John Friedrick, Executive Director NAHMMA Conference June 2015 Lessons Learned: E-Cycle Washington – Year 7 John Friedrick, Executive Director Washington Materials Management & Financing Authority Quick facts

Ecycle is the BRAND. WMMFA runs the operations to comply with law and maintain, fund, the brand. WMMFA one of potentially several E-cycle manufacturer operated E-cycle “plans”

Financing Cost internalization The producers are billed by the WMMFA for their “share” of the program costs based on their market share (by weight) in comparison to all other members – regardless of product types manufactured No fee/assessment at retail Manufacturers have chosen how to account for the cost internally WMMFA undergoes annual financial audits with independent auditors report to the Board

Overview of System Collectors Collector Profiles: Number of collection sites by type Collectors are paid based on individually negotiated rates based in their cost of collections, environmental compliance, and reasonable competition 2009 2014 # added change Non Profit retailers – used goods 128 200 72 +57% Retailers of used goods 10 23 13 +130% Computer reuse & resale 14 18 4 +29% Private solid waste co. 12 18 6 +70% Local Govt. Transfer Stations and LF 18 11 -7 +7% Other – Small business 13 17 4 +31% Recyclers – All commodities 35 38 3 +9% Processors 5 5 0 0% TOTAL 235 330 95 +40% Go over each line – self explanatory all have come to us since start up and have agreed at rates commensurate with others generally – some exceptions based on mandate and volume

Service Provider Agreements Establishing Service Provider Agreements (processors, collectors, transporters) Agree to “fair compensation” Aim to use existing infrastructure to provide collection services Level of service by processors is determined by several factors: Capacity for handling materials Proximity and location to major transport routes Environmental efficiencies Administrative competence and billing accuracy Go over each line – self explanatory all have come to us since start up and have agreed at rates commensurate with others generally – some exceptions based on mandate and volume

Alternate Collection Services Law requires collection sites: Alternative methods are optional (curbside or pick up on demand) The WMMFA believes that the collection site model is the most efficient, convenient, and environmentally responsible of all potential product stewardship models based on the scope of products involved with this particular program, due to the equipment necessary to handle, transport, and process electronics per the required environmental standards and the logistics. There was an existing infrastructure for the collection/ handling of used electronics that met the environmental standards. There was an existing transportation system between collectors and RECYCLING processors at program start up. There was NOT a solid waste collection to recycler/processor network at start up and nobody established one.

Overview of System Processors Processor Profiles: Number of approved and registered processors: 7 IMS Recycling, Vancouver, WA Total Reclaim, Seattle, WA Electronic Recyclers International, Auburn, WA EWC Group, Tukwila, WA E-Waste LLC, Lynwood, WA Ace Metal Company, Mukilteo, WA ECS Refining, Santa Clara, CA Primary Recycling Methods: CRT – Glass to Glass – materials used in new glass products Circuit Boards, misc MOC electronics – Primary smelter with metals recovery NO processors reported shipments to any Non-OECD countries since plan start up Glass to Glass India, prepped in Mexico (washed) or us for smelting, then to India for Glass to glass mfg

Pounds collected/processed by product type

E-cycle Washington WMMFA Lessons Learned   E-cycle Washington WMMFA Lessons Learned Summary E-cycle Washington, an EPR program, is a business and must be operated as such to be successful As a business the WMMFA must treat all service providers – collectors, transporters, and processors as customers and vendors alike. Service providers to the plan must understand they are competing with others within a competitive environment –and- the WMMFA must not allow agreements that allow rates to service providers that are not sustainable and allow for a financial “drive to the bottom”. Compensation rates should spur initiative and creativity among service providers. Fairness in negotiating with service providers, respectful of the source of funds (manufacturers), while offering a financially sustainable program is not an exact science. Things are not always black and white. Do the right thing. While the laws and associated rules are guidelines intent of the laws must be taken into consideration. Be transparent in all things – document everything and hide nothing.