BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2202
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          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








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                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
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               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  








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                    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
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          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