California’s Department of Resources Recycling and Recovery (“CalRecycle”) is soliciting feedback on its proposed AB 2440 (the “Act”), also known as the Responsible Battery Recycling Act of 2022. The purpose of the Act is to create a private sector-funded system for small battery recycling. The Act is one of many ongoing efforts by California to implement Extended Producer Responsibility (EPR) on product producers. The regulatory obligations in the ACT are targeted at producers of smaller batteries, excluding batteries over 2 kilograms, rechargeable batteries over 5 kilograms and 300 watt-hours, lead-acid batteries, motor vehicle batteries, fuel cell electrical generating facilities, medical devices used or prescribed by healthcare providers, and recalled batteries.

Regulatory obligations under the Act will be enforced on Producers (e.g., all California companies who are importers, distributors, or retailers of batteries) based on whether their battery products are covered products under the Act. For those covered products, the Act requires the Producers to fund, implement, and maintain a Stewardship Plan (e.g., within nine (9) months of the effective date of regulations adopted by CalRecycle)—which is a detailed program outlining how covered batteries will be collected, transported, and recycled throughout the state. This Stewardship Plan must be submitted to CalRecycle for approval annually and updated regularly. Producers must also ensure that convenient collection sites are available to consumers and that public education is part of the program.

The Act is one of many legal and regulatory actions taken by California to further establish the EPR model in the state, holding the Producers financially responsible for the end-of-life management of their covered products. Other EPR actions taken by California that are already in place, or will be in the future, include the SB 54 (the Plastic Pollution Prevention and Packaging Producer Responsibility Act) and SB 343 (Accurate Recycling Labels).

Consequences of failing to comply with the Act’s recordkeeping and annual reporting requirements are significant, including civil penalties of up to $50,000 per day. Similarly, consequences for failing to comply with other EPR laws, like SB 54 and SB 343, are equally costly.

If you have questions or need expert guidance on the Act, SB 54, SB 343, or any other EPR-related laws or regulations, Greenspoon Marder’s Environmental practice group is here to help. Our team has extensive experience advising product producers, manufacturers, importers, distributors, and retailers, helping them navigate through complex regulatory landscapes and achieve compliance.