Concerning the photovoltaic module stewardship and takeback program.

CERTIFICATION OF ENROLLMENT ENGROSSED SECOND SUBSTITUTE SENATE BILL 5175 Chapter 126, Laws of 2025 69th Legislature 2025 Regular Session PHOTOVOLTAIC MODULE STEWARDSHIP AND TAKEBACK PROGRAM —MODIFICATION EFFECTIVE DATE: June 30, 2025 Passed by the Senate March 5, 2025 Yeas 49 Nays 0 DENNY HECK President of the Senate Passed by the House April 10, 2025 Yeas 58 Nays 37 LAURIE JINKINS Speaker of the House of Representatives CERTIFICATE I, Sarah Bannister, Secretary of the Senate of the State of Washington, do hereby certify that the attached is ENGROSSED SECOND SUBSTITUTE SENATE BILL 5175 as passed by the Senate and the House of Representatives on the dates hereon set forth. SARAH BANNISTER Secretary Approved April 22, 2025 9:44 AM FILED April 22, 2025 BOB FERGUSON Governor of the State of Washington Secretary of State State of Washington AN ACT Relating to the photovoltaic module stewardship and 1 takeback program; amending RCW 70A.510.010; adding a new section to 2 chapter 70A.510 RCW; providing an effective date; providing an 3 expiration date; and declaring an emergency. 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5 Sec. 1. RCW 70A.510.010 and 2021 c 45 s 1 are each amended to 6 read as follows: 7 (1) The legislature finds that a convenient, safe, and 8 environmentally sound system for the recycling of photovoltaic 9 modules, minimization of hazardous waste, and recovery of 10 commercially valuable materials must be established. The legislature 11 further finds that the responsibility for this system must be shared 12 among all stakeholders, with manufacturers financing the takeback and 13 recycling system. 14 (2) The definitions in this subsection apply throughout this 15 section and section 2 of this act unless the context clearly requires 16 otherwise. 17 (a) "Consumer electronic device" means any device containing an 18 electronic circuit board that is intended for everyday use by 19 individuals, such as a watch or calculator. 20 (b) "Department" means the department of ecology.21 ENGROSSED SECOND SUBSTITUTE SENATE BILL 5175 Passed Legislature - 2025 Regular Session State of Washington 69th Legislature 2025 Regular Session By Senate Ways & Means (originally sponsored by Senators Shewmake, Hasegawa, Nobles, and Wellman; by request of Department of Ecology) READ FIRST TIME 02/28/25. p. 1 E2SSB 5175.SL (c) "Distributor" means a person who markets and sells 1 photovoltaic modules to retailers in Washington. 2 (d) "Installer" means a person who assembles, installs, and 3 maintains photovoltaic module systems. 4 (e) "Manufacturer" means any person in business or no longer in 5 business but having a successor in interest who, irrespective of the 6 selling technique used, including by means of distance or remote 7 sale: 8 (i) Manufactures or has manufactured a photovoltaic module under 9 its own brand names for use or sale in or into this state;10 (ii) Assembles or has assembled a photovoltaic module that uses 11 parts manufactured by others for use or sale in or into this state 12 under the assembler's brand names; 13 (iii) Resells or has resold in or into this state under its own 14 brand names a photovoltaic module produced by other suppliers, 15 including retail establishments that sell photovoltaic modules under 16 their own brand names; 17 (iv) Manufactures or has manufactured a cobranded photovoltaic 18 module product for use or sale in or into this state that carries the 19 name of both the manufacturer and a retailer; 20 (v) Imports or has imported a photovoltaic module into the United 21 States that is used or sold in or into this state. However, if the 22 imported photovoltaic module is manufactured by any person with a 23 presence in the United States meeting the criteria of manufacturer 24 under (e)(i) through (vi) of this subsection, that person is the 25 manufacturer; 26 (vi) Sells at retail a photovoltaic module acquired from an 27 importer that is the manufacturer and elects to register as the 28 manufacturer for those products; or 29 (vii) Elects to assume the responsibility and register in lieu of 30 a manufacturer as defined under (e)(i) through (vi) of this 31 subsection. 32 (f) "Photovoltaic module" means the smallest nondivisible, 33 environmentally protected assembly of photovoltaic cells or other 34 photovoltaic collector technology and ancillary parts intended to 35 generate electrical power under sunlight, except that "photovoltaic 36 module" does not include a photovoltaic cell that is part of a 37 consumer electronic device for which it provides electricity needed 38 to make the consumer electronic device function. "Photovoltaic 39 p. 2 E2SSB 5175.SL module" includes but is not limited to interconnections, terminals, 1 and protective devices such as diodes that: 2 (i) Are installed on, connected to, or integral with buildings;3 (ii) Are used as components of freestanding, off-grid, power 4 generation systems, such as for powering water pumping stations, 5 electric vehicle charging stations, fencing, street and signage 6 lights, and other commercial or agricultural purposes; or7 (iii) Are part of a system connected to the grid or utility 8 service. 9 (g) "Predecessor" means an entity from which a manufacturer 10 purchased a photovoltaic module brand, its warranty obligations, and 11 its liabilities. "Predecessor" does not include entities from which a 12 manufacturer purchased only manufacturing equipment.13 (h) "Rare earth element" means lanthanum, cerium, praseodymium, 14 neodymium, promethium, samarium, europium, gadolinium, terbium, 15 dysprosium, holmium, erbium, thulium, ytterbium, lutetium, yttrium, 16 or scandium. 17 (i) "Retailer" means a person who offers photovoltaic modules for 18 retail sale in the state through any means including, but not limited 19 to, remote offerings such as sales outlets, catalogs, or internet 20 sales. 21 (j) "Reuse" means any operation by which a photovoltaic module or 22 a component of a photovoltaic module changes ownership and is used 23 for the same purpose for which it was originally purchased.24 (k) "Stewardship plan" means the plan developed by a manufacturer 25 or its designated stewardship organization for a self-directed 26 stewardship program. 27 (l) "Stewardship program" means the activities conducted by a 28 manufacturer or a stewardship organization to fulfill the 29 requirements of this chapter and implement the activities described 30 in its stewardship plan. 31 (m) "Environmental justice" has the same meaning as defined in 32 RCW 70A.02.010.33 (n) "Overburdened community" has the same meaning as defined in 34 RCW 70A.02.010.35 (o) "Vulnerable populations" has the same meaning as defined in 36 RCW 70A.02.010.37 (3) The department must develop guidance for a photovoltaic 38 module stewardship and takeback program to guide manufacturers in 39 preparing and implementing a self-directed program to ensure the 40 p. 3 E2SSB 5175.SL convenient, safe, and environmentally sound takeback and recycling of 1 photovoltaic modules and their components and materials. By January 2 1, 2018, the department must establish a process to develop guidance 3 for photovoltaic module stewardship plans by working with 4 manufacturers, stewardship organizations, and other stakeholders on 5 the content, review, and approval of stewardship plans. The 6 department's process must be fully implemented and stewardship plan 7 guidance completed by July 1, 2019. 8 (4) A stewardship organization may be designated to act as an 9 agent on behalf of a manufacturer or manufacturers in operating and 10 implementing the stewardship program required under this chapter. Any 11 stewardship organization that has obtained such designation must 12 provide to the department a list of the manufacturers and brand names 13 that the stewardship organization represents within ((sixty)) 60 days 14 of its designation by a manufacturer as its agent, or within 15 ((sixty)) 60 days of removal of such designation. 16 (5) Each manufacturer must prepare and submit a stewardship plan 17 ((to the department by the later of July 1, 2024, or within thirty )), 18 individually or as a member of a stewardship organization, to the 19 department by January 31, 2030, or within 30 days of its first sale 20 of a photovoltaic module in or into the state , whichever is later .21 (a) A stewardship plan must, at a minimum: 22 (i) Describe how manufacturers will finance the takeback and 23 recycling system, and include an adequate funding mechanism to 24 finance the costs of collection, management, and recycling of 25 photovoltaic modules and residuals sold in or into the state by the 26 manufacturer with a mechanism that ensures that photovoltaic modules 27 can be delivered to takeback locations without cost to the last owner 28 or holder; 29 (ii) Accept all of their photovoltaic modules sold in or into the 30 state after July 1, 2017; 31 (iii) Describe how the program will minimize the release of 32 hazardous substances into the environment and maximize the recovery 33 of other components, including rare earth elements and commercially 34 valuable materials; 35 (iv) Provide for takeback of photovoltaic modules at locations 36 that are within the region of the state in which their photovoltaic 37 modules were used and are as convenient as reasonably practicable, 38 and if no such location within the region of the state exists, 39 include an explanation for the lack of such location;40 p. 4 E2SSB 5175.SL (v) Identify how relevant stakeholders, including consumers, 1 installers, building demolition firms, and recycling and treatment 2 facilities, will receive information required in order for them to 3 properly dismantle, transport, and treat the end-of-life photovoltaic 4 modules in a manner consistent with the objectives described in 5 (a)(iii) of this subsection; 6 (vi) Establish performance goals, including a goal for the rate 7 of combined reuse and recycling of collected photovoltaic modules as 8 a percentage of the total weight of photovoltaic modules collected, 9 which rate must be no less than ((eighty-five)) 85 percent.10 (b) A manufacturer must implement the stewardship plan.11 (c) A manufacturer may periodically amend its stewardship plan. 12 The department must approve the amendment if it meets the 13 requirements for plan approval outlined in the department's guidance. 14 When submitting proposed amendments, the manufacturer must include an 15 explanation of why such amendments are necessary. 16 (6) The department must approve a stewardship plan if it 17 determines the plan addresses each element outlined in the 18 department's guidance. 19 (7)(a) Beginning April ((1, 2026 )) 1st after the first year of 20 program operation , and by April 1st in each subsequent year, a 21 manufacturer, or its designated stewardship organization, must 22 provide to the department a report for the previous calendar year 23 that documents implementation of the plan and assesses achievement of 24 the performance goals established in subsection (5)(a)(vi) of this 25 section. 26 (b) The report may include any recommendations to the department 27 or the legislature on modifications to the program that would enhance 28 the effectiveness of the program, including management of program 29 costs and mitigation of environmental impacts of photovoltaic 30 modules. 31 (c) The manufacturer or stewardship organization must post this 32 report on a publicly accessible website. 33 (8) Beginning ((July 1, 2025 )) January 31, 2031 , no manufacturer, 34 distributor, retailer, or installer may sell or offer for sale a 35 photovoltaic module in or into the state unless the manufacturer of 36 the photovoltaic module has submitted to the department a stewardship 37 plan and received plan approval. 38 (a) The department must send a written warning to a manufacturer 39 that is not participating in a plan. The written warning must inform 40 p. 5 E2SSB 5175.SL the manufacturer that it must submit a plan or participate in a plan 1 within ((thirty)) 30 days of the notice. The department may assess a 2 penalty of up to ((ten thousand dollars )) $10,000 upon a manufacturer 3 for each sale that occurs in or into the state of a photovoltaic 4 module for which a stewardship plan has not been submitted by the 5 manufacturer and approved by the department after the initial written 6 warning. A manufacturer may appeal a penalty issued under this 7 section to the superior court of Thurston county within ((one hundred 8 eighty)) 180 days of receipt of the notice. 9 (b) The department must send a written warning to a distributor, 10 retailer, or installer that sells or installs a photovoltaic module 11 made by a manufacturer that is not participating in a plan. The 12 written warning must inform the distributor, retailer, or installer 13 that they may no longer sell or install a photovoltaic module if a 14 stewardship plan for that brand has not been submitted by the 15 manufacturer and approved by the department within ((thirty)) 30 days 16 of the notice. 17 (9) The department may collect a flat fee from participating 18 manufacturers to recover costs associated with the plan guidance, 19 review, and approval process described in subsection (3) of this 20 section. Other administrative costs incurred by the department for 21 program implementation activities, including stewardship plan review 22 and approval, enforcement, and any rule making, may be recovered by 23 charging every manufacturer an annual fee calculated by dividing 24 department administrative costs by the manufacturer's pro rata share 25 of the Washington state photovoltaic module sales in the most recent 26 preceding calendar year, based on best available information. The 27 sole purpose of assessing the fees authorized in this subsection is 28 to predictably and adequately fund the department's costs of 29 administering the photovoltaic module recycling program.30 (10) The photovoltaic module recycling account is created in the 31 custody of the state treasurer. All fees collected from manufacturers 32 under this chapter must be deposited in the account. Expenditures 33 from the account may be used only for administering this chapter. 34 Only the director of the department or the director's designee may 35 authorize expenditures from the account. The account is subject to 36 the allotment procedures under chapter 43.88 RCW, but an 37 appropriation is not required for expenditures. Funds in the account 38 may not be diverted for any purpose or activity other than those 39 specified in this section. 40 p. 6 E2SSB 5175.SL (11) The department may adopt rules as necessary for the purpose 1 of implementing, administering, and enforcing this chapter.2 (12) In lieu of preparing a stewardship plan and as provided by 3 subsection (5) of this section, a manufacturer may participate in a 4 national program for the convenient, safe, and environmentally sound 5 takeback and recycling of photovoltaic modules and their components 6 and materials, if substantially equivalent to the intent of the state 7 program. The department may determine substantial equivalence if it 8 determines that the national program adequately addresses and 9 fulfills each of the elements of a stewardship plan outlined in 10 subsection (5)(a) of this section and includes an enforcement 11 mechanism reasonably calculated to ensure a manufacturer's compliance 12 with the national program. Upon issuing a determination of 13 substantial equivalence, the department must notify affected 14 stakeholders including the manufacturer. If the national program is 15 discontinued or the department determines the national program is no 16 longer substantially equivalent to the state program in Washington, 17 the department must notify the manufacturer and the manufacturer must 18 provide a stewardship plan as described in subsection (5)(a) of this 19 section to the department for approval within ((thirty)) 30 days of 20 notification. 21 NEW SECTION. Sec. 2. A new section is added to chapter 70A.510 22 RCW to read as follows: 23 (1) Subject to the availability of amounts appropriated for this 24 specific purpose, the department must establish a photovoltaic module 25 advisory committee. The committee may include representatives of any 26 parties the department deems appropriate to carry out the duties in 27 subsection (3) of this section, but must include at least one member, 28 if feasible, representing each of the following entities:29 (a) Tribal organization or government; 30 (b) An association representing cities; 31 (c) An association representing counties; 32 (d) An environmental nonprofit; 33 (e) Environmental justice expertise, represented by an 34 environmental justice practitioner or academic; 35 (f) A solid waste collection or processing company;36 (g) An electric utility; 37 (h) A photovoltaic module manufacturer; 38 (i) A photovoltaic module distributor; 39 p. 7 E2SSB 5175.SL (j) A residential and commercial photovoltaic module installer 1 involved in the installation of photovoltaic modules on the 2 customer's side of the meter; 3 (k) A utility scale photovoltaic module project developer;4 (l) Photovoltaic module recycling industry expertise;5 (m) A labor organization representing workers in the electrical 6 industry; 7 (n) The department; and 8 (o) The Washington state department of commerce.9 (2) The department must contract with an independent third-party 10 consultant to convene, facilitate, support, and provide research for 11 the advisory committee. The consultant must: 12 (a) Provide staff and support to the advisory committee meetings 13 including agendas, presentations, notes, and materials for the 14 advisory committee; 15 (b) Hire subcontractors, as needed, for the research of any 16 relevant information regarding issues associated with photovoltaic 17 module recycling, stewardship, and takeback programs;18 (c) Draft reports and other materials for review by the advisory 19 committee; and 20 (d) Submit, by June 1, 2028, a report to the department 21 containing recommendations of the advisory committee, after review by 22 the advisory committee. 23 (3) The duties of the advisory committee include the following:24 (a) Develop recommendations for a convenient, safe, and 25 environmentally sound system for the recycling of photovoltaic 26 modules, minimization of hazardous waste, and recovery of 27 commercially valuable materials, with manufacturers financing the 28 takeback and recycling system, considering the following:29 (i) Policies and laws related to photovoltaic module stewardship 30 and takeback programs and the enforcement of these laws;31 (ii) Potential environmental and health impacts on overburdened 32 communities and vulnerable populations expected to be affected, 33 equitable distribution of environmental benefits, reduction of 34 environmental harms, and meaningful access to programs and service;35 (iii) Any work from other applicable advisory committees 36 currently discussing similar topics in other jurisdictions or at the 37 national level; and 38 (iv) Information and research provided by the department's 39 consultant. 40 p. 8 E2SSB 5175.SL (b) Provide information to the consultant as requested, to meet 1 the needs of this section. 2 (c) Review and comment on the consultant's report to the 3 department. 4 (4) By December 1, 2028, the department shall submit a report to 5 the appropriate committees of the legislature summarizing the work of 6 the consultant and the advisory committee. The report shall contain 7 recommended changes to this chapter. 8 (5) This section expires July 1, 2030. 9 NEW SECTION. Sec. 3. This act is necessary for the immediate 10 preservation of the public peace, health, or safety, or support of 11 the state government and its existing public institutions, and takes 12 effect June 30, 2025.13 Passed by the Senate March 5, 2025. Passed by the House April 10, 2025. Approved by the Governor April 22, 2025. Filed in Office of Secretary of State April 22, 2025. --- END --- p. 9 E2SSB 5175.SL