U.S. CRT Glass Management - transparentplanetllc.com

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U.S. CRT Glass Management A!bellwether!for!sustainability!of!electronics!recycling!in!the!United!States!

!December!5,!2012!

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CONTENTS

EXECUTIVE SUMMARY 4!

Background! 4!

Summary! 5!

DEFINITIONS 8!

ELECTRONICS RECYCLING LEGISLATION IN THE US 9!

Current!Legislative!Landscape! 9!

How!Legislated!Take!Back!Programs!Differ! 10!

Evaluating!Legislated!TakeJBack!Programs! 11!California’s!ARF!Program! 11!State!Controlled!Manufacturer!TakeJBack!Model! 13!Privately!Controlled!(OEM)!Manufacturer!TakeJBack!Model! 15!State!TakeJBack!Volumes! 17!

MARKET FACTORS IMPACTING CRT RECYCLING 18!

GlassJtoJGlass!Markets! 18!

Lead!Smelters! 20!

FACTORS CONTRIBUTING TO CRT GLASS STOCKPILING 22!

TakeJBack!Legislation!Attracts!New!Recyclers/Attracts!Unscrupulous!Activity! 22!

OEMs!Driving!Down!Costs! 23!

Lack!of!eJRecycler!Monitoring! 24!

Making!Manufacturer!TakeJBack!Work…!On!Paper! 26!Air!Pounds! 26!


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Ghost!Weight! 27!

Stockpiling!–!An!ARF!Problem!Too! 28!

COST OF CRT GLASS RECYCLNG 29!

CURRENT CRT VOLUMES & EFFECTIVE CAPACITY FOR CRT RECYCLING IN NORTH AMERICA 31!

CRT!Glass!Industry!Estimates!on!Stockpiles! 31!

Estimated!Recycling!Costs!for!TakeJBack!Glass!Stores! 32!

US CRT PROCESSORS 33!

CURRENT & FUTURE US CRT GLASS PROCESSORS 34!

TAKE-BACK CRT GLASS VOLUMES AND EFFECTIVE MARKET CAPACITY 36!

CRT!Volumes!from!Legislated!TakeJBack!Programs! 36!

Leaded!Glass!Volume!and!Effective!Market!Capacity! 37!Other!Potential!Capacity! 38!

FACTORS CONSTRICTING EFFECTIVE CAPACITY OF CRT GLASS MARKET 39!

Threat!of!Competition!from!Landfills! 39!California’s!Emergency!Landfill!Rule! 40!

Future!Diminishing!Supply!of!Used!CRTs!Worldwide! 41!

ADDRESSING THE STOCKPILING PROBLEM: ACTION PLANS FOR STATES AND THE FEDERAL GOVERNMENT 41!

States!Action!Plan! 41!

Federal!Action!Plan:!All!Stockpiling!is!Not!Created!Equal! 42!The!CRT!Rule! 43!Suggested!Improvements!in!the!CRT!Rule! 43!


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STEPS FOR IMPROVING TAKE-BACK PROGRAMS 44!

Understanding!the!True!Cost!of!Recycling!–!Know!the!Math! 44!

Designing!TakeJBack!Program!Requirements!to!Minimize!Fraud! 45!Preventing!Ghost!Weight! 45!Eliminating!Paper!Transactions! 45!

ThirdJParty!Mass!Balance!Monitoring! 45!

Lessons!Learned! 46!

THE CASE AGAINST LANDFILLING: THE RACE TO THE BOTTOM 47!

Preventing!Investment!in!New!Technology! 47!Loss!of!$!Billions!in!Recoverable!Resources!J!$!Billions!in!Remediation!Costs! 47!Job!Loss! 47!

Impacts!on!National!Progress!in!eJRecycling! 49!NEPSI! 49!eJRecycler!Certification! 49!The!Obama!Proclamation! 49!USEPA!Waste!Management!Hierarchy! 50!

Steps to Nationally Sustainable e-Waste Management 51!

Increasing!TakeJBack!Quantity,!Improving!Quality! 51!

Diverting!eJWaste!from!Landfills! 53!

About TransparentPlanet 54!

Consulting!Services! 54!

ThirdJ!Party!Mass!Balance!Monitoring! 54!!


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The$purpose$of$this$report$is$to$

daylight$the$problems$and$

stimulate$discussion$and$action$

among$all$stakeholders$toward$

developing$long9term$solutions.$

EXECUTIVE SUMMARY !

Background

Since!states!began!legislating!electronics!recycling,!or!“takeJback”!programs!in!2003,!vulnerabilities!in!the!programs!have!contributed!to!a!number!of!problems.!Minimal!or!nonJexistent!program!oversight!coupled!with!strains!on!cathode!ray!tube!(CRT)!markets!has!produced!large!inventories!of!CRT!glass!that!are!being!stored!by!recyclers!rather!than!recycled.!Neither!the!responsible!agencies!in!states!where!these!stockpiles!reside,!nor!the!electronics!manufacturers!that!hire!the!recyclers!to!run!the!takeJback!programs!in!many!states,!have!been!made!fully!aware!of!this!growing!and!very!expensive!problem.!

In!August!of!2012,!a!number!of!CRT!tube!processors!and!CRT!glass!processors!began!discussing!how!they!might!effectively!inform!states,!manufacturers!and!the!federal!government!of!the!problem!and!effect!change.!They!contacted!TransparentPlanet!for!assistance!in!facilitating!dialog!among!the!companies!and!producing!a!report!to!be!issued!by!TransparentPlanet!on!their!behalf.!Their!goal!was!not!to!implicate!any!party!in!particular,!but!to!explain!the!confluence!of!factors!leading!to!the!problems!and!to!work!with!the!parties!to!develop!and!implement!viable,!longJterm!solutions.!

All!of!the!CRT!recyclers!had!witnessed!the!glass!storage!problem!becoming!increasingly!problematic!at!a!growing!number!of!client!locations.!Many!companies!with!large!inventories!wanted!to!ship!the!glass,!but!with!perJpound!transportation!and!recycling!costs!ranging!from!$.13!to!$.53/pound!(depending!upon!material!condition),!some!were!looking!at!expenses!in!the!hundreds!of!thousands!of!dollars.!As!a!result,!the!stockpiles!simply!continued!to!grow.!

At!the!same!time,!California!proposed!to!implement!an!emergency!regulation!to!allow!for!hazardous!waste!landfilling!of!CRT!glass,!citing!lack!of!capacity!in!the!CRT!recycling!market!as!the!reason.!Yet!all!of!these!CRT!recyclers!had!available!processing!capacity!and!were!looking!for!more!material!to!process.!!

The!CRT!recyclers!needed!to!get!the!attention!of!the!states!and!the!manufacturers!to!make!them!aware!of!the!growing!problem!of!stockpiling!and!to!inform!them!that!there!was!capacity!to!properly!process!all!of!the!glass!coming!from!legislated!programs.!!What!they!did!not!want!to!do,!however,!was!


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to!implicate!the!recyclers!holding!the!inventories!or!the!electronics!manufacturers,!both!of!whom!are!also!customers.!They!commissioned!TransparentPlanet!to!get!the!message!out!on!their!behalf.!

The!following!report!was!compiled!on!behalf!of!CEO’s!and!senior!executives!of!eight1!(8)!companies!in!the!business!of!recycling!CRTs!from!TVs!and!computer!monitors,!in!cooperation!with!the!ELECTRONICS!TakeBack!Coalition!and!the!National!Center!of!Electronics!Recycling.!Participants!include!representatives!of!the!largest!processors!of!CRT!tubes!and!CRT!glass!in!the!world!along!with!smaller!businesses!experiencing!the!same!challenges.!!

This!report!should!be!considered!a!“work!in!progress”.!Since!these!problems!are!new,!it!is!likely!that!additional!data!will!be!collected!and!contributions!by!more!stakeholders!will!help!further!frame!the!picture!of!the!current!state!of!CRT!recycling!in!the!US.!The!purpose!of!this!report!is!to!daylight!the!problems!and!stimulate!discussion!and!action!among!all!stakeholders!toward!developing!longJterm!solutions.!

Summary Disposal!of!cathode!ray!tubes!(CRTs),!the!main!component!of!televisions!and!computer!monitors,!poses!the!biggest!challenge!among!all!types!of!obsolete!electronics.!The!glass!tubes!contain!an!average!of!4!pounds!of!lead,!which!is!very!toxic.!When!disposed!of,!federal!laws!regulate!CRT’s!as!a!hazardous!waste.!

To!address!this!growing!and!toxic!component!of!the!solid!waste!stream,!24!US!states!have!passed!various!forms!of!legislation!mandating!recycling!of!CRTs!and!other!eJwaste.!All!but!one!of!these!programs!(California)!requires!manufacturers!to!pay!the!cost!of!recycling!designated!products.!

These!programs!began!to!emerge!at!the!same!time!that!market!conditions!for!recycling!CRTs!were!rapidly!changing.!Sales!of!CRT!devices!(TVs!and!monitors)!began!to!fall!as!flat!panel!devices!with!LCD!screens!came!on!the!market.!New!unit!sales!accelerated!in!2009!during!the!digital!conversion!of!TV!broadcast!signal.!!

With!shrinking!demand!for!CRT!products,!the!demand!for!used!CRT!glass!for!“glass!to!glass”!recycling!also!began!to!disappear.!State!takeJback!laws!did!not!anticipate!the!kinds!of!fraudulent!activity!and!stockpiling!of!CRT!glass!(collected!for!recycling)!that!would!result!from!the!disappearing!markets!for!

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1!As!of!the!date!of!this!report,!10!companies!are!participating!in!this!process.!!Two!(2)!are!CRT!glass!processors,!7!are!CRT!tube!processors!and!one!performs!both!tube!and!glass!processing.!


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CRT$industry$experts$estimate$

that$660$million$pounds$of$CRT$

glass$are$currently$being$stored$

at$locations$throughout$the$US.$$

It$will$cost$between$$85$million$

and$$360$million$to$responsibly$

recycle$all$of$this$stockpiled$

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Problems$with$state$take9back$

programs$must$be$addressed$

now$to$eliminate$stockpiles$

while$traditional$CRT$glass$

markets$remain$viable.$

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CRT!glass.!Fraudulent!activity!can!be!addressed!with!specific!program!fixes,!but!stockpiling!of!CRT!glass!is!the!result!of!a!number!of!factors,!not!the!least!of!which!is!that!glass!that!once!produced!revenue!for!recyclers!now!costs!money!to!recycle.!

Aside!from!disappearing!glassJtoJglass!markets,!a!number!of!other!factors!are!contributing!to!stockpiling!of!CRT!glass.!TakeJback!legislation!with!minimal!or!no!oversight!of!recyclers!invites!illicit!activities!that!add!costs!and!undermine!programs.!This!report!shows!that!closer!oversight!can!correct!problems!that!have!compromised!the!integrity!of!some!takeJback!programs.!

CRT!industry!experts!estimate!that!660!million!pounds!of!CRT!glass!are!currently!being!stored!at!locations!throughout!the!US.!!It!will!cost!between!$85!million!and!$360!million!to!responsibly!recycle!all!of!this!stockpiled!glass,!depending!upon!the!condition!of!the!glass.!

There!are!currently!16!companies!with!24!US!facilities!processing!CRT!tubes!in!preparation!for!final!recovery.!None!of!these!are!operating!at!capacity!in!spite!of!what!would!seem!to!be!a!huge!market!demand.!They!simply!cannot!compete!with!stockpiling.!

There!are!3!lead!smelters!in!North!America!and!one!glassJtoJglass!operation!in!India!that!currently!service!the!US!CRT!recycling!market.!These!also!serve!other!global!CRT!recycling!markets.!Three!new!companies!have!entered!the!US!market!and!are!in!varying!stages!of!readiness!toward!recovering!lead!and!glass!from!CRTs.!

With!such!demand!for!CRT!recovery,!one!might!assume!that!a!much!larger!number!of!new!CRT!recovery!businesses!would!be!emerging.!But!with!the!number!of!CRTs!to!eventually!decline!as!manufacturing!of!new!CRTs!declines,!investors!are!hesitant!to!support!recovery!technology!with!a!feedstock!destined!to!disappear!over!the!next!decade!or!so.!They!are!also!wary!of!competing!with!landfilling!of!CRT!glass,!which!is!still!legal!for!household!generated!waste!in!a!number!of!states!and!has!been!approved!in!California!as!a!means!of!easing!the!backlog!of!glass!there.!However,!with!at!least!10!years!of!strong!demand!remaining,!savvy!investors!should!see!a!healthy!return!on!investment.!


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If$action$is$delayed$until$the$

glass9to9glass$market$

disappears,$there$truly$will$be$a$

tsunami$of$CRTs$with$no$viable$

recovery$options.$

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There!are!CRT!glass!recovery!technologies!that!produce!reusable!lead!and!glass!products!rather!than!feedstock!for!new!CRTs.!Some!of!these!are!also!capable!of!recovering!nonJCRT!materials,!so!a!diminishing!CRT!feedstock!is!not!as!great!a!concern.!Yet,!little!is!being!done!to!support!development!of!these!technologies!and!the!threat!of!competition!from!landfills!has!all!but!extinguished!some!entrepreneurs’!expectations!for!raising!capital.!

The!only!company!in!the!world!with!onJgoing!demand!for!CRT!cullet!for!use!in!manufacturing!new!CRTs!is!located!in!India.!The!company’s!affiliate!operation!in!Mexico!that!processes!CRT!glass!from!North!America!for!final!recovery!in!India!is!permitted!to!import!108,000!tons!per!year!of!CRT!glass!from!the!US!into!Mexico.!Yet!that!capacity!has!not!been!reached,!as!many!recyclers!in!the!US!(their!primary!source!of!material)!continue!to!accumulate!material!rather!than!ship!for!recycling.!And!company!representatives!report!that!the!import!permit!can!be!readily!expanded!if!more!material!from!the!US!was!available!for!recycling.!!

Right!now,!there!is!a!window!of!opportunity!to!take!steps!to!ensure!that!leaded!glass!from!CRTs!does!not!become!destined!for!landfills!after!years!of!progress!in!preventing!that.!Problems!with!state!takeJback!programs!can!be!addressed!so!that!glass!starts!moving!out!of!stockpiles!and!into!existing!markets.!These!steps!must!be!taken!now,!while!old!CRTs!can!still!be!consumed!for!production!of!new!CRTs.!If!action!is!delayed!until!that!market!disappears,!there!truly!will!be!a!tsunami!of!CRTs!with!no!viable!recovery!options.!But!if!takeJback!programs!are!working!effectively!and!landfilling!in!states!is!banned,!new!capacity!will!be!created!to!properly!recover!the!glass,!conserve!resources,!create!job!growth!and!protect!the!environment.!


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DEFINITIONS Advance!Recycle!Fee!(ARF).!A!legislated!recycling!program!where!consumers!pay!a!fee!into!a!recycling!fund!when!they!purchase!certain!new!electronic!devices.!The!fund!is!used!to!reimburse!eJwaste!recyclers!and!collectors!for!costs!related!to!recycling!covered!products.!

CRT!tube!processor!–!A!company!that!receives!intact!CRT!tubes,!and!products!containing!the!tubes!(e.g.!TVs!and!monitors)!and!prepares!the!glass!for!final!processing.!This!can!be!accomplished!by!separating!the!funnel!glass!from!the!panel!glass,!sometimes!cleaning!the!glass,!or!shredding!the!glass!for!shipment!to!lead!smelters.!

CRT!glass!processor!–!CRT!Glass!Processors!usually!receive!glass!from!CRT!tube!processors!that!has!been!prepared!for!final!recovery.!!Many!also!receive!whole!tubes,!acting!as!a!CRT!tube!processor!as!well.!CRT!Glass!Processors!send!glass!to!be!manufactured!into!new!CRTs!or!for!processing!in!lead!refineries.!

Cullet!–!Glass!that!has!been!sorted!and!cleaned!to!furnace!specifications,!rendering!it!furnace!ready!and!ready!to!be!recycled.!!

Effective!capacity!–!The!capacity!of!a!facility!to!process!material!considering!various!external!factors!including!permit!and!regulatory!restrictions!and!feedstock!pricing.!

Extended!Producer!Responsibility!(EPR)!–!A!concept!that!holds!the!manufacturers!of!products!responsible!for!taking!back!and!recycling!their!old!products!when!consumers!no!longer!have!use!for!them.!This!report!speaks!to!EPR!laws!for!electronics,!but!there!are!also!EPR!laws!for!other!products.!!

Electronics!TakeBack!Coalition!A!(ETBC).!!A!nonJprofit!national!coalition!in!the!US!that!promotes!green!design!and!responsible!eJrecycling!including!development!of!public!policy!requiring!that!OEMs!take!responsibility!for!the!full!lifeJcycle!of!their!products.!

GlassAtoAglass!recycling!–!Manufacture!of!new!CRTs!from!recycled!CRT!glass.!

Liquid!Crystal!Display!A!(LCD).!Newer,!flatJpanel!technology!made!with!liquid!crystals,!which!has!replaced!CRTs!in!TVs!and!monitors!and!is!also!used!in!smart!phones!and!many!other!electronic!devices.!!

Mass!balance!–!An!accounting!of!the!weight!of!all!materials!that!flow!into!and!out!of!electronic!recycling!facilities.!What!goes!in!should!equal!what!goes!out.!Imbalances!could!signal!stockpiling.!

National!Center!for!Electronics!Recycling!–!(NCER).!A!nonJprofit!organization!dedicated!to!the!development!and!enhancement!of!a!national!infrastructure!for!eJrecycling!in!the!US.!!


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Original!Equipment!Manufacturer!A!(OEM).!Manufacturers!of!electronics!covered!by!the!programs.!Also!called!Brand!Owners.!

Primary!recycler!–!The!electronics!recycler!that!contracts!directly!with!the!OEM!to!service!the!OEM’s!eJrecycling!obligations!in!a!given!state!or!states.!

Resource!Conservation!&!Recovery!Act!–!(RCRA).!Generally!refers!to!a!series!of!federal!laws!and!regulations!that!govern!the!management!of!hazardous!waste,!solid!waste!and!underground!storage!tanks!in!the!U.S.!!

Stockpiling!–!Storage!of!large!inventories!of!CRT!glass!either!in!boxes,!bags!or!in!storage!piles.!

ELECTRONICS RECYCLING LEGISLATION IN THE US !

Current Legislative Landscape

TwentyJfive!US!states!currently!have!electronics!takeJback!legislation,!providing!consumers!with!a!means!for!recycling!obsolete!electronics.!TwentyJthree!of!these!employ!various!forms!of!Electronic!Producer!Responsibility!(“EPR”)!legislation,!which,!under!a!number!of!scenarios,!require!electronics!manufacturers!to!pay!the!cost!of!recycling!those!electronics!mandated!under!each!law.!Only!one!state,!California,!employs!an!Advance!Recycle!Fee!(ARF)!program!where!consumers!pay!a!recycling!fee!when!they!buy!a!new!product.!The!money!is!placed!in!a!fund!and!then!distributed!to!recyclers!and!collectors!to!pay!the!cost!of!recycling!video!display!devices!including!TVs,!computer!monitors,!laptops!and!so!forth.!

One!state,!Utah,!requires!manufacturers!to!educate!the!public!about!recycling!but!does!not!require!that!they!do!any!collection!or!recycling.!

States!with!takeJback!laws2!and!the!dates!enacted!are!as!follows:!

2003:!California!2004:!Maine!!2005:!Maryland!!2006:!Washington!!2007:!Connecticut,!Minnesota,!Oregon,!Texas,!North!Carolina!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2!National!Center!for!Electronics!Recycling:!www.ElectronicsRecycling.org!


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How$e9recyclers$are$hired$and$

paid$has$a$significant$impact$on$

how$well$the$programs$work$

and$whether$fraudulent$activity$

may$be$involved.$$

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2008:!New!Jersey,!Oklahoma,!Virginia,!West!Virginia,!Missouri,!Hawaii,!Rhode!Island,!Illinois!and!Michigan!!2009:!Indiana,!Wisconsin 2010:!Vermont,!South!Carolina,!New!York,!Pennsylvania!2011:!Utah!

Twenty!states!have!passed!solid!waste!landfill!disposal!bans!on!CRTs.!Seventeen!of!those!are!in!effect!as!of!the!date!of!this!report!and!19!will!be!in!effect!by!July!of!2013.!Eighteen!of!the!states!with!electronics!takeJback!programs!have!banned!landfilling!of!eJwaste.!

How Legislated Take Back Programs Differ

Although!23!states!have!enacted!the!EPR!model,!there!are!many!differences!among!the!programs.!Each!state!chooses!which!electronic!devices!(CED)!will!be!included!in!the!legislation.!Most!states!cover!TVs,!monitors,!laptops!and!desktop!computers!for!free!takeJback,!while!others!also!cover!printers,!cell!phones!and!various!other!devices.!

Some!of!the!EPR!states!set!collection!goals!for!manufacturers.!Often!this!is!a!percentage!of!the!number!of!TVs!and/or!other!products!that!a!manufacturer!has!sold!into!the!state’s!consumer!market!during!the!previous!calendar!year.!In!Indiana,!for!example,!manufacturers!must!!recycle!60%!of!the!weight!of!video!display!devices!sold!into!the!Indiana!market.!There!are!many!variations!on!these!formulas.!

All!the!EPR!states!require!that!original!equipment!manufacturers!(OEMs)!pay!the!cost!of!recycling!the!products!covered.!There!are!differences,!however,!in!whether!the!OEMs!or!the!states!select!the!recyclers!and!decide!how!much!the!recyclers!will!be!paid.!This!difference!has!a!significant!impact!on!how!well!the!programs!work!and!whether!fraudulent!activity!may!be!involved.!


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HOW E-RECYCLERS ARE HIRED AND PAID

State!selects!recycler!and!establishes!pricing:!CT,!ME!

Independent!program!managers!hire!recyclers!and!establish!pricing!on!behalf!of!the!state:!VT,!WA!

Two!states!do!a!combination!of!both!of!the!above:!OR,!RI!

In!3!states,!local!governments!or!OEMs!select!recyclers!and!establish!pricing:!MD,!NC,!WV!

In!all!other!states*,!the!OEMs!select!recyclers!and!establish!pricing:!IL,!IN,!HI,!MI,!MN,!MO,!NJ,!NY,!OK,!PA,!SC,!TX,!VA,!WI!*In!some!of!these!states!recyclers!are!required!to!register!with!the!state.!

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Evaluating Legislated Take-Back Programs

California’s ARF Program

Since!consumers!pay!a!recycling!fee!when!they!buy!a!new!video!display!device!in!California,!there!is!no!cost!to!OEMs!or!required!program!involvement.!Although!most!manufacturers!view!this!as!positive,!the!environmental!community!has!criticized!this!model.!!They!believe!that!that!requiring!OEMs!to!pay!for!recycling!of!their!products!incentivizes!development!of!products!that!are!easier!to!recycle!and!less!toxic,!thus!reducing!recycling!costs.!!This!is!the!concept!behind!takeJback!legislation!called!extended!producer!responsibility!(EPR),!the!model!most!states!have!adopted.!


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California!is!the!only!state!that!covers!only!the!recycling!of!‘video!display!devices’!and!not!other!eJwaste.!That!means!recyclers!and!collectors!are!reimbursed!by!the!state!for!video!devices!only.!But!consumers!want!to!recycle!a!whole!range!of!devices!and!they!often!bring!them!to!collection!events!along!with!their!video!display!devices.!This!has!resulted!in!a!huge!burden!for!recyclers!who!wind!up!taking!low!or!negative!value!eJwaste!along!with!the!CRT!devices!from!consumers.!Since!there!is!no!money!in!the!program!for!the!nonJCRT!devices,!many!times!the!only!profitable!option!for!recycling!is!to!ship!these!materials!to!developing!countries!that!will!pay!a!small!price!per!pound!for!the!scrap.!!Unfortunately,!these!countries!generally!lack!the!infrastructure!to!process!the!hazardous!components,!resulting!to!significant!harm!to!human!health!and!the!environment.!

California!has!the!only!state!program!that!established!the!price!recyclers!are!paid!within!the!legislation.!When!the!law!was!enacted!in!2004,!recyclers!were!paid!$.48/pound!and!were!to!pay!collectors!delivering!material!to!them!at!a!minimum!rate!of!$.16/pound.!The!$.29/pound!intended!to!cover!recycling!costs!should!have!provided!a!comfortable!profit!margin.!!


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In!2008,!the!price!paid!to!recyclers!was!reduced!to!$.39/pound.!While!that!should!have!still!supported!proper!recycling!with!$.16!going!to!collectors,!competition!for!the!covered!products!became!fierce!and!recyclers!began!offering!more!and!more!to!collectors!to!get!the!covered!products.!Today,!some!recyclers!are!paying!collectors!as!high!as!$.29/pound,!leaving!too!little!for!responsible!CRT!recycling!after!the!valuable!commodities!are!sold.!

The!fee!that!consumers!pay!also!supports!state!oversight!of!the!program.!CalRecycle!approves!participating!recyclers!and!collectors!and!requires!extensive!record!keeping!for!those!requesting!payment.!This!oversight!helps!to!reduce!fraudulent!activity.!Some!may!consider!the!level!of!oversight!a!negative!aspect!of!the!program!due!to!high!cost.!Even!with!the!high!level!of!oversight,!other!program!weaknesses!have!contributed!to!stockpiling!of!CRT!glass.!

The!California!law!requires!that!recyclers!“cancel”!CRT!tubes!and!ship!the!tubes!or!glass!in!order!to!qualify!for!payment!from!the!state.!Canceling!the!tube!usually!involves!either!simply!drilling!a!hole!in!the!glass!tube!to!release!the!vacuum!or!further!processing!by!separating!panel!glass!from!funnel!glass.!The!requirement!for!the!glass!to!be!shipped,!however,!does!not!specify!that!it!be!shipped!to!a!glass!recovery!facility,!only!that!it!be!shipped!offJsite.!As!such,!some!recyclers!have!been!shipping!to!offJsite!warehouses!and!storing!the!glass!rather!than!shipping!for!more!costly!recycling.!

Finally,!since!canceling!tubes!renders!the!device!unJrepairable,!the!California!law!has!been!criticized!for!preventing!reuse,!which!saves!energy!and!conserves!resources.!

State Controlled Manufacturer Take-Back Model

In!Connecticut!and!Maine,!the!states!select!the!participating!recyclers!and!approve!pricing!proposed!by!the!recyclers.!This!helps!prevent!overly!competitive!forces!from!dropping!the!price!below!the!threshold!that!can!support!proper!recycling.!Recyclers!participating!in!these!state!programs!feel!that!there!is!adequate!program!oversight!and!financing.!The!OEMs,!on!the!other!hand,!believe!the!costs!are!too!high!and!that!the!inability!to!choose!recyclers!or!negotiate!pricing!rewards!inefficient!companies.!

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In!these!programs,!however,!even!though!the!states!approve!the!pricing,!the!recyclers!must!compete!against!each!other!to!secure!contracts!with!the!municipalities!where!the!covered!products!are!collected.!!Since!they!are!not!competing!on!price,!they!must!offer!other!benefits!to!municipalities!to!beat!out!competing!recyclers.!Some!offer!to!take!items!not!covered!under!the!programs!at!no!charge!and!many!times!offer!to!pay!for!these!items!to!get!the!competitive!edge.!This!does!not!necessarily!mean!that!this!leads!to!stockpiling!of!CRT!glass!or!other!program!imbalances.!However,!if!aboveJmarket!prices!are!offered!for!nonJcovered!products!in!order!to!secure!business,!the!amount!of!money!left!for!proper!recycling!of!CRTs!could!be!compromised.!!!


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The!states!maintain!program!oversight,!requiring!recyclers!to!submit!aggregate!information!on!all!shipments!annually.!Although!this!should!help!reduce!fraud,!lack!of!!report!auditing!or!onJgoing!thirdJ!party!monitoring!of!mass!balance3!can!still!result!in!stockpiling!of!CRT!glass.!

Privately Controlled (OEM) Manufacturer Take-Back Model

The!largest!number!of!legislated!takeJback!programs!feature!systems!where!the!selection!of!and!payment!to!recyclers!is!controlled!by!OEMs.!These!programs!help!incentivize!OEMs!to!design!more!recyclable,!therefore!less!costly!to!recycle,!products.!Most!of!the!states!establish!aggressive!collection!goals!for!each!OEM,!often!resulting!in!high!collection!rates.!

While!the!laws!in!some!states,!particularly!those!with!collection!goals,!have!clearly!succeeded!in!driving!up!the!volume!of!eJwaste!collected!by!the!OEM!programs!for!recycling,!they!have!been!less!successful!in!assuring!that!responsible!recycling!is!occurring!with!what!is!been!collected.!!!

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Putting!program!responsibility!fully!in!the!hands!of!OEMs!with!little!or!no!state!oversight!has!led!to!a!myriad!of!problems!in!these!states.!!Although!many!OEMs!have!public!policies!suggesting!strict!requirements!of!the!recyclers!they!hire,!including!auditing,!the!highly!competitive!environment!often!drives!down!prices,!particularly!for!CRTs,!to!a!level!that!industry!experts!believe!cannot!support!proper!recycling.!Attracted!by!revenue!from!OEMs,!some!recyclers!bid!belowJmarket!prices!to!recycle!CRT!products,!sell!all!the!valuable!commodities!and!then!stockpile!the!glass!in!hopes!that!large!volumes!will!command!affordable!prices.!To!their!chagrin,!however,!they!find!that!as!markets!for!CRT!glass!continue!to!decline,!the!cost!for!CRT!recycling!continues!to!rise.!!

The!most!troublesome!outcome!of!this!program!model!is!the!proliferation!of!fraudulent!reporting.!This!includes!fabricated!paper!transactions,!some!of!which!are!now!commonly!referred!to!as!“Air!Pounds”.!This!is!when!recyclers!inflate!the!weight!of!materials!collected!(“Ghost!Weight”)!!in!order!to!give!OEMs!the!numbers!they!need!to!meet!collection!goals!while!overcharging!for!materials!that!were!never!collected!(see!pages!26,!27).!


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State Take-Back Volumes

The!above!data,!supplied!by!the!National!Center!for!Electronics!Recycling!(NCER)!indicates!that!600!million!pounds!or!300,000!tons!of!electronics!were!recycled!in!legislated!takeJback!states!over!a!recent!12Jmonth!period.!Industry!experts!estimate!that!60%!of!the!weight!of!materials!collected!in!these!programs!comes!from!TVs!and!monitors,!indicating!that!180,000!tons!of!TVs!and!monitors!were!collected!during!the!period.!


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MARKET FACTORS IMPACTING CRT RECYCLING Current!options!for!CRT!glass!recovery!include!lead!smelting!and!‘glass!to!glass’!recycling.!!

There!are!two!kinds!of!glass!in!a!CRT:!“panel!glass,”!from!the!front!panel!of!the!tube!(this!usually!has!a!lead!content!below!regulatory!limits!on!disposal)!and!“funnel!glass”!from!the!rest!of!the!tube!(which!has!very!high!lead!content).!Lead!smelters!are!interested!in!recovering!the!lead!from!CRT!funnel!glass!and!can!use!the!silica!(glass!component)!as!a!‘fluxing!agent’!to!help!remove!contaminants!and!purify!the!lead.!!There!are!currently!three!lead!smelters!in!North!America;!two!in!Canada,!located!in!British!Columbia!and!New!Brunswick,!and!one!in!the!US!located!in!Missouri.!!

GlassJtoJglass!recycling!uses!CRT!glass!that!has!been!cleaned!of!the!toxic!phosphor!powders!inside!the!tubes!and!separated!(panel!and!funnel)!to!produce!new!CRT!products.!

Glass-to-Glass Markets

In!2004,!when!California!passed!the!first!takeJback!law!in!the!US,!new!CRT!manufacturers!were!paying!recyclers!about!$205/ton!for!their!CRT!glass.!Today,!those!that!remain!are!charging!recyclers!about!$200/ton.!This!represents!a!net!loss!to!recyclers!of!$405/ton.!What!was!once!an!income!source!for!recyclers!now!costs!money!to!process.!

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In!1999,!manufacturing!facilities!in!12!US!states!were!producing!CRT!glass!and!using!recycled!glass!for!a!portion!of!the!content.!There!were!also!14!manufacturers!around!the!world!manufacturing!CRT!tubes!and!23!companies!using!those!tubes!in!new!CRT!based!TVs!and!monitors.!

Today,!only!two!plants,!both!in!India,!continue!to!manufacture!tubes!(Samtel!and!Videocon)!and!only!Videocon!still!produces!CRT!based!TVs!and!monitors.!The!result!is!a!shift!from!recyclers!being!paid!for!CRT!glass!to!recyclers!being!charged!for!CRT!glass.!


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As!recently!as!2010,!Indian!factories!were!shipping!5!CRT!based!products!for!every!one!LCD!product.!LCD!product!shipments!now!exceed!CRT!products.!This!trend!will!continue!until!CRT!based!products!are!no!longer!a!less!expensive!alternative!to!LCD!products!and!will!no!longer!be!produced.!!

Lead Smelters

With!glassJtoJglass!markets!diminishing,!competition!for!recycling!capacity!at!lead!smelters!has!become!fierce,!allowing!lead!smelters!to!charge!more!for!CRT!glass.!

Since!the!first!US!takeJback!program!was!implemented!in!2004,!lead!smelters!fees!have!risen!from!$125/ton!to!$225/ton.!!


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Lead!smelters!are!also!now!imposing!stricter!material!acceptance!parameters.!Two!of!the!three!North!American!lead!smelters!now!only!accept!properly!prepared!leaded!funnel!glass!and!no!longer!accept!panel!glass.!


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Recyclers$‘setting$aside’$the$cost$

of$managing$CRT$glass$while$

enjoying$revenue$from$

commodities$is$the$single$

largest$contributor$to$

stockpiling$CRT$glass.$

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FACTORS CONTRIBUTING TO CRT GLASS STOCKPILING

Take-Back Legislation Attracts New Recyclers/Attracts Unscrupulous Activity

When!states!pass!takeJback!laws,!private!enterprises!pay!attention.!They!learn!that!there!is!money!to!be!made!in!electronics!recycling.!Inexperienced!entrepreneurs!figure!that!value!in!base!metals,!precious!metals!and!even!plastics!that!can!be!pulled!from!eJwaste,!coupled!with!money!from!states!or!OEMs,!is!a!winning!business!proposition.!Some!of!these!entrepreneurs!are!inexperienced!in!the!costs!of!meeting!environmental,!health!or!safety!requirements!or!managing!hazardous!materials!such!as!leaded!CRT!glass.!

At!first!glance,!a!recycler!could!calculate!revenues!from!every!TV!or!monitor!received!at!around!$14.50/unit.!However,!when!the!costs!of!glass!processing,!collection!and!transportation!are!properly!figured!in,!only!$4.00!in!revenue!may!remain.!If!they!add!all!of!the!overhead!costs!of!properly!managing!an!electronics!recycling!business,!the!net!revenue!is!negative.!This!makes!it!very!enticing!to!just!‘setJaside’!the!cost!of!managing!the!glass!while!enjoying!revenue!from!the!commodities.!!

While!this!can!occur!as!a!result!of!inexperience,!there!are!recyclers!with!plenty!of!experience!that!understand!the!math!all!too!well!and!are!simply!taking!advantage!of!an!“opportunity”.!This!activity!is!the!single!largest!contributor!to!stockpiling!of!CRT!glass!in!legislated!takeJback!states!and!can!be!readily!addressed.!

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OEMs Driving Down Costs

Since!the!inception!of!legislated!takeJback!programs!in!2004,!prices!paid!to!recyclers!for!collecting!covered!products!have!declined!over!55%!going!from!a!high!of!$.48!when!the!California!law!was!implemented!to!a!low!of!about!$.25!for!stateJrun!programs!and!from!about!$.26/pound!to!$.15/pound!for!OEMJrun!programs.!OEMs!operating!voluntary!takeJback!programs!as!a!service!to!customers!(mailJin!recycling,!etc.)!are!now!securing!“no!charge”!recycling!contracts.!When!these!programs!began,!recyclers!were!paid!an!average!of!$.11/pound.!

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In!takeJback!states!where!OEMs!are!responsible!for!hiring!and!paying!recyclers,!pricing!for!recycling!has!become!fiercely!competitive.!CRT!tube!processors!and!CRT!glass!processors!experience!the!full!costs!of!recycling!these!materials!and!thus!quote!prices!that!reflect!that.!Most!agree!that!$.20/pound!is!the!minimum!required!to!pay!for!proper!recycling!(not!including!the!cost!of!collection).!But,!more!often!than!not,!recyclers!bid!prices!with!unJsustainable!margins,!having!no!intention!of!recycling!the!glass.!!The!allure!of!servicing!largeJvolume,!brandJname!Fortune!500!customers!entices!unrealistic!and!unsustainable!pricing.!

Lack of e-Recycler Monitoring

The!advent!of!thirdJparty!certification!programs!for!electronics!recyclers!(eJStewards!and!R2)!has!improved!the!quality!of!services!offered!by!eJrecyclers!overall.!Although!the!requirements!of!the!eJ


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Fabrication$of$shipping$

documents$is$so$prevalent$that$

there$is$a$name$for$it:$“alibi$

loads”.$

Certification$auditors$are$not$

required$to$validate$that$the$

materials$and$volumes$

reportedly$shipped$to$

downstreams$have$been$

received.$

Stewards!and!R2!standards!differ,!both!require!that!recycles!run!their!businesses!under!a!planJdoJcheckJact!quality!control!protocol!that!improves!the!integrity!of!the!business!overall.!!

However,!what!most!customers!of!eJrecyclers!do!not!understand!is!that!these!onceJaJyear!certification!audits!are!not!a!substitute!for!onJgoing!oversight.!The!federal!government,!many!states!and!many!other!large!generators!of!eJwaste!have!placed!all!of!their!faith!in!certification!programs!and!have!abandoned!additional!oversight.!Still,!in!many!states,!no!certification!is!required!at!all.!

ThirdJparty!certification!auditors!are!required!to!check!a!recycler’s!shipping!records!and!determine!whether!or!not!the!recycler!has!knowledge!of!the!capabilities!and!regulatory!status!of!downstream!processors.!The!certification!auditors!must!review!shipping!records!to!verify!that!the!recycler!is!shipping!to!the!facilities!he/she!is!claiming!to!ship!to.!The!auditors!are!not,!however!required!to!validate!that!the!materials!and!volumes!reportedly!shipped!to!downstreams!have!been!received.!As!such,!a!recycler!can!create!shipping!documents!for!the!purposes!of!the!audit!while!sending!material!offJsite!for!storage!or!to!other!downstreams!that!might!not!meet!customer!requirements.!This!is!so!prevalent!that!there!is!a!name!for!it:!“alibi!loads”.!That!is;!sending!a!few!loads!to!a!widely!approved!downstream!processor,!using!that!paperwork!(the!“alibi”)!to!pass!an!audit!and!sending!a!larger!volume!to!a!downstream!that!likely!would!not!pass!customer!or!audit!muster.!

As!hard!as!states!and!OEMs!have!worked!to!qualify!recyclers!in!their!programs,!auditing!electronics!recyclers!remains!a!daunting!task.!Electronics!recyclers!are!largely!unregulated!so!all!that!customers!have!to!rely!on!is!the!diligence!and!experience!of!auditors.!Yet!even!the!most!experienced!auditors!cannot!usually!detect!whether!outbound!shipments!actually!meet!customer!requirements.!

This!problem!could!be!addressed!by!thirdJparty!mass!balance!monitoring.!This!is!where!an!independent,!thirdJparty!(neither!the!shipper!or!receiver)!verifies!that!the!volume!that!was!claimed!to!have!been!shipped!was!the!amount!that!was!actually!received!by!a!particular!downstream!processor.!This!strategy!can!provide!oversight!of!material!movement!into!and!out!of!eJrecycling!facilities!and!independently!verify!with!the!downstreams!that!the!types!and!volumes!of!materials!indicated!as!shipped!were,!in!fact,!received!for!final!processing.!Currently,!no!state!eJrecycling!laws!require!third!party!mass!balance!monitoring!of!collectors!or!eJrecyclers!engaged!in!state!programs.!


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Making Manufacturer Take-Back Work… On Paper

Many!states!establish!recycling!goals!that!OEMs!must!meet,!often!based!upon!a!percentage!of!the!devices!that!a!particular!manufacturer!sells!into!the!state!market!in!a!given!year.!For!some!manufacturers,!this!means!collecting!and!recycling!as!many!as!20!million!pounds!of!eJwaste!in!a!program!year.!

OEMs!often!contract!with!a!single!primary!recycler,!or!with!a!limited!number!of!recyclers,!to!meet!their!collection!and!recycling!goals.!!Because!the!recovery!goals!are!so!high,!few!if!any!individual!recycler!can!singleJhandedly!collect!and!service!those!volumes.!In!order!to!meet!contract!obligations!with!the!OEM,!they!look!for!other!recyclers!that!have!managed!takeJback!materials!to!get!either!the!physical!materials!for!processing,!or!to!simply!get!the!paperwork!evidence!that!materials!from!takeJback!collections!were!recycled.!

These!soJcalled!“paper!transactions”!can!legitimately!help!primary!recyclers!meet!their!contractual!obligations!with!their!OEM!customers.!Unfortunately,!it!is!widely!reported!that!many!of!these!transactions!are!not!legitimate.!

Air Pounds

Some!of!the!subcontracted!recyclers!sell!the!same!paperwork!to!numerous!primary!recyclers.!This!has!become!so!prevalent!that!these!are!now!commonly!referred!to!as!“Air!Pounds”.!!Another!deceiving!practice!that!is!reportedly!commonplace!is!recyclers!collecting!a!number!of!pounds!of!material!and!claiming!to!have!collected!much!more.!None!of!the!OEMs!or!states!require!weight!slip!documentation!for!material!collected.!

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In!the!above!illustration!of!an!Air!Pounds!scenario,!both!Recycler!A!(top)!and!Recycler!C!(bottom)!are!paying!Recycler!B!for!weight!needed!to!meet!their!contractual!obligations.!The!result!is!Recycler!B!getting!paid!twice!for!the!same!weight!and!the!takeJback!program!coming!up!short!of!15!million!pounds!on!material!that!was!supposed!to!have!been!recycled.!

Ghost Weight

The!illustration!below!describes!a!Ghost!Weight!scenario.!In!this!case,!the!recycler!contracted!with!the!OEM!at!$.11/pound.!The!recycler!collected!25!million!pounds!but!‘fudged’!the!weights!collected,!invoicing!the!OEM!for!50!million!pounds!instead.!The!result!is!the!OEM!paying!double!what!was!quoted.!Furthermore,!legitimate!recyclers!that!competed!for!and!lost!this!business!may!have!quoted!less!than!$.22/pound!but!could!not!compete!against!the!deceptive!price!of!$.11/pound.!


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Stockpiling – An ARF Problem Too

With!better!record!keeping!and!program!oversight,!the!above!scenarios!are!not!as!prevalent!in!California’s!Advance!Recycle!Fee!(ARF)!system.!Other!program!challenges,!however,!have!contributed!to!a!backlog!of!glass!which!recently!lead!to!the!“emergency!rule”!that!will!allow!for!hazardous!waste!landfilling!of!leaded!glass.!

Under!California’s!SB20/50!legislation,!$.39/pound!is!earmarked!to!pay!registered!glass!recyclers!to!recycle!video!display!devices!(TVs,!monitors,!laptops!and!portable!DVD!players).!Of!that!amount,!


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recyclers!must!pay!collectors!at!least!$.16/pound,!but!recyclers!that!are!also!collectors!may!keep!the!full!$.39/pound.!

When!the!legislation!passed,!many!new!recyclers!jumped!into!the!market,!making!competition!for!the!glass!quite!fierce.!First!recyclers!began!offering!to!accept!items!from!collectors!and!the!public!that!were!not!covered!under!the!program!at!no!charge.!Since!most!eJwaste!generated!from!the!residential!market!is!of!very!low!or!even!negative!value!(VCRs,!printers,!small!household!appliances,!etc.)!taking!these!items!for!free!was!challenging!but!provided!an!avenue!to!getting!the!CRT!glass!that!would!bring!revenue!from!the!state!program.!Over!time,!recyclers!began!offering!collectors!more!and!more!money!perJpound!to!compete!for!their!glass.!Today,!recyclers!are!paying!collectors!between!$.20!and!$.29/pound,!leaving!very!little!if!any!margin!for!proper!CRT!recycling.!Some!recyclers!that!were!overly!aggressive!with!price!began!storing!glass!hoping!for!dips!in!price!that!would!provide!an!opportunity!to!ship!the!glass.!As!stated!earlier,!however,!the!cost!of!CRT!glass!recycling!is!going!up,!not!down.!California’s!move!to!allow!hazardous!waste!landfilling!of!leaded!glass!is!an!attempt!to!clear!out!these!stockpiles.!!

COST OF CRT GLASS RECYCLNG On!average,!the!cost!to!process!whole!CRT!tubes!has!been!around!$.10/pound.!Processing!mixed,!broken!tubes,!where!the!panel!glass!has!not!been!properly!separated!from!the!funnel!glass,!has!averaged!$.25/pound.!Finally,!glass!that!has!been!haphazardly!stockpiled!and!contaminated!with!plastics,!metals,!dirt!and!other!contaminants,!could!cost!$.50/pound!to!clean!and!sort!in!preparation!for!recovery.!

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At!current!fuel!prices,!transportation!for!any!of!these!classifications!of!materials!going!to!a!recycling!facility4!averages!$.03/pound.!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4!Leaded!glass!destined!for!a!permitted!hazardous!waste!facility,!such!as!a!landfill,!must!be!shipped!in!compliance!with!the!Resource!Conservation!&!Recovery!Act!at!a!higher!rate/lb.!


!

! !

CURRENT CRT VOLUMES & EFFECTIVE CAPACITY FOR CRT RECYCLING IN NORTH AMERICA !

CRT Glass Industry Estimates on Stockpiles

The!CRT!recyclers!that!produced!this!report!compiled!the!data!on!the!slide!below.!Since!many!of!the!stockpiles!reside!at!operations!that!do!not!process!tubes!or!glass,!CRT!recyclers!have!been!called!into!these!operations!to!evaluate!the!stored!glass!for!purposes!of!removal.!

!

!


!

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!

Estimated Recycling Costs for Take-Back Glass Stores

!

!


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!

US CRT PROCESSORS !

The!chart!below!lists!all!known!companies!that!process!CRT!tubes!in!preparation!for!final!recovery!(at!the!glass!processors).!

!

!


!

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!

CURRENT & FUTURE US CRT GLASS PROCESSORS !

The!companies!listed!below!in!black!currently!provide!glass!and/or!lead!recovery!services!to!US!eJrecyclers.!Those!in!grey!have!permits!for!new!operations!and!are!in!various!stages!of!readiness.!!

!

!

!

Closed!Loop,!!based!in!Arizona,!is!running!a!pilotJscale!recovery!operation!and!is!commercially!accepting!glass!in!preparation!of!taking!the!operation!full!scale.!Closed!Loop!expects!the!AZ!facility!to!be!in!full!production!by!the!end!of!2013!and!will!have!a!capacity!to!process!21,000!tons!of!leaded!glass!per!year.!


!

! !

ECS!Refining!is!processing!tubes!at!both!its!California!and!Texas!operations!with!an!automated!and!patented!process!for!mechanically!separating!panel!from!funnel!glass.!The!focus!is!on!producing!a!highJquality!glass!from!panel!glass!and!separating!the!leaded!glass!for!final!recovery!at!a!new!150!ton!per!day!facility!in!Texas.!ECS!Texas!currently!operates!the!largest!secondary!lead!smelter5!in!the!US.!A!new!subsidiary,!ConECSus!will!be!running!the!new!glass!furnace!that!will!produce!lead!and!clean!glass!from!funnel!glass.!ECS!is!currently!processing!tubes!at!both!locations!and!is!accumulating!glass!for!launch!of!the!glass!smelter,!expected!in!late!2013.!

NuLife!Glass!recently!launched!a!new!CRT!glass!furnace!at!their!Sittingbourne,!Kent!(UK)!plant.!Operated!by!SWEEP!Kuusakoski,!the!Kent!plant!recyclers!10!tons/day!of!leaded!CRT!glass.!The!company!has!obtained!permits!to!build!a!similar!plant!outside!of!Buffalo,!NY.!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!5!Produce!lead!from!lead!based!materials,!not!from!ore.!


!

! !

TAKE-BACK CRT GLASS VOLUMES AND EFFECTIVE MARKET CAPACITY

CRT Volumes from Legislated Take-Back Programs

As!stated!earlier,!approximately!180,000!tons/year!of!TVs!and!monitors!are!currently!being!collected!in!legislated!takeJback!states.!At!an!average!of!55.8!pounds/unit,!this!produces!132,474!tons!of!CRTs/year.!

!

!

!


!

! !

The!table!above!shows!the!break!down!of!CRT!components!(leaded!funnel!glass,!panel!glass!and!metals)!and!the!number!of!tons/year!produced!from!the!takeJback!programs.!

Leaded Glass Volume and Effective Market Capacity

Currently,!CRT!glass!processors!servicing!the!US!market!have!an!effective!capacity!to!process!135,300!tons!of!leaded!glass/year.!As!indicated!in!the!chart!below,!when!new!markets!come!on!line!(Closed!Loop,!ECS,!NuLife),!an!additional!79,200!tons!of!capacity!will!be!added!specifically!for!the!US!market!(all!US!based!operations).!!

!

!

!


!

! !

It!is!important!to!note,!however!that!current!markets!(primary!lead!smelters,!TDM)!also!service!Canada!and!Mexico!so!the!current!capacity!is!not!reserved!for!US!volume!alone.!In!addition,!the!numbers!on!the!chart!above!do!not!include!all!of!the!CRTJbased!products!generated!for!recycling!from!businesses,!institutions!and!other!organizations!(this!number!has!not!been!quantified).!As!such,!what!may!appear!as!a!current!surplus!in!capacity!is!likely!a!significant!and!yet!to!be!quantified,!shortage.!

Other Potential Capacity

Additional!capacity!has!been!demonstrated!at!primary!smelters!in!Mexico,!including!Torreon/Penoles!and!Southern!Copper!in!Nacozari.!!However,!current!purchase!orders!from!these!operations!are!limited!or!private!and!not!solicited!from!recyclers!with!stockpiles.!!This!would!presumably!change!if!either!the!price!of!lead!increased!or!if!smelters!were!able!to!command!a!higher!recycling!fee.!

Copper!smelters!in!the!USA,!such!as!Phelps!Dodge,!could!utilize!CRT!cullet!the!same!way!but!are!not!soliciting!material.!!Engineers!at!a!Mexican!copper!smelter!cited!concerns!over!becoming!classified!as!a!"waste!treatment!facility"!as!reason!for!their!caution!over!using!CRT!glass.!!One!expert!suggested!that!the!capacity!of!copper!smelters!to!consume!CRT!glass!could!be!significant!if!the!smelters!were!guaranteed!they!could!use!secondary!recycled!cullet!in!the!same!way!they!use!lead!ore;!that!is,!without!regulations!in!excess!of!groundwater!monitoring!and!other!existing!requirements!that!apply!to!management!of!slag!and!extracted!ores.!Essentially,!these!smelters!could!effectively!consume!CRT!cullet!that!meets!technical!smelting!requirements!if!regulatory!burdens,!and!therefore!excessive!risks/costs,!were!relieved.!!


!

! !

!

FACTORS CONSTRICTING EFFECTIVE CAPACITY OF CRT GLASS MARKET Although!a!significant!number!of!entrepreneurs!have!developed!new!technologies!for!recovering!materials!from!CRTs,!very!few!have!successfully!secured!investment!capital!for!start!up!for!two!reasons:!

1. Threat!of!competition!from!solid!and!hazardous!waste!landfills!2. Future!diminishing!supply!of!used!CRTs!worldJwide!

!

Threat of Competition from Landfills

As!indicated!on!the!map!below,!30!US!states!have!not!banned!CRTs!and!other!electronics!from!solid!waste!landfills.!Although!CRTs!can!be!classified!as!hazardous!waste!under!the!Resource!Conservation!and!Recovery!Act!(RCRA)!and!therefore!cannot!be!disposed!of!in!solid!waste!landfills,!EPA!regulations!exempt!households!and!other!“small!quantity!generators”!from!hazardous!regulations.!As!such,!CRTs!generated!by!households!can!be!legally!dumped!in!a!solid!waste!landfill!as!long!as!the!state!where!the!landfill!resides!does!not!ban!CRT!disposal.!So,!with!30!states!still!allowing!landfilling,!and!landfilling!costing!fractions!of!pennies!per!pound!vs.!recycling,!eJwaste!landfilling!poses!a!significant!threat!to!the!CRT!recycling!industry!and!to!the!environment.!


!

! !

!

California’s Emergency Landfill Rule

In!response!to!growing!glass!stores!at!state!registered!eJrecycling!facilities,!California!recently!approved!an!emergency!regulation!relating!to!SB20/50,!the!state’s!eJwaste!recycling!law,!allowing!for!hazardous!waste!landfilling!of!CRT!glass.!Although!landfilling!of!any!type!means!a!loss!of!valuable!resources,!hazardous!waste!landfilling!does!not!pose!the!same!competitive!threat!to!CRT!recycling!as!solid!waste!landfilling!does.!On!a!priceJperJpound!basis!it!can!be!less!expensive!than!recycling,!but!often!the!cost!of!complying!with!RCRA!regulations!put!it!on!par,!or!even!more!expensive!than!recycling.!However,!depending!on!individual!hazardous!waste!landfill!pricing!and!freight!costs,!investors!still!view!it!as!a!threat!to!the!viability!of!new!recovery!operations.!Moreover,!on!environmental!issues,!as!California!goes,!other!states!tend!to!follow,!boding!a!troubling!trend!for!the!future!of!CRT!recovery.!


!

! !

Discovery$of$glass$stores$might$

be$expedited$with$an$amnesty9

type$program$to$entice$e9

recyclers$with$inventory$

problems$to$proactively$seek$for$

assistance.$

$

Future Diminishing Supply of Used CRTs Worldwide

As!indicated!on!the!chart!on!page!18,!the!number!of!new!CRTJbased!products!being!manufactured!worldwide!is!rapidly!declining.!As!such,!the!supply!of!CRT!glass!for!recycling,!although!overwhelming!at!present,!will!eventually!begin!to!decline.!With!the!cost!of!new!CRT!glass!recycling!plants!starting!at!around!$3!million,!investors!are!concerned!that!future!declines!in!glass!supply!could!idle!these!plants.!However,!the!tremendous!supply!available!over!the!next!10Jplus!years!will!likely!ensure!a!robust!return!on!investment.!

To!address!investors’!concerns,!some!entrepreneurs!are!expanding!the!application!of!recovery!technologies!to!other!materials!such!as!LCD!displays!and!fluorescent!lamps!to!further!attract!investment.!Plasma!arc!technology!is!one!such!technology!that!can!not!only!recover!CRT!glass!but!also!precious!metals!and!rare!earth!metals6!which!are!among!the!most!strategically!valuable!metals!in!the!world.!

ADDRESSING THE STOCKPILING PROBLEM: ACTION PLANS FOR STATES AND THE FEDERAL GOVERNMENT !

States Action Plan

The!first!course!of!action!for!states!is!to!investigate!records!of!material!flows!into!and!out!of!eJrecycling!operations!engaged!in!the!state!takeJback!program,!whether!the!recyclers!are!hired!by!manufacturers!or!by!the!state.!This!may!require!hiring!of!thirdJ!party!auditors!with!specific!experience!in!the!eJrecycling!industry.!The!goal!here!is!to!identify!stockpiles!that!may!exist!at!the!eJrecyclers!primary!place!of!business!or!at!offJsite!storage!locations.!

The!next!step!is!to!determine!the!cause!of!the!stockpile!and!the!recycler’s!plan!for!removal!and!disposition.!If!the!recycler!does!not!have!the!financial!wherewithal!to!recover!the!glass,!the!state!must!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6!Rare!earth!metals!are!a!set!of!17!chemical!elements!in!the!periodic!table,!considered!‘rare’!since!most!deposits!or!rare!earth!ores!are!widely!dispersed!and!not!concentrated.!Many!are!used!in!electronic!applications!and!are!extremely!valuable.!


!

! !

As$the$supply$of$CRT$glass$

dwindles,$demand$by$smelters$

will$remain$constant$well$into$

the$future.$

$

then!determine!what!regulatory!action!and/or!alternate!forms!of!financing!can!be!tapped!to!recycle!the!stockpile.!

Another!option,!which!may!expedite!discovery!of!glass!stores,!may!be!to!develop!an!amnestyJtype!program!to!entice!eJrecyclers!with!inventory!problems!to!proactively!seek!assistance.!The!amnesty!could!range!from!relief!from!penalties!related!to!speculative!accumulation!times!to!offers!of!loans!or!other!financial!assistance!toward!having!the!glass!recycled.!

Preventing!stockpiling!in!the!first!place!is!the!best!course!of!action.!Many!of!the!stockpiles!reside!at!demanufacturing!facilities!that!have!no!capabilities!for!processing!CRT!tubes!or!glass.!As!such,!there!is!no!reason!for!accumulation!or!storage!of!CRTs!at!these!facilities.!ThirdJparty!mass!balance!monitoring!can!help!ensure!that!materials!are!regularly!flowing!out!of!these!operations!and!not!being!stored!for!any!reason.!

Federal Action Plan: All Stockpiling is Not Created Equal

It!is!important!to!note!that!all!stockpiling!or!accumulation!of!CRT!glass!is!not!always!problematic!and!may!be!a!necessary!component!of!final!glass!recovery.!!

The!focus!of!this!report!is!on!stockpiles!of!CRTs!that!have!essentially!been!‘setJaside’!either!in!hope!of!a!drop!in!the!cost!of!recycling!or,!in!some!cases,!with!no!intention!of!recycling!at!all!(planned!abandonment).!!However,!there!are!cases!where!accumulation!is!a!necessary!part!of!startJup!for!a!new!process!or!accessing!markets!that!may!have!relatively!low!consumption!rates!but!have!longJterm!need!for!leaded!glass.!

Glass!and!lead!recovery!operations!require!large!volumes!of!material!to!get!new!plants!up!and!running.!LargeJscale!furnaces!require!a!minimum!of!6J12!months!supply!of!prepared,!furnaceJready!materials!prior!to!startJup.!A!furnace!will!take!up!to!a!one!month!supply!on!initial!feed!to!start!the!unit,!then!requires!feed!continually!24!hours!a!day!for!3J5!years!before!liners!must!be!replaced.!Large!furnaces!cannot!be!shut!down!without!causing!damage,!thus!reserving!feedstock!for!market!fluxuations!or!other!disruptions!in!inbound!material!flows!is!essential.!

The!3!lead!smelters!servicing!the!US!CRT!market!(Doe!Run,!Teck!Resources,!Xstrada)!report!that!although!their!ability!to!consume!CRT!glass!is!currently!limited!to!~27,300!tons/year,!they!have!longJ


!

! !

term!needs!of!the!glass!for!use!as!a!fluxing!agent.!So,!as!the!supply!of!CRT!glass!dwindles,!their!demand!will!remain!constant!well!into!the!future.!As!such,!stockpiling!glass!to!fill!longJterm!lead!smelter!needs!will!be!necessary!to!conserve!resources!(mining!for!lead!or!fluxing!agents).!

The CRT Rule

In!2006,!the!USEPA!issued!its!final!CRT!Rule!designed!to!streamline!requirements!for!managing!CRTs!and!to!encourage!recycling.!The!Rule!set!forth!requirement!for!CRTs!destined!for!export!markets!and!established!domestic!requirements!for!storage!and!accumulation!of!CRTs.!It!prohibited!“speculative!accumulation”,!requiring!that!75%!of!the!volume!or!weight!of!CRTs!received!within!a!calendar!year!is!recycled.!The!intent!was!to!prevent!operations!from!taking!in!more!than!they!could!process!which!could!lead!to!stockpile!abandonment!and!associated!environmental!clean!up!costs.!

In!2011,!the!EPA!responded!to!the!growing!number!of!inquiries!regarding!the!speculative!accumulation!requirements!with!the!following!clarification!for!CRT!recyclers:!

Legal$options$for$recyclers$for$CRT$glass$

$ (1)$If$recyclers$are$planning$on$storing$glass$longer$than$is$allowed$under$the$CRT$

rule,$they$can$and$should$apply$for$a$variance$for$extending$the$speculative$accumulation$

time$(see$40$CFR$260.30$(a)$and$260.31(a))$prior$to$storing$the$CRT$glass$longer$than$the$

speculative$accumulation$time$is$met;$and/or$!

$ (2)$Recyclers$are$allowed$to$dispose$of$the$glass$in$HW$landfills$(if$the$State$does$not$

have$a$landfill$ban).$

Suggested Improvements in the CRT Rule

To!prevent!stockpiling,!only!CRT!tube!and!glass!processors!should!be!permitted!to!store!glass.!Demanufacturers!that!do!not!process!CRT!glass!or!tubes!have!no!reason!to!store!material.!CRT!glass!processors,!however,!have!a!strong!business!case!for!storing!more!material!than!is!allowed!under!the!speculative!accumulation!rules.!!Properly!classifying!eJrecyclers!by!their!capabilities!(demanufacturer/recycler,!CRT!tube!processor,!CRT!glass!processor)!will!help!identify!those!with!legitimate!needs!for!storage!and!those!without.!Rules!pertaining!to!each!should!be!established!accordingly.!


!

! !

Know$the$Math:$$CRT$recycling$

bids$below$$.20/pound$should$be$

carefully$scrutinized.$$

$

!

STEPS FOR IMPROVING TAKE-BACK PROGRAMS While!current!stores!of!CRT!glass!are!being!identified!and!addressed,!it!will!be!important!to!fully!evaluate!the!current!state!of!manufacturer!takeJback!programs!and!identify!areas!for!improvement.!This!will!require!a!collaborative!effort!among!states,!OEMs!and!recyclers.!Areas!to!be!addressed!include:!

1. Understanding!the!true!cost!of!proper!recycling!2. Designing!program!requirements!toward!preventing!fraud!3. ThirdJparty!mass!balance!monitoring!of!collectors!and!eJrecyclers!4. Lessons!learned!from!differing!electronics!takeJback!schemes!

!

Understanding the True Cost of Recycling – Know the Math

Transportation,!management!and!proper!recycling!of!CRTs!and!CRT!glass!is!a!cumbersome!and!relatively!costly!venture.!Understanding!the!true!cost!of!CRT!recycling!can!help!states!and!OEMs!identify!pricing!proposals!that!may!not!support!responsible!recycling.!

At!current!commodity!prices,!the!average!TV!or!monitor!contains!between!$.05!and!$.13/pound!in!value!from!metals!and!plastic;!depending,!for!example,!upon!whether!the!unit!is!a!wooden!console!TV!or!a!computer!monitor.!Industry!estimates!place!costs!associated!with!proper!management,!handling!and!recycling!at!about!$.32/pound.!California’s!current!recycling!and!collection!reimbursement!rate!of!.39/pound,!based!upon!7!years!of!program!experience,!and!Canada’s!provincial!program!reimbursement!rates!between!$.30!and!$.45/pound!support!this.!As!such,!states!and!OEMs!might!expect!to!pay!a!minimum!of!~$.20/pound!for!proper!TV/monitor!recycling.!Proposals!with!pricing!below!$.20/pound!should!be!carefully!scrutinized.!


!

! !

Designing Take-Back Program Requirements to Minimize Fraud

As!explained!earlier,!weaknesses!in!many!takeJback!programs!have!led!to!rampant!fraudulent!or!misleading!paper!transactions!including!“Ghost!Weight”,!“Air!Pounds”!and!others.!!

Preventing Ghost Weight

The!quickest!way!to!prevent!“Ghost!Weight”!(claims!of!having!collected!more!material!than!was!actually!collected)!is!to!require!billsJofJlading!(shipping!documents)!and!weight!slips!from!certified!commercial!truck!scales!that!verify!weights!of!materials!collected.!These!documents!would!have!to!be!submitted!with!each!invoice!and!audited!from!time!to!time!for!authenticity.!

Eliminating Paper Transactions

Allowing!primary!recyclers!to!purchase!records!from!other!recyclers!or!from!collectors!as!evidence!of!recycling!is!a!major!flaw!in!legislated!takeJback!programs.!Prohibiting!paper!transactions!all!together!would!eliminate!the!most!significant!cause!of!program!fraud.!!!

State!programs!should!require!that!the!only!acceptable!recycling!records!are!those!based!upon!auditable!and!verifiable!evidence!of!physical!material!transacting!between!collectors!and!recyclers,!recyclers!and!processors!and!between!processors!and!final!destination!facilities.!Verification!can!be!accomplished!by!thirdJparty!monitoring.!!

Third-Party Mass Balance Monitoring

Even!the!most!diligent!generators!of!eJwaste!that!carefully!scrutinize!and!monitor!eJrecycling!vendors!can!become!the!victim!of!deceptive!practices!that!put!the!their!organization!at!risk.!Requiring!thirdJparty!eJrecycler!certification!(eJStewards!or!R2)!is!a!good!first!step!toward!ensuring!responsible!recycling.!These!certifications!qualify!a!company’s!compliance!with!industryJaccepted!best!practices.!


!

! !

They!do!not,!however,!audit!most!general!business!practices.!Whether!a!recycler!is!eJStewards/R2!certified!or!registered!under!the!internationally!recognized!ISO!9000!(business!practices)!or!ISO!14000!(environmental!practices),!all!of!these!thirdJ!party!programs!only!involve!annual!audits!for!compliance.!Monitoring!activity!the!rest!of!the!year!is!left!up!to!the!eJrecycler’s!customers.!

ThirdJparty!mass!balance!monitoring!is!a!new!concept!for!the!eJrecycling!industry!and!entails!verification!by!an!independent!party!of!all!shipments!flowing!into!and!out!of!eJrecycling!facilities.!The!systems!should!provide!authorized!clients!with!continual!access!to!information!on!downstream!material!flows.!If!a!recycler!is!storing!material!for!any!reason,!it!will!become!evident!on!the!mass!balance!monitor;!i.e:!more!material!has!been!received!by!the!facility!than!has!been!shipped!for!recycling!(and!verified).!

Requiring!recyclers!involved!in!state!takeJback!programs!to!register!for!thirdJ!party!monitoring!and!using!the!information!provided!by!the!system!to!oversee!recyclers!will!likely!be!an!efficient,!effective!and!inexpensive!means!of!preventing!unwanted!stockpiles!from!occurring.!Additionally,!OEMs!using!recyclers!that!are!registered!on!a!massJbalance!monitoring!system!could!adapt!a!new!'ecoJlabel'!to!brand!their!products!as!such,!helping!consumers!identify!products!supported!by!a!truly!accountable!recycling!program.!

Lessons Learned

The!failure!of!the!National!Product!Stewardship!Initiative!(NEPSI)!in!2004!(p.49)!forced!individual!states!to!develop!their!own!plans!for!removing!eJwaste!from!the!solid!waste!stream.!The!result!is!a!variety!of!programs,!all!with!particular!strengths!and!weaknesses,!which!have!served!as!testJbeds!for!best!practices!and!results.!

States!can!now!draw!from!8!years!of!experience!in!implementing!takeJback!legislation.!The!25!states!that!have!yet!to!implement!takeJback!programs!can!benefit!from!upon!this!experience.!


!

! !

The$negative$impact$of$

landfilling$on$investment$in$new$

CRT$recovery$technology$will$be$

palpable.$

$

THE CASE AGAINST LANDFILLING: THE RACE TO THE BOTTOM

Preventing Investment in New Technology

As!stated!earlier,!California!has!approved!an!emergency!rule!to!allow!disposal!of!leaded!CRT!glass!in!hazardous!waste!landfills.!The!reasons!cited!for!this!rule!are!that!constraints!in!glass!markets!have!caused!stockpiling!and!that!an!alternative!is!necessary!as!a!temporary!reliefJvalve.!The!rule!is!intended!to!be!in!effect!for!two!years,!after!which!time!the!state!hopes!that!new!recovery!technologies!be!available!and!that!landfilling!will!be!no!longer!necessary.!

The!problem!with!this!logic!is!that!landfilling!of!CRT!glass!is!a!major!factor!preventing!investors!from!supporting!development!of!new!glass!and!lead!recovery!facilities.!And,!history!has!shown,!that!as!California!goes!on!environmental!issues,!so!goes!the!nation.!Even!if!hazardous!waste!landfilling!does!not!attract!many!eJrecyclers,!the!impact!on!investment!in!new!technology!will!be!palpable.!

Loss of $ Billions in Recoverable Resources - $ Billions in Remediation Costs

CRT!glass!contains!lead!and!other!resources!that!could!be!lost!forever!if!landfilled.!The!energy!required!to!obtain!or!create!these!materials!is!significantly!higher!than!recovering!them!from!scrap!CRTs.!Even!the!stateJofJtheJart!in!landfill!design!cannot!ensure!that!future!generations!will!not!be!strapped!with!the!tremendous!costs!associated!with!remediating!leaking!landfills.!

Job Loss

Almost!all!US!CRT!processing!operations!currently!operate!on!a!single!shift.!Although!the!number!of!jobs!in!this!sector!of!the!eJwaste!industry!has!yet!to!be!quantified,!not!only!will!landfilling!imperil!current!employment,!but!growth!in!the!sector!and!support!industries!will!be!nonexistent.!Diverting!


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recoverable!resources!to!landfills!impacts!availability!of!just!the!type!of!jobs!that!are!most!needed!in!the!US.!

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Another!look!at!the!landfill!ban!map!provides!a!stark!example!of!how!landfill!bans!promote!job!growth.!!The!yellow!stars!represent!locations!of!CRT!tube!and!CRT!glass!processors!in!the!US.!As!such!18!of!the!24!CRT!facilities!are!located!in!states!with!landfill!bans!whereas!only!6!are!located!in!states!without!landfill!bans.!


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The$federal$government’s$

commitment$to$using$only$

certified$e9recyclers$was$an$

important$first$step.$Now,$

taking$steps$to$insuring$$the$

integrity$of$e9recycler$

certification$is$essential.$

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Impacts on National Progress in e-Recycling

NEPSI

In!2000,!the!USEPA!launched!the!National!Electronic!Product!Stewardship!Initiative!(NEPSI),!a!multiJstakeholder!effort!to!develop!a!uniform!national!electronics!takeJback!strategy.!The!process!cost!the!USEPA!and!stakeholders!hundreds!of!thousands!of!dollars!in!time,!travel!and!meeting!expenses.!!After!over!3!years!of!negotiation,!the!talks!hit!a!stalemate!when!the!USEPA!ceased!to!fund!the!process!and!stakeholders!could!not!agree!on!whether!an!EPR!or!ARF!program!would!be!the!best!national!model.!!

“Failure”!of!the!NEPSI!process!forced!states!to!design!their!own!programs!to!address!eJwaste!disposal!issues.!Although!this!relegated!the!job!of!controlling!eJwaste!disposal!to!the!states,!the!NEPSI!dialog!served!to!establish!the!framework!for!two!takeJback!models!that!quickly!began!to!be!adopted!by!states.!!

e-Recycler Certification

In!2005,!the!USEPA!responded!to!demand!by!the!US!eJrecycling!industry!to!develop!best!practices!for!management!of!eJwaste!in!recycling!facilities.!!The!USEPA!again!convened!a!multiJstakeholder!process!and!financially!supported!facilitation!and!meetings.!The!process!ensued!for!almost!3!years!and!resulted!in!the!Responsible!Recycling!Practices,!or!the!“R2”!Standard7.!

The Obama Proclamation

On!November!15th!(America!Recycles!Day)!2010,!President!Obama!issued!a!Proclamation!establishing!an!interagency!task!force!to!prepare!a!national!strategy!for!responsible!electronics!stewardship,!indicating!that!that!the!federal!government,!the!largest!generator!of!eJwaste!in!the!world,!would!lead!by!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!7!The!group!divided!over!requirements!and!restrictions!surrounding!export!of!hazardous!eJwaste!to!developing!countries.!This!resulted!in!development!of!a!competing!standard!designed!to!prohibit!such!export;!the!eJStewards!Standard.!!

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example.!The!resulting!task!force!pledged,!among!other!things,!that!federal!agencies!would!only!use!certified!eJrecyclers!(R2!or!

!eJStewards)!for!management!of!federally!generated!eJwaste.!This!commitment!to!best!management!practices!set!an!example!for!other!governmental!bodies,!private!businesses!and!individual!consumers!to!commit!to!responsible!eJrecycling.!!

Although!this!is!an!important!firstJstep,!ensuring!the!integrity!of!eJrecycler!certification!programs!is!essential.!This!can!be!accomplished!via!onJgoing!thirdJparty!mass!balance!monitoring!of!certified!recyclers!

USEPA Waste Management Hierarchy

Finally,!the!USEPA!has!committed!to!and!strongly!promotes!its!waste!management!hierarchy!established!shortly!after!its!inception!in!1970.!

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The!hierarchy!establishes!recycling!among!the!most!preferred!management!options!and!ranks!disposal!as!the!least!preferred.!Will!the!USEPA!stand!by!and!allow!states!to!landfill!hazardous!but!valuable!electronics,!turning!the!waste!management!hierarchy!upsideJdown!after!40!years?!

Steps to Nationally Sustainable e-Waste Management Implementation!of!sustainable!solutions!for!managing!eJwaste!in!the!U.S.!requires!careful!execution.!Widely!accepted!goals!of!minimizing!impact!on!human!health!and!the!environment!in!the!U.S.!and!abroad!requires!two!broad!initiatives:!!

1) Increase!the!quantity!of!eJwaste!being!recycled!and!the!quality!of!that!recycling!2) Diverting!all!eJwaste!from!landfills!

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Increasing Take-Back Quantity, Improving Quality

TakeJback!laws!passed!by!many!states!have!proven!to!be!significant!drivers!of!increased!eJwaste!collection!volumes.!These!laws!have!been!passed!in!24!states!and!collection!programs!have!been!up!and!running!in!most!of!those!states!for!a!number!of!years.!!

Next!steps!by!the!states!should!include:!

a. Implementing!additional!oversight!and!accountability!measures!to!address!the!problems!

raised!in!this!report:!The!programs!should!focus!on!the!quality!of!recycling!as!much!as!the!quantity!of!recycling.!States!with!laws!not!requiring!recyclers!to!be!certified!(R2!and/or!eJStewards)!could!now!add!these!requirements.!(Many!laws!were!passed!before!these!standards!and!certification!programs!were!up!and!running.)!When!commercially!available,!thirdJparty!mass!balance!monitoring!all!collectors!and!recyclers!participating!in!state!programs!should!also!be!required.!

b. Harmonization!between!the!states:!Some!aspects!of!the!state!programs!could!be!better!harmonized!between!the!states!to!make!them!a!bit!more!uniform!and!less!onerous!for!OEMs!and!recyclers.!

c. States!without!takeAback!laws!should!pass!legislation!to!implement!programs.!


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Diverting e-Waste from Landfills

While!it!may!seem!logical!to!propose!a!national!landfill!ban!on!eJwaste,!the!reality!is!that!in!states!with!weak!or!no!takeJback!programs!this!would!simply!result!in!more!eJwaste!being!exported!to!developing!nations,!and!possibly!illegal!dumping.!!

Most!states!with!strong!eJwaste!laws!have!implemented!disposal!bans!to!keep!eJwaste!out!of!!landfills!or!incinerators.!The!laws!typically!take!effect!a!year!or!two!after!takeJback!programs!are!up!and!running.!The!logic!is!to!build!up!recycling!infrastructure!before!removing!the!disposal!option.!States!that!have!yet!to!implement!takeJback!programs!should!follow!suit.!


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About TransparentPlanet TransparentPlanet!was!established!in!2008!to!service!the!electronics!recycling!industry!by!improving!businesses!and!driving!positive!industry!change.!

Consulting Services

Consulting!services!include!strategic!business!planning!for!new!and!expanding!businesses!and!working!with!special!interest!groups!within!the!electronics!recycling!industry!to!foster!solutions!on!specific!issues.!

Third- Party Mass Balance Monitoring

TransparentPlanet!is!developing!the!industry’s!first!thirdJparty!massJbalance!monitoring!system!where!material!flows!in!the!eJrecycling!supply!chain!are!monitored!and!verified.!By!closing!the!gap!where!certification!programs!leave!off,!TransparentPlanet!registered!recyclers!offer!customers!effective!and!economical!oversight!of!eJrecycling!activities.!!

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A!beta!system!is!currently!undergoing!pilot!testing.!The!full!system!will!be!commercially!available!midJ2013.!!

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Contact:!! Lauren!Roman,!Managing!Director!

! ! [email protected]!

! ! 973J224J7632!

! ! www.TransparentPlanetLLC.com!!

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U.S. CRT Glass Management - transparentplanetllc.com

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