BILL ANALYSIS AB 2202 Page 1 Date of Hearing: April 26, 2006 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Ira Ruskin, Chair AB 2202 (Saldana) - As Amended: April 24, 2006 SUBJECT : Hazardous waste: electronic devices SUMMARY : Expands the scope of electronic products that would be banned from sale in California if they are banned from sale in the European Union (EU) pursuant to the Reduction of Hazardous Substances (RoHS) directive. Specifically, this bill : 1. Redefines "electronic device" as any electronic plug-in or battery operated device that also falls under the categories set out in RoHS. 2. Defines RoHS. 3. Requires DTSC to adopt regulations to prohibit an electronic device from being offered for sale in California if the device is prohibited by the EU on and after January 1, 2008. EXISTING LAW Requires DTSC to adopt regulations by January 1, 2007, to prohibit certain electronic devices (those currently defined as 'covered electronic devices' for the purposes of the Electronic Waste Recycling Act such as televisions, computer monitors and laptop computers) for sale in California if they are prohibited for sale in the EU. Pursuant to the Annex 1A to Directive 2002/96/EC, adopted by the European Parliament and the Council of the European Union on January 27, 2003 and as amended thereafter by the Commission of European Communities, prohibits the sale of certain electronic devices from being sold or offered for sale in the EU due to the presence of certain heavy metals. FISCAL EFFECT : Unknown COMMENTS : 1. RoHS: EU and California AB 2202 Page 2 According to the U S EPA, about 70% of the toxic heavy metals found in landfills come from electronic waste. Lead, mercury, cadmium and a host of other toxic heavy metals contained in most consumer electronics pose a real threat to public health and the environment. These toxic substances can damage nervous, kidney and reproductive systems, while some of the metals contain carcinogens, which are known to cause cancer. RoHS, or the "Restriction of the use of Certain Hazardous Substances," refers to the ban on the use of hazardous substances in electronic devices under the EU directive 2002/95/EC. Under the EU RoHS, electronic products containing lead, mercury, cadmium, hexavalent chromium, and two types of brominated flame retardants are banned from sale beginning July 1, 2006. Currently, the ban will only apply to products sold in the EU, but are expected to have a worldwide impact since companies are not expected to create two versions of their products for sale in different markets. As a result, other countries and states, including California, are beginning to look at stronger environmental standards to match what the EU is doing. California has a similar RoHS law, which requires DTSC to adopt regulations that prohibit an electronic device from being sold or offered for sale if they are prohibited under the EU's RoHS. However, the California's RoHS applies only to electronic devices which are currently covered under the Electronic Waste Recycling Act, including televisions, computer monitors and laptop computers. This bill would expand the California RoHS law to include any electronic device that is covered under the EU RoHS directive. 2. Need for the bill The author has indicated that SB 2202 is intended to send a message to manufacturers and their suppliers that California expects the same environmentally preferable electronic products to be sold here as in the EU. Also, it is hoped that if an economy as large as California's demands the level of safety for its electronic products as in the EU, this will help drive the global market place to shift the world market to safer products. The bill is not intended to have any broader implementation than of that of the EU and it is not intended to apply to products that are AB 2202 Page 3 not sold in the EU marketplace. With the EU RoHS coming on line this summer, it is necessary to ensure California has a similar measure in place, even if it is prospective, to prevent non-EU RoHS compliant products from being sold in California and insist on the same level of environmental safety. 3. Outstanding Issues Since the hearing in the Natural Resources Committee on April 3, 2006, the author and the sponsor, in response to direction given during the hearing, have done further research and met with stakeholders. While the April 24th amendments do not address all the issues raised by stakeholders, it appears that issues are becoming more clearly defined and thus resolution appears possible. The major issues appear to be: a. Timing: Is January 2008 the correct implementation date? Many manufacturers have indicated that the implementation date in SB 2202 of January 2008 presents a significant challenge. While some manufacturers such as Sony are already RoHS compliant, others are concerned that the 2008 date is problematic given product design, lifecycle, and component supply chain and other like issues. The EU RoHS directive allowed a four year phase in period. China has recently issued its own version of RoHS, with an effective date of March 2007. It is likely that with further negotiations, an implementation date that fits the needs of stakeholders could be decided upon. b. Enforcement: What will it look like for California? An efficient and effective enforcement program is essential to make sure the playing field is level for all stakeholders and to ensure the law is implemented equitably. Consistency in the types and methods of enforcement of the EU RoHS is an issue raised by many manufacturers that also applies to a California RoHS. However, with the EU member states still in the development stages of their enforcement efforts, there is not yet a model to point to. Some EU member states, such as the United Kingdom are farther along AB 2202 Page 4 in their enforcement program which could serve as a model for California. As implementation moves forward in the EU, enforcement models and protocols will be developed that could be used by California. Also, the DTSC is working on the regulations to implement the pending January 2007 requirement for the current scope of products that could be banned from California sale. A solution to this issue might be to not require DTSC to develop an enforcement strategy for a California RoHS until there are models to use as guides and to further define DTSC's role. This option, among others, is being discussed among the proponents of AB 2202 and manufacturers. c. Scope of products: European market vs California market? The goal of AB 2202 is to parallel the EU RoHS and ensure that a product that cannot be sold in the EU cannot be sold in California. However, it is necessary to clarify how that process will work. Again, because the EU and member states are finalizing their enforcement methods and determining how the ban will be implemented, this is an issue that will become clearer as that process goes forward. It is important to remember that because a product could not be banned from sale in California until it has been banned in the EU, it is not possible for California to 'get ahead' of the EU and ban the sale of products on its own and cause confusion for manufacturers. REGISTERED SUPPORT / OPPOSITION : Support Californians Against Waste Earthtones Sierra Club California Planning and Conservation League Californians for Alternatives to Toxics Stopwaste.org California League of Conservation Voters Opposition American Electronics Association AB 2202 Page 5 Cingular Wireless California Chamber of Commerce California Manufacturers and Technology Association Consumer Electronic Association CTIA-The Wireless Association Electronic Industries Alliance QUALCOMM, Inc. National Electrical Manufactures Association Semiconductor Industry Association Silicon Valley Leadership Group Analysis Prepared by : Caroll Mortensen / E.S. & T.M. / (916) 319-3965