BILL ANALYSIS SB 1619 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Byron D. Sher, Chairman 2001-2002 Regular Session BILL NO: SB 1619 AUTHOR: Romero AMENDED: April 17, 2002 FISCAL: Yes HEARING DATE: April 22, 2002 URGENCY: No CONSULTANT: Kip Lipper SUBJECT : SOLID WASTE: CATHODE RAY TUBES (CRT'S) AND DEVICES; RECYCLING AND REFURBISHMENT SUMMARY : Existing law : 1) Under the federal Resource Conservation and Recovery Act of 1976 (RCRA) and subsequent amendments to the Act, generally requires the US Environmental Protection Agency (US EPA) to establish standards and regulations for the management and disposal of hazardous materials and wastes. 2) Under the California Integrated Waste Management Act (Division 30 (commencing with Section 40000) of the Public Resources Code): a) Requires local agencies to divert, through source reduction, recycling, and composting, 50% of solid waste disposed by their jurisdictions by the year 2000. b) Requires local enforcement agencies (LEA's) for solid waste (generally cities or counties) to enforce statewide minimum enforcement standards for solid waste handling and disposal. c) Establishes a statewide household hazardous substance information and collection program within the California Integrated Waste Management Board (CIWMB), which consists of public education and local government planning, assistance and funding though grants administered by the board, for the purposes of ensuring the proper and safe disposal of household hazardous SB 1619 Page 2 substances. d) Establishes a series of special solid waste reduction and market development programs administered by the CIWMB for wastes ranging from metallic discards, paper, compost materials, plastic trash bags, and rigid plastic beverage containers. 3) Under Chapter 6.5 (commencing with Section 25000) of the Health and Safety Code, which generally governs the authority of the Department of Toxic Substances Control (DTSC) to regulate hazardous materials and wastes: a) Requires DTSC to adopt, and revise as appropriate, standards and regulations for the management of hazardous wastes for the protection of the public health, domestic livestock, wildlife, or the environment. b) Requires DTSC to maintain its hazardous waste disposal program in a manner which, at minimum, meets the requirements of the federal RCRA in order to maintain federal delegation of its program. 4) Under Title 22 of the California Code of Regulations (CCR) adopted by DTSC pursuant to the statutory authority described under (3) above: a) Establishes a "Universal Waste Rule" under which high volume, relatively low-risk hazardous wastes (e.g. batteries, florescent lamps, cameras etc.) are exempted from standard and more stringent hazardous waste management rules but are subject to less comprehensive management and disposal requirements commensurate with the risks they pose. b) Requires persons other than households and small businesses, who generate, handle, collect, transport or recycle cathode ray tube materials (CRT's), as defined, to manage those wastes as universal wastes and prohibits their disposal in solid waste disposal facilities. SB 1619 Page 3 This bill : 1)Specifies that the CIWMB expend funds in the Cathode Ray Tube Recycling Account established in the Integrated Waste Management Fund pursuant to SB 1523 (Sher) as follows: a) To provide matching grants to local governments to establish and maintain local programs that provide for the convenient and cost-effective collection and processing of CRTs. b) To provide annual recycling incentive payments to CRT material handlers that collect and process cathode ray tubes and CRT devices. The board shall place highest priority on supporting CRT material handling facilities that have obtained registration pursuant to Standard No. 14001 of the International Standards Organization (ISO 14001). c) To provide grants to nonprofit agencies that refurbish CRTs for reuse, including costs they incur in disposing of, recycling, or refurbishing CRTs which are donated to them. d) To provide loans and loan guarantees to manufacturers to research and develop environmentally friendly CRTs. 2)Authorizes the CIWMB to administer the E-waste program established under SB 1523 (Sher) except for those activities within the jurisdiction of the DTSC, to establish a new division or office for that purpose, to adopt regulations, to prepare publications and to solicit expertise of other state agencies for the purposes of implementing the program. 3)Makes legislative findings and declarations that the goals of the state for the diversion, reduction and recycling of CRT's shall be 80% by 2004 and 100% by 2006 for diversion, and 25% by 2004, 50% by 2007 and 75% by 2010 for reuse and recycling, and provides that these percentages are intended to be goals to facilitate and encourage compliance with existing laws and not to supercede any other laws related to the disposal of hazardous waste. SB 1619 Page 4 4)On and after January 1, 2004, requires all CRT's, CRT devices, and their packaging to include a clear and conspicuous warning label approved by DTSC that specifies the types of hazardous materials in the CRT and that provides appropriate information on the proper discarding and reuse of CRT's. 5)Makes enactment of this measure contingent on enactment of SB 1523 (Sher) which also deals with the subject of CRT's. COMMENTS : 1) Purpose of Bill . According to the author's office, as recently amended this bill provides the spending authority for funds collected under SB 1523 (Sher) which is also on the committee's agenda for hearing today, as well as establishing statewide recovery and recycling goals, requiring a warning label on CRTs. The author notes that DTSC has determined that Cathode Ray Tubes (CRTs) including all televisions and computer monitors are hazardous when disposed of because of the lead content and therefore cannot be disposed of in California landfills. This ruling applies to more than 6 million CRTs that are awaiting disposal in California homes and businesses. There is no infrastructure or funding in place to handle this kind of discarded material. The author points out that local governments operate household hazardous waste facilities to collect and process hazardous materials. Typically they collect paint, cleansers, batteries, automotive products, and other hazardous materials found in homes. They have never collected CRTs and they have no infrastructure in place to do so. Costs for dealing with the existing 6 million CRTs awaiting disposal are estimated to be near $1 billion. The ongoing costs of e-scrap is estimated to be roughly $50 million annually 2) Electronic Waste or "E-Waste" and CRT's Defined . According to information from the CIWMB and DTSC websites: "E-waste is a popular, informal name for electronic products nearing the end of their 'useful life.' Computers, televisions, SB 1619 Page 5 VCRs, stereos, copiers, and fax machines are common electronic products. Many of these products can be reused, refurbished, or recycled. Unfortunately, electronic discards is one of the fastest growing segments of our nation's waste stream. In addition, some researchers estimate that nearly 75 percent of old electronics are in storage, in part because of the uncertainty over how to manage the materials. Combine this with increasing advances in technology and new products headed towards the market and it is no wonder that "E-waste" is a popular topic." The term "E-waste" is loosely applied to consumer and business electronic equipment that is near or at the end of its useful life. There is no clear definition for E-waste; for instance, whether or not items like microwave ovens and other similar "appliances" should be grouped into the category have not yet been determined. Certain components of some electronic products contain materials that render them hazardous, depending on their condition and density. For instance, California regulation currently views nonfunctioning CRTs (cathode ray tubes) from televisions and monitors as hazardous." CRTs, often called "picture tubes," convert an electronic signal into a visual image. A typical CRT contains between two and five pounds of lead. Lead is a toxic substance which may cause lead poisoning and can be especially harmful to young children. If products containing lead are disposed of to the trash, the lead can potentially contaminate the soil and our water supplies. When tested, most CRT's exceed the regulatory threshold for lead and are identified as hazardous waste when discarded. Waste CRTs are subject to hazardous waste regulations which went into effect August 3, 2001. The regulations protect the environment by promoting the safe collection and recycling of waste CRT's. Disposing of CRTs to the trash or to a municipal landfill is prohibited." 3) New Report Suggests E-Waste Is International Environmental Concern . It is estimated that, in California alone, up to 6 million CRT's have piled up in attics, basements, garages, and other storage areas. Given the planned obsolescence of computers, TV monitors and the like, this SB 1619 Page 6 number is expected to increase over time. According to a new report issued earlier this year by the Silicon Valley Toxics Coalition [ Exporting Harm; The High-Tech Trashing Of Asia , Puckett et. al.], "Electronic waste or E-waste is the most rapidly growing waste problem in the world. It is a crisis not only of quantity but also a crisis born from toxic ingredients such as the lead, beryllium, mercury, cadmium, and brominated-flame retardants that pose both an occupational and environmental health threat. But to date, industry, government and consumers have only taken small steps to deal with this looming problem." ?trade in E-waste is an export of real harm to the poor communities of Asia. The open burning, acid baths and toxic dumping pour pollution into the land, air and water and exposes the men, women and children of Asia's poorer peoples to poison. The health and economic costs of this trade are vast and, due to export, are not born by the western consumers nor the waste brokers who benefit from the trade." The report makes the following summary findings: Millions of pounds of E-waste from obsolete computers and TVs are being generated in the U.S. each year and large amounts -- an estimated 50% to 80% collected for recycling -- are being exported. This export is due to cheaper labor, lack of environmental standards in Asia, and because such export is still legal in the United States. The E-waste recycling and disposal operations found in China, India, and Pakistan are extremely polluting and likely to be very damaging to human health. Examples include open burning of plastic waste, exposure to toxic solders, river dumping of acids, and widespread general dumping. Contrary to all principles of environmental justice, the United States, rather than banning exports of toxic E-waste SB 1619 Page 7 to developing countries, is actually facilitating their export. China has banned the import of E-waste and yet the United States refuses to honor that ban by preventing exports to them. Due to a severe lack of responsibility on the part of the federal government and the electronics industry, consumers, recyclers and local governments are left with few viable, sustainable options for E-waste. 1) State Regulatory and Administrative Efforts to Address Environmental Impacts of E-Waste Described . While the US EPA designated TV and computer picture tubes as hazardous wastes as long ago as the late 1980's, California's agencies have only recently taken direct action to regulate and assist in the proper collection, recycling, processing and disposal of E-waste. Last year, two state agencies took administrative actions to address growing awareness and concern over the E-waste problem. In August of 2001, DTSC adopted emergency regulations designating CRT's as "universal wastes" subject to its universal waste regulations (CCR Title 22 Section 66273 et. seq.). These regulations prohibit the disposal of CRT's in solid waste landfills and established procedures for the handling, processing, recycling, and disposal of CRT's. During the same timeframe, the CIWMB undertook a series of non-regulatory actions to address the problem of E-waste. The Board is supporting local E-waste collection activities through its annual household hazardous waste grant awards to local governments. It has also allocated $110,000 for a study of E-waste generation and infrastructure in California, and for development of state agency guidelines for procurement and end-of-life management of electronic equipment. Finally, the board has conducted a series of workshops and has provided guidance to LEA's on the proper management and disposal of E-waste. 2) National "Dialogue" On E-Waste Described . The National Electronics Products Stewardship Initiative (NEPSI) is a SB 1619 Page 8 non-governmental, non-regulatory voluntary organization established in April 2001 to create a "dialogue" among industry, environmental, recycling, and other stakeholders on the issue of electronic products management. According to its press materials, NEPSI consists of 45 participants, split evenly among industry, government, and includes environmental groups, recyclers, and retailers. According to NEPSI's website, "The infrastructure for collecting, reusing and recycling electronics in the United States has not kept pace with this growing waste stream, and the number of electronic products entering the waste stream is projected to increase dramatically unless reuse and recycling options expand. NEPSI's principal goal for the dialogue is 'the development of a system, which includes a viable financing mechanism, to maximize the collection, reuse, and recycling of used electronics, while considering appropriate incentives to design products that facilitate source reduction, reuse and recycling; reduce toxicity; and increase recycled content.' The NEPSI Dialogue has apparently agreed upon a non-binding timeline of the fall of 2002 for the review and completion of its efforts to develop a national model program for the management of E-waste. 3) Senate Select Committee on Urban Landfills Conducted Hearing On Electronic Waste . In January of this year, the Senate Select Committee held a hearing on the subject of E-waste and CRT's in which it took testimony from environmental groups, high-tech industry representatives, waste haulers and numerous other groups on the problem of E-waste. 4) Opponents State E-Waste Problem Should Be Addressed At National Level . [NOTE: Opposition to this measure was written in response to an earlier version of the bill]. Opponents to this measure, principally the electronics and high-tech industry, state that they oppose "a state-by-state piecemeal approach to the issue of electronics recycling" and prefer to work through the NEPSI process to develop a national solution to the problem. The SB 1619 Page 9 opponents state that there currently are a number of voluntary recycling programs undertaken by individual companies to address the E-waste problem. Opponents state that "state legislation on electronics recycling has the potential to severely disadvantage California manufacturers and the health of California's economy. They contend that a single state is not able to impose a front-end financing mechanism that would apply fairly to all types of sales. For example, a fee at the point of sale, as proposed under this measure, could not likely be required on direct mail and Internet purchases from retailers without nexus in California. They state that at least one-quarter of computer sales and a small but growing percentage of consumer electronic sales are conducted over the Internet or through remote sellers such as catalogue sales. Many of these sales can not be subject to fees implemented on a state-by-state basis. The opponents state that the labeling requirements of the bill will impose burdensome new requirements on manufacturers and may limit the availability of products to California consumers. The opponents state "such labeling would cause significant problems as it relates to interstate commerce, and does little, if anything to foster reduction of illegal disposal of these products." The opponents conclude that, in today's fragile economy, California cannot afford to burden in-state companies with this type of financing scheme. 5) Should Ban On CRT's In Landfills Be Statutorily Established ? In its earlier form, this measure proposed to place in statute the ban on disposal of CRT's in solid waste disposal facilities enacted by regulation by DTSC last year. That provision has since been deleted from the bill. The author and the committee may wish to consider whether or not to reinsert the provision into the bill. 6) This Measure and SB 1523 Should Be Reconciled . As recently amended, this measure now is made contingent on the passage of SB 1523 (Sher) and, in part, appears to have been drafted to provide the expenditure provisions for the CRT SB 1619 Page 10 recycling fee established under that bill. However, SB 1523 already establishes largely the same expenditure provisions now duplicated in this measure. The author and the committee may wish to delete these provisions so that there is no overlap between the two bills, or, at minimum to ensure that the two bills have identical expenditure provisions. 7) Unclear If Labeling Of CRT's Can Contain All of the Information Called For In Bill . This measure requires each CRT and its packaging to possess a label which includes a warning statement on hazardous materials in CRT's, the actual types of hazardous materials contained in the CRT, and information on how to properly dispose of the CRT. It is unclear if all of this information can fit onto a single label. The author and the committee may want to give DTSC greater discretion in determining the information on the label to ensure the information fits on the label. SOURCE : Senator Romero/Californians Against Waste SUPPORT : Alameda County Waste Management Authority, Allied Waste, Inc., Berkeley City Council, California Earth Corps, California Refuse Removal Council, California State Association of Counties, City and County of San Francisco, Cities of Costa Mesa, Milpitas, Morro Bay City Council and Santa Ana, County Sanitation Districts of Los Angeles County, Davis City Council, East Bay Municipal Utility District, League of California Cities, Los Angeles County Integrated Waste Management Task Force, National Council of Jewish Women/LA, Norcal Waste Systems, Inc. Republic Services, Inc., Planning and Conservation League, Sacramento Metropolitan Air Quality Management District, San Luis Obispo County Integrated Waste Management Authority, Santa Clara County Board of Supervisors, Sierra Club, Solid Waste Association of North America, California Chapters Waste Management, Inc., 14 individuals OPPOSITION : American Electronics Association, California SB 1619 Page 11 Chamber of Commerce, California Manufacturers and Technology Association, Computing Technology Industry Association, Electronic Industries Alliance, Hewlett-Packard Company, Osram Sylvania, Silicon Valley Manufacturing Group