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  









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                 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. 










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            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.









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           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,  









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              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  









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              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  









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             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  









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              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  









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              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  









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              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  









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                          Chamber of Commerce, California Manufacturers  
                          and Technology Association, Computing  
                          Technology Industry Association, Electronic  
                          Industries Alliance, Hewlett-Packard Company,  
                          Osram Sylvania, Silicon Valley Manufacturing  
                          Group