Senator McNerney's proposal for evaluating California's rare earth elements (REE) recycling capabilities directs the Department of Resources Recycling and Recovery to analyze the state's potential for establishing a domestic REE supply chain through recycling. The department must submit a comprehensive report by January 1, 2028, examining current collection methods, recycling technologies, and opportunities for stockpiling precious metals and critical minerals from recycled products.

The report will assess existing and emerging extraction technologies, map current in-state processing capabilities, and identify barriers to developing a robust REE recycling infrastructure in California. The department must engage diverse stakeholders, including researchers, manufacturers, environmental organizations, and the business community, to inform its analysis. The assessment will also examine potential state revenue from creating stockpiles of recycled materials for domestic green technology manufacturing.

The legislation responds to California's growing collection of electronic waste containing REEs, which are currently shipped overseas for processing despite their importance in green technologies like electric vehicles and solar panels. The bill's findings note that recycling could meet up to 40 percent of REE demand in the United States, China, and Europe by 2050, according to current research. The reporting requirements expire on January 1, 2032, allowing time for the legislature to consider permanent policies based on the department's findings.