A BILL TO BE ENTITLED
AN ACT to require (I) responsible decommissioning of utility‑scale solar projects and wind energy facilities upon cessation of activities and (II) recycling of all end‑of‑life photovoltaic modules and energy storage system batteries located within the state, and prohibiting their disposal in landfills.
The General Assembly of North Carolina enacts:

DECOMMISSIONING OF UTILITY‑SCALE SOLAR PROJECTS AND WIND ENERGY FACILITIES UPON CESSATION OF ACTIVITIES
SECTION 1.(a)  Article 9 of Chapter 130A of the General Statutes is amended by adding a new Part to read:
"Part 2J. Management of Solar Energy Equipment.
"§130A‑309.240.  Decommissioning and reclamation of utility‑scale solar projects; financial assurance requirements; recycling of project components required.
(a)	Decommissioning Requirement. – The owner or operator of a utility‑scale solar project shall be responsible for proper decommissioning of the project upon cessation of activities and reclamation of the property to its condition prior to commencement of activities on the site, including all costs associated therewith, no later than two years following completion of the operations. The owner or operator shall notify the Department within 30 days of cessation of activities for the purpose of completion of the project's operations, which notice shall include a detailed description of the steps to be taken to properly decommission the project, and for reclamation of the site. At a minimum, an owner or operator shall take all of the following steps in decommissioning a project:
(1)	Disconnect the solar project from the power grid.
(2)	Remove all equipment from the solar project, and collect and ship equipment for reuse, or recycle all of the components thereof capable of being recycled, in compliance with subsection (e) of this section, including: the PV modules; the entire solar module racking system; aboveground electrical interconnection and distribution cables that are no longer deemed necessary; any metal fencing; electrical and electronic devices, including transformers and inverters; and energy storage batteries, as that term is defined under G.S. 130A‑309.10(f). Components that will not be shipped for reuse, and are incapable of being recycled, shall be properly disposed of in a manner prescribed by the Department.
(3)	Clear, clean, and remove the foundation, and any subsurface cable or other equipment, from the ground to a depth of at least three feet below the surface grade of the land on which the foundation was installed. Provided, however, the Department shall waive this requirement for property on which soil contamination is present for which the utility‑scale solar project is not responsible.
(b)	Financial Assurance Requirement. – The owner or operator of a utility‑scale solar project shall establish financial assurance in an amount acceptable to the Department that will ensure that sufficient funds are available for decommissioning of the facility and reclamation of the property to its condition prior to commencement of activities on the site, even if the owner or operator becomes insolvent or ceases to reside in, be incorporated, do business, or maintain assets in the State. To establish sufficient availability of funds under this section, the owner or operator of a utility‑scale solar project may use insurance, financial tests, third‑party guarantees by persons who can pass the financial test, guarantees by corporate parents who can pass the financial test, irrevocable letters of credit, trusts, surety bonds, or any other financial device, or any combination of the foregoing, shown to provide protection equivalent to the financial protection that would be provided by insurance if insurance were the only mechanism used. Financial assurance shall be maintained by an owner or operator of a utility‑scale solar project at all times during the project's operation until decommissioning of the facility and reclamation of the property has been completed in compliance with subsection (a) of this section. In the event of a transfer of ownership of a utility‑scale solar project, the financial assurance established by the transferor of a project shall remain in effect until the transferee has established financial assurance acceptable to the Department.
(c)	Financial Assurance Rules. – The Department shall adopt rules establishing criteria to set the amount of financial assurance required for utility‑scale solar projects as set forth in subsection (b) of this section. These rules shall consider, at a minimum, the solar technology to be employed, i.e., PV, CPV, or CSP; the approximate number and size of PV modules included in the solar arrays to be constructed; any ancillary facilities to be constructed in association with the project; the condition of the property prior to construction of a utility‑scale solar project; the amount of acreage that would be impacted by the proposed project; and any other factors designed to enable establishment of adequate financial assurance for decommissioning and reclamation on a site‑by‑site basis. In establishing requirements for financial assurance for a utility‑scale solar project, the Department may take into account the salvage value of the project's equipment.
(d)	Fees. – The owner or operator of a utility‑scale solar project shall pay a fee of three thousand five hundred dollars ($3,500) to the Department at the time the owner or operator establishes financial assurance acceptable to the Department.
(e)	Recycling Requirements. – In addition to the requirements for recycling components of utility‑scale solar projects established under subsection (a) of this section, an owner or operator of a utility‑scale solar project shall be responsible for properly recycling each PV module used in the project at the end of the module's useful life. Recycling requirements established by this section shall be conducted in compliance with environmentally sound management practices to transport and recycle such items. An owner or operator shall conduct and document due diligence assessments of the recyclers it contracts with, including an assessment of compliance with environmentally sound recovery standards. The Department shall adopt rules to establish environmentally sound recovery standards for this purpose and may adopt rules it otherwise deems necessary to implement the recycling requirements established by this section.
(f)	Definitions. – For purposes of this section, the following definitions apply:
(1)	"End‑of‑life photovoltaic module" means a photovoltaic module that is removed and taken out of service that will not be reused.
(2)	"Photovoltaic module" or "PV module" means the smallest nondivisible, environmentally protected assembly of photovoltaic cells or otherphotovoltaic collector technology and ancillary parts intended to generate electrical power under sunlight, that is part of a utility‑scale solar project.
(3)	"Recycle" means the processing, including disassembling, dismantling, and shredding of PV modules or other equipment from utility‑scale solar projects, or their components, to recover a usable product. Recycle does not include any process that results in the incineration of such equipment.
(4)	"Utility‑scale solar project" means a ground‑mounted photovoltaic (PV), concentrating photovoltaic (CPV), or concentrating solar power (CSP or solar thermal) project capable of generating one megawatt (MW) or more directly connected to the electrical grid for sale to wholesale customers. The term includes the solar arrays, accessory buildings, transmission facilities, and any other infrastructure necessary for the operation of the project.
(g)	Annual List. – No later than September 1 of each year, the Utilities Commission shall provide the Department with an annual list of all utility‑scale solar projects operating within the State as of the date of the report."
SECTION 1.(b)  G.S. 143‑215.121 reads as rewritten:
"§ 143‑215.121.  Decommissioning and reclamation of wind energy facilities; financial assurance requirements; recycling of project components required.
(a)	Decommissioning Requirement. – The permit holder for a wind energy facility shall be responsible for proper decommissioning of the facility upon cessation of activities and reclamation of the property to its condition prior to commencement of activities on the site, including all costs associated therewith, no later than two years following completion of the operations. A permit holder shall notify the Department within 30 days of cessation of activities for the purpose of completion of the project's operations, which notice shall include a detailed description of the steps to be taken to properly decommission the project, and for reclamation of the site. At a minimum, a permit holder shall take all of the following steps in decommissioning a project:
(1)	Disconnect the facility from the power grid.
(2)	Remove all the turbines, accessory buildings, transmission facilities, and any other equipment necessary for the operation of the facility, including aboveground electrical interconnection and distribution cables that are no longer deemed necessary; any metal fencing; electrical and electronic devices, including transformers and inverters; and energy storage batteries, as that term is defined under G.S. 130A‑309.10(f), and collect and ship the equipment for reuse, or recycle all of the components thereof capable of being recycled, in compliance with subsection (e) of this section. For components that will not be shipped for reuse, and are incapable of being recycled, those components shall be properly disposed of in a manner prescribed by the Department.
(3)	Clear, clean, and remove the foundation, and any subsurface cable or other equipment, from the ground to a depth of a least three feet below the surface grade of the land on which the foundation was installed. Provided, however, the Department shall waive this requirement for property on which soil contamination is present for which the utility‑scale wind energy facility is not responsible.
(b)	Financial Assurance Requirement. – The applicant for a permit or a permit holder for a wind energy facility shall establish financial assurance that will ensure that sufficient funds are available for decommissioning of the facility and reclamation of the property to its condition prior to commencement of activities on the site, even if the applicant or permit holder becomes insolvent or ceases to reside in, be incorporated, do business, or maintain assets in the State. To establish sufficient availability of funds under this section, the applicant for a permit or a permit holder for a wind energy facility may use insurance, financial tests, third‑party guarantees by persons who can pass the financial test, guarantees by corporate parents who can pass the financial test, irrevocable letters of credit, trusts, surety bonds, or any other financial device, or any combination of the foregoing, shown to provide protection equivalent to the financial protection that would be provided by insurance if insurance were the only mechanism used. Financial assurance shall be maintained by a permit holder for a wind energy facility at all times during the facility's operation until decommissioning of the facility and reclamation of the property has been completed in compliance with subsection (a) of this section. In the event of a transfer of ownership of a wind energy facility, the financial assurance established by the transferor of a facility shall remain in effect until the transferee has established financial assurance acceptable to the Department.
(c)	Financial Assurance Rules. – The Department shall adopt rules establishing criteria to set the amount of financial assurance required for wind energy facilities as set forth in subsection (b) of this section. These rules shall consider, at a minimum, the approximate number and size of the turbines to be constructed; any ancillary facilities to be constructed in association with the facility; the condition of the property prior to construction of a wind energy facility; the amount of acreage that would be impacted by the proposed facility; and any other factors designed to enable establishment of adequate financial assurance for decommissioning and reclamation on a site‑by‑site basis. In establishing requirements for financial assurance for a wind energy facility, the Department may take into account the salvage value of the facility's equipment.
(d)	Recycling Requirements. – In addition to the requirements for recycling of wind energy facility equipment established under subsection (a) of this section, an owner or operator of a wind energy facility shall be responsible for properly recycling turbines, accessory buildings, transmission facilities, and any other equipment necessary for the operation of the facility, including aboveground electrical interconnection and distribution cables that are no longer deemed necessary, any metal fencing, and electrical and electronic devices, including transformers and inverters, and collect and ship them for reuse, or recycle all of the components thereof capable of being recycled, at the end of the equipment's useful life. Recycling requirements established by this section shall be conducted in compliance with environmentally sound management practices to transport and recycle such items. An owner or operator shall conduct and document due diligence assessments of the recyclers it contracts with, including an assessment of compliance with environmentally sound recovery standards. The Department shall adopt rules to establish environmentally sound recovery standards for this purpose and may adopt rules it otherwise deems necessary to implement the recycling requirements established by this section.
(e)	Definitions. – For purposes of this section the term "recycle" means the processing, including disassembling, dismantling, and shredding of equipment from wind energy projects, or their components, to recover a usable product. Recycle does not include any process that results in the incineration of such equipment."

REQUIRE RECYCLING OF ALL END‑OF‑LIFE PHOTOVOLTAIC MODULES AND ENERGY STORAGE SYSTEM BATTERIES
SECTION 2.  Part 2J of Article 9 of Chapter 130A of the General Statutes, as enacted by Section 1 of this act, is amended by adding two new sections to read:
"§ 130A‑309.241.  Recycling required for end‑of‑life solar energy equipment.
(a)	Findings. – The General Assembly finds:
(1)	According to a publication by the International Renewable Energy Agency (IRENA), solar photovoltaic deployment has grown at unprecedented rates since the early 2000s. As the global PV market increases, so will the volume of decommissioned PV panels, and large amounts of annual waste are anticipated by the early 2030s. Growing PV panel waste presents a new environmental challenge, but also unprecedented opportunities to create value and pursue new economic avenues. In addition, the report found (i) more than ninety percent (90%) of the materials in typical photovoltaic solar panels, including silicon, aluminum, and glass, can be recycled and used again in the production of new solar panels, (ii) recycling or repurposing solar photovoltaic panels at the end of their roughly 30‑year lifetime can unlock an estimated stock of 78 million tons of raw materials and other valuable components globally by 2050, and (iii) if fully injected back into the economy, the value of the recovered material could exceed fifteen billion dollars ($15,000,000,000) by 2050.
(2)	Solar panel wastes can include heavy metals such as silver, copper, lead, arsenic, cadmium, and selenium that at certain levels may be classified as hazardous wastes.
(3)	That a convenient, safe, and environmentally sound system for the recycling of photovoltaic modules, minimization of hazardous waste, and recovery of commercially valuable materials must be established.
(4)	That manufacturers are responsible for employing environmentally sound management practices to fulfill their obligations under this Part to finance and implement a stewardship plan to recycle or reuse the photovoltaic modules they manufacture.
(b)	Definitions. – For purposes of this section, the following definitions apply:
(1)	"Consumer electronic device" means any device containing an electronic circuit board that is intended for everyday use by individuals, such as a watch, calculator, or mobile telephone.
(2)	"End‑of‑life photovoltaic module" means a photovoltaic module that is removed and taken out of service that will not be reused.
(3)	"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, meets any of the following criteria:
a.	Manufactures or has manufactured a photovoltaic module under its own brand names for sale in or into this State.
b.	Assembles or has assembled a photovoltaic module 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 photovoltaic module produced by other suppliers, including retail establishments that sell photovoltaic modules under their own brand names.
d.	Manufactures or has manufactured a cobranded photovoltaic module 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 photovoltaic module into the United States that is sold in or into this State. However, if the imported photovoltaic module is manufactured by any person with a presence in the United States meeting the criteria of manufacturer under sub‑subdivisions a. through d. of this subdivision, that person is the manufacturer.
f.	Sells at retail in or into this State a photovoltaic module acquired from an importer that is the manufacturer and elects to register as the manufacturer for those products.
g.	Elects to assume the responsibility and register in lieu of a manufacturer as defined under sub‑subdivisions a. through e. of this subdivision.
(4)	"Photovoltaic module" or "PV module" means the smallest nondivisible, environmentally protected assembly of photovoltaic cells or other photovoltaic collector technology and ancillary parts intended to generate electrical power under sunlight, except that "photovoltaic module" does not include (i) a photovoltaic cell that is part of a consumer electronic device for which it provides electricity needed to make the consumer electronic device function or (ii) a photovoltaic cell that is part of a utility‑scale solar project as that term is defined under G.S. 62‑352(e). "Photovoltaic module" includes interconnections, terminals, and protective devices such as diodes that (i) are installed on, connected to, or integral with buildings or (ii) are used as components of freestanding, off‑grid, power generation systems, such as for powering water pumping stations, electric vehicle charging stations, fencing, street and signage lights, and other commercial or agricultural purposes.
(5)	"Recover" means the process of reusing or recycling photovoltaic modules.
(6)	"Recycle" means the processing, including disassembling, dismantling, and shredding, of photovoltaic modules or their components to recover a usable product. Recycle does not include any process that results in the incineration of photovoltaic modules.
(7)	"Recycler" means a person that recycles photovoltaic modules.
(8)	"Stewardship plan" means the plan developed by a manufacturer or its designated stewardship organization for a self‑directed stewardship program.
(9)	"Stewardship program" means the activities conducted by a manufacturer or a stewardship organization to fulfill the requirements of this section and implement the activities described in its stewardship plan.
(c)	Stewardship Organization as Agent of Manufacturer. – A stewardship organization may be designated to act as an agent on behalf of a manufacturer or manufacturers in operating and implementing the stewardship program required under this section. Any stewardship organization that has obtained such designation must provide to the Department a list of the manufacturers and brand names that the stewardship organization represents within 60 days of its designation by a manufacturer as its agent, or within 60 days of removal of such designation.
(d)	Registration and Stewardship Plans. – Each manufacturer shall register and prepare and submit a stewardship plan to the Department by the later of December 1, 2021, or within 30 days of its first sale of a photovoltaic module in or into the State. A stewardship plan shall:
(1)	Describe how the manufacturer will finance the takeback and recycling or reuse of all PV modules it manufactures that are sold in or into the State and identify an adequate funding mechanism to finance the costs of collection, management, and recycling or reuse of PV modules and residuals sold in or into the State by the manufacturer with a mechanism that ensures that PV modules can be delivered to takeback locations without cost to the last owner or holder.
(2)	Describe how the program will minimize the release of hazardous substances into the environment and maximize the recovery of other components, including commercially valuable materials.
(3)	Provide for takeback of PV modules at locations that are within the region of the State in which the photovoltaic modules were used and are as convenient as reasonably practicable, and if no such location within the region of the State exists, include an explanation for the lack of such location.
(4)	Identify how relevant stakeholders, including consumers, installers, building demolition firms, and recycling and treatment facilities, will receive information required in order for them to properly dismantle, transport, and treat the end‑of‑life PV modules in a manner consistent with the objectives described in subdivision (2) of this subsection.
(5)	Provide for environmentally sound management practices to transport and recycle discarded PV modules. The manufacturer shall provide proof of contract or agreement with a recycler that (i) is certified as adhering to Responsible Recycling ("R2") practices, (ii) is certified as an e‑Steward recycler adhering to the e‑Stewards Standard for Responsible Recycling and Reuse of Electronic Equipment®, or (iii) maintains another certification approved by the Department for responsible recycling of PV modules to process the discarded PV modules. The manufacturer shall notify the Department within 30 days of any change in status of a certified recycler with which it contracts.
(e)	Stewardship Plan Amendments. – A manufacturer may periodically amend its stewardship plan. The Department shall approve the amendment if it meets the requirements of subsection (d) of this section and rules adopted thereunder. When submitting proposed amendments, the manufacturer must include an explanation of why such amendments are necessary.
(f)	Plan Approval and Implementation. – No later than six months after receipt of a stewardship plan submitted for approval pursuant to subsection (d) of this section, the Department shall approve, approve with modifications, or deny a stewardship plan. The Department shall only approve a plan if it determines that the plan addresses each of the criteria set forth in subsection (d) of this section and any rules adopted thereunder. Once approved, the manufacturer shall implement the approved plan. Beginning July 1, 2022, no manufacturer may sell or offer for sale a photovoltaic module in or into the State unless the manufacturer has submitted to the Department a stewardship plan which has been approved by the Department.
(g)	Fee. – The Department shall establish (i) an initial registration fee, not to exceed ten thousand dollars ($10,000), to be paid by a manufacturer, before the manufacturer sells or offers for sale photovoltaic modules in the State and (ii) an annual registration fee, not to exceed ten thousand dollars ($10,000), to be paid by a manufacturer. An initial registration shall be valid from the day of registration through the last day of the fiscal year in which the registration fee was paid. The annual renewal registration fee shall be paid to the Department each fiscal year no later than June 30 of the previous fiscal year. The proceeds of these fees shall be credited to the Photovoltaic Module Management Fund.
(h)	Account. – The Photovoltaic Module Management Fund is created as a special fund within the Department. The Fund consists of revenue credited to the Fund from the proceeds of the fee imposed on PV module manufacturers under subsection (g) of this section. Moneys in the Fund shall be used by the Department to implement the provisions of this section.
(i)	Manufacturer Report. – Each manufacturer or stewardship organization shall submit a report to the Department by October 1 of each year stating the total weight of all photovoltaic modules collected for recycling or reuse in the previous fiscal year and a summary of other actions taken to comply with the requirements of this section. The manufacturer or stewardship organization must post this report on a publicly accessible Web site.
(j)	Department Report. – Information regarding permanent recycling programs for photovoltaic modules for which funds are received pursuant to this section shall be included in the annual report required under G.S. 130A‑309.09A.
(k)	Rules Required. – The Department shall adopt rules as necessary to implement the requirements of this section.
"§ 130A‑309.241.  Enforcement.
This Part may be enforced as provided by Part 2 of Article 1 of this Chapter."
SECTION 3.  Article 9 of Chapter 130A of the General Statutes is amended by adding a new Part to read:
"Part 2K. Management of Energy Storage Batteries.
"§ 130A‑309.250.  Recycling required for batteries used for energy storage.
(a)	Findings. – The General Assembly finds:
(1)	The use of batteries for energy storage, which include lithium‑ion batteries, lead acid batteries, sodium sulfur batteries, and vanadium redox flow batteries, has surged in recent years and these batteries contain toxic, flammable, and volatile chemical components and pose substantial disposal concerns.
(2)	The United States Department of Energy (DOE) recently opened a battery recycling research and development center at Argonne National Laboratory to reclaim and recycle valuable materials such as cobalt and lithium from spent lithium‑ion batteries, which Department personnel report will (i) help the United States grow a globally competitive recycling industry and reduce our reliance on foreign sources of battery materials, (ii) create jobs and create a national supply of lithium‑based battery materials, and (iii) reduce production costs of new batteries by ten percent (10%) to thirty percent (30%) through the use of recycled materials.
(b)	Definitions. – For purposes of this section, the following definitions apply:
(1)	"Consumer electronic device" means any device containing an electronic circuit board that is intended for everyday use by individuals, such as a watch, calculator, or mobile telephone.
(2)	"End‑of‑life energy storage system battery" means a battery, including a lithium‑ion battery, lead acid battery, sodium sulfur battery, and vanadium redox flow battery, used in an energy storage system that is removed and taken out of service, which will not be reused.
(3)	"Energy storage system battery" means a battery that is part of a system used to store chemical energy that was once electrical energy, for use in a process that contributes to end‑user demand management or grid operation and reliability. For purposes of this section, the term does not include energy storage system batteries (i) used in utility‑scale solar projects or utility‑scale wind facilities, (ii) that are part of a consumer electronic device for which it provides electricity needed to make the consumer electronic device function, or (iii) that are part of a plug‑in electric vehicle as defined in G.S. 20‑4.01(28a), or an alternative fuel vehicle (AFV) as that term is defined in G.S. 143‑58.4(a)(1).
(4)	"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, meets any of the following criteria:
a.	Manufactures or has manufactured a battery for use in an energy storage system under its own brand names for sale in or into this State.
b.	Assembles or has assembled a battery for use in an energy storage system 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 battery for use in an energy storage system produced by other suppliers, including retail establishments that sell batteries for use in an energy storage system under their own brand names.
d.	Manufactures or has manufactured a cobranded battery for use in an energy storage system for sale in or into this State that carries the name of both the manufacturer and a retailer.
e.	Imports or has imported a battery for use in an energy storage system into the United States that is sold in or into this State. However, if the imported battery for use in an energy storage system is manufactured by any person with a presence in the United States meeting the criteria of manufacturer under sub‑subdivisions a. through d. of this subdivision, that person is the manufacturer.
f.	Sells at retail in or into this State a battery for use in an energy storage system acquired from an importer that is the manufacturer and elects to register as the manufacturer for those products.
g.	Elects to assume the responsibility and register in lieu of a manufacturer as defined under sub‑subdivisions a. through e. of this subdivision.
(5)	"Recover" means the process of reusing or recycling an energy storage system battery.
(6)	"Recycle" means the processing, including disassembling, dismantling, and shredding, of an energy storage system battery or its components to recover a usable product. Recycle does not include any process that results in the incineration of an energy storage system battery.
(7)	"Recycler" means a person that recycles an energy storage system battery.
(8)	"Stewardship plan" means the plan developed by a manufacturer or its designated stewardship organization for a self‑directed stewardship program.
(9)	"Stewardship program" means the activities conducted by a manufacturer or a stewardship organization to fulfill the requirements of this section and implement the activities described in its stewardship plan.
(c)	Stewardship Organization as Agent of Manufacturer. – A stewardship organization may be designated to act as an agent on behalf of a manufacturer or manufacturers in operating and implementing the stewardship program required under this section. Any stewardship organization that has obtained such designation must provide to the Department a list of the manufacturers and brand names that the stewardship organization represents within 60 days of its designation by a manufacturer as its agent, or within 60 days of removal of such designation.
(d)	Registration and Stewardship Plans. – Each manufacturer shall register and prepare and submit a stewardship plan to the Department by the later of December 1, 2021, or within 30 days of its first sale of an energy storage system battery in or into the State. A stewardship plan shall:
(1)	Describe how the manufacturer will finance the takeback and recycling or reuse of all energy storage system batteries it manufactures that are sold in or into the State and identify an adequate funding mechanism to finance the costs of collection, management, and recycling or reuse of an energy storage system battery and residuals sold in or into the State by the manufacturer with a mechanism that ensures that an energy storage system battery can be delivered to takeback locations without cost to the last owner or holder.
(2)	Describe how the program will minimize the release of hazardous substances into the environment and maximize the recovery of other components, including commercially valuable materials.
(3)	Provide for takeback of energy storage system batteries at locations that are within the region of the State in which the energy storage system batteries were used and are as convenient as reasonably practicable, and if no such location within the region of the State exists, include an explanation for the lack of such location.
(4)	Identify how relevant stakeholders, including consumers, installers, building demolition firms, and recycling and treatment facilities, will receive information required in order for them to properly dismantle, transport, and treat the end‑of‑life energy storage system batteries in a manner consistent with the objectives described in subdivision (2) of this subsection.
(5)	Provide for environmentally sound management practices to transport and recycle discarded energy storage system batteries. The manufacturer shall provide proof of contract or agreement with a recycler that: (i) is certified as adhering to Responsible Recycling ("R2") practices, (ii) is certified as an e‑Steward recycler adhering to the e‑Stewards Standard for Responsible Recycling and Reuse of Electronic Equipment®, or (iii) maintains another certification approved by the Department for responsible recycling of energy storage system batteries to process the discarded batteries. The manufacturer shall notify the Department within 30 days of any change in status of a certified recycler with which it contracts.
(e)	Stewardship Plan Amendments. – A manufacturer may periodically amend its stewardship plan. The Department shall approve the amendment if it meets the requirements of subsection (d) of this section and rules adopted thereunder. When submitting proposed amendments, the manufacturer must include an explanation of why such amendments are necessary.
(f)	Plan Approval and Implementation. – No later than six months after receipt of a stewardship plan submitted for approval pursuant to subsection (d) of this section, the Department shall approve, approve with modifications, or deny a stewardship plan. The Department shall only approve a plan if it determines that the plan addresses each of the criteria set forth in subsection (d) of this section and any rules adopted thereunder. Once approved, the manufacturer shall implement the approved plan. Beginning July 1, 2022, no manufacturer may sell or offer for sale an energy storage system battery in or into the State unless the manufacturer has submitted to the Department a stewardship plan which has been approved by the Department.
(g)	Fee. – The Department shall establish (i) an initial registration fee, not to exceed ten thousand dollars ($10,000), to be paid by a manufacturer, before the manufacturer sells or offers for sale energy storage system batteries in the State and (ii) an annual registration fee, not to exceed ten thousand dollars ($10,000), to be paid by a manufacturer. An initial registration shall be valid from the day of registration through the last day of the fiscal year in which the registration fee was paid. The annual renewal registration fee shall be paid to the Department each fiscal year no later than June 30 of the previous fiscal year. The proceeds of these fees shall be credited to the Energy Storage System Battery Management Fund.
(h)	Account. – The Energy Storage System Battery Management Fund is created as a special fund within the Department. The Fund consists of revenue credited to the Fund from the proceeds of the fee imposed on energy storage system battery manufacturers under subsection (g) of this section. Moneys in the Fund shall be used by the Department to implement the provisions of this section.
(i)	Manufacturer Report. – Each manufacturer or stewardship organization shall submit a report to the Department by October 1 of each year stating the total weight of all energy storage system batteries collected for recycling or reuse in the previous fiscal year and a summary of other actions taken to comply with the requirements of this section. The manufacturer or stewardship organization must post this report on a publicly accessible Web site.
(j)	Department Report. – The Department shall include in the status of the solid waste management report required to be submitted on or before January 15 of each year pursuant to G.S. 130A‑309.06(c) a report on the recycling of energy storage system batteries in the State under this Part. The report must include an evaluation of the recycling rates in the State for energy storage system batteries, a discussion of compliance and enforcement related to the requirements of this Part, and any recommendations for any changes to the system of collection and recycling of energy storage system batteries.
(k)	Enforcement. – This Part may be enforced as provided by Part 2 of Article 1 of this Chapter.
(l)	Rules Required. – The Department shall adopt rules as necessary to implement the requirements of this section."

PROHIBIT DISPOSAL OF PHOTOVOLTAIC MODULES AND ENERGY STORAGE SYSTEM BATTERIES IN LANDFILLS
SECTION 4.  G.S. 130A‑309.10 reads as rewritten:
"§ 130A‑309.10.  Prohibited acts relating to packaging; coded labeling of plastic containers required; disposal of certain solid wastes in landfills or by incineration prohibited.
…
(f)	No person shall knowingly dispose of the following solid wastes in landfills:
…
(16)	Photovoltaic modules. For purposes of this section, "photovoltaic module" means the smallest nondivisible, environmentally protected assembly of photovoltaic cells or other photovoltaic collector technology and ancillary parts intended to generate electrical power under sunlight, except that "photovoltaic module" does not include a photovoltaic cell that is part of a consumer electronic device for which it provides electricity needed to make the consumer electronic device function. "Photovoltaic module" includes interconnections, terminals, and protective devices such as diodes that (i) are installed on, connected to, or integral with buildings or (ii) are used as components of freestanding, off‑grid, power generation systems, such as for powering water pumping stations, electric vehicle charging stations, fencing, street and signage lights, and other commercial or agricultural purposes.
(17)	Energy storage system batteries. For purposes of this section, "energy storage system battery" means a battery that is part of a system used to store chemical energy that was once electrical energy for use in a process that contributes to end‑user demand management or grid operation and reliability. The term does not include energy storage system batteries (i) that are part of a consumer electronic device for which they provide electricity needed to make the consumer electronic device function or (ii) that are part of a plug‑in electric vehicle as defined in G.S. 20‑4.01(28a), or an alternative fuel vehicle (AFV) as that term is defined in G.S. 143‑58.4(a)(1).
(f1)	No person shall knowingly dispose of the following solid wastes by incineration in an incinerator for which a permit is required under this Article:
(1)	Antifreeze (ethylene glycol) used solely in motor vehicles.
(2)	Aluminum cans.
(3)	Repealed by Session Laws 1995 (Regular Session, 1996), c. 594, s. 17.
(4)	White goods.
(5)	Lead‑acid batteries, as provided in G.S. 130A‑309.70.
(6)	Repealed by Session Laws 2011‑394, s. 4, effective July 1, 2011.
(7)	Discarded computer equipment, as defined in G.S. 130A‑309.131.
(8)	Discarded televisions, as defined in G.S. 130A‑309.131.
(9)	Photovoltaic modules.
(10)	Energy storage system batteries.
…."

DEPARTMENT OF ENVIRONMENTAL QUALITY TO ADOPT RULES AND REPORT
SECTION 5.  The Department of Environmental Quality shall adopt permanent rules implementing the requirements of this act no later than July 1, 2021.
SECTION 6.  Beginning December 1, 2019, the Department of Environmental Quality shall submit quarterly reports to the Environmental Review Commission and the Joint Legislative Commission on Energy Policy on the status of the rule making required by this act and shall include in the report an estimate of moneys needed by the Department in order to implement a program to oversee the recycling requirements established by this act.

APPLICABILITY TO EXISTING CONTRACTS
SECTION 7.  Nothing in Sections 1(a) or 1(b) of this act shall be construed to abrogate or impair a contractual provision executed on or before the effective date of this act that is binding on an owner or operator, in the case of Section 1(a), or a permit holder, in the case of Section 1(b), or their successors in interests, that expressly requires decommissioning and/or reclamation activities in direct conflict with the requirements of those sections, such as a contractual provision granting a landowner the right to retain project equipment after cessation of activities. In such case, compliance with the provisions of this act shall be required to the maximum extent that decommissioning and/or reclamation activities are not in direct conflict with the terms of such a contractual provision.

SEVERABILITY CLAUSE
SECTION 8.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part declared to be unconstitutional or invalid.

EFFECTIVE DATE
SECTION 9.  Sections 1(a) and 1(b) of this act become effective September 1, 2019, except that the financial assurance requirements established in G.S. 130A‑309.240(b), as enacted by Section 1(a) of this act, and G.S. 143‑215.121(b), as amended by Section 1(b) of this act, shall become effective August 1, 2021. Section 1(b) of this act applies to applications for permits for wind energy facilities and wind energy facility expansions pending or submitted on or after the effective date of this act. The remainder of this act becomes effective when it becomes law.