Electronics Recycling Systems and Electronics Recycling Systems and PoliciesPolicies

Waste ExpoWaste ExpoApril 5, 2006April 5, 2006

Jason LinnellJason LinnellExecutive Director Executive Director

National Center for Electronics RecyclingNational Center for Electronics Recycling

Presentation OverviewPresentation Overview

• National Center for Electronics National Center for Electronics RecyclingRecycling

• Enacted State LegislationEnacted State Legislation– California, Maine, MarylandCalifornia, Maine, Maryland

• Proposed State Legislation 2006Proposed State Legislation 2006– Trends from 2005Trends from 2005

• Federal Legislative ActivityFederal Legislative Activity

• OutlookOutlook

National Center for Electronics National Center for Electronics Recycling Recycling

• Mission: coordinate initiatives targeting Mission: coordinate initiatives targeting the recycling of end-of-life electronics in the recycling of end-of-life electronics in the United States and support actions to the United States and support actions to move towards a national systemmove towards a national system

• In Polymer Technology Park in Davisville, In Polymer Technology Park in Davisville, WV WV

• Incorporated as non-profit in WV, 501(c)(3) Incorporated as non-profit in WV, 501(c)(3) • Manufacturer-led organization – leading Manufacturer-led organization – leading

companies on environmental initiatives on companies on environmental initiatives on Advisory CommitteeAdvisory Committee– Manufacturers, approve projectsManufacturers, approve projects– Multi-stakeholder project committeesMulti-stakeholder project committees

Enacted State LegislationEnacted State Legislation

CaliforniaCalifornia• Two bills vetoed in 2002 – ARF of $15Two bills vetoed in 2002 – ARF of $15

• SB 20 adopted 2003/Amended 2004 by SB 50SB 20 adopted 2003/Amended 2004 by SB 50

• 2005 – legislative changes for lease sales2005 – legislative changes for lease sales

• Point of sale fee on certain video display Point of sale fee on certain video display devices with screens > 4” diagonaldevices with screens > 4” diagonal

• Effective January 1, 2005 on covered Effective January 1, 2005 on covered electronic devices (CEDs) designated by DTSCelectronic devices (CEDs) designated by DTSC– CRT devices (TVs & monitors)CRT devices (TVs & monitors)– LCD devices (laptops and monitors)LCD devices (laptops and monitors)– LCD and Plasma TVs added July 1, 2005LCD and Plasma TVs added July 1, 2005

SB 20/50 - ImplementationSB 20/50 - Implementation• Collection and Recycling PaymentsCollection and Recycling Payments

– Authorized collector - $0.20/lbAuthorized collector - $0.20/lb– Authorized recycler - $0.28/lbAuthorized recycler - $0.28/lb

• Payments only authorized for covered Payments only authorized for covered devices collected on or after 1/1/05 from devices collected on or after 1/1/05 from CA sources (defined as users of the device CA sources (defined as users of the device in CA)in CA)

• ““Cancellation” activities (crushing, Cancellation” activities (crushing, shredding, dismantling) must occur within shredding, dismantling) must occur within CACA

SB 20/50 – Operations to SB 20/50 – Operations to DateDate

• Approved Collectors: 384Approved Collectors: 384

• Approved Recyclers: 45 (some dual collectors)Approved Recyclers: 45 (some dual collectors)

• 2005: BOE collected million $60 million2005: BOE collected million $60 million– At start, some problems with payment claims (missing info, not At start, some problems with payment claims (missing info, not

CA sources, not properly documented, etc.)CA sources, not properly documented, etc.)

• 225 claims submitted for payment: $31.1M – 64.8M 225 claims submitted for payment: $31.1M – 64.8M pounds of covered electronic wastepounds of covered electronic waste

• Claims approved for payment: $19.1M – 39.8M Claims approved for payment: $19.1M – 39.8M poundspounds

• Claims still under review: $10.4MClaims still under review: $10.4M

• 93% of the dollars claimed has been approved for 93% of the dollars claimed has been approved for paymentpayment

SB 20/50 – Regulations SB 20/50 – Regulations UpdateUpdate• Emergency regulations were adopted in Emergency regulations were adopted in

December 2004 specifying requirements for December 2004 specifying requirements for the payment systemthe payment system

• Permanent regulations will be enacted Permanent regulations will be enacted before December 2006before December 2006

• Emergency regulations revised in Dec 2005 Emergency regulations revised in Dec 2005 to allow for “anonymous source” material to allow for “anonymous source” material and change “agent designation for local and change “agent designation for local govtsgovts

• CIWMB and DTSC now working on final CIWMB and DTSC now working on final regulations – may be significant changes to regulations – may be significant changes to – Draft regs published Feb 1, workshop heldDraft regs published Feb 1, workshop held

MaineMaine• Passed in 2004: covers TVs and computer monitors Passed in 2004: covers TVs and computer monitors

(includes laptops) from Maine households(includes laptops) from Maine households– Desktops only covered by brand labeling requirementDesktops only covered by brand labeling requirement

• Municipalities collect from household, send/contract Municipalities collect from household, send/contract to consolidation facilities.to consolidation facilities.

• Consolidators conduct brand count, follow ESM Consolidators conduct brand count, follow ESM guidelines for recycling, bill manufacturers based on guidelines for recycling, bill manufacturers based on actual count + orphan shareactual count + orphan share

• Manufacturers submit compliance plans, file reports, Manufacturers submit compliance plans, file reports, pay invoices from all consolidators for “allowable pay invoices from all consolidators for “allowable costs”costs”

Maine Shared Responsibility Maine Shared Responsibility LawLaw• Orphans: “Covered electronic device, the Orphans: “Covered electronic device, the

manufacturers of which cannot be identified manufacturers of which cannot be identified or is no longer in business and has no or is no longer in business and has no successor in interest”successor in interest”

• DEP has to identify manufacturer pro rata DEP has to identify manufacturer pro rata “orphan share”, provide to consolidators“orphan share”, provide to consolidators

• According to NCER Estimates*:According to NCER Estimates*:– Laptops - 65 brands Laptops - 65 brands – Monitors - 674 brands Monitors - 674 brands – TVs – 436 brandsTVs – 436 brands– Desktops – 682 brandsDesktops – 682 brands

• *See: *See: http://www.electronicsrecycling.org/cdr/BrandSorting.aspxhttp://www.electronicsrecycling.org/cdr/BrandSorting.aspx

Maine Shared Responsibility Maine Shared Responsibility LawLaw• Finding Orphans:Finding Orphans:

– Look at Brands from limited brand sort studiesLook at Brands from limited brand sort studies– Research company/brand history, some public directoriesResearch company/brand history, some public directories– Send compliance letter to manufacturer addressSend compliance letter to manufacturer address

• Orphan ShareOrphan Share– All brands claimed and likely responsible manufacturers All brands claimed and likely responsible manufacturers

on a “non-orphan” list, separate “orphan” liston a “non-orphan” list, separate “orphan” list• So far, orphans determined to be 5% TVs, 11.5% monitorsSo far, orphans determined to be 5% TVs, 11.5% monitors

– Consolidator counts brands as received, keeps total of Consolidator counts brands as received, keeps total of orphansorphans

– Bills manufacturer for count of responsible brands + DEP Bills manufacturer for count of responsible brands + DEP determined share of orphans collected in that perioddetermined share of orphans collected in that period

– Example: OEM A has 20% orphan share; consolidator Example: OEM A has 20% orphan share; consolidator collects 1000 OEM A branded units and 100 total orphanscollects 1000 OEM A branded units and 100 total orphans• OEM A is bill for 1020 units at “reasonable cost” rateOEM A is bill for 1020 units at “reasonable cost” rate

Maine Shared Responsibility Maine Shared Responsibility LawLaw

Manufacturer ComplianceManufacturer Compliance• As of late February 2006, number of brands As of late February 2006, number of brands claimed represents:claimed represents:– 92% of TV return share92% of TV return share– 82% of computer monitor share82% of computer monitor share

• Law prohibits manufacturers and retailers Law prohibits manufacturers and retailers from selling televisions, computer monitors, from selling televisions, computer monitors, and CPUs produced by any manufacturer that and CPUs produced by any manufacturer that is not in compliance as of January 1, 2006.is not in compliance as of January 1, 2006.– Triple damages for non-compliant manufacturersTriple damages for non-compliant manufacturers

• Website lists compliant Website lists compliant brands/manufacturers, orphan brands, brands/manufacturers, orphan brands, approved consolidatorsapproved consolidators

Maine – Effective DatesMaine – Effective Dates

• Manufacturer responsibility as of 1/18/06Manufacturer responsibility as of 1/18/06

• CRT disposal ban in effect – July, 18 2006CRT disposal ban in effect – July, 18 2006

OTHER ISSUES:OTHER ISSUES:

• EnforcementEnforcement

• Return share vs market share; creation Return share vs market share; creation of new orphans?of new orphans?

Maryland Computer Recycling Maryland Computer Recycling LawLaw

• HB 575 passed in 2005HB 575 passed in 2005

• Creates a statewide computer recycling pilot Creates a statewide computer recycling pilot program for 5 yearsprogram for 5 years– Effective January 1, 2006, Ends 12/31/10Effective January 1, 2006, Ends 12/31/10

• Registration and fee required for manufacturers Registration and fee required for manufacturers of more than 1,000 computers per yearof more than 1,000 computers per year– 1000 can be sold anywhere, not just in MD1000 can be sold anywhere, not just in MD

• Computers defined as: “desktop personal Computers defined as: “desktop personal computer or laptop computer, including the computer or laptop computer, including the computer monitor“computer monitor“– Like CA/ME, covered products must be brand labeledLike CA/ME, covered products must be brand labeled

Maryland Recycling Law cont’dMaryland Recycling Law cont’d

• Initial Registration fee for all OEMs $5000, then:Initial Registration fee for all OEMs $5000, then:– $5,000 if manufacturer does NOT implement a $5,000 if manufacturer does NOT implement a

computer take-back program computer take-back program – $500 if manufacturer DOES implement a program$500 if manufacturer DOES implement a program

• Takeback program can be:Takeback program can be:– Provide consumer with no-cost return option, orProvide consumer with no-cost return option, or– Contract w recycler, local government, etc., orContract w recycler, local government, etc., or– Any other state-approved programAny other state-approved program

• Registration money into state recycling trust Registration money into state recycling trust fundfund– Used to provide collection/recycling grants to local Used to provide collection/recycling grants to local

governmentsgovernments

• Registered Manufacturers as of 3/28/06: Registered Manufacturers as of 3/28/06: – 34 Companies, or $170,00034 Companies, or $170,000

CRT Disposal BansCRT Disposal Bans

• In effect:In effect:– CaliforniaCalifornia– MassachusettsMassachusetts

• Effective July 2006 in MaineEffective July 2006 in Maine• Effective July 2006 in MinnesotaEffective July 2006 in Minnesota• Effective January 2008, Arkansas DEQ Effective January 2008, Arkansas DEQ

may implement rules banning all may implement rules banning all computer and electronic equipment computer and electronic equipment from landfillsfrom landfills

Proposed Legislation 2006Proposed Legislation 2006

Legislation in 2006Legislation in 2006• Around 20 states have introducedAround 20 states have introduced

– Not including carryoverNot including carryover

• Types of BillsTypes of Bills– Advanced recovery fees – at POS and Advanced recovery fees – at POS and

Manufacturer/first point of possessionManufacturer/first point of possession– Producer responsibilityProducer responsibility– Studies, commissions & task forcesStudies, commissions & task forces– Landfill &/or incineration bansLandfill &/or incineration bans– California amendments (product California amendments (product

scope)/Mainescope)/Maine

Washington Legislation Washington Legislation 20062006

• Signed by governor on 3/24/06Signed by governor on 3/24/06– Would be 4Would be 4thth major state electronics recycling major state electronics recycling

program program – Different than other 3 in significant waysDifferent than other 3 in significant ways

• Producer Responsibility with defaultProducer Responsibility with default– Manufacturer responsible for “equivalent share” Manufacturer responsible for “equivalent share”

either on own or pay into State TPOeither on own or pay into State TPO– No collection goal, but must meet your % at year’s No collection goal, but must meet your % at year’s

end or pay penalty (refund if collecting more than end or pay penalty (refund if collecting more than %)%)• Orphans must be calculated by DOEOrphans must be calculated by DOE

– Covers Covers CA/ME products + DesktopsCA/ME products + Desktops– Ban on exports to developing countries according Ban on exports to developing countries according

to Basel Conventionto Basel Convention [VETOED] [VETOED]– Programs must be effective Jan 2009Programs must be effective Jan 2009

Legislation in 2005Legislation in 2005• 50+ bills in 31 states50+ bills in 31 states• Types of bills:Types of bills:

– Advanced recovery feesAdvanced recovery fees– Producer responsibilityProducer responsibility– Tax incentivesTax incentives– Studies, commissions & task forcesStudies, commissions & task forces– Landfill &/or incineration bansLandfill &/or incineration bans– California/Maine amendmentsCalifornia/Maine amendments

• Bills passed in: AR, CA, MD, ME, MN, IL, NM, Bills passed in: AR, CA, MD, ME, MN, IL, NM, LALA– Mostly study committees, disposal bans/delays Mostly study committees, disposal bans/delays

(MN), changes to existing statute(MN), changes to existing statute– Only MD had financing mechanismOnly MD had financing mechanism

Regional Model Legislation Regional Model Legislation and Study Committeesand Study Committees

NERC/Council of State NERC/Council of State GovernmentsGovernments

• Northeast Recycling Council/Council Northeast Recycling Council/Council of State Governments Initiativeof State Governments Initiative

• 10 states looking to coordinate on 10 states looking to coordinate on regional electronics recyclingregional electronics recycling

• New England (including Maine), New New England (including Maine), New York, New Jersey, Pennsylvania, York, New Jersey, Pennsylvania, DelawareDelaware

NERC/Council of State NERC/Council of State GovernmentsGovernments

• StatusStatus– Last version released Sept 1Last version released Sept 1st; st; stakeholder stakeholder

comments/meetingscomments/meetings

– Revised financing language on Oct 28Revised financing language on Oct 28thth 2005 2005

• Current model:Current model:– Manufacturer fee into Corporation (TPO) Manufacturer fee into Corporation (TPO)

– TPO arranges for recycling systemTPO arranges for recycling system

– Covers broader range of products Covers broader range of products

• Combining with Region 5 effort?Combining with Region 5 effort?

Midwest Regional Electronic Midwest Regional Electronic Waste Recycling Policy Waste Recycling Policy

InitiativeInitiative• State agencies working together on regional model State agencies working together on regional model

similar to NERC/ERC:similar to NERC/ERC:– Minnesota, Michigan, Illinois, Wisconsin, Ohio, and IowaMinnesota, Michigan, Illinois, Wisconsin, Ohio, and Iowa

– Last version released Jan 20, 2006, comments until March Last version released Jan 20, 2006, comments until March 11; ;

• Current model:Current model:– Manufacturer wholesale fee into Corporation (TPO) Manufacturer wholesale fee into Corporation (TPO)

– TPO arranges for recycling systemTPO arranges for recycling system

– Covers broader range of products Covers broader range of products

• Combining with NERC/ERC effort?Combining with NERC/ERC effort?

Study CommitteesStudy Committees

• New bills in 2005 required study New bills in 2005 required study committees in:committees in:– IL, LA, NMIL, LA, NM

• Final report expected in MIFinal report expected in MI

• Importance: ME and MD had study Importance: ME and MD had study committee prior year to legislation committee prior year to legislation passagepassage

Federal Legislative ActivityFederal Legislative Activity

Congressional Hearings!Congressional Hearings!• 11stst time Congress has looked at electronics time Congress has looked at electronics

recycling in a hearingrecycling in a hearing• Earlier in 2005: E-Waste Working Group formed – Earlier in 2005: E-Waste Working Group formed –

four House Representativesfour House Representatives• Hearings – House Energy and Commerce Hearings – House Energy and Commerce

Subcommittee on Env and Haz MaterialsSubcommittee on Env and Haz Materials– July 20July 20thth – Govt only (including CA, ME, MD) – Govt only (including CA, ME, MD)– September 8September 8thth – Industry/NGO stakeholders – Industry/NGO stakeholders

• Hearing – Senate Env and Public Works Hearing – Senate Env and Public Works Subcommittee on Superfund and Waste MgmtSubcommittee on Superfund and Waste Mgmt– July 26July 26thth- Legislators, Govt, Other Stakeholders- Legislators, Govt, Other Stakeholders

• All documents on NCER website:All documents on NCER website:– http://http://

www.electronicsrecycling.org/NCER/ContentPage.aspx?Pagwww.electronicsrecycling.org/NCER/ContentPage.aspx?Pageideid=16&ParentID=3=16&ParentID=3

Conclusions/OutlookConclusions/Outlook• More to learn in 2006More to learn in 2006

– CA implementation will enter 2CA implementation will enter 2ndnd year year– Maine/Maryland begin implementationMaine/Maryland begin implementation

• States to watch in 2006States to watch in 2006– MA, MN, WI, MIMA, MN, WI, MI– Will NERC/ERC model move in 10 states?Will NERC/ERC model move in 10 states?– Impact of WA passageImpact of WA passage

• Can states pass more programs with funding Can states pass more programs with funding mechanism included?mechanism included?– Yes, in case of WA: coalition of local govt, Yes, in case of WA: coalition of local govt,

retailers, NGOs, and one OEM (HP) pushed retailers, NGOs, and one OEM (HP) pushed throughthrough

– Or will intra-industry/other stakeholder split Or will intra-industry/other stakeholder split continue to result in stalemate?continue to result in stalemate?

Thank You!Thank You!

Jason LinnellNCERPhone: (304) 699-1008jlinnell@electronicsrecycling.org