BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1022
                                                                  Page 1

          Date of Hearing:  April 15, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                 AB 1022 (Eggman) - As Introduced:  February 22, 2013
           
           SUBJECT:  Electronic waste:  CRT glass market development  
          systems

           SUMMARY  :  Dedicates $10 million annually for cathode ray tube  
          (CRT) glass market development payments for manufacturers and  
          recyclers that manufacture products in California using recycled  
          CRT glass.  

           EXISTING LAW  : 

          1)Establishes the Electronic Waste Recycling Act of 2003 (Act)  
            to provide a cost-free and convenient means for consumers to  
            return, recycle, and ensure the safe and environmentally-sound  
            disposal of covered electronic devices (CEDs).  A CED is a  
            video display device containing a screen greater than four  
            inches, measured diagonally.  CEDs that are discarded are  
            considered covered electronic waste (CEW).

          2)Requires a consumer to pay a CEW recycling fee upon the  
            purchase of a new or refurbished CED at the time of the retail  
            sale.  The CEW recycling fee ranges from $3 to $5 for each  
            CED, depending on the screen size, and is used primarily to  
            pay CEW collectors and recyclers.

          3)Provides for payments to CEW collectors and recyclers for  
            costs associated with collecting and recycling CEW that has  
            been generated in the state.  Regulations expressly prohibit a  
            CEW collector or recycler from requesting payments for  
            non-California CEW.  CEW owned by a person in California but  
            used entirely outside of the state is not eligible for  
            payment.

           THIS BILL  : 

          1)Defines "CRT glass" to mean glass derived from the treatment  
            or breakage of a cathode ray tube that is from or part of a  
            CED.  

          2)Establishes "CRT glass market development payments" for a  








                                                                  AB 1022
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            manufacturer or an electronic waste recycler who uses CRT  
            glass to manufacture a product in the state.  

          3)Continuously appropriates $10 million annually for CRT glass  
            market development payments from the Electronic Waste Recovery  
            and Recycling Account.  

          4)Requires the Department of Toxic Substances Control (DTSC) to  
            administer the CRT glass market development payments (the  
            other payments under the Act are administered by CalRecycle).   


          5)Specifies that DTSC may only make a CRT glass market  
            development payment to a manufacturer or electronic waste  
            recycler if it determines that: 

             a)   The manufacturer or recycler demonstrates that it is in  
               compliance with all applicable laws; and, 

             b)   The manufacturer or recycler will use the glass to  
               manufacture a product in the state.  

          6)Sunsets the provisions of the bill on an unspecified date.  

           FISCAL EFFECT  :  Unknown 

           COMMENTS  :

           Background  .  In 2001, DTSC determined that CRT devices are  
          hazardous, which means that they must be managed as hazardous  
          waste when disposed.  In response to this determination, the  
          Legislature enacted SB 20 and SB 50 (Sher) in 2003, which  
          established the Act to create a cost-free and convenient way for  
          consumers to return, recycle, and ensure the safe and  
          environmentally-sound disposal of hazardous video display  
          devices, including CRTs.  Since January 2005, more than 965  
          million pounds (approximately 75 percent) of CEW have been  
          recycled as a result of the Act. The Act has created jobs and  
          fostered California's electronic waste and recycling  
          infrastructure with approximately 600 approved CEW collectors  
          and 60 approved recyclers throughout the state. The state's CEW  
          infrastructure also recovers substantial quantities of  
          miscellaneous electronic waste not covered by the CEW payment  
          system.  









                                                                  AB 1022
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          A CRT includes the glass tube and panel contained in older-model  
          televisions and computer monitors.  Because of its high  
          lead-content (about 25 percent), there are limited recycling  
          options for CRT glass.  Last month, CalRecycle held a CEW  
          Recycling Program Stakeholder Workshop, which included a  
          discussion about the challenges of managing CRT glass.   
          Currently, this material can only be used to manufacture new CRT  
          glass, for which there is very little market, and in lead  
          smelters, which recycles only the lead contained in the glass.   
          CalRecycle has only identified three smelters in the US that  
          will accept significant quantities of CRT glass.  The panel  
          portion of the glass is less hazardous, containing little to no  
          lead and barium for radiation shielding, but also lacks a  
          recycling market.  As a result, CRT glass is being stockpiled by  
          electronic waste recyclers.  According to DTSC, in 2010 more  
          than 17 million pounds of CRT glass had accumulated at  
          collection facilities.  

          In October of last year, DTSC adopted emergency regulations to  
          try to address this glut of CRT glass.  The regulations:  allow  
          recycling options other than CRT glass-to-CRT glass and lead  
          smelting, consistent with the requirements for other hazardous  
          waste recycling requirements; allow the disposal of leaded CRT  
          glass at hazardous waste disposal facilities; and, allow the  
          disposal of non-leaded panel glass (e.g., barium-coated panel  
          glass) at solid waste landfills.  While these regulations create  
          a pathway for expanded recycling and disposal, they will not  
          address the need for new processing technologies to make CRT  
          glass recyclable.  

          CalRecycle indicates that new lead extraction technologies are  
          being developed on a small scale, which may enable both the lead  
          and the glass to be recycled.  On example of this technology is  
          Closed Loop Recycling, located in Arizona, which has developed a  
          process that separates CRTs.  The less-hazardous panel glass is  
          separated for polishing to remove any coatings and the clean  
          glass is sold for recycling.  The leaded funnel and any leaded  
          panel glass is processed using a new type of furnace that  
          operates at a lower temperature than traditional glass furnaces.  
            This lower temperature prevents the lead from volatizing,  
          allowing the lead and the molten glass to be separated for  
          recycling.  

           This bill:   According to the author, this bill is intended to  
          keep leaded CRT glass out of the waste stream and create jobs in  








                                                                  AB 1022
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          California by providing incentives for CRT glass recycling.  The  
          incentives would be funded using existing fees collected under  
          the Act.  

           Suggested amendments  :   The committee may wish to make the  
          following amendments  to AB 1022:  

          1)To be consistent with the other payments made under PRC  
            Section 42476, specify that the CRT glass market development  
            payments are to be administered by CalRecycle rather than  
            DTSC.  

          2)In order to ensure adequate oversight of the management of  
            potentially hazardous CRT glass, require that CalRecycle  
            administer the payments in consultation with DTSC.  

          3)Specify that the payments are available for processing  
            technologies that separate the lead from CRT glass in a manner  
            that allows the non-hazardous glass to be recycled. 

          4)Clarify that the term "manufacturer" for purposes of the CRT  
            glass market development payments refers to the producer or  
            manufacturer of a product containing recycled CRT glass in  
            California.  (The current definition refers to manufacturers  
            of CEDs.)  

          5)Clarify that the CRT glass market development payments are  
            authorized until January 1, 2023. 

          6)Make related technical changes.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Californians Against Waste (sponsor) 
          California Association of Recycling Market Development Zones
          Glass Packaging Institute
          Natural Resources Defense Council 
          Sims Recycling Solutions

          Opposition 
           
          None on file
           








                                                                 AB 1022
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          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092