Electric and Hybrid Vehicle Battery Management Act

New Jersey passed the Electric and Hybrid Vehicle Management Act (EHVM Act) on January 8, 2024. This extended producer responsibility (EPR) law imposes restrictions on propulsion battery collection and disposal starting on January 8, 2027. The legislation requires that propulsion battery manufacturers fund, develop, and implement a Battery Management Plan approved by the New Jersey Department of Environmental Protection (NJDEP) for the management and collection of used propulsion batteries. Propulsion batteries are defined under the law as “an electrical energy device, consisting of one or more individual battery modules or battery cells, which are used to supply power to propel an electric or hybrid road vehicle.” Propulsion batteries include, but are not limited to, lithium ion and nickel metal hydride batteries, removed from vehicles or still inside vehicles.

Who is subject to the Electric and Hybrid Vehicle Management Act?

Propulsion battery producers are to develop a Battery Management Plan, under which they are responsible for the collection and management of used batteries. Moreover, the EHVM Act grants specific authorization to certain individuals and entities to handle used propulsion batteries under the purview of a Battery Management Plan. These authorized parties include:

• Vehicle repair facilities
• Vehicle dismantlers
• Authorized propulsion battery recyclers
• Scrap yards
• Dealerships
• Showrooms
• Used car lots

What is required under the EVHM Act?

The primary focus of the EHVM Act is to establish the requirements for a Battery Management Plan. Under the EHVM Act, a Battery Management Plan shall include:

• Provision for producers to be responsible for the collection and management of the producer’s used propulsion batteries that are offered to the producer for take-back by the current battery owner.
• A complete vehicle take-back program, battery take-back program, or any other such program approved by NJDEP.
• Methods to accept and transport used propulsion batteries and electric/hybrid vehicles (EV) to the producer (or the designated entity, based on the Battery Management Plan), including the roles of vehicle recyclers, collection services, and battery recyclers.
• Processes and methods used to remanufacture, repurpose, or recycle end-of-life (EOL) propulsion batteries.
• Strategy for informing EV owners, vehicle repair facilities, and vehicle dismantlers in New Jersey about the requirement to properly manage propulsion batteries and the environmental impact of not doing so.
• The means for implementing and financing the Battery Management Plan.

The EVHM Act also requires appropriate labeling of propulsion batteries in accordance with the requirements of NJDEP. Should the battery be remanufactured or repurposed, it must be relabeled pursuant to the standard of NJDEP prior to sale, importation, or distribution.

Who is responsible for End-of-Life management under the EVHM Act?

The EVHM Act targets EV manufacturers, mandating their accountability for EOL EV management. Specifically, they are tasked with ensuring proper disposal and management procedures.

However, in cases where a secondary producer remanufactures a propulsion battery originally produced by another entity, the original producer is not automatically liable for EOL management unless a contractual agreement assigns such responsibility.

Disposal restrictions apply to any person disposing of a propulsion battery, and acceptance restrictions apply to solid waste collectors and facilities. Commending January 2027, no person shall dispose of a propulsion battery as solid waste unless authorized by NJDEP to do so. Solid waste collectors and facilities shall not knowingly accept propulsion batteries for disposal unless authorized by NJDEP to do so.

What should you prepare for as a battery producer?

Effective date (January 8, 2024): New Jersey Governor Phil Murphy signed into law the EVHM Act with immediate effect.

Within 6 months of effective date (July 8, 2024): NJDEP will perform a needs assessment to determine the availability of authorized recyclers and related infrastructure needed to implement the EVHM Act.

January 8, 2025: EV and propulsion battery producers are required to register with NJDEP.

Within 18 months of effective date (July 8, 2025): NJDEP will publish the needs assessment to their website.

January 8, 2026: EV and propulsion battery producers are required to submit an inventory of batteries for sale or distributed in New Jersey.

January 8, 2027: Regulations within the EVHM Act commence, including labeling and disposal restrictions.

180 days after adoption of the EVHM Act (July 7, 2027): Propulsion battery producers are required to submit a Battery Management Plan, including collection, distribution, and EOL management elements.

One year after Battery Management Plan submission: NJDEP shall approve (in part) or disapprove Battery Management Plans.

If approved: Plan must be implemented within 90 days of receipt of approval.

If partially approved: Approved portions of the plan must be implemented within 90 days of receipt of approval. Revisions to non-approved portions must be submitted within 30 days of receipt of non-approval.

If disapproved: Producer has 30 days to submit a revised Battery Management Plan.

What are future potential regulatory actions?

The EVHM Act, unique to New Jersey, serves as a pioneering model for other states to emulate in addressing the challenges and opportunities surrounding propulsion batteries.

States with pending legislation for stewardship or EPR management include Alaska, California, Colorado, Hawaii, Massachusetts, Vermont, Washington, and Wisconsin. Given the increasing focus on sustainability and the proliferation of electric vehicles nationwide, propulsion battery and EV producers should remain vigilant in monitoring and adhering to the evolving battery legislation in their respective states.

How can ALL4 assist?                                

If you have questions regarding battery management, or you have other battery management needs, our battery team at ALL4 can assist. If you have any questions about this article, feel free to contact me at mfors@all4inc.com or at (502) 276-6771.