Electronics Recycling Systems and Policies Waste Expo April 5, 2006 Jason Linnell Executive Director National Center for Electronics Recycling

Presentation Overview National Center for Electronics Recycling National Center for Electronics Recycling Enacted State Legislation Enacted State Legislation –California, Maine, Maryland Proposed State Legislation 2006 Proposed State Legislation 2006 –Trends from 2005 Federal Legislative Activity Federal Legislative Activity Outlook Outlook

National Center for Electronics Recycling Mission: coordinate initiatives targeting the recycling of end-of-life electronics in the United States and support actions to move towards a national system Mission: coordinate initiatives targeting the recycling of end-of-life electronics in the United States and support actions to move towards a national system In Polymer Technology Park in Davisville, WV In Polymer Technology Park in Davisville, WV Incorporated as non-profit in WV, 501(c)(3) Incorporated as non-profit in WV, 501(c)(3) Manufacturer-led organization – leading companies on environmental initiatives on Advisory Committee Manufacturer-led organization – leading companies on environmental initiatives on Advisory Committee –Manufacturers, approve projects –Multi-stakeholder project committees

Enacted State Legislation

California Two bills vetoed in 2002 – ARF of $15 Two bills vetoed in 2002 – ARF of $15 SB 20 adopted 2003/Amended 2004 by SB 50 SB 20 adopted 2003/Amended 2004 by SB – legislative changes for lease sales 2005 – legislative changes for lease sales Point of sale fee on certain video display devices with screens > 4” diagonal Point of sale fee on certain video display devices with screens > 4” diagonal Effective January 1, 2005 on covered electronic devices (CEDs) designated by DTSC Effective January 1, 2005 on covered electronic devices (CEDs) designated by DTSC –CRT devices (TVs & monitors) –LCD devices (laptops and monitors) –LCD and Plasma TVs added July 1, 2005

SB 20/50 - Implementation Collection and Recycling Payments Collection and Recycling Payments –Authorized collector - $0.20/lb –Authorized recycler - $0.28/lb Payments only authorized for covered devices collected on or after 1/1/05 from CA sources (defined as users of the device in CA) Payments only authorized for covered devices collected on or after 1/1/05 from CA sources (defined as users of the device in CA) “Cancellation” activities (crushing, shredding, dismantling) must occur within CA “Cancellation” activities (crushing, shredding, dismantling) must occur within CA

SB 20/50 – Operations to Date Approved Collectors: 384 Approved Collectors: 384 Approved Recyclers: 45 (some dual collectors) Approved Recyclers: 45 (some dual collectors) 2005: BOE collected million $60 million 2005: BOE collected million $60 million –At start, some problems with payment claims (missing info, not CA sources, not properly documented, etc.) 225 claims submitted for payment: $31.1M – 64.8M pounds of covered electronic waste 225 claims submitted for payment: $31.1M – 64.8M pounds of covered electronic waste Claims approved for payment: $19.1M – 39.8M pounds Claims approved for payment: $19.1M – 39.8M pounds Claims still under review: $10.4M Claims still under review: $10.4M 93% of the dollars claimed has been approved for payment 93% of the dollars claimed has been approved for payment

SB 20/50 – Regulations Update Emergency regulations were adopted in December 2004 specifying requirements for the payment system Emergency regulations were adopted in December 2004 specifying requirements for the payment system Permanent regulations will be enacted before December 2006 Permanent regulations will be enacted before December 2006 Emergency regulations revised in Dec 2005 to allow for “anonymous source” material and change “agent designation for local govts Emergency regulations revised in Dec 2005 to allow for “anonymous source” material and change “agent designation for local govts CIWMB and DTSC now working on final regulations – may be significant changes to CIWMB and DTSC now working on final regulations – may be significant changes to –Draft regs published Feb 1, workshop held

Maine Passed in 2004: covers TVs and computer monitors (includes laptops) from Maine households Passed in 2004: covers TVs and computer monitors (includes laptops) from Maine households –Desktops only covered by brand labeling requirement Municipalities collect from household, send/contract to consolidation facilities. Municipalities collect from household, send/contract to consolidation facilities. Consolidators conduct brand count, follow ESM guidelines for recycling, bill manufacturers based on actual count + orphan share Consolidators conduct brand count, follow ESM guidelines for recycling, bill manufacturers based on actual count + orphan share Manufacturers submit compliance plans, file reports, pay invoices from all consolidators for “allowable costs” Manufacturers submit compliance plans, file reports, pay invoices from all consolidators for “allowable costs”

Maine Shared Responsibility Law Orphans: “Covered electronic device, the manufacturers of which cannot be identified or is no longer in business and has no successor in interest” Orphans: “Covered electronic device, the manufacturers of which cannot be identified or is no longer in business and has no successor in interest” DEP has to identify manufacturer pro rata “orphan share”, provide to consolidators DEP has to identify manufacturer pro rata “orphan share”, provide to consolidators According to NCER Estimates*: According to NCER Estimates*: –Laptops - 65 brands –Monitors brands –TVs – 436 brands –Desktops – 682 brands *See: *See:

Maine Shared Responsibility Law Finding Orphans: Finding Orphans: –Look at Brands from limited brand sort studies –Research company/brand history, some public directories –Send compliance letter to manufacturer address Orphan Share Orphan Share –All brands claimed and likely responsible manufacturers on a “non-orphan” list, separate “orphan” list So far, orphans determined to be 5% TVs, 11.5% monitors So far, orphans determined to be 5% TVs, 11.5% monitors –Consolidator counts brands as received, keeps total of orphans –Bills manufacturer for count of responsible brands + DEP determined share of orphans collected in that period –Example: OEM A has 20% orphan share; consolidator collects 1000 OEM A branded units and 100 total orphans OEM A is bill for 1020 units at “reasonable cost” rate OEM A is bill for 1020 units at “reasonable cost” rate

Maine Shared Responsibility Law Manufacturer Compliance As of late February 2006, number of brands claimed represents: As of late February 2006, number of brands claimed represents: –92% of TV return share –82% of computer monitor share Law prohibits manufacturers and retailers from selling televisions, computer monitors, and CPUs produced by any manufacturer that is not in compliance as of January 1, Law prohibits manufacturers and retailers from selling televisions, computer monitors, and CPUs produced by any manufacturer that is not in compliance as of January 1, –Triple damages for non-compliant manufacturers Website lists compliant brands/manufacturers, orphan brands, approved consolidators Website lists compliant brands/manufacturers, orphan brands, approved consolidators

Maine – Effective Dates Manufacturer responsibility as of 1/18/06 Manufacturer responsibility as of 1/18/06 CRT disposal ban in effect – July, CRT disposal ban in effect – July, OTHER ISSUES: Enforcement Enforcement Return share vs market share; creation of new orphans? Return share vs market share; creation of new orphans?

Maryland Computer Recycling Law HB 575 passed in 2005 HB 575 passed in 2005 Creates a statewide computer recycling pilot program for 5 years Creates a statewide computer recycling pilot program for 5 years –Effective January 1, 2006, Ends 12/31/10 Registration and fee required for manufacturers of more than 1,000 computers per year Registration and fee required for manufacturers of more than 1,000 computers per year –1000 can be sold anywhere, not just in MD Computers defined as: “desktop personal computer or laptop computer, including the computer monitor“ Computers defined as: “desktop personal computer or laptop computer, including the computer monitor“ –Like CA/ME, covered products must be brand labeled

Maryland 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 computer take-back program –$500 if manufacturer DOES implement a program Takeback program can be: Takeback program can be: –Provide consumer with no-cost return option, or –Contract w recycler, local government, etc., or –Any other state-approved program Registration money into state recycling trust fund Registration money into state recycling trust fund –Used to provide collection/recycling grants to local governments Registered Manufacturers as of 3/28/06: Registered Manufacturers as of 3/28/06: –34 Companies, or $170,000

CRT Disposal Bans In effect: In effect: –California –Massachusetts Effective July 2006 in Maine Effective July 2006 in Maine Effective July 2006 in Minnesota Effective July 2006 in Minnesota Effective January 2008, Arkansas DEQ may implement rules banning all computer and electronic equipment from landfills Effective January 2008, Arkansas DEQ may implement rules banning all computer and electronic equipment from landfills

Proposed Legislation 2006

Legislation in 2006 Around 20 states have introduced Around 20 states have introduced –Not including carryover Types of Bills Types of Bills –Advanced recovery fees – at POS and Manufacturer/first point of possession –Producer responsibility –Studies, commissions & task forces –Landfill &/or incineration bans –California amendments (product scope)/Maine

Washington Legislation 2006 Signed by governor on 3/24/06 Signed by governor on 3/24/06 –Would be 4 th major state electronics recycling program –Different than other 3 in significant ways Producer Responsibility with default Producer Responsibility with default –Manufacturer responsible for “equivalent share” either on own or pay into State TPO –No collection goal, but must meet your % at year’s end or pay penalty (refund if collecting more than %) Orphans must be calculated by DOE Orphans must be calculated by DOE –Covers CA/ME products + Desktops –Ban on exports to developing countries according to Basel Convention [VETOED] –Programs must be effective Jan 2009

Legislation in bills in 31 states 50+ bills in 31 states Types of bills: Types of bills: –Advanced recovery fees –Producer responsibility –Tax incentives –Studies, commissions & task forces –Landfill &/or incineration bans –California/Maine amendments Bills passed in: AR, CA, MD, ME, MN, IL, NM, LA Bills passed in: AR, CA, MD, ME, MN, IL, NM, LA –Mostly study committees, disposal bans/delays (MN), changes to existing statute –Only MD had financing mechanism

Regional Model Legislation and Study Committees

NERC/Council of State Governments Northeast Recycling Council/Council of State Governments Initiative Northeast Recycling Council/Council of State Governments Initiative 10 states looking to coordinate on regional electronics recycling 10 states looking to coordinate on regional electronics recycling New England (including Maine), New York, New Jersey, Pennsylvania, Delaware New England (including Maine), New York, New Jersey, Pennsylvania, Delaware

NERC/Council of State Governments Status Status –Last version released Sept 1 st; stakeholder comments/meetings –Revised financing language on Oct 28 th 2005 Current model: Current model: –Manufacturer fee into Corporation (TPO) –TPO arranges for recycling system –Covers broader range of products Combining with Region 5 effort? Combining with Region 5 effort?

Midwest Regional Electronic Waste Recycling Policy Initiative State agencies working together on regional model similar to NERC/ERC: State agencies working together on regional model similar to NERC/ERC: –Minnesota, Michigan, Illinois, Wisconsin, Ohio, and Iowa –Last version released Jan 20, 2006, comments until March 1 ; Current model: Current model: –Manufacturer wholesale fee into Corporation (TPO) –TPO arranges for recycling system –Covers broader range of products Combining with NERC/ERC effort? Combining with NERC/ERC effort?

Study Committees New bills in 2005 required study committees in: New bills in 2005 required study committees in: –IL, LA, NM Final report expected in MI Final report expected in MI Importance: ME and MD had study committee prior year to legislation passage Importance: ME and MD had study committee prior year to legislation passage

Federal Legislative Activity

Congressional Hearings! 1 st time Congress has looked at electronics recycling in a hearing 1 st time Congress has looked at electronics recycling in a hearing Earlier in 2005: E-Waste Working Group formed – four House Representatives Earlier in 2005: E-Waste Working Group formed – four House Representatives Hearings – House Energy and Commerce Subcommittee on Env and Haz Materials Hearings – House Energy and Commerce Subcommittee on Env and Haz Materials –July 20 th – Govt only (including CA, ME, MD) –September 8 th – Industry/NGO stakeholders Hearing – Senate Env and Public Works Subcommittee on Superfund and Waste Mgmt Hearing – Senate Env and Public Works Subcommittee on Superfund and Waste Mgmt –July 26 th - Legislators, Govt, Other Stakeholders All documents on NCER website: All documents on NCER website: – d=16&ParentID=3 d=16&ParentID=3http:// d=16&ParentID=3

Conclusions/Outlook More to learn in 2006 More to learn in 2006 –CA implementation will enter 2 nd year –Maine/Maryland begin implementation States to watch in 2006 States to watch in 2006 –MA, MN, WI, MI –Will NERC/ERC model move in 10 states? –Impact of WA passage Can states pass more programs with funding mechanism included? Can states pass more programs with funding mechanism included? –Yes, in case of WA: coalition of local govt, retailers, NGOs, and one OEM (HP) pushed through –Or will intra-industry/other stakeholder split continue to result in stalemate?

Thank You! Jason Linnell NCER Phone: (304)