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