BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 489


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           SENATE THIRD READING


          SB  
          489 (Monning)


          As Amended  July 16, 2015


          Majority vote


          SENATE VOTE:  35-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Environmental   |7-0  |Alejo, Dahle,         |                    |
          |Safety          |     |Gallagher, Gonzalez,  |                    |
          |                |     |Gray, McCarty, Ting   |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |16-0 |Gomez, Bigelow,       |                    |
          |                |     |Bloom, Bonta,         |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Daly, Eggman,         |                    |
          |                |     |Gallagher,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Jones, Quirk, Rendon, |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |








                                                                     SB 489


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          SUMMARY:  Authorizes photovoltaic modules (known as solar  
          panels) to be managed as universal waste.  Specifically, this  
          bill:  


          1)States the intent of the Legislature to foster a comprehensive  
            and innovative system for the reuse, recycling and proper and  
            legal disposal of end-of-life photovoltaic modules. 


          2)States the intent of the Legislature to encourage the  
            photovoltaic module industry to develop a plan for recycling  
            end-of-life photovoltaic modules in order to make end-of-life  
            management of photovoltaic modules convenient for consumers  
            and the public and to ensure the recovery and recycling of  
            photovoltaic modules. 


          3)Authorizes the Department of Toxic Substances Control (DTSC)  
            to designate end-of-life photovoltaic modules that are  
            identified as hazardous waste as a universal waste and subject  
            those modules to universal waste management. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill will likely result in potential one-time  
          cost for DTSC of approximately $27,000 (Hazardous Waste Control  
          Account) to prepare the documents required to resubmit the  
          universal waste regulations for Photovoltaic (PV) modules.


          COMMENTS:  


          Need for this bill:  According to the author, "PV modules,  
          commonly referred to as solar panels, have varying useful lives  








                                                                     SB 489


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          with some estimates ranging from 25-40 years.  As part of  
          California's effort to invest in solar installation, it is  
          critical to consider its inevitable waste stream by making it  
          easier for end-users to properly dispose and recycle these PV  
          modules, promote efforts that provide a comprehensive system for  
          take-back and recycling, and discourage disposal to landfills?


          "While some PV module companies may provide take-back and  
          recycling services for their end-of-life PV modules, there is no  
          comprehensive industry standard or system in place to deal with  
          all PV modules?


          "SB 489 allows for a universal waste designation for hazardous  
          waste PV modules, which will provide flexibility for companies  
          or third-parties to develop more effective and cost efficient  
          methods of handling PV modules within a take-back and recycle  
          program.  Universal waste designation relieves the burden of  
          meeting some of the state's rigorous hazardous waste laws and  
          allows the waste to be streamlined in existing systems for  
          proper management similar to electronic devices, batteries, or  
          CRVs [cathode ray tubes]."


          Life expectancy of a solar panel:  According to the Solar Energy  
          Industries Association, "[Solar panels] are designed to last  
          more than 25 years, and many manufacturers back their products  
          with performance guarantees backed by warranties.  The lifespan  
          of a [solar panel] is approximately 20-30 years, while the  
          lifetime of an inverter is approximately 10 years. Therefore,  
          many solar products have not yet reached end-of-life, and in  
          fact, panels installed in the early 1980s are still performing  
          at levels nearly equal to the installation performance level.  
          Thus, even accounting for the dramatic growth of the industry,  
          annual [solar panel] waste will not exceed 10,000 tons until  
          after 2014, and will not exceed 100,000 tons until after 2017."










                                                                     SB 489


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          Solar energy is ever-growing:  Under California law, the  
          California Renewable Portfolio Standard (RPS) requires 33% of  
          all of California's energy to be generated from eligible  
          renewable energy resources, including solar energy, by 2020.   
          Governor Brown made statements in his January 5, 2015, Inaugural  
          Address proposing to increase, from one-third to 50% our  
          electricity derived from renewable sources, and there are  
          multiple pending legislative proposals to codify that proposal.   
          If an increase in the RPS mandate is successful, there will  
          likely be a significant uptick in solar panel installations and,  
          therefore, eventual solar panel disposal. 


          Current regulatory thinking on governing solar panel disposal:   
          Given that solar panels can be recycled and that portions of the  
          panels can be reclaimed for use in new panels, or used in other  
          products such as fiberglass, DTSC proposed amending its  
          regulations to manage solar panels that are a hazardous waste as  
          a universal waste.  


          However, on October 8, 2013, the Office of Administrative Law  
          (OAL) disapproved the proposed regulations citing the expired  
          statute authorizing DTSC to adopt new universal waste  
          regulations.


          After consideration of OAL's concerns, DTSC decided to withdraw  
          the proposed solar panel regulations package.  DTSC plans to  
          pursue obtaining authorization from the United States EPA to  
          implement the federal Universal Waste Regulations in California  
          - a process that was initiated by DTSC in 2003, but was never  
          completed.  Upon completion of the application for RCRA  
          Authorization and approval by the United States Environmental  
          Protection Agency, DTSC intends to reintroduce this rulemaking  
          for Proposed Management Standards for Hazardous Waste  
          Photovoltaic Modules. 










                                                                     SB 489


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          Extended producer responsibility (EPR):  This bill is  
          essentially calling on solar panel manufacturers to establish an  
          EPR framework for spent solar panels. 


          By shifting costs and responsibilities of product disposal to  
          producers and others who directly benefit, EPR provides an  
          incentive to eliminate waste and pollution through product  
          design changes. 




          Analysis Prepared by:                                             
                          Paige Brokaw / E.S. & T.M. / (916) 319-3965  FN:  
          0001480