Delaying certain implementation dates for the photovoltaic module stewardship and takeback program.

CERTIFICATION OF ENROLLMENT HOUSE BILL 1393 Chapter 45, Laws of 2021 67th Legislature 2021 Regular Session PHOTOVOLTAIC MODULE STEWARDSHIP AND TAKEBACK PROGRAM —IMPLEMENTATION DATES EFFECTIVE DATE: July 25, 2021 Passed by the House February 26, 2021 Yeas 93 Nays 2 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate March 29, 2021 Yeas 45 Nays 4 DENNY HECK President of the Senate CERTIFICATE I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1393 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk Approved April 14, 2021 3:28 PM FILED April 15, 2021 JAY INSLEE Governor of the State of Washington Secretary of State State of Washington AN ACT Relating to delaying certain implementation dates for the 1 photovoltaic module stewardship and takeback program; and reenacting 2 and amending RCW 70A.510.010. 3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4 Sec. 1. RCW 70A.510.010 and 2020 c 287 s 1 are each reenacted 5 and amended to read as follows: 6 (1) The legislature finds that a convenient, safe, and 7 environmentally sound system for the recycling of photovoltaic 8 modules, minimization of hazardous waste, and recovery of 9 commercially valuable materials must be established. The legislature 10 further finds that the responsibility for this system must be shared 11 among all stakeholders, with manufacturers financing the takeback and 12 recycling system. 13 (2) The definitions in this subsection apply throughout this 14 section unless the context clearly requires otherwise.15 (a) "Consumer electronic device" means any device containing an 16 electronic circuit board that is intended for everyday use by 17 individuals, such as a watch or calculator. 18 (b) "Department" means the department of ecology.19 (c) "Distributor" means a person who markets and sells 20 photovoltaic modules to retailers in Washington. 21 HOUSE BILL 1393 Passed Legislature - 2021 Regular Session State of Washington 67th Legislature 2021 Regular Session By Representatives Shewmake, Ramel, Lekanoff, and Duerr Read first time 01/27/21. Referred to Committee on Environment & Energy. p. 1 HB 1393.SL (d) "Installer" means a person who assembles, installs, and 1 maintains photovoltaic module systems. 2 (e) "Manufacturer" means any person in business or no longer in 3 business but having a successor in interest who, irrespective of the 4 selling technique used, including by means of distance or remote 5 sale: 6 (i) Manufactures or has manufactured a photovoltaic module under 7 its own brand names for use or sale in or into this state;8 (ii) Assembles or has assembled a photovoltaic module that uses 9 parts manufactured by others for use or sale in or into this state 10 under the assembler's brand names; 11 (iii) Resells or has resold in or into this state under its own 12 brand names a photovoltaic module produced by other suppliers, 13 including retail establishments that sell photovoltaic modules under 14 their own brand names; 15 (iv) Manufactures or has manufactured a cobranded photovoltaic 16 module product for use or sale in or into this state that carries the 17 name of both the manufacturer and a retailer; 18 (v) Imports or has imported a photovoltaic module into the United 19 States that is used or sold in or into this state. However, if the 20 imported photovoltaic module is manufactured by any person with a 21 presence in the United States meeting the criteria of manufacturer 22 under (e)(i) through (vi) of this subsection, that person is the 23 manufacturer; 24 (vi) Sells at retail a photovoltaic module acquired from an 25 importer that is the manufacturer and elects to register as the 26 manufacturer for those products; or 27 (vii) Elects to assume the responsibility and register in lieu of 28 a manufacturer as defined under (e)(i) through (vi) of this 29 subsection. 30 (f) "Photovoltaic module" means the smallest nondivisible, 31 environmentally protected assembly of photovoltaic cells or other 32 photovoltaic collector technology and ancillary parts intended to 33 generate electrical power under sunlight, except that "photovoltaic 34 module" does not include a photovoltaic cell that is part of a 35 consumer electronic device for which it provides electricity needed 36 to make the consumer electronic device function. "Photovoltaic 37 module" includes but is not limited to interconnections, terminals, 38 and protective devices such as diodes that: 39 (i) Are installed on, connected to, or integral with buildings;40 p. 2 HB 1393.SL (ii) Are used as components of freestanding, off-grid, power 1 generation systems, such as for powering water pumping stations, 2 electric vehicle charging stations, fencing, street and signage 3 lights, and other commercial or agricultural purposes; or4 (iii) Are part of a system connected to the grid or utility 5 service. 6 (g) "Predecessor" means an entity from which a manufacturer 7 purchased a photovoltaic module brand, its warranty obligations, and 8 its liabilities. "Predecessor" does not include entities from which a 9 manufacturer purchased only manufacturing equipment.10 (h) "Rare earth element" means lanthanum, cerium, praseodymium, 11 neodymium, promethium, samarium, europium, gadolinium, terbium, 12 dysprosium, holmium, erbium, thulium, ytterbium, lutetium, yttrium, 13 or scandium. 14 (i) "Retailer" means a person who offers photovoltaic modules for 15 retail sale in the state through any means including, but not limited 16 to, remote offerings such as sales outlets, catalogs, or internet 17 sales. 18 (j) "Reuse" means any operation by which a photovoltaic module or 19 a component of a photovoltaic module changes ownership and is used 20 for the same purpose for which it was originally purchased.21 (k) "Stewardship plan" means the plan developed by a manufacturer 22 or its designated stewardship organization for a self-directed 23 stewardship program. 24 (l) "Stewardship program" means the activities conducted by a 25 manufacturer or a stewardship organization to fulfill the 26 requirements of this chapter and implement the activities described 27 in its stewardship plan. 28 (3) The department must develop guidance for a photovoltaic 29 module stewardship and takeback program to guide manufacturers in 30 preparing and implementing a self-directed program to ensure the 31 convenient, safe, and environmentally sound takeback and recycling of 32 photovoltaic modules and their components and materials. By January 33 1, 2018, the department must establish a process to develop guidance 34 for photovoltaic module stewardship plans by working with 35 manufacturers, stewardship organizations, and other stakeholders on 36 the content, review, and approval of stewardship plans. The 37 department's process must be fully implemented and stewardship plan 38 guidance completed by July 1, 2019. 39 p. 3 HB 1393.SL (4) A stewardship organization may be designated to act as an 1 agent on behalf of a manufacturer or manufacturers in operating and 2 implementing the stewardship program required under this chapter. Any 3 stewardship organization that has obtained such designation must 4 provide to the department a list of the manufacturers and brand names 5 that the stewardship organization represents within sixty days of its 6 designation by a manufacturer as its agent, or within sixty days of 7 removal of such designation. 8 (5) Each manufacturer must prepare and submit a stewardship plan 9 to the department by the later of July 1, ((2022)) 2024, or within 10 thirty days of its first sale of a photovoltaic module in or into the 11 state. 12 (a) A stewardship plan must, at a minimum: 13 (i) Describe how manufacturers will finance the takeback and 14 recycling system, and include an adequate funding mechanism to 15 finance the costs of collection, management, and recycling of 16 photovoltaic modules and residuals sold in or into the state by the 17 manufacturer with a mechanism that ensures that photovoltaic modules 18 can be delivered to takeback locations without cost to the last owner 19 or holder; 20 (ii) Accept all of their photovoltaic modules sold in or into the 21 state after July 1, 2017; 22 (iii) Describe how the program will minimize the release of 23 hazardous substances into the environment and maximize the recovery 24 of other components, including rare earth elements and commercially 25 valuable materials; 26 (iv) Provide for takeback of photovoltaic modules at locations 27 that are within the region of the state in which their photovoltaic 28 modules were used and are as convenient as reasonably practicable, 29 and if no such location within the region of the state exists, 30 include an explanation for the lack of such location;31 (v) Identify how relevant stakeholders, including consumers, 32 installers, building demolition firms, and recycling and treatment 33 facilities, will receive information required in order for them to 34 properly dismantle, transport, and treat the end-of-life photovoltaic 35 modules in a manner consistent with the objectives described in 36 (a)(iii) of this subsection; 37 (vi) Establish performance goals, including a goal for the rate 38 of combined reuse and recycling of collected photovoltaic modules as 39 p. 4 HB 1393.SL a percentage of the total weight of photovoltaic modules collected, 1 which rate must be no less than eighty-five percent.2 (b) A manufacturer must implement the stewardship plan.3 (c) A manufacturer may periodically amend its stewardship plan. 4 The department must approve the amendment if it meets the 5 requirements for plan approval outlined in the department's guidance. 6 When submitting proposed amendments, the manufacturer must include an 7 explanation of why such amendments are necessary. 8 (6) The department must approve a stewardship plan if it 9 determines the plan addresses each element outlined in the 10 department's guidance. 11 (7)(a) Beginning April 1, ((2024)) 2026, and by April 1st in each 12 subsequent year, a manufacturer, or its designated stewardship 13 organization, must provide to the department a report for the 14 previous calendar year that documents implementation of the plan and 15 assesses achievement of the performance goals established in 16 subsection (5)(a)(vi) of this section. 17 (b) The report may include any recommendations to the department 18 or the legislature on modifications to the program that would enhance 19 the effectiveness of the program, including management of program 20 costs and mitigation of environmental impacts of photovoltaic 21 modules. 22 (c) The manufacturer or stewardship organization must post this 23 report on a publicly accessible website. 24 (8) Beginning July 1, ((2023)) 2025, no manufacturer, 25 distributor, retailer, or installer may sell or offer for sale a 26 photovoltaic module in or into the state unless the manufacturer of 27 the photovoltaic module has submitted to the department a stewardship 28 plan and received plan approval. 29 (a) The department must send a written warning to a manufacturer 30 that is not participating in a plan. The written warning must inform 31 the manufacturer that it must submit a plan or participate in a plan 32 within thirty days of the notice. The department may assess a penalty 33 of up to ten thousand dollars upon a manufacturer for each sale that 34 occurs in or into the state of a photovoltaic module for which a 35 stewardship plan has not been submitted by the manufacturer and 36 approved by the department after the initial written warning. A 37 manufacturer may appeal a penalty issued under this section to the 38 superior court of Thurston county within one hundred eighty days of 39 receipt of the notice. 40 p. 5 HB 1393.SL (b) The department must send a written warning to a distributor, 1 retailer, or installer that sells or installs a photovoltaic module 2 made by a manufacturer that is not participating in a plan. The 3 written warning must inform the distributor, retailer, or installer 4 that they may no longer sell or install a photovoltaic module if a 5 stewardship plan for that brand has not been submitted by the 6 manufacturer and approved by the department within thirty days of the 7 notice. 8 (9) The department may collect a flat fee from participating 9 manufacturers to recover costs associated with the plan guidance, 10 review, and approval process described in subsection (3) of this 11 section. Other administrative costs incurred by the department for 12 program implementation activities, including stewardship plan review 13 and approval, enforcement, and any rule making, may be recovered by 14 charging every manufacturer an annual fee calculated by dividing 15 department administrative costs by the manufacturer's pro rata share 16 of the Washington state photovoltaic module sales in the most recent 17 preceding calendar year, based on best available information. The 18 sole purpose of assessing the fees authorized in this subsection is 19 to predictably and adequately fund the department's costs of 20 administering the photovoltaic module recycling program.21 (10) The photovoltaic module recycling account is created in the 22 custody of the state treasurer. All fees collected from manufacturers 23 under this chapter must be deposited in the account. Expenditures 24 from the account may be used only for administering this chapter. 25 Only the director of the department or the director's designee may 26 authorize expenditures from the account. The account is subject to 27 the allotment procedures under chapter 43.88 RCW, but an 28 appropriation is not required for expenditures. Funds in the account 29 may not be diverted for any purpose or activity other than those 30 specified in this section. 31 (11) The department may adopt rules as necessary for the purpose 32 of implementing, administering, and enforcing this chapter.33 (12) In lieu of preparing a stewardship plan and as provided by 34 subsection (5) of this section, a manufacturer may participate in a 35 national program for the convenient, safe, and environmentally sound 36 takeback and recycling of photovoltaic modules and their components 37 and materials, if substantially equivalent to the intent of the state 38 program. The department may determine substantial equivalence if it 39 determines that the national program adequately addresses and 40 p. 6 HB 1393.SL fulfills each of the elements of a stewardship plan outlined in 1 subsection (5)(a) of this section and includes an enforcement 2 mechanism reasonably calculated to ensure a manufacturer's compliance 3 with the national program. Upon issuing a determination of 4 substantial equivalence, the department must notify affected 5 stakeholders including the manufacturer. If the national program is 6 discontinued or the department determines the national program is no 7 longer substantially equivalent to the state program in Washington, 8 the department must notify the manufacturer and the manufacturer must 9 provide a stewardship plan as described in subsection (5)(a) of this 10 section to the department for approval within thirty days of 11 notification. 12 Passed by the House February 26, 2021. Passed by the Senate March 29, 2021. Approved by the Governor April 14, 2021. Filed in Office of Secretary of State April 15, 2021. --- END --- p. 7 HB 1393.SL