Battery Legislation/Regulation US State Actions Presentation to the19th Trilateral Battery Working Group Meeting NEMA Dry Battery Section October 2016

US States - Battery Recycling Law Primary Batteries Vermont Primary Battery Recycling Law (Act 139) Effective 1 Jan 2016, Call2Recycle is Stewardship Organization Products with batteries excluded, but state will reevaluate this in 2019 NEMA sent notice to Trade Assns in Dec 2014 Lead Acid Batteries (new) The Lead Acid Battery Recycling Act of 2016 (AB2153) Covers Pb-acid batteries > 5 kg , 6 volts or more Effective 1 Jan 2017, begins collecting fees on 1 April 2017 Creates Pb-acid battery fee to fund clean-up of areas contaminated by Pb-acid battery disposal Consumers pay $1 at point of sale; manufacturers pay $1 for each battery sold in state; also consumers pay refundable deposit at each sale to encourage return of used batteries October 20, 2016 – NEMA Hdqts 2 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

2016 Recycling Legislation Outcomes Maine New York Connecticut LD 1578 Scope: All batteries Based on industry supported model Limited carve-outs Strong sponsor, supported by advo- cates and regulators Intense, widespread opposition from product suppliers, others Bill was defeated after long, difficult session SB 4522 Scope: All batteries at first, then changed to primary only Unexpected, came late in session Many carve-outs, exemptions Industry reacted quickly and effectively Kept bill off the floor and it failed at end of session SB 232 Scope: “consumer household” batteries, focus on primary Did very little Added batteries to state’s list of ‘designated recyclable items’ No support, failed early October 20, 2016 – NEMA Hdqts 3 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

Battery Recycling Legislation in 2017? Yes! 2016 sponsor will reintroduce Limited to Pb-acid and Ni-Cad NEMA unlikely to engage Likely Holdover from 2015 NEMA, PRBA have urged sponsor to withdraw Could be all battery bill Depends . . . . Legislation likely, but chance of success depends on outcome of state elections State Senate is crucial factor October 20, 2016 – NEMA Hdqts 4 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

California - Proposition 65 Regulation California - Proposition 65 Safe Drinking Water and Toxic Enforcement Act of 1986 Labeling and “consumer right2 know” program in California Involves most products and environments; 850 listed substances Enormous economic burden to comply, even without lawsuits Recent Changes New Clear & Reasonable Warning Rules finalized Sept 2nd Revises the warning language, effective 30 August 2018 Warnings must now name specific chemicals in product Shorter, ‘truncated’ warnings are allowed in some cases There is unlimited sell-thru period for existing products Home page for Prop 65 information: http://oehha.ca.gov/proposition-65 NOTE: California is only US state that prohibits disposing primary batteries with household waste October 20, 2016 – NEMA Hdqts 5 NEMA – TWG 2016 BUSINESS CONFIDENTIAL

Thanks for your attention! Contact Mark A. Kohorst 703-841-3249 703-841-3349 (fax) Mar_kohorst@nema.org NEMA Suite 1752 1300 North 17th Street Rosslyn, Va. 22209 October 20, 2016 – NEMA Hdqts 6 NEMA – TWG 2016 BUSINESS CONFIDENTIAL