United States
Environmental Protection
Agency
Solid Waste and
Emergency Response
(OS-305)
Policy Planning
and Evaluation
(PM-221)
EPA/530-SW-91-029
January 1992
PB92-119965
vvEPA
States' Efforts to
Promote Lead-Acid
Battery Recycling
5305 W9 1029
1 Printed on paper that contains at least 50 percent recycled fiber.
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STATES' EFFORTS
TO PROMOTE LEAD-ACID BATTERY
RECYCLING
A Report Prepared for
the Office of Solid Waste
November 19, 1991
Program Evaluation Division Office of Regulatory Management and
Evaluation
Office of Policy, Planning and Evaluation
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TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
I. INTRODUCTION 7
A. PURPOSE 7
B. METHODOLOGY 7
II. IDENTIFYING THE PROBLEM 9
A. RECYCLING RATES 9
B. RECYCLING CHAIN 12
1. Starting Point—Consumers 12
2. Midpoints—First Tier 15
3. Midpoints—Second Tier 16
4. End Point—Secondary Lead Smelters 17
5. Minor Components 17
C. EFFECT OF THE PRICE OF LEAD 19
1. World Market 19
2. Domestic Market and Recycling 20
3. Foreign Competition 21
III. LEGISLATIVE SOLUTIONS CHOSEN BY STATES 22
A. MODEL LEGISLATION 22
B. PROVISIONS REQUIRED BY STATES 25
1. Additional Requirements 25
2. More Limited Requirements 27
IV. REVIEW OF STATE SOLUTIONS 33
A. AWARENESS/COMPREHENSION 33
1. Publicity Efforts 33
2. Clarity of Requirements 34
3. Other Implementation Issues 36
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B. RETAILER COMPLIANCE 37
1. Rhode Island 37
2. Consumer Complaints/Enforcement 37
3. Retailer Survey 38
C. CONSUMER PARTICIPATION 42
1. Fewer Batteries Appear in the Waste Stream 42
2. Shifts in Consumer Recycling Practices ... 43
D. PERSPECTIVES OF MEMBERS OF THE RECYCLING CHAIN . . 44
1. Retailers 44
2. Manufacturers 44
3. Scrap Dealers 45
4. Smelters 46
E. VALUE OF THE TAKE BACK AND DEPOSIT REQUIREMENTS 46
F. IMPACT OF RECENT HIGH LEAD PRICES 47
G. SPECULATION ON THE EFFECT OF LOW LEAD PRICES ... 48
1. Consumers and Retailers 48
2. Scrap Dealers, Manufacturers, and Secondary
Smelters 49
VI. CONCLUSIONS 51
VII. APPENDICES 53
A. MASS BALANCE EQUATIONS
B. OREGON RECYCLING SURVEY
C. BCI CONSUMER SURVEY
D. MINNESOTA RETAILER SURVEY
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EXECUTIVE SUMMARY
PURPOSE
Together with other EPA offices, the Office of Solid Waste
(OSW) is attempting to determine how EPA and States can most
effectively promote lead-acid battery recycling. Since many
States have already implemented laws to promote lead-acid battery
recycling, their experiences can provide useful insights in the
development of efforts in other States or a possible federal
program. Thus, OSW asked the Program Evaluation Division (FED)
of the Office of Policy, Planning and Evaluation (OPPE) to review
the States' approaches to promoting lead-acid battery recycling.
For the purposes of this study, lead-acid battery recycling
is the transfer of used lead-acid car batteries from consumers,
via a chain of intermediaries, to secondary lead smelters, where
the batteries are processed to produce refined "secondary" lead.
The objectives of this study were to: describe the car battery
recycling chain, characterize State lead-acid battery recycling
requirements, and review the effectiveness of State laws at
promoting lead-acid battery recycling.
BACKGROUND
Because of lead's high toxicity, EPA is committed to
reducing exposure of lead to humans and the environment. Nearly
1.3 million metric tons of lead are consumed in the U.S.
annually, and over 1 million metric tons, or 79 percent, are in
lead-acid batteries. Sixty percent, or 0.75 million metric tons,
are in automotive batteries. Since lead-acid batteries encompass
such a large percentage of the lead consumed in the U.S., battery
recycling, rather than disposal, is a significant means for
limiting exposure to lead.
Ideally, consumers return used batteries into the recycling
chain in one of three ways: batteries are returned to retailers
who accept them; they are taken to recycling centers; or they are
left in cars destined for autowreckers. These middlemen
generally deliver batteries to other intermediaries, namely scrap
lead dealers/battery haulers or battery manufacturers, who
ultimately send them to secondary smelters. If consumers choose
not to recycle, batteries may be thrown into the municipal solid
waste stream or kept indefinitely in storage.
Currently battery recycling rates are high, roughly 95
percent for 1990 according to industry representatives. A few
studies and anecdotal evidence also indicate that the number of
batteries appearing in the municipal solid waste stream is low.
However, an EPA report has shown that periodic fluctuations of
lead prices directly affect battery recycling rates, and a recent
industry survey of consumers suggests that 40 million used
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batteries are currently stored in peoples' homes (i.e., are not
being recycled). EPA's goal is to achieve as close as possible
to a 100 percent recycling rate for lead-acid batteries.
STATE LEGISLATION
Thirty-four States and one city have already enacted
legislation to promote lead-acid battery recycling. Most laws
include major provisions which:
• Prohibit disposal of lead-acid batteries into
municipal solid waste;
• Require retailers to accept used batteries from
consumers when new ones are purchased;
• Require retailers to post notices informing
consumers of State requirements; and
• Compel battery manufacturers to accept used
batteries from retailers when new ones are
purchased.
Several States include additional provisions, some of which:
require retailers to charge customers a deposit if an old one is
not returned when a new one is purchased; require retailers to
accept used batteries from consumers even if no battery is
purchased; and place time limits on used battery storage. All
the State laws also provide enforcement authorities.
Only Rhode Island currently requires mandatory retailer and
manufacturer reporting on battery sales and returns. Unless
other States adopt reporting requirements, this State will be the
only one which will have direct quantitative data to determine
the effectiveness of its laws over time.
PROGRAM EFFECTIVENESS
Extremely limited data are available on lead-acid battery
recycling rates before or after State implementation of recycling
legislation. Most State laws have also been in effect for less
than one year. Furthermore, recent high lead prices have
stimulated the voluntary battery collection mechanism that
already existed. How recycling will be affected when lead prices
drop is unknown. For these reasons, a comprehensive assessment
of the effectiveness of State laws is not possible at this time,
and high battery recycling rates cannot be directly attributed to
State legislation. This study draws mainly on interviews and
anecdotal information collected from a wide variety of sources—
States, solid waste disposal managers, battery manufacturers,
secondary lead smelters, scrap metal dealers, and battery
retailers—to provide qualitative impressions of States'
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experience in promoting leadacid battery recycling.
Observations on Recycling Practices
Many States believe that lead-acid battery recycling has
increased due to the implementation of State laws. Most
assertions are not based on firm knowledge of previous recycling
rates nor on measures of current recycling practices. Only Rhode
Island has collected data after one year of mandated recycling
and estimates that its recycling rate exceeds 95 and perhaps even
100 percent (due to the recycling of old batteries previously
stored by consumers). This represents a 20 to 40 percent
increase over previously estimated recycling rates.
Fewer batteries appear to be entering the municipal solid
waste stream and more batteries are being collected at recycling
centers. For example, Seattle waste composition studies show a
large reduction in the number of batteries found in municipal
waste collection trucks in the last two years, which correlates
with implementation of Washington's legislation. Anecdotes from
Oregon, Florida, and California suggest a greater use of
recycling centers for the disposal of lead-acid batteries. This
evidence may suggest that disposal prohibitions are effective but
does not help determine the effectiveness of other requirements.
Retailer participation in battery collection is high.
Anecdotal information and informal retailer surveys conducted by
six States (including one without battery recycling legislation)
indicate a very high rate of retailer participation in battery
collection. Well over 95 percent of the retailers surveyed were
willing to accept an old battery when a new one was purchased.
State agencies have received virtually no complaints from
consumers about retailer non-compliance with State laws.
Program Strengths
Take back and deposit provisions encourage consumers to
recycle. Take back provisions provide a mechanism whereby
consumers can easily return old batteries. They also reinforce
practices already engaged in by many retailers and are generally
supported by retailers and manufacturers. Deposit requirements
provide an additional incentive to consumers to recycle and are
also voluntarily practiced by many retailers. Though no evidence
indicates that deposit programs have resulted in any significant
inconvenience to consumers or retailers, support for these
provisions is mixed.
Mandatory take back requirements for manufacturers encourage
retailers to accept old batteries. When the price of lead drops,
the incentive to collect batteries declines, and in the past,
retailers may have had trouble disposing of batteries they
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collected. If enforced, the take back provisions should ensure
that manufacturers continue to collect the batteries from
retailers even when lead prices drop.
Notice requirements provide a cost-effective means of
educating the public about recycling requirements. Increasing
consumer awareness is a crucial component in encouraging
recycling. Producing and distributing notices to retailers is a
simple and cheap way to inform potential battery buyers across a
State of the recyclability of lead-acid batteries and
requirements to recycle them.
Program Concerns
State resources dedicated to enforcing battery recycling
requirements may need to increase if current market conditions
deteriorate. Compliance may become a problem when lead prices
drop and the incentive to collect batteries declines. Additional
resources for enforcement may be needed to ensure that retailers
and manufacturers continue to collect batteries if lead prices
fall.
Lead scrap dealers are not required to collect batteries.
Due to greater manufacturer participation in battery collection
and concerns about Superfund liability, the role of scrap dealers
in battery recycling has generally been declining. However,
autowreckers and recycling programs still rely primarily on scrap
dealers who voluntarily collect their batteries. This may
present a problem if, when lead prices drop, the scrap dealers
lose their incentive to collect them.
Batteries are likely to be shipped abroad, rather than be
recycled in the U.S. Manufacturers are not obliged to send
batteries to domestic secondary smelters for recycling. When
lead prices are low, they may store batteries they have collected
or export them to foreign smelters who can pay higher prices.
Battery exports may be a concern if the storage and processing of
used batteries in other countries poses a greater threat to human
health and the environment than recycling at U.S. secondary
smelters.
FURTHER STUDY
Several areas of additional study may be considered as
options for a Federal role to promote lead-acid battery
recycling. Informational needs include: the effect of lead
prices on battery collection mandated by State laws, the economic
and environmental impacts of lead imports and exports as the
price of lead fluctuates, and the changing role of secondary
scrap dealers and battery haulers.
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I. INTRODUCTION
A. PURPOSE
EPA is currently exploring how the Federal government and
States can most effectively promote lead-acid battery recycling.
In response to a request from EPA's Office of Solid Waste (OSW),
the Program Evaluation Division (PED) of the Office of Policy,
Planning and Evaluation (OPPE) conducted a study of States' lead-
acid battery recycling programs.
Thirty-four States and one city currently ban the disposal
of lead-acid batteries. Thirty laws have additional
requirements, including "take back" provisions, which require a
retailer to accept a used battery from a customer when a new one
is purchased. The purpose of PED's study was to provide OSW and
other offices with a quick review of the States' experience in
using legislation to promote lead-acid battery recycling.
Although many types of lead-acid batteries exist, State laws
primarily promote automotive battery recycling; thus, PED's study
focuses on the efforts to recycle these batteries, specifically
passenger car batteries.
The objectives of PED's study were to:
• Describe the process by which a used battery is
transferred from a consumer to a smelter;
• Characterize State lead-acid battery recycling
requirements and note differences among laws;
• Present States' experience in
implementing the legislation; and
• Review the effectiveness of the States'
laws at promoting lead-acid battery
recycling.
This study does not compare any of the methods used by the
States with any other alternatives for promoting lead-acid
battery recycling, nor does PED advocate their use in preference
to any other alternative.
B. METHODOLOGY
The most direct method of measuring the effectiveness of
State laws would be to compare lead-acid battery recycling rates
in States before and after legislation became effective and with
States that don't have lead-acid battery recycling legislation in
place. However, very little actual data have been collected
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regarding lead-acid battery recycling. Other factors, such as
the high price of lead and the aggressive recycling efforts of
members of the recycling chain, can also skew the results of any
comparison of recycling rates. Thus, qualitative information was
used to gauge the effectiveness of the States' laws.
Information for this study was collected from a wide variety
of sources. FED conducted interviews with government officials
as well as representatives of trade associations and individual
businesses. State agencies and trade associations also
contributed published and other information to assist PED's
study. PED's inquiries ranged from questions regarding
implementation of the laws to any noticeable changes in patterns
of battery disposal or collection. Representatives of the
following groups or organizations provided input to this study:
• States
• The Battery Council International (BCI)
• The Institute of Scrap Recycling Industries (ISRI)
• The U.S. Bureau of Mines
• The National Solid Wastes Management
Association (NSWMA)
• City, County, and Private Municipal Solid Waste
Managers
• Battery Manufacturers
• Secondary Lead Smelters
• National and Regional Retail Mass-
Merchandizing Chains
The study was conducted and written by Alan Youkeles. Irv
Auerbach was the Project Advisor. FED would like to thank the
following persons for providing information on retailer recycling
practices in their States: Harry Benson, Department of the
Environment, Maryland; Linda Casoria, Department of Environmental
Protection, Maine; Dianna Hogle, Department of Environmental
Quality, Wyoming; Billy Kahn, Florida Department of Environmental
Regulation; Claudia Moore, State Department of Health Services,
California; and Glenn Skuta, Minnesota Pollution Control Agency.
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II. IDENTIFYING THE PROBLEM
A lead-acid battery is a device designed and used to store
electrical energy through chemical reactions involving lead and
acid. According to the U.S. Bureau of Mines, the U.S. consumed
1.28 million metric tons of lead in 1989, 79 percent of which was
used in lead-acid batteries.1 Close to three-fourths (by weight),
or 0.75 million metric tons, of the lead-acid batteries shipped
domestically in 1989 are known as starting, lighting, and
ignition (SLI) batteries or automotive batteries. These
batteries are most commonly used in cars, trucks, tractors,
boats, aircraft, motorcycles, and other vehicles. Of the 80
million SLI batteries shipped in 1989, over two-thirds (by
weight) are car batteries.
Because of lead's high toxicity, EPA is committed to
reducing human and environmental exposures to lead. Since lead-
acid batteries make up such a large fraction of the lead used in
the U.S., maintaining a high rate of battery recycling (i.e.,
transferring used batteries from consumers to secondary smelters
for lead recovery) is an important component of efforts to
minimize potential exposures to lead. Some knowledge of battery
recycling rates and the recycling chain is valuable to provide
the context for evaluating any mechanism used to promote lead-
acid battery recycling. This chapter briefly looks at recycling
rates, the battery recycling chain, and how the price of lead
influences recycling. Following chapters discuss State efforts
to promote battery recycling and their effectiveness.
A. RECYCLING RATES
Lead-acid battery recycling rates provide a rough indication
of how successfully the lead in used lead-acid batteries is
diverted from the waste stream. Analysis of historical and
current trends for lead-acid battery recycling provides insight
into factors that affect recycling. This information can help in
determining recycling rate goals, a baseline for measuring
progress toward them, and appropriate responses to meet the
goals.
'Woodbury, William D. Bureau of Mines, U. S. Department of
the Interior. "Lead." October 1990.
2Battery Council International (BCI). "1989 Monthly
Shipment Reports."
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BATTERY RECYCLING RATES AND LEAD PRICES
1960-1985
Battery Recycling Rate
100%
90%
80%
70%
60%
50%
I
I
I
I
I
Price of Lead/Pound
$1.00
\ _
_L
1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984
Year
$0.90
$0.80
$0.70
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
$0.00
Battery Recycling Rate
Price of Lead in 1987 Dollars
Figure 1
Sources: Putnam, Hayes & Bartlett, Inc., 1987;
U.S. Bureau of Mines, 1991.
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Recycling rates generally compare the number of batteries
estimated to be available for recycling in a given year to the
amount of secondary lead produced in that year. However,
estimates of recycling rates for lead-acid batteries vary due to
many factors, such as identification of which batteries are
included in calculations, fluctuations in annual battery sales,
time lags in data due to various batteries' life spans, and
imports and exports of batteries and scrap lead (see Appendix A).
As a result, an accurate battery recycling rate is difficult to
establish.
A report prepared for EPA in 1987 estimated the 1985 battery
recycling rate to be 69.5 percent.3 It found that battery
recycling rates fluctuated widely during the 25 year period
ending in 1985, ranging between 61 (1983) and 97 (1965) percent,
with recycling rates tending to decline in the early 1980s. The
report also demonstrated that lead-acid battery recycling rates
are strongly correlated with the price of lead (see Figure 1).
Additionally, it noted that during the late 1970s and 1980s
recycling rates became less responsive to the price of lead than
they had been in the past.
The Battery Council International (BCI), a battery
manufacturers' trade association, recently released data which
estimate that the lead-acid battery recycling rate (excluding
"consumer" batteries) is roughly 95 percent/ Results from a
study mandated by Oregon legislation also place the State lead-
acid battery recycling rate between 90 and 99.9 percent for 1990
(the year in which Oregon's recycling legislation became
effective) .5
Although these estimated rates currently may be very high,
EPA is interested in maintaining a high battery recycling rate
due to the history of past recycling rate fluctuations,
especially when lead prices fall. EPA's goal in its "Strategy
for Reducing Lead Exposures," is to attain as close to a 100
3Putnam, Hayes & Bartlett, Inc. "The Impacts of Lead
Industry Economics and Hazardous Waste Regulations on Lead-Acid
Battery Recycling: Revision and Update." Prepared for the Office
of Policy Analysis, EPA. September 1987.
4Battery Council International. "National Recycling Rate
Survey." Prepared by Smith, Bucklin & Associates, Inc. April
1991.
5Oregon Department of Environmental Quality. "Backgroun
Report on the Status of Battery Recycling in Oregon." Prepared
by Linda Hayes. December 1, 1990.
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percent recycling rate of lead-acid batteries as possible.6 The
Agency is establishing a baseline lead-acid battery recycling
rate for 1989, likely to be between 80 and 85 percent, against
which to measure future progress in promoting battery recycling.7
B. RECYCLING CHAIN
The lead-acid battery recycling chain describes the process
by which a used car battery may be transferred from a consumer
(the starting point), through numerous intermediaries
(midpoints), to a secondary lead smelter (the end point). A
description of this chain can help identify what points in the
process should be changed or strengthened to maintain a high rate
of recycling. Figure 2 illustrates a simplified relationship
among the various members of the recycling chain.
1. Starting Point—Consumers
As the first link in the recycling chain, consumers have the
initial responsibility for recycling their used car batteries.
If they choose not to participate in recycling, they may hold on
to their batteries, or simply throw them into the trash, thus
delaying the batteries' entry into the recycling chain
indefinitely or permanently.
a. Consumer Survey
A survey was conducted for BCI in March 1990 to determine
how many lead-acid batteries are accumulating in consumers'
homes.8 The survey indicates that 19 percent of 1000 persons
surveyed have at least one old car battery in their homes for a
wide variety of reasons. BCI has extrapolated this finding to
suggest that 40 million batteries are kept in consumers' homes.
The survey also reports that 60 percent of those surveyed are
aware that car batteries are recyclable.
6"EPA Strategy for Reducing Lead Exposures." January 22,
1991.
7Office of Toxic Substances, EPA. "Regulatory Impacts
Analysis of Options to Enhance Lead-Acid Battery Recycling."
1991. (In preparation.)
8Peter D. Hart Research Associates. "Findings from a Survey
Conducted for the Battery Council International." April 1990.
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SIMPLIFIED LEAD-ACID BATTERY RECYCLING CHAIN
Recycling
Program
Scrap Dealer
Land Disposal
or Incineration
Secondary
Lead Smelter
Manufacturer
Figure 2
1"Land Disposal or Incineration," which may be legal or illegal, is the
alternative to recycling. Any member of the recycling chain may
choose this option rather than recycle.
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A number of reasons consumers provided for keeping old
batteries are reflective of real or perceived weaknesses in the
recycling chain. Fifteen percent of those having batteries keep
them because they either do not know where to return them, or
they have tried but are unable to dispose properly of their
batteries at a waste facility or other alleged battery collection
point. An additional 5 percent are keeping their old batteries
until they can receive a refund for returning them. These
particular reasons for consumers' keeping their batteries may be
specifically addressed by improving the efficiency of the
recycling chain.
The BCI study does not indicate how many consumers throw
their old batteries into the trash. However, findings from a
report prepared in 1989 by The Garbage Project of the University
of Arizona, as well as preliminary results of a waste composition
study recently conducted by the State of Minnesota, indicate that
very few lead-acid batteries are present in landfills.9 10 These
findings suggest that disposal of batteries into the municipal
solid waste stream is not very high. Anecdotal evidence, which
supports these studies' findings, will be discussed in a later
chapter."
'Wilson, Douglas C. The Garbage Project, Bureau of Applied
Research in Anthropology, University of Arizona. "Sources and
Fate of Heavy Metals in Landfills: Lead, Zinc, Cadmium, and
Mercury." November 1989.
10Ikeda, John, Ground Water and Solid Waste Division,
Minnesota Pollution Control Agency. Personal communication,
1991. '
"An EPA report ("Characterization of Products Containing
Lead and Cadmium in Municipal Solid Waste in the United States,
1970 to 2000," prepared by Franklin Associates, Ltd. for the
Municipal Solid Waste Program, January 1989) showed that lead-
acid batteries accounted for 65 percent of the lead found in
municipal solid waste in 1986. Although this information points
out lead-acid batteries as the principal source of lead in
municipal solid waste (a relative measure), it does not
contradict other reports which have found few batteries in the
waste (an absolute measure). The report estimated that 125,000
metric tons of battery lead were discarded in 1986. This is
equivalent to 0.09 perent of the municipal solid waste disposed
(after recycling) in 1986, or one automotive battery discarded
for roughly eight metric tons of solid waste disposed.
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b. Recycling Options
If a consumer wishes to recycle a used car battery, there
are basically three collection points where the consumer may take
the battery to enter it into the recycling chain:
• Battery retailers who accept used batteries (including
battery specialists, car dealerships, auto parts
stores, gas and service stations, and retail discount
stores);
• Recycling programs (including household
hazardous waste collection events, curbside
recycling, and municipal solid waste
recycling collection depots); or
• Autowreckers (batteries may be left in the old
cars which are to be junked).
These intermediaries are the primary collection points
fi e the first tier) for used batteries, which are then
commonly sent, via a second set of intermediaries, to a secondary
smelter.
2. Midpoints—First Tier
a. Retailers
Many battery retailers throughout the U.S. voluntarily
accept and even pay for used batteries; many are now required to
accept them from consumers by State law. Numerous retailers who
accept batteries make arrangements with battery manufacturers or
wholesalers to collect used batteries when they deliver new ones.
Alternatively, retailers may bring their used batteries to a
distributor when picking up new ones. Retailers have also
commonly sold batteries to battery haulers or lead scrap dealers,
but in some instances, especially when the price of lead has been
low, retailers have had to pay to have batteries removed.
b. Recycling Programs
In many States, waste recycling programs are becoming more
prevalent. Numerous communities and private landfill or
incinerator operators have recyclable material collection depots
at transfer stations or disposal sites to encourage recycling,
including lead-acid battery recycling. Curbside collection
programs and hazardous waste collection events further encourage
consumers to return their used lead-acid batteries to the
recycling chain. Batteries collected through these programs are
often sold to battery haulers and lead scrap dealers.
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c. Autowreckers
Bringing a used car to the autowrecker also usually brings
the used battery back into the recycling chain. Nearly nine
million automobiles are retired from service annually, leaving
roughly this many batteries available for recycling.
Autowreckers salvage junked cars and sell the metal parts
including batteries, mostly to metal scrap dealers, who find
markets for various metals. Metal scrap dealers who receive
batteries generally sell them to secondary smelters.
3. Midpoints—Second Tier
As mentioned in the previous section, batteries ordinarily
pass through a second tier of intermediaries before reaching a
secondary smelter. These intermediaries include: lead scrap
dealers/battery haulers, and reclaimers; and battery
manufacturers/wholesalers.
a. Scrap Dealers, Battery Haulers, and Reclaimers
This group has traditionally supplied secondary lead
smelters with roughly 40 percent of the lead-acid batteries and
other lead products that the smelters process. They have
operated independently or by contractual arrangements with
retailers, manufacturers, or smelters, collecting used batteries
paying or charging for them depending on lead prices, and selling
them primarily to smelters. Collection is small and large scale-
small pick-up trucks may make collection rounds among retailers
and deliver the batteries to scrap dealers or battery reclaimers
(who store batteries until enough are accumulated to send a
shipment to a smelter); or a battery hauler will take a truckload
of at least 1200 batteries directly to a secondary smelter.
b. Manufacturers and Wholesalers
Recycling used batteries is of significant interest to
battery manufacturers; lead-acid batteries commonly contain 65 to
70 percent secondary lead. Because they use so much secondary
lead, many manufacturers find it profitable to collect used
batteries themselves and make arrangements (called tolling) with
secondary smelters to process the batteries. By making tolling
arrangements, the manufacturers only pay for processing the lead,
and not the lead itself, whereas the smelters are guaranteed a
source of scrap lead to process. A few lead-acid battery
manufacturers operate their own secondary smelters to process the
batteries they collect. These "integrated" manufacturers are
especially active in seeking used batteries to recycle.
Manufacturers often collect used batteries while making
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deliveries to wholesalers or retailers, or they may have
contracts with independent battery collectors. Receiving
batteries from scrap dealers does not appear to be as common a
practice.
4. End Point—Secondary Lead Smelters
Secondary lead smelters are the ultimate market for most
used lead-acid batteries; they, too, have a strong interest in
promoting battery recycling. As described in the report prepared
for EPA in 1987, roughly two-thirds of the domestic secondary
smelters operating in 1976 had closed by 1986 due to a
combination of stringent environmental regulations and low lead
prices.12 Although secondary smelting capacity was reduced from
1.3 million metric tons in 1980 to 800,000 metric tons in 1986,
secondary smelting and refining capacity had risen# to 930,000 by
1989, with the industry operating at 87% capacity.13
Currently, 23 secondary smelters are in operation throughout
the country, although the vast majority are concentrated in the
East and South (see Figure 3). The costs of collecting and
transporting used batteries often limits the sources from which a
smelter may purchase used batteries. This becomes a significant
factor when lead prices are low, especially in the Northwest
where no smelters exist.
5. Minor Components
Other minor components of the recycling chain worth
mentioning include battery reconditioners and breakers/remelters.
These businesses may affect recycling rates and patterns by
delaying entry of batteries into the recycling chain or providing
alternatives to recycling by secondary smelters.
a. Battery Reconditioners
Battery reconditioners often collect returned batteries from
retailers (and possibly scrap dealers and autowreckers) and
clean, repair, and resell those which still have useful life.
Batteries which meet this fate pass through a mini-recycling loop
before they are ultimately disposed or returned to a secondary
lead smelter. The extent of reconditioner operations has not
been determined but is assumed to be small.
"Putnam, Hayes & Bartlett, Inc. 1987.
"Woodbury, William D. Bureau of Mines, U.S. Department of
the Interior. "Lead." October 1990.
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SECONDARY LEAP SMELTERS IN THE U.S.
As of April 1,1991
Figure 3
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b. Battery Breakers/Remelters
Battery breakers traditionally received batteries from scrap
dealers or manufacturers and physically broke apart the batteries
to separate and sell the various recyclable constituents. Almost
all battery breakers went out of business in the early 1980s due
to environmental regulations, and today, secondary smelters break
batteries themselves.
A small number (less than half a dozen) of battery
"remelters," which produce secondary lead but are not classified
as secondary lead smelters, are conducting battery breaking and
processing operations. Because they operate at lower
temperatures and do not emit critical levels of particulate or
off-gases, they are not subject to the same costly environmental
regulations with which secondary smelters must comply. Remelters
account for much less than five percent of the secondary lead
produced annually.
C. EFFECT OF THE PRICE OF LEAD
The recycling chain basically describes how car battery
recycling occurs when it works, but many factors can influence
the chain's success. Recycling rates of less than 100 percent
indicate that a certain percentage of the estimated number of
batteries available for recycling each year are not being
delivered to U.S. secondary smelters. As described above, the
awareness, interest, and ability of consumers to enter batteries
into the recycling chain is an important factor affecting how
many batteries are ultimately received by secondary smelters.
The price of lead, which affects the willingness and ability of
intermediaries as well as secondary smelters to collect used
batteries, is also an important factor which can constrain
battery recycling.
The price of lead is a function of the supply and demand for
lead on the world market. Refined lead is available from two
sources: primary lead, which is produced from mined lead; and
secondary lead, which is produced from old scrap (i.e., used lead
containing products such as batteries) or new scrap, which is
produced during the processing and manufacturing of lead-
containing materials.
1. World Market
Mined lead may be extracted from mines which contain only
lead ore, but it is most commonly mined, at very little
additional cost, as a by-product or co-product of mining
operations for other metals such as zinc, copper, and silver.
Throughout the early and middle 1980s, an oversupply of lead on
the world market existed due to expanding markets for these other
metals. This oversupply helped push down world prices (as
19
-------
measured by the London Metal Exchange) for lead. Since 1986, the
supply of lead has been relatively constrained due to
disruptions in primary lead production operations. These
disruptions have led to an increase in world lead prices durina
the late 1980s.14 *
2. Domestic Market and Recycling
In the U.S, battery manufacturers are the primary consumers
of refined lead. Their demand for lead strongly influences the
price at which it is sold in the U.S. The price of delivered
lead in North America, which covers tariffs, insurance, ocean
freight, and delivery, is normally greater than the world market
price. However, a delivered lead price five cents above the
world market price will often stimulate lead imports, which
limits how high domestic lead prices can climb."
a. High Lead Prices
The demand for secondary lead is mostly based on whether its
price is competitive with that of primary lead. The price of
secondary lead is principally constrained by its production
processes. In the U.S., when the demand for lead is high and
lead prices increase, secondary lead smelters can afford to pay
high prices for used batteries and still remain competitive with
primary lead producers. This stimulates operation of the
recycling chain. Secondary smelters pay high prices to scrap
dealers and battery haulers for used batteries, which gives them
incentive to collect, and even pay for, used batteries from
retailers. Manufacturers also have an incentive to collect used
batteries from retailers and make tolling arrangements with
secondary smelters rather than purchase primary lead. Retailers
who receive payments for used batteries from scrap dealers or
discounts on new batteries for returning old ones to
manufacturers are able to provide cash or trade-in incentives to
consumers to return their used batteries.
b. Low Lead Prices
When the domestic demand for lead is low, prices are low
(something below 30 cents/lb.), and the recycling chain tends to
founder. Because of their production costs, the secondary
smelters cannot continue to pay high prices for used batteries
and still remain competitive with primary lead producers. Low
prices offered by secondary smelters for used batteries
discourage battery haulers from collecting them. Manufacturers
generally are either less inclined to collect batteries for
"Putnam, Hayes & Bartlett, Inc. 1987.
15Woodbury, William D. October, 1990.
20
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recycling because they can purchase primary lead more cheaply
than secondary lead, or simply because they have little demand
for lead to produce batteries. As a result, retailers, who may
have difficulty finding a market for old batteries, have little
incentive to offer discounts to consumers for their used
batteries or even accept batteries at all. When the price of
lead is low, used batteries tend to remain in the hands of
consumers or speculators, are taken to recycling centers,
exported, or illegally disposed.
3. Foreign Competition
U.S. secondary smelters also have trouble competing with
foreign secondary smelters when world or domestic lead prices are
low. Due to strict environmental regulations, U.S. secondary
smelters generally have higher processing costs than secondary
smelters in other countries. When the price of lead falls,
foreign secondary smelters can pay higher prices, relative to
U.S. smelters, for used batteries due to their lower processing
costs. Because the export of used batteries tends to increase
when the price of lead is low, the supply of lead to domestic
secondary smelters decreases. Imports of foreign secondary lead
also displace domestic secondary production when lead prices are
low, again, due to foreign secondary smelters' lower processing
costs.
21
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III. LEGISLATIVE SOLUTIONS CHOSEN BY STATES
In order to assure that lead-acid batteries continue to be
recycled and are not dumped into the waste stream, 34 States and
one city have passed some form of legislation to promote lead-
acid battery recycling (see Figure 4). Thirteen (including
Kansas City, MO) have had legislation in effect for more than one
year. Thirteen others have or will have legislation that comes
into effect in 1991 or later. Most of these States have banned
lead acid batteries from disposal at landfills and/or
incinerators and have focused on promoting battery collection at
the retailer level. This chapter describes and briefly analyzes
various components of the States' legislation. Table 1 (at the
end of the chapter) summarizes the characteristics of all the
States' legislation.
A. MODEL LEGISLATION
The Battery Council International (BCI) has developed model
legislation (Figure 5) which many States have adopted in a
modified form. The basic provisions of the legislation:
• Prohibit disposal of a battery in mixed municipal
solid waste;
• Compel a retailer to accept a used battery
from a customer, if offered, at the time of
purchase of a new battery;
• State that retailers must display a written
notice to consumers with specified language
regarding lead-acid battery recycling.
• Compel a wholesaler or manufacturer to accept
an equivalent number of used batteries from a
retailer as batteries purchased, if offered;
The BCI model legislation additionally contains language
requiring wholesalers to collect used batteries from a retailer
within 90 days of notification. It also includes inspection and
enforcement provisions.
22
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COMPONENTS OF STATES' LEGISLATION
Figure 4
No legislation passed
Disposal ban only
Ban and mandatory take back
Ban, take back, and mandatory deposit
-------
Battery Council International Proposed Model Battery Recycling Legislation
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
Section 1. LEAD ACID BATTERIES; LAND
DISPOSAL PROHIBITED
(a) No person may place a used lead acid battery in
mixed municipal solid waste, discard or otherwise dispose
of a lead acid battery except by delivery to a battery
retailer or wholesaler, or to a secondary lead smelter, or
to a collection or recycling facility authorized under the
law of (state) or by the VS. Environmental Protection
Agency.
(v) No battery retailer shall dispose of a used lead acid
battery except by delivery to the agent of a battery
wholesaler or a secondary lead smelter, to a battery
manufacturer for delivery to a secondary lead smelter, or
to a collection or recycling facility authorized under the
law of (state) or by the U.S. Environmental Protection
Agency.
(c) Each battery improperly disposed of shall constitute
a separate violation.
(d) For each violation of this section a violator shall be
subject to a fine not to exceed $ and/or a prison term
not to exceed days (as appropriate under state
code).
Section 2. LEAD ACID BATTERIES, COLLECTION
FOR RECYCLING.
(a) A person selling lead acid batteries at retail or offer-
ing lead acid batteries for retail sale in the state shall:
(1) accept from customers, at the point of transfer, used
lead acid batteries of the tvpe and in a quantity at least
equal to the number of new batteries purchased, if offered
by customers; ant)
(2) post written notice which must be a least 81/2 inches
by 11 inches in size and must contain the universal recy-
cling symbol and the following language:
(i) "It is illegal to discard a motor vehicle battery or other
lead acid battery."
(ii) "Recycle your used batteries"; and
(iii) "State law requires us to accept used motor vehicle
batteries or other lead acid batteries for recycling, in
exchange for new batteries purchased."
Section 3. INSPECTION OF BATTERY RETAILERS.
The (appropriate state agency) shall produce, print, and
distribute the notices required by Section 2 to all places
where lead acid batteries are offered for sale at retail. In
performing its duties under this section the division may
inspect any place, building, or premise governed by Sec-
tion 2. Authorized employees of the agency may issue
warnings and citations to persons who fail to comply with
the requirement of those sections. Failure to post the
required notice following warning shall subject the estab-
lishment to a fine of $ per day (as appropriate under
state code).
Section 4. LEAD ACID BATTERY WHOLESALERS.
Any person selling new lead acid batteries at wholesale
shall accept from customers at the point of transfer, used
lead acid batteries of the type and in a quantity at least
equal to the number of new batteries purchased, if offered
by customers. A person accepting batteries in transfer
from a battery retailer shall be allowed a period not (9
exceed 90 days to remove batteries from the retail point
of collection.
Section S. ENFORCEMENT.
The (appropriate state agency) shall enforce Section 2
and 4. Violations shall be a misdemeanor under (ap-
plicable state code).
Section 6. SEVERABILITY.
If any clause, sentence, paragraph or part of this chapter
or the application thereof to any person or circumstance
shall, for any reason, be adjudged by a court of competent
jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder of this chapter or its
application to other persons or circumstances.
-------
The provisions of the BCI model incorporate several
important elements necessary to promote recycling. Batteries
which previously could be legally disposed in landfills or
incinerated must now be disposed by alternative methods. By
reducing the legal options for disposing of batteries, the
incentive to develop collection mechanisms for batteries is
increased. Take back requirements encourage public participation
in recycling by providing consumers with a convenient outlet
(i.e., retailers) to dispose of their used batteries. Displaying
a written notice on lead-acid battery recycling requirements is
an important public education tool, which increases the public's
awareness of the recyclability of batteries and raises public
consciousness of the importance of recycling. Finally, requiring
wholesalers and manufacturers to accept batteries from retailers
relieves the retailers of the burden of finding a market for the
batteries they collect. The requirement also spreads
responsibility for recycling batteries to the battery
manufacturers, who have an economic interest in the secondary
lead produced from the used batteries.
B. PROVISIONS REQUIRED BY STATES
Most State laws have included most or portions of the
proposed BCI model. A number of States have also implemented
additional requirements beyond BCI's proposed model to further
strengthen the recycling chain. The more limited recycling
provisions may not be as effective in promoting continued lead-
acid battery recycling if the price of lead falls.
1. Additional Requirements
a. Mandatory Deposit
Ten States require retailers to demand that a customer pay a
deposit which ranges from $5 to $10 when purchasing a new battery
if a used battery is not returned at the time of purchase.
(Michigan also will require a deposit procedure to be implemented
in 1993, if necessary.) The deposit is required whether the
battery replaces an old battery or whether the battery is for
original equipment (e.g., for a new lawn mower that doesn't
include a battery). Washington State is the only State to exempt
original equipment batteries from the deposit or trade-in
requirements.
The deposit requirement provides an extra incentive for
consumers to bring their batteries back into the recycling chain.
If the consumer brings a used battery back to the retailer within
30 days (seven days in Rhode Island), the deposit is returned.
In most of these States, if the deposit is not reclaimed by the
consumer, the retailer may keep the unclaimed amounts and any
25
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interest accrued. In Rhode Island, retailers may keep only 20
percent of the unclaimed deposits, and must remit the remainder
to the State, which uses the funds to operate its program,
including implementing record-keeping requirements. Michigan
retailers will be allowed to keep 0.5 percent of the unclaimed
deposits as an administrative cost, once the State's deposit
requirement is implemented.
Rhode Island also requires that battery collectors pay
retailers a handling fee of at least $1 for each battery in
addition to whatever payment is made for the value of the
battery. This ensures that retailers will have a minimum
reimbursement for their handling and tracking of used batteries.
b. Acceptance of Additional Batteries
Six States and Kansas City have implemented requirements to
promote the collection of "orphan" batteries, which are used
batteries that have accumulated in people's homes over the years
and have not been disposed or recycled. This provision requires
that retailers and wholesalers accept orphan batteries from
consumers even if they do not purchase a new one. This
encourages consumers to return orphan batteries to the recycling
chain. In order to protect retailers from being overwhelmed by
the return of these batteries, the requirements restrict
customers to returning between one and five batteries per visit.
Retailers are not required to pay the customers anything for the
orphan batteries that are returned. In three of these States,
the laws provide for the repeal of this requirement after a
specific time on the assumption that most orphan batteries will
have been brought back into the recycling chain after a given
period of time.
c. Storage Limits
California and Wyoming also have restrictions on how many
batteries may be stored without a hazardous waste storage permit.
In a separate but related regulation, California will allow one
ton of batteries or less to be stored for one year and more than
one ton to be stored for 180 days without a hazardous waste
storage permit. Wyoming regulations will allow storage of up to
1200 batteries because this is the minimum number of batteries
(equivalent to a truck load) which major battery haulers will
stop to collect. Thirteen States' lead-acid battery recycling
laws include specific time limits of 90 or 120 days within which
used batteries must be collected from retailers. Other State
laws that were not identified in the course of this study may
also regulate the handling and storage of used lead-?acid
batteries.
26
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d. Record-keeping
Rhode Island is the only State that has required retailers
and manufacturers (and soon recyclers) to report the numbers of
batteries in stock, sold and returned on an annual basis. Not
only is this requirement beneficial for tracking recycling rates,
it also facilitates enforcement; those who do not or incorrectly
report are easily identified through cross-checking between
manufacturers and retailers, which thereby encourages compliance.
These reporting requirements assure that the State maximizes its
recovery of unclaimed deposits to support the program.
e. Procurement Requirements
In a separate law approved in September 1989, California
requires that all lead-acid batteries purchased by the State
shall be "recycled" batteries. As previously mentioned, lead-
acid batteries currently contain from 65 to 70 percent secondary
lead. The State is considering requiring vehicle batteries that
it purchases to contain a minimum of 75 percent secondary lead.
California appears to be the only State attempting this approach
to promote recycling of lead-acid batteries, and this
regulations impact bears watching as alternatives to the take
back provision are considered.
2. More Limited Requirements
a. Disposal Prohibition Only
Five States only prohibit land disposal and/or incineration
of lead-acid batteries without requiring retailers to take back
batteries. These states rely on the voluntary efforts of
retailers and consumers to keep batteries out of the waste
stream. However, a drop in lead prices could discourage
retailers from accepting lead-acid batteries from consumers.
b. Retailer Take Back Only
A few States rely on wholesalers and manufacturers to
voluntarily accept spent batteries from retailers, although the
states do require retailers to accept them. If the price of lead
falls and the economic incentive to collect lead-acid batteries
drops, wholesalers may not accept batteries and retailers may
have to pay to have batteries collected. This could encourage
the illegal disposal of collected batteries.
27
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c. Limited or No Notice Requirement
In addition to requiring retailers to post notices for
consumers concerning lead-acid battery recycling, the BCI model
legislation also recommends that State agencies produce, print,
and distribute these notices to the retailers. (Figure 6 is a
sample provided by the State of Maine.) Twelve States provide
posters to retailers, and 14 require retailers to provide their
own notices. A few States do not require notices to be posted at
all. Consumer awareness is the starting point for recycling used
lead-acid batteries. If people are aware of their ability and
responsibility to recycle lead-acid batteries, they can take
positive action to keep the waste stream free of used batteries.
d. Suspension of Requirements
In case the price of lead becomes too low to keep recycling
economical, Washington allows recycling requirements to be
temporarily suspended. The law permits the State to suspend any
of its provisions whenever the State finds that "the market price
of lead has fallen to the extent that [the]... average cost of
transporting used batteries to a smelter... is clearly greater
than the market price paid for used batteries." The suspension
order is only applicable to batteries sold during the suspension
period, and the suspension may not exceed six months at a time.
e. Resources for Implementation and Enforcement
State laws have not authorized specific funding nor
allocated resources to implement lead-acid battery recycling
"programs." Resources for implementation usually come from
general solid waste program funds and are used primarily to
notify affected parties of the laws' requirements and to print
notices for retailers to post. Rhode Island appears to be the
only State which finances administration of its reporting
requirements with unclaimed deposits that are remitted to the
State. Some State laws authorize the assessment of fines ranging
from $25 to $lOOO/day. Availability of resources to monitor
compliance or conduct enforcement activities could be important
if retailer and manufacturer compliance declines when lead prices
fall.
28
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State of Maine
PUBLIC NOTICE
Lead-Acid Batteries
State Law (38 MRSA §1604) requires us to accept motor
vehicle batteries or other lead-acid batteries for recycling in
exchange for new batteries purchased.
A deposit of $10 will be charged for each new lead-acid battery
that is not exchanged with an
old lead-acid battery.
It is illegal to dump, bury or
incinerate a motor vehicle
lead-acid battery or other
lead-acid battery.
Recycle your used batteries.
Department of Environmental Protection
Bureau of Solid Waste Management
State House Station 17
Augusta, Maine 04333
Tel: (207)582-8740
MAINE
RECYCLES
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Table 1
SUMMARY OF STATES' LEGISLATION
As of May 1,1991
State 1
Arizona
Arkansas
California
Connecticut
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas City, MO
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Minnesota
Date
Effective
9/27/90
7/1/92
1/1/89
10/1/90
1/1/89
1/1/91
1/1/90
7/1/91
9/1/90
1/1/91
7/1/90
3/14/90
7/13/90
9/1/89
10/1/89
12/31/90
4/1/90
1/1/88 6
Mandatory
Take Back 2
Yes
Yes
Yes*
Yes
Yes*
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Mandatory
Deposit
$5
$10
No
$5
No
No
No
$5
No
No
No
No
No
No
$10
$67
$5
Must Post
Notice3
Retailer
State
No
Retailer
No
Retailer
State
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
State
State
State
Definition
of Battery4
Specific
No
Specific*
Specific*
Specific*
No
No
Specific
Specific
Specific
No
Specific
No
No
Not Specific
No
Not Specific
No
Retailer Accept
Add'l Batteries
No
No
No
3 thru 3/92
No
No
No
No
No
No
No
3
No
No
No
No
1 thru 12/93
Storage
Time Limit 5
No
90 Days
No
90 Days
No
No
90 Days
No
90 Days
90 Days
No
Unknown
No
90 Days
90 Days
No
90 Days
No
-------
Table 1 (continued)
State 1
Mississippi
Missouri
New Hampshire
New Jersey
New York
North Carolina
Ohio
Oregon
Pennsylvania
Rhode Island
Tennessee
Utah
Vermont
Virginia
Washington
Wisconsin
Wyoming
Date
Effective
7/1/91
1/1/91
1/1/91
4/9/91
1/1/91
1/1/91
7/1/93
1/1/90
7/28/88
7/1/89
7/1/90
1/1/92
7/1/90
7/1/90
7/23/89
1/1/91
6/8/89
Mandatory
Take Back2
Yes
Yes
No
Yes
Yes
Yes*
No
Yes
Yes
Yes
No
Yes
No
Yes
Yes
Yes*
Yes
Mandatory
Deposit
No
No
No
$5
No
No
No
$5
No
No
$5
$58
No
Must Post
Notice3
State
State
Retailer
Retailer
No
Retailer
State
No
Retailer
State
State
State
State
Definition
of Battery4
No
No
No
Specific
Specific
No
No
No
Specific
Specific
No
No
Not Specific
Specific
No
No
Retailer Accept
Add') Batteries
No
No
No
2 per month
No
1 thru 12/93
No
No
19
No
No
2 10
No
Storage
Time Limit5
180 Days
90 Days
No
Unknown
No
No
No
90 Days
90 Days
No
No
No
No
90 Days
No
No
No
-------
1 FOOTNOTES |
(continued) ^^•^••^^^J
All States in this table have lead-acid battery disposal prohibitions
2
An * indicates that the take back requirement does not apply to
wholesalers or manufacturers
3
"State" indicates that States have the responsibility to produce
and distribute notices; "Retailer" indicates that retailers have
this responsibility
4 "Specific" indicates that the definition includes capacity, function
or size distinctions; "Not specific" indicates a generic definition
of lead-acid battery; an * indicates that a more specific definition
is included in regulations or another law
5 This requirement specifically limits the time in which batteries
must be removed from a retailer; some States also may have storage
requirements in other legislation or regulations which are not noted here
Mandatory deposit requirement became effective 10/2/89
7 Mandatory deposit requirement becomes effective 1/1/93
o
Retailers have the option of charging a deposit of no more than $5
9
Retailers must accept one additional battery only at the time of
purchase of a new one
Retailers must accept only two additional batteries/person/day and
may charge $3 for each battery
-------
IV. REVIEW OF STATE SOLUTIONS
This chapter reviews state solutions by looking at awareness
and comprehension of the laws, retailer compliance with
requirements, consumer participation, and perspectives of other
members of the recycling chain. Specific legislative components
are discussed as well as the impact of external factors which may
distort findings about the laws' effectiveness.
Data to evaluate the effectiveness of States' efforts to
promote lead-acid battery recycling are extremely limited. Most
legislation was designed to be self-implementing; few States have
needed to write regulations to implement the laws, or spend much
time or effort, other than limited initial outreach, in
monitoring or enforcing the laws. Virtually no State provides
specific funding for implementing lead-acid battery recycling
requirements; only Rhode Island specifically dedicates staff to
implementing prescribed reporting requirements. Additionally,
high turnover rates among staff in many States constrained
efforts to obtain an historical perspective about States• efforts
to implement their programs. In a few States, responsibility for
implementing the legislation or responding to issues regarding
recycling of lead-acid batteries is spread among several staff,
who may not be aware of each others' activities. As a result of
these constraints, this review of the States' effectiveness is
necessarily limited and predominantly qualitative in nature.
A. AWARENESS/COMPREHENSION
Awareness and comprehension of requirements are critical to
the success of any legislation or regulation. This section
considers State efforts to promote the battery recycling laws and
makes observations regarding the clarity of certain provisions.
1. Publicity Efforts
Virtually all of the State laws contain provisions requiring
public notices to be posted, and many State agencies have
affirmed that consumer education is very important to the success
of their legislation. Most agencies have issued press releases
and other media announcements concerning recycling lead-acid
batteries, and local waste collection programs and waste
collection events have also publicized the recyclability of lead-
acid batteries. Additionally, certain States have implemented
strong general recycling campaigns, while some States have set
goals to reduce the amount of waste disposed in landfills and
incinerators.
Officials in a number of States believe that more outreach
to inform the general public would be very valuable. They think
33
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that raising the awareness of consumers is the most important
element in improving and maintaining high battery recycling rates
and may be more important than mandatory deposit requirements.
State efforts to inform retailers about the recycling
legislation and requirements have been much more extensive than
those intended to inform consumers. Virtually all States sent
out mass mailings, which included explanations of the
requirements as well as samples of display notices, to thousands
of retailers who were affected by the laws. Due to difficulties
in identifying the full universe of retailers who handle lead-
acid batteries, numerous retailers within in the States were not
notified, and many states sent out additional mailings, when the
laws originally went into effect, state officials received many
calls asking for clarification of certain requirements or for
more notices.
Several States also contacted manufacturers regarding the
recycling requirements. In some cases, only the manufacturers
were notified and were expected to provide their distributors and
retailers with the necessary information. Given limited State
staff resources and the large number of affected parties to be
notified, all members of the recycling chain were not always
reached through State notification efforts. Some trade
associations such as BCI and ISRI have taken responsibility to
provide information to their membership.
2. Clarity of Requirements
a. Definition of Lead-Acid Battery
Inconsistencies in the definitions of lead-acid batteries
have led to some confusion among consumers, retailers, and
manufacturers alike. Most of the State laws passed thus far do
not define "lead acid battery"; all lead-acid batteries are
subject to the legislative requirements. Some laws specify that
a battery have a minimum voltage capacity of six volts or a
maximum weight limit (lead-acid batteries for industrial use may
weigh over 5000 pounds), and a few specify a range of uses for
the battery, including for motor vehicles, boats, aircraft,
and/or for motive or stationary purposes. In most cases,
however, requirements regarding recycling have been directed
primarily toward motor vehicle batteries, with few, if any
provisions for other types of lead-acid batteries.
34
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1) Consumer Batteries
For States that do not have a minimum voltage capacity
requirement, the law is technically applicable to small
"consumer" batteries, such as those frequently used in certain
household appliances, fire and burglar alarm systems, and hand-
held power tools. These batteries are often sealed in the
appliances and are not available for retail replacement purchase.
There is no established mechanism for their collection, and
manufacturers of these batteries and of products containing them
have expressed concern as to how to apply a mandatory take back
requirement (as well as a deposit) to this type of battery.
State lead-acid battery legislation does not currently deal
explicitly with this category of lead-acid battery.
2) Stationary and Motive Power Batteries
Two other major classes of batteries, stationary source and
motive power batteries (battery types mostly intended for
industrial use), are also not well-suited to take back and
deposit requirements and are generally not addressed by States'
legislation. These batteries typically weigh from hundreds to
thousands of pounds (though some may be very small as well), and
the economic value of their lead content has already created
incentive for the establishment of a strong recycling system,
according to industry sources. As a result, industry
representatives suggest that a separate mechanism, if any, should
be developed for these types of batteries. These batteries are
currently subject to the provisions of State laws which do not
have more specific definitions of lead-acid batteries.
3) Motorcycle and Marine Batteries
Finally, most State legislation has not specifically
addressed motorcycle and marine batteries. These types of
batteries have unique characteristics with respect to price as
well as distribution mechanisms. For example, consumers in one
State expressed concern that the price of a motorcycle battery is
less than the $10 deposit they are required to pay if they don't
return a used battery. Manufacturers distribute motorcycle
batteries to retailers and consumers via shipping companies, who
will not collect used batteries due to their potential hazard.
The motorcycle battery industry has suggested that mandatory take
back and deposit provisions should not apply to motorcycle
batteries because the batteries may not be collected via the same
mechanism by which they are distributed. Numerous marine battery
retailers also believe mandatory deposits are inappropriate since
most boats do not come equipped with batteries. As a result,
retailers must charge consumers a deposit for original equipment
batteries for which no trade-in battery is available.
35
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b. Authorized Facilities
According to many State laws, a used battery must be
delivered to a "collection or recycling facility authorized by
the Federal Environmental Protection Agency or the [State]
Department of Environmental Quality," among other specified
alternatives. This provision is somewhat vague, and in at least
one State, it has led to some confusion about the need to be
authorized to collect batteries. Some battery collectors in this
State were under the impression that they needed EPA or State
authorization to collect batteries.
EPA does not have a program to "authorize" such facilities.
State officials have interpreted "authorize" to mean registering
battery recyclers, which is likely to begin in Arizona and Rhode
Island this year. Registration of recyclers can help States to
track and assure the proper handling of used batteries.
3. Other Implementation Issues
a. Deposit Accounts
When Rhode Island's law became effective, many retailers
complained that requirements for establishing trust accounts with
the State for retaining battery deposits were too costly and
complicated. Rather than accept deposits from consumers, 10 to
15 percent of Rhode Island's battery retailers signed agreements
with the State consenting to not sell a battery unless an old one
is returned at the time of purchase. Rhode Island has also
relaxed the requirement and now allows retailers to keep separate
accounting records for deposits rather than establish trust
accounts with the State.
b. Dry Batteries
Because it is a series of islands over 3000 miles from the
mainland, Hawaii has some unique problems regarding lead-acid
battery recycling. Used batteries are very expensive to ship to
recycling facilities in the U.S or the Far East because of their
weight. Since sulfuric acid makes up roughly 25 to 33 percent of
the weight of batteries, some battery collectors in Hawaii are
inclined to drain the batteries as a means of reducing shipping
costs. Uncontrolled draining of the acid is an environmental
hazard, and State officials considered adding provisions to their
regulations to eliminate this practice. However, before
regulations were promulgated, wholesalers and battery collectors
agreed to cease the practice.
36
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B. RETAILER COMPLIANCE
Compliance with requirements is a common method of measuring
the effectiveness of legislation or regulations. Two basic
compliance issues at stake in the States' battery recycling
legislation are whether retailers are accepting batteries from
consumers and whether manufacturers/wholesalers are accepting
batteries from retailers.
Apart from Rhode Island, States have not collected
quantitative data which can measure the extent of retailer and
manufacturer/wholesaler compliance with battery recycling
legislation. However, other indicators, such as consumer
complaints and data from informal retailer surveys conducted by
six States, in addition to Rhode Island's data, are presented in
this section to provide some information regarding retailers'
compliance.
1. Rhode Island
As mentioned previously, Rhode Island's reporting
requirements actively encourage retailers' and manufacturers'
overall compliance with the recycling law. Data initially
collected after the first year of implementation of the State's
legislation revealed contradictions in the numbers of batteries
reportedly collected by manufacturers/wholesalers and retailers,
and the State has had to contact several businesses to resolve
inconsistencies. A final report is expected in the fall of 1991,
but interim data suggest that the recycling rate for 1990 is well
over 95 percent and could be greater than 100 percent due to the
return of used batteries that have been kept in storage. This
recycling rate is much higher than that estimated for previous
years, and suggests that not only are more batteries being
returned to the recycling chain, but that retailers and
manufacturers are also successfully participating in assisting
the flow of batteries through the chain.
2. Consumer Complaints/Enforcement
When take back requirements initially became effective,
several States received a small number of complaints from
consumers about retailers refusing to accept used batteries. In
most cases, the non-compliance was a result of the retailers'
ignorance of the laws rather than willful non-compliance. Most
of these complaints were resolved by telephone or, in a few
cases, by a visit to the retailer.
Most phone inquiries received by the States from consumers
were for clarification of the battery recycling laws. Generally,
consumers had three main concerns:
• They wanted to verify that retailers had a
37
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right to charge a deposit if they didn't
return their batteries;
• Some mistakenly believed they were required
to return a battery when they bought a new
one ;
• Others didn't want to pay a deposit for
original equipment batteries.
As the public and retailers have become more familiar with
the legislation, complaints and inquiries have tapered off
considerably. Less than 30 complaints against retailers have
been received among the 12 States that contributed information
regarding complaints.
Posting notices for consumers is an additional requirement
with which retailers must comply, but there are no data available
which can measure compliance with it. Only comments from two
sources were obtained: State officials in Minnesota who
regularly inspect retail stores have noted no apparent problems
concerning a lack of signs; and one retail chain serving the
Midwest explained that it posts signs describing its recycling
policy regardless of whether the States have recycling
requirements.
States have not taken any formal enforcement actions for
noncompliance with any requirements of the lead-acid battery
recycling legislation. Rhode Island sent one informal warning
notice of violation to a recalcitrant retailer, and Minnesota
pursued an action against a retailer for violation of hazardous
waste storage requirements. States have not generally monitored
disposal facilities for illegal disposal of batteries.
3. Retailer Survey
To get some indication of whether retailers are in fact
accepting used batteries from consumers, six States (California,
Florida, Maine, Maryland, Minnesota, and Wyoming) conducted
informal surveys of retailers regarding their recycling
practices. Of these States, California, Florida, and Wyoming
have take back requirements without a mandatory deposit; Maine
and Minnesota laws include a mandatory deposit; and Maryland has
no lead-acid battery legislation in effect at this time.
It is important to note that none of the -surveys conducted
by the States is statistically valid. The States collected the
information only to get an impression of how widely information
about recycling has been disseminated. The complete analysis
conducted by Minnesota is included in Appendix D, and summary
statistics of the all the States' surveys are in Figure 7.
38
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a. Take Back Requirements
Results from all of these States indicate that retailers are
accepting used batteries for recycling. Of the retailers
contacted by State officials, 95 percent were willing to accept a
used battery from a customer at the point of purchase of a new
one.
b. Deposits
In States where no deposit was required, an average of 65
percent of the retailers offered a discount on the price of a
battery if an old one was returned in exchange (i.e., retailers
voluntarily applied a core charge or deposit if an old battery
was not returned). Discount or deposits ranged between 50 cents
and $10. In Maine, where a $10 deposit is required, 97 percent
of the retailers were aware of the law and required customers to
pay the deposit. In Minnesota, where a $5 deposit is required,
67 percent of the retailers complied with the requirement. In
Minnesota, reasons for retailers' noncompliance with the deposit
requirement ranged from lack of awareness of the law to not
wanting to discourage customers from purchasing a battery by
requiring a deposit.
c. Accepting Additional Batteries
In States which do not have provisions requiring retailers
to accept additional batteries, an average of 62 percent agreed
to accept an additional battery regardless of whether a new one
was sold. Out of this group, only 19 percent offered any money
for the used batteries, payment ranging from 50 cents to five
dollars. A few retailers charged customers for accepting their
additional batteries. In Minnesota, where retailers are required
to accept up to five additional batteries, 82 percent of the
retailers were willing to accept batteries without a customer's
purchase.
d. Urban/Rural Differences
1) Minnesota Survey
The survey conducted by Minnesota was the only one which
could provide any comparative information regarding urban/rural
differences. In this State, although 67 percent of the retailers
overall complied with the mandatory deposit requirement, 78
percent of the retailers in the Twin Cities metropolitan area
were in compliance while 60 percent of the retailers in other
parts of the State were in compliance. Among all the States that
provided data, urban retailers generally were more inclined to
charge a deposit or provide a discount than small towns or rural
areas.
40
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Minnesota's data reveals another urban/rural dichotomy
regarding retailers' acceptance of additional batteries. While
82 percent of the retailers throughout the State were willing to
accept batteries without a customer's purchase, 93 percent of the
retailers in the metropolitan area were willing to accept
additional batteries while only 75 percent in other parts of the
State were willing to comply. Results of the Florida survey also
suggest that urban retailers are significantly more likely to
accept additional batteries than those in towns and rural areas.
2) BCI Consumer Survey
The BCI consumer survey also indicates certain dichotomies
between rural and urban consumer awareness of lead-acid battery
recyclability and recycling practices.16 Inhabitants of small
towns and rural areas are significantly more aware that batteries
are recyclable (69 percent) than are urban and sub-urban
residents (56 percent). In seeming contrast, of those surveyed
who keep old batteries at home, 23 percent live in small towns
and rural areas, while only 17 percent live in urban and sub-
urban settings.
The BCI consumer survey does not attempt to explain the
apparent contradiction between urban and rural populations
regarding the extent of their awareness versus their recycling
practices. However, although the States' surveys are not
statistically valid, their observation of less retailer
participation in rural areas may help explain why battery
recycling rates among consumers are lower in rural areas than in
urban areas in spite of rural residents' greater awareness.
Reasons for less retailer participation in rural areas are not
addressed here, though Minnesota's report offers some possible
explanations.
e. Chain Versus Independent Stores
Data were inadequate to allow comparison between the
responses of chain store operators and independent retailers.
However, almost all independent retailers were willing to accept
a used battery at the point of purchase of a new one. The
percentage of independent retailers who charged a deposit or
offered a discount with the exchange of an old battery ranged
from 58 to 88 percent.
16Peter D. Hart Research Associates, 1990.
41
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C. CONSUMER PARTICIPATION
Public participation is another important indicator of the
success of legislation intended to influence public behavior.
Encouraging consumers to return their old batteries to retailers
when they purchase new ones is a basic tenet of the States' laws,
but data regarding whether consumers are participating in this
fashion are sparse. A few retailers commented during the
informal State surveys that they were receiving more batteries
from consumers than in the past, while others noted no
differences in the number of batteries they receive.
A broader goal of the battery recycling laws is to encourage
consumer lead-acid battery recycling by any means. This includes
encouraging consumers to return any old batteries they have to
retailers or to bring them to publicly or privately operated
recycling programs. Data and several anecdotes presented here
indicate that consumers have increased their participation in
recycling, although reasons for their increased participation are
not clear and will be discussed in a following section.
Because consumers were not interviewed regarding changes in
their recycling practices, measurements of their participation in
battery recycling are indirect. Information was collected on the
appearance of batteries in the municipal solid waste stream and
the activity of municipal solid and/or local hazardous household
waste recycling programs.
1. Fewer Batteries Appear in the Waste Stream
As noted previously, very little data exist regarding the
number of batteries that enter the municipal solid waste stream.
The few studies conducted indicate the relative absence of
batteries in the waste stream but do not measure changes in
battery deposition over time. However, information from several
sources suggest that consumers are changing their disposal
patterns in favor of lead-acid battery recycling.
In Seattle, annual waste composition sorts of solid waste
collection trucks conducted by the Seattle Solid Waste Utility
show a large reduction in the numbers of batteries that have
entered the waste stream during the last three years.17 This
reduction coincides with the implementation of the State's
battery recycling legislation and may account for some of the
shift in consumer behavior.
"Axelrod, Shirley, Seattle Solid Waste Public Utility.
Personal Communication, 1991.
42
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Anecdotal evidence from Florida also suggests that fewer
batteries than in previous years are entering landfills. Florida
has made a strong commitment to recycling, and its counties are
actively promoting recycling of many materials. At least two
counties, Palm Beach County and Broward County, have had battery
collection facilities established at their waste disposal sites
since mid-1990. Both counties have noted decreases in the amount
of batteries appearing in the municipal solid waste received at
their landfills.
2. Shifts in Consumer Recycling Practices
Battery collection rates in Lane County, Oregon demonstrate
that consumers have changed their battery recycling/disposal
practices over time.18 From 1989 to 1990 Lane County reported a
dramatic increase in its collection of recyclable materials at
its recyclable materials collection site. Recycling of lead-acid
batteries has also been successful, yet the county reported a
decrease in its collection of batteries during the last three
years: 4807 in 1988, 4720 in 1989, and 4250 in 1990. Due to the
county's high overall recycling rate, officials have no reason to
suspect that battery recycling is declining. Rather, they
suggest that Oregon's battery disposal ban and battery take back
requirements, which went into effect January 1, 1990, may account
for this some of this decrease, as consumers return their
batteries to retailers rather than dispose of them or take them
to recycling centers.
Evidence from California suggests that battery recycling is
increasing in that State as well. Two waste management programs
(in Sacramento and in San Francisco) which operate recyclable
material collection programs have noted significant increases in
the recycling rates of lead-acid batteries in the last three
years. However, no information was available about how many
batteries were being found in the waste stream.19
18Sanduski, Ken. Lane County Waste Mangement Division,
Oregon. Personal communication, 1991.
19Unless specific waste composition studies are conducted, it
is unclear whether batteries can even be located among the tons
of municipal solid waste that are disposed daily. According to
various municipal solid waste managers, identification of
automotive batteries in the waste stream is relatively easy.
Gate operators at many disposal sites are trained to identify
"suspicious" truck loads of waste and look for materials
prohibited from land disposal. "Pickers," who direct haulers
where to dump their loads in a landfill, are also trained to spot
specific items in the waste. Not all waste is inspected, but
spot checks are performed to assure compliance with disposal
regulations. Similar activity takes place at incinerators. For
43
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D. PERSPECTIVES OF MEMBERS OF THE RECYCLING CHAIN
Willing acceptance of the legislation may also provide an
indication of the potential success of the State lead-acid
battery recycling laws. This section describes some of attitudes
toward the State battery recycling laws that were expressed by
certain components of the recycling chain during this study
and/or how they have been affected by the legislation.
1. Retailers
Retailers have generally voiced strong support for the take
back requirements, including the mandatory deposit. One
manufacturer was very surprised by the level of enthusiasm
expressed by the retailers to whom it distributed batteries.
Retailers have been able to receive extra income by accepting
batteries, and initial fears of one retail chain that consumers
would balk at having to pay a deposit did not materialize.
Although a few retail stores have had to make accommodations
to store used batteries, this seems to have been achieved
relatively painlessly, according to manufacturers. However, some
retailers who have received many batteries at a time have found
themselves subject to federal hazardous waste regulations for
storing large quantities of sulfuric acid contained in the
batteries. A couple of States also reported that a few retail
stores, especially those which sold marine batteries,
discontinued selling batteries rather than accept used ones.
2. Manufacturers
Manufacturers are generally in favor of States' efforts to
promote recycling. They have strongly advocated that increased
consumer awareness is crucial to the success of lead-acid battery
recycling. In general, they also supported mandatory take back
requirements for retailers and possibly for manufacturers.
Manufacturers initially expressed reluctance about instituting a
$5 deposit, but aside from alterations to some contracts with
their retailers, the deposit requirements have not had any
negative impact on manufacturers. Most manufacturers reported
that they have made very minor adjustments, if any, to their
recycling practices as a result of battery recycling legislation.
example, one waste-to-energy plant in Maine established a program
to pay "spotters" $10 for each automotive battery removed from
the waste. However, after three weeks the program was
discontinued because only two batteries had been found.
44
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Several manufacturers have operated voluntary recycling
programs with their retailers for many years, though within the
last two years, at least two of the largest manufacturers have
mounted aggressive campaigns to collect used batteries from
consumers.* Nationwide, they have arranged for their retailers
to pay consumers for used batteries regardless of whether they
purchase new ones. Retailers participating in these programs
throughout the country, in States with and without recycling
legislation, report enormous success at recovering orphan
batteries from consumers, which continue to be returned in a
steady stream in spite of the decreasing amount of cash offered
as lead prices have dropped. Because of their strong efforts to
recycle batteries voluntarily, manufacturers are uncertain about
the effect of State legislation on increasing the collection of
used batteries.
3. Scrap Dealers
In recent years, many scrap dealers have stopped handling
lead-acid batteries due to their concern about potential
Superfund (i.e., Comprehensive Environmental Response,
Compensations and Liability Act—CERCLA) liability in case a
secondary lead smelter to which they deliver batteries becomes a
Superfund hazardous waste site. Scrap dealers and battery
reclaimers also worry about their own liability for handling and
storing batteries, which may be regulated by State hazardous
waste management programs; and although many believe scrap
dealers speculatively accumulate batteries when the price of lead
is low, these liability concerns seem to generally inhibit such
activity.
Although many scrap dealers across the country refuse to
accept lead-acid batteries, the problem, according to industry
sources, may be most acute in less populated areas where battery
accumulation is slow and long-term storage may be of greater
concern. Some scrap dealers have had to change their storage
practices to comply with or avoid regulations. Many scrap
dealers who accept batteries now store them indoors for greater
protection, but space constraints often limit the number of
batteries they can accumulate.
As more batteries are collected by retailers and
manufacturers, fewer are available for scrap dealers or battery
haulers to collect. Some scrap dealers, who contributed
information through the Institute of Scrap Recycling Industries
(ISRI), claim their trade in batteries has been reduced by
anywhere from 15 to 75 percent, while others claim they have not
been affected at all. According to one smelter representative,
20Three manufacturers produce roughly two-thirds of all the
SLI batteries (i.e., automotive batteries) made in the U.S.
45
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S?*lSabli"hed recvclin9 mechanism (i.e., smelters receiving
batteries from scrap dealers and battery haulers) was virtually
destroyed by the aggressive collection campaigns of
manufacturers. Although the number of batteries they collect mav
continue to decline, scrap dealers may still be ablS to coUec?
recyclable roaterial collection
4. Smelters
The effect of State legislation on secondary lead smelters
H^11;. Smeltfrs do not distinguish among^he typefo?
? batteries they receive; they weigh the truckloads they
to calculate how much lead they have. Also because
SmKltSr Pr;ductfon was increasing even before any State
ion became effective, it is not possible to determine
whether it is the State laws or the high price of lead which led
to increased recycling. Secondary smelters have noted 5£t they
are receiving more batteries from manufacturers than in the past,
but it is unknown whether this is due to State legislation
requiring manufacturers to accept batteries from Retailers or to
the strong voluntary collection programs of manufacturers?
E. VALUE OF THE TAKE BACK AND DEPOSIT REQUIREMENTS
General consensus among members of the recyclina chain as
well as among State officials, is that mandatory tS2 back
requirements are an effective means of promoting lead-acid
battery recycling. By assuring retailers that they will have
used batteries collected (and even paid for) by
manufacturers/wholesalers, they have a greater incentive to
nJStntS3^ in US6d battery collection. With increased retailer
participation, consumers may conveniently return their batteries
to be recycled rather than throw them away or store them SrieS
indefinitely .
Th™,Jihe ValUS °^ tJ?e deP?sit requirement is more controversial.
Though an economic incentive for consumers to recycle seems to
make common sense, there is debate regarding its efficacy wSile
officials in Rhode Island attribute much of the increase in
£«£? recyclin? rates to the successful implementation of the
mandatory deposit requirement, Minnesota officials believe public
education is most important." Manufacturers are also not agreed
21The mandatory deposit requirement was instituted in
Minnesota a year after the take back requirement became
?hfSSo1Ve^ data haVS yet been collected to determine whether
the deposit requirement has had a greater impact on the lead acid
battery recycling rate than other requirements.
46
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as to whether a deposit makes a difference. One suggested that
the deposit did not have a significant impact because Oregon and
Washington have comparable recycling rates even though Washington
has a deposit requirement and Oregon doesn't. Retailers also do
not seem to agree on the benefit of a deposit requirement
(apparent from their differing practices), although an article in
the discount Store News™ noticed that several retail chains
which had voluntarily established deposit requirements (before
State laws became effective) had much higher recycling rates than
those which did not. In spite of differing opinions of the
effectiveness of a deposit program for car batteries, no evidence
indicates that it results in any unreasonable inconvenience or
economic loss to consumers, retailers, or manufacturers.
F. IMPACT OF RECENT HIGH LEAD PRICES
Although battery recycling currently appears to be occurring
at a high rate, the information collected during this study
cannot establish that State legislation is responsible for
achieving or maintaining that rate. The appearance of fewer
batteries in the waste stream; increased consumer use of
recyclable material collection programs, and even increased
returns of batteries to retailers are not necessarily indicative
of the effectiveness of States laws. Other factors, primarily
high lead prices, may be contributing to the high rates of lead-
acid battery recycling.
As noted earlier, an EPA report showed that battery
recycling is correlated with lead prices. Lead prices were high
in the late 1980s, and battery collection mechanisms, in place
before any State legislation had been passed, were operating at
high capacity. The impact of high lead prices is exemplified by
the aggressive battery collection campaigns of battery
manufacturers in conjunction with retail chains.
While the price of lead was high, manufacturers and
retailers could afford to pay consumers high prices for their
used batteries. By offering as much as $2.50 for any used
battery regardless of whether a new one was being purchased,
retailers gave consumers a strong incentive to bring in all of
their old batteries, not only those used for trading-in when new
ones were purchased. Retail chains also profited by attracting
more consumers to their stores as well as improving their image
by providing a public service to the community. They had
enormous success in collecting batteries due to these cash
offers, even when the amounts offered decreased to $1.50 because
of falling lead prices. Since consumers responded so strongly to
22Halverson, Richard C. "State Recycling Laws Send
Shockwaves Out to Discounters," in Discount Store News. January
8, 1990.
47
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the cash incentives, the appearance of fewer batteries in the
waste stream or at recycling centers may be attributable to these
cash incentives rather than to States' legislative requirements.
As a result of high lead prices, manufacturers, retailers and
consumers have had incentives to participate in battery
recycling, which has further promoted compliance with State
requirements.
As lead prices decline, the amounts offered for used
batteries may decline, and this economic incentive to return old
batteries may diminish. When this occurs, the effectiveness of
State laws in maintaining a high rate of recycling may be more
directly measurable. It is also important to note that a large
number of batteries returned due to the cash offers are likely to
have been extra batteries that consumers have had in storage and
as a result, battery recycling rates during this period may have
been artificially high.
G. SPECULATION ON THE EFFECT OF LOW LEAD PRICES
The impact of low lead prices on the recycling chain in
places where legislation is in effect remains to be seen. The
strength of the State battery recycling laws in reinforcing the
recycling chain appears to be twofold:
• They encourage consumers to return used
batteries to the recycling chain (via take
back requirements and disposal prohibitions);
and
• They assure retailers that the batteries
which they accept will be collected by
manufacturers/wholesalers.
However, questions arise as to whether these reinforced
components can sustain price drops and whether other components
are still weak and will be adversely affected by price drops
This section briefly speculates on the effect of low lead prices
on the recycling chain.
1. Consumers and Retailers
If education, take back requirements, and disposal
prohibitions are effective in motivating consumers to recycle
consumer behavior should not be affected by a drop in the price
of lead. If consumer behavior is more dependent on financial
incentives, recycling would likely decrease as lead prices drop
and cash offers for batteries decline. In this case, the
mandatory deposit requirement may provide consumers with an
alternative economic incentive that could withstand a drop in the
price of lead.
48
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If manufacturers/wholesalers comply with the State laws,
retailers' participation in collection should remain unaffected
by a drop in the price of lead. Because they are assured that
the used batteries they receive from consumers will be accepted
when new batteries are received, retailers should not have to
change their collection activities when lead prices drop.
2. Scrap Dealers, Manufacturers, Secondary Smelters
Take back requirements do not assure that batteries
collected by recycling programs or autowreckers will reach
secondary smelters when lead prices are low. These
intermediaries rely principally on lead scrap dealers/battery
haulers to transfer batteries to secondary smelters. If scrap
dealers have no profitable market (i.e., secondary smelters) for
the batteries, they may be reluctant to collect them. This
situation could create battery disposal problems for autowreckers
and collection programs or result in battery accumulation until
lead prices increase. Although many of the batteries previously
collected by scrap dealers will go to manufacturers as State laws
take effect, free market factors, rather than State laws, dictate
the impact lead prices may have on the collection services
available to autowreckers and recycling programs.
If manufacturers do not comply with State requirements
(i.e., do not accept or collect batteries when retailers receive
new ones) when lead prices drop, retailers may also face disposal
problems. One secondary smelter representative voiced the
concern that retailers, especially those in rural areas, will
have a more difficult time finding someone to collect their
batteries if the price of lead falls. Manufacturer compliance
with the State laws is crucial if batteries are to continue to
progress through the recycling chain to secondary smelters. As
lead prices drop, closer monitoring of manufacturers may be
necessary to assure their compliance.
Even if manufacturers accept and collect all used batteries
from retailers, as prescribed by legislation, this does not
assure that batteries will be recycled domestically. As
previously discussed, low lead prices may encourage the export of
used batteries to foreign secondary smelters. An extended
depression in the price of lead could therefore result in U.S.
secondary smelters losing their sources of lead, which could
ultimately lead to a reduction in domestic secondary lead
production capacity.
49
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Additionally, though U.S. exposure to lead may be reduced by
the export of used batteries, this may not be true in other
countries. If there are less stringent environmental and work-
related regulations (or less stringent enforcement) in other
countries, then foreign secondary lead production could result in
greater overall threats to human health and the environment than
occur as a result of secondary lead production in the U.S.
50
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VI. CONCLUSIONS
This study was designed to address two important questions
regarding States' efforts to promote recycling through
legislation: How well is it working? Will it continue to work
if the price of lead drops? Given the limited data available and
the many factors, in addition to State legislation, that affect
recycling rates, neither question can be answered fully.
Consideration of the effectiveness of disposal prohibitions, take
back requirements, and deposit requirements must rely on States'
experience and other analyses of these and other options.
Currently, the battery collection mechanism apparently works
very well. The rate of battery recycling has been high, fewer
batteries seem to be appearing in landfills, and more are being
brought to recycling centers or retailers than in the past. The
high rate of battery recycling has led a number of States to
consider problems regarding the recycling of used oil and tires
to be a greater priority at the moment. Some smelters,
manufacturers, and retailers have even argued that the State laws
are redundant with a successful voluntary collection mechanism
that is already in place.
However, cause and effect cannot be established by the
correlation between high recycling rates and State legislation.
This study has only looked at a snapshot in time. State laws
have not been in place long enough to determine whether they can
ultimately be successful when the price of lead falls. Recently,
the price of lead has been dropping, though the decrease may be
part of a seasonal cycle exacerbated by a mild winter and a low
rate of new car sales. Battery sales have declined, and battery
manufacturers and some secondary smelters have reduced
production. As a result the domestic demand for lead has
decreased, and the low lead prices appear to be encouraging more
exports.
Some secondary smelters have argued that battery exports are
affecting their production, but a major primary lead smelter is
currently preparing to adapt its smelting processes to also
produce secondary lead. Representatives of this smelter do not
foresee that future exports of used batteries will negatively
affect secondary lead production in the U.S. Although State
legislation is not explicitly intended to assure domestic
secondary lead production, any options for a Federal role to
promote battery recycling may find it appropriate to consider the
environmental and economic benefits of domestic versus foreign
lead-acid battery recycling.
Continued monitoring of retailer and manufacturer compliance
would be very valuable in ascertaining the effectiveness of State
laws to promote recycling. Additional study of other recycling
51
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issues may also need to be conducted to assure that recycling
laws minimize human and environmental exposure to lead-acid
batteries. Some other areas for further consideration include:
• the future role of lead scrap dealers and battery
haulers if they remain significant components of
the recycling chain;
• the economic and environmental implications
of imports and exports of new and used
batteries for the U.S. and other parts of the
world; and
• the effect of a drop in the price of lead on
lead acid battery recycling under different
recycling program approaches.
52
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VII. APPENDICES
A. MASS BALANCE EQUATIONS
B. MINNESOTA RETAILER SURVEY
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A. Mass Balance Equations
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Mass Balance Equations
A common source of skepticism about recycling rates for lead
acid batteries is the use of mass balance calculations for their
computation, which may not accurately reflect the recycling rate
of car batteries that are the apparent focus of most States'
legislation.
Mass balance equations weigh the amount of lead consumed
over a certain time period against the amount of secondary lead
produced. The rate generated from a mass balance equation can
usually be adjusted to determine a recycling rate for old scrap,
which includes all types of lead-acid batteries (in addition to
car and other automotive batteries), and excludes the recycling
of new scrap. But because secondary smelters rarely distinguish
among their sources of old lead scrap, distinctions among types
of batteries being recycled is not possible.
The overall recycling rate for all types of lead-acid
batteries is often equated with the recycling rate for car and
other automotive batteries (which are also assumed to have the
same recycling rate), but the inclusion of industrial batteries,
which are virtually 100 percent recycled, results in a higher
overall lead-acid battery recycling rate being calculated than is
accurate for car batteries. However, when the overall recycling
rate of lead-acid batteries is high, the car battery recycling
rate is not dramatically altered by inclusion of industrial or
other battery categories. As the overall recycling rate drops,
the effect of industrial battery recycling on the car battery
recycling rate becomes more significant. The graph on the
following page illustrates the effect of a 100 percent recycling
rate for industrial batteries on the overall lead-acid battery
recycling rate. It assumes that industrial lead-acid batteries
make up 25 percent (by weight) of the total number of lead-acid
batteries available for recycling.
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Total Battery
Recycling Rate
Hypothetical Total And Automotive Recycling
Rates Compared Against A Constant
Industrial Battery Recycling Rate
Industrial Batteries Recycled
400 500 600
Battery Lead Recycled
(1000 metric tons)
Automotive Batteries Recycled
900
1000
Not Recycled
Assumptions: Industrial batteries make up 25 percent
of the battery lead available for recycling
Industrial batteries are 100 percent recycled
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Appendix B: Minnesota Retailer Survey
Submitted to the OPTS Docket as material for the
Regulation Negotiation Advisory Committee on
Lead Acid Battery Recycling Docket Number 61017
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Telephone Survey of Compliance with Minnesota Laws Regarding the
Sale and Recycling of Car Batteries
Prepared by
Minnesota Pollution Control Agency
Hazardous Waste Division
Glenn Skuta
February 15, 1991
INTRODUCTION
This nonscientific telephone survey was performed to determine
the level of compliance with Minnesota's laws regarding the sale
and recycling of car batteries. State law requires retailers who
sell car batteries to: 1) charge a $5 surcharge on each car
battery sold if the customer does not give the retailer a car
battery at the time of purchase (the customer has 30 days after
purchase to return a car battery to the retailer in order to
receive the $5 surcharge back); and 2) take up to five car
batteries from any individual, whether the individual is
purchasing a battery or not, free of charge. These two aspects
of the state battery laws were studied in this survey. There are
additional requirements in the laws regarding car batteries, but
these were not considered in this survey. The survey was
performed on retailers from five groups of cities' representing
different geographical locations and population sizes. A total
of 100 retailers were surveyed by telephone to determine the
level of compliance or noncompliance with the laws on car
batteries. This survey is not necessarily statistically correct.
PROCEDURE
Five groups of cities were selected based upon size and
geographic location. The five groups were: Twin Cities
(Minneapolis/St. Paul) urban, Twin Cities suburban, out-
state/large, rural/large, and rural/small. Twenty retailers from
each group were surveyed. In the Twin cities urban group, ten
retailers from Minneapolis and ten retailers from St. Paul were
surveyed. In the Twin Cities suburban group, twenty retailers
#rom twenty different cities surrounding the Twin Cities urban
area were surveyed. A little less than half of the population of
Minnesota is located in the Twin Cities metropolitan area (Twin
Cities urban and suburban)- In the out-state/large group, twenty
retailers from Minnesota's three large nonmetropolitan cities,
Duluth (8 retailers), Rochester (6 retailers), and St. Cloud (6
retailers), #ere surveyed. In the rural/large and rural/small
groups, twenty retailers from twenty different cities were
surveyed.
The three groups were designed to address differences in
population size and geographic location based on the assumption
that knowledge of and conformance with laws is directly
proportional to population size, proximity to regulators, and
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availability of information, based on these assumptions,
compliance was predicted to be highest in the metropolitan area,
followed by the out-state and rural groups. The rural/large and
rural/small groups were spread out across the entire state as
best as possible to cover much of the state. The rural/large
group is more concentrated in the southern part of the state
where population density is higher. The cities in this study
group have populations between 10,000 and 30,000 people. The
rural/small group is spread out throughout the state #t fairly
even intervals. The cities in this group have populations of
less than 10,000 people. The out-state/large group cities are
located in northeastern, central, and southeastern Minnesota,
fairly spread out geographically. The populations of the three
cities in this group are: Duluth 92,800 / Rochester 57,950 / and
St. Cloud 42,570. (Populations are from the 1980 census. See
enclosed maps for locations of retailers in each study group.)
Individual retailers were chosen from the telephone book and from
a list of retail outlets which accept used oil from do-it-
yourselfers maintained by the Minnesota Department of Public
Service, Weights and Measures Division. Retailers included
department stores, auto parts stores, service stations, and
supply companies. More chain-type auto parts stores and
department stores were surveyed in the larger cities because more
of them are present in the larger cities and most car batteries
are most likely sold by these stores in these areas.
The survey was conducted by telephone. The caller did not
identify himself in order to receive the normal response a
customer would receive #rom the retailer. The caller asked three
questions:
1. Do you sell car batteries?
2. Is there a deposit or surcharge on them?
3. Would you take an old car battery back from me even if
I was not purchasing?
It is not certain that the person responding was always also the
person that would actually sell the batteries. It is not certain
that the knowledge one store employee has is the same as the
knowledge of the rest of the employees regarding the battery
laws. It is also not certain that the number of retailers
surveyed was sufficient to eliminate these possible confounding
factors.
RESULTS/DATA
One hundred retailers were surveyed, twenty from each of the five
study groups, from a total of 65 cities and 42 counties from
across the state of Minnesota. If the retailer was applying the
law correctly, this was counted as a correct response. Some
retailers knew the law, but disregarded it - this was not counted
as a correct response. The total called number represents the
highest possible amount of correct responses per row per study
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group. The totals of correct responses for each study group are
given in Table I.
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TABLE 1: Correct Responses to Questions on Battery Law Compliance
Study Group Charge surcharge | Accept old batteries ! Total called
Twin Cities urban
Minneapolis
St. Paul
16
8
8
11
3
3
5
Twin Cities suburban 15
Out-state/large
Duluth
Rochester
St. Cloud
Rural/large
Rural/small
Metro Minnesota
Out-state Minnesota
Minnesota (entire state) 67
80%
80%
80%
75%
55%
38%
50%
83%
14
11
31
36
7
70%
55%
78#
60%
67%
17
8
9
16
5
5
6
85%
80#
90%
20 100%
80%
63%
83#
100%
15
14
37
45
82
75%
70%
93%
75%
82%
20
10
10
20
20
8
6
6
20
20
40
60
100
DISCUSSION
Knowledge of the law varied from complete understanding to complete
ignorance. Reasons for noncompliance varied. Some reasons included
ignorance of the law, intentional violation of the law for economic
benefit (charging to take batteries back or not charging the surcharge
to increase business), and misunderstanding of the law. Violations of
the law included: charging to take batteries back, refusing to take
batteries back, taking fewer than five batteries back, charging a
surcharge less than $5, and not charging a surcharge. Some retailers
charged a surcharge greater than $5, which was counted as being in
compliance with state law.
In all cases, the number of retailers who would take car batteries
back for free from nonpurchasers was always higher than the number who
would charge the surcharge on the batteries. This is probably
attributable to the fact that a retailer can usually make money off
the old car batteries. However, charging the $5 surcharge may cost
the retailer business, while not charging the surcharge may gain the
retailer some business.
Compliance with the law was higher in the metropolitan area than in
the out-state areas. This may be attributable to the accessibility of
information, presence of regulators, and/or higher density of the
larger chain-type stores in the metropolitan area. The chain store
suggestion is not necessarily correct. The data shows that the
percentages of chain stores surveyed in both the out-state/large group
and the rural/small group were very different, while the level of
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compliance between the two groups was equal for the surcharge
provision and similar #or the take-back provision. The number of
chain stores surveyed in the Twin Cities urban was greater than the
number of chain stores surveyed in the Twin Cities suburban area, yet
the compliance rate of the urban group was lower than the suburban
group for the take back provision and only slightly higher for the
surcharge provision. This data indicates that chain stores do not
necessarily maintain a similar rate of compliance. Thus, the amounts
and percentages of chain stores sampled per study group should not
have skewed the results.
From speaking with individual retailers, there seemed to be a greater
ignorance of the law in out-state Minnesota, as well as a greater
disregard for the law when it was known. Many retailers encouraged
the return of the old car battery, but still would not charge the
surcharge if an old battery was not brought in. It would seem that
these factors account for the lower rate of compliance in out-state
Minnesota.
CONCLUSIONS
Overall, the compliance rates found by this study seem to indicate
that there is a fairly high rate of compliance with Minnesota law
regarding car battery retailer responsibility. The law is less than
t#o years old, so there may be some lack of compliance with it due to
the possibility that some retailers have not yet been informed of the
laws requirements. The fact that two-thirds of the retailers surveyed
charge the surcharge and more than four-fifths take batteries back
shows that retailers are generally aware of the law and are generally
complying with it. It seems that there is a need to better educate
the out-state retailers as to the requirements of Minnesota's car
battery law.
The data shows that 82 percent of all the retailers surveyed take
batteries back from nonpurchasers. This does not translate into an 82
percent recycling rate. Different retailers have different volumes of
business, meaning that the amount of batteries sold and taken back
from the public per retailer will vary. For example, a large
department store will sell a considerably larger number of batteries
than a small service station. Still, the response of each of these
types of retailers is weighed equally in determining the percentages
of complying retailers. Data shows that 39 of the 44 large department
stores and chain-type auto parts stores surveyed accept batteries from
nonpurchasing customers. Since these retailers handle most of the
battery market, this data may indicate a higher recycling rate than
the overall data might imply. Also, almost every retailer surveyed
indicated that they would take back batteries from purchasing
customers. These batteries collected in this manner are not reflected
in this study. This is another factor that might indicate a higher
level of recycling than the data implies. The survey did not
determine whether or not retailers actually recycle the batteries they
collect. Disposal of batteries by retailers would lower the level of
recycling implied by the data.
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STREET MAPS
EZ19
-MINNEAPOLIS VICINITY MAP
Twin Cities Suburban
Area of Downtown
Detail Maps
g «l u MOMMONT .
milAHCHClNTIIll
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MPCA REGIONS
Northwest
Region
Out-state/Large
Compliance Unit 1-Northwest & North Central Regions
Compliance Unit 2-Soutnwest & Southeast Regions
Compliance Unit ^-Northeast Region & Seven County Metre Area
Northeast
Region
North Central
Region
Seven County
Metro Area
Southwest
Region
Southeast
Region
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MPCA REGIONS
Northwest
Region
Rural/Large
Compliance Unit 1-Northwest & North Central Regions
Compliance Unit 2-Southwest & Southeast Regions
Compliance Unit 3-Northeast Region & Seven County Metre Are;
Northeast
Region
North Central
Region
Seven County
Metro Area
Southwest
Region
Southeast
Region
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MPCA REGIONS
Northwest
Region
Rural/snail
Compliance Unit 1-Northwest & North Central Regions
Compliance Unit 2-Southwest & Southeast Regions
Compliance Unit 3-Northeast Region & Seven County Metre Are;
Northeast
Region
North Central
Region
Seven County
Metro Area
Southwest
Region
Southeast
Region
•SU.S. Government Printing Office : 1992 - 312-014/40053
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