HB 5226 — AN ACT ESTABLISHING AN EXTENDED PRODUCER RESPONSIBILITY PROGRAM FOR CONSUMER BATTERIES.

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608 (B) There is a change to the method of financing the battery stewardship plan implementation, including changes to the fees or fee structure established in the battery stewardship plan;

(5) The commissioner shall review a battery stewardship plan or amendment for compliance with this section and shall approve, disapproveorconditionallyapprovesuchplan,inwriting,disapproveorconditionallyapprovesuchplan,inwriting,notlaterthan notlaterthan one hundred twenty days after receipt of such plan.

(6) Whenever a battery stewardship plan or an amendment that makes substantive changes to an approved plan is submitted under this section, the commissioner shall make the proposed plan or amendment available for public review and comment for not less than thirty days.

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608654 (7)(6) EachWhenever a battery stewardship organizationplan shallor providean writtenamendment notificationthat makes substantive changes to an approved plan is submitted under this section, the commissioner notshall latermake thanthe thirtyproposed daysplan afteror aamendment produceravailable beginsfor orpublic endsreview participationand incomment afor batterynot stewardshipless organization.than thirty days.

(7) Each battery stewardship organization shall provide written notification to the commissioner not later than thirty days after a producer begins or ends participation in a battery stewardship organization.

(2) Each battery stewardship organization that implements a battery stewardshipsHB5226 plan/ onFile behalfNo. of producers shall develop a system to collect charges from participating producers to cover the costs of the plan's implementation.

(3)654 (A) Each battery stewardship organizationshall be responsible for sHB5226 / File No.

608654 12stewardship sHB5226plan Fileon No.behalf of producers shall develop a system to collect charges from participating producers to cover the costs of the plan's implementation.

608(3) (A) Each battery stewardship organizationshall be responsible for all costs of participating covered battery collection, transportation, processing, education, administration, department reimbursement, recycling and end-of-life management in accordance with the requirements of this section.

Except as otherwise provided in this subsection, each battery stewardship plan shallsHB5226 provide/ forFile theNo. collection of each chemistry and brand of covered batteryfromanyperson,business,governmentdepartmentornonprofit organization at each collection site that counts toward the satisfaction of the collection site criteria described in this section.

sHB5226654 /sHB5226 File No.

608654 13shall sHB5226provide Filefor No.the collection of each chemistry and brand of covered batteryfromanyperson,business,governmentdepartmentornonprofit organization at each collection site that counts toward the satisfaction of the collection site criteria described in this section.

608 (2) (A) For each collection site utilized by a battery stewardship program, each battery stewardship organization shall provide suitable collectioncontainersforcoveredbatteriesthataresegregatedcollectioncontainersforcoveredbatteriesthataresegregatedfromother fromother solid waste or make mutually agreeable alternative arrangements for the collection of batteries at the site.

(iii) As used in this subparagraph, "damaged and defective batteries" means batteries that have been damaged or identified by the manufacturer as being defective for safety reasons and that have the potential of producing a dangerous evolution of heat, fire or short circuit, as referred to in 49 CFR 173.185(f) as of January 1, 2023, or as updated by the department by regulations adopted in accordance with the provisions of chapter 54 of the general statutes to maintain sHB5226 / File No.

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608654 manufacturer as being defective for safety reasons and that have the potential of producing a dangerous evolution of heat, fire or short circuit, as referred to in 49 CFR 173.185(f) as of January 1, 2023, or as updated by the department by regulations adopted in accordance with the provisions of chapter 54 of the general statutes to maintain consistency with federal standards.

Each battery stewardship program shall use as a collection site for covered batteries any retailer or wholesaler that meets the criteria for collection sites in the approved batterysHB5226 stewardship/ planFile upNo. to the minimum number of sites required for compliance with the approved plan, upon the submission of a request by an entity to the battery stewardship organization to serve as a collection site.

Each654 battery stewardship program may use additional collection sites in excess of the minimum required in this subsection, as sHB5226 / File No.

608654 15battery sHB5226stewardship Fileplan No.up to the minimum number of sites required for compliance with the approved plan, upon the submission of a request by an entity to the battery stewardship organization to serve as a collection site.

608Each battery stewardship program may use additional collection sites in excess of the minimum required in this subsection, as may be agreed between the battery stewardship organization and the collection site.

(C)Eachbattery stewardshipprogramshall provideprovidefor for thecollection of loose batteries.

(h) (1) Each battery stewardship organization shall carry out promotional activities in support of the battery stewardship plan implementation,sHB5226 including,/ butFile notNo. limited to, the development and (A) maintenance of a web site;

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654 implementation, including, but not limited to, the development and (A) maintenance of a web site;

(D) distribution of promotional materials about the battery stewardship program and the restriction on sHB5226the /disposal Fileof No.covered batteries to be used by persons, including, but not limited to, retailers, government agencies, waste and recycling collectors and nonprofit organizations;

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608 the disposal of covered batteries to be used by persons, including, but not limited to, retailers, government agencies, waste and recycling collectors and nonprofit organizations;

(B) Each battery stewardship organization may seek reimbursement fromsHB5226 the/ producerFile ofNo. the recalled battery for expenses incurred in the collection, transportation or processing of such batteries.

(4)654 Upon request by a retailer or other potential collector, the battery stewardship organization shall provide the retailer or other potential sHB5226 / File No.

608654 17from sHB5226the Fileproducer No.of the recalled battery for expenses incurred in the collection, transportation or processing of such batteries.

608(4) Upon request by a retailer or other potential collector, the battery stewardship organization shall provide the retailer or other potential collector educational materials describing collection opportunities for batteries.

(B) A summary financial statement that documents the financing of the battery stewardship organization's program and an analysis of program costs and expenditures, including an analysis of the program's expenses, such as collection costs, transportation costs, recycling costs, educationsHB5226 costs/ andFile administrativeNo. overhead costs.

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654 education costs and administrative overhead costs.

Each battery stewardship organization that implements similar battery sHB5226stewardship /programs Filein No.multiple states may submit a financial statement including all covered states, provided the statement breaks out financial information pertinent to this state;

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608 stewardship programs in multiple states may submit a financial statement including all covered states, provided the statement breaks out financial information pertinent to this state;

(I) The collection rate achieved under the program, including a descriptionsHB5226 of/ howFile theNo. collection rate was calculated and how it compares to the collection rate goals established in this section;

(J)654 The estimated aggregate sales, by weight and chemistry, of batteries and batteries contained in or with battery-containing products soldinthestatebyparticipatingproducersforeachofthepreviousthree sHB5226 / File No.

608654 19description sHB5226of Filehow No.the collection rate was calculated and how it compares to the collection rate goals established in this section;

608(J) The estimated aggregate sales, by weight and chemistry, of batteries and batteries contained in or with battery-containing products soldinthestatebyparticipatingproducersforeachofthepreviousthree calendar years;

and (P)sHB5226 An/ evaluationFile ofNo. the effectiveness of education and outreach activities.

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654 (P) An evaluation of the effectiveness of education and outreach activities.

sHB5226(3) /If Filea No.battery stewardship organization has disposed of covered batteries though energy recovery, incineration or landfilling during the preceding calendar year of program implementation, the annual report shall specify the steps that the battery stewardship organization will take to make the recycling of covered batteries cost effective, where possible, or to otherwise increase battery recycling rates achieved by the battery stewardship organization.

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608 (3) If a battery stewardship organization has disposed of covered batteries though energy recovery, incineration or landfilling during the preceding calendar year of program implementation, the annual report shall specify the steps that the battery stewardship organization will take to make the recycling of covered batteries cost effective, where possible, or to otherwise increase battery recycling rates achieved by the battery stewardship organization.

(2)sHB5226 The/ penaltiesFile providedNo. for in this subsection may be recovered in a civil action brought by the Attorney General.

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654 (2) The penalties provided for in this subsection may be recovered in a civil action brought by the Attorney General.

(4) The penalties and injunctions provided in this subsection are in sHB5226addition /to Fileany No.penalties, injunctions or other relief provided under any other provision of the general statutes.

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608 addition to any penalties, injunctions or other relief provided under any other provision of the general statutes.

On and after January 1, 2029,suchbatteryshallbemarkedwithproperlabeling2029,suchbatteryshallbemarkedwithproperlabelingtoensureproper toensureproper 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.

(n)sHB5226 (1)/ AnyFile batteryNo. stewardship organization that implements an approved battery stewardship plan in compliance with the requirements of this section may bring a civil action against a producer for damages when:

(A)654 Such organization incurs more than one thousand dollars in actual costs from collecting, handling, recycling and properly disposing sHB5226 / File No.

608654 22(n) sHB5226(1) FileAny No.battery stewardship organization that implements an approved battery stewardship plan in compliance with the requirements of this section may bring a civil action against a producer for damages when:

608(A) Such organization incurs more than one thousand dollars in actual costs from collecting, handling, recycling and properly disposing of the defendant producer's batteries sold or offered for sale in the state;

(o) Each producer and battery stewardship organization shall be immune from liability for any claim of a violation of antitrust law or unfair trade practice if such conduct is a violation of antitrust law, to the extent such producer or battery stewardship organization is exercising authority pursuant to the provisions of this section.

Section 1 October 1, 2024 New section JUDsHB5226 Joint/ FavorableFile Subst.No.

sHB5226654 /sHB5226 File No.

608654 23The sHB5226following FileFiscal No.Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

608 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

Fee revenue may begin to be collected in either late FY 25 or FY 26, depending on DEEP's decision regardingsHB5226 timing./ File No.

Total654 revenue is expected to be minimal annually, sHB5226 / File No.

608654 24regarding sHB5226timing. File No.

608Total revenue is expected to be minimal annually, subject to the number of stewardship organizations and the fee set by DEEP.

On average, the marginal cost for supervision in the community is less than $800 each year for adults.1adults. The bill additionally allows DEEP and the Attorney General to enforce battery stewardship requirements through fines.

1 The bill additionally allows DEEP and the Attorney General to enforce battery stewardship requirements through fines.

The bill also allows municipalities to serve as a collection site for the battery1Probation stewardshipmarginal program.cost is based on services provided by private providers and only includes costs that increase with each additional participant.

Any costs to municipalities for serving as 1Probation marginal cost is based on services provided by private providers and only includes costs that increase with each additional participant.

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608654 a collection site would be reimbursed by the battery stewardship organization.program.

Any costs to municipalities for serving as a collection site would be reimbursed by the battery stewardship organization.

House "A" makes a technical change regarding liability of battery producersandbatterystewardshiporganizationsthatresultsinnofiscal impact.

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608654 OLR Bill Analysis sHB 5226 (as amended by House "A")* AN ACT ESTABLISHING AN EXTENDED PRODUCER RESPONSIBILITY PROGRAM FOR CONSUMER BATTERIES.

The bill (1) generally makes a violation of the bill’s requirements subject to a $7,000 civil fine;fine, (2) authorizes the attorney general to enforce the bill’s requirements in court, (3) gives the stewardship organizations a private right of action against certain noncompliant producers, and (4) immunizes producers and organizations from claims of antitrust or unfair trade practice violations under certain sHB5226 / File No.

(2)654 authorizes27 thesHB5226 attorneyFile generalNo. to enforce the bill’s requirements in court;

and654 (3)circumstances. gives the stewardship organizations a private right of action against certain noncompliant producers.

sHB5226*House /Amendment File“A” No.adds a provision immunizing producers and organizations from antitrust and unfair trade practice violation claims.

608EFFECTIVE 27DATE: sHB5226 File No.

608 EFFECTIVE DATE:

(Because plans for portable batteries must be submitted for DEEP’s approval by July 1, 20252025, (and by July 1, 2027, for medium format batteries), and DEEP has up to 120 days to review them for approval or disapproval and additional days apply for resubmitting and rereviewing, it is unclear if there will be approved plans by these dates when plans are not approved during the initial 120-day period.) Batteries and Battery Products Involved The bill applies to the management of “covered batteries” and “battery-containing products.” Covered batteries include portable batteries and medium format batteries, but not the following:

lead acid batteries weighing over 11 pounds, 4.sHB5226 / File No.

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654 4.

batteries in battery-containing products that are not intended or designed by the manufacturer to be removable with common sHB5226household /tools, Fileand No.7.

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608 household tools, and 7.

the licensee of a brand or trademark under which the battery is sold, offered for sale, or distributed in or into Connecticut, regardlesssHB5226 of/ whetherFile theNo. trademark is registered in this state;

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654 regardless of whether the trademark is registered in this state;

sHB5226The /bill Filelargely No.applies the same hierarchy for determining a producer with respect to battery-containing products, though brand or trademark licenseesmay bedeemedtheproducersiftheproduct isused in a commercial enterprise, in addition to being sold, offered for sale, or distributed in the state as described above.

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608 The bill largely applies the same hierarchy for determining a producer with respect to battery-containing products, though brand or trademark licenseesmay bedeemedtheproducersiftheproduct isused in a commercial enterprise, in addition to being sold, offered for sale, or distributed in the state as described above.

Lastly,sHB5226 the/ billFile prohibitsNo. retailers, producers, and battery stewardship organizations from charging consumers a specific fee during a sale to cover the organizations’ or their programs’ administrative or operational costs.

Identification654 Markings30 Beginning January 1, 2027, the bill generally prohibits producers and retailers from selling, offering for sale, or distributing in or into sHB5226 / File No.

608654 30Lastly, sHB5226the Filebill No.prohibits retailers, producers, and battery stewardship organizations from charging consumers a specific fee during a sale to cover the organizations’ or their programs’ administrative or operational costs.

608Identification Markings Beginning January 1, 2027, the bill generally prohibits producers and retailers from selling, offering for sale, or distributing in or into Connecticut a covered battery or battery-containing product without an identification mark of the battery’s producer.

Under thebill,eachbattery stewardshiporganizationmust submit its plansHB5226 for/ coveredFile portableNo. batteries by July 1, 2025, to DEEP for review and approval.

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654 plan for covered portable batteries by July 1, 2025, to DEEP for review and approval.

sHB52261. / File No.

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608 1.

They also (1) provide for recording, tracking, and documenting materials’ final dispositionsHB5226 in/ theFile stateNo. and outside of it and (2) include comprehensive liability coverage for the stewardship organization with commercially practicable environmental liability coverage.

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654 disposition in the state and outside of it and (2) include comprehensive liability coverage for the stewardship organization with commercially practicable environmental liability coverage.

sHB52262. / File No.

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608 2.

how the program will reach recycling efficiency rates of at least 70%sHB5226 for/ nonrechargeableFile batteriesNo. and at least 60% for rechargeable batteries.

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654 70% for nonrechargeable batteries and at least 60% for rechargeable batteries.

sHB5226Performance /Goals. File No.

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608 Performance Goals.

Review and Approval Process The bill requires the DEEP commissioner to (1) review submitted planssHB5226 and/ (2)File baseNo. her approval on whether the plan has the above information.

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654 plans and (2) base her approval on whether the plan has the above information.

If the commissioner disapproves it again, she must again explain why in a notice of sHB5226determination /to Filethe No.producer or stewardship organization.

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608 determination to the producer or stewardship organization.

PROGRAM FUNDING UndersHB5226 the/ bill,File aNo. battery stewardship organization must ensure that there is adequate funding to fully implement its approved plan, including program evaluation.

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654 Under the bill, a battery stewardship organization must ensure that there is adequate funding to fully implement its approved plan, including program evaluation.

The bill separately authorizes a stewardship organization to seek sHB5226reimbursement /from Fileproducers No.of recalled batteries for its expenses to collect, transport, or process them.

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608 reimbursement from producers of recalled batteries for its expenses to collect, transport, or process them.

Under the bill, a battery stewardship program must use existing waste collection services and facilities, including battery collection sites, transporters,sHB5226 consolidators,/ processors,File andNo. retailers, when doing so is cost effective, mutually agreeable, and otherwise practicable.

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654 transporters, consolidators, processors, and retailers, when doing so is cost effective, mutually agreeable, and otherwise practicable.

It also specifies that programs are not required to collect (1) battery-containing products or (2) batteries that sHB5226are /noteasily Fileremovablefromaproduct No.except by themanufacturer and that stay in a battery-containing product when it is brought to a collection site.

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608 are noteasily removablefromaproduct except by themanufacturer and that stay in a battery-containing product when it is brought to a collection site.

(The bill, however, does not set minimum thresholds for collection sites.) Under the bill, for each collection site it uses, a battery stewardship organizationsHB5226 must/ (1)File provideNo. suitable collection containers that are separated from other solid waste or (2) make mutually agreeable alternative arrangements to collect the batteries at a site.

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654 organization must (1) provide suitable collection containers that are separated from other solid waste or (2) make mutually agreeable alternative arrangements to collect the batteries at a site.

The bill requires the collection containers to (1) be within the view of someone responsible for them at sHB5226the /collection Filesite No.and (2) have the signs the stewardship organization gave to the site to educate customers about the site’s end-of-life management options for batteries.

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608 the collection site and (2) have the signs the stewardship organization gave to the site to educate customers about the site’s end-of-life management options for batteries.

The bill requires the stewardship organizations to havecollect damaged or defective batteries at collection sites, other than retailers, with staff trained to handle and ship the batteries.

Under the bill, these batteries are those whichthat (1) are damaged or manufacturer- identified as defective for safety reasons and (2) may produce dangerous heat, fire, or short circuit.

ADMINISTRATIVEsHB5226 FEE/ TheFile billNo. allows DEEP to assess a reasonable annual fee, capped at $50,000, to each battery stewardship organization to administer and enforce the bill’s requirements.

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654 ADMINISTRATIVE FEE The bill allows DEEP to assess a reasonable annual fee, capped at $50,000, to each battery stewardship organization to administer and enforce the bill’s requirements.

If multiple battery stewardship organizations are implementing DEEP-approved plans, they must sHB5226coordinate /education Fileand No.outreach efforts.

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608 coordinate education and outreach efforts.

For collection sites, the bill requires a stewardship organization to providesHB5226 (1)/ consumer-focusedFile educationalNo. promotional materials;

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654 provide (1) consumer-focused educational promotional materials;

For retailers and other potential collectors that ask for them, the bill requires a stewardship organization to provide educational materials thatdescribing describe collection opportunities.

Additionally, during a program’s first year and then every five years, sHB5226a /stewardship Fileorganization No.must conduct a public awareness survey about the program’s requirements.

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608 a stewardship organization must conduct a public awareness survey about the program’s requirements.

Annual Report Information General Report Topic Required Information Collected Materials* • weight, by chemistry, of collected batteries • weight of materials recycled from collected batteries, in total and by recycling method • weightandchemistryofbatteriessenttoeachdisposalfacility, which may be approximated based on extrapolations of national or regional data • program collection rate, including how it was calculated and compared to the bill’s other collection rate goals Battery Management • description of battery collection, transport, and recycling methods used • list of and address for all collection sites, including a current map showing their locations with links to the sites’ websites, if any • description of how collected batteries were managed and recycled, including best available technologies and the recycling efficiency rate • list of all facilities used to process or dispose of batteries, including their location (and if the location is in (1) the United States, (2) an organization for economic cooperation and development (OECD) country, or (3) a country that meets OECD’s operating standards) • for domestically-located processing or disposal facilities, a sHB5226 / File No.

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608654 General Report Topic Required Information • program collection rate, including how it was calculated and compared to the bill’s other collection rate goals Battery Management • description of battery collection, transport, and recycling methods used • list of and address for all collection sites, including a current map showing their locations with links to the sites’ websites, if any • description of how collected batteries were managed and recycled, including best available technologies and the recycling efficiency rate • list of all facilities used to process or dispose of batteries, including their location (and if the location is in (1) the United States, (2) an organization for economic cooperation and development (OECD) country, or (3) a country that meets OECD’s operating standards) • for domestically-located processing or disposal facilities, a summary of any violations of environmental laws and regulations for the prior three years • for each disposal facility, how it recycled or otherwise disposed of batteries and battery components • calculation of recycling efficiency rates • summary on progress to meet performance goals and if they were not met, an explanation as to why • if batteries are disposed of through energy recovery, incineration, or landfilling, steps that will be taken to make recycling cost effective, if possible, or to otherwise increase recycling rates Education and • description of (1) education and outreach efforts to Outreach consumers, collection sites, manufacturers, distributors, and retailers by the program operator to promote collection and recycling and (2) how the efforts met the bill’s requirements • sample materials • summary of (1) coordinated efforts with other battery stewardship organizations withDEEP-approved plans and (2) changes to education and outreach activities • effectiveness evaluation of education and outreach activities Financial • for each of the three prior years, estimated total sales, by weight and chemistry, of batteries and batteries contained in or with battery-containing products sold in Connecticut by participating producers • independent financial audit implemented by the stewardship organization, including a breakdown of program expenses (e.g., collection, recycling, and education costs, and overhead)sHB5226 •/ summaryfinancialstatementshowingtheprogram’sfinancingFile andNo. an analysis of program costs and expenses (e.g., collection, transportation, recycling, education, and overhead costs) (must be detailed enough to be transparent as to if funds from producers with activity in Connecticut were spent onprogramsinthestate,butmaybesubmittedasadocument covering programs in all states in which the organization operates if it breaks out Connecticut-specific information) *The bill specifies that battery and recovered resources weights must only be counted once and only by one stewardship organization.

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654 General Report Topic Required Information overhead) • summaryfinancialstatementshowingtheprogram’sfinancing and an analysis of program costs and expenses (e.g., collection, transportation, recycling, education, and overhead costs) (must be detailed enough to be transparent as to if funds from producers with activity in Connecticut were spent onprogramsinthestate,butmaybesubmittedasadocument covering programs in all states in which the organization operates if it breaks out Connecticut-specific information) *The bill specifies that battery and recovered resources weights must only be counted once and only by one stewardship organization.

It specifies that these actions and penalties and any court injunction are in addition to penalties, injunctions, or sHB5226other /relief Filestate No.law already authorizes.

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608 other relief state law already authorizes.

Civil Action by a Stewardship Organization The bill gives a battery stewardship organization that is implementing an approved stewardship plan in compliance with the bill’ssHB5226 provisions/ aFile privateNo. right of action for damages against a producer under certain circumstances.

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654 bill’s provisions a private right of action for damages against a producer under certain circumstances.

PROPRIETARYLIABILITY INFORMATIONPROTECTION sHB5226Under /the Filebill, No.to the extent a producer or stewardship organization is exercising authority under the bill’s provisions, it is immune from liability for any antitrust or unfair trade practice claim based on a violation of antitrust law.

608PROPRIETARY 42INFORMATION sHB5226Under Filethe No.bill, any proprietary information submitted to DEEP as part of meeting the bill’s requirements is exempt from disclosure under state freedom of information laws.

608BACKGROUND UnderLegislative theHistory bill,The anyHouse proprietaryreferred informationthe submittedbill (File 195) to the Judiciary Committee, which reported a substitute that eliminated provisions on (1) making a false statement knowingly on a DEEP asform parta ofmisdemeanor, meeting(2) theDEEP bill’sgenerally requirementsnot isbeing exempta fromnecessary disclosureparty underor staterequired freedomto ofhelp informationor laws.participate in a producer’s civil action for damages, and (3) antitrust liability protection.

BACKGROUNDsHB5226 Legislative/ HistoryFile TheNo. House referred the bill (File 195) to the Judiciary Committee, which reported a substitute that eliminates provisions on (1) making a false statement knowingly on a DEEP form a misdemeanor, (2) DEEP generally not being a necessary party or required to help or participate in a producer’s civil action for damages, and (3) antitrust liability protection.

COMMITTEE654 ACTION43 Environment Committee Joint Favorable Substitute Yea 34 Nay 0 (03/15/2024) Judiciary Committee Joint Favorable Substitute Yea 33 Nay 1 (04/12/2024) sHB5226 / File No.

608654 43COMMITTEE ACTION Environment Committee Joint Favorable Substitute Yea 34 Nay 0 (03/15/2024) Judiciary Committee Joint Favorable Substitute Yea 33 Nay 1 (04/12/2024) sHB5226 / File No.

654 44