting, making refunds, and auditing retailers and consumers in connection with the covered battery-embedded waste recycling fee imposed under Section 42464.
(C) To provide funding to DTSC to implement and enforce Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code, as it relates to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, and as it relates to covered electronic waste resulting from discarded covered electronic devices, defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, including any regulations adopted by DTSC pursuant to that chapter, as that chapter relates to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463 and covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.
(D) To establish the public information program specified in subdivision (d), as it relates to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, and as it relates to covered electronic waste resulting from covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.
(3) Any fines or penalties collected pursuant to this chapter shall be deposited in the Electronic Waste Penalty Subaccount, which is hereby established in the account. The funds in the Electronic Waste Penalty Subaccount may be expended by CalRecycle or DTSC only upon appropriation by the Legislature.
(c) Notwithstanding Section 16475 of the Government Code, any interest earned upon funds in the Electronic Waste Recovery and Recycling Account shall be deposited in that account for expenditure pursuant to this chapter.
(d) Not more than 2 percent of the funds annually deposited in the Covered Electronic Waste Recovery Recycling Fee Subaccount and not more than 2 percent of the funds annually deposited in the Covered Battery-Embedded Waste Recycling Fee Subaccount shall be expended for purposes of establishing the public information program to educate the public in the hazards of improper covered electronic device storage and disposal and on the opportunities to recycle covered electronic devices.
(e) CalRecycle shall adopt regulations specifying cancellation methods for the recovery, processing, or recycling of covered electronic waste.
(f) CalRecycle may pay an electronic waste recycling payment or electronic waste recovery payment only for covered electronic waste that meets all of the following conditions:
(1) (A) The covered electronic waste is demonstrated to have been generated by a person who used the covered electronic device while located in this state.
(B) Covered electronic waste generated outside of the state and subsequently brought into the state is not eligible for payment.
(C) CalRecycle shall establish documentation requirements for purposes of this paragraph that are necessary to demonstrate that the covered electronic waste was generated in the state and eligible for payment.
(2) The covered electronic waste, including any residuals from the processing of the waste, is handled in compliance with all applicable statutes and regulations.
(3) The manufacturer or the authorized collector or recycler of the electronic waste provides a cost-free and convenient opportunity to recycle electronic waste, in accordance with the legislative intent specified in subdivision (b) of Section 42461.
(4) If the covered electronic waste is processed, the covered electronic waste is processed in this state according to the cancellation method authorized by CalRecycle.
(g) The Legislature hereby declares that the state is a market participant in the business of the recycling of covered electronic waste for all of the following reasons:
(1) The covered electronic waste recycling fee or the covered battery-embedded waste recycling fee, as applicable, are collected from the state’s consumers for covered electronic devices sold for use in the state.
(2) The purpose of the covered electronic waste recycling fee and the covered battery-embedded waste recycling fee and subsequent payments is to prevent damage to the public health and the environment from waste generated in the state.
(3) The recycling system funded by the covered electronic waste recycling fee and the covered battery-embedded waste recycling fee ensures that economically viable and sustainable markets are developed and supported for recovered materials and components in order to conserve resources and maximize business and employment opportunities within the state.
(h) (1) CalRecycle may make a payment to a manufacturer that takes back a covered electronic device from a consumer in this state for purposes of recycling the device at a processing facility. The amount of the payment made by CalRecycle shall equal the value of the covered electronic waste recycling fee or the covered battery-embedded waste recycling fee, as applicable, paid for that device. To qualify for a payment pursuant to this subdivision, the manufacturer shall demonstrate both of the following to CalRecycle:
(A) The covered electronic device for which payment is claimed was used in this state.
(B) The covered electronic waste for which a payment is claimed, including any residuals from the processing of the waste, has been, and will be, handled in compliance with all applicable statutes and regulations.
(2) A covered electronic device for which a payment is made under this subdivision is not eligible for an electronic waste recovery payment or an electronic waste recycling payment under Section 42479.

SEC. 5.

 Section 42479 of the Public Resources Code is amended to read:

42479.
 (a) (1) For covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, collected for recycling on and after January 1, 2005, for covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, collected for recycling on or after January 1, 2026, and for covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (C) of paragraph (1) of subdivision (g) of Section 42463, collected for recycling on or after January 1, 2028, CalRecycle shall make electronic waste recovery payments and electronic waste recycling payments for the collection and recycling of covered e-waste to an authorized collector or covered e-waste recycler, respectively, upon completion of the review by CalRecycle of a payment claim submitted to CalRecycle by the authorized collector or e-waste recycler in the form and manner determined by CalRecycle. CalRecycle may examine a payment claim for a period of not more than 90 days from the date of receipt of the payment claim to validate the claim’s completeness, accuracy, truthfulness, and compliance with applicable laws and regulations. All of the following shall be considered official records for purposes of Section 1280 of the Evidence Code:
(A) The results of a payment claim review or subsequent payment claim audit.
(B) Written information compiled by CalRecycle during a claim review or subsequent claim audit.
(2) To the extent authorized by Section 42477, a covered e-waste recycler shall make the electronic waste recovery payments to an authorized collector upon receipt of a completed and verified invoice submitted to the recycler by the authorized collector in the form and manner determined by CalRecycle.
(b) A covered e-waste recycler is eligible for a payment pursuant to this section only if the covered e-waste recycler meets all of the following requirements:
(1) The covered e-waste recycler is in compliance with applicable requirements of Article 6 (commencing with Section 66273.70) of Chapter 23 of Division 4.5 of Title 22 of the California Code of Regulations.
(2) The covered e-waste recycler demonstrates to CalRecycle that a facility utilized by the covered e-waste recycler for the handling, processing, refurbishment, or recycling of covered electronic devices meets all of the following standards:
(A) The facility has been inspected by DTSC within the past 12 months and had been found to be operating in conformance with all applicable laws, regulations, and ordinances.
(B) The facility is accessible during normal business hours for unannounced inspections by state or local agencies.
(C) The facility has health and safety, employee training, and environmental compliance plans and certifies compliance with the plans.
(D) The facility meets or exceeds the standards specified in Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of, Division 4 (commencing with Section 3200) of, and Division 5 (commencing with Section 6300) of, the Labor Code or, if all or part of the work is to be performed in another state, the equivalent requirements of that state.
(c) CalRecycle may conduct a selective audit of authorized collectors, covered e-waste recyclers, or manufacturers receiving payments from CalRecycle to determine whether electronic waste recovery payments, electronic waste recycling payments, or payments to manufacturers are being paid by CalRecycle according to the requirements of this chapter and the regulations adopted pursuant to this chapter. CalRecycle collect and recover from authorized collectors, covered e-waste recyclers, or manufacturers, with interest, any moneys improperly paid.

SEC. 6.

 Chapter 8.7 (commencing with Section 42499.6) is added to Part 3 of Division 30 of the Public Resources Code, to read:
CHAPTER  8.7. Non-Customer-Owned Solar Photovoltaic (PV) Module Recycling

42499.6.
 (a) Except For purposes of this chapter, “CalRecycle” means the Department of Resources Recycling and Recovery.
(b) Except as provided in subdivision (c), (d), beginning January 1, 2028, a solar photovoltaic module shall be included in a plan that describes how the solar photovoltaic module will be managed at the end of its useful life, who is responsible for managing it, and how it will be recycled, refurbished, or reused. The plan shall identify a legitimate recycler, as described in Section 260.43 of Title 40 of the Code of Federal Regulations, membership in a national recycling program, or a comparable in-house recycling program, to be used or contracted with for the recycling of the solar photovoltaic module. The plan may also identify how the solar photovoltaic module will be refurbished and reused in the event that the solar photovoltaic module has remaining operating life.

(b)The department

(c) CalRecycle shall develop guidelines for the plans described in subdivision (a). (b). The guidelines shall include selective auditing to be conducted by the department CalRecycle to ensure plans comply with the requirements in subdivision (a) (b) and other provisions to be included in the guidelines described therein. The department CalRecycle may delay development of all or part of the guidelines if it determines there is insufficient capacity to manage the requisite number of panels.

(c)

(d) Subdivision (a) (b) shall not apply to a solar photovoltaic module that meets the definition of “covered electronic device,” as defined in subparagraph (C) of paragraph (1) of subdivision (g) of Section 42463.

SEC. 7.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
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