Resource Recycling Magazine State of Affairs in Electronics Recycling Advancing Electronics Recycling in the Midwest December 11, 2002

Resource Recycling Magazine

State of Affairs in Electronics Recycling

Advancing Electronics Recycling in the Midwest

December 11, 2002


Outline

Description of the issue Current status Four prevailing myths Nine issues and forecasts Discussion


Description of the Issue

E-scrap is a sleeper waste Rising attention to e-waste issues Concern over loss of resources:

-- base metals (copper, aluminum, etc.) -- precious metals (gold, silver, palladium, etc.) -- plastics -- glass



Concern over toxicity, especially from the lead used in CRTs: -- 4 to 8 pounds of lead in TVs and computer monitors -- largest single source of lead in municipal solid waste (about 30%) -- funnel glass can contain as much as 75 ppm of leachable lead



Magnitude of the problem: -- two million tons per year of e-scrap -- 20 million PCs become obsolete per year -- e-scrap is accumulative -- low recovery rate from homes, small businesses, etc.


Current Status

About 500 U.S. firms provide e-scrap recycling services: -- brokering -- sale of whole operating units -- refurbishing -- disassembly to remove reusable parts -- disassembly to capture recyclables -- shredding


Current Status

Barriers exist in e-scrap recovery: -- scrap moves to cheapest reclaimer -- declining value of scrap (less gold, silver, etc.) -- plastics are a problem for many reclaimers -- unstable political and regulatory climate inhibits investment


Current Status

Institutional/corporate recovery: -- large generators with high-end equipment are fairly well served -- large-scale international reuse market seeks this scrap

-- yields from demanufacturing are high (hard drives, circuit boards, etc.)


Current Status

Smaller generators are provided fee-based service

Capture of residential e-scrap requires governmental involvement

E-scrap is the waste of the decade (beverage containers in the ’70s, paper in the ’80s, organics in the ’90s)


Current Status

Local collections are increasing: -- in about 1,000 communities in 2002 -- typically one-day event -- about one percent participation -- at a cost of about $300 per ton -- programs tend to be in suburban communities -- trend toward permanent sites


Current Status

Rising involvement of OEMs -- many already operate take back of leased units -- many are moving into fee-based recovery systems (Hewlett-Packard, IBM, Dell) -- others participate in local collection events (Panasonic, Sharp, Sony)


Prevailing Myths

Myth 1: Rising volumes -- computer sales declined last year and

also this year -- effect of Y2K investments -- slow down in introduction of new software and hardware -- consumer satisfaction with existing systems


Prevailing Myths

Myth 2: Rapid technological change -- we’ve been hearing about HDTV for

five years -- flat panel sales are restricted by high

cost versus CRTs -- technological change is slower than commonly thought


Prevailing Myths

No. of years to attain 25% of market

Year YearsTelephone 1875 35Automobile 1885 55Airplane 1903 54Radio 1906 22Television 1925 26VCR 1952 34Microwave oven 1953 30 Personal computer 1975 15Cellular phone 1983 15DVD player 1996 6


Prevailing Myths

Myth 3: E-scrap management is an immense environmental problem -- some environmental groups overstate the effects of e-waste disposal -- the data in this field is very poor -- the politics of e-waste management have taken precedence over the science


Prevailing Myths

Myth 4: There’s gold in garbage: -- OEMs are putting less recoverable materials in electronics -- even charities do not seek most types of obsolete working computers (those more than three years old) -- current reuse levels from e-scrap collection events are about 10 percent


Issues and Forecasts: No 1

Product stewardship is the prime issue Take back systems operate in a number

of countries (Belgium, Japan, The Netherlands, Norway, Sweden, etc.)

Japan’s system will expand next year A European Union system will be

implemented by 2006 Canada is moving forth


Issues and Forecasts: No. 1

The National Electronic Product Stewardship Initiative may establish a similar system in the U.S.

Nearly 50 members are involved, principally from three sectors: industry, environmental groups, and state and local government


Issues and Forecasts: No.1

NEPSI agreement so far: front-end financed fee followed by cost internalization third-party national organization shared responsibility supportive federal legislation



Forecast: -- NEPSI negotiations will take longer than planned -- a basic agreement will be reached for the recovery of CPUs, CRTs and TVs – it will be a shared-responsibility model; full producer responsibility is unlikely in the U.S.



E-waste exports are an emotional issue The BAN report and video were

extremely powerful But they over simplify the reality of e-

scrap exports and over state the problem

However, e-waste generators are now very concerned



Forecast: -- whole-unit, mixed-load shipments will decline -- shipments of individual scrap materials will continue -- domestic operations will change -- efforts will be made to gather better data on the extent of the problem



But then, what do we really know about current domestic operations? -- lead glass processing concerns -- disease from processing scrap containing beryllium -- crude precious metals recovery methods -- fly-by-night operators living off of fees



Forecast: -- certification efforts will rise (IAER environmental audit, ISO 9000 and 14000 certification, ESM systems, etc.) -- some states will get involved (NC, PA) -- this will lead to an increase in processing costs



Legislative momentum is at hand Major bills were considered in several

states (CA, MA, NC, NY, etc.) Generally focus on CRTs:

-- impose a fee on sales of new CRTs -- use funds to establish recovery systems



Forecast: -- as part of a strategy to exert additional

pressure on OEMs and retailers, several states will approve measures -- given recent Hewlett-Packard announcement, California will be the principal battle ground



Regulatory approaches are being considered: -- again, they typically focus on CRTs -- they commonly entail adding CRTs to universal waste rules -- however, Massachusetts has banned CRT disposal -- EPA has introduced a draft regulation



Forecast: -- concern was heard that the proposed EPA rule will increase exports -- thus, adoption of EPA rules will take longer than anticipated -- a number of states will adopt interim rules (OR, WA, etc.)



Prison labor concerns will be in the news this year

Some consider e-scrap prison factories to be “high-tech sweat shops”

That said, UNICOR is a major player in the reclamation industry



Forecast: -- this issue will not garner the attention generated by the e-waste export issue -- pressure will be exerted on e-scrap generators to avoid the use of prison factories



Current collection and processing methods are inadequate

Recovery levels are low and costs are high

Processing fees are moving upwards With so much up in the air, investment

levels remain weak



Forecast: -- we’ll plod along for another few years -- permanent collection facilities will grow in number -- states will increase their role, through grants (FL, IA, IN, NE, NY, OH) or statewide coordinated campaigns (CO, MD)



Forecast: -- the product stewardship end game in the U.S. and Canada will determine the ultimate collection and processing system -- the final system will be unlike today’s



The marketplace will change Many folks are watching e-scrap issues

for possible business opportunities Forecast:

-- industry consolidation will occur -- just as it has in electronics manufacture



The majority of the market for some electronics is held by just two firms: -- PCs: Dell, H-P/Compaq -- Cell phones: Nokia, Motorola -- Fax machines: Panasonic, Brothers -- Printers: H-P/Compaq, Lexmark



We may be producing ever-harder-to- recycle electronics

If OEMs are not involved in the recovery system, they may not receive sufficient design-for-recycling (DfR) economic pressure



Forecast: -- a shared responsibility model will not provide much momentum for DfR -- however, OEMs are international players -- and OEMs in Japan and elsewhere operate e-scrap processing systems – DfR will be addressed internationally


Discussion

Contact information:

Jerry Powell, EditorE-Scrap News

P.O. Box 42270Portland, OR 97242(503) 233-1305; 233-1356 [email protected]

Documents

Resource Recycling Magazine State of Affairs in Electronics Recycling Advancing Electronics Recycling in the Midwest December 11, 2002