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Covered Electronic Waste Covered Electronic Waste Recycling System UpdateRecycling System Update

ESJPA MeetingESJPA MeetingMay May 1717, 2007, 2007

Jeff Hunts / Matt McCarron

www.ciwmb.ca.govwww.eRecycle.org

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CEW Recycling SystemCEW Recycling SystemConsumer RetailerFee paid

at purchase

Remits fee (Quarterly)

Deposits fee

Program Implementation

Permitting+ Inspections

Fee Collection

Recycling payment(48¢/lb)

Recovery payment(20¢/lb)

IWMBDTSC

BOE

Recyclers Collectors

E-Waste Account

USED item recycled as “E-Waste”

NEW itempurchased

E-Waste

Electronics$$

Payment Claim

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Covered Electronic Waste Covered Electronic Waste (CEW)(CEW)

SB 20/50 - Covers specific devicesSB 20/50 - Covers specific devices– Video Display Devices with screens over Video Display Devices with screens over

4” listed by Department of Toxic 4” listed by Department of Toxic Substances Control (DTSC)Substances Control (DTSC)

– CRTs, CRT Monitors and TVs, LCD CRTs, CRT Monitors and TVs, LCD Monitors and TVs, Laptops, Plasma TVs, Monitors and TVs, Laptops, Plasma TVs, and as of July 1and as of July 1stst, portable DVD players, portable DVD players

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Fee CollectionFee CollectionAdvanced Recovery Fee- $6 to $10 Advanced Recovery Fee- $6 to $10 (screen size)(screen size)– Fee collected at the point of sale by the Fee collected at the point of sale by the

retailerretailer– Retailer must collect when tax “nexus” Retailer must collect when tax “nexus”

with state existswith state existsRetailers remit to Board Of EqualizationRetailers remit to Board Of Equalization Revenue ~ $78 M annuallyRevenue ~ $78 M annuallyPrudent fund reserve left from start upPrudent fund reserve left from start up

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Responsibility Under the ActResponsibility Under the Act

CollectorsCollectors– Provide cost free opportunityProvide cost free opportunity– Document the source of the materialsDocument the source of the materials– Handle materials as required by DTSCHandle materials as required by DTSC– Report annually on Net CostsReport annually on Net Costs

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Responsibility Under the ActResponsibility Under the Act

RecyclersRecyclers– All the requirements of a Collector, plusAll the requirements of a Collector, plus– Cancellation of CEWs in CaliforniaCancellation of CEWs in California– Ship glass & other residuals for further Ship glass & other residuals for further

treatmenttreatment– Submit a claim documenting Submit a claim documenting everythingeverything

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Approved ParticipationApproved Participation

Infrastructure Growth Infrastructure Growth – 2005 2005

97 collectors & 20 recyclers97 collectors & 20 recyclers– 20062006

320 collectors & 40 recyclers320 collectors & 40 recyclers– CurrentlyCurrently

563 collectors & 60 recyclers563 collectors & 60 recyclersNot all are “active”Not all are “active”

List of Approved ParticipantsList of Approved Participants– www.ciwmb.ca.gov/Electronics/Act2003/www.ciwmb.ca.gov/Electronics/Act2003/

RecoveryRecovery

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Volume of CEW’s RecycledVolume of CEW’s Recycled

20052005– 64 million pounds 64 million pounds 20062006– 127 million pounds127 million pounds2007 2007 – 23.5 million pounds to date23.5 million pounds to date

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1st qtr.2nd qtr.

3rd qtr.4th qtr.

$12,067,981.36

$14,410,977.70

$17,187,202.49$17,570,027.82

$4,269,568.27$7,197,405.04 $8,271,384.74

$11,370,201.30

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

$18,000,000.00

CIWMB E-Waste: Growth in first two years of Program

2005 MoniesClaimed2006 MoniesClaimed* The effective date of Final Regulations, may be affecting growth rate.

283% growth 200% growth 208% growth 155% growth*

CEW System GrowthCEW System Growth

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Looking AheadLooking AheadMarkets – especially for CTR glassMarkets – especially for CTR glass– Glass-to-glass?Glass-to-glass?– Lead smelting?Lead smelting?

Due diligence on fate of residualsDue diligence on fate of residualsDigital TV Broadcast (Feb 7, Digital TV Broadcast (Feb 7, 2009)2009)Proposed Legislation – AB 1535Proposed Legislation – AB 1535– Expands covered devices: “personal computer”Expands covered devices: “personal computer”

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Looking AheadLooking AheadPromote Promote www.eRecycle.orgwww.eRecycle.org Enhance Fraud Detection Enhance Fraud Detection – Standardize data trackingStandardize data tracking– Audit original documentationAudit original documentation

Enforce sales banEnforce sales banContinue to participate in Continue to participate in national dialoguenational dialogueCost of recycling and fund Cost of recycling and fund conditioncondition

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Net Cost ReportsNet Cost ReportsDDue March 1ue March 1stst annually annuallyCompliance less than stCompliance less than stellar ellar – Revocations in 2005 and 2006 report Revocations in 2005 and 2006 report

yearsyearsAnalAnalysis of reportsysis of reports– 2005 complete2005 complete– 2006 underway2006 underway– Item to CIWMB Board in JulyItem to CIWMB Board in July

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Net Cost ReportsNet Cost Reports

FindingsFindings– Size matters: Net costs vary widely across Size matters: Net costs vary widely across

reporting organizationsreporting organizations– Current standard payment rates more than Current standard payment rates more than

cover typical reported net costscover typical reported net costs– Proposals for a “reasonable rate of profit” vary Proposals for a “reasonable rate of profit” vary

considerablyconsiderably

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Net Cost ReportsNet Cost Reports

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Net Cost ReportsNet Cost ReportsTrends and ConsiderationsTrends and Considerations– The California electronics recycling industry is The California electronics recycling industry is

growing steadily, evolving rapidly.growing steadily, evolving rapidly.– Intense competition among recyclers is driving up Intense competition among recyclers is driving up

prices paid to collectors. prices paid to collectors. – Many participants compelled by market competition, Many participants compelled by market competition,

customer demand to handle other electronics waste.customer demand to handle other electronics waste.– Changing technologies for monitors and televisions Changing technologies for monitors and televisions

will ultimately alter the economics of electronics will ultimately alter the economics of electronics recycling.recycling.

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Questions?Questions?