1 CIWMB Board Briefing California’s Electronic Waste Recycling Program January 2007 Agenda Item 15 CIWMB Electronic Waste Recycling Program

2 What We’ll Cover Today Program statistics Fiscal responsibility and program integrity Permanent regulations Work flow Net Cost Reporting Manufacturer Reporting Public education Looking forward

3 Electronic Waste Recycling Act of 2003 Advance recycling fee (ARF) on retail sales of covered electronic devices Recovery / recycling payments to qualified handlers of covered electronic wastes (CEWs) Manufacturer requirements: –labeling, reporting –product design: ROHS –consumer information Statewide public education campaign

4 CEW Collectors and Recyclers CIWMB collaborates with DTSC on approvals Requires appropriate notification, authorization, and/or inspections 500+ approved collectors 50+ approved recyclers / dual entities CIWMB pays recyclers; recyclers pay collectors

5 CEW Payment System Volumes Activities began January 1, volumes: –$31M (65M lbs) in claims received 2006 volumes (claimed thus far): –$51M (106M lbs) in claims received

6 Program Growth

7 CEW Payment System Revenue BOE tracks revenue in FY FY 05/06 revenue: –3 rd Qtr 05 - $18.5M –4 th Qtr 05 - $23.3M –1 st Qtr 06 - $18.1M –2 nd Qtr 06 - $17.9M –Total FY 05/06: ~$77.9M FY 06/07 revenue projected to be similar

8 Fiscal Responsibility & Program Integrity CIWMB is the fiduciary responsible for the financial aspects of the Act. DOF letter late last year suggests areas where program could be strengthened Common sense and history informs us that fraud is a likelihood CIWMB has specific authorities; must work with others to protect the integrity of the funds – DTSC, DOC/DOR, DOJ, SCO

9 Statutory & Regulatory History SB 20 – October 2003 – Initial emergency regs April 2004 SB 50 – September 2004 – Revised emergency regs November 2004 Program start – January 2005 – Revised emergency regs November 2005 Final rulemaking – 2006 – Final regulations adopted by CIWMB July 2006 – Final regulations approved by OAL November 27 th

10 What’s New in the Final Regs? New & revised definitions Limitations on CEWs from illegal disposal Limitations on recovery payments Future Net Cost Report flexibility Certification of regulatory awareness Maintenance of in-state location Expanded prohibitions Ability to suspend participants

11 What’s New in the Final Regs? Enhanced collection documentation Inventory tracking requirements Weighmaster requirement for recyclers More detailed transfer records Glass shipment from all claimed CEWs Refined claim reporting Claim review standards

12 Workload and Work Flow Staffing at near full complement –1 Branch Manager –2 Supervisors –1 Technical Senior –6 IWMS –6 AGPA (2 RAs) – ~5PYs support from Legal, Accounting, IMB Backlog of payment claims nearly eliminated –Total time to process average claim still ~ one month –Veteran claimants providing better packages –Rookie claimants require significant guidance Can now turn attention to other pressing matters

13 Net Cost Reports Annual Reports due March 1, 2007 –Web-based training slated for late January, early February Contractor (HSU/R.W. Beck) has evaluated last year’s reports –Main purpose to ease data capture and improve quality of information –Will guide the preparation of this year’s reports –Report of findings available soon

14 Manufacturer Responsibilities and Reports Notify Retailers Annually About Covered Products by April 1st Provide Information to Consumer Report Annually to the CIWMB by July 1 st –Number of Devices Sold –Toxic Materials in Devices –Estimate Recycled Content –Design for Recycling Efforts –List of retailers to which mfg. has provided notice in the past 12 months Collective reporting for sales and toxic materials only Phase-Out of Hazardous Materials –Limit Use of Hazardous Materials; Use of the European Directive (ROHS) January 2007 –DTSC adopted emergency regulations in Dec 2006

15 Public Education & Outreach Statewide, two-year campaign underway –Focus on consumer enlightenment –Reach through retail partnerships and earned media –eRecycle.org is product; preferred source of “how to” information –Ogilvy Public Relations is prime contractor Press events/opportunities –Sacramento (Nov), Fresno (Dec) –Los Angeles (Jan), San Diego (Feb?) –PSA’s; radio, TV, and print coverage Partnerships/Advisory Groups

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17 Looking Ahead Net Cost Reports due March 1, 2007 –Web-based training slated for January Board item to discuss payment rates, fee level (June?) DTSC determines what is a CED/CEW –NEW starting July 2007 – portable DVD players

18 Looking Ahead Deploy Audit Functions –Assistance with net cost reports –Standardize data tracking –Compliance, enforcement & fraud minimization Next Rulemaking...? –You can always build a better mousetrap

19 CEW Payment System at a Glance