BILL NUMBER: S1879

SPONSOR: O'MARA
 
TITLE OF BILL:

An act to amend the environmental conservation law, in relation to the
recycling of lead-acid batteries

 
PURPOSE OR GENERAL IDEA OF BILL:

To update the lead-acid battery recycling refundable incentive payment
to reflect current market conditions and to establish parity with the
overwhelming majority of states, including surrounding states.

 
SUMMARY OF SPECIFIC PROVISIONS:

Amends subdivision 5 of Section .F,C7-1701 of the Environmental Conser-
vation Law.

 
EXISTING LAW:
              

The Environmental Conservation Law requires retailers to collect a $5
return incentive payment upon purchase of a lead-acid battery which is
refunded upon the presentation of a used lead-acid battery.

 
JUSTIFICATION:

In 1990, New York was one of the first states to adopt a comprehensive
lead acid recycling program. The program and similar programs in other
states have proved to be extremely successful. Today, more than 99% of
lead is recycled, compared to 54% of aluminum drinking cans, 73% of
paper, 25% of glass bottles and 50% of tires. Then recycling program
incentivizes the return of used lead batteries, proper storage and
prohibits improper disposal.

The fully-refundable return incentive payment was set in 1990 at $5
(then the market price for a used lead-acid battery). Since that time
the commodity price for lead has risen and the incentive payment is no
longer consistent with market place rates or those in surrounding
states. Today, New York is one of only two states with a maximum incen-
tive payment of $5 with all other states having higher recycling incen-
tive payments. If not corrected, the low rate may discourage proper
recycling of lead acid batteries.

Many states chose not to set a cap on the refundable return incentive
payment which allows the payment to reflect market prices. For instance,
the surrounding states of Pennsylvania, New Jersey, Vermont and New
Hampshire all have no cap and the rates are substantially higher in
these states, including incentive payments as high as $18. The disparity
in rates encourages New York residents to obtain greater incentive
payments in surrounding states instead of utilizing New York retailers.
Updating the incentive payment to better reflect market prices will
encourage proper recycling of lead-acid batteries and place New York
retailers on equal footing with those in surrounding states.

 
PRIOR. LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

Revenue Neutral

 
EFFECTIVE DATE:
This act shall take effect thirty days after it has become law.