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Battery Stewardship Briefing DocumentRevised

May 30, 2014

Prepared by the Product Stewardship Institute, Inc.

The Product Stewardship Institute

The Product Stewardship Institute (PSI) is a national, membership-based nonprofit committed to reducing the health, safety, and environmental impacts of consumer products across their lifecycle with a strong focus on sustainable end-of-life management. Headquartered in Boston, Mass., we take a unique product stewardship approach to solving waste management problems by encouraging product design changes and mediating stakeholder dialogues. With 47 state environmental agency members, along with hundreds of local government members from coast-to-coast, and 95 corporate, business, academic, non-U.S. government, and organizational partners, we work to design, implement, evaluate, strengthen, and promote both legislative and voluntary product stewardship initiatives across North America.

Project Contact

For more information, please contact Scott Cassel, PSI Chief Executive Officer and Founder, at [email protected], or (617) 236-4822.

Acknowledgements

This project has been sponsored by the Connecticut Department of Energy and Environmental Protection. A significant amount of material used in this updated report was taken from PSI’s September 8, 2010 Battery Stewardship Briefing Document, which was sponsored by Call2Recycle, Inc. PSI would like to thank the many individuals who provided input in the development and review of this Battery Stewardship Briefing Document.

DRAFT Battery Stewardship Briefing Document – May 30, 2014 iProduct Stewardship Institute, Inc.

mailto:[email protected]

TABLE OF CONTENTS

I. INTRODUCTION...........................................................................................................................................1

II. OVERVIEW OF KEY ISSUES..........................................................................................................................3

III. SUSTAINABLE FINANCING..........................................................................................................................6

IV. ELEMENTS OF AN EXTENDED PRODUCER RESPONSIBILITY (EPR) BILL FOR BATTERIES............................6

V. BATTERY INDUSTRY AND PROCESSING......................................................................................................9

VI. BATTERY MANAGEMENT..........................................................................................................................14

VII. POTENTIAL STRATEGIES RELATED TO PROJECT GOALS............................................................................18

DRAFT Battery Stewardship Briefing Document – May 30, 2014 iiProduct Stewardship Institute, Inc.

I. INTRODUCTION

Purpose of this Briefing Document

The purpose of this Battery Stewardship Briefing Document is to prepare participants for a PSI-facilitated meeting that will be held in Hartford, Connecticut on June 11-12, 2014. The meeting will be national in scope but focused on the northeast region. It will also serve as a basis for additional discussions on battery management in the United States. The briefing document includes background information on battery composition, markets, and lifecycle management. It also proposes a project focus, issue statement, project goals, and meeting outcomes. Finally, it presents potential solutions pertaining to each of the project goals.

A significant amount of material used in this updated report was taken from PSI’s September 8, 2010 Battery Stewardship Briefing Document,1 which was sponsored by Call2Recycle, Inc. The information in that report was derived through discussions with key stakeholders, as well as a review of available literature. It also included stakeholder input from discussions that took place at the PSI National Product Stewardship Forum on July 21, 2010, in Boston. For that earlier report, PSI spoke with representatives of 40 different agencies, companies, and organizations through a series of one-on-one interviews and group calls. Interviews included representatives of 18 government agencies across the U.S. and Canada, 7 manufacturers or manufacturer associations, 4 retailers or retail associations, and 11 companies or organizations that collect, process, or otherwise manage batteries at end-of-life. PSI updated the 2010 report with additional targeted interviews and updated data. This Briefing Document reflects varying perspectives on the management of batteries and not a unanimous approach.

Scope of Project

This project is focused on consumer-type batteries, including those that are rechargeable (also known as “secondary” batteries) and single-use (also known as “primary” batteries). These battery types are used in a wide range of portable devices, including common household items ranging from calculators and clocks to cameras and flashlights. This project also includes small sealed lead acid (SSLA) rechargeable batteries, but does not address lead acid or electric vehicle batteries, or batteries used in a residential or industrial setting to store power generated from renewable energy installations.

Proposed Issue Statement

The following issues regarding battery stewardship have been identified as reasons for engaging stakeholders. These issues are representative of a range of perspectives. They do not represent a consensus among all stakeholders. Instead, they are indicative of the concerns expressed to PSI staff regarding the management of batteries.

Volume/Wasted Resources and Jobs: Large quantities of batteries are generated and disposed of annually, wasting material resources and energy, as well as recycling jobs.

Toxicity/Hazards: Certain rechargeable batteries may contain toxic materials such as cadmium and lead, or flammable materials such as lithium ion.

DRAFT Battery Stewardship Briefing Document – May 30, 2014 1Product Stewardship Institute, Inc.

Low Recycling Rate: Only an estimated 12-15 percent of rechargeable batteries, and a much smaller percentage of single-use batteries, are being recycled in the U.S. Many batteries are contained in products that are not recycled, and therefore are “hoarded” (stored for a period of time after use and before disposal) or disposed of in the trash.

Recycling Cost/Material Value: Single-use battery recycling costs are much greater than those for rechargeable batteries.

Some Imported Single-use Batteries Contain Mercury: Although federal law prohibits the sale of primary batteries containing added mercury, a small percentage of batteries manufactured overseas (including those shipped in products) contain mercury.

Municipal Government Cost: Governments must pay to collect and manage consumer batteries that Call2Recycle® does not accept (e.g., button cells and alkaline primary batteries), if they are required to collect them or choose to do so. Governments also pay for batteries that are disposed of in the solid waste stream.

Low Consumer Awareness: There is a lack of consumer awareness about the need to recycle certain batteries and/or where to recycle. Most consumers do not know the difference between battery types and want to recycle all batteries. (In some places, there is a low motivation for recycling overall.)

Difficulty in Measuring Program Performance: It is difficult to quantify the number of batteries collected and recycled. Some batteries collected in electronics recycling programs are recycled with the host product and are not reported, and some battery collection programs do not publicly report their collection results.

Difficulty in Removing Some Batteries from Products: Some batteries cannot be easily removed from products by the consumer, and therefore may be difficult to collect, track, and recycle.

Collection Safety: Recent U.S. Department of Transportation safety regulations require that some battery terminals be insulated to ensure safe transport. However, these extra steps make collection and transportation more costly and difficult.

Sorting Cost: It takes considerable time and resources to separate battery chemistries for processing, particularly because the process is almost always manual and many battery chemistries are not readily identifiable.

Processing and Lifecycle Impacts: There is a need for greater certainty regarding processing practices, and some believe that environmentally sound recycling standards should be developed. Even if battery recovery and recycling are high, impacts may occur during other stages in the battery lifecycle.

Lack of Program Harmonization: Local, state, and provincial laws and/or programs contain different provisions for scope of batteries covered, performance metrics, reporting requirements, retailer responsibilities, and other elements.

Accessibility (convenience): Some jurisdictions (e.g., California and New York) mandate that certain locations (e.g., retailers) serve as collection points. However, despite a robust collection network, consumer participation may still be low. A standard may assist in determining how many sites are enough to maximize participation.


Proposed Project Goals

Based on the current issues and context of battery management in the U.S., PSI proposes the following three project goals:Goal 1: Maximize the collection and recycling of

rechargeable and single-use batteries (and thus the environmental benefit) while minimizing cost.

Goal 2: Develop a long-term financing system (e.g., extended producer responsibility) to manage spent batteries in a manner that alleviates the financial burden faced by governments and minimize the overall cost of battery management.

Goal 3: Develop a model battery bill that can be harmonized across different states in the U.S., and perhaps throughout North America.

Proposed Meeting Outcomes

The following proposed meeting outcomes for the June 11-12, 2014 PSI Battery Dialogue Meeting in Hartford, CT are intended to establish joint expectations:1. Develop a greater understanding of stakeholder perspectives and priorities;2. Identify key remaining issues and potential strategies for resolution;3. Agree in concept on elements of a model battery product stewardship bill; 4. Agree on a process for resolving remaining issues and finalizing a model bill; and 5. Agree on a coordinated plan for introducing bills in state legislatures.

II. OVERVIEW OF KEY ISSUES The following issues regarding battery stewardship have been identified as those issues that have posed challenges to moving forward on existing battery stewardship bills in the U.S. and are thus reasons for engaging stakeholders. These issues are representative of a range of perspectives. They do not represent a consensus among all stakeholders. Instead, they are indicative of the concerns expressed by stakeholders.

Primary Battery vs. All Battery Legislation

A bedrock issue for any discussion on battery stewardship is how to maximize the collection of primary and rechargeable batteries. Those businesses operating existing programs want assurance that those systems will not be disrupted by any new or expanded program. There are many key questions that need to be answered, such as whether legislation in a state will be introduced for only primary batteries or for all batteries, and whether there will be one collection network and one stewardship organization or a manufacturer’s ability to meet its legal obligations individually or through a stewardship organization of its choice. Such a consideration might depend on whether a state already has an existing law covering primary or rechargeable batteries. Certainly, consumers do not distinguish between the two types of batteries, so any system(s) created must be convenient and clear to maximize consumer participation.


Reimbursement

If multiple battery collection and recycling systems are set up by battery manufacturers, it becomes a challenge to apportion the cost so that each producer pays for its fair share. Inevitably, batteries paid for by one or more manufacturers will end up in the collection system operated by another set of manufacturers. In this case, a system for cost reimbursement is needed. Additionally, provisions in an EPR bill for independent audits can ensure the accuracy of reimbursement claims.

Stewardship Organization(s)

An EPR bill will typically define whether responsible parties can meet their legal obligations as an individual company or whether they are free to join a representative stewardship organization in complying with the law. Some laws require that all manufacturers join a single stewardship organization, while other laws permit the formation of multiple stewardship organizations. If the law allows for multiple stewardship organizations, there will need to be a reimbursement provision. In addition, multiple stewardship organizations, while creating competition that can potentially lower costs, might also duplicate infrastructure and increase inefficiency and system complexity.

Creating a Level Playing Field

A level playing field is critical to ensuring fairness for companies paying for battery collection and processing. However, while some batteries are sold individually, others are included in products, such as toys, electronics, and medical devices. Making sure that the manufacturers of all batteries contribute their fair share to the collection and processing system requires that all product manufacturers use batteries covered by a collection program. State agency enforcement is an important component of maintaining fair competition, and any legislation should clearly define allowable exemptions (e.g., for some embedded medical batteries).

Inclusion of Battery-Containing Products

Many products, from toys to medical devices, are sold with batteries included. Capturing these batteries for recycling remains a challenge, particularly if they are embedded in the product. Another challenge is to fairly apportion the costs of managing these batteries to the appropriate brand owner. In addition, retailers find it difficult to determine whether products containing batteries are in compliance with the stewardship law (e.g., that the batteries inside the product are made by an obligated battery manufacturer and that they are in compliance with the law).

Compliance Enforcement/Private Right of Action

EPR programs create a level playing field for battery producers. However, this system relies on adequate enforcement against non-compliant producers to ensure that they contribute their fair share to the recycling program. In some instances, however, enforcement by state agencies has been inadequate. For this reason, compliant producers seek the ability to legally recover recycling costs from “free riders” – those manufacturers that benefit from the recycling program but don’t contribute funding. Allowing a “private right of action” in an EPR bill would provide compliant producers with the authority to bring a civil action against a non-participating producer responsible for the costs of battery management, damages, and legal fees. If a reciprocal reimbursement provision is included in the EPR legislation (whereby batteries from one manufacturer are collected by another manufacturer’s system), a private right of action provision would cover this situation as well.


Definition of Responsible Party

The definition of “responsible party” in an EPR law will affect the range of firms and industries included, as well as the scope of products covered. Existing U.S. producer responsibility laws and bills for batteries identify responsible parties differently and define them in various ways (or not at all). Most state legislation requires the “manufacturer,” “marketer,” or “cell manufacturer” to participate. Note that terms such as “brand owner” or “first importer” are more precise in the global marketplace than “manufacturer” or “producer.” Washington’s scrap electronics recycling law exemplifies this type of detail and takes into account manufacturers of products that used to be sold into the state, as well as including specific provisions for retailer-branded products. Current EPR battery bills in the U.S. also specify requirements for brand owners and importers in addition to manufacturers, distributors, retailers, and/or wholesalers. Some batteries are part of a “closed loop recycling system,” and these batteries are excluded from the definition of responsible party. Some legislation considers a product manufacturer to be the responsible party unless they use “compliant batteries” that are part of an authorized collection program.

Opt-Out Provision

Each battery that is exempt from regulation creates a potential unlevel playing field for compliant brand owners. For this reason, there is interest by battery manufacturers to include a narrow opt-out provision, such as for batteries embedded in products implanted in human beings.

Appropriate Level of Government Oversight (Prescriptive vs. Outcome-Based Program Design)

As the collection and recycling of batteries becomes regulated to create a level playing field, the battery industry and government agencies will need to develop the appropriate role for state agency oversight of the stewardship program and the amount of fees that a stewardship organization must pay to reimburse state agencies for that oversight. These entities will need to determine how much oversight of program operations is really needed given that there are federal and state laws for the management of batteries.

Environmental Outcomes

Most stakeholders want a yardstick by which to measure program success and to ensure a competitive market for producers and recyclers. Programs can differ greatly, however, in how much a state agency relies on these metrics, whether they are enforceable, and the degree to which manufacturers have flexibility in designing a program to meet those requirements. Others emphasize that cost must be a key factor, asking “how high” and “at what cost?” Collection targets and recycling efficiency are two basic performance measures that are often included either in legislation or in a manufacturer or stewardship plan submitted to the state agency for review and approval. Collection targets refer to the amount of batteries recovered as a percentage of all batteries available for collection. Recycling efficiency refers to the percentage of those collected batteries actually recycled. Other stakeholders, however, emphasize that environmental outcomes must be broader and include the net environmental benefit from a lifecycle perspective, which assesses the “environmental footprint” of any collection and recycling program.

A related measure is a consumer convenience standard, which specifies the minimum collection infrastructure needed in a given geographic area that is considered “convenient” for consumers to drop off their batteries for proper management. Whether retail locations are required to collect batteries, or if they can do so voluntarily, is another related element for consideration, as


are collection incentives, which are often financial payments to consumers or collection locations to maximize participation in a battery recycling program.

Preemption

A preemption provision in a state EPR bill for batteries would overrule current local government laws relating to battery management. Local governments typically fight such provisions unless a state bill will be strong enough to satisfy even the most aggressive local agency. Preemption can eliminate the regulatory cost and confusion of having multiple local laws. However, if the state law is not strong, preemption will likely reduce opportunities for reaching joint collection and recycling goals.

Anti-trust

With competing producers working together toward a common goal, limited anti-trust protection in any bill is important to manufacturers to allow for appropriate conversations without fear of anti-trust filings. Other stakeholders have expressed concerns, however, that anti-trust provisions can create a monopoly that erodes the competitive marketplace.

III. SUSTAINABLE FINANCINGMost waste management costs in the United States (e.g., collection, reuse, recycling, and disposal) are largely borne by state and local agencies through government programs, and are paid for through rates and taxes. Other ways of funding programs are through solid waste utility rates, direct charges to individual households, or fees charged to consumers when they return a product for recycling or disposal. U.S. rechargeable battery laws are considered “cost internalization” financing systems. This type of producer responsibility financing system involves manufacturers and importers that internalize post-consumer management costs into the cost of doing business so that they are invisible to the consumer, even though the costs may be passed on to the consumer. In the U.S., cost internalization EPR systems have also been implemented for electronics, thermostats, auto switches, and other products. In general, under this system, manufacturers take responsibility for the collection, transportation, and recycling of the products, often by creating an industry-run stewardship organization(s) to contract for services, collect payments from producers, and manage the overall system.

IV. ELEMENTS OF AN EXTENDED PRODUCER RESPONSIBILITY (EPR) BILL FOR BATTERIES

Scope of Products

The scope of products identifies the types of materials affected under the bill. Examples for batteries might include: rechargeable batteries, primary batteries, and products containing batteries. Related questions include whether the scope of products should include specified battery chemistries and whether institutional, commercial, or automotive batteries should be included.

Responsible Party

Producer responsibility laws for batteries can identify and define responsible parties in a number of different ways, and can specify which parties are exempt from the law. Participation may be required for the manufacturer, marketer, brand owner, first importer, or retailer.

Funding Mechanism


The funding mechanism specifies how the program will raise funds for collection and recycling activities and administrative costs. The battery stewardship bill will include the cost internalization model. In addition, this element may include a definition of program-related costs for which producers are responsible and can include collection, transportation, recycling/disposal, promotion, reporting, and other administration.

Incentive Payments

Incentives can be a key component to maximizing battery collections, which fuel investment, material recovery, job growth, and high environmental outcomes. Some EPR laws promote recycling of specific target products by providing cash incentives to collectors and processers, often by weight or volume of target material managed. Incentives can also be offered to consumers to return their products (e.g., deposits, rebates, coupons, etc.). Some EPR laws also include disincentives for manufacturers of products containing targeted materials. This element includes these type of policies. Some states elect to let manufacturers decide whether incentives are necessary to reach the goals set forth in their plans.

Performance Standards

Performance standards encompass the collection rate and recycling efficiency to be reached by the program, or the methodology by which responsible parties must set their own goals in the stewardship plan submitted to the state agency. Performance standards are often numerical targets for annual collection or recycling volumes, weights, or rates.

Convenience Standards

Convenience standards represent the minimum level of service to be provided to ensure that consumers across the entire state have access to qualified collection and recycling services for the target products. Standards can be set in statute, or left to manufacturers to define in their stewardship plans submitted to the state environmental agency. Convenience indicators are often expressed as a number of collection sites or density of collection sites per capita or geographic area, but also might include qualitative measures. A related element is whether retailers should be required to collect batteries or whether their role should be voluntary.

Stewardship Organization

This bill element defines whether responsible parties must join a representative organization in complying with the law, or whether they may create and implement their own individual plans. Legislation allowing flexibility often includes text that holds manufacturers responsible “individually or collectively.” The bill must also set dates by which manufacturers must join stewardship organizations, and indicate whether multiple stewardship organizations are allowed. Having one stewardship organization obviates the need for a reimbursement system, but also eliminates competition.

Outreach and Education Requirements

This element defines the minimum requirements in the statute to ensure that consumers, responsible parties, retailers, and others are educated about the program, as well as any stipulations on how responsible parties must include outreach and education in their plans and annual reports. It also specifies who funds the education and outreach efforts.

Stewardship Plan Contents


This bill element is a key component to responsible parties meeting their legal requirements. It is also a key element in the authority of state agencies to make sure that programs operate effectively. Stewardship plans are considered the program roadmap, and include how the responsible party will ensure consumer convenience, meet the performance goals, provide education and outreach, fund the program, and other key aspects. The section also describes the process and schedule by which plans are approved by the state environmental agency and updated by the responsible party, and may include stakeholder and public comment periods as part of the plan review. Producers want to know that the data requested are truly needed by state officials to manage and enforce the program, since a request for more data adds program cost, as well as agency review time and resources. Harmonizing state agency requirements across multiple state programs will reduce program costs and complexity and increase data sharing and program efficiency.

Audit Requirements

This element describes the program phases when an independent financial audit, or other type of independent audit, will be required. Some producers have advocated for reduced auditing frequency (e.g., every one year vs. three years) if a program meets its performance targets.

Anti-Trust

Language is included in this section to ensure that responsible parties (or stewardship organizations and their members) are immune from liability for any claim of antitrust law or unfair business practice related to the execution of their responsibilities under the law.

Reporting Requirements

This section lays out the minimum information that responsible parties must include in each report, typically submitted annually, to the state environmental agency, often including program performance data, a narrative description of program activities and outcomes, an evaluation of the funding mechanism, an independent audit, education and outreach efforts, and other items. Reports are made public and/or transmitted to the state legislature by the state agency.

Penalties for Violation

This bill element provides a schedule of specific penalty amounts and infractions. Such penalties can be imposed on non-compliant producers and may also be specified for retailers who sell products from non-compliant producers.

Administrative Fees

This section includes the amount of money to be paid to the state agency annually to administer the program; it may include a maximum amount. This element is tied to program reporting in that the more that producers are required to report, the greater the resources an agency will need to review that information, and the higher the administrative fee will be. The balance sought is to ensure that the fee is adequate for the work that all parties agree is needed to monitor program performance and ensure a level playing field.

Implementation Schedule

An implementation schedule includes key milestones, such as when the act takes effect, when manufacturers must join a stewardship organization, when plans are due to the state and the amount of time before a plan must be approved or rejected, and when batteries from non-participating brands may no longer be sold. These schedules are influenced by how many state programs are scheduled to go into effect within a given span of time, and whether the programs are in the same geographic region.


Disposal Ban

Some EPR bills include a disposal ban to increase the flow of the target material to recyclers. Such provisions include the date by when the ban goes into effect.

V. BATTERY INDUSTRY AND PROCESSINGThere is consensus in the U.S. that rechargeable batteries should be diverted from disposal facilities because many contain toxic components. Therefore, many local governments, retailers, and other venues collect rechargeable batteries for recycling. There is a growing interest among state and local government agencies to collect and recycle primary batteries owing to their lifecycle impacts. Local jurisdictions in California, several in Washington, Metro regional government (Oregon), and Hennepin County (Minnesota) represent a few of the relatively small number of local governments that collect single-use batteries. This section provides background information on single-use and rechargeable battery types, sales, market trends, manufacturers, and processors.

Battery Composition

Portable batteries are comprised of two basic types: single-use (primary) and rechargeable (secondary).

Single-use batteries produce an electrical current that is generated by an irreversible chemical reaction. They can be used only once and cannot be recharged. See Table 1 for common uses, materials of concern, and other information related to the various primary battery chemistries.

Rechargeable batteries produce an electric current from a set of reversible chemical reactions so the battery can be recharged and reused multiple times. Although rechargeable batteries were originally used in a larger form for automobile starters and uninterruptible power supplies (UPS), the newer lightweight cells can be used for nearly the same purposes as

primary batteries. See Table 2 for common uses, materials of concern, and other information related to the various rechargeable battery chemistries. Lead acid batteries (“wet cell” lead batteries typically used in vehicles) and small sealed lead acid (“dry cell” lead batteries typically used in UPS or home security systems) batteries are rechargeable batteries. While small sealed lead acid (SSLA) batteries are included in the scope of products for this document,

lead acid batteries fall outside the document scope because there is already a separate, established collection and recycling system in place for them.Table 1: Single-use Primary Battery Chemistries

Battery Chemistry Characteristics and Common Uses Comments2


Alkaline Manganese (AlMn)

Toys, flashlights, remote controls, digital cameras, handheld games, portable music players, etc.

Zinc, manganese, case metals, the electrolyte (KOH), ferromanganese, and steel can be recovered and resold.3

Those made before 1996 may contain mercury.

Zinc-Carbon (ZnC) Least expensive primary batteries; common in low power devices such as remote controls.

Zinc, manganese, and case metals, and the electrolyte can be recovered and resold.4 Zinc mining has significant environmental impacts.5

Lithium Primary (Li) Very long-lasting; used for implantable electronic medical devices, cameras, and calculators.

Lithium is potentially flammable. It can also be recovered and resold, but is the most expensive battery to process.

Table 2: Rechargeable Battery ChemistriesBattery Chemistry Common Uses Comments

Nickel-Cadmium (Ni-Cd) Power tools and toys. Cadmium is toxic to humans and animals.6

99.9 percent pure cadmium is recoverable for reuse in new Ni-Cd batteries.7

The European Union has banned the use of nickel and cadmium in power tools by January 1, 2017 owing to significant environmental impacts.8

Nickel-Metal Hydride (Ni-MH)

High drain devices (e.g., digital cameras and consumer electronics) with high capacity.9

Nickel, iron, and other metals can be recovered and resold.

Production of pure nickel has significant environmental impacts.10

Lithium-Ion (Li-ion) Portable consumer electronics and cameras.

Teflon is used by some companies in manufacturing and is an ozone-depleting substance, as well as a suspected carcinogen.

Cobalt, nickel, iron, and other metals can be recovered and resold.

Small Sealed Lead Acid (SSLA/Pb)

Uninterrupted power supplies, home security systems, and children's riding toys.

Lead can be recovered and resold.

Relative Value of Recoverable Materials

In general, the materials recovered from batteries are sold to a variety of end markets and are not necessarily used to make new batteries. While all battery types are technically “recyclable,” certain materials found in rechargeable batteries, such as nickel or cobalt, can be recovered and sold at a higher price than materials recovered from primary batteries, even though zinc, iron, and steel found in single-use batteries can still be recovered and sold.

Plastic, paper, and carbon comprise anywhere from 10-21 percent of a battery. These materials have low commercial value and are not usually recovered in current processing facilities. A battery also


typically consists of 8-11 percent water, which also cannot be recovered.11 These factors are important to note when considering the amount of material that can be recovered after collection and during processing, referred to as “recycling efficiency.” In addition, the exact composition of a battery varies by brand and will shift as a result of technological developments. For more information on the material composition of different battery chemistries, see Appendix A.

Battery Sales and Manufacturers

Single-use batteries comprise about 80 percent of the market (by weight), while rechargeable batteries account for the remaining 20 percent.12 However, the battery market is changing quickly and rechargeable batteries now comprise a greater portion of overall sales. Since most rechargeable batteries are sold by manufacturers as cells and then bundled into the final product by another company, reliable unit sales data are not available for rechargeable batteries. However, we do know that an estimated 3.5 billion single-use batteries were sold in the U.S.in 2005. Batteries are used in consumer, industrial, and commercial settings. Consumer battery uses include consumer electronics and household appliances. Relatively few “consumer electronics” currently fall under state electronics product stewardship laws, as the initial focus has generally been on computer systems and televisions. Some states and provinces have begun to include consumer electronics in their laws, but these typically have a limited scope and have only impacted battery collection efforts in jurisdictions where the law applies to laptops and cell phones.

The world battery market is dominated by a small number of companies, shown in Table 3. Roughly 90 percent of single-use batteries sold in North America are made by Duracell, Energizer, Rayovac, Panasonic/Sanyo, and Sony, while roughly 90 percent of rechargeable batteries manufactured for the North American market are made by Panasonic/Sanyo, Sony, LG, and Samsung. Many companies make and/or market both single-use and rechargeable batteries, but one type of battery usually dominates their total battery sales, with the exception of Panasonic/Sanyo. For example, although Duracell, Energizer, and Rayovac all sell both types of batteries, more than 90 percent of their company battery sales are derived from single-use batteries. In the U.S., the National Electrical Manufacturers Association (NEMA) represents single-use battery manufacturers. The Portable Rechargeable Battery Association (PRBA) represents the rechargeable battery manufacturers. Some companies are members of both associations.

Table 3: Companies Manufacturing or Branding Single-use and Rechargeable Batteries

Company Single-use RechargeableDuracell X XEnergizer X XRayovac X XPanasonic/Sanyo X XSony X XLG Chem XSamsung XBYD XLishen XNEC XMaxell X XVarta X X

Market Trends


The following trends were identified by those who PSI interviewed for this project:

More consumer batteries are being manufactured to meet rising demand. In the U.S., primary battery sales have been decreasing globally a few percent per year, while demand for non-lead rechargeable batteries is increasing due to increased use in portable electronic devices. In particular, lithium-ion rechargeable batteries are expected to increase significantly because of their use in products such as cell phones and MP3 players.13

Manufacturers are phasing out the use of toxic components. The E.U. Batteries Directive prohibits the sale of batteries containing more than a certain percentage of mercury or cadmium, although there is an exemption for Ni-Cd batteries used in power tools.14 This ban has led to the phase out of Ni-Cd batteries worldwide. In 2006, the U.S. battery industry announced a voluntary phase out of mercury in all button cell batteries by 2014. This action built on a 1996 U.S. federal law that previously placed limits on the amount of added mercury allowed in most types of button cells or other primary batteries.15

Evolving consumer battery chemistries can impact battery recycling. As battery chemistries change to meet emerging technical requirements (e.g., better performance, smaller size, lighter weight), they may incorporate new materials or use more types of materials in a single product. These changes can make batteries more difficult and expensive to process. For example, as lithium single-use batteries replace other single-use battery types, they must be bagged or their terminals taped for transport if they are to be recycled. In addition, it can be difficult to identify these batteries among other single-use batteries.

Technological developments driven by the demand for batteries to power hybrid or electric vehicles and renewable energy installations may impact the consumer battery sector. While batteries used in hybrid and electric vehicles, and in wind and solar power installations, fall outside the scope of this project, current investments in these new technologies could lead to technological innovations in the consumer battery marketplace that would make the batteries longer-lasting, less toxic, and lighter weight. Anticipation of the need to recycle batteries for emerging alternative energy uses could also impact technological innovations in processing infrastructure.

Battery Processing

There are eight main battery processing facilities in the U.S. and Canada that handle consumer batteries, although smaller facilities claim to accept and process lithium ion and other batteries. Each facility recycles a different set of battery chemistries, and no single facility processes all chemistries, not even all rechargeable batteries. Four facilities process single-use batteries.16

The feedstock for the facilities ranges from 100 percent batteries (Battery Solutions in Michigan) to less than 10 percent (Inmetco in Pennsylvania) and less than 5 percent (Teck Ltd in British Columbia, Canada). See Figure 2 and Table 4. Note that two facilities share the same location.

Figure 2: Location of U.S. and Canadian Battery Processors


Table 4: U.S. and Canada Battery Processors

Company Location Main Consumer Batteries Processed

Other Consumer Batteries Processed Batteries as % of Total Feedstock

Retriev Technologies

Trail, British Columbia

Lithium (all) None 100%

Teck Ltd Trail, British Columbia

Alkaline Zinc Carbon, Zinc air button cell, Silver oxide button cell

<5%

Xstrata Sudbury, Ontario Lithium-ion Ni-MH <25%

Battery Solutions

New Brighton, Michigan

Alkaline, Ni-MH, Lithium-ion

Alkaline, Zinc Carbon, Ni-Cd, Lithium Primary, silver oxide and other button cells

100%

Retriev Technologies

Lancaster, Ohio Nickel-Cadmium Ni-MH, SSLA >70%

Raw Materials Co.

Port Colborne, Ontario

Alkaline and Zinc Carbon Lithium-ion, Zinc air button cell, Silver oxide button cell, Ni-MH, Li-Poly

100%

Inmetco Ellwood City, Pennsylvania

Nickel-Cadmium, Ni-MH Alkaline, Zinc Carbon, Lithium Primary <10%

Kinsbursky Brothers

Anaheim, California Alkaline (pending17) Lead-acid Not known


Since no single company can process all battery chemistries, single-use and rechargeable batteries collected in the U.S. must be sorted by battery chemistry and shipped to various facilities for processing. For example, batteries collected through the Call2Recycle® program in the U.S. are first shipped to Inmetco’s Pennsylvania facility. However, other battery types that cannot be processed must be reshipped to other facilities. In Canada, batteries collected through the Call2Recycle® program are first consolidated at the Newalta facility in Fort Erie, Ontario, or at the Toxco facility in Trail, British Columbia, and then transported to Inmetco or, in the case of small-sealed lead acid batteries, to Newalta’s NovaPb facility in Ville Ste-Catherine, Quebec. Any batteries that Inmetco cannot process (e.g., lithium ion) are transported back to Canada to be processed at the Xstrata facility in Sudbury, Ontario, and then refined elsewhere to recover the metals.

Transportation adds operational costs for all types of batteries. Although capacity exists at these processing facilities to handle an increase in single-use and rechargeable battery collection, available technology does not always ensure the highest and best use for the materials recovered. These considerations are critical when battery stewardship is viewed from a lifecycle perspective.

VI. BATTERY MANAGEMENT

Battery Management in United States

Battery Management Act of 1996: U.S. federal law regulates the labeling and handling of Ni-Cd and certain SSLA batteries. In 1996, Congress passed the Mercury-containing and Rechargeable Battery Management Act18 to encourage the recycling of rechargeable batteries by designating them as Universal Waste. The Act removed regulatory barriers to transporting Ni-Cd and SSLA rechargeable batteries for recycling, which facilitated the start of a voluntary, nationwide collection program funded by manufacturers (see discussion of Call2Recycle® program below). The Act also phased out the use of mercury-added batteries by prohibiting the sale of mercuric-oxide button-cells,19 as well as alkaline-manganese and zinc-carbon primary batteries that contain added mercury. Finally, the Act required that Ni-Cd and certain SSLA batteries must be easily removable from products, but permitted the U.S. EPA to add battery chemistries to this requirement.

The Battery Management Act of 1996 followed state laws in Connecticut, Iowa, Maine, Maryland, Minnesota, New Jersey, and Vermont, which sought to reduce the environmental impacts of rechargeable battery disposal with a combination of disposal bans, requirements that batteries be easy to remove from products, and requirements on labeling and collection (including retailer and manufacturer responsibilities). Although they vary from legislation today, these were among the first “producer responsibility” laws in the U.S. Subsequently, New York City (2005), Florida (2008), San Luis Obispo CA (2008), and New York (2010) passed laws mandating retailer or manufacturer operation of collection programs, with the New York State law superseding the law in New York City law. Adding to this momentum, California passed a consumer landfill ban on batteries and other hazardous products in 2006.

Product Stewardship State Laws and Local Ordinances: Ten states and one local jurisdiction in the U.S. regulate consumer batteries within a product stewardship context. Of these, eight states20 and one local government (San Luis Obispo, CA) require manufacturers of consumer rechargeable batteries to develop a collection and recycling program. Vermont is the first state to require a program for primary batteries. Vermont also has a product stewardship law for rechargeable batteries that are used by institutions and medical or communications facilities, but it does not cover batteries used by the general public. Currently, two states (California and New York) and one local jurisdiction (San Luis Obispo County, CA)


also require retailers to collect rechargeable batteries. In addition, San Luis Obispo, CA is currently the only local or state jurisdiction that requires retailers to also collect and recycle single-use batteries; however, the ordinance does not specify a role for manufacturers.

Over the past four years, an all-battery bill that would require manufacturers to collect and recycle rechargeable and single-use batteries was introduced in California (2010) and Vermont (2014). Both the California and Vermont bills were subsequently changed to primary-only bills and reintroduced in subsequent sessions. Vermont’s primary battery bill passed the legislature and was signed into law in May, 2014. A primary-only battery bill has also been introduced in Minnesota (2013). Battery bills for rechargeables only have been introduced in Oregon (2013) and Washington (2013) to minimize free riders and set a level playing field, although these bills did not pass. The Washington bill was active in both 2012 and 2013 while the Oregon bill was only active in 2013. See Table 5 for a summary of stakeholder roles specified in state and local battery laws.

Table 5: Roles and Responsibilities in Extended Producer Responsibility Laws/Ordinances in the U.S.

Stakeholder RoRoles & Responsibilities

Manufacturers Implement and pay for collection and recycling program (CA, FL, IA, ME, MD, MN, NJ, NY, VT)

Provide educational materials to retailers for distribution to consumers (VT) Provide educational materials to public and affix the recycling symbol on the product

label (FL, ME, MD, MN, NJ, NY) Report to state on battery collection performance (FL, MN, NJ, NY, VT)

Retailers Collect rechargeable batteries (CA, NY, San Luis Obispo)21

Provide signage informing customers of recycling law (CA, IA, ME, MD, NY, San Luis Obispo, VT)

State Governments Estimate amount of batteries recovered by surveying battery recycling facilities (CA) Review and approve manufacturers’ plans for stewardship programs and review

reports on program results (MD, NJ, NY, VT) Enforce law and levy penalties for violations (CA, FL, IA, ME, MD)

Local Government Enforce laws and levy penalties for violations (San Luis Obispo)

Institutional Users Segregate batteries by type and return to collection site (FL, ME, MD)

Consumers Comply with disposal bans (Ni-Cd and SSLA: FL, IA, ME, MD, MN, NJ, RI, VT (Hg added only: MA, ME, MN, NH, RI, VT). (All batteries except carbon-zinc: CA)

Note: Although battery processors play a key role in managing batteries at end of life and must comply with state and local laws in the jurisdiction in which they are located, their role is not specified in existing laws.

Rechargeable Battery Recycling Program: Call2Recycle® is the only industry-funded program in North America for recycling rechargeable batteries, and is funded by over 215 manufacturers and marketers of rechargeable batteries (representing over 90 percent of the rechargeable power industry). Call2Recycle has established over 34,000 active retail, municipal and other drop-off sites across the United States and Canada. The Call2Recycle® program was


originally formed to collect Ni-Cd rechargeable batteries, but expanded in 2001 to include other rechargeable chemistries, and again expanded in 2004 to take cell phones. Over the past 17 years, Call2Recycle has increased collections from 1.9 million pounds in 1997 to 11.6 million pounds in 2013. Call2Recycle estimates that 12-15 percent of consumer rechargeable batteries are recycled in the U.S.22

Single-use Battery Recycling Program: There is currently no national industry-funded program for single-use batteries in the U.S., and only a small number of municipalities collect these batteries for recycling. However, the Corporation for Battery Recycling (CBR), whose membership is comprised of Duracell, Energizer, and Panasonic, is working through state legislation to implement programs to maximize the recovery of primary battery materials while minimizing the environmental and financial burden of collection and recycling.

Other Service Providers: There are several other service providers that collect and recycle all types of batteries for a fee, including Heritage Environmental Services, Clean Harbors, Battery Solutions, the Big Green Box, Waste Management, Raw Materials Company Inc., and Veolia. These companies typically provide collection services for a range of customers, including large quantity generators, which are required by federal law to recycle batteries they generate, as well as municipalities, retailers, and the general public.

Household Hazardous Waste Collections: Currently, a large quantity of consumer batteries are collected through local government household hazardous waste collection events. Batteries are only one of a variety of items collected through these programs which vary greatly by location. Many municipal programs partner with Call2Recycle for recycling of rechargeable batteries, and some municipalities receive payments from Call2Recycle for bulk packaging of batteries. Those collecting primary batteries are generally funded by taxpayers.

Electronics Recycling Laws and Programs: There are 24 states with product stewardship laws governing the recycling of electronics. These states are currently collecting, or are poised to collect, large quantities of batteries contained within these products.

U.S. Department of Transportation Regulations: The U.S. Department of Transportation (DOT) regulates the transport of batteries. Some batteries that still contain an electrical charge can pose a flammability hazard when stored loose and in large numbers. The DOT therefore requires all lithium and rechargeable batteries to be either individually contained in a plastic bag or have the battery terminals taped to prevent short-circuiting. Lithium batteries must also be labeled as “Forbidden for transport aboard passenger aircraft.” In the fall of 2009, DOT stepped up its enforcement of these regulations after several fires broke out on trucks transporting batteries. Call2Recycle and other battery producers and recyclers have been actively working with DOT to ensure these regulations do not unnecessarily hamper efforts to collect and recycle spent batteries. These regulations, however, currently do not apply to single-use, non-lithium batteries rated at 9V or less.

Disposal Bans: California is the only state that prohibits the disposal of all batteries except carbon zinc23 in municipal solid waste, as part of its disposal ban on products it designates “universal waste.”24 Eight other states ban the disposal of both Ni-Cd and SSLA batteries (FL, IA, ME, MD, MN, NJ, RI, VT). Connecticut also has a mandatory requirement for nickel-cadmium battery recycling. Mercury-added batteries are banned from disposal in six states under a wider ban on mercury-added products (MA, ME, MN, NH, RI, VT). More than 30 states have banned the disposal of lead acid car batteries. New York City


and Westchester County, NY have banned the disposal of all rechargeable batteries. In addition, most Ni-Cd and SSLA batteries are subject to Resource Conservation and Recovery Act (RCRA) requirements, which vary depending on the state. In many states, this means these batteries would be banned from disposal (except from households).

Battery Management in Canada

British Columbia, Quebec, Manitoba, and Ontario are currently the only four provinces that require manufacturers to collect batteries, although Ontario only requires collection of primary batteries. The British Columbia and Ontario programs started in July 2010. Ontario started collecting single-use batteries on July 1, 2008, and added rechargeable batteries on July 1, 2010, although it suspended its rechargeable program in November of that year due to public outcry over “eco-fees.” Ontario has increased its primary battery recycling from less than 5 percent to close to 20 percent in three years under its battery incentive program.25 Five other Canadian provinces have product stewardship programs for electronic waste that require the collection of products containing rechargeable batteries. The Canadian Council of Ministers of the Environment has identified electronics and batteries as products to be prioritized for new producer responsibility programs in provinces where such programs do not currently exist.26 Battery stewardship programs in Canada typically require the producers (known as “stewards”) to establish and pay for a collection and recycling system, and submit a plan to the supervising authority. British Columbia requires stewards to hold public consultations, and Manitoba proposes to require this as well. Call2Recycle estimates that its program recycles 6.1 percent of rechargeable batteries in British Columbia and 8.5 percent of rechargeable batteries in Manitoba.

Battery Management in Europe

The European Union regulates end-of-life battery management through a series of directives, the most recent of which is the Directive on Batteries and Accumulators and Spent Batteries and Accumulators (“Batteries Directive”) enacted on September 6, 2006.27 This Directive requires that manufacturers implement collection programs for all batteries, and delineate three types: portable, automotive, and industrial. The Directive also requires that:

All batteries must be labeled with a crossed out trash bin (those containing a certain amount of heavy metals must also include the appropriate chemical symbols: Hg, Cd, Pb).

All collected batteries must be recycled (with some limited exceptions).28

The Directive also requires that manufacturers of portable batteries provide consumers with “an accessible collection point in their vicinity” where batteries can be returned without a fee. Manufacturers or importers must assume financial responsibility for the collection and recycling programs, and must provide public outreach and educational materials. (Member countries must help to disseminate this information).

Collection rates in Europe vary considerably from country to country. Switzerland and Belgium have the highest collection rates for used batteries (63 percent and 52 percent respectively); however, a number of countries (particularly in Eastern and Southern Europe) are currently collecting less than 10 percent.29 This discrepancy is due in part to program age, level of collection infrastructure, culture, and population density. The Belgium program has been in existence since 1995 and currently has over 20,000 collection sites across the country in retail stores, schools, and other public and private institutions.30 Switzerland’s


program is only a year younger but has the highest collection site density in 2008 with 22 sites per 10,000 residents, which is more than 14 times the number of collection sites per capita in Hungary which was collecting 3 percent in 2008.31

VII. POTENTIAL STRATEGIES RELATED TO PROJECT GOALSThis section presents potential strategies related to the four project goals listed in Section I. The potential strategies described below were raised during PSI’s multi-stakeholder interviews or during PSI’s stakeholder meeting at the 2010 National Product Stewardship Forum. These are not the recommendations of PSI, and there is not consensus on the strategies.

Goal 1: Maximize the Collection and Recycling of Batteries

Strategies to increase the collection and recycling of batteries can be considered in four areas: (1) improve collection infrastructure, (2) increase consumer awareness of the importance of recycling batteries and how to recycle; (3) motivate consumers to recycle; and (4) reduce regulatory barriers. In general, high rates of recycling require that a convenient collection infrastructure be in place (whether collection sites, curbside pick-up, or mail-back), that targeted participants know how to recycle, and that they are motivated to recycle. The easier it is to recycle, the more recycling will take place.

Improve Collection Infrastructure

The following strategies can potentially improve the collection infrastructure.

Strategy #1: Increase consumer convenience. Consumer convenience includes the number of collection sites per population size, as well as the effectiveness of existing sites. Currently, 89 percent of the U.S. population has access to a Call2Recycle public collection site (retail or municipality) within 10 miles of their home.32 These include municipal sites, retailers, businesses, and public agencies (e.g., hospitals, fire and police departments). The following options could help to achieve this strategy:

Encourage or require retailers to collect rechargeable batteries. Retailers are already required to collect rechargeable batteries in California, San Luis Obispo County, and New York State. Options could also be explored to engage retailers, such as grocery stores, which are conveniently located and already collect other products. (This is being done on Prince Edward Island.)

Increase the number of municipal sites collecting batteries. Since the Call2Recycle program is free and easy to use, municipal sites that are conveniently located and accessible to the public can expand the collection infrastructure. These locations could include town/city halls, libraries, schools, post offices, and household hazardous waste sites. Several of the most effective European programs rely on a mix of municipal and retail collection locations. This strategy could also help increase collections in rural areas where there are relatively few retailers.

Improve effectiveness of existing sites. Collection sites need to function effectively: staff must understand the program, promote it to customers, and know transportation regulations on how to package and send a full box to be recycled. Program operation can be challenging in a retail environment where employee turnover tends to be high. When seasonal employees are only working for a few months at a time, information about in-store recycling programs may not be fully communicated. Improving site effectiveness could be enhanced through “How To” fact sheets for store DRAFT Battery Stewardship Briefing Document – May 30, 2014 18Product Stewardship Institute, Inc.

owners/managers and employees, training, and other information. Additionally, when the recycling program is supported at the corporate level, individual stores tend to have a higher adoption rate. For example, The Home Depot developed its own battery recycling video that has been included in every new store employee orientation.

Evaluate feasibility of curbside collection. Those with curbside recycling services for basic recyclables might find collecting batteries at curbside most convenient. Research is needed to determine the effectiveness of any such programs currently operating, and whether pilot programs or other analysis might be needed to explore this collection method.

Collect products in mail-back program. The individual mail-back of products provides great convenience for the consumer, but also at the greatest cost, and complex transportation regulations may prevent this from being practical. Some participants suggested that collection program managers work with the U.S. Postal Service to develop a mail-back program, particularly for rural residents who would need to drive long distances to return their batteries, although postal regulations may prohibit some battery types.

Strategy #2. Increase collection of products containing rechargeable batteries.

A significant portion of batteries are in, or with, a product when they are sold to the consumer. For these batteries to be recycled, the consumer must either remove the battery and recycle it, or recycle the entire product. However, most consumers are not aware of the need to recycle, do not know how to remove batteries, do not know where to recycle, or do not have convenient recycling options available. If a consumer decides to recycle the entire product through an electronics program, it becomes difficult to track the end-of-life of the battery. To eliminate the consumer’s need to separate the battery from the product, Call2Recycle expanded its program to collect cell phones as a strategy to recover more rechargeable batteries. Some states require retailers to collect cell phones if they sell them; other retailers collect voluntarily. However, batteries are found in many other kinds of products besides cell phones.

Option to consider: develop a model provision to insert in state electronics recycling legislation that expands the scope of products collected.

Strategy #3. Conduct research to determine which collection-based requirements are most effective. For example, we could study the impact of state or local retail collection requirements on program performance.

Increase Consumer Awareness of the Importance of Recycling Batteries and How to Recycle

Consumer hoarding of batteries indicates that most people believe that batteries should be handled differently from other household waste. Although most people are aware of the potential impacts of battery disposal, they are unaware of how or where to recycle them.

Strategy #1: Encourage or require battery manufacturers and retailers to include information about existing recycling programs on or in the packaging. The European countries with the highest collection rates also were the ones in which the producers spent the most money on advertising per battery collected to promote recycling.33 Manufacturers and retailers in the U.S. tested various consumer outreach strategies. For example, Sony included battery recycling bags inside its packaging for laptop computers. Sanyo has included Call2Recycle’s logo in its advertising for back-to-school supplies. Some U.S. laws require retailers to educate consumers about battery recycling. For example, San Luis Obispo CA requires retailers to post signage within five feet of the store entrance. The size of battery packaging DRAFT Battery Stewardship Briefing Document – May 30, 2014 19Product Stewardship Institute, Inc.

and competing marking (such as warning copy and safety regulations) make labeling batteries challenging.

Strategy #2: Simplify consumer education by offering comprehensive battery collection. Some participants feel that you could raise consumer awareness and participation by eliminating the confusion between single-use and rechargeable batteries by collecting all batteries. One of the reasons that the Commission of European Communities gives for requiring the collection of all batteries under the E.U. Batteries Directive is to simplify the message to consumers. This strategy is akin to the common U.S. practice of collecting all plastic containers in curbside recycling programs in order to increase the collection of the most valuable containers. The Call2Recycle program was expanded to include other rechargeable chemistries to eliminate consumer confusion and to ultimately increase Ni-Cd collections.

Strategy #3. Conduct research or pilot projects to determine which consumer awareness strategies are most effective. One option is to develop a pilot project, with full stakeholder input, to test various strategies to increase consumer participation in a program.

Provide Consumer Recycling Incentives

Consumer incentives can fall into several categories: coupons or discounts, deposit/return programs, or bounties. The following strategies could be considered, or additional research conducted, to estimate program costs, impact on battery recycling, and viability (including manufacturers’ willingness to implement):

Strategy #1: Coupons. Retailers and manufacturers typically offer coupons or other discounts to entice consumers to purchase a targeted product. This strategy has been applied to the purchase of rechargeable batteries in exchange for a customer bringing in rechargeable batteries to recycle. In Victoria, Texas, Lowe’s provided a 25 percent discount off the price of new rechargeable batteries to those who brought in old rechargeable batteries during a four-hour event. DeWALT power tools provided $10 discounts on new rechargeable batteries purchased at 87 service center locations during its “National Power Tool Battery Recycling Month.”

Strategy #2: Deposit/Return. Some participants suggested a deposit/return system for batteries (although others oppose it since it increases cost). Beverage container legislation and auto battery deposits (also called “core charges”) have been successful at increasing recycling rates, although the deposit incentive and the program administration are added costs, and there is sensitivity to this being seen as a tax. Eleven states have beverage container laws, which are known to more than double the rate of recycling for targeted products as compared to similar containers not covered in the legislation. About 11 states have auto battery deposit laws, although many retailers in states without laws charge consumers an additional $5-10 per auto battery if a new one is not returned at the time of purchase or within 30 days of the sale. This system ensures that manufacturers maintain a certain supply of lead feedstock, which reduces the uncertainty of purchasing lead from other sources.

Strategy #3: Bounty. Bounty programs provide a cash incentive to a consumer upon the return of the target product. Two states (ME and VT) require thermostat manufacturers to pay a $5 bounty to heating and cooling contractors and homeowners for each mercury thermostat returned. These two states have the highest per capita thermostat collection rates in the country. Twelve states require auto manufacturers to pay a bounty of between $2 and $5 for each mercury auto switch returned for


recycling. Such a bounty program could be established for batteries, although some stakeholders oppose bounties because they increase program cost and/or are perceived as a tax.

Reduce Regulatory Barriers

Strategy #1: Enhance the understanding of U.S. DOT regulations and method for managing compliance. As discussed in Section II, DOT regulations require that the terminals on certain types of batteries be taped, or batteries be bagged, to ensure the safety of battery transportation. This extra step, however, may be a barrier to the participation of some collection locations and consumers. One potential strategy to decrease compliance cost and increase recycling convenience is to streamline the DOT process while still protecting the safety of those handling large quantities of collected batteries. Another strategy is to provide greater education for consumers and retail staff about the need to tape the terminals of some batteries.

Enforce Battery Laws

Strategy #1: Ensure strong enforcement of existing and future battery laws. Some participants believe that state laws should include sufficient penalties to ensure compliance with the law. In addition, whenever feasible, municipalities should be given authority to enforce the provisions of the state law, which will provide added enforcement capability. The Right of Private Action for manufacturers is also a method to assist enforcement when governments are unwilling or unable to enforce laws.

Goal 2: Harmonize Certain Elements of Battery Stewardship Laws and Recommend Critical Elements Required for Success.

Battery stewardship laws have been enacted in the U.S., Canada, and Europe since the early 1990s. Although nearly the same producers are responsible for meeting the requirements of each of these laws, many stipulations differ, often adding to compliance cost and complexity. This section explores whether, and to what extent, certain elements of existing laws in the U.S., Canada, and Europe can be harmonized, and whether a program or legislative model (or menu of options) could streamline company operations and government oversight. Each law is based on the concept of producer responsibility, in which battery manufacturers are responsible for the collection, transportation, and processing of the batteries specified in the law. This section provides a detailed comparison of the following key elements of consumer battery stewardship laws in six U.S. states, two U.S. local jurisdictions, four Canadian provinces, and the European Union:

Product Scope Definition of Responsible Party Performance Metrics (e.g., measuring program effectiveness) Reporting Requirements Disposal Bans Enforcement

Product Scope

United States: Most U.S. laws requiring battery recycling were primarily designed to divert toxic substances such as mercury, cadmium, and lead from the municipal waste stream, and apply only to the batteries containing these materials. However, the types of batteries covered by these laws vary. The state laws that regulate single-use batteries are limited to dry cell mercuric oxide button cell batteries,


which have now been phased out.34 San Luis Obispo County, CA includes “alkaline” batteries in its retailer collection requirement and, if successful, legislation proposed in California in 2010 would have made it the first state to include single-use batteries in a mandated producer responsibility system in this country. In general, U.S. laws refer to battery type, but exclude batteries designed for certain uses such as vehicles, digital memory back-up, or storage of alternative power sources. Florida, Iowa, Maryland, and New York also limit the product scope to include only batteries weighing less than 25 pounds. Minnesota alone includes “products powered by rechargeable batteries” as well as rechargeable batteries. See Table 6 for a summary of the products covered by each law or ordinance.

Canada: Ontario and British Columbia both require manufacturers (and retailers considered stewards) to arrange and pay for the collection of all battery chemistries, including single-use batteries. Both provinces define the scope of products covered in their laws as those batteries weighing less than 11 pounds (5 kg). Manitoba and Quebec have proposed, respectively, that “all consumer batteries” and “all rechargeable and single-use batteries except those used for industrial or automotive purposes” be covered by producer responsibility systems. They do not apply a weight limit to the scope of products covered, but do propose to include both single-use and rechargeable batteries similar to Ontario and British Columbia. See Table 7 for a summary of the product scopes for each law.

Europe: The E.U. Batteries Directive requires producer responsibility systems for all batteries. Most rechargeable and single-use batteries fall under the category of “portable batteries,” which are those that are sealed, can be hand-carried, and are not used for industrial or automotive purposes. 35

Options to consider: The following two options represent a basic menu of approaches for any battery stewardship program. While some programs will choose to collect all consumer batteries, others might limit collection to consumer rechargeable batteries. By using such broad categories, battery chemistries developed in the future can automatically be covered.

Include “all consumer rechargeable batteries,” defined as “Rechargeable batteries under 11 pounds, excluding a battery used as a power source for starting a motor vehicle, storage of electricity generated by an alternative power source, or memory backup integral to an electronic device.”

Include “all consumer batteries,” defined as “Rechargeable and single-use batteries used in electrical, electronic products, and cell phones weighing less than 11 pounds/5kilograms.”

Include “all consumer rechargeable batteries, as well as consumer products containing rechargeable batteries.” (A definition would need to be developed.)


Table 6: Scope of Products Covered by U.S. Consumer Battery Extended Producer Responsibility Laws/Ordinances

State Rechargeable Batteries Single-use BatteriesCalifornia(2006)

Sm All, nonvehicular, rechargeable Ni-Cd, Ni-MH, Li-Ion, or SSLA, or a battery pack containing these types.

Florida(2008)

Small, nonvehicular, rechargeable Ni-Cd or SSLA battery, or battery pack containing such a battery, weighing less than 25 lbs and not used for memory backup.

Consumer button cell battery

Iowa(1996)

Rechargeable dry cell batteries containing Ni-Cd and SSLA used in nonvehicular rechargeable products weighing less than 25 lbs

Button cell batteries containing mercuric oxide

Maine(1995)

Ni-Cd or SSLA “designed for reuse and is capable of being recharged after repeated use.”

Consumer mercuric oxide button cell

Maryland(1994)

Rechargeable batteries under 25 lbs excluding: a battery used as a power source for starting a motor vehicle.

Mercuric oxide batteries

Minnesota(1994/2008)

Ni-Cd, SSLA, or any other rechargeable battery

New Jersey(1991)

Ni-Cd or sealed lead rechargeable batteries Mercuric oxide batteries

New York (2010)

Ni-Cd, sealed lead, Li-Ion, Ni-MH, or any other rechargeable dry cell battery weighing less than 25 lbs, or battery packs containing such. Excluding: batteries for vehicles, storage of electricity generated by an alternative power sources, or for memory backup integral to an electronic device.

Vermont(2014)

Alkaline, carbon-zinc, and lithium metal batteries

Table 7: Scope of Products Covered by Consumer Battery Product Stewardship Laws in Canada

Province Product Scope

Ontario (2010)36

Primary and secondary batteries weighing less than 11 lbs/5kg Industrial stationary (all chemistries) and non-lead acid motive

British Columbia37

(2010)

Primary and secondary batteries used in electrical, electronic products and cell phones weighing less than 11lbs/5kg

Manitoba38

(2011) All consumer batteries weighing less than 11 lbs/5kg

Quebec39

(2012) All primary and secondary batteries except those for vehicles or industrial purposes


http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/449_2004


http://www.call2recycle.ca/doc_lib/mhsw_plan_jul30_09_vol2_batteries.pdf

http://productstewardship.us/associations/6596/files/S03593%20Text.pdf

http://www.productstewardship.us/associations/6596/files/New%20Jersey%20Batteries%2013-1E-99.66%20%203-24-09.pdf

http://www.productstewardship.us/associations/6596/files/Maryland%20Batteries%20Title%206%204-28-09.pdf

http://www.productstewardship.us/associations/6596/files/Maine%20Batteries%20Title%2038%203-20-09.pdf

http://productstewardship.us/associations/6596/files/Iowa%20Batteries%20455D.pdf

http://www.productstewardship.us/associations/6596/files/Florida%20Batteries%20403.7192%203-20-09.pdf

http://www.prba.org/File.aspx?Path=%5CPublic%5CCalfornia%20Assembly%20Bill%201125%20-%20Rechargeable%20Battery%20Recycling%20Act.pdf

Definition of the Responsible Party

United States: Current U.S. producer responsibility laws for batteries define responsible parties differently (see Appendix B). Most states require the “manufacturer,” “marketer,” or “cell manufacturer” to participate, and define these groups differently (or not at all). Florida’s 2008 legislation has the most complete definition, although it refers to “cell manufacturer” and “marketer”:

"Cell manufacturer" means a person who “(1) Manufactures cells in the United States; or (2) Imports into the United States cells or units for which no unit management program has been put into effect by the actual manufacturer of the cell or unit.”

"Marketer" means any person who “manufactures, sells, distributes, assembles, or affixes a brand name or private label or licenses the use of a brand name on a unit or rechargeable product. Marketer does not include a person engaged in the retail sale of a unit or rechargeable product.”

More recent product stewardship legislation in the U.S. for thermostats and electronics uses terms such “brand owner,” or “first importer,” which are more precise in this global marketplace than “manufacturer” or “producer.” Washington’s electronics waste law exemplifies this type of detail (see below). This law also takes into account manufacturers of products that used to be sold into the state and includes specific provisions for retailer-branded products.

Canada: Canadian provinces typically define producers as including brand owners, first importers, and producers or franchisors, although Ontario and Manitoba use the term “steward” to refer to all of these categories collectively (see Appendix C). British Columbia uses the following definition of “producer” for its battery stewardship program:

“A person who manufactures the product and sells, offers for sale, or distributes the product in British Columbia under the manufacturer's own brand, or

A person who is not the manufacturer of the product but is the owner or licensee of a trademark under which a product is sold or distributed in British Columbia, whether or not the trademark is registered, or

A person who imports the product into British Columbia for sale, distribution, or use in a commercial enterprise.”

Europe: The EU Batteries Directive defines producer as “the person in a Member State who supplies or makes available to a third party batteries…within the territory of that Member State for the first time on a professional basis.”

Options to consider: The laws in Florida and Canada provide helpful models for the collection of batteries, but another approach (particularly useful if products containing batteries are to be recycled as well) would be to use the definition found in Washington’s electronics law, excerpted in the box below, as this represents a trend in the United States.

Performance Metrics

Despite inherent challenges, it is important for policy makers and program operators to know how battery collection and recycling programs are performing, including the overall environmental benefits gained, program cost, and how program changes (such as increasing the number of collection sites, or a new promotional campaign) impact


From Washington’s electronic waste product stewardship law: "Manufacturer" means any person, in business or no longer in business but having a successor in interest,

who, irrespective of the selling technique used, including by means of distance or remote sale:(a) Manufactures or has manufactured a covered electronic product under its own brand names for sale

in or into this state;(b) Assembles or has assembled a covered electronic product that uses parts manufactured by others

for sale in or into this state under the assembler's brand names;(c) Resells or has resold in or into this state under its own brand names a covered electronic product

produced by other suppliers, including retail establishments that sell covered electronic products under their own brand names;

(d) Manufactures or manufactured a cobranded product for sale in or into this state that carries the name of both the manufacturer and a retailer;

(e) Imports or has imported a covered electronic product into the United States that is sold in or into this state. However, if the imported covered electronic product is manufactured by any person with a presence in the United States meeting the criteria of manufacturer under (a) through (d) of this subsection, that person is the manufacturer. For purposes of this subsection, "presence" means any person that performs activities conducted under the standards established for interstate commerce under the commerce clause of the United States Constitution; or

(f) Sells at retail a covered electronic product acquired from an importer that is the manufacturer as described in (e) of this subsection, and elects to register in lieu of the importer as the manufacturer for those products.

program performance. Table 8 (below) summarizes the options for measuring the performance of battery collection and recycling programs. Accounting for batteries that are embedded in products is difficult. This complicates both the absolute collection and collection rate metrics. It is also difficult to know whether a battery came from a commercial or residential user. Therefore, it is difficult to measure a collection rate for “all consumer rechargeable batteries.” For more information on measuring the performance of battery recycling programs, see PSI’s 2009 report, “Battery Performance Metrics: Recommendations for Best Practice” which was commissioned by Call2Recycle.

United States: Minnesota has the only law that includes a specific performance target, though it is defined as a requirement that the manufacturers implement programs “that may reasonably expected to collect 90 percent of waste rechargeable batteries.” None of the U.S. battery stewardship laws for consumer batteries includes performance targets. New Jersey’s 1991 statute specified that performance measurement would be established through rulemaking, although PSI was not able to determine whether this had ever taken place.


http://www.productstewardship.us/displaycommon.cfm?an=1&subarticlenbr=610


Table 8: General Options for Measuring Program Performance Description

Absolute collection40 Measures total amount collected annually against a baseline year (either by number or by weight, although it is typically the weight of batteries collected that is measured).

Convenience Measure convenience of recycling by number of collection sites, distance from point of sale, or density of collection sites per capita.

Collection rate41 Measures the total amount collected against the amount available for collection or amount placed on the market (for a specific year or average over several years). Using the amount available for collection requires estimates of product lifespan and hoarding.

Recovery rate or recycling efficiency

Measures the portion of material recycled out of the total amount collected.

Recycling rate Measures the amount of material available for recycling that is recycled (collection rate multiplied by recovery rate).

Collection compared to amount disposed

Compare amount of batteries collected and recycled to the amount of batteries ending up in the waste stream (using waste sorts).

Per capita collection Divide total amount available for collection by the population.

Canada: Ontario, British Columbia, and Quebec use a combination of collection rates, recycling rates, and accessibility (or convenience) targets. All three provinces set targets to be achieved within the two to three years of program operation, then establish a “maximum” target ranging from 40 - 65%. Ontario calculates the total quantity available for collection based on national data (including assumptions about product lifespan and hoarding specific to each battery chemistry).42 British Columbia calculates a collection rate based on industry sales into the province. Manitoba has not yet established its performance measurement approach. The performance metrics and goals and reporting requirements in Canada are shown in Table 9.

Table 9: Performance Measurement Approaches Used in Canadian Battery Stewardship Laws Province Performance Measurement British Columbia43

(2010) Collection rate (20% in yr 1 increasing to 40% by yr 6) Recycling rate (71%)[iv][iv]

Ontario (2010)44

Accessibility targets Collection targets (which consider lifespan and hoarding assumptions) of 25% by

2012 and 45% by 2016 Recycling performance targets by chemistry

Quebec45

(2012) Collection targets 25% (after 3 years) increasing by 5% annually until 65% Total available for collection is calculated using sales data from previous five

years Includes penalties for not attaining collection rates

Europe: The E.U. Batteries Directive sets two types of targets for implementation:46

Collection rate: 25 percent of portable batteries must be collected by September 2012; 45 percent of portable batteries must be collected by September 2016. The E.U. measures the weight of batteries collected against the average annual weight placed on the market over the previous three years minus exports.

Recycling efficiency: By September 2011, 75 percent of the materials from collected Ni-Cd batteries must be recycled, 65 percent of the materials in lead-acid batteries, and 50 percent of materials in other batteries. The recyclability of a waste should be optimized by the best available technology with considerations to reasonable economics and environmentally sound management practices.




Options to consider: See Table 10.

Table 10: Options for Measuring Program PerformancePerformance Category Key Indicators

Collection Results Collection rate Absolute collection relative to baseline Absolute collection per capita

Program Convenience Number of active collection sites relative to population, hours of operation, cost (if any) to participate

Proximity of target population to collection drop-off Public awareness of collection programs

Post-collection management Recovery rate Recycling rate

Sustainability Life cycle economic, environmental, and social costs and benefits

Reporting Requirements

United States: While many product stewardship laws today require manufacturers to submit detailed plans and reports, most of the consumer battery stewardship laws in the U.S. do not include these requirements. Minnesota requires the manufacturers to submit bi-annual reports to the Legislature estimating the amount of rechargeable batteries (and products containing rechargeable batteries) sold and collected in the state for the previous two years. Call2Recycle submits annual reports on collections to various states on behalf of the manufacturers. Florida requires manufacturers to submit information to the state about its collection program, but does not give specific criteria for what this information should contain. New York’s law requires manufacturers to submit a plan describing the means of collecting, transporting, and recycling rechargeable batteries, and to report annually on the quantity of batteries returned. New Jersey requires an annual report that includes strategies for collection, transport, processing, and consumer education.

Canada: In Canada, there are specific reporting requirements for the producers, or stewards. The reporting requirements proposed in Quebec are the most extensive, including research and development efforts to improve the reclamation of materials, costs by product type, and the quantities of toxic materials within products collected. These are described in Table 11, and include details on collection, managing the product, performance metrics, and financial information. Canadian laws highlight the need to optimize the recovery of usable materials from batteries collected.

Europe: Member states must monitor collection rates annually and report these to the E.U.


Table 11: Reporting Requirements for Canadian Battery Stewardship Programs Province Reporting Requirements British Columbia47 Annual report on: (a) description of educational strategies (b) location of collection

facilities (c) efforts taken to reduce environmental impacts throughout the life cycle and to increase reusability or recyclability at the end of life; (d) description of how recovered product was managed in accordance with the pollution prevention hierarchy; (e) total amount of product sold and collected and, if applicable, the recovery rate; (f) independently audited financial statements (g) comparison of the plan's performance with the performance requirements and targets in regulation. Report must be available to the public.

Ontario48 Annual report on: (a) audited financial statements; (b) description of consultations with stakeholders; (c) program performance. Report must be available to the public.

Manitoba49

Annual report on: (a) deviation from submitted plan; (b) educational materials and

strategies; (c) collection facilities; (d) reducing environmental impacts through reduction in the disposal of waste material and the life-cycle); (e) consistency with the “4Rs” hierarchy; (f) recovery rate; (g) independently audited financial statements. Report must be available to the public.

Quebec50

Annual report on: (a) age of recovered products; (b) quantity of products, components

that cannot be removed from products, and mercury recovered; (c) quantity and nature of materials recovered; (d) assessment of performance; (e) quantities of toxic materials w/in products; (f) final destination of collected materials; education efforts; (g) R&D for recovery and reclamation of recovered products and materials and development of markets for them; (h) program costs; (i) recovery, reuse, recycling, and (j) associated costs broken down into each type of product; and (k) information on independent auditing.

Options to consider: Planning and reporting requirements are essential components of product stewardship legislation. One option for a planning and reporting structure is described below.

Plan submitted by manufacturers to administrative agency: Plan could include a list of participating producers, how producers will promote the hierarchy of waste management, performance goals and metrics (including collection rate), collection infrastructure, and post-collection management.

Report submitted by manufacturers to administrative agency: Report could include progress made toward attaining goals (including collection rate and recycling rate), deviation if any from plan and corrective action proposed, education/outreach efforts, consumer collections vs. other collections (depending on the scope of products covered), and accounting of finances.

Administrative agency report to legislative body: Report could include the status of the program, including proposed changes to legislation.

Enforcement

A critical role of regulatory agencies is to enforce against non-compliant manufacturers or retailers. Depending on the law, manufacturer or retailer violations may include failure to: (1) set up a collection and recycling program, (2) ensure that the collection program meets specific criteria (ranging from the distribution of collection sites to complying with processing standards), (3) ensure that other performance criteria are met (such as collecting a certain quantity of batteries), (4) conduct education and outreach, or (5) submit plans or reports as may be required in law.



Options to consider: Manufacturers out of compliance are not allowed to sell batteries within the jurisdiction. Device importers that sell batteries with their equipment must use compliant battery brands. Retailers are not allowed to sell batteries of a non-compliant manufacturer. The enforcing agency is given authority to levy a civil penalty or fine, either per violation or per

battery sold in violation of the law. If the enforcing agency is at the state or federal level, local municipalities should be given authority to enforce within their jurisdictions.

Processing Standards

Call2Recycle is recognized as an e-Steward by the Basel Action Network, which certifies electronics processors. A second standard that certifies electronics processors is called the Responsible Recycling (R2) Standard. However, there are currently no specific processing standards included in current battery stewardship laws. In Europe, the Batteries Directive requires that the “best available techniques, in terms of the protection of health and environment,” be used to process the batteries.

Options to consider include inserting a processing standard, taking into account recycling efficiency as well as lifecycle impact, as a requirement in battery stewardship laws, and harmonizing it across North America and Europe. The standard could include environmentally sound management practices, detailed facility environmental management systems, and carbon footprint analysis.

Goal 3: Develop a Greater Understanding of the Lifecycle Impacts of Batteries on the Environment.

This section provides a general overview of the impacts associated with different phases of the battery lifecycle. Companies and policy makers are increasingly evaluating environmental impacts across the full product lifecycle to identify opportunities to minimize impacts from materials acquisition through end-of-life management. The U.S. Environmental Protection Agency’s Sustainable Materials Management policy redirects the agency’s focus to take greater account of upstream and downstream effects and move toward a life-cycle materials management policy. 51

Lifecycle assessments (LCAs) can provide valuable information about the inputs and outputs of materials and energy use associated with various parts of the product lifecycle. These studies, however, are time consuming and costly and rely on numerous assumptions on everything from the source of virgin materials to how a battery is transported to a retail location. While a number of LCAs have focused solely on rechargeable batteries, five LCAs have been conducted recently to better understand issues related to recycling single-use batteries in the context of recycling rechargeable batteries. Of these, two are proprietary and were completed by battery manufacturers and three are public studies conducted by federal governments in the United Kingdom and France or by U.S. battery manufacturers. Each study has attempted to identify specific changes that can reduce the lifecycle environmental impact of batteries.

Phases of Battery Lifecycle

The following section provides an overview of the environmental impacts associated with the five basic phases of the battery lifecycle (see Figure 4): resource acquisition, manufacturing, distribution, use, and end-of-life management. Among other things, lifecycle analysis can help compare total environmental impacts from the recovery of recyclable materials in batteries to the impacts from mining virgin ores. It can account for carbon offsets from recovered battery materials, as well as greenhouse gas impacts from landfilling batteries.


The acquisition of raw materials for battery manufacturing causes significant environmental impact. This stage includes the mining, transportation, and processing of raw materials (such as zinc, manganese, and nickel) prior to the manufacturing phase. Producing high-grade metals from ore requires significant physical and chemical processing.52 The byproducts from these processes, including tailings, can release heavy metals into the environment. The impacts of extraction can be reduced by using fewer virgin materials (e.g., using recycled rather than virgin nickel requires 75 percent less primary energy53) and increasing the lifespan of batteries (thereby using fewer batteries to meet the demand for power storage). Materials can also be sourced from mines using best practices to protect the environment and human health.

Changes to manufacturing processes are particularly important because this stage is thought to have the biggest impact on greenhouse gas emissions. Many products can be designed and manufactured in a way that minimizes the amount of material inputs required. Reducing manufacturing materials results in less energy used procuring, transporting, and manufacturing products. The less fossil fuel required to power the process, the lower the carbon dioxide emissions.54 One LCA on Ni-Cd batteries demonstrated that the energy consumption and environmental

impact of manufacturing dwarfed other stages; using 65 percent of all primary energy required over the lifetime of a battery.55

Using the most appropriate battery for a particular device’s specifications can reduce the overall environmental impact by extending the lifespan of the battery and reducing the need for new batteries.

End-of-life management of batteries today may include direct disposal in the trash, collection followed by disposal, or collection followed by recycling. Several studies found that, in locations where municipal solid waste is incinerated, battery disposal typically poses a greater environmental concern than landfilling because metals are released into the air, and secondly, metals accumulate in ash that then must be sent to the landfill.56 Recycling efficiency, or other types of processing standards, can help to maximize the environmental gains of battery recycling and minimize any unintended environmental impacts caused by collecting and recycling batteries. New recycling technologies for certain battery chemistries can recover higher-grade materials that can be used to produce new batteries (rather than yielding scrap metal) and thus may have a much greater potential to reduce the use of virgin materials to make new batteries. 57


Source: CIRAIG <http://www.ciraig.org/>

Figure 4. Lifecycle of a product

Goal 4: Develop a Greater Understanding of the Issues Related to Managing Single-use Batteries.

PSI’s 2010 interviews for this project yielded diverse responses about whether to collect and recycle single-use batteries. The following reasons were given as to why single-use batteries should, or should not, be collected and recycled. This section has been slightly updated based on more recent information.

Reasons TO collect and recycle single-use batteries (as expressed to PSI by some stakeholders)

Displacing use of virgin materials: The materials in single-use batteries should be recycled. Offsetting the need for virgin materials is typically the best way to reduce a product’s overall lifecycle impact by reducing the energy consumption needed to acquire virgin materials, as well as other environmental impacts from mining. Companies and policymakers are increasingly using this argument as a reason to recycle single-use batteries.

Creating incentives for collection and processing infrastructure: Collecting single-use batteries can lead to additional investments in collection and processing infrastructure, which will increase the net environmental benefit of battery recycling. Technologies currently under development have the potential to significantly increase the net environmental benefits of battery recycling. These emerging approaches include crushing or otherwise separating battery components into higher grade materials.

Potential toxic substances: Some single-use batteries may have mercury, especially older batteries still in storage.

Potential safety issues with lithium primary batteries: The need to bag or tape the terminals of these batteries makes collecting them more difficult and expensive. However, some see this as a reason that they should be collected, since doing so will ensure that they are safely handled and do not cause problems in the solid waste stream.

Consumers want to recycle them: Many consumers believe that batteries should not go into the waste stream. This leads them to hoard batteries in their homes if they are unsure what to do with them, or to bring them to collection points even if those locations do not intend to accept single-use batteries. When single-use batteries are delivered to a collection location intended only for rechargeable batteries, one of the following may happen: the batteries are accepted and then disposed of in the trash anyway, the consumer is turned away with their single-use batteries (some express concerns that this undermines overall efforts to encourage recycling generally), or batteries are deposited in a collection bin intended for rechargeable batteries and must be sorted out.

Consumers are confused about battery types: Consumers do not know the difference between battery chemistries, so sending a simple message that all batteries should be recycled could maximize the collection of rechargeable batteries.

Zero waste: Recycling in general is being driven in part by the need that many see to reduce the quantity of waste that is disposed, along with the associated costs and environmental impacts.

Reasons NOT TO collect and recycle single-use batteries (as expressed to PSI by some stakeholders)


No net environmental gain: It has only recently been shown through lifecycle assessment that there is a net environmental gain from the recycling of single-use batteries. Although this key tipping point has been reached, the conditions might not always exist for a net environmental benefit to be achieved in every collection program.

Battery recycling has environmental impacts: North America does not currently have processing infrastructure for single-use batteries that will yield net environmental benefits from the collection and processing of these batteries. Most single-use batteries would be processed through smelting, which is an energy-intensive process.

Batteries must be transported long distances: Most batteries collected must be transported long distances to be processed. This transportation might represent a greater environmental impact than transporting the batteries for disposal.

Costs associated with single-use battery recycling: The materials recovered from single-use batteries cannot be resold at a high enough price to significantly offset the cost of their collection, transport, and processing.


Appendix A. Material Use in Different Battery Chemistries

The graphs below characterize the percentage (by weight) of materials used in several common battery chemistries.

Primary Batteries

Secondary Batteries


Appendix B. Definition of Responsible Party in Current U.S. Laws and Ordinances Mandating Extended Producer Responsibility

State or Local Jurisdiction

Definitions Used

California “Retailer” a person who makes a retail sale of a rechargeable battery to a consumer in this state. “Distributor” is a person who a sells a rechargeable battery to a retailer. (Manufacturers or

producers are only alluded to in the following language: “It is the intent of this chapter to ensure that all costs associated with the proper management of used rechargeable batteries is internalized by the producers and consumers of rechargeable batteries at or before the point of purchase, and not at the point of discard.”)

Florida "Cell manufacturer" means a person who: “(1) Manufactures cells in the United States; or (2) Imports into the United States cells or units for which no unit management program has been put into effect by the actual manufacturer of the cell or unit.”

"Marketer" means any person who manufactures, sells, distributes, assembles, or affixes a brand name or private label or licenses the use of a brand name on a unit or rechargeable product. Marketer does not include a person engaged in the retail sale of a unit or rechargeable product.

Iowa “All participants in the stream of commerce relating to the batteries, which are listed in subparagraph (1) … shall, individually or collectively, be responsible for developing and operating a system for collecting and transporting used batteries to the appropriate dry cell battery manufacturer or to a site or facility designated by a manufacturer.”

Maine Responsibilities exist for “users, manufacturers, and distributers” (not defined in the statute). Maryland "Cell manufacturer" means a person who: “(1) Manufactures cells in the United States; or (2)

imports into the United States cells or units for which no unit management program has been put into effect by the actual manufacturer of the cell or unit.”

Minnesota Manufacturer is not defined in the statute. New Jersey Manufacturer is not defined in the statute. New York “Retailer” means “a person, firm, or corporation that engages in the sale of rechargeable

batteries or products containing such batteries to a consumer in the state, including but not limited to transactions conducted by mail, telephone, or the internet…retailers shall not include a food store; ‘food store’ means a store selling primarily food and food products for consumption or use off the premises that occupies less than 14,000 square feet of display space.”

“Battery manufacturer” means “every person, firm or corporation that: (i) produces rechargeable batteries sold or distributed in the state, or packages such batteries for sale in the state, except that if such production or packaging is for a distributor having the right to produce or otherwise package that same brand of battery in the state, then such distributor shall be deemed to be the battery manufacturer; or (ii) imports rechargeable batteries into the United States that are sold or distributed in the state.”

New York City (NY) (now superseded by NY state law)

“Battery manufacturer” means every person, firm or corporation that: (i) produces rechargeable batteries sold or distributed in the city of New York, or packages such batteries for sale in the city of New York, except that if such production or packaging is for a distributor having the right to produce or otherwise package that same brand of battery in the city of New York, then such distributor shall be deemed to be the battery manufacturer; or (ii) imports rechargeable batteries into the United States that are sold or distributed in the city of New York.

San Luis Obispo (CA)

“Retailer” means any entity, including but not limited to, a person or business, of whatever form of organization, which sells to the general public household batteries…to a consumer, including a manufacturer of household batteries … who sells household batteries…directly to a consumer.”

Ds Vermont Sss “Primary battery producer” or “producer” means one of the following: 1) a person who manufacturers a primary battery and who sells or offers for sale that primary battery in the state under the person’s own name or brand; 2) a person who owns or licenses a trademark or brand under which a primary battery is sold or offered for sale whether or not the trademark is registered; or 3) a person who imports a primary battery into the state for sale.


Appendix C. Definition of Responsible Party in Canadian Provincial Laws

Province Definition of Producers British

ColumbiaProducer: (i) a person who manufactures the product and sells, offers for sale or distributes the

product in British Columbia under the manufacturer's own brand; or(ii) the owner or licensee of a trademark under which a product is sold or distributed in British Columbia, whether or not the trademark is registered, or (iii) a person who imports the product into British Columbia for sale, distribution or use in a commercial enterprise;

Ontario Stewards: Brand owners, first importers or franchisors supplying materials for sale or use into the market.

Quebec Producers: Producers, first importers and private brand name owner. Manitoba Stewards: Brand owners, first importers or franchisors supplying materials for sale or use into the

market


Endnotes


1 Battery Stewardship Briefing Document, September 8, 2010, Product Stewardship Institute, Inc2 The mining and acquisition of most metals used in batteries has the potential for significant environmental impacts. For more information on the effects of metals contained in batteries on the environment and human health see Vest, H., Jantsch, F. (1999) Umwelt-Handbuch: Umweltvertraegliche Batterieentsorgung und verwertung. Deutsche Gesellschaft fur Technische Zusammenarbeit. Eschborn, Germany. Baumann and Muth, 1997.3 Shin, Shun-Myung, Jin-Gu Kang, and Jeong-Soo Sohn. "Development of Metal Recovery Process from Alkaline Manganese Batteries in Sulfuric Acid Solutions." Materials Transactions 48.2 (2007): 244; or see also Silva Veloso, Leonardo Roger, Luiz Eduardo Oliveira Carmo Rodrigues, et al. "Development of a Hydrometallurgical Route for the Recovery of Zinc and Manganese from Spent Alkaline Batteries." Journal of Power Sources 152.1-2 (2005): 295; De Souza, Cleusa Cristina Dueno Martha, and Jorge Alberto Soares Tenorio. "Simultaneous Recovery of Zinc and Manganese Dioxide from Household Alkaline Batteries through Hydrometallurgical Processing." Journal of Power Sources 136.1 (2004): 191.4 Avraamides, J., G. Senanayake, and R. Clegg. "Sulfur Dioxide Leaching of Spent Zinc-carbon-battery Scrap." Journal of Power Sources 159.2 (2006): 1488. 4 Mining and Sustainable Development: Challenges and Perspectives. Rep. Vol. 23. United Nations Environment Programme Division of Technology Industry and Economics, 2000. Print. Industry and Environment.5 Mining and Sustainable Development: Challenges and Perspectives. Rep. Vol. 23. United Nations Environment Programme Division of Technology Industry and Economics, 2000. Print. Industry and Environment.6 The U.S. Environmental Protection Agency designates cadmium as a probable human carcinogen. For more information, see the agency’s Technology Transfer Network Air Toxics Website at: http://www.epa.gov/ttn/atw/hlthef/cadmium.html (accessed July 7, 2010).7 Around Europe." European Portable Battery Association: Authoritative Voice of Portable Battery Industry. European Portable Battery Association, available at: http://www.epbaeurope.net/recycling.html, accessed July 8, 2010.8 Mining and Sustainable Development: Challenges and Perspectives. Rep. Vol. 23. United Nations Environment Programme Division of Technology Industry and Economics, 2000. Print. Industry and Environment.9 Geng, M., J. Han, F. Feng, and D.O. Northwood. "Hydrogen-absorbing Alloys for the Nickel-metal Hydride Battery." International Journal of Hydrogen Energy 23.11 (1998): 1055.10 Mining and Sustainable Development: Challenges and Perspectives. Rep. Vol. 23. United Nations Environment Programme Division of Technology Industry and Economics, 2000. Print. Industry and Environment.11 Scott Cassel interview with Carl Smith, Call2Recycle, on April 27, 2010.12 Total weight of Consumer Batteries sold in Canada: Alkaline 11,710 tones, Zinc-Carbon 5,074 tones, and total secondary consumer batteries 4,428 tones. Cited in: Battery Recycling in Canada-2009 Update. Kelleher Environmental. 2009 p. 20.13 Global Battery Demand to Approach $74 Billion in 2010," Market Wire, available at: http://findarticles.com/p/articles/mi_pwwi/is_200610/ai_n16767894/, accessed July 9, 2010.14 Directive 2006/66/EC of the European Parliament and of the Council on batteries and accumulators and waste batteries and accumulators and repealing Directive 91/157/EEC. September 6, 2006. http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:266:0001:0014:EN:PDF.15 “NEMA Announces Battery Industry Commitment to Eliminating Mercury in Button Cells,” National Electrical Manufacturers Association, March 2, 2006, available at: http://www.nema.org/media/pr/20060302a.cfm, accessed July 9, 2010.; “IMERC Fact Sheet: Mercury Use in Batteries,” Northeast Waste Management Officials Association, available at: http://www.newmoa.org/prevention/mercury/imerc/factsheets/batteries.cfm, accessed July 8, 2010.16 Though many existing steel plants can process primary batteries.17 This facility is currently only processing Industrial batteries, but has been included because it is in the process of seeking permit modifications that would allow it to process alkaline batteries in the state of California. Given the pending legislation in California and because it is a large collection and consolidation point, PSI has included it here for reference.18 42 USC 1430119 Except for button cells containing up to 25mg Hg.

20 The California law (Article 1. General Provisions 42451.(a)(4)) specifies the following: “It is the intent of the Legislature that the cost associated with the handling, recycling, and disposal of used rechargeable batteries be the responsibility of the producers and consumers of rechargeable batteries, and not local government or their service providers, state government, or taxpayers.”21 In California, retailers are only required to take back as many batteries as they are selling to the customer, or the number previously sold. Proof of purchase can be requested. The law also exempts retailers with gross annual sales less than $1 million, those who sell primarily food, or retailers whose only rechargeable battery sales are already embedded in products at the time of sale.22 Information provided by Call2Recycle in email correspondence from Todd Ellis, Call2Recycle, April 18, 2014. The estimate reflects the rechargeable batteries that Call2Recycle collects divided by an estimate of sales into North America by Call2Recycle’s licensees. They include batteries used by consumers that are also used in business situations (e.g., cell phones, two-radios, laptops, etc.).23 California's hazardous waste regulatory system goes beyond the federal RCRA program. (States can opt to be more stringent than RCRA, but not less stringent; most state hazardous waste regulatory programs are relatively equivalent to RCRA.) In California, there are several differences that are pertinent to batteries:

(1) California’s hazardous waste characteristics are broader. The California law has additional toxicity thresholds for substances that RCRA regulates (e.g., lead) and has thresholds for substances that don't have RCRA thresholds (e.g., copper and zinc). California's corrosivity characteristic also differs from RCRA's in that it applies to solids, not just liquids. Therefore, a battery that exhibits corrosivity in California due to its alkaline electrolyte, and toxicity due to its copper or zinc electrodes, might not exhibit any RCRA hazardous waste characteristic. (2) Under RCRA (and in the majority of states, which are RCRA-only), 40 CFR 261.4 (b)(1) categorically excludes household wastes from being hazardous wastes. This exclusion was not adopted in California, so a household-generated alkaline battery that exhibits toxicity for zinc and corrosivity due to its electrolyte would be identified as a hazardous waste and regulated as universal waste in California, but not in a RCRA-only state.24 See website of Californians Against Waste for explanation of California’s Universal Waste Law and list of about 15 products considered “universal waste” in California. Go to: http://www.cawrecycles.org/issues/ca_e-waste/dtsc_background.25 Email communication with James Ewels, Raw Materials Company. May 28, 2014.26 The five provinces are (Manitoba, Saskachewan, B.C., Alberta, & Ontario) Electronics waste has been identified as a priority by the Canadian Council of Ministers of the Environment, Canada-Wide Action Plan for Extended Producer Responsibility. Available at http://www.ccme.ca/assets/pdf/epr_cap.pdf.27 Directive 2006/66/EC of the European Parliament and of the Council on batteries and accumulators and waste batteries and accumulators and repealing Directive 91/157/EEC. September 6, 2006. http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:266:0001:0014:EN:PDF.28 (Collection and recycling of metals aligns with Article 174 of the EC Treaty.); Questions and Answers on the Batteries Directive (2006/66/EC), http://ec.europa.eu/environment/waste/batteries/pdf/qa.pdf.29 Marolia, Khush. European Experience on Factors Influencing Battery Collection Rate and Compliance Costs. Presentation for NEMA. Feb. 2009.30 BEBAT. General Information – Collection Network. http://www.bebat.be/pages/en/main.html.31 Marolia, Khush. European Experience on Factors Influencing Battery Collection Rate and Compliance Costs. Presentation for NEMA. Feb. 2009.32 The accessibility measure is a standard developed by Call2Recycle, and accessed at: http://www.call2recycle.org/battery-recycling-program-celebrates-17-consecutive-years-of-increased-collections/.33 Khush Marolia.”European Experience on Factors Influencing Battery Collection Rate and Compliance Costs.” Presentation for NEMA, February 2009.34 The Mercury Containing and Rechargeable Battery Management Act of 1996 banned the sale of mercuric oxide button cell batteries in the U.S. Larger mercuric oxide batteries may still be used for military or industrial purposes. See: Northeast Waste Management Officials' Association website, “Mercury Use in Batteries,” NEWMOA, available at: http://www.newmoa.org/prevention/mercury/imerc/factsheets/batteries.cfm>, accessed July 8, 2010.35 EU Battery Directive 2006/66/EC, enacted September 6, 2006.

http://www.call2recycle.org/battery-recycling-program-celebrates-17-consecutive-years-of-increased-collections/

http://www.call2recycle.org/battery-recycling-program-celebrates-17-consecutive-years-of-increased-collections/

http://ec.europa.eu/environment/waste/batteries/pdf/qa.pdf

http://www.ccme.ca/assets/pdf/epr_cap.pdf

36Waste Diversion Act 2002 . Phase 1 MHSW Program (includes Primary batteries) commenced on July 1, 2008;

Consolidated MHSW Program (includes all batteries except vehicle lead acid batteries) commences July 1, 2010.37 Environmental Management S.B.C. 2003, c. 53, sections 21 and 138. Reg. 449 (2008)38 Hazardous or Prescribed Household Material Stewardship Regulation. (C.C.S.M cW40)39 Proposed Regulation under the Environmental Quality Act (R.S.Q., c.Q-2)40 This method is currently used by Call2Recycle41 The method is currently used by Battery Council International (BCI), the European Union, Environment Canada and Stewardship Ontario. Battery Performance Metrics: Recommendations for Best Practice. Product Stewardship Institute. 2009. p. 8-1442 Battery Performance Metrics: Recommendations for Best Practice. Product Stewardship Institute. 2009. <http://www.productstewardship.us/displaycommon.cfm?an=1&subarticlenbr=610>43 Environmental Management S.B.C. 2003, c. 53, sections 21 and 138. Reg. 449 (2008)[iv][iv] Battery Performance Metrics pp.15-16 44Waste Diversion Act 2002 . Phase 1 MHSW Program (includes Primary batteries) commenced on July 1, 2008;

Consolidated MHSW Program (includes all batteries except vehicle lead acid batteries) commences July 1, 2010.45 Proposed Regulation under the Environmental Quality Act (R.S.Q., c.Q-2)46 Questions and Answers on the Batteries Directive (2006/66/EC) http://ec.europa.eu/environment/waste/batteries/pdf/qa.pdf. For more information on the Directive, please see: http://ec.europa.eu/environment/waste/batteries/index.htm47 Environmental Management S.B.C. 2003, c. 53, sections 21 and 138 ; Reg. 449; (2008)48 Waste Diversion Act 2002 (WDA) Phase 1 MHSW Program (includes Primary batteries) commenced on July 1, 2008.49 Hazardous or Prescribed Household Material Stewardship Regulation (C.C.S.M cW40)50 Proposed Regulation under the Environmental Quality Act (R.S.Q., c.Q-2) (final adoption expected for fall 2010)51 Sustainable Materials Management: The Road Ahead. Rep. no. EPA530-R-09-009. United States Environmental Protection Agency, June 2009.< http://www.epa.gov/wastes/inforesources/pubs/vision2.pdf>52 Karen Fisher, et. al. Battery Waste Management Life Cycle Assessment. October 2006. 53 Question and Answers on the Batteries Directive (2006/66/EC) citing extended Impact Assessment by the European Commission SEC (2003) 1343 p. 13.54 For more information on how product stewardship can reduce greenhouse gas emissions and reduce the environmental impact of products see: The Product Stewardship Institute. PRODUCT STEWARDSHIP AND GLOBAL WARMING. Fact sheet. March 2008. 55 Rydh, C.J., and J. Karlstroom. "Life Cycle Inventory of Recycling Portable Nickel-Cadmium Batteries." Resources, Conservation and Recycling 34.4 (2002): 289. Abstract. Critical Review of Literature Regarding Disposal of Household Batteries (2007). [This study found that excluding the use phase of a battery 65% of the energy is consumed in the manufacture of the batteries, 32% in the acquisition of raw materials, and found that the transportation distance for collecting batteries had no significant impact on the total energy consumption and environmental impact of a battery. The ideal recycling rate for Ni-Cd batteries is near 100%]56 Bernardes, A. Espinosa, D. Tenorio, J. 2004. Recycling of batteries: a review of current processes and technologies. Journal of Power Sources. Vol. 130: 291-298. Several studies support the finding that there is minimal environmental impact from landfilling nontoxic batteries. For more information on this topic, see Kelleher Environmental. 2009. Battery Recycling in Canada- 2009 Update: Report Submitted to Environment Canada and Natural Resources Canada.57 Ellis, Timothy W., R. David Prengamen, RSR Technologies. "The Development of Secondary Materials Stream from Li-Ion Batteries Using Direct Recycling Technology"; Ellis, Tim (RSR Technologies). Telephone interview. 15 June 2010.

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