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<ns0:Description>
<ns0:Id>20250SB__061595AMD</ns0:Id>
<ns0:VersionNum>95</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-20</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-04-07</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-05-23</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-07-07</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-09-02</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>615</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Allen</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Assembly Member Bauer-Kahan)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Allen</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Bauer-Kahan</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to add Article 11.3 (commencing with Section 25235) to Chapter 6.5 of Division 20 of the Health and Safety Code, relating to hazardous waste. </ns0:Title>
<ns0:RelatingClause>hazardous waste</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Vehicle traction batteries.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law requires the Secretary for Environmental Protection to convene the Lithium-Ion Car Battery Recycling Advisory Group to review, and advise the Legislature on, policies pertaining to the recovery and recycling of lithium-ion vehicle batteries sold with motor vehicles in the state. Existing law also requires the advisory group to submit policy recommendations to the Legislature aimed at ensuring that as close to 100% as possible of lithium-ion vehicle batteries in the state are reused or recycled at end of life in a safe and cost-effective manner.</html:p>
<html:p>The hazardous waste control laws require the Department of Toxic Substances Control to regulate the handling and management of hazardous waste. A violation of the hazardous waste control laws is a crime.</html:p>
<html:p>This bill would require a battery supplier,
as defined, to be responsible for, among other duties, ensuring the responsible end-of-life management of a vehicle traction battery if it is removed from a vehicle that is still in service, as provided, or if the vehicle traction battery is offered or returned to its battery supplier, and reporting information regarding the sale, transfer, or receipt of a vehicle traction battery or battery module to the department, as provided. The bill would impose related duties on a secondary user, as defined, and a secondary handler, as defined, including, among other duties, ensuring the responsible end-of-life management for a vehicle traction battery or returning a vehicle traction battery to the battery supplier, and reporting information regarding the sale, transfer, or receipt of a vehicle traction battery or battery module to the department, as provided. The bill would also require an auctioneer, as defined, and salvage disposal auction, as defined, to report similar information regarding a vehicle traction
battery to the department.</html:p>
<html:p>This bill would require the battery supplier to pay the department’s actual and reasonable regulatory costs to implement and enforce these provisions. The bill would establish the Vehicle Traction Battery Recovery Fund (fund) in the State Treasury and would require the department to deposit all moneys received from the battery supplier into the fund, as specified. Moneys in the fund would be available, upon appropriation by the Legislature, to implement and enforce these provisions. The bill would authorize, upon appropriation by the Legislature, the Director of Finance to make a loan from an unspecified fund to the fund to meet regulatory and startup costs of the department’s activities pursuant to these provisions.
The bill would require, upon appropriation by the Legislature, moneys in the fund to be expended to reimburse loans made from other funds for those purposes. The bill would require the department to conduct a study to determine whether there is evidence of abandonment of orphaned batteries leading to environmental and health and safety hazards and, on or before January 1, 2030, and every 5 years thereafter, to post the results of its findings on its internet website. The bill would authorize the department to impose civil or administrative penalties for a violation of these requirements. The bill would exempt a violation of these requirements from the criminal penalties imposed pursuant to the hazardous waste control laws, but would require that all reports and records provided to the department pursuant to these provisions be provided under penalty of perjury. By expanding the scope of crimes, the bill would impose a state-mandated local program. The bill would restrict public access to certain information
collected for the purpose of administering this program.</html:p>
<html:p>Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.</html:p>
<html:p>This bill would make legislative findings to that effect.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_B92DC49A-88BE-40A1-8E35-BE9E7B8C1402">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>The Legislature hereby finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
As the State of California continues its commitment to decarbonizing the on-road transportation sector, and as electric vehicles become more cost competitive and popular with consumers, the state will see an increase in the number of vehicle traction batteries.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A vehicle traction battery that is no longer useful in a vehicle can be repurposed for another application, remanufactured, or recycled. Given the growth expected in California’s electric vehicle market, the value inherent in the material used to
manufacture vehicle batteries, and the potential hazard posed by these batteries if handled improperly, California has an interest in creating a coherent state policy designed to ensure all vehicle traction batteries are reused, repaired, repurposed, remanufactured, and eventually recycled.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The Legislature passed and the Governor signed Assembly Bill 2832 of the 2017–18 Regular Session, calling for the formation of an advisory group of experts to develop policy recommendations aimed at ensuring that as close to 100 percent as possible of electric vehicle traction batteries in the state are reused or recycled at end of life in a safe and cost-effective manner. This advisory group published a report in March 2022 summarizing their work, detailing barriers and opportunities for improving management of these batteries, and
presenting policies designed to further the currently developing circular economy, avoid adverse impacts to public health and the environment, and to keep these batteries out of the waste stream.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
One key recommendation of the advisory group was to create a program that would require those involved in the production and use of electric vehicle traction batteries to take responsibility for the product’s end of life. The report articulated different approaches to accomplishing this goal and underscored the need to specify which entities should be responsible for coordinating and covering the costs associated with management of the batteries when those costs present a burden for the vehicle owner and the need to mitigate barriers that currently inhibit the reusing, repurposing, and recycling of these batteries.
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_DDE7AB5E-E0F1-4E5C-8C3D-5A9763D1BD4D">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>It is the policy of the State of California that any program designed to ensure proper end-of-life management of vehicle traction batteries first strives to reuse, repair, or remanufacture vehicle traction batteries when possible. When that is not possible, the program shall ensure that vehicle traction batteries are either repurposed or recycled. When a vehicle traction battery is no longer used in any application, the program shall ensure the vehicle traction batteries are recycled. Disposal of these vehicle traction batteries should be discouraged and ultimately eliminated in support of achieving a circular economy.</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_E645B0CA-14A6-46B9-B2B2-417BA1006C70">
<ns0:Num>SEC. 3.</ns0:Num>
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Article 11.3 (commencing with Section 25235) is added to Chapter 6.5 of Division 20 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
, to read:
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<ns0:LawHeading id="id_805DA5A7-51FA-4284-A1EF-CCDCB2955AB6" type="ARTICLE">
<ns0:Num>11.3.</ns0:Num>
<ns0:LawHeadingVersion id="id_EEBF65F3-DF75-48A5-88D4-C4A9868FB128">
<ns0:LawHeadingText>Vehicle Traction Batteries</ns0:LawHeadingText>
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<ns0:LawSection id="id_755CB796-35EF-49B9-846E-9B274BF9759E">
<ns0:Num>25235.</ns0:Num>
<ns0:LawSectionVersion id="id_150063A1-6D4A-476A-A04E-74770617F696">
<ns0:Content>
<html:p>For purposes of this article, the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Auctioneer” has the same definition as in Section 1812.601 of the Civil Code, but includes a wholesale motor vehicle auction subject to regulation by the Department of Motor Vehicles. Auctioneer does not include a salvage disposal auction.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Automobile dismantler” has the same definition as in Section 220 of the Vehicle Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Automotive repair dealer” has the same definition as in Section 9880.1 of the Business and Professions Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Battery cell” means the basic electrochemical unit of a battery that consists of an anode, a cathode, and an electrolyte and is used to store and release electrical energy.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“Battery management hierarchy” means a hierarchy of battery management wherein the entity in possession of the battery shall first strive to reuse, repair, or remanufacture the battery when possible and cost effective. When that is not possible or cost effective, that entity shall ensure that the battery is either repurposed or recycled. If a battery can no longer be cost-effectively used in any application, that entity shall ensure the battery is recycled.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
“Battery module” means an array of multiple battery cells connected in series or parallel and encased in one structure.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
“Battery supplier” means all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A person who initially sells, offers for sale, or distributes a vehicle traction battery into the state, including a vehicle manufacturer licensed pursuant to Section 11701 of the Vehicle Code, or a vehicle traction battery manufacturer, who sells, offers for sale, or distributes a vehicle traction battery in or into the state under the person’s own name or brand. A vehicle manufacturer shall be considered a battery supplier with respect to vehicle traction batteries included in its vehicles that are sold in this state and with respect to replacement vehicle traction batteries provided, directly or indirectly, by the manufacturer to dealers in the state.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If there is
no vehicle manufacturer licensed pursuant to Section 11701 of the Vehicle Code, or no other person in the state who is the battery supplier for purposes of paragraph (1), the battery supplier is the owner or exclusive licensee of a brand or trademark under which the vehicle traction battery is sold or distributed into the state, whether or not the trademark is registered. For purposes of this subdivision, an “exclusive licensee” is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the vehicle traction battery.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If there is no person in the state who is the battery supplier for purposes of paragraph (1) or (2), the battery supplier is the person that imports the vehicle traction battery into the state for sale,
distribution, or installation.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
If there is no other person in the state who is the battery supplier for the purpose of paragraph (1), (2), or (3), the battery supplier is the distributor, retailer, dealer, or wholesaler who sells the vehicle traction battery in or into the state.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
For purposes of this article, the sale of a vehicle traction battery shall be deemed to occur in the state if the vehicle traction battery, or the vehicle containing the vehicle traction battery, is delivered to a licensed dealer, as defined in Section 285 of the Vehicle Code, or to the consumer in the state.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Battery supplier” does not include a secondary handler who sells, offers for sale, or distributes a vehicle traction battery in or into
the state, except in the case of a secondary handler who remanufactures a vehicle traction battery pursuant to subdivision (d) of Section 25235.2.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Brand” means a name, symbol, word, or mark that identifies a vehicle traction battery rather than its components, and attributes the vehicle traction battery to the owner or licensee of the brand as the battery supplier.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
“Dealer” has the same definition as in Section 285 of the Vehicle Code.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
“Department” means the Department of Toxic Substances Control.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
“Motor vehicle” has the same definition as in Section 415 of the Vehicle Code.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
“Orphaned battery” means a vehicle traction battery for which the battery supplier, owner, or manufacturer cannot be identified or is no longer doing business.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“Qualified battery recycler” means an entity or facility that is certified by the department, abides by all applicable federal, state, and local laws, and does either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Collects, sorts, separates, and refines the components of an end-of-life traction battery’s materials and refines the components back to usable battery intermediary components or battery chemicals such as cobalt sulfate, lithium salts, and nickel sulfates.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Extracts and separates a composition of components such as aluminum, cobalt, copper, graphite, iron, lithium compounds, manganese, and nickel, and sends the material for further processing or refining to another battery recycler.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The term “qualified battery recycler” does not include entities or facilities that are only engaged in the collection or logistics of moving materials for recycling or household hazardous waste collection facilities and solid waste enterprises that are only engaged in the collection and transportation of vehicle traction batteries for subsequent reuse, processing, recycling, or disposal.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An entity or facility can be deemed a “qualified battery recycler” even if it relies on separate
entities for the collection and sorting of vehicle traction batteries, if it fulfills the requirements stated in subparagraphs (A) and (B) of paragraph (1).
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“Recycle” or “recycling” means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ultimately be disposed of onto land or into water or the atmosphere, and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Recycle” or “recycling” does not include any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Smelting. For purposes of this subparagraph,
“smelting” means to melt or fuse a metalliferous mineral, often with an accompanying chemical change, usually to separate the metal.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Energy generation.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Fuel production.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Other forms of disposal.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
“Remanufacturing” means the process of refurbishing a battery, battery cells, or battery modules through the replacement of worn or deteriorated components to same-as-new, or better, condition and performance for use in the same application as the one for which the battery was originally designed.
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
“Repair” means the process of fixing or replacing components of a vehicle traction
battery to restore the vehicle traction battery to operational condition.
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
“Repurposing” means a vehicle traction battery being used to fulfill a different use than the one for which the battery was originally designed, such as secondary use.
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
“Responsible end-of-life management” means ensuring a vehicle traction battery that is eligible to be recycled pursuant to the battery management hierarchy is ultimately sent to a qualified battery recycler. This may include initial processing by secondary handlers if the material is ultimately sent to a qualified battery recycler.
</html:p>
<html:p>
(s)
<html:span class="EnSpace"/>
“Reuse” means the use of a propulsion battery in another vehicle that does not require modification to the battery.
</html:p>
<html:p>
(t)
<html:span class="EnSpace"/>
“Salvage disposal auction” has the same definition as in Section 24020 of the Vehicle Code.
</html:p>
<html:p>
(u)
<html:span class="EnSpace"/>
“Secondary handler” means any commercial entity, other than the vehicle manufacturer or a secondary user, that takes possession of a vehicle traction battery permanently removed from the vehicle or that permanently removes a vehicle traction battery from the vehicle for purposes, including, but not limited to, repairing, remanufacturing, and recycling. This may include, but is not limited to, automobile dismantlers and automotive repair dealers.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
“Secondary user” means an entity that repurposes a vehicle traction battery to fulfill a different use than what was originally intended.
</html:p>
<html:p>
(w)
<html:span class="EnSpace"/>
“State of health” or “battery state of health” has the meaning set forth in Section 1962.5(c)(4)(A)4. c. to e., inclusive, of Title 13 of the California Code of Regulations as amended November 30, 2022, or as further amended by the State Air Resources Board.
</html:p>
<html:p>
(x)
<html:span class="EnSpace"/>
“Stranded battery” means a vehicle traction battery in which the costs associated with recycling the vehicle traction battery present a burden for the owner of the vehicle or an entity that has removed the vehicle traction battery from the vehicle.
</html:p>
<html:p>
(y)
<html:span class="EnSpace"/>
“Vehicle manufacturer” has the same definition as in Section 672 of the Vehicle Code.
</html:p>
<html:p>
(z)
<html:span class="EnSpace"/>
“Vehicle traction battery” means an advanced battery technology
used as a traction battery to propel a motor vehicle that is required to be registered pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, also known as a battery pack, including battery modules that comprise a battery. This definition does not include a “lead-acid battery,” as defined in Section 25215.1 and does not include any battery less than seven kilowatthours.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_2F990B86-8716-4CBD-BDF8-54A91BCF123A">
<ns0:Num>25235.2.</ns0:Num>
<ns0:LawSectionVersion id="id_7C871CD1-E8A3-4FD8-9EF6-DB5B40B1DE8C">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A battery supplier shall do the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Ensure the responsible end-of-life management of a vehicle traction battery under the following circumstances:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A vehicle traction battery is removed from a vehicle that is still in service, while the vehicle traction battery is still under warranty, pursuant to state and federal laws.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
A vehicle traction battery is offered or returned to its battery supplier. “Returned to its battery supplier” for purposes of this section may include sending
a vehicle traction battery to a secondary user or qualified battery recycler determined by the battery supplier.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
For purposes of this subparagraph, “offered” means notifying the battery supplier that there is a battery in need of responsible end-of-life management.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Clause (i) does not apply to a vehicle traction battery that has been branded, embedded, imported, repurposed, or retailed, into a product application by a secondary user, unless the secondary user is in a contractual relationship with the original battery supplier pursuant to subdivision (b).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Adhere to the battery management hierarchy for a vehicle traction battery in their possession.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Report information regarding the sale, transfer, or receipt of a vehicle traction battery or battery module to the department pursuant to subdivision (b) of Section 25235.3.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Fully fund the cost of collection of a vehicle traction battery for which they are required to ensure responsible end-of-life management pursuant to paragraph (1).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A battery supplier may require a secondary handler who owns and possesses a vehicle with the vehicle traction battery installed who wishes to return the vehicle traction battery to the battery supplier to return the battery within the vehicle, subject to agreement on compensation. In this case, the battery supplier shall be responsible for the cost to transport the vehicle from the secondary handler, and
shall pay the fair market value of that vehicle in its current condition. If the secondary handler and the battery supplier do not agree on the fair market value for the vehicle, the battery supplier remains obligated for the responsible end-of-life management of the vehicle traction battery pursuant to paragraph (1) and shall be responsible for the cost of transporting the battery without the vehicle.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Ensure battery state of health data that is easily interpretable and accessible to secondary handlers and secondary users, either while the vehicle traction battery is inside the vehicle or, if feasible, pursuant to paragraph (4) of subdivision (b) of Section 25235.3, once it has been removed.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A secondary user shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Adhere to the battery management hierarchy.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the vehicle traction battery has been removed from the secondary application to which the vehicle traction battery has been used and is at the end of its useful life, do either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Ensure the responsible end-of-life management for a vehicle traction battery.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Return a vehicle traction battery to the battery supplier if the secondary user is in a contractual relationship with the original battery supplier, which provides for the retention of responsibility for the end-of-life management of the vehicle traction battery by the primary battery supplier.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Report information regarding the sale, transfer, or receipt of a vehicle traction battery or battery module to the department pursuant to subdivision (b) of Section 25235.3.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A secondary handler in possession of a vehicle traction battery that has been removed from the vehicle shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Adhere to the battery management hierarchy.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Except as specified in subdivision (d), ensure the responsible end-of-life management of the vehicle traction battery or return
the vehicle traction battery to a battery supplier. If the battery supplier requires a vehicle traction battery to be returned within the vehicle from which it was removed, the secondary handler shall return the vehicle and be compensated at fair market value if that value is agreed upon pursuant to paragraph (4) of subdivision (a).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Report information regarding the sale, transfer, or receipt of a vehicle traction battery or battery module to the department pursuant to subdivision (b) of Section 25235.3.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A secondary handler who remanufactures a vehicle traction battery shall be considered the battery supplier and subject to the obligations in subdivision (a). However, the secondary handler may return the
vehicle traction battery to the original battery supplier if the secondary handler is in a contractual relationship with the original battery supplier, which provides for the retention of responsibility for the end-of-life management of the vehicle traction battery by the original battery supplier.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A secondary handler who remanufactures a vehicle traction battery shall rebrand and label the battery in a form and manner determined by the department so as to be easily identified as remanufactured by that secondary handler.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
An auctioneer and salvage disposal auction shall report information regarding the sale or transfer of a vehicle containing a vehicle traction battery to the department pursuant to subdivision (b) of Section 25235.3.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A qualified battery recycler shall report to the department pursuant to subdivision (b) of Section 25235.3.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_B62D8934-1227-4CCB-ADC6-3B4B7D06BACF">
<ns0:Num>25235.3.</ns0:Num>
<ns0:LawSectionVersion id="id_B466F66E-51F5-4FC0-B7E7-D1C845484954">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement and enforce this article with an effective date no later than July 1, 2028.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The regulations shall include a method and form for battery suppliers, secondary users, secondary handlers, auctioneers, salvage disposal auctions, and qualified battery recyclers to annually report information pursuant to this section on a vehicle
traction battery, or the individual battery module if these components are removed from a vehicle traction battery before receipt by a qualified battery recycler. The information reported annually shall include all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The initial sale or delivery of a vehicle traction battery into the state, either within a vehicle or separately, and when a vehicle containing a vehicle traction battery is sold by an auctioneer.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The vehicle traction batteries shipped out of the state and exported to other countries.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The date the vehicle traction battery was sold, transferred, or received, the name of the entity selling or transferring the vehicle traction battery and the name of the entity receiving it, the vehicle traction
battery’s unique identifier, and, if the vehicle traction battery has been removed from the vehicle or is subject to paragraph (4) of subdivision (a) of Section 25235.2, whether the vehicle traction battery will be repaired, reused, remanufactured, repurposed, or recycled. The regulations shall include criteria for when a vehicle traction battery’s unique identifier is not required to be reported, including when it is not present or not possible to access.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
When a vehicle containing a vehicle traction battery is sold by a salvage disposal auction, the salvage disposal auction shall be required to report the unique identifier for each vehicle traction battery only if the vehicle traction battery’s unique identifier is present and reasonably accessible through visible inspection of the vehicle
without removing parts or dismantling the vehicle.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the salvage disposal auction cannot access the unique identifier, the salvage disposal auction shall instead include the vehicle identification number and inform the buyer of the vehicle that this information was not reported to the department and of the buyer’s responsibility to report the unique identifier.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Regulations related to the unique identifier of a vehicle traction battery shall be developed in consultation with the State Air Resources Board and include necessary elements for battery traceability and recyclability, including, but not limited to, chemistry identification, voltage, and rated capacity as described in Section 1962.6 of Title 13 of the California Code of
Regulations as amended November 30, 2022. For vehicle traction batteries installed in the vehicle by the vehicle manufacturer, the department shall consider using all or part of the vehicle identification number of the vehicle as the unique identifier.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
For purposes of facilitating the potential reuse, repair, repurpose, or remanufacture of a vehicle traction battery pursuant to the battery management hierarchy, the department may consider requiring battery suppliers to make available a vehicle traction battery’s state of health if it determines that there is a feasible, safe, and cost-effective way to do so and that there is adequate training and education among battery suppliers and secondary users to safely assess battery state of health. At least 12 months prior to doing so, the department shall conduct a public workshop and seek
input from stakeholders. Any regulations related to the state of health of a vehicle traction battery shall be developed in consultation with the State Air Resources Board.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The department shall require qualified battery recyclers to annually report where treatment of vehicle traction batteries takes place along with data on recycling efficiency for recycled vehicle traction batteries, recovery of materials from recycled vehicle traction batteries, and the yield of the final output fractions of
lithium, cobalt, nickel, and copper, or other relevant metals, as applicable.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The regulations shall include a process and criteria for determining how the department will assign costs for implementing this article to each battery supplier.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Annually, the department shall publicly post on the department’s internet website aggregated data on the disposition of vehicle traction batteries removed from vehicles, including data on the number of vehicle traction batteries sold or distributed for reusing, remanufacturing, repurposing, and recycling. The
department shall not disclose proprietary or confidential information.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The regulations shall include a process for certifying a qualified battery recycler by facility, including an appeals process, a reasonable standard of review, and the ability for entities to cure identified deficiencies and be reevaluated for certification. The process may include, but not be limited to, the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Requiring qualified battery recyclers to demonstrate that employees undergo mandatory safety training to ensure the proper management and recycling of vehicle traction batteries. The department may require, develop, or select appropriate training modules for this purpose or may allow a recycler to submit its own safety training plan for approval.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Reassessment and recertification timelines.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
If the federal government creates a battery labeling requirement, the department shall review, evaluate, and compare the federal requirements to those established under this article. It shall, if necessary, revise the regulations pursuant to paragraph (2) of subdivision (b) to ensure consistency and achieve greater efficiency and feasibility. Any revisions shall continue to ensure vehicle traction batteries can be uniquely identified to meet the requirements of this article. If deemed necessary, the department may update the reporting system established under subdivision (b).
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
When determining the requirements for a qualified battery recycler, the department’s
regulations shall encourage recycling that minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts. The regulations shall include criteria to exclude recycling technologies that produce significant amounts of hazardous waste. The regulations may include criteria regarding benefits to the environment and minimization of risks to public health and worker health and safety.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_5740C1B6-F86A-493E-89D5-FD21248508B7">
<ns0:Num>25235.4.</ns0:Num>
<ns0:LawSectionVersion id="id_A4BD7BF2-05E0-4E2A-A259-A98639D72969">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
No later than 30 days after the effective date of the regulations adopted pursuant to subdivision (a) of Section 25235.3, each battery supplier shall provide to the department, in a form and manner established by the department in regulation, the battery supplier’s contact information, including their name, physical and mailing address, email address, and telephone number, and a list of vehicle traction battery types and brands of vehicle traction batteries that the battery supplier sells, distributes for sale, imports for sale, or offers for sale in or into the state.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A battery supplier shall update the list described in subdivision (a) and provide the
updated list to the department on or before January 15 of each year, and upon request of the department.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A battery supplier may not sell, offer for sale, import, or distribute a vehicle traction battery in the state unless the vehicle traction battery has been reported to the department pursuant to subdivision (b) of Section 25235.3.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If an entity does not meet the definition of a battery supplier and is not subject to this article but, at any point, meets the definition of a battery supplier, the entity shall comply with the requirements of this article prior to beginning to sell, offer for sale, import, or distribute vehicle traction batteries in the state.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A battery supplier is not in
compliance with this article and is subject to penalties pursuant to Section 25235.11 if, commencing two years from the effective date of regulations adopted pursuant to Section 25235.3, a vehicle traction battery sold or offered for sale by the battery supplier is not accounted for in the reports to the department made pursuant to subdivision (b) of Section 25235.3.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_DCC4A451-3A97-478F-9C58-7E94FE023638">
<ns0:Num>25235.5.</ns0:Num>
<ns0:LawSectionVersion id="id_28DDAEBD-EF60-412B-933F-D90D50A1A0B0">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Within four months of the effective date of the regulations implementing this article, the department shall notify the battery supplier of the estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Sections 25235.3 and 25235.8, which includes full personnel costs, as related to implementing and enforcing this article. This shall include the costs associated with regulations development and other startup activities.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Failure of a battery supplier, or its respective agent who holds records, to produce documents or data that is requested by the department as part of a department audit, or review of a third-party
audit, constitutes a violation of this article.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The battery supplier shall, on a schedule determined by the department, pay the department’s actual and reasonable regulatory costs to implement and enforce this article.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The department shall deposit all moneys received from the battery supplier pursuant to this section into the Vehicle Traction Battery Recovery Fund, which is hereby established in the State Treasury.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Upon appropriation by the Legislature, moneys in the Vehicle Traction Battery Recovery Fund shall be expended to implement and enforce this article, as well as to reimburse any standing loans made from other funds used to finance the regulatory and startup costs of the
department’s activities pursuant to this article.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The moneys in the Vehicle Traction Battery Recovery Fund shall not be expended for any other purpose.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Upon appropriation by the Legislature, the Director of Finance may make a loan to the Vehicle Traction Battery Recovery Fund to meet regulatory and startup costs of the department’s activities pursuant to this article.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_121EFFF0-007C-4415-98E9-DA79F0FD3C21">
<ns0:Num>25235.6.</ns0:Num>
<ns0:LawSectionVersion id="id_212FC6A4-F62D-4D82-A64B-A8AC3194B6BA">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A battery supplier, a secondary user, a secondary handler, or a qualified battery recycler shall do both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Upon request, within 14 days, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The records required by this article shall be
maintained and accessible for five years. All reports and records provided to the department pursuant to this article shall be provided under penalty of perjury.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The department may impose civil penalties pursuant to Section 25235.11 on a battery supplier, a secondary user, a secondary handler, or a qualified battery recycler that fails to provide the department with the access required pursuant to this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department may post a notice on the department’s internet website that a battery supplier that fails to provide the
department with access pursuant to this section is no longer in compliance with this article.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_E919FFAB-036C-44D2-AB0B-D55C7DF60F2A">
<ns0:Num>25235.7.</ns0:Num>
<ns0:LawSectionVersion id="id_8862D761-63FC-41B0-9E1D-75E3E06854FD">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A person who is not a battery supplier, secondary handler, secondary user, or qualified battery recycler seeking to discard a vehicle traction battery may do either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Offer or return the vehicle traction battery or the vehicle containing the vehicle traction battery to the battery supplier.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Sell or transfer the vehicle traction battery or the vehicle containing the vehicle traction battery to a secondary handler, secondary user, or qualified battery recycler.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “offer” means notifying the battery
supplier that there is a battery in need of responsible end-of-life management.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_E5CD8B13-0B36-4648-85A3-8E456200D00A">
<ns0:Num>25235.8.</ns0:Num>
<ns0:LawSectionVersion id="id_2CE2C5EA-76C1-47E4-A22F-AE9AB0F24C89">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The department shall conduct a study to determine whether there is evidence of abandonment of orphaned batteries leading to environmental and health and safety hazards and analyze any trends in the prevalence of stranded batteries. The department shall post a report with its findings on its internet website on or before January 1, 2030, and every five years thereafter.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department shall revise the regulations adopted pursuant to Section 25235.3 in order to include requirements for battery suppliers and secondary users to address the issue of orphaned batteries if determined necessary by the department.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The department may include recommendations in the report required pursuant to subdivision (a) to improve the program established in this article.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_4845E3C0-6619-413F-BECA-6956C79511DF">
<ns0:Num>25235.9.</ns0:Num>
<ns0:LawSectionVersion id="id_1334033C-D11B-4D87-9DAE-551C0EFB1957">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
This article does not exempt a secondary handler from applicable licensing and certification requirements of the Department of Motor Vehicles and the Bureau of Automotive Repair. This section is declaratory of existing law.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
This article does not exempt an entity from applicable hazardous waste management requirements.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_D501F900-10D0-49AE-A2B2-0C95F3C4B560">
<ns0:Num>25235.10.</ns0:Num>
<ns0:LawSectionVersion id="id_5F86E7D6-690B-4E7A-9E26-49339EF4B19F">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Within 12 months of the effective date of the regulations and on or before July 1 of each year thereafter, the department shall publish on the department’s internet website, a list of the names of battery suppliers that are compliant with this article. The department shall list, as appropriate, the reported brands of vehicle traction batteries for each battery supplier.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A retailer, dealer, importer, or distributor shall monitor the department’s internet website to determine if a battery supplier, brand, or vehicle traction battery is in compliance with this article for that brand of vehicle traction battery.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A retailer, dealer, importer, or distributor shall not sell, distribute, offer for sale, or import a vehicle traction battery, manufactured on or after the publishing of the most recent list, in or into the state unless the battery supplier of the vehicle traction battery is listed as a compliant battery supplier.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This shall not apply to secondary handlers who return a vehicle traction battery to the vehicle from which it was removed and return that vehicle to its owner after repairs or other maintenance have been completed.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
If a vehicle manufacturer, or affiliate thereof, delivers to a dealer a vehicle or vehicle traction battery that cannot be sold pursuant to this article, upon request from the dealer, the
vehicle manufacturer, or affiliate thereof, shall buy back the vehicle or vehicle traction battery at the dealer’s cost. For this paragraph, “affiliate” shall have the same meaning as in Section 11713.3 of the Vehicle Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Notwithstanding any other provision of this article, upon identification of a noncompliant battery supplier, the department shall issue a notice of noncompliance to the battery supplier.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If the department determines a battery supplier is not in compliance with this article, the department shall remove the battery supplier, along with its brands of vehicle traction batteries, from the compliance list.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A battery supplier that is not listed on the department’s internet website that
demonstrates compliance with this article before the next list is posted by the department shall be added to the internet website list within five business days of becoming compliant.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Within 12 months of the effective date of the regulations and on or before July 1 of each year thereafter, the department shall publish on the department’s internet website a list of the names of qualified battery recyclers.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_1ED9A40C-3F94-4D14-A2F9-8315B22DAC21">
<ns0:Num>25235.11.</ns0:Num>
<ns0:LawSectionVersion id="id_FC887304-C455-4805-A2F3-E3451BE6A292">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Except as provided in subdivision (b), the department may impose civil or administrative penalties for a violation of this article pursuant to Article 8 (commencing with Section 25180).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A violation of this article is not subject to the criminal penalties set forth in Article 8 (commencing with Section 25180).
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_20AA7794-A417-4DBF-B7A4-BEBCF59C1071">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares that Section 3 of this act, which adds Section 25235.3 to the Health and Safety Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:</html:p>
<html:p>In order to ensure that the competitive market in the state for the manufacture and sale of vehicle traction batteries is not compromised, it
is necessary that confidential or proprietary information collected for the purpose of administering a stewardship program be confidential.</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_318F5F9C-6277-4FD0-8C3F-F9264927C0FD">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
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
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>
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