The EPA has released a statement announcing the intent to propose new rules for the universal waste regulations (40 CFR Part 273) to specifically address solar panel and lithium battery handling and recycling. EPA has noted that the shift to an electrified power grid with more renewable energy and rechargeable battery storage is extremely important, but this shift will create a large inventory of solar panels and lithium batteries that will require proper handling and recycling or disposal when they reach their ‘end of life’. To improve the handling, storage, and recycling of solar panels and lithium batteries, EPA is proposing to add solar panels to universal waste regulations and create a distinct category within the universal waste regulations for lithium-ion batteries.
The universal waste regulations were developed to provide a consistent and streamlined approach to managing certain wastes that are universally generated among many types of businesses. These regulations were introduced to encourage proper collection and recycling of specific types of hazardous waste that are widespread and pose relatively lower environmental risks compared to other hazardous wastes. Wastes that are managed under the Federal universal waste regulations include certain batteries, pesticides, mercury containing equipment, certain light bulbs, and aerosol cans. The specific regulations and types of universal waste may vary between jurisdictions, as individual states or counties may adopt their own variations of universal waste regulations. Some states, such as California or Washington, may have additional, more stringent requirements for materials that are federally regulated as universal waste.
Impact to Solar Panel Management and Recycling
Solar panels are currently managed as non-hazardous solid waste or hazardous waste depending on the level of Resource Conservation Recovery Act (RCRA) metals present (e.g., lead). Management and recycling requirements of solar panels may also change from state to state, which can hinder the operation and growth of solar panel recycling facilities. For example, California and Hawaii already regulate solar panels under their state universal waste programs.
For states that do not manage solar panels under state universal waste programs, the generation of hazardous waste solar panels could be very impactful to facilities that do not otherwise generate large quantities of hazardous waste. If a facility needs to discard and recycle large quantities of hazardous waste solar panels, this activity could push them into the large quantity generator category of hazardous waste. This generator classification carries significant requirements that add additional burden to a facility that does not normally operate in that generator category. Facilities that are savvy to the rules of RCRA could manage periodic generation of large volumes of hazardous panels under episodic generation provisions (40 CFR 262.232) or by using the hazardous secondary materials transfer exclusion (40 CFR 261.4(a)(24)). Not all facilities have the bandwidth the take advantage of these regulations or they may operate in states that haven’t adopted these provisions.
The addition of solar panels to the definition of universal waste would allow for streamlined and clear rules for hazardous waste solar panel management at generator and recycling facilities. Generators of hazardous waste solar panels would not be required to count the generation of panels towards their generator classification, which will likely result in improved compliance and management of panels. Additionally, the transition from hazardous to universal waste management will reduce the barrier to entry for hazardous waste solar panel collectors and recyclers as they would no longer be required to obtain a RCRA Part B Permit. The transition to managing solar panels as a universal waste would encourage municipal landfills to develop solar panel collection and recycling programs to keep solar panels out of landfills. The EPA announcement is unclear on the effect the new rule would have on solar panels that are currently managed as non-hazardous waste and are managed and recycled at permitted solid waste facilities.
Impact to Lithium Battery Management and Recycling
Lithium batteries are currently managed under universal waste regulations unless the cell is breached. Per the recent EPA memo on lithium ion battery classification and management, if the cell is breached the battery must be managed and disposed of as a hazardous waste with the applicable waste codes applied. The original universal waste battery regulations were developed with managing lead-acid and nickel cadmium (NiCad) batteries in mind. These batteries are hazardous due to RCRA metals concentrations (lead, cadmium) and for exhibiting the corrosivity characteristic (lead acid batteries).
Lithium batteries exhibit the hazardous characteristics of ignitability (D001) and reactivity (D003) due to the lithium and electrolyte contained in the cells. When a lithium battery is defective or becomes damaged due to mismanagement, the battery may undergo a reaction called thermal runaway. Thermal runaway occurs when the temperature starts rising, causing a chemical reaction. The chemical reaction generates heat which feeds the chemical reaction. Uncontrolled heat can result in fires that can propagate to other battery cells or flammable materials stored nearby. These damaged or defective lithium battery reactions have caused fires and damage on board aircraft, in warehouses, and in electric vehicles. These thermal reactions could occur in all types of batteries but are much more likely in lithium batteries.
Lithium batteries need to be recycled in order to reclaim the valuable materials within for continued manufacture of rechargeable batteries. But lithium batteries have unique hazards when compared to other batteries managed under the universal waste regulations (lead acid, NiCad). The EPA has recognized the unique challenge and potential dangers of lithium batteries and is proposing to add a distinct category within the universal waste regulations for lithium batteries. Universal waste batteries can be accumulated and stored by handlers of universal waste, who are permitted to operate storage facilities with relatively minor monitoring and storage requirements compared to permitted RCRA Part B facilities. The EPA is hoping to upgrade the handling and storage requirements to be commensurate with the hazards associated with lithium batteries and match the industry standards for safe management and storage. The new rules will affect the generators, handlers, and recyclers of lithium batteries. New standards are likely to address battery packaging, storage, safety, and emergency response requirements. The permitting and approval landscape for battery recyclers suffers from a lack of clarity and inconsistency between states and the federal requirements. This lack of clarity creates a barrier to entry for new recycling companies and prevents batteries from being recycled and their raw materials re-integrated into the supply chain. The updates to the battery universal waste rules are intended to streamline and clarify the permitting processes for recycling facilities and to promote growth in the battery recycling sector.
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