California Integrated Waste Management Board 1 E-Waste Recycling Program Program Update and Analysis of Net Cost Report Data July 17, 2007 Electronic Waste Recycling Program

California Integrated Waste Management Board 2 Electronic Waste Recycling Act Intended to fund the recycling of certain electronic waste: –Cathode ray tubes (CRT) televisions and computer monitors); –Liquid Crystal Display (LCD) televisions and monitors; –Laptop computers; –Gas plasma display televisions –Personal DVD players (July 1, 2007)

California Integrated Waste Management Board 3 Electronic Waste Recycling Act Advance Recycling Fee paid by consumers: –$6, $8, or $10 depending on screen size Recovery / Recycling Payments made to approved collectors / recyclers; –$0.20 recovery payment for collectors –$0.28 recycling payment for recyclers

California Integrated Waste Management Board 4 Electronic Waste Recycling Act Over 600 approved collectors –~47% CA Corporations / LLCs –~17% Individuals / Sole Props –~13% Local Government Agencies –~10% Non-CA Corps / LLCs –~10% Non-Profits / Schools –~ 3% Partnerships Over 60 approved recyclers

California Integrated Waste Management Board 5 Program Revenue $41 million in FY 2004/05 $78 million in FY 2005/06 $78 million projected for FY 2006/07 $83 million projected for FY 2007/08 (Projected program revenue derived from Governor’s proposed budget for FY 2007/08)

California Integrated Waste Management Board 6 Program Volumes & Payments FY 2004/05 –$11.4 million claimed (~24 million lbs) –$10.1 million paid FY 2005/06 –$45.9 million claimed (~95 million lbs) –$44.8 million paid FY 2006/07 (projected) –>$68 million claimed (>140 million lbs)

California Integrated Waste Management Board 7 Program Volumes & Payments Since January 1, 2005: –Recyclers have submitted > 600 claims –Approximately $113 million requested –Represents the recovery and recycling of ~235 million pounds of CEW  Significant fiscal responsibility

California Integrated Waste Management Board 8 Permanent Regulations Effective November 27, 2006 –Requires collectors to secure more detailed source information on larger CEW transfers –Requires recyclers to ship all CRT glass resulting from CEW cancellation to market before making claim

California Integrated Waste Management Board 9 Compliance CIWMB & DTSC share responsibilities –CIWMB authority over payment system Enforcement through denial of claims Enforcement through approval revocation –DTSC authority over hazardous materials Facility inspections Enforcement action for violations –Joint efforts to detect and deter fraud CIWMB/DTSC MOU Cooperation on investigations

California Integrated Waste Management Board 10 Future Challenges CRT Glass Markets Unstable –Glass-to-glass is waning CRT technology is being replaced –Smelter flux continues; uncertain Few domestic operations Markets for new technologies still need to be developed –LCD & plasma residuals

California Integrated Waste Management Board 11 Future Challenges OTA Digital Broadcasting –February 17, 2009 changeover –Analog receivers obsolete, or converter –20% of households rely on over the air (OTA) for reception –Cable and satellite unaffected –Volume of discards large, uncertain FCC coupons for signal converters New technology cheaper, more attractive

California Integrated Waste Management Board 12 Public Education and Outreach Media Relations –Garnered more than 3 million media impressions from the Earth Day eRecycle event media outreach –Formed key partnership with Northern CA Clear Channel radio network –Recently completed public affairs show interviews: KUVS-TV Univision (Sac), Radio Bilingue (Fresno), KBIG-FM (LA), V100-FM (LA), San Francisco Clear Channel radio network Public Service Announcements –More than 55,000 PSAs have aired –Estimated value of approximately $2.7 million

California Integrated Waste Management Board 13 Public Education and Outreach Retail Partnerships –Currently training employees at 8 CompUSA stores throughout the state –Distributed joint letter between California Retailers Association and CIWMB –Actively working with Costco, OfficeMax and Kohl’s Department Store to develop partnership Advisory Group –Next meeting scheduled for Thursday, July 12 –Ongoing subgroup meetings Recent upgrade to eRecycle.org website

California Integrated Waste Management Board 14 Net Cost Reports Why? Required annually from approved collectors and recyclers Data used to assess payment rates Good indicator of compliance with other regulatory provisions

California Integrated Waste Management Board 15 Net Cost Reports Reports covering 2005 activities analyzed, published Reports covering 2006 activities analyzed, discussed today