Vehicle traction batteries.

Regulatory authority moved from the Department of Toxic Substances Control (DTSC) under hazardous waste laws to the State Air Resources Board (ARB). The bill now adds Part 11 (Section 44480) to Division 26 of the Health and Safety Code instead of Article 11.3 (Section 25235) to Chapter 6.5 of Division 20.

Definitions for 'auctioneer' and 'salvage disposal auction' were removed, eliminating their specific reporting obligations under the bill.

The state-mandated local program designation changed from 'yes' to 'no,' meaning the bill no longer imposes costs on local governments requiring state reimbursement.

Funding changed from battery suppliers paying DTSC's actual and reasonable regulatory costs to a tiered fee schedule paid to ARB starting July 1, 2029, sufficient to cover full personnel, administrative, regulatory, and loan and interest costs. The fee is based on each supplier's share of total in-state vehicle registrations with traction batteries from 10 years prior.

Moneys in the Vehicle Traction Battery Recovery Fund are now available only to implement and enforce the provisions and to reimburse specified loans and interest (previously just implementation and enforcement).

New requirement that starting July 1, 2028, battery suppliers must equip new vehicle traction batteries sold in the state with a permanent label containing specified information. Remanufacturers must rebrand and relabel remanufactured batteries.

Battery suppliers and remanufacturers must register with the State Air Resources Board within 90 days after chaptering and update registration annually and upon request.

The State Air Resources Board must adopt regulations to implement and enforce the provisions no later than July 1, 2031.

The survey requirement was changed: instead of DTSC studying orphaned batteries, CalRecycle must conduct a survey on program functioning by January 1, 2030, and every 5 years thereafter, posting a summary of findings online.

The definition of 'Department' changed from DTSC to the Department of Resources Recycling and Recovery (CalRecycle). A new definition of 'Board' was added meaning the State Air Resources Board. The 'remanufacturer' definition was broadened from 'a secondary handler who engages in remanufacturing' to 'a person, other than the battery supplier regarding its own batteries, who engages in remanufacturing.'

The 'battery supplier' definition was revised: the exception for secondary handlers who remanufacture was removed, and new paragraphs were added addressing aftermarket battery suppliers (vehicle manufacturer for OEM replacements, trademark owner for aftermarket, or importer/distributor/retailer as fallback).

The 'responsible end-of-life management' definition was revised to reference 'dispositioned' batteries that are no longer suitable for use or repurposing being directed for recycling by a battery recycler, replacing the prior reference to 'qualified battery recycler.'

Criminal penalties under hazardous waste control laws were removed. The bill now authorizes only administrative penalties for violations. Reports and records must still be provided under penalty of perjury.

The defined term 'qualified facility' (which meant a qualified battery recycler or secondary user) was eliminated entirely. All references throughout the bill were replaced with the more specific terms 'secondary user' or 'qualified battery recycler' as appropriate.

'Responsible end-of-life management' was broadened: the old definition required that a battery 'cannot be repaired, reused, remanufactured, or repurposed' before it needed to be sent to a qualified battery recycler. The new definition simply requires that a battery 'eligible to be recycled pursuant to the battery management hierarchy' be sent to a qualified battery recycler.

The 'qualified battery recycler' definition was broadened by removing the word 'elemental' before 'components' and removing the phrase 'that include, but are not limited to, such as,' making it easier for facilities to qualify.

New Section 25235.4 requires each battery supplier to register with the department within 30 days of regulations taking effect, providing contact information and a list of vehicle traction battery types and brands sold or distributed in the state, with annual updates.

New regulatory requirement (Section 25235.3(b)(5)) that qualified battery recyclers must annually report where treatment takes place, recycling efficiency data, material recovery rates, and yield of final output fractions of lithium, cobalt, nickel, copper, or other relevant metals.

New Section 25235.3(g) requires the department's regulations to encourage recycling that minimizes hazardous waste generation, greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts, and to include criteria excluding technologies that produce significant amounts of hazardous waste.

New Section 25235.3(d) requires the department to annually post aggregated data on its website about the disposition of vehicle traction batteries removed from vehicles (reusing, remanufacturing, repurposing, recycling counts), without disclosing proprietary information.

New Section 25235.3(e) requires regulations to include a certification process for qualified battery recyclers by facility, including an appeals process, reasonable standard of review, ability to cure deficiencies, mandatory safety training requirements, and reassessment/recertification timelines.

New Section 25235.3(f) requires the department to review and compare any federal battery labeling requirements against state regulations and revise as necessary for consistency.

Removed a requirement that secondary handlers receiving a vehicle from a salvage disposal auction that had not reported the unique identifier must report it within 30 days of receiving the vehicle.

The frequency of the orphaned battery study was changed from every 3 years to every 5 years (still starting on or before January 1, 2030).

The reporting structure in Section 25235.3(b) was reorganized into numbered items, and the state of health data provision now explicitly requires the department to conduct a public workshop at least 12 months before requiring battery suppliers to make state of health data available.

A new Article 4 (Section 42451 et seq.) is added to the Public Resources Code alongside the existing Health and Safety Code article, giving the bill a dual-code structure and bringing CalRecycle into the regulatory framework.

The exemption from battery supplier responsibility is expanded to cover batteries that have been disassembled into modules or cells, or are contained within a vehicle or product directly owned or controlled by an insurance company.

The 'Department' definition changes from Department of Toxic Substances Control to include Resource Recycling and Recovery (CalRecycle), shifting primary regulatory authority.

New defined terms added: 'battery recycler' (distinct from 'qualified battery recycler'), 'dispositioned/dispositioning,' 'education and outreach plan,' 'recovery' (extraction of critical minerals), 'remanufacturer,' 'state of charge,' and 'unwanted vehicle traction battery.'

'Secondary handler' is expanded to include solid waste disposal facilities and household hazardous waste facilities, and the list of covered purposes now includes selling, dispositioning, and reusing.

'Orphaned battery' is broadened to include any unwanted vehicle traction battery that has not been collected or managed in accordance with the battery management hierarchy, not just batteries whose supplier cannot be identified.

'Responsible end-of-life management' is redefined to reference 'dispositioning' and requires that a battery no longer suitable for use or repurposing be directed for recycling by a battery recycler.

'Recycle/recycling' now references recovery of critical minerals present in vehicle traction battery feedstock using one or more battery recyclers, and adds a reference to federal RCRA sham recycling legitimacy criteria (40 CFR 260.43).

'Remanufacturing' is expanded to describe a standardized industrial process with specific technical specifications including engineering, quality, and testing standards.

The battery management hierarchy and policy statement now include 'repurpose' as a first-tier option alongside reuse, repair, and remanufacture.

Battery suppliers must now retrieve unwanted vehicle traction batteries within 60 days of notice from a secondary handler (or 30 days from a solid waste or household hazardous waste facility), unless mutually agreed longer terms apply or force majeure occurs.

For model year 2028 and later vehicles, battery suppliers must provide state-of-health data through the vehicle's in-vehicle display or a nonproprietary OBD scan tool (with an exception in subparagraph B not fully shown).

The prior requirement for a study on abandonment of orphaned batteries is replaced with a survey on the functioning of the program, with a summary and other specified information posted on the department's website.

Remanufacturers and battery recyclers are now explicitly listed among entities required to report information to the department, in addition to auctioneers and salvage disposal auctions.

'Battery supplier' now explicitly excludes a person that sells a used vehicle into the state, in addition to the existing exclusion for secondary handlers.

The startup loan source changes from the Greenhouse Gas Reduction Fund to an unspecified fund, removing the specific funding mechanism.

New subdivision (d) in Section 25235.2: A secondary handler who remanufactures a vehicle traction battery is now considered the battery supplier and subject to all obligations in subdivision (a), including funding collection costs and ensuring responsible end-of-life management. They may return the battery to the original supplier only if they have a contractual relationship providing for retention of responsibility. They must also rebrand and label the battery so it is easily identified as remanufactured by that handler.

The secondary handler obligation in subdivision (c)(2) was modified from an unconditional duty to ensure responsible end-of-life management to 'Except as specified in subdivision (d), ensure the responsible end-of-life management,' carving out the new remanufacturer pathway where they may return the battery to the original supplier under contract.

The definition of 'battery supplier' in paragraph (6) now includes an exception: secondary handlers are excluded from being battery suppliers EXCEPT when they remanufacture a vehicle traction battery pursuant to the new subdivision (d). This means remanufacturers take on full supplier liability.

The definition of 'vehicle traction battery' was narrowed by removing 'battery cells' - it now reads 'including battery modules that comprise a battery' instead of 'including the battery modules and battery cells that comprise a battery.' This may exclude standalone battery cells from the program's coverage.

The definition of 'repurposing' was narrowed. It previously covered 'any operation to a vehicle traction battery that results in the complete battery, or any battery modules or battery cells thereof, being used to fulfill a different use.' It now simply means 'a vehicle traction battery being used to fulfill a different use than the one for which the battery was originally designed.' The removal of 'any operation' and the reference to individual modules or cells narrows the scope.

The funding mechanism was changed from authorizing the Director of Finance to make a loan specifically 'from the Greenhouse Gas Reduction Fund' to making a loan 'from the Greenhouse Gas Reduction Fund an unspecified fund.' This broadens the potential source of startup and regulatory funding beyond just the Greenhouse Gas Reduction Fund.

Added a new definition for 'battery module' (an array of multiple battery cells connected in series or parallel and encased in one structure) and replaced all prior references to 'module' with the defined term 'battery module' throughout the bill.

The definition of 'recycle/recycling' was expanded to explicitly exclude smelting, energy generation, fuel production, and other forms of disposal. This narrows what activities qualify as recycling under the program.

Added a new definition for 'reuse' meaning the use of a propulsion battery in another vehicle that does not require modification to the battery.

The definition of 'secondary handler' was changed from 'any entity' to 'any commercial entity,' narrowing who is subject to secondary handler obligations. Also added clarifying language that this may include automobile dismantlers and automotive repair dealers.

The definition of 'remanufacturing' was expanded to include 'a battery, battery cells, or battery modules or packs' (previously just 'battery modules or packs') and added the requirement that the result be 'for use in the same application as the one for which the battery was originally designed.'

Changed the reporting obligation for battery suppliers, secondary users, secondary handlers, auctioneers, salvage disposal auctions, and qualified battery recyclers from general reporting to 'annually report,' establishing a clear annual frequency.

Changed the orphaned battery study posting requirement from every 3 years to every 5 years thereafter (still with an initial deadline of January 1, 2030).

The secondary handler return obligation was narrowed: a battery supplier may now only require a secondary handler 'who owns and possesses' a vehicle to send it back, rather than any secondary handler 'in possession of' the vehicle.

The definition of 'returned to its battery supplier' was expanded to include sending a battery to 'a qualified facility secondary user or qualified battery recycler determined by the battery supplier,' and a new sub-clause was added defining 'offered' as notifying the battery supplier that a battery needs responsible end-of-life management.

Assembly Member Bauer-Kahan was added as a coauthor of the bill.

Section 25235.3(b)(5) changed from 'the department may require qualified battery recyclers to report where treatment of vehicle traction batteries takes place along with data on recycling efficiency, recovery of materials, and yield of final output fractions' to 'the department may shall require...' The double modal 'may shall' is contradictory language that likely reflects an intent to make this reporting obligation mandatory (shall) rather than discretionary (may), but the amendment as drafted contains a drafting error.