BILL ANALYSIS AB 1280 Page 1 Date of Hearing: April 28, 2009 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Wesley Chesbro, Chair AB 1280 (Adams) - As Introduced: February 27, 2009 SUBJECT: Electronic waste recycling. SUMMARY : Exempts, from the requirements of the Electronics Waste Recycling Act, a video display device that is contained within a freezer, induction cooktop or range, beverage maker, or food steamer. EXISTING LAW: Pursuant to the Electronics Waste Recycling Act (E-waste Act): 1)Defines "covered electronic device" (CED) as a video display device containing a screen greater than four inches, measured diagonally, and identified in regulations adopted by DTSC. 2)Excludes from this definition a video display device that is a part of a motor vehicle; a device in a piece of industrial, commercial, or medical equipment; a device in a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air-conditioner, dehumidifier, or air purifier. 3)Requires a consumer purchasing a CED to pay a covered electronic waste recycling fee (e-waste fee). 4)Authorizes retailers or vendors to retain 3 percent of the e-waste fee as reimbursement for costs associated with the collection of the fee and requires retailers to transmit the remainder of the fee to the state. 5)Requires e-waste fees to be deposited into the Electronic Waste Recovery and Recycling Account, which is continually appropriated to the California Integrated Waste Management Board (CIWMB) and the Department of Toxic Substances Control (DTSC). 6)Requires the IWMB , in collaboration with DTSC, to make electronic waste recovery payments to cover the net cost of AB 1280 Page 2 authorized collectors to operate a "free and convenient" system for collecting, consolidating, and transporting CEDs, and to make electronic waste recycling payments to cover electronic waste recyclers' average net cost of receiving, processing, and recycling CEDs. FISCAL EFFECT : Unknown. COMMENTS : Purpose : According to STS Ventures, LLC, the sponsors of the bill, "The list of codified appliances needs to be updated to reflect changes in technology and the development of new appliances which are consistent with those appliances already exempted. Due to advances in new technology, it is now possible to include touch-screen features on relatively inexpensive products such as food steamers and hot beverage makers. While this would provide the obvious benefit of replacing manual switches and dials, it could also provide additional safety enhancements such as the option for a child-lockout feature. However, while pricing for video screen technology continues to drop to within easily affordable levels for consumer products, adding an additional E-waste fee of $12 - $20 onto a $25 food steamer quickly makes that feature cost prohibitive when compared to products not containing video screens." E-waste fees and CED take-back programs : An e-waste fee is assessed on certain "covered electronic devices" sold in California. "Covered" means covered by the law, and includes most video display products such as computer monitors and televisions. The fee is based upon the viewable size of the video display, measured diagonally, and is assessed at the time of retail sale, including Internet and catalog sales, to California consumers. The current fee amount, as of 1/1/2009, is a follows: 1) Greater than 4 inches but less than 15 inches-- $8. 2) Greater than or equal to 15 inches but less than 35 inches, $16. 3) Greater than or equal to 35 inches, $25. Collected fees are deposited in the Electronic Waste Recovery and Recycling Account and are used to provide payments to authorized collectors and recyclers, fostering the development of recycling opportunities and offsetting the cost of properly managing CEDs at the end of their useful lives. Due to AB 1280 Page 3 hazardous components, it is unlawful to dispose of most covered electronic devices with regular municipal waste. Devices in kitchen electrics not "covered electronic devices: " The E-waste Act defines "covered electronic devices" as a video display device identified in regulations adopted by DTSC. As part of its implementation of the E- Waste Act, DTSC tested electronic devices to determine which would be hazardous waste when discarded; only video display devices that DTSC determines "are presumed to be, when discarded, a hazardous waste" are potentially covered by the Act. Effective February 4, 2009, under the California Code of Regulations (Title 22, Division 4.5, Chapter 10, Section 66260.202), DTSC delineated only the following electronic devices as CEDs pursuant to the E-Waste Act, if they have a viewable screen size greater than four inches: CRT-containing devices; CRTs; CRT-containing computer monitors; LCD-containing laptop computers; LCD-containing desktop monitors; CRT-containing televisions; LCD-containing televisions (excluding LCD projection televisions); Plasma televisions (excluding plasma projection televisions); and Portable DVD players with LCDs. CRT means cathode ray tube and LCD means liquid crystal display. It does not appear that any of the products that are proposed to be exempted from the definition of a "covered electronic device" in this bill are currently defined as such in regulation. Additionally, it does not appear that such products exist at this time (i.e. a freezer, induction cooktop or range, beverage maker, or food steamer with a video display device larger than 4 inches). However, should one of the products be created, it would not be subject to the e-waste fee. Legislative vs. regulatory determinations : SB 50 (Chapter 863, Statutes of 2004) expanded the list of products exempted from the definition of a CED to include common household appliances (i.e. a video display device that is contained within a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier, or air purifier.) Rather than continually adding products to be exempted from the definition of CED in statute, the Legislature may wish to require DTSC to determine, though their regulatory process, which products are considered a CED. AB 1280 Page 4 Opposition : Opponents to AB 1280, Californians Against Waste, maintain that, "It appears that most, if not all, of the devices proposed for exemption [in this bill] are hazardous and banned from landfill, with or without the imbedded video device. These devices contain a variety of toxic substances, which may include lead, mercury and cadmium. Some devices may also contain hazardous refrigerants and lubricants that must be properly removed. When these devices are disposed into landfills, these toxins can be released into the environment, posing a threat to both health and the environment? California's successful e-waste recycling program provides a funding mechanism to ensure that consumers have a free and convenient mechanism for recycling covered devices that they are prohibited from disposing when their useful life has ended? While the market-based collection and recycling infrastructure developed as a result of the state's e-waste program currently targets primarily televisions, computer monitors and laptop computer devices, there remains a tremendous need for a system that provides consumers with an equally safe, free and convenient mechanism for the collection and recycling of obsolete, hazardous, appliances." REGISTERED SUPPORT / OPPOSITION : Support STS Venture, LLC (sponsor) California Retailers Association Opposition Californians Against Waste Analysis Prepared by : Shannon McKinney / E.S. & T.M. / (916) 319-3965