Legislative and Regulatory Update:Legislative and Regulatory Update:US Federal and State InitiativesUS Federal and State Initiatives

IERI Electronics Recycling Education IERI Electronics Recycling Education ProgramProgram

Jason LinnellJason Linnell

Executive Director Executive Director

National Center for Electronics National Center for Electronics RecyclingRecycling

OverviewOverview

• NCER BackgroundNCER Background

• State Implementation StatusState Implementation Status

• State Activity 2006State Activity 2006

• Federal Activity 2006Federal Activity 2006

• Trends/OutlookTrends/Outlook

National Center for Electronics National Center for Electronics Recycling Recycling

• Mission: dedicated to the development and Mission: dedicated to the development and enhancement of a national infrastructure for the enhancement of a national infrastructure for the recycling of used electronics in the U.S. through recycling of used electronics in the U.S. through 1) the coordination of initiatives targeting the 1) the coordination of initiatives targeting the recycling of used electronics in the United States, recycling of used electronics in the United States, 2) participation in pilot projects to advance and 2) participation in pilot projects to advance and encourage electronics recycling, and 3) the encourage electronics recycling, and 3) the development of programs that reduce the burden development of programs that reduce the burden of government through private management of of government through private management of electronics recycling systems.  electronics recycling systems. 

• Non-profit 501c3Non-profit 501c3• Located in Parkersburg, WV area (Davisville)Located in Parkersburg, WV area (Davisville)

– Polymer Tech ParkPolymer Tech Park

State-Level Policy State-Level Policy ActivitiesActivities

How are states handling the How are states handling the challenge?challenge?

• Four programs with mandatory financingFour programs with mandatory financing– CA, ME, MD, and WACA, ME, MD, and WA

• Others with active study commissionsOthers with active study commissions– MO, IL, RI, LAMO, IL, RI, LA

• Upcoming or recent disposal bansUpcoming or recent disposal bans– MN, NH, RI, AR (others MA, CA)MN, NH, RI, AR (others MA, CA)

• Coordinated regional policy strategyCoordinated regional policy strategy– Northeast States: CT, DE, ME, MA, NH, NJ, NY, PA, Northeast States: CT, DE, ME, MA, NH, NJ, NY, PA,

RI, VTRI, VT– Midwest States: MN, MI, IL, WI, IAMidwest States: MN, MI, IL, WI, IA

CaliforniaCalifornia• Two bills vetoed in 2002 – ARF of $15Two bills vetoed in 2002 – ARF of $15

• SB 20 adopted 2003/Amended 2004 by SB 50SB 20 adopted 2003/Amended 2004 by SB 50

• Point of sale fee on certain video display devices Point of sale fee on certain video display devices with screens > 4” diagonalwith screens > 4” diagonal– $6, $8, or $10 depending on screen size$6, $8, or $10 depending on screen size– All “consumers” coveredAll “consumers” covered

• Effective January 1, 2005 on covered electronic Effective January 1, 2005 on covered electronic devices (CEDs) designated by DTSCdevices (CEDs) designated by DTSC– CRT devices (TVs & monitors)CRT devices (TVs & monitors)– LCD devices (laptops and monitors)LCD devices (laptops and monitors)– LCD and Plasma TVs added July 1, 2005LCD and Plasma TVs added July 1, 2005

CA Law – Recycling SystemCA Law – Recycling System• Collection and Recycling Payments from Collection and Recycling Payments from

StateState– Authorized collector - $0.20/lbAuthorized collector - $0.20/lb– Authorized recycler - $0.28/lbAuthorized recycler - $0.28/lb

• Payments only authorized for covered Payments only authorized for covered devices collected on or after 1/1/05 from CA devices collected on or after 1/1/05 from CA sources (defined as users of the device in CA)sources (defined as users of the device in CA)

• ““Cancellation” activities (crushing, shredding, Cancellation” activities (crushing, shredding, dismantling) must occur within CAdismantling) must occur within CA

CA Law – Operations to DateCA Law – Operations to Date• Approved Collectors: 441Approved Collectors: 441

• Approved Recyclers: 48 (some dual Approved Recyclers: 48 (some dual collectors)collectors)

• In 2005: BOE collected million $73 million In 2005: BOE collected million $73 million

• Claims approved for payment: $31 million Claims approved for payment: $31 million or 65 m lbsor 65 m lbs– 1.79 lbs/capita in 2005 1.79 lbs/capita in 2005

• Fees collected through 6/30/06 (estimate):Fees collected through 6/30/06 (estimate):– $33.3 million$33.3 millionAs of July 2006

Implementation in CaliforniaImplementation in California• 20,000 retailers; 28,500 locations 20,000 retailers; 28,500 locations

registered to collect feeregistered to collect fee• 90% of fees from 300 large retailers filing 90% of fees from 300 large retailers filing

monthly; 8-9,000 active quarterly filersmonthly; 8-9,000 active quarterly filers• 2006: 12006: 1stst quarter pounds claimed 3X’s 1 quarter pounds claimed 3X’s 1stst

quarter 2005quarter 2005– 97-98% claims for CRTs, rest “Other CEWs”97-98% claims for CRTs, rest “Other CEWs”

• Total govt admin costs through 6/30/06: Total govt admin costs through 6/30/06: $11.6 million$11.6 million– 10.9% of fees collected10.9% of fees collected– Retailers kept $3.3 millionRetailers kept $3.3 million

MaineMaine• Passed in 2004: covers TVs and computer monitors Passed in 2004: covers TVs and computer monitors

(includes laptops) from Maine households(includes laptops) from Maine households– Desktops only covered by brand labeling requirementDesktops only covered by brand labeling requirement

• Municipalities collect from household, send/contract to Municipalities collect from household, send/contract to consolidators (facility or pickup)consolidators (facility or pickup)– Collection from household not funded by systemCollection from household not funded by system

• Consolidators count brands, follow ESM guidelines, bill Consolidators count brands, follow ESM guidelines, bill manufacturers for actual count + orphan sharemanufacturers for actual count + orphan share

• Manufacturers submit compliance plans, file reports, Manufacturers submit compliance plans, file reports, pay invoices from all (5) consolidators for “allowable pay invoices from all (5) consolidators for “allowable costs”costs”

Maine Law: OrphansMaine Law: Orphans• Orphans: “Covered electronic device, the Orphans: “Covered electronic device, the

manufacturers of which cannot be identified or manufacturers of which cannot be identified or is no longer in business and has no successor in is no longer in business and has no successor in interest”interest”

• DEP has to identify manufacturer “pro rata DEP has to identify manufacturer “pro rata share” of orphans, provide to consolidatorsshare” of orphans, provide to consolidators– So far, 157 brands “orphan” by DEPSo far, 157 brands “orphan” by DEP– Only for OEMs over 1% total return share by productOnly for OEMs over 1% total return share by product

• Example: OEM A has 20% pro rata monitor Example: OEM A has 20% pro rata monitor share; consolidator collects 1000 OEM A claimed share; consolidator collects 1000 OEM A claimed brand monitors and 100 total orphan monitorsbrand monitors and 100 total orphan monitors– OEM A billed for 1020 monitors at “reasonable cost” OEM A billed for 1020 monitors at “reasonable cost”

raterate

Maine:Maine:Implementation Implementation

• Manufacturer plans required by 3/1/05Manufacturer plans required by 3/1/05– Collection plan, claim brands, still coming Collection plan, claim brands, still coming

inin

• As of September 26As of September 26– 347 brands claimed from347 brands claimed from– 149 manufacturers149 manufacturers

• 21 manufacturers with 28 brands on “DO 21 manufacturers with 28 brands on “DO NOT SELL” list (9/26/06)NOT SELL” list (9/26/06)

• Quirks, mis-identified, still researching Quirks, mis-identified, still researching

MaineMaine• Began 1/18/06Began 1/18/06

• 5 consolidators approved, 2 up and running5 consolidators approved, 2 up and running

• Manufacturers receiving bills based on actual Manufacturers receiving bills based on actual count + orphan share (29 manufacturers with count + orphan share (29 manufacturers with share)share)

• 2 staff managing program, plus staff at 2 staff managing program, plus staff at consolidator – tracking brands, invoicing OEMsconsolidator – tracking brands, invoicing OEMs

• No recycling data until after October, when No recycling data until after October, when consolidator reports dueconsolidator reports due

Maryland Computer Recycling Maryland Computer Recycling LawLaw

• HB 575 passed in 2005HB 575 passed in 2005

• Creates a statewide computer recycling pilot Creates a statewide computer recycling pilot program for 5 yearsprogram for 5 years– Effective January 1, 2006, Ends 12/31/10Effective January 1, 2006, Ends 12/31/10

• Registration and fee required for manufacturers Registration and fee required for manufacturers of more than 1,000 computers per yearof more than 1,000 computers per year– 1000 can be sold anywhere, not just in MD1000 can be sold anywhere, not just in MD

• Computers defined as: “desktop personal Computers defined as: “desktop personal computer or laptop computer, including the computer or laptop computer, including the computer monitor“computer monitor“– Like CA/ME, covered products must be brand labeledLike CA/ME, covered products must be brand labeled

Maryland Recycling Law cont’dMaryland Recycling Law cont’d

• Initial Registration fee for all OEMs $5000, then:Initial Registration fee for all OEMs $5000, then:– $5,000 if manufacturer does NOT implement a $5,000 if manufacturer does NOT implement a

computer take-back program computer take-back program – $500 if manufacturer DOES implement a program$500 if manufacturer DOES implement a program

• Takeback program guidelines flexibleTakeback program guidelines flexible

• Registration money into state recycling trust Registration money into state recycling trust fundfund– Used to provide collection/recycling grants to local Used to provide collection/recycling grants to local

governmentsgovernments• First year for education campaign, not recycling grantsFirst year for education campaign, not recycling grants

• Registered Manufacturers as of 6/30/06: Registered Manufacturers as of 6/30/06: – 37 Companies, or $185,00037 Companies, or $185,000

WashingtonWashington• Signed by governor on 3/24/06Signed by governor on 3/24/06

– 44thth major state electronics recycling program major state electronics recycling program – Different than other 3 in significant waysDifferent than other 3 in significant ways

• Producer Responsibility with defaultProducer Responsibility with default– Manufacturer responsible for “equivalent share” Manufacturer responsible for “equivalent share”

either on own or pay into State TPOeither on own or pay into State TPO– No collection goal, but must meet your % at year’s No collection goal, but must meet your % at year’s

end or pay penalty (refund if collecting more than end or pay penalty (refund if collecting more than %)%)• Orphans must be calculated by DOEOrphans must be calculated by DOE

– Covers Covers CA/ME products + DesktopsCA/ME products + Desktops– Ban on exports to developing countries according Ban on exports to developing countries according

to Basel Conventionto Basel Convention [VETOED] [VETOED]– Programs must be effective Jan 2009Programs must be effective Jan 2009

Disposal BansDisposal Bans

• In effectIn effect– California: CRTs and all consumer electronic California: CRTs and all consumer electronic

devicesdevices– Massachusetts: CRTsMassachusetts: CRTs– Maine: CRTsMaine: CRTs– Minnesota: CRTsMinnesota: CRTs

• UpcomingUpcoming– Rhode Island: CRTsRhode Island: CRTs– New Hampshire (video display devices)New Hampshire (video display devices)– Arkansas: authority to DEQ in 2008Arkansas: authority to DEQ in 2008

Comparing the FinancingComparing the Financing• CA: Point of Sale fee, to state agency, all CA: Point of Sale fee, to state agency, all

sellers and salessellers and sales

• ME: No state funding, or manufacturer ME: No state funding, or manufacturer registration fees, Municipalities fund registration fees, Municipalities fund household collection, manufacturers from household collection, manufacturers from consolidation onconsolidation on

• MD: Annual manufacturer registration fee, MD: Annual manufacturer registration fee, state agency administrationstate agency administration

• WA: Annual manufacturer registration fee + WA: Annual manufacturer registration fee + all costs for meeting “equivalent share” on all costs for meeting “equivalent share” on own or through new quasi-government TPOown or through new quasi-government TPO

Financing-Specific Financing-Specific Challenges Challenges

• CA: Can’t enforce on out of state CA: Can’t enforce on out of state sellerssellers

• ME: No funds for collection, finding and ME: No funds for collection, finding and enforcing on manufacturers out of enforcing on manufacturers out of country, reliable orphan datacountry, reliable orphan data

• MD: Finding manufacturers with MD: Finding manufacturers with different product scope, funding different product scope, funding insufficient for major state programinsufficient for major state program

• WA: State setting “equivalent share,” WA: State setting “equivalent share,” unknown total quantities, unknown total quantities, finding/enforcing on manufacturersfinding/enforcing on manufacturers

Patchwork StudyPatchwork Study• NCER initiative under National NCER initiative under National

Electronics Recycling Infrastructure Electronics Recycling Infrastructure ClearinghouseClearinghouse– www.ecyclingresource.orgwww.ecyclingresource.org

• ID and quantify “dead weight” costs of ID and quantify “dead weight” costs of differing state programsdiffering state programs– Sought input from all stakeholdersSought input from all stakeholders– Assumes 2 additional states by 2012Assumes 2 additional states by 2012

• Preliminary results (to debut at E-Scrap)Preliminary results (to debut at E-Scrap)– Recurring costs per year: $25 millionRecurring costs per year: $25 million– One time costs per new state: $3 millionOne time costs per new state: $3 million

Proposed Legislation 2006Proposed Legislation 2006

Legislation in 2006Legislation in 2006• Over 25 states have introducedOver 25 states have introduced

– Not including carryover bills from 2005Not including carryover bills from 2005

• Types of BillsTypes of Bills– Advanced recovery fees – at POS and Advanced recovery fees – at POS and

Manufacturer/first point of possessionManufacturer/first point of possession•With and without TPOWith and without TPO

– Producer responsibility, many variationsProducer responsibility, many variations– Studies, commissions & task forcesStudies, commissions & task forces– Landfill &/or incineration bansLandfill &/or incineration bans– California amendments (product scope, California amendments (product scope,

material restrictions)/Maine amendmentsmaterial restrictions)/Maine amendments

Regional Model Legislation Regional Model Legislation and Study Committeesand Study Committees

NERC/Council of State NERC/Council of State GovernmentsGovernments

• Northeast Recycling Council/Council of Northeast Recycling Council/Council of State Governments InitiativeState Governments Initiative

• 10 states coordinated to develop on 10 states coordinated to develop on regional electronics recycling model regional electronics recycling model legislationlegislation

• New England (including Maine), New New England (including Maine), New York, New Jersey, Pennsylvania, York, New Jersey, Pennsylvania, DelawareDelaware

NERC/Council of State NERC/Council of State GovernmentsGovernments

• StatusStatus– Introduced in Delaware, NY Introduced in Delaware, NY

• Basic elementsBasic elements– Same scope as WA bill- desktop, monitors, TVsSame scope as WA bill- desktop, monitors, TVs

• Financing model:Financing model:– Manufacturer pays $5k registration to State, ANDManufacturer pays $5k registration to State, AND

– Fee for its “obligation” OR collect/recycle Fee for its “obligation” OR collect/recycle equivalent amount; formula for obligation based equivalent amount; formula for obligation based on recycling rateon recycling rate

– TPO optional for state, can coordinate with multi-TPO optional for state, can coordinate with multi-state entitystate entity

Midwest Regional Electronic Midwest Regional Electronic Waste Recycling Policy Waste Recycling Policy

InitiativeInitiative• State agencies, not legislators worked on regional State agencies, not legislators worked on regional

model similar to NERC/ERC: Minnesota, Michigan, model similar to NERC/ERC: Minnesota, Michigan, Illinois, Wisconsin, Ohio, and IowaIllinois, Wisconsin, Ohio, and Iowa

• Drafted legislation, but released “policy statement”Drafted legislation, but released “policy statement”

• Elements of policy statement:Elements of policy statement:– Same product scope as NERC/ERC and WASame product scope as NERC/ERC and WA

– Manufacturer pays registration fee and must Manufacturer pays registration fee and must collect/recycle their obligation; own program or fee to statecollect/recycle their obligation; own program or fee to state

– Obligation based on previous year’s salesObligation based on previous year’s sales

– States may choose to authorize TPO and/or multi-state States may choose to authorize TPO and/or multi-state entityentity

Federal Legislative ActivityFederal Legislative Activity

Congressional Hearings!Congressional Hearings!

• 2005: E-Waste Working Group formed 2005: E-Waste Working Group formed – four House Representatives– four House Representatives– 2 Hearings in House, one in Senate2 Hearings in House, one in Senate

• Bills in House and Senate, not movingBills in House and Senate, not moving– 1 ARF, two based on tax credits for 1 ARF, two based on tax credits for

manufacturers and/or consumersmanufacturers and/or consumers

• Meeting held September 13Meeting held September 13– Another scheduled for mid-NovemberAnother scheduled for mid-November– Goal of WG is legislation introduced next Goal of WG is legislation introduced next

sessionsession

Other Federal ActivityOther Federal Activity

• EPA Baseline Data ReportEPA Baseline Data Report

• Department of Commerce Report Department of Commerce Report

• Government Accountability Office Government Accountability Office 2005 Report2005 Report

Conclusions/OutlookConclusions/Outlook• More to learn in 2007More to learn in 2007

– CA implementation compared to MD/MECA implementation compared to MD/ME– Maine/Maryland begin implementationMaine/Maryland begin implementation– Movement towards WA implementationMovement towards WA implementation

• More state programs? More state programs? – MA, MN, WI, MI, ORMA, MN, WI, MI, OR– Pressure on RI, NH from 2006 billsPressure on RI, NH from 2006 bills– Will NERC/ERC model move in Northeast?Will NERC/ERC model move in Northeast?

• Will Congress move on legislation?Will Congress move on legislation?– Funding hard to come by in current climateFunding hard to come by in current climate– Will increasing state differences lead to more Will increasing state differences lead to more

national action?national action?

Thank You!Thank You!

Jason LinnellJason LinnellNCERNCERPhone: (304) 699-1008Phone: (304) 699-1008jlinnell@electronicsrecycling.orgjlinnell@electronicsrecycling.org