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1 California’s Electronic Waste Recycling Program: Program Overview and Retailer Issues NAHMMA Conference September 23, 2005 Karl Palmer, Chief Regulatory.

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Presentation on theme: "1 California’s Electronic Waste Recycling Program: Program Overview and Retailer Issues NAHMMA Conference September 23, 2005 Karl Palmer, Chief Regulatory."— Presentation transcript:

1 1 California’s Electronic Waste Recycling Program: Program Overview and Retailer Issues NAHMMA Conference September 23, 2005 Karl Palmer, Chief Regulatory and Program Development Branch Department of Toxic Substances Control (916)

2 2 Key Elements of the Act  Consumers Pay Advance Recycling Fee Point of Sale Collection: $6 - $10 Point of Sale Collection: $6 - $10  DTSC’s Role: Scope of products determinations Scope of products determinations Review handler notifications (collectors and recyclers) Review handler notifications (collectors and recyclers) Enforcement Actions Enforcement Actions Inspections of Recyclers Inspections of Recyclers Restrictions on Hazardous Substances (ROHS) Restrictions on Hazardous Substances (ROHS) Export Notifications Export Notifications Disassembly

3 3 Key Elements of the Act  CIWMB Will Disburse Payments Approve collectors and recyclers for participation in payment program Approve collectors and recyclers for participation in payment program Process claims for funds Process claims for funds Development of environmentally preferred purchasing criteria for state agencies. Development of environmentally preferred purchasing criteria for state agencies.  Board of Equalization (BOE) Collects Fees From Retailers

4 4 Manufacturer Responsibilities Notify Retailers About Covered Products (April 1 st each year and per DTSC regulations) Provide Information to Consumer Where To Recycle Where To Recycle How to Recycle How to Recycle Where to Return Where to Return How to Dispose How to Dispose Provide Toll-Free Number & Internet Web Site (www.eRecycle.org) Provide Toll-Free Number & Internet Web Site (www.eRecycle.org)www.eRecycle.org

5 5 Manufacturer Responsibilities  Report Annually Number of Devices Sold Number of Devices Sold Toxic Materials in Devices Toxic Materials in Devices Estimate Recycled Content Estimate Recycled Content Design for Recycling Efforts Design for Recycling Efforts  Phase-Out of Hazardous Materials EU Model by January 1, 2007 EU Model by January 1, 2007 Limit Use of Hazardous Materials consistent with the European Directive (ROHS) Limit Use of Hazardous Materials consistent with the European Directive (ROHS)

6 6 Retailer Responsibilities  Raise Public Awareness (www.eRecycle.org)  Collect Fees on Covered Electronic Devices  Remit Fees to State Board Of Equalization  File Fee Returns with BOE  May Offer Collection Services  May be Approved Collector for payment in fee system. Ventura County Collection

7 7 Recovery Payments to Collectors Authorized Recycler Authorized Collector $ Monitors = 3500 lbs. $.20 /lb.$.28 /lb.

8 8 E-Waste Recycling Program Material & Cash Flow

9 9 Payments  Distribution of recovery and recycling payments to qualified (approved) entities to cover the cost of collection and recycling.  Eligible activities began January 1,  Only covered electronic wastes (CEW’s) collected in CA and after start date are eligible for payment.  Payments are limited to recycling (cancellation) activities that occur in-state.

10 10 Payments  Collectors and recyclers must offer a “cost-free and convenient” collection opportunity as a condition of payment.  Initial combined recycling payment rate is $.48 per pound of material cancelled (includes $.20 per pound recovery payment which must be passed on to Approved Collector).  Payment amount may be revised every two years if necessary.

11 11 Fees and Payments  Fees collected ~$31 million in 1 st half of year  ~$3M in collection costs by BOE  Claims to CIWMB = $9.6 million for ~20M pounds.  ~$4.8 Million in claims approved, 67% of Claims processed, ~$500K claims rejected  Primary reason for claim adjustments is source documentation deficiencies  CIWMB working closely with recyclers to expedite process

12 12 Approved Recyclers and Collectors 39 approved recyclers (all dual entities) 39 approved recyclers (all dual entities) 286 approved collectors 286 approved collectors

13 13 Retailer Issues  What devices are covered and how do I know?  Which devices are exempt?  Who is a “retailer”?  How do retailers implement POS systems?  What about consumer education?  Can/should retailers participate as collectors?  Compliance with requirements.  Future restrictions on sales of electronic devices.

14 14 What Devices are Covered Electronic Devices?  Video display devices > 4”, determined by DTSC to be hazardous and not subject to statutory exemptions.  Covered electronic devices (CEDs): Cathode ray tubes (CRT) and CRT containing devices Cathode ray tubes (CRT) and CRT containing devices Computer monitors containing CRTs Computer monitors containing CRTs Laptop computers with liquid crystal display (LCD) screens Laptop computers with liquid crystal display (LCD) screens LCD containing desktop monitors LCD containing desktop monitors Televisions containing CRTs Televisions containing CRTs Plasma TVs and LCD TVs (effective July 1, 2005) Plasma TVs and LCD TVs (effective July 1, 2005)

15 15 What Devices are Covered Electronic Devices? Scope of Products DTSC has tested devices to see if they are hazardous.  To date, DTSC has designated CRTs, CRT devices (CRT TVs and Monitors), LCD monitors, laptop computers, LCD TVs and Plasma TVs. Screen size > 4 inches.  Determinations listed by emergency regulations adopted June 7, 2004 and December 27, 2004 (Plasmas and LCD TVs). Found in CCR, Title 22, Division 4.5, Chapter 11, Appendix X. Text of regulations at: mergencyRegulations

16 16 How is the Fee Determined? Manufacturers provide notification based on “viewable” screen size Manufacturers provide notification based on “viewable” screen size DTSC added regulations stating“… DTSC added regulations stating“…viewable screen size means the diagonal measurement of the output surface, as viewed by the operator of the covered electronic device, excluding any plastic, wood, metal, or other bezel material that surrounds the video display surface.” Fees equal: (per statute) Fees equal: (per statute) $6 for screens < 15” measured diagonally$6 for screens < 15” measured diagonally $8 for screens ≥ 15” and < 35” measured diagonally$8 for screens ≥ 15” and < 35” measured diagonally $10 for screens ≥ 35” measured diagonally$10 for screens ≥ 35” measured diagonally

17 17 How Does a Retailer Know?  Manufacturer Notifications by April 1 st each year  DTSC emergency regulations: “…  DTSC emergency regulations: “…A manufacturer who distributes any covered electronic device for which a notice was not provided as required in subsection (b)(1)[April 1 notice provisions], shall provide the notice to the retailer(s) no later than the date the retailer(s) first receives the covered electronic device…”  New devices can be added by DTSC per regulation

18 18 Simplifying Notification Requirements  Eliminates the specific requirement for model numbers and provides that the notice shall include: “  Eliminates the specific requirement for model numbers and provides that the notice shall include: “(D) At least one of the following: the product group or family, model number or series, part number or series, or a similar descriptor for each covered electronic device that will enable the retailers to determine that the electronic device is a covered electronic device. For example, a notification could include a statement such as “All (brand name) XYZ series, 15-inch through 21-inch, LCD-desktop computer monitors and all bundled computer systems containing these monitors,” rather than delineating each XYZ monitor individually.”

19 19 What Devices are Exempt?  Exemptions (PRC 42463(f): Vehicle VDD’s installed by manufacturer Vehicle VDD’s installed by manufacturer VDD “contained within, or part of a piece of industrial, commercial, or medical equipment..” VDD “contained within, or part of a piece of industrial, commercial, or medical equipment..” VDD contained w/in a clothes washer/dryers, refrigerator, freezer, microwave, oven/range, dishwasher, air conditioner, dehumidifier.. VDD contained w/in a clothes washer/dryers, refrigerator, freezer, microwave, oven/range, dishwasher, air conditioner, dehumidifier..

20 20 Electronic Waste Recycling Act DTSC Emergency Regulations Alternative Management Standards (AMS). Alternative Management Standards (AMS). Cover scope of covered electronic devicesCover scope of covered electronic devices Specify management standards for notification, disassembly, processing, record keeping, labeling, closure, FA/FR.Specify management standards for notification, disassembly, processing, record keeping, labeling, closure, FA/FR. html#EmergencyRegulationswww.dtsc.ca.gov/LawsRegulationsPolicies/index. html#EmergencyRegulations

21 21 Fee Collection  Began January 1, 2005, at the point of sale  Retailers may retain 3% of the fee as reimbursement for all costs associated with the fee collection  Retailer may pay fee on behalf of consumer, but must note this on the receipt  “Retailer” includes manufacturers conducting direct sales via internet

22 22 Fee Collection  What about leasing companies? AB 575 (Wolk) provides that a retailer acting as a lessor may pay the fee to their vendor, who then pays the fee on behalf of the consumer.  What about internet and catalog sales? Big players are participating.

23 23 Implementation and Consumer Education  POS systems modified to identify fee (not subject to tax) and amend systems used for quarterly tax filings with BOE  Industry associations active in implementation  Consumer education efforts have been varied. 

24 24 Can Retailers Participate as Collectors?  Retailers may act as approved collectors or recyclers  Prior to SB 50 some retailer programs offered  Limited number of retailers acting as collector/recyclers  Key issues are logistics of handling (space and process), potential profit margins unknown

25 25 Compliance  BOE will conduct audits and investigations and enforce fee payment requirements  DTSC and CIWMB will enforce statutory provisions and their regulations pertaining to manufacturers, retailers, collectors and recyclers.  All handlers of CED’s are Universal Waste handlers subject to the requirements in DTSC’s universal waste regulations.

26 26 RoHS Regulations  SB 50 requires DTSC to adopt regulations consistent with the European Union Directive 2002/95/EC which prohibits, under specified conditions, the sale of electronic devices due to the presence of certain substances.  Commonly referred to as the Restriction of Hazardous Substances (RoHS Directive).  SB 50 requires DTSC’s regulations to be based on the published decision of the Technical Adaptation Committee (TAC) which establishes the maximum concentration values (MCVs) for hazardous substances prohibited by the RoHS Directive.

27 27 RoHS Regulations  EU’s Technical Adaptation Committee published its Decision on August 18, 2005  DTSC will start RoHS regulations adoption process in late 2005 as part of finalizing emergency ewaste regs.  DTSC’s final regulations package will include the MCVs established by TAC for lead, mercury, hexavalent chromium, and cadmium.

28 28 RoHS Regulations  Requirements are specific only to metals.  Scope of requirements is limited to CEDs as defined in EWRA and DTSC regulations  Some manufacturer reporting requirements will be reduced when/if RoHS compliance is demonstrated  Questions regarding RoHS compliance and enforcement remain.

29 29 What’s Next?  Insure compliance with hazardous waste regulations and minimize opportunity for fraud via audits and enforcement  DTSC evaluating what will be the next generation of CEDs.  Finalize emergency regulations  Monitor EU on implementation of RoHS  Stay tuned for further amendments to the EWRA and efforts of other States and Feds

30 30 Questions?  Karl Palmer, Chief Regulatory and Program Development Branch DTSC (916)


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