BILL NUMBER: SB 1020INTRODUCED BILL TEXT INTRODUCED BY Senator Monning FEBRUARY 14, 2014 An act to add Article 11.6. (commencing with Section 25243) to Chapter 6.5 of Division 20 of the Health and Safety Code, relating to hazardous waste. LEGISLATIVE COUNSEL'S DIGEST SB 1020, as introduced, Monning. Hazardous waste: photovoltaic panels: collection and recycling programs. (1) The Hazardous Waste Control Law, among other things, vests the Department of Toxic Substances Control with the authority to regulate the generation and disposal of hazardous waste. A violation of the Hazardous Waste Control Law is a crime. This bill would enact the California Photovoltaic Panel Collection and Recycling Act of 2014 in the Hazardous Waste Control Law and would require photovoltaic panel manufacturers, individually or collectively, or with photovoltaic panel vendors, to establish a program for the collection and recycling of end-of-life photovoltaic panels that meets specified criteria. The bill would require the Department of Toxic Substances Control to approve a program that meets those criteria and would prohibit a photovoltaic panel manufacturer that fails to establish an approved program from selling or offering for sale photovoltaic panels in the state, as specified. The bill would require the department to impose a reasonable annual administrative fee, as specified, and would provide for the deposit of the fees in the Photovoltaic Panel Collection Administration Account, which this bill would establish in the State Treasury. The bill would authorize the department to expend those fees, upon appropriation by the Legislature, to cover the department's costs to implement and enforce the bill's requirements, as specified. The bill would require a contractor removing end-of-life photovoltaic panels and a person who demolishes a building having end-of-life photovoltaic panels to take the panels to an appropriate location for collection and recycling. The bill would require the bidder on state contracts for the purchase or lease of solar energy systems to certify that the photovoltaic panels used are purchased from a photovoltaic panel manufacturer in compliance with the above requirements. Because a violation of the act would be a crime, this bill would impose a state-mandated local program. (2) 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: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Article 11.6 (commencing with Section 25243) is added to Chapter 6.5 of Division 20 of the Health and Safety Code, to read: Article 11.6. California Photovoltaic Panel Collection and Recycling Act of 2014 25243. This act shall be known, and may be cited, as the California Photovoltaic Panel Collection and Recycling Act of 2014. 25243.1. (a) The Legislature finds and declares all of the following: (1) California's policy, including the policies reflected in the California Solar Initiative (Chapter 8.8 (commencing with Section 25780) of Division 15 of the Public Resources Code), the state's net energy metering program, and the California Renewable Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code), has made California the leading state in the installation of solar energy systems by providing ratepayer-funded incentives to eligible solar energy systems, resulting in substantially increased utilization by homes, businesses, and utilities. (2) Existing solar energy systems use photovoltaic technology to capture sunlight and convert it into electricity until the end of their useful lives, estimated to be between 20 and 25 years. Today's most common solar photovoltaic technology is based on silicon semiconductors, and uses manufacturing processes and materials similar to those of the microelectronics industry. New technologies are lowering the manufacturing cost by using less semiconductor material and streamlining production. Many of these new technologies use toxic, explosive, corrosive, or potentially carcinogenic materials, such as cadmium and selenium. (3) The numerous renewable and customer-generated solar programs in California have led to a rapid expansion of solar energy systems and given rise to an emerging photovoltaic industry. It is critical to consider the potential environmental and public health impacts associated with end-of-life photovoltaic panels. (b) It is the intent of the Legislature to do all of the following: (1) Foster a comprehensive and innovative system for the reuse, recycling, and proper and legal disposal of end-of-life photovoltaic panels. (2) Establish a program that makes it convenient for consumers and the public to return and recycle photovoltaic panels, ensures the environmentally safe disposal of end-of-life photovoltaic panels, and provides a system that does not create an undue burden when a photovoltaic panel exceeds its useful life. (3) Ensure that the cost associated with the handling, recycling, and disposal of end-of-life photovoltaic panels shall be the responsibility of the photovoltaic panel manufacturers and vendors and consumers of solar energy systems, and not local governments or their service providers, state government, or taxpayers. (4) Reduce the likelihood of illegal disposal of hazardous materials, by ensuring that all costs associated with the proper management of end-of-life photovoltaic panels are internalized by the photovoltaic panel manufacturers and vendors and consumers of solar energy systems at or before the point of purchase, and not at the point of discard. (5) Provide flexibility to photovoltaic panel manufacturers and vendors to partner with each other and with those private and nonprofit business enterprises that currently provide collection and processing services to develop and promote a safe and effective end-of-life photovoltaic panel recycling system for California. (6) Provide for the collection and recycling of the maximum feasible number of end-of-life photovoltaic panels. (7) Encourage photovoltaic panel manufacturers and vendors to establish a cost-effective system for the recovery, reuse, recycling, and proper disposal of end-of-life photovoltaic panels, and to build on existing photovoltaic panel take-back and recycling programs. (c) It is further the intent of the Legislature that: (1) Photovoltaic panels, to the greatest extent feasible, should be designed for extended life, repair, and reuse. (2) Collection and recycling services should be provided for the maximum feasible number of end-of-life photovoltaic panels. 25243.2. For the purposes of the article, the following definitions shall apply: (a) "Consumer" means a purchaser or owner of a photovoltaic panel. "Consumer" includes a business, corporation, limited partnership, nonprofit organization, or governmental entity. (b) "End-of-life photovoltaic panel" means a photovoltaic panel that has been used and is removed from a building or facility in this state and is intended to be discarded. (c) "Photovoltaic panel manufacturer" or "manufacturer" means a business concern that manufactures and sells photovoltaic panels directly to a consumer or enters into an agreement to provide a solar energy system directly to a consumer. (d) "Photovoltaic panel vendor" or "vendor" means a business concern that retains ownership of photovoltaic panels and enters into an agreement with a consumer for the purpose of providing a solar energy system directly to a consumer, which agreement is commonly referred to as "third-party solar financing." (e) "Photovoltaic panel" means a device that is a part of a solar energy system having the primary purpose of providing nonthermal generation of electricity from solar energy. (f) "Program" means a system for the collection, transportation, reuse, recycling, and proper management of end-of-life photovoltaic panels. (g) "Solar energy system" means a nonthermal electrical generation system using solar energy and composed of one or more photovoltaic panels. 25243.3. (a) A photovoltaic panel manufacturer shall, individually or collectively with a group or organization of photovoltaic panel manufacturers, photovoltaic panel vendors, or both manufacturers and vendors, establish, finance, manage, and maintain a program in compliance with this article. (b) (1) A photovoltaic panel manufacturer that fails to comply with this article shall not sell or offer for sale in this state a photovoltaic panel. (2) The sales prohibition specified in paragraph (1) shall be effective on the 120th calendar day after the notice specified in subdivision (c) listing the photovoltaic panel manufacturer is posted on the department's Internet Web site and shall remain in effect until the photovoltaic panel manufacturer is no longer listed. (c) (1) On July 1, 2015, and on January 1 and July 1 of each year thereafter, the department shall post a notice on its Internet Web site listing photovoltaic panel manufacturers that are not in compliance with this article. (2) Upon a determination that a photovoltaic panel manufacturer listed pursuant to paragraph (1) is in compliance with this article, the department shall immediately remove that photovoltaic panel manufacturer from the list. 25243.4. A program established pursuant to this article shall do all of the following: (a) Collect and arrange for the management of end-of-life photovoltaic panels in compliance with this chapter and the regulations adopted pursuant to this chapter. (b) On and after July 1, 2015, provide accessible and convenient locations for consumers to drop off an end-of-life photovoltaic panel. (c) Either arrange for the pickup from dropoff locations, or pay for the costs of shipping, of the end-of-life photovoltaic panels provided pursuant to subdivision (b) for proper handling and management. (d) Undertake education and outreach efforts, including, but not limited to, all of the following: (1) One or more public service announcements promoting the proper management of end-of-life photovoltaic panels. Copies of the public service announcements shall be provided to the department and the Department of Resources Recycling and Recovery for their use and promotion. (2) A publicly accessible Internet Web site that contains templates of educational materials in a form and format that can be easily downloaded. A link to this Internet Web site shall be provided to the department and to the Department of Resources Recycling and Recovery. (3) Methods to engage other stakeholders, such as waste, demolition, and installation organizations, as well as appropriate state agencies and local governments, to secure support and participation that encourages proper management of end-of-life photovoltaic panels throughout California. (4) Strategies to work with California utilities involving the installation or replacement of solar energy systems and to encourage their participation in the collection and proper management of end-of-life photovoltaic panels. These strategies may include the inclusion of an educational insert in their customers' utility bills. (5) Contacting other photovoltaic panel manufacturers in California and encouraging their support and participation in educating their customers on the proper management of end-of-life photovoltaic panels. (e) Develop, and update as necessary, education and other outreach materials aimed at solar energy system contractors, demolition contractors and their associations, utilities, and consumers. These materials shall include, but are not limited to, one or more of the following: (1) Signage that is prominently displayed and easily visible to consumers and installers. (2) Written materials and templates of materials for reproduction by photovoltaic panel manufacturers and vendors that are to be provided to the consumer at the time of purchase, delivery, or both purchase and delivery of a solar energy system. The materials shall include information on the improper disposal of photovoltaic panels, the proper management of end-of-life photovoltaic panels, and the options for proper collection. (3) Advertising and other promotional materials, or both, that include references to the collection opportunities. (f) Provide incentives and education to contractors, service technicians, and consumers to encourage the return of end-of-life photovoltaic panels. (g) On or before April 1, 2016, and on or before April 1 annually thereafter, submit a report to the department covering the one-year period ending December 31 of the previous calendar year. Each report shall be posted on the photovoltaic panel manufacturer's or program's Internet Web site. The annual report shall include all of the following: (1) The number of end-of-life photovoltaic panels collected by the photovoltaic panel manufacturer, group, or organization in California during the previous calendar year. (2) The estimated total amount of hazardous waste in the collected end-of-life photovoltaic panels. (3) An evaluation of the effectiveness of the program. (4) Commencing with the report due on April 1, 2019, a comparison to the performance requirements for collection established pursuant to subdivision (b) of Section 25243.6. (5) An accounting of the program administrative costs, including a copy of Internal Revenue Service Form 990 for a nonprofit organization's program. For a for-profit organization's program, the photovoltaic panel manufacturer or vendor, or group of photovoltaic panel manufacturers or vendors operating the program, shall submit independently audited financial statements detailing revenues and a full accounting of administrative costs incurred. (6) A description of the outreach strategies employed to increase participation and collection rates. (7) Examples of outreach and educational materials used. (8) Names and locations of any accessible collection locations. (9) The number of end-of-life photovoltaic panels collected at each collection location. (10) The Internet Web site address where the annual report may be viewed online. (11) A description of how end-of-life photovoltaic panels were managed. (12) Modifications that the photovoltaic panel manufacturer, group, or organization is proposing to make in its program. 25243.5. (a) A photovoltaic panel manufacturer or a group or organization of manufacturers or vendors or both, as described in subdivision (a) of Section 25243.3, shall submit its program to the department for approval. (b) The department shall approve the program if the program complies with the criteria set forth in Section 25243.4. 25243.6. (a) The department may order a photovoltaic panel manufacturer, or a group or organization of photovoltaic panel manufacturers or vendors, or both, operating a program, to revise its program and to undertake actions to comply with this article. (b) On or before January 1, 2016, the department shall adopt regulations for both of the following: (1) To develop performance requirements that specify reasonable and feasible collection rates expressed as a percentage of photovoltaic panels sold in the state by the photovoltaic panel manufacturer, group, or organization. (2) To establish a methodology for the calculation of the number of end-of-life photovoltaic panels that annually become waste. (c) (1) The photovoltaic panel manufacturer or group or organization operating a program shall pay the department an annual administrative fee pursuant to paragraph (2). (2) The department shall impose a fee in a reasonable amount that is sufficient to cover the department's costs of administering and enforcing this article with respect to the photovoltaic panel manufacturers or groups or organizations operating a program, including regulatory costs incurred by the department. (d) The Photovoltaic Panel Collection Administration Fund is hereby established in the State Treasury. All fees collected by the department pursuant to this section shall be deposited in the Photovoltaic Panel Collection Administration Fund and may be expended by the department, upon appropriation by the Legislature, to cover the department's costs to implement and enforce this article with respect to the photovoltaic panel manufacturers or groups or organizations operating a program. 25243.7. A contractor that removes an end-of-life photovoltaic panel shall handle the end-of-life photovoltaic panel in accordance with all applicable regulations adopted pursuant to this chapter, and take the end-of-life photovoltaic panel to an appropriate location for collection and recycling in accordance with those regulations. 25243.8. A person that demolishes a building having a photovoltaic panel shall remove the photovoltaic panel from the building prior to demolition in accordance with all applicable regulations adopted pursuant to this chapter, and take the material to a location that is authorized to collect end-of-life photovoltaic panels. 25243.9. (a) A state agency that purchases or leases solar energy systems shall require each prospective bidder to certify that the photovoltaic panels for the solar energy system are obtained from a photovoltaic panel manufacturer that is in compliance with this article. (b) Notwithstanding any other law, a bidder that fails to provide the certification pursuant to subdivision (a) shall be deemed a nonresponsive bidder not eligible to be awarded the contract for the procurement or leasing of solar energy systems. (c) The bid solicitation documents shall specify that the prospective bidder is required to cooperate fully in providing reasonable access to its records and documents demonstrating compliance with this section. (d) In addition to other penalties, a person awarded a contract that is found to have provided a false certification is subject to all of the following: (1) The contract awarded shall be voided by the state agency to which the solar energy system was provided. (2) The contractor shall be ineligible to bid on other state contracts for a period of three years. (3) The contractor shall be subject to the disgorgement of any money, property, or benefit obtained by the contractor as a result of violating this section, as ordered by a court in the interest of justice. SEC. 2. 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.