BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1022
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          ASSEMBLY THIRD READING
          AB 1022 (Eggman)
          As Amended  April 23, 2013
          Majority vote 

           NATURAL RESOURCES   9-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Chesbro, Grove, Bigelow,  |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Garcia, Muratsuchi,       |     |Bocanegra, Bradford, Ian  |
          |     |Patterson, Skinner,       |     |Calderon, Campos,         |
          |     |Stone, Williams           |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Hall, Ammiano, Linder,    |
          |     |                          |     |Pan, Quirk, Wagner, Weber |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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.  Specifically,  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  
            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  








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               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.  

           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.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee: 

          1)This bill continuously appropriates $10 million annually for  
            CRT glass market development   from the Electronic Waste  
            Recovery and Recycling Account until 2023.  

          2)The electronic waste recovery fund will have a fund balance  
            exceeding $50 million by the end of FY 13/14.

          3)One-time costs to CalRecycle to develop regulations and  
            administer the program of approximately $250,000.  Unknown  
            on-going costs depending on the number of applicants.








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          4)Minor, absorbable costs for DTSC to consult with CalRecyle on  
            CRT incentive payments.

           COMMENTS  :  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%) 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.  

          A CRT includes the glass tube and panel contained in older-model  
          televisions and computer monitors.  Because of its high  
          lead-content (about 25%), 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  








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

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


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