House File 726 - Introduced HOUSE FILE 726 BY KNIFF MCCULLA A BILL FOR An Act providing for the implementation of battery stewardship 1 plans, making appropriations, and providing penalties. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2742YH (1) 91 sb/js

H.F. 726 Section 1. Section 22.7, Code 2025, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 76. Proprietary information obtained 3 by the department of natural resources pursuant to section 4 455D.10A. 5 Sec. 2. Section 455D.10A, Code 2025, is amended by striking 6 the section and inserting in lieu thereof the following: 7 455D.10A Battery stewardship. 8 1. Definitions. 9 a. “Battery-containing product” means a product 10 that contains or is packaged with a covered battery. 11 “Battery-containing product” does not include computers, 12 small-scale servers, computer monitors, electronic keyboards 13 and mice, printers, fax machines, scanners, televisions, 14 digital video disc players and recorders, video cassette 15 recorders, digital converter boxes, cable receivers, satellite 16 receivers, portable digital music players, or video game 17 consoles. 18 b. “Battery stewardship organization” means a producer 19 that directly implements a plan approved by the department 20 under this section or a nonprofit organization designated by a 21 producer or group of producers to implement such a plan. 22 c. “Collection rate” means the percentage calculated by 23 dividing the total weight of covered batteries collected in the 24 state by a battery stewardship organization in a calendar year 25 by the average annual weight of covered batteries estimated to 26 have been sold in the state by all producers during that same 27 calendar year and the previous two calendar years. 28 d. “Collection site” means a designated location that 29 is approved under a battery stewardship plan where portable 30 batteries or medium format batteries may be dropped off by 31 members of the public. Collection sites shall be operated 32 in accordance with the applicable requirements of a battery 33 stewardship organization’s approved battery stewardship plan. 34 However, collection sites are independent of the battery 35 -1- LSB 2742YH (1) 91 sb/js 1/ 24

H.F. 726 stewardship organizations. 1 e. “Covered battery” means a portable battery or a medium 2 format battery. “Covered battery” does not include any of the 3 following: 4 (1) A battery contained in a medical device that is 5 regulated under the federal Food, Drug, and Cosmetic Act, 21 6 U.S.C. §301 et seq., and that is not designed or marketed for 7 sale or resale at retail locations for personal use. 8 (2) A battery that contains an electrolyte as a free liquid 9 or a product that contains such a battery. 10 (3) A lead acid battery or a product that contains such a 11 battery. 12 (4) A battery that is a component of a motor vehicle or that 13 is intended for use exclusively in motor vehicles. 14 (5) A battery in a product that is not intended or designed 15 to be easily removed by the user with no more than commonly 16 used household tools. 17 f. “Medium format battery” means any of the following: 18 (1) For batteries that are not capable of being recharged, 19 a battery that weighs more than four and four-tenths pounds but 20 not more than twenty-five pounds. 21 (2) For rechargeable batteries, a battery that weighs more 22 than eleven pounds, or that has a rating of more than three 23 hundred watt-hours, or both, but that does not weigh more than 24 twenty-five pounds or have a rating of more than two thousand 25 watt-hours. 26 g. “Plan” means the battery stewardship plan. 27 h. “Portable battery” means any of the following: 28 (1) For batteries that are not capable of being recharged, a 29 battery that weighs no more than four and four-tenths pounds. 30 (2) For rechargeable batteries, a battery that weighs no 31 more than eleven pounds and that has a rating of no more than 32 three hundred watt-hours. 33 i. “Primary battery” means a battery that is not capable of 34 being recharged. 35 -2- LSB 2742YH (1) 91 sb/js 2/ 24

H.F. 726 j. (1) “Producer” means a person that sells, offers 1 for sale, or distributes for sale a covered battery or 2 battery-containing product in or into the state in accordance 3 with the following: 4 (a) If the covered battery or battery-containing product is 5 sold under a brand of the battery’s or product’s manufacturer, 6 the person that manufactures the battery or product. 7 (b) If the covered battery or battery-containing product is 8 sold under a retail brand or under a brand owned by a person 9 other than the battery’s or product’s manufacturer, the person 10 that owns the brand. 11 (c) If subparagraph divisions (a) and (b) do not apply, 12 the person that is the licensee of a brand or trademark under 13 which the covered battery or battery-containing product is 14 sold, offered for sale, or distributed for sale in or into this 15 state, regardless of whether the trademark is registered in 16 this state. 17 (d) If subparagraph divisions (a) through (c) do not 18 apply to any person within the United States, the person 19 that is the importer of record for the covered battery or 20 battery-containing product into the United States for the 21 purpose of selling, offering for sale, or distributing for sale 22 the battery or product in or into this state. 23 (e) If subparagraph divisions (a) through (d) do not apply 24 to any person with a commercial presence in this state, the 25 person who first sells, offers for sale, or distributes for 26 sale the covered battery or battery-containing product in or 27 into this state. 28 (2) “Producer” does not include a person that only sells, 29 offers for sale, or distributes for sale a battery-containing 30 product if the battery is supplied by another producer that is 31 directly implementing a plan approved by the department under 32 this section or that has designated a nonprofit organization to 33 implement such a plan. 34 k. “Rechargeable battery” means a battery that contains one 35 -3- LSB 2742YH (1) 91 sb/js 3/ 24

H.F. 726 or more voltaic or galvanic cells electrically connected to 1 produce electric energy and that is designed to be recharged. 2 l. “Recycling” means preparing batteries for use in 3 manufacturing processes or for recovery of usable materials and 4 delivering the materials for use. Recycling does not include 5 destruction by incineration or other processes or land disposal 6 of recyclable materials and does not include reuse, repair, or 7 any other process through which batteries are returned in their 8 original form. 9 m. “Recycling efficiency rate” means the percentage 10 calculated by dividing the weight of components and materials 11 recycled by a battery stewardship organization by the weight 12 of covered batteries collected by the battery stewardship 13 organization. 14 n. “Retailer” means a person that sells or offers for sale 15 a covered battery in or into this state. 16 2. Prohibitions. 17 a. On and after January 1, 2028, a producer or retailer 18 shall not sell, offer for sale, or distribute for sale in 19 or into the state any covered battery or battery-containing 20 product unless the producer of the covered battery or 21 battery-containing product is operating under a plan approved 22 by the department under this section. This paragraph does not 23 apply to a retailer if the internet site maintained by the 24 department under subsection 8 lists, as of the date a battery 25 or product is made available for retail sale, the producer or 26 brand of the battery or product as being covered by a plan 27 approved under this section. 28 b. On and after January 1, 2028, a producer or retailer 29 shall not sell, offer for sale, or distribute for sale in 30 or into the state any covered battery or battery-containing 31 product unless the covered battery or battery in the 32 battery-containing product is marked with an identification of 33 the producer of the battery. This paragraph does not apply if 34 the battery is less than one-half inch in diameter or does not 35 -4- LSB 2742YH (1) 91 sb/js 4/ 24

H.F. 726 contain a surface with a length that exceeds one-half inch. 1 c. On and after January 1, 2029, a producer or retailer 2 shall not sell, offer for sale, or distribute for sale in 3 or into the state any covered battery or battery-containing 4 product unless the covered battery or battery in the 5 battery-containing product is marked to ensure proper 6 collection and recycling by identifying the chemistry of the 7 battery and including an indication that the battery should not 8 be disposed of as household waste. 9 d. A producer, retailer, or battery stewardship organization 10 shall not charge a point-of-sale fee to consumers to cover the 11 costs of implementing a plan approved under this section. 12 3. Battery stewardship plan. 13 a. By January 1, 2027, each producer shall submit a 14 battery stewardship plan to the department for review. A plan 15 submitted to the department shall have a term of no more than 16 five years and shall include all of the following: 17 (1) The names and contact information for each producer 18 covered under the plan. 19 (2) The brands of all of the covered batteries that the 20 producer sells, offers for sale, or distributes for sale in or 21 into this state. All such brands shall be covered by the plan. 22 (3) Performance goals under the plan, and a process for 23 achieving these goals. Performance goals shall include target 24 collection rates for rechargeable batteries and for batteries 25 that are not capable of being recharged; target recycling 26 efficiency rates of at least sixty percent for rechargeable 27 batteries and seventy percent for batteries that are not 28 capable of being recharged; and goals for public awareness, 29 convenience, and accessibility. The collection rate goals for 30 each of the first three years of implementation of the battery 31 stewardship organization’s approved plan shall be based on the 32 estimated total weight of covered batteries that have been 33 sold in this state in the previous three calendar years by the 34 producers participating in the plan. 35 -5- LSB 2742YH (1) 91 sb/js 5/ 24

H.F. 726 (4) A process for making retailers aware of the requirement 1 under subsection 2. 2 (5) Consumer awareness goals and a description of the 3 education and outreach strategy that the battery stewardship 4 organization will implement to promote participation in 5 the organization’s approved plan and to provide information 6 necessary for the effective participation of consumers, 7 retailers, and others. 8 (6) A process for making available to collection sites, 9 for voluntary use, signage, written materials, and other 10 promotional materials to inform consumers of the available 11 end-of-life management options for covered batteries collected 12 under the battery stewardship organization’s approved plan. 13 (7) Collection site safety training procedures related to 14 covered battery collection activities at collection sites, 15 including a description of operating protocols to reduce risks 16 of spills or fires, response protocols in the event of a spill 17 or fire, and protocols for safe management of damaged batteries 18 that are returned to collection sites. 19 (8) A method for fully funding the battery stewardship 20 organization’s approved plan in a manner that equitably 21 distributes the plan’s costs among the producers that are part 22 of the battery stewardship organization; or, for producers that 23 are not a member of a battery stewardship organization and that 24 implement a plan individually, a method for fully funding the 25 producer’s approved plan. 26 (9) Provisions for collecting covered batteries at no cost, 27 regardless of the brand or producer of the covered battery, on 28 a continuous, convenient, visible, and accessible basis. 29 (10) The addresses of collection sites that will accept 30 covered batteries under the plan, and the criteria used to 31 determine whether an entity may serve as a collection site. 32 (11) The names of proposed service providers, including 33 sorters, transporters, and processors, to be used for the final 34 disposition of batteries. 35 -6- LSB 2742YH (1) 91 sb/js 6/ 24

H.F. 726 (12) Provisions for recordkeeping, tracking, and 1 documenting the management and disposition of collected covered 2 batteries. 3 (13) An explanation for any delay anticipated by the battery 4 stewardship organization in managing medium-format batteries. 5 b. A battery stewardship organization shall pay a fee of 6 one hundred thousand dollars to the department upon approval 7 of a plan under this section or on January 1, 2027, whichever 8 is later, and a fee of one hundred thousand dollars annually 9 thereafter. The annual fee amount shall be reviewed and, if 10 necessary, adjusted every five years by the general assembly 11 to ensure the department maintains adequate funding to fully 12 complete the department’s duties described in subsection 8. 13 Fees paid under this paragraph shall be deposited into the 14 battery stewardship account of the groundwater protection fund 15 created in section 455E.11. 16 c. A battery stewardship organization shall submit a new 17 plan to the department for approval no less than every five 18 years. If the performance goals under the previously approved 19 plan have not been met, the new plan shall include corrective 20 measures to be implemented by the battery stewardship 21 organization to meet those performance goals, which may include 22 improvements to the collection site network or increased 23 expenditures dedicated to education and outreach. 24 d. A battery stewardship organization shall provide plan 25 amendments to the department for approval when proposing 26 material changes to the approved plan. 27 e. A battery stewardship organization operating under a 28 plan approved by the department under this section shall notify 29 the department within thirty days of a producer beginning or 30 ceasing participation in the battery stewardship organization, 31 or within thirty days of adding or removing a processor or 32 transporter under the approved plan. 33 f. The department may approve plans under this section from 34 more than one battery stewardship organization. The department 35 -7- LSB 2742YH (1) 91 sb/js 7/ 24

H.F. 726 may approve plans that equitably share the costs, among other 1 battery stewardship organizations, of implementing the parts of 2 those plans that benefit such organizations. 3 4. Cost and reimbursement. A battery stewardship 4 organization implementing a plan approved under this section 5 shall do all the following: 6 a. Be responsible for all costs associated with implementing 7 the plan. 8 b. Reimburse local governmental units for demonstrable costs 9 incurred as a result of a local government facility or solid 10 waste facility serving as a collection site under the plan. 11 c. Collect charges from participating producers sufficient 12 to cover the costs of implementation, including battery 13 collection, transportation, and processing; education and 14 outreach; program evaluation; and payment of the annual fee to 15 the department under subsection 3, paragraph “b” . 16 5. Collection and management of covered batteries. 17 a. A battery stewardship organization implementing a plan 18 approved under this section shall do all of the following: 19 (1) Provide for the collection of all covered batteries 20 from any person, regardless of the chemistry or brand of the 21 battery, on a free, continuous, convenient, visible, and 22 accessible basis. 23 (2) Provide to collection sites under the plan, at no 24 cost to the sites, suitable collection containers for covered 25 batteries that are segregated from other waste; or make 26 alternative arrangements for the collection of such batteries 27 at the site, with the agreement of the collection site. 28 (3) Ensure that medium format batteries are collected only 29 at household hazardous waste collection sites or other staffed 30 collection sites that meet applicable federal, state, and local 31 requirements for managing medium format batteries. 32 (4) Provide for the collection of damaged and defective 33 batteries, by persons trained to handle and ship such 34 batteries, at collection sites and at each permanent household 35 -8- LSB 2742YH (1) 91 sb/js 8/ 24

H.F. 726 hazardous waste facility and each household hazardous waste 1 collection event provided by the department. As used in this 2 subparagraph, “damaged and defective batteries” means batteries 3 that have been damaged or that have been identified by the 4 manufacturer as being defective for safety reasons, and that 5 have the potential to produce a dangerous evolution of heat, 6 fire, or short circuit. 7 (5) Ensure statewide collection opportunities for all 8 covered batteries. 9 (6) Coordinate activities with others, such as electronic 10 waste recyclers and other plan operators, to provide efficient 11 delivery of services and avoid unnecessary duplication of 12 effort and expense. A battery stewardship organization shall 13 use existing public and private waste collection services 14 and facilities, transporters, consolidators, processors, and 15 retailers, if cost effective, mutually agreeable, and otherwise 16 practical. 17 (7) For portable batteries, provide all of the following no 18 later than December 31, 2028: 19 (a) Permanent collection at all regional collection centers 20 and satellite facilities, as defined under section 455F.1, that 21 meet the operating requirements of an approved plan, unless the 22 facility declines to participate as a permanent collection site 23 for portable batteries. 24 (b) At least one permanent collection site within a 25 fifteen-mile radius for at least ninety-five percent of state 26 residents. 27 (8) For medium format batteries, provide all of the 28 following no later than December 31, 2028: 29 (a) Permanent collection at all regional collection centers 30 and satellite facilities, as defined under section 455F.1, that 31 meet the operating requirements of an approved plan, unless the 32 facility declines to participate as a permanent collection site 33 for medium format batteries. 34 (b) At least ten permanent collection sites that are 35 -9- LSB 2742YH (1) 91 sb/js 9/ 24

H.F. 726 reasonably dispersed in this state. 1 (c) A collection event at least once every three years in 2 each county that does not have a permanent collection site that 3 must provide for the collection of all medium format batteries, 4 including damaged and defective medium format batteries, as 5 described in subparagraph (4). 6 (9) Use as a collection site or the site of a collection 7 event the location of any entity that meets the criteria for 8 a collection site or collection event under an approved plan 9 and that requests to serve as a collection site or collection 10 event, up to the number of collection sites required to comply 11 with subparagraphs (7) and (8). 12 b. A battery stewardship organization implementing a plan 13 approved under this section may issue a warning to, suspend, 14 or terminate a collection site or service that does not comply 15 with the criteria under the approved plan or that poses an 16 immediate concern to health and safety. 17 c. A battery stewardship organization is not required to 18 provide for the collection of battery-containing products or 19 covered batteries that remain contained in a battery-containing 20 product at the time of delivery to a collection site or 21 collection event. A battery stewardship organization shall 22 collect recalled batteries. However, the battery stewardship 23 organization may seek reimbursement from the producer of 24 a recalled battery for the costs incurred in collecting, 25 transporting, or processing such batteries. 26 6. Education and outreach. 27 a. A battery stewardship organization implementing a plan 28 approved under this section shall do all of the following to 29 promote the implementation of the plan: 30 (1) Develop and maintain an internet site. 31 (2) Develop and distribute periodic press releases and 32 articles. 33 (3) Develop and place advertisements for use on social media 34 accounts or other relevant media platforms. 35 -10- LSB 2742YH (1) 91 sb/js 10/ 24

H.F. 726 (4) Develop promotional materials about the program and 1 about the restriction on disposing covered batteries under 2 subsection 11. 3 (5) Develop and distribute collection site safety training 4 procedures to collection sites to help ensure proper management 5 of covered batteries at collection sites. 6 (6) Develop and implement outreach and educational 7 resources that are conceptually, linguistically, and 8 culturally accurate for the communities served, including 9 through meaningful consultation with communities that bear 10 disproportionately higher levels of adverse environmental and 11 social justice impacts. 12 (7) Provide consumer-focused educational materials to 13 consumers, collection sites, manufacturers, distributors, and 14 retailers to promote the collection and recycling of covered 15 batteries. 16 (8) Provide safety information related to covered battery 17 collection activities to the operator of each collection site 18 used under the plan, including appropriate protocols to reduce 19 risks of spills or fires, to respond to a spill or fire, and to 20 manage collected damaged or defective batteries as defined in 21 subsection 5, paragraph “a” , subparagraph (4). 22 (9) Provide educational materials to the operator of each 23 collection site used under the plan for the management of 24 recalled batteries. 25 (10) Upon request by a retailer or other potential 26 collection site, provide education materials describing 27 collection opportunities for covered batteries. 28 (11) Coordinate with other battery stewardship 29 organizations implementing a plan approved under this section, 30 if applicable, in providing education and outreach under this 31 subsection. 32 (12) Conduct a survey, during the first year of implementing 33 an approved plan and every five years thereafter, of public 34 awareness of the provisions of this section. The battery 35 -11- LSB 2742YH (1) 91 sb/js 11/ 24

H.F. 726 stewardship organization shall share the results of the surveys 1 with the department. 2 7. Annual reporting. 3 a. No later than June 1, 2029, and each June 1 thereafter, 4 a battery stewardship organization implementing a plan approved 5 under this section shall submit to the department a report that 6 contains all of the following: 7 (1) An independent financial assessment of implementing the 8 plan, including a breakdown of the plan’s expenses, such as 9 collection expenses, recycling expenses, education expenses, 10 and overhead expenses. 11 (2) A summary financial statement documenting the 12 financing of the plan and an analysis of plan costs and 13 expenditures, including an analysis of the plan’s expenses, 14 such as collection, transportation, recycling, education, and 15 administrative overhead. The summary financial statement shall 16 be sufficiently detailed to provide transparency that funds 17 collected from producers are spent on plan implementation in 18 this state. 19 (3) The weight, by chemistry, of covered batteries 20 collected under the plan. 21 (4) The weight of materials recycled from covered batteries 22 collected under the plan, in total, and by method of battery 23 recycling. 24 (5) A calculation of the recycling efficiency rate under the 25 plan. 26 (6) A list of all facilities used in the processing or 27 disposition of covered batteries under the plan and, for 28 domestic facilities, a summary of any founded violations of 29 environmental laws and regulations during the previous three 30 years at each facility. 31 (7) For each facility used for the final disposition of 32 covered batteries under the plan, a description of how the 33 facility recycled or otherwise managed batteries and battery 34 components. 35 -12- LSB 2742YH (1) 91 sb/js 12/ 24

H.F. 726 (8) The weight and chemistry of covered batteries sent 1 to each facility that is used for the final disposition of 2 batteries. This information may be approximated based on 3 extrapolations of national or regional data for programs in 4 operation in multiple states. 5 (9) The collection rate achieved under the plan, including a 6 description of how this collection rate was calculated and how 7 it compares to the collection rate goals under the plan. 8 (10) The estimated aggregate sales, by weight and 9 chemistry, of covered batteries, including covered batteries 10 contained in or packaged with battery-containing products, 11 sold in this state by the battery stewardship organization’s 12 participating producers for each of the previous three calendar 13 years. 14 (11) A description of how collected batteries were managed 15 and recycled, including a discussion of the best available 16 technologies and the recycling efficiency rate. 17 (12) A description of education and outreach efforts 18 supporting plan implementation, including a summary of 19 education and outreach provided to consumers, collection sites, 20 manufacturers, distributors, and retailers to promote the 21 collection and recycling of covered batteries; a description 22 of how that education and outreach met the requirements of 23 subsection 6; samples of education and outreach materials; a 24 summary of coordinated education and outreach efforts with any 25 other battery stewardship organizations implementing a plan 26 approved under this section; and a summary of any changes made 27 during the previous calendar year to education and outreach 28 activities. 29 (13) A list of all collection sites and an address for each 30 listed site, and an up-to-date map indicating the location of 31 all collection sites used to implement the plan, with links to 32 each collection site’s internet site when available. 33 (14) A description of methods used to collect, transport, 34 and recycle covered batteries under the plan. 35 -13- LSB 2742YH (1) 91 sb/js 13/ 24

H.F. 726 (15) A summary of progress made toward the performance goals 1 under the plan, and an explanation of why performance goals 2 were not met, if applicable. 3 (16) An evaluation of the effectiveness of education and 4 outreach activities. 5 (17) If a battery stewardship organization has disposed 6 of covered batteries through energy recovery, incineration, 7 or landfilling during the preceding calendar year of plan 8 implementation, the steps that the battery stewardship 9 organization will take to make the recycling of covered 10 batteries cost-effective, when possible, or to otherwise 11 increase battery recycling efficiency rates achieved by the 12 battery stewardship organization. 13 b. After five years of implementation of an approved 14 battery stewardship plan, a battery stewardship organization 15 or a producer member of such organization shall hire an 16 independent third party to conduct a one-time audit of the 17 plan and associated operations. The auditor shall examine the 18 effectiveness of the battery stewardship plan in collecting and 19 recycling covered batteries. The auditor shall also examine 20 the cost-effectiveness of the plan and compare it to the 21 cost-effectiveness of collection plans and programs for covered 22 batteries in other jurisdictions. A copy of such audit shall 23 be submitted to the department. 24 8. Department duties. 25 a. Within one hundred twenty days after receiving a proposed 26 plan or proposed amendment under subsection 3, paragraph “a” 27 or “d” , including any time required for public comment under 28 paragraph “b” of this subsection, the department shall approve, 29 conditionally approve, or deny the plan or amendment. If the 30 department denies the plan or amendment, the department shall 31 notify the battery stewardship organization of the denial in 32 writing and explain how the proposed plan or amendment does 33 not comply with this section; the producer shall submit a 34 revised plan or amendment or notice of plan withdrawal within 35 -14- LSB 2742YH (1) 91 sb/js 14/ 24

H.F. 726 sixty days of the denial; and the department shall approve 1 or deny the revised plan or amendment within ninety days of 2 resubmittal. 3 b. The department shall publish a notice in accordance with 4 chapter 618, on its internet site, and shall provide notice, 5 upon request, to interested persons, announcing the opportunity 6 for written public comment on any proposed plan or amendment 7 under subsection 3, paragraph “a” or “d” . The department shall 8 receive public comments on the proposed plan or amendment for a 9 thirty-day period beginning on the date the department gives 10 notice. 11 c. The department shall review annual reports submitted 12 under subsection 7 within ninety days after submission. 13 d. The department shall provide technical assistance to 14 producers and retailers related to the requirements under this 15 section. 16 e. Subject to paragraph “f” , the department shall maintain 17 on its internet site all of the following: 18 (1) A copy of all approved battery stewardship plans and any 19 amendments to such plans. 20 (2) The names of producers with approved plans. 21 (3) A list of brands of covered batteries covered under an 22 approved plan. 23 (4) A list of approved collection sites. 24 (5) Annual reports submitted to the department under 25 subsection 7. 26 f. Proprietary information submitted to the department under 27 this section is confidential pursuant to section 22.7 and shall 28 not be open to public inspection and copying. 29 g. The department may adopt rules to implement and 30 administer this section. 31 9. Antitrust and unfair trade practices. A producer, 32 retailer, or battery stewardship organization is not liable for 33 any claim of a violation of antitrust laws or laws relating 34 to fraudulent, deceptive, or unfair methods of competition or 35 -15- LSB 2742YH (1) 91 sb/js 15/ 24

H.F. 726 trade practices arising from conduct that complies with an 1 approved plan under this section. 2 10. Independent battery collection. 3 a. Nothing in this section prevents or prohibits a 4 person from offering or performing a fee-based household 5 collection program or a mail-back program for covered batteries 6 independently of a plan under this section, if all of the 7 following apply: 8 (1) The services are performed, and any facilities are 9 operated in compliance with, all applicable federal, state, and 10 local laws and requirements. 11 (2) All batteries collected by the person from customers in 12 this state are provided to a battery stewardship organization 13 implementing a plan approved under this section. 14 (3) After providing collected batteries to a battery 15 stewardship organization, any transport and processing of such 16 batteries by the battery stewardship organization is done at 17 the battery stewardship organization’s expense. 18 11. Individual battery disposal. 19 a. On and after January 1, 2028, all of the following apply: 20 (1) A person may dispose of a covered battery only by 21 delivery to a collection site or collection event operated 22 under a plan approved under this section, unless the battery is 23 separately managed as hazardous waste. 24 (2) A person shall not knowingly cause or allow the mixing 25 of a covered battery with recyclable materials that are 26 intended for processing and sorting at a material recovery 27 facility. 28 (3) A person shall not knowingly cause or allow the mixing 29 of a covered battery with municipal waste that is intended for 30 disposal at a solid waste disposal site. 31 (4) A person shall not knowingly cause or allow the disposal 32 of a covered battery in a landfill. 33 (5) A person shall not knowingly cause or allow the mixing 34 of a covered battery with waste that is intended for burning or 35 -16- LSB 2742YH (1) 91 sb/js 16/ 24

H.F. 726 incineration. 1 (6) A person shall not knowingly cause or allow the burning 2 or incineration of a covered battery. 3 b. An owner or operator of a solid waste facility shall 4 not be found in violation of this section if the facility has 5 posted in a conspicuous location a sign stating that covered 6 batteries must be managed through collection sites established 7 by a battery stewardship organization and are not accepted for 8 disposal. 9 c. A solid waste collector shall not be found in violation 10 of this section for a covered battery placed in a disposal 11 container by a third party. 12 12. Private right of action. A battery stewardship 13 organization that is implementing a plan approved under this 14 section may bring any of the following civil actions: 15 a. An action against one or more producers that sell or 16 offer for sale batteries or battery-containing products in this 17 state without an approved plan in violation of this section, to 18 recover costs, damages, and fees, if the organization bringing 19 the action has incurred costs of more than one thousand dollars 20 to collect, transport, and recycle or otherwise dispose of 21 covered batteries or battery-containing products produced by 22 the producer operating without an approved plan. 23 b. An action against the producer of a covered battery that 24 has been recalled, to recover costs associated with handling 25 the recalled battery. 26 c. An action against another battery stewardship 27 organization that is operating under an approved plan, to 28 recover costs, including attorney fees, incurred as a result 29 of that organization failing to meet its obligations under its 30 approved plan. 31 13. Penalties. 32 a. Any person that violates a provision of this section, 33 other than subsection 11, may be required to forfeit not more 34 than ten thousand dollars for each violation, except that any 35 -17- LSB 2742YH (1) 91 sb/js 17/ 24

H.F. 726 person that fails to pay any fee under this section shall 1 instead be liable for a civil penalty that is double the amount 2 of the applicable fee. 3 b. A person who knowingly makes a false material statement 4 to the department related to or required under this section is 5 guilty of a class “D” felony. 6 c. The attorney general or the county attorney of any county 7 in which a violation of this section occurs may, in addition to 8 any other penalty, bring an action to enjoin any person from 9 violating a provision of this section, other than subsection 10 11. 11 Sec. 3. Section 455E.11, subsection 2, Code 2025, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . e. A battery stewardship account. 14 (1) The account shall consist of moneys appropriated to, 15 transferred to, or deposited in the account, including fees 16 collected pursuant to section 455D.10A. Moneys in the account 17 shall be expended to fulfill the department’s duties under 18 section 455.10A, subsection 8. 19 (2) The department shall submit to the general assembly, 20 annually on or before January 1, a report that demonstrates how 21 funds are being utilized to comply with the department’s duties 22 described in section 455D.10A, subsection 8, and an itemization 23 of any other expenditures made within the previous fiscal year. 24 Sec. 4. REPEAL. Section 455D.10B, Code 2025, is repealed. 25 Sec. 5. ASSESSMENT OF BATTERY-CONTAINING PRODUCTS. 26 1. The department of natural resources shall review and 27 evaluate studies and assessments conducted by executive branch 28 agencies in the states of Illinois, Vermont, and Washington 29 regarding whether products or batteries that are not subject 30 to the provisions of section 455D.10A, as amended by this Act, 31 should be covered at a later date. The department may review 32 similar studies or assessments conducted by executive branch 33 agencies in any other state or by any other person. 34 2. No later than May 30, 2028, the department of natural 35 -18- LSB 2742YH (1) 91 sb/js 18/ 24

H.F. 726 resources shall submit a report to the general assembly. 1 The report shall include the findings and recommendations 2 of any study or assessment reviewed by the department under 3 this section. The report may include recommendations for 4 legislation based on the department’s evaluation of the studies 5 and review of assessments. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill provides for the implementation of battery 10 stewardship plans and strikes current Code sections relating to 11 household battery recycling requirements and batteries used in 12 rechargeable consumer products. 13 The bill defines a “battery stewardship organization” 14 (organization) as a producer that directly implements a battery 15 stewardship plan (plan) approved by the department of natural 16 resources (DNR) under the bill or a nonprofit organization 17 designated by a producer or group of producers to implement 18 such a plan. The bill defines “covered battery” as a portable 19 or medium format battery, with certain exceptions. 20 The bill prohibits any producer or retailer from selling, 21 offering for sale, or distributing any covered batteries or 22 battery-containing product in the state or into the state on 23 and after January 1, 2028, unless the producer is operating 24 under a plan approved by DNR pursuant to the bill and is 25 marked with identification of the producer, with certain 26 exceptions. On and after January 1, 2029, the batteries or 27 battery-containing products must also be marked to ensure 28 proper collection and recycling. 29 The bill prohibits producers, retailers, and battery 30 stewardship organizations from charging a point-of-sale fee to 31 consumers to cover the cost of implementing a plan approved 32 pursuant to the bill. 33 The bill requires producers to submit a battery stewardship 34 plan to DNR. The plan shall have a term of no more than five 35 -19- LSB 2742YH (1) 91 sb/js 19/ 24

H.F. 726 years and must include contact information; brands of covered 1 batteries the producer sells; performance goals; processes and 2 goals for retailer and consumer awareness; collection site 3 safety training; funding methods; provisions for collecting 4 covered batteries at no cost; addresses of collection sites 5 that will accept covered batteries and the criteria used to 6 determine the sites; names of proposed service providers to be 7 used for the final disposition of batteries; provisions for 8 recordkeeping, tracking, and the management and disposition of 9 covered batteries; and explanations for any anticipated delays 10 in managing medium format batteries. 11 The bill requires a battery stewardship organization to pay 12 a fee of $100,000 to DNR upon approval of a plan or on January 13 1, 2027, whichever is later. The fees will be deposited into a 14 battery stewardship account in the groundwater protection fund 15 and will be used to fulfill DNR’s duties under the bill. The 16 bill requires a fee adjustment by the general assembly every 17 five years. 18 The bill requires each organization to submit a new plan 19 every five years. If the performance goals under the previous 20 plan were not met, the bill requires the new plan to include 21 corrective measures to meet the goals. Additionally, an 22 organization must provide plan amendments to DNR when proposing 23 material changes to an already approved plan. 24 The bill requires an organization to notify DNR within 30 25 days of a producer beginning or ceasing participation in the 26 organization or adding or removing a processer or transporter. 27 The bill allows DNR to approve plans from multiple 28 organizations and plans that equitably share costs among other 29 organizations. 30 The bill requires an organization to be responsible for all 31 costs associated with implementing the plan, reimburse local 32 governments for costs incurred from serving as a collection 33 site, collect charges from producers sufficient to cover the 34 costs of implementation of the plan, provide for the collection 35 -20- LSB 2742YH (1) 91 sb/js 20/ 24