1 An Implementation Update Status of the Electronic Waste Recycling Act of 2003 September 13, 2005 CIWMB Electronic Waste Recycling Program

2 Purpose of this Item Update on implementation efforts Detail current program statistics Summarize challenges facing system Recap August 23 rd rulemaking workshop Discuss possible near term options

3 Background: Why SB 20? March 2001 DTSC “clarification”: –CRTs are hazardous –No landfill disposal Significant cost burden to local government Increase in illegal dumping Concerns regarding export Limited and costly recycling opportunities: –E-waste stockpiling by consumers

4 Intent of the Act Provide financial relief for managing covered electronic waste Foster cost-free recycling opportunities for consumers throughout the state Reduce illegal dumping Eliminate the stockpile of waste monitors/TVs Decrease amount of hazardous materials in covered products

5 Components of the Act Advance recycling fee (ARF) on retail sales of covered electronic devices (CEDs) Recovery / recycling payments to qualified handlers of covered electronic wastes (CEWs) Manufacturer labeling, reporting Product design: ROHS, recyclability Consumer information State purchasing guidelines: EPP via EPEAT

6 What is a Covered Electronic Waste (CEW)? Discarded covered electronic device (CED) Currently a CED is a –Cathode ray tube (CRT) television or monitor –Liquid crystal display (LCD) television or monitor –Laptop computers with LCD display –Plasma television (effective July 1, 2005) DTSC determines what is a CED

7 Revenue / Fee Collection Began January 1, 2005 Consumers pay fee to retailers, retailer remit quarterly to BOE Includes catalog and Internet sales Appears that majority of market share participating 1 st + 2 nd quarter returns thus far: ~$30 million

8 Collectors and Recyclers CIWMB collaborates with DTSC on approvals Requires appropriate notification, authorization, and/or inspections ~300 approved collectors 39 approved recyclers / dual entities CIWMB pays recyclers; recyclers pay collectors

9 Cost-Free & Convenient? Program surveyed approved participants during summer % response rate 97% offer some degree of cost-free service 64% offer full time cost-free opportunities

10 CEW Payment System Stats Eligible activities began January 1, 2005 $10.1 million in claims submitted to CIWMB $4.8 million in payments approved 68% of received claims have been processed 91.5% payment approval on processed claims

11 Payment System Challenges CEWs that are undocumented (source anonymous) but possibly otherwise eligible –CEWs resulting from load-check, illegal dumping or abandoned waste clean-up have limited access to system Uneven interpretation / application of “local government agent” provision –Regulations don’t define or delineate what or who an agent is –Liability concerns may hinder designation of an agent by some local governments

12 Payment System Challenges Timely payments to recyclers and collectors –May take several months from time of original transfer until payment from State –Many participants are small / medium businesses carrying significant $ obligations Shifting markets for CRT glass; end use destination documentation when exported –Sole US lead smelter not accepting CRT glass –Capacity in glass-to-glass market, much of which is overseas

13 Source Documentation 14 CCR Requirements for an Approved Collector (j) …an approved collector shall maintain the following records: (1) A collection log containing: (A) A brief written description of collection activities or events, including the type of consumers targeted for collection, the dates and locations the activities occurred, and an estimate of the weight of CEWs collected. (B) Approved collectors that are not California local governments, nor entities acting as an agent for a California local government, shall maintain a list of all consumers who transfer CEWs to the approved collector, including the name and address of the consumer and the number of CEWs transferred. (C) A list of collectors who transferred CEWs to the approved collector in any month, including the name and address of the collector and the number of CEWs transferred and the sources of those CEWs.

14 California Source “California Sources” of CEWs are consumers, as defined in Section (d) of the Public Resources Code, located in California who generate CEWs after their own use of the CEW. California sources may include, but are not limited to the business sector, residential sector, local government, state government, schools and other institutions within the borders of California. Entities who take, further handle, consolidate, store, or otherwise deal with discarded, donated or collected CEWs are not California consumers, or California sources. (14 CCR (a)(11))

15 August 23 rd Workshop Kick-off for upcoming final rulemaking process Stakeholders asked to identify key issues Concerns raised included: – Managing undocumented CEWs – Agent designation equity – Paperwork burden – Need for better definitions

16 Looking Ahead Proceed with final regulations –Rulemaking process will take ~one year Continue to expand recovery & recycling system –Promote –Objective: awareness of opportunities Deploy audit functions –Assistance with net cost reports –Enforce compliance / minimize fraud Address stakeholder concerns in near-term?

17 Options for Addressing Concerns Administratively clarify “agent” concept Adopt minor revisions to existing emergency regulations –Refine “agent” provisions –Provide limited options for “source anonymous” CEWs Proceed with final rulemaking

18 Other Stakeholder Suggestions Allow anonymous transfers of small quantities of CEW from consumers Revisit past claims under new rules or grant amnesty and pay for accumulated undocumented CEW Conversely, Challenges faced by some are growing pains; program should maintain course

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