SSB 1196 (LSB 2742XC (4) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON NATURAL RESOURCES AND ENVIRONMENT BILL BY CHAIRPERSON SWEENEY)

A BILL FOR

An Act providing for the implementation of battery stewardship plans, making appropriations, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 22.7, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  76.  Proprietary information obtained by the department of natural resources pursuant to section 455D.10A.
    Sec. 2.  Section 455D.10A, Code 2025, is amended by striking the section and inserting in lieu thereof the following:
   455D.10A  Battery stewardship.
   1.  Definitions.
   a.  “Battery-containing product” means a product that contains or is packaged with a covered battery. “Battery-containing product” does not include computers, small-scale servers, computer monitors, electronic keyboards and mice, printers, fax machines, scanners, televisions, digital video disc players and recorders, video cassette recorders, digital converter boxes, cable receivers, satellite receivers, portable digital music players, or video game consoles.
   b.  “Battery stewardship organization” means a producer that directly implements a plan approved by the department under this section or a nonprofit organization designated by a producer or group of producers to implement such a plan.
   c.  “Collection rate” means the percentage calculated by dividing the total weight of covered batteries collected in the state by a battery stewardship organization in a calendar year by the average annual weight of covered batteries estimated to have been sold in the state by all producers during that same calendar year and the previous two calendar years.
   d.  “Collection site” means a designated location that is approved under a battery stewardship plan where portable batteries or medium format batteries may be dropped off by members of the public. Collection sites shall be operated in accordance with the applicable requirements of a battery stewardship organization’s approved battery stewardship plan. However, collection sites are independent of the battery stewardship organizations.
   e.  “Covered battery” means a portable battery or a medium format battery. “Covered battery” does not include any of the following:
   (1)  A battery contained in a medical device that is regulated under the federal Food, Drug, and Cosmetic Act, 21 U.S.C. §301 et seq., and that is not designed or marketed for sale or resale at retail locations for personal use.
   (2)  A battery that contains an electrolyte as a free liquid or a product that contains such a battery.
   (3)  A lead acid battery or a product that contains such a battery.
   (4)  A battery that is a component of a motor vehicle or that is intended for use exclusively in motor vehicles.
   (5)  A battery in a product that is not intended or designed to be easily removed by the user with no more than commonly used household tools.
   f.  “Medium format battery” means any of the following:
   (1)  For batteries that are not capable of being recharged, a battery that weighs more than four and four-tenths pounds but not more than twenty-five pounds.
   (2)  For rechargeable batteries, a battery that weighs more than eleven pounds, or that has a rating of more than three hundred watt-hours, or both, but that does not weigh more than twenty-five pounds or have a rating of more than two thousand watt-hours.
   g.  “Plan” means the battery stewardship plan.
   h.  “Portable battery” means any of the following:
   (1)  For batteries that are not capable of being recharged, a battery that weighs no more than four and four-tenths pounds.
   (2)  For rechargeable batteries, a battery that weighs no more than eleven pounds and that has a rating of no more than three hundred watt-hours.
   i.  “Primary battery” means a battery that is not capable of being recharged.
   j.  (1)  “Producer” means a person that sells, offers for sale, or distributes for sale a covered battery or battery-containing product in or into the state in accordance with the following:
   (a)  If the covered battery or battery-containing product is sold under a brand of the battery’s or product’s manufacturer, the person that manufactures the battery or product.
   (b)  If the covered battery or battery-containing product is sold under a retail brand or under a brand owned by a person other than the battery’s or product’s manufacturer, the person that owns the brand.
   (c)  If subparagraph divisions (a) and (b) do not apply, the person that is the licensee of a brand or trademark under which the covered battery or battery-containing product is sold, offered for sale, or distributed for sale in or into this state, regardless of whether the trademark is registered in this state.
   (d)  If subparagraph divisions (a) through (c) do not apply to any person within the United States, the person that is the importer of record for the covered battery or battery-containing product into the United States for the purpose of selling, offering for sale, or distributing for sale the battery or product in or into this state.
   (e)  If subparagraph divisions (a) through (d) do not apply to any person with a commercial presence in this state, the person who first sells, offers for sale, or distributes for sale the covered battery or battery-containing product in or into this state.
   (2)  “Producer” does not include a person that only sells, offers for sale, or distributes for sale a battery-containing product if the battery is supplied by another producer that is directly implementing a plan approved by the department under this section or that has designated a nonprofit organization to implement such a plan.
   k.  “Rechargeable battery” means a battery that contains one or more voltaic or galvanic cells electrically connected to produce electric energy and that is designed to be recharged.
   l.  “Recycling” means preparing batteries for use in manufacturing processes or for recovery of usable materials and delivering the materials for use. Recycling does not include destruction by incineration or other processes or land disposal of recyclable materials and does not include reuse, repair, or any other process through which batteries are returned in their original form.
   m.  “Recycling efficiency rate” means the percentage calculated by dividing the weight of components and materials recycled by a battery stewardship organization by the weight of covered batteries collected by the battery stewardship organization.
   n.  “Retailer” means a person that sells or offers for sale a covered battery in or into this state.
   2.  Prohibitions.
   a.  On and after January 1, 2028, a producer or retailer shall not sell, offer for sale, or distribute for sale in or into the state any covered battery or battery-containing product unless the producer of the covered battery or battery-containing product is operating under a plan approved by the department under this section. This paragraph does not apply to a retailer if the internet site maintained by the department under subsection 8 lists, as of the date a battery or product is made available for retail sale, the producer or brand of the battery or product as being covered by a plan approved under this section.
   b.  On and after January 1, 2028, a producer or retailer shall not sell, offer for sale, or distribute for sale in or into the state any covered battery or battery-containing product unless the covered battery or battery in the battery-containing product is marked with an identification of the producer of the battery. This paragraph does not apply if the battery is less than one-half inch in diameter or does not contain a surface with a length that exceeds one-half inch.
   c.  On and after January 1, 2029, a producer or retailer shall not sell, offer for sale, or distribute for sale in or into the state any covered battery or battery-containing product unless the covered battery or battery in the battery-containing product is marked to ensure proper collection and recycling by identifying the chemistry of the battery and including an indication that the battery should not be disposed of as household waste.
   d.  A producer, retailer, or battery stewardship organization shall not charge a point-of-sale fee to consumers to cover the costs of implementing a plan approved under this section.
   3.  Battery stewardship plan.
   a.  By January 1, 2027, each producer shall submit a battery stewardship plan to the department for review. A plan submitted to the department shall have a term of no more than five years and shall include all of the following:
   (1)  The names and contact information for each producer covered under the plan.
   (2)  The brands of all of the covered batteries that the producer sells, offers for sale, or distributes for sale in or into this state. All such brands shall be covered by the plan.
   (3)  Performance goals under the plan, and a process for achieving these goals. Performance goals shall include target collection rates for rechargeable batteries and for batteries that are not capable of being recharged; target recycling efficiency rates of at least sixty percent for rechargeable batteries and seventy percent for batteries that are not capable of being recharged; and goals for public awareness, convenience, and accessibility. The collection rate goals for each of the first three years of implementation of the battery stewardship organization’s approved plan shall be based on the estimated total weight of covered batteries that have been sold in this state in the previous three calendar years by the producers participating in the plan.
   (4)  A process for making retailers aware of the requirement under subsection 2.
   (5)  Consumer awareness goals and a description of the education and outreach strategy that the battery stewardship organization will implement to promote participation in the organization’s approved plan and to provide information necessary for the effective participation of consumers, retailers, and others.
   (6)  A process for making available to collection sites, for voluntary use, signage, written materials, and other promotional materials to inform consumers of the available end-of-life management options for covered batteries collected under the battery stewardship organization’s approved plan.
   (7)  Collection site safety training procedures related to covered battery collection activities at collection sites, including a description of operating protocols to reduce risks of spills or fires, response protocols in the event of a spill or fire, and protocols for safe management of damaged batteries that are returned to collection sites.
   (8)  A method for fully funding the battery stewardship organization’s approved plan in a manner that equitably distributes the plan’s costs among the producers that are part of the battery stewardship organization; or, for producers that are not a member of a battery stewardship organization and that implement a plan individually, a method for fully funding the producer’s approved plan.
   (9)  Provisions for collecting covered batteries at no cost, regardless of the brand or producer of the covered battery, on a continuous, convenient, visible, and accessible basis.
   (10)  The addresses of collection sites that will accept covered batteries under the plan, and the criteria used to determine whether an entity may serve as a collection site.
   (11)  The names of proposed service providers, including sorters, transporters, and processors, to be used for the final disposition of batteries.
   (12)  Provisions for recordkeeping, tracking, and documenting the management and disposition of collected covered batteries.
   (13)  An explanation for any delay anticipated by the battery stewardship organization in managing medium-format batteries.
   b.  A battery stewardship organization shall pay a fee of one hundred thousand dollars to the department upon approval of a plan under this section or on January 1, 2027, whichever is later, and a fee of one hundred thousand dollars annually thereafter. The annual fee amount shall be reviewed and, if necessary, adjusted every five years by the general assembly to ensure the department maintains adequate funding to fully complete the department’s duties described in subsection 8. Fees paid under this paragraph shall be deposited into the battery stewardship account of the groundwater protection fund created in section 455E.11.
   c.  A battery stewardship organization shall submit a new plan to the department for approval no less than every five years. If the performance goals under the previously approved plan have not been met, the new plan shall include corrective measures to be implemented by the battery stewardship organization to meet those performance goals, which may include improvements to the collection site network or increased expenditures dedicated to education and outreach.
   d.  A battery stewardship organization shall provide plan amendments to the department for approval when proposing material changes to the approved plan.
   e.  A battery stewardship organization operating under a plan approved by the department under this section shall notify the department within thirty days of a producer beginning or ceasing participation in the battery stewardship organization, or within thirty days of adding or removing a processor or transporter under the approved plan.
   f.  The department may approve plans under this section from more than one battery stewardship organization. The department may approve plans that equitably share the costs, among other battery stewardship organizations, of implementing the parts of those plans that benefit such organizations.
   4.  Cost and reimbursement.  A battery stewardship organization implementing a plan approved under this section shall do all the following:
   a.  Be responsible for all costs associated with implementing the plan.
   b.  Reimburse local governmental units for demonstrable costs incurred as a result of a local government facility or solid waste facility serving as a collection site under the plan.
   c.  Collect charges from participating producers sufficient to cover the costs of implementation, including battery collection, transportation, and processing; education and outreach; program evaluation; and payment of the annual fee to the department under subsection 3, paragraph “b”.
   5.  Collection and management of covered batteries.
   a.  A battery stewardship organization implementing a plan approved under this section shall do all of the following:
   (1)  Provide for the collection of all covered batteries from any person, regardless of the chemistry or brand of the battery, on a free, continuous, convenient, visible, and accessible basis.
   (2)  Provide to collection sites under the plan, at no cost to the sites, suitable collection containers for covered batteries that are segregated from other waste; or make alternative arrangements for the collection of such batteries at the site, with the agreement of the collection site.
   (3)  Ensure that medium format batteries are collected only at household hazardous waste collection sites or other staffed collection sites that meet applicable federal, state, and local requirements for managing medium format batteries.
   (4)  Provide for the collection of damaged and defective batteries, by persons trained to handle and ship such batteries, at collection sites and at each permanent household hazardous waste facility and each household hazardous waste collection event provided by the department. As used in this subparagraph, “damaged and defective batteries” means batteries that have been damaged or that have been identified by the manufacturer as being defective for safety reasons, and that have the potential to produce a dangerous evolution of heat, fire, or short circuit.
   (5)  Ensure statewide collection opportunities for all covered batteries.
   (6)  Coordinate activities with others, such as electronic waste recyclers and other plan operators, to provide efficient delivery of services and avoid unnecessary duplication of effort and expense. A battery stewardship organization shall use existing public and private waste collection services and facilities, transporters, consolidators, processors, and retailers, if cost effective, mutually agreeable, and otherwise practical.
   (7)  For portable batteries, provide all of the following no later than December 31, 2028:
   (a)  Permanent collection at all regional collection centers and satellite facilities, as defined under section 455F.1, that meet the operating requirements of an approved plan, unless the facility declines to participate as a permanent collection site for portable batteries.
   (b)  At least one permanent collection site within a fifteen-mile radius for at least ninety-five percent of state residents.
   (8)  For medium format batteries, provide all of the following no later than December 31, 2028:
   (a)  Permanent collection at all regional collection centers and satellite facilities, as defined under section 455F.1, that meet the operating requirements of an approved plan, unless the facility declines to participate as a permanent collection site for medium format batteries.
   (b)  At least ten permanent collection sites that are reasonably dispersed in this state.
   (c)  A collection event at least once every three years in each county that does not have a permanent collection site that must provide for the collection of all medium format batteries, including damaged and defective medium format batteries, as described in subparagraph (4).
   (9)  Use as a collection site or the site of a collection event the location of any entity that meets the criteria for a collection site or collection event under an approved plan and that requests to serve as a collection site or collection event, up to the number of collection sites required to comply with subparagraphs (7) and (8).
   b.  A battery stewardship organization implementing a plan approved under this section may issue a warning to, suspend, or terminate a collection site or service that does not comply with the criteria under the approved plan or that poses an immediate concern to health and safety.
   c.  A battery stewardship organization is not required to provide for the collection of battery-containing products or covered batteries that remain contained in a battery-containing product at the time of delivery to a collection site or collection event. A battery stewardship organization shall collect recalled batteries. However, the battery stewardship organization may seek reimbursement from the producer of a recalled battery for the costs incurred in collecting, transporting, or processing such batteries.
   6.  Education and outreach.
   a.  A battery stewardship organization implementing a plan approved under this section shall do all of the following to promote the implementation of the plan:
   (1)  Develop and maintain an internet site.
   (2)  Develop and distribute periodic press releases and articles.
   (3)  Develop and place advertisements for use on social media accounts or other relevant media platforms.
   (4)  Develop promotional materials about the program and about the restriction on disposing covered batteries under subsection 11.
   (5)  Develop and distribute collection site safety training procedures to collection sites to help ensure proper management of covered batteries at collection sites.
   (6)  Develop and implement outreach and educational resources that are conceptually, linguistically, and culturally accurate for the communities served, including through meaningful consultation with communities that bear disproportionately higher levels of adverse environmental and social justice impacts.
   (7)  Provide consumer-focused educational materials to consumers, collection sites, manufacturers, distributors, and retailers to promote the collection and recycling of covered batteries.
   (8)  Provide safety information related to covered battery collection activities to the operator of each collection site used under the plan, including appropriate protocols to reduce risks of spills or fires, to respond to a spill or fire, and to manage collected damaged or defective batteries as defined in subsection 5, paragraph “a”, subparagraph (4).
   (9)  Provide educational materials to the operator of each collection site used under the plan for the management of recalled batteries.
   (10)  Upon request by a retailer or other potential collection site, provide education materials describing collection opportunities for covered batteries.
   (11)  Coordinate with other battery stewardship organizations implementing a plan approved under this section, if applicable, in providing education and outreach under this subsection.
   (12)  Conduct a survey, during the first year of implementing an approved plan and every five years thereafter, of public awareness of the provisions of this section. The battery stewardship organization shall share the results of the surveys with the department.
   7.  Annual reporting.
   a.  No later than June 1, 2029, and each June 1 thereafter, a battery stewardship organization implementing a plan approved under this section shall submit to the department a report that contains all of the following:
   (1)  An independent financial assessment of implementing the plan, including a breakdown of the plan’s expenses, such as collection expenses, recycling expenses, education expenses, and overhead expenses.
   (2)  A summary financial statement documenting the financing of the plan and an analysis of plan costs and expenditures, including an analysis of the plan’s expenses, such as collection, transportation, recycling, education, and administrative overhead. The summary financial statement shall be sufficiently detailed to provide transparency that funds collected from producers are spent on plan implementation in this state.
   (3)  The weight, by chemistry, of covered batteries collected under the plan.
   (4)  The weight of materials recycled from covered batteries collected under the plan, in total, and by method of battery recycling.
   (5)  A calculation of the recycling efficiency rate under the plan.
   (6)  A list of all facilities used in the processing or disposition of covered batteries under the plan and, for domestic facilities, a summary of any founded violations of environmental laws and regulations during the previous three years at each facility.
   (7)  For each facility used for the final disposition of covered batteries under the plan, a description of how the facility recycled or otherwise managed batteries and battery components.
   (8)  The weight and chemistry of covered batteries sent to each facility that is used for the final disposition of batteries. This information may be approximated based on extrapolations of national or regional data for programs in operation in multiple states.
   (9)  The collection rate achieved under the plan, including a description of how this collection rate was calculated and how it compares to the collection rate goals under the plan.
   (10)  The estimated aggregate sales, by weight and chemistry, of covered batteries, including covered batteries contained in or packaged with battery-containing products, sold in this state by the battery stewardship organization’s participating producers for each of the previous three calendar years.
   (11)  A description of how collected batteries were managed and recycled, including a discussion of the best available technologies and the recycling efficiency rate.
   (12)  A description of education and outreach efforts supporting plan implementation, including a summary of education and outreach provided to consumers, collection sites, manufacturers, distributors, and retailers to promote the collection and recycling of covered batteries; a description of how that education and outreach met the requirements of subsection 6; samples of education and outreach materials; a summary of coordinated education and outreach efforts with any other battery stewardship organizations implementing a plan approved under this section; and a summary of any changes made during the previous calendar year to education and outreach activities.
   (13)  A list of all collection sites and an address for each listed site, and an up-to-date map indicating the location of all collection sites used to implement the plan, with links to each collection site’s internet site when available.
   (14)  A description of methods used to collect, transport, and recycle covered batteries under the plan.
   (15)  A summary of progress made toward the performance goals under the plan, and an explanation of why performance goals were not met, if applicable.
   (16)  An evaluation of the effectiveness of education and outreach activities.
   (17)  If a battery stewardship organization has disposed of covered batteries through energy recovery, incineration, or landfilling during the preceding calendar year of plan implementation, the steps that the battery stewardship organization will take to make the recycling of covered batteries cost-effective, when possible, or to otherwise increase battery recycling efficiency rates achieved by the battery stewardship organization.
   b.  After five years of implementation of an approved battery stewardship plan, a battery stewardship organization or a producer member of such organization shall hire an independent third party to conduct a one-time audit of the plan and associated operations. The auditor shall examine the effectiveness of the battery stewardship plan in collecting and recycling covered batteries. The auditor shall also examine the cost-effectiveness of the plan and compare it to the cost-effectiveness of collection plans and programs for covered batteries in other jurisdictions. A copy of such audit shall be submitted to the department.
   8.  Department duties.
   a.  Within one hundred twenty days after receiving a proposed plan or proposed amendment under subsection 3, paragraph “a” or “d”, including any time required for public comment under paragraph “b” of this subsection, the department shall approve, conditionally approve, or deny the plan or amendment. If the department denies the plan or amendment, the department shall notify the battery stewardship organization of the denial in writing and explain how the proposed plan or amendment does not comply with this section; the producer shall submit a revised plan or amendment or notice of plan withdrawal within sixty days of the denial; and the department shall approve or deny the revised plan or amendment within ninety days of resubmittal.
   b.  The department shall publish a notice in accordance with chapter 618, on its internet site, and shall provide notice, upon request, to interested persons, announcing the opportunity for written public comment on any proposed plan or amendment under subsection 3, paragraph “a” or “d”. The department shall receive public comments on the proposed plan or amendment for a thirty-day period beginning on the date the department gives notice.
   c.  The department shall review annual reports submitted under subsection 7 within ninety days after submission.
   d.  The department shall provide technical assistance to producers and retailers related to the requirements under this section.
   e.  Subject to paragraph “f”, the department shall maintain on its internet site all of the following:
   (1)  A copy of all approved battery stewardship plans and any amendments to such plans.
   (2)  The names of producers with approved plans.
   (3)  A list of brands of covered batteries covered under an approved plan.
   (4)  A list of approved collection sites.
   (5)  Annual reports submitted to the department under subsection 7.
   f.  Proprietary information submitted to the department under this section is confidential pursuant to section 22.7 and shall not be open to public inspection and copying.
   g.  The department may adopt rules to implement and administer this section.
   9.  Antitrust and unfair trade practices.  A producer, retailer, or battery stewardship organization is not liable for any claim of a violation of antitrust laws or laws relating to fraudulent, deceptive, or unfair methods of competition or trade practices arising from conduct that complies with an approved plan under this section.
   10.  Independent battery collection.
   a.  Nothing in this section prevents or prohibits a person from offering or performing a fee-based household collection program or a mail-back program for covered batteries independently of a plan under this section, if all of the following apply:
   (1)  The services are performed, and any facilities are operated in compliance with, all applicable federal, state, and local laws and requirements.
   (2)  All batteries collected by the person from customers in this state are provided to a battery stewardship organization implementing a plan approved under this section.
   (3)  After providing collected batteries to a battery stewardship organization, any transport and processing of such batteries by the battery stewardship organization is done at the battery stewardship organization’s expense.
   11.  Individual battery disposal.
   a.  On and after January 1, 2028, all of the following apply:
   (1)  A person may dispose of a covered battery only by delivery to a collection site or collection event operated under a plan approved under this section, unless the battery is separately managed as hazardous waste.
   (2)  A person shall not knowingly cause or allow the mixing of a covered battery with recyclable materials that are intended for processing and sorting at a material recovery facility.
   (3)  A person shall not knowingly cause or allow the mixing of a covered battery with municipal waste that is intended for disposal at a solid waste disposal site.
   (4)  A person shall not knowingly cause or allow the disposal of a covered battery in a landfill.
   (5)  A person shall not knowingly cause or allow the mixing of a covered battery with waste that is intended for burning or incineration.
   (6)  A person shall not knowingly cause or allow the burning or incineration of a covered battery.
   b.  An owner or operator of a solid waste facility shall not be found in violation of this section if the facility has posted in a conspicuous location a sign stating that covered batteries must be managed through collection sites established by a battery stewardship organization and are not accepted for disposal.
   c.  A solid waste collector shall not be found in violation of this section for a covered battery placed in a disposal container by a third party.
   12.  Private right of action.  A battery stewardship organization that is implementing a plan approved under this section may bring any of the following civil actions:
   a.  An action against one or more producers that sell or offer for sale batteries or battery-containing products in this state without an approved plan in violation of this section, to recover costs, damages, and fees, if the organization bringing the action has incurred costs of more than one thousand dollars to collect, transport, and recycle or otherwise dispose of covered batteries or battery-containing products produced by the producer operating without an approved plan.
   b.  An action against the producer of a covered battery that has been recalled, to recover costs associated with handling the recalled battery.
   c.  An action against another battery stewardship organization that is operating under an approved plan, to recover costs, including attorney fees, incurred as a result of that organization failing to meet its obligations under its approved plan.
   13.  Penalties.
   a.  Any person that violates a provision of this section, other than subsection 11, may be required to forfeit not more than ten thousand dollars for each violation, except that any person that fails to pay any fee under this section shall instead be liable for a civil penalty that is double the amount of the applicable fee.
   b.  A person who knowingly makes a false material statement to the department related to or required under this section is guilty of a class “D” felony.
   c.  The attorney general or the county attorney of any county in which a violation of this section occurs may, in addition to any other penalty, bring an action to enjoin any person from violating a provision of this section, other than subsection 11.
    Sec. 3.  Section 455E.11, subsection 2, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  A battery stewardship account.
   (1)  The account shall consist of moneys appropriated to, transferred to, or deposited in the account, including fees collected pursuant to section 455D.10A. Moneys in the account shall be expended to fulfill the department’s duties under section 455.10A, subsection 8.
   (2)  The department shall submit to the general assembly, annually on or before January 1, a report that demonstrates how funds are being utilized to comply with the department’s duties described in section 455D.10A, subsection 8, and an itemization of any other expenditures made within the previous fiscal year.
    Sec. 4.  REPEAL.  Section 455D.10B, Code 2025, is repealed.
    Sec. 5.  ASSESSMENT OF BATTERY-CONTAINING PRODUCTS.
   1.  The department of natural resources shall review and evaluate studies and assessments conducted by executive branch agencies in the states of Illinois, Vermont, and Washington regarding whether products or batteries that are not subject to the provisions of section 455D.10A, as amended by this Act, should be covered at a later date. The department may review similar studies or assessments conducted by executive branch agencies in any other state or by any other person.
   2.  No later than May 30, 2028, the department of natural resources shall submit a report to the general assembly. The report shall include the findings and recommendations of any study or assessment reviewed by the department under this section. The report may include recommendations for legislation based on the department’s evaluation of the studies and review of assessments.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides for the implementation of battery stewardship plans and strikes current Code sections relating to household battery recycling requirements and batteries used in rechargeable consumer products.
   The bill defines a “battery stewardship organization” (organization) as a producer that directly implements a battery stewardship plan (plan) approved by the department of natural resources (DNR) under the bill or a nonprofit organization designated by a producer or group of producers to implement such a plan. The bill defines “covered battery” as a portable or medium format battery, with certain exceptions.
   The bill prohibits any producer or retailer from selling, offering for sale, or distributing any covered batteries or battery-containing product in the state or into the state on and after January 1, 2028, unless the producer is operating under a plan approved by DNR pursuant to the bill and is marked with identification of the producer, with certain exceptions. On and after January 1, 2029, the batteries or battery-containing products must also be marked to ensure proper collection and recycling.
   The bill prohibits producers, retailers, and battery stewardship organizations from charging a point-of-sale fee to consumers to cover the cost of implementing a plan approved pursuant to the bill.
   The bill requires producers to submit a battery stewardship plan to DNR. The plan shall have a term of no more than five years and must include contact information; brands of covered batteries the producer sells; performance goals; processes and goals for retailer and consumer awareness; collection site safety training; funding methods; provisions for collecting covered batteries at no cost; addresses of collection sites that will accept covered batteries and the criteria used to determine the sites; names of proposed service providers to be used for the final disposition of batteries; provisions for recordkeeping, tracking, and the management and disposition of covered batteries; and explanations for any anticipated delays in managing medium format batteries.
   The bill requires a battery stewardship organization to pay a fee of $100,000 to DNR upon approval of a plan or on January 1, 2027, whichever is later. The fees will be deposited into a battery stewardship account in the groundwater protection fund and will be used to fulfill DNR’s duties under the bill. The bill requires a fee adjustment by the general assembly every five years.
   The bill requires each organization to submit a new plan every five years. If the performance goals under the previous plan were not met, the bill requires the new plan to include corrective measures to meet the goals. Additionally, an organization must provide plan amendments to DNR when proposing material changes to an already approved plan.
   The bill requires an organization to notify DNR within 30 days of a producer beginning or ceasing participation in the organization or adding or removing a processer or transporter.
   The bill allows DNR to approve plans from multiple organizations and plans that equitably share costs among other organizations.
   The bill requires an organization to be responsible for all costs associated with implementing the plan, reimburse local governments for costs incurred from serving as a collection site, collect charges from producers sufficient to cover the costs of implementation of the plan, provide for the collection of all covered batteries for any person, provide collection sites, ensure medium format batteries are collected correctly, provide for the collection of damaged and defective batteries, ensure statewide collection opportunities for all covered batteries, and coordinate with others to provide efficient delivery of service.
   The bill requires an organization to provide permanent collection for portable and medium format batteries at all collection centers that meet the requirements of the plan by December 1, 2028, with certain exceptions. For portable batteries, the bill requires at least one permanent collection site within a 15-mile radius for at least 95 percent of residents. For medium format batteries, the bill requires at least 10 reasonably dispersed permanent collection sites in the state and a collection event at least once every three years in each county that does not have a permanent collection site.
   The bill authorizes an organization to issue a warning, suspend, or terminate a collection site that does not comply with the criteria under an approved plan or that poses an immediate concern to health and safety.
   The bill provides that organizations are not required to provide for the collection of battery-containing products or covered batteries that remain contained in battery-containing products. The bill requires an organization to collect recalled batteries, but the organization may seek reimbursement from the producer of the recalled batteries for costs incurred.
   The bill requires an organization to promote the implementation of the organization’s plan through specific methods provided in the bill, including marketing and education of the plan.
   The bill requires each organization to submit a report to DNR by June 1, 2029, and each June 1 thereafter, that contains detailed information about the organization’s approved plan.
   The bill requires an organization to hire a third party to conduct an audit of a plan and associated operations five years after implementation of the plan to examine the effectiveness and cost-effectiveness of the plan. The result of the audit will be submitted to DNR.
   The bill provides procedures DNR must follow after receiving approved plans, including timelines for approval or denial, public notice requirements, and public comment requirements.
   The bill requires DNR to review the annual reports submitted within 90 days of submission.
   The bill requires DNR to provide technical assistance to producers and retailers related to the requirements of the bill.
   The bill requires DNR to maintain on its internet site a copy of all approved plans and amendments, names of the producers with approved plans, a list of brands of covered batteries covered under a plan, a list of approved collection sites, and annual reports submitted to DNR. The bill provides that proprietary information submitted to DNR shall not be available to the public.
   The bill authorizes DNR to adopt rules to implement and administer the bill.
   The bill provides that a producer, retailer, or organization is not liable for any claim of a violation of antitrust laws or laws relating to fraudulent, deceptive, or unfair methods of competition or trade practices arising from conduct that complies with an approved plan under the bill.
   The bill expounds that nothing in the bill prevents or prohibits a person from offering or performing a fee-based household collection program or a mail-back program for covered batteries independently of a plan under the bill if the program complies with all applicable federal, state, and local laws and requirements, the batteries collected are provided to an organization implementing an approved plan, and that after providing collected batteries to an organization, any transport and processing of such batteries is done at the organization’s expense.
   The bill provides that, beginning on January 1, 2028, a person may dispose of a covered battery only by delivery to a collection site or collection event operated under an approved plan, unless the battery is separately managed as hazardous waste.
   The bill prohibits a person from knowingly causing or allowing the mixing of a covered battery with recyclable materials that are intended for processing and sorting at a material recovery facility, the mixing of a covered battery with municipal waste that is intended for disposal at a solid waste disposal site, the disposal of a covered battery in a landfill, the mixing of a covered battery with waste that is intended for burning or incineration, or the burning or incineration of a covered battery.
   The bill provides that an owner or operator of a solid waste facility shall not be found in violation of the bill if the facility has posted in a conspicuous location a sign stating that covered batteries must be managed through collection sites established by an organization and are not accepted for disposal. A solid waste collector shall not be found in violation of the bill for a covered battery placed in a disposal container by a third party.
   The bill allows an organization implementing an approved plan to bring civil actions against producers or other organizations to recover costs, damages and fees incurred due to violations of the bill, battery recalls, or failures to meet obligations under an approved plan.
   The bill provides that a violation of the bill, other than the provisions concerning individual battery disposal, is punishable by a fine of not more $10,000 for each violation. If a fee is not paid, the person shall be liable for a civil penalty that is twice the amount of the applicable fee.
   The bill provides that a person who knowingly makes a false material statement to DNR related to or required under the bill is guilty of a class “D” felony. A class “D” felony is punishable by confinement for no more than five years and a fine of at least $1,025 but not more than $10,245.
   In addition to any other penalty, the bill authorizes the attorney general or the county attorney of any county in which a violation of the bill occurs to bring an action to enjoin any person from violating the bill, other than the provisions concerning individual battery disposal.
   The bill creates a battery stewardship account in the groundwater protection fund that will consist of moneys appropriated to, transferred to, or deposited in the account, including fees collected pursuant to the bill. Moneys in the account shall be expended to fulfill DNR’s duties under the bill.
   The bill requires DNR to submit to the general assembly, annually on or before January 1, a report that demonstrates how funds are being utilized to comply with DNR’s duties described in the bill and an itemization of any other expenditures made within the previous fiscal year.
   The bill directs DNR to review and evaluate studies and assessments conducted by executive branch agencies in the states of Illinois, Vermont, and Washington regarding whether products or batteries that are not covered by the bill should be covered at a later date. DNR may also review similar studies or assessments conducted by executive branch agencies in any other state or by any other person.
   The bill requires DNR to submit a report to the general assembly no later than May 30, 2028, that includes the findings and recommendations of any study or assessment reviewed by DNR. The report may include recommendations for legislation based on DNR’s evaluation of the studies and review of assessments.