1 Covered Electronic Waste Recycling System Update ESJPA Meeting May 17, 2007 Jeff Hunts / Matt McCarron

2 CEW Recycling System

3 Covered Electronic Waste (CEW) SB 20/50 - Covers specific devices –Video Display Devices with screens over 4” listed by Department of Toxic Substances Control (DTSC) –CRTs, CRT Monitors and TVs, LCD Monitors and TVs, Laptops, Plasma TVs, and as of July 1 st, portable DVD players

4 Fee Collection Advanced Recovery Fee- $6 to $10 (screen size) –Fee collected at the point of sale by the retailer –Retailer must collect when tax “nexus” with state exists Retailers remit to Board Of Equalization Revenue ~ $78 M annually Prudent fund reserve left from start up

5 Responsibility Under the Act Collectors –Provide cost free opportunity –Document the source of the materials –Handle materials as required by DTSC –Report annually on Net Costs

6 Responsibility Under the Act Recyclers –All the requirements of a Collector, plus –Cancellation of CEWs in California –Ship glass & other residuals for further treatment –Submit a claim documenting everything

7 Approved Participation Infrastructure Growth – collectors & 20 recyclers – collectors & 40 recyclers –Currently 563 collectors & 60 recyclers Not all are “active” List of Approved Participants –

8 Volume of CEW’s Recycled 2005 –64 million pounds 2006 –127 million pounds 2007 –23.5 million pounds to date

9 CEW System Growth

10 Looking Ahead Markets – especially for CTR glass –Glass-to-glass? –Lead smelting? Due diligence on fate of residuals Due diligence on fate of residuals Digital TV Broadcast (Feb 7, 2009) Proposed Legislation – AB 1535 –Expands covered devices: “personal computer”

11 Looking Ahead Promote Enhance Fraud Detection –Standardize data tracking –Audit original documentation Enforce sales ban Continue to participate in national dialogue Cost of recycling and fund condition

12 Net Cost Reports Due March 1 st annually Compliance less than stellar –Revocations in 2005 and 2006 report years Analysis of reports –2005 complete –2006 underway –Item to CIWMB Board in July

13 Net Cost Reports Findings –Size matters: Net costs vary widely across reporting organizations –Current standard payment rates more than cover typical reported net costs –Proposals for a “reasonable rate of profit” vary considerably

14 Net Cost Reports

15 Net Cost Reports Trends and Considerations –The California electronics recycling industry is growing steadily, evolving rapidly. –Intense competition among recyclers is driving up prices paid to collectors. –Many participants compelled by market competition, customer demand to handle other electronics waste. –Changing technologies for monitors and televisions will ultimately alter the economics of electronics recycling.

16 Questions?