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SR 10-09-2018 3G City Council Report City Council Meeting: October 9, 2018 Agenda Item: 3.G 1 of 5 To: Mayor and City Council From: Susan Cline, Director, Public Works, Office of Sustainability & the Environment Subject: Accept $50,000 Grant from CalRecycle to Implement Solar Recycling Program Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to accept a grant awarded in the amount of $50,000 from the California Department of Resources Recycling and Recovery (CalRecycle) for the design of a solar panel recycling pilot for the Public Works Department and to accept all grant renewals. 2. Authorize the City Manager to execute all necessary documents to accept the grant and all grant renewals. 3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report. Summary Solar photovoltaic (PV) panels are categorized as hazardous waste by the California Department of Toxic Substances Control. Therefore, cities must consider how PV panels should be processed when they reach the end of their life cycle with effective demolition, dismantling, removal, disposal and/or recycling of the different components in an environmentally responsible manner. The City of Santa Monica was awarded $50,000 in funding by the Household Hazardous Waste Grant Program of the California Department of Resources Recycling and Recovery (CalRecycle) on June 27, 2018 for the design of a solar panel recycling pilot. Staff would use the funds to develop a pilot project to determine the most sustainable best management practices for dealing with PV panels at the end of their useful life. Staff would also hold at least one PV panel collection event at a City facility. Discussion 2 of 5 As of April 1, 2018, there are 851 solar installations on public and private property with a total capacity of about 6.2 megawatts, equating to approximately 20,800 panels in Santa Monica. About 4,000 of these panels were installed over 10 years ago. Although PV panels are supposed to last 25 or more years, there may be PV panel waste from early module failure, extreme weather events, or replacement due to upgrading PV technology. PV panel composition typically consists of glass, aluminum, copper, and semiconductor materials that can be successfully recovered. By weight, more than 80 percent of what goes into PV panels is glass and aluminum – both common and easy-to-recycle materials, once they are separated. Glass, aluminum, and other metals can be melted down and turned into a variety of new products. Semiconductors can also be reused in new PV panels. Dumping panels in the landfill is wasteful at best and hazardous at worst. PV panels are currently categorized by the State of California as hazardous waste because they may contain small amounts of heavy metals that at certain quantities may be classified as hazardous waste. The Department of Toxic Substances Control is anticipated to re- classify solar panels from hazardous waste to universal waste in 2018. Waste is classified as universal when it is generated in a wide variety of settings (not solely industrial), generated by a vast community, and present in significant volumes in nonhazardous management systems. The benefits of having PV panels classified as universal waste is a reduction in regulatory burdens by allowing longer storage and reduced recordkeeping. The $50,000 grant will completely fund the pilot project, and there is no financial impact to the City of Santa Monica by accepting the grant. The grant does not require a match of city funds or in-kind commitments. OSE planned for this pilot project in its annual work plan and will support it using existing resources. W ith the grant funds, staff would determine the best management practices for collecting, identifying, and recycling PV panels in the most sustainable and cost-effective manner. The information collected 3 of 5 throughout the grant period and at the collection event would help the City establish a baseline and recommendations for long-term solar PV panel recycling programs. This project will have four main objectives: 1. To identify a PV recycling facility to take the panels and estimate the cost of transportation and processing. 2. Develop public media and outreach materials for homeowners and PV installers and make calls to estimate how many PV panels are stored and in need of recycling. 3. Set up and hold up to 2 one-day PV collection events at a City facility. 4. Conduct Pre- and Post-Project Surveys of PV installers and homeowners (if possible) to inquire about the PV panel removal and storage pr ior to collection for recycling. What is expected from the City: 1. Review and approve outreach materials prior to submission to CalRecycle for review and approval for dissemination. 2. Participate in up to four meetings to discuss project plans, updates, and brainstorming for a solar panel pilot project. 3. Provide staff labor for up to two solar panel collection events. 4. Submit reimbursement forms to CalRecycle via online system. 5. Submit two progress reports and one final report to CalRecycle via online system. The PV collection event will be similar to an e-waste or paper shredding event where homeowners are invited to bring their goods to City Yards to be recycled. The homeowners (or more likely the solar company they hire to remove/replace their PV system) will bring the decommissioned PV panels to a City facility. They will unload the panels from their vehicle and stack them on a standard wooden pallet. 4 of 5 After the collection event(s), a recycling company will pick up and transport the panels to a facility for processing and recycling. The grant allocates $20,000 to cover the costs of transportation and recycling. Once the cost of pickup and processing is determined, the quantity of panels collected will be capped to avoid exceeding the budget. Upon completion of the Pilot, the City is not obligated to form a permanent PV recycling program. However, the Pilot should uncover the costs associated with running a permanent program, and the City can re-evaluate its commitment at that time. Past Council Actions 08/08/2017 (Attachment A) Council passed a resolution authorizing submittal of applications for all CalRecycle grants for which the City of Santa Monica is eligible and further authorizing the City Manager to execute all related grant documents for five years. Financial Impacts and Budget Actions Staff seeks authority to accept a grant from CalRecycle and appropriate funds. FY 2018-19 Grant Budget Changes Establish Revenue Budget Appropriate Funds Account Number(s) Amount Account Number(s) Amount 20500010.405390 $50,000 20500010.555920 $50,000 Total $50,000 Total $50,000 If renewals are awarded, budget changes will be included in subsequent year budgets, contingent on Council budget approval. 5 of 5 Prepared By: Drew Lowell, Sustainability Analyst Approved Forwarded to Council Attachments: A. August 8, 2017 Staff Report (Weblink)