BILL ANALYSIS                                                                                                                                                                                                    �



                                                               AB 1022
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    AB 1022
           AUTHOR:     Eggman
           AMENDED:    April 23, 2013
           FISCAL:     Yes               HEARING DATE:     June 26, 2013
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    ELECTRONIC WASTE:  CRT GLASS MARKET DEVELOPMENT  
                          PAYMENTS

            SUMMARY  :    
           
            Existing law  , pursuant to the Hazardous Electronic Waste  
           Recycling Act of 2003 (Act) (Public Resources Code �42460 et  
           seq. and Health and Safety Code �25214.9 et seq.): 

              a)    Requires a consumer to pay a Covered Electronic Waste  
                 (CEW) recycling fee upon the purchase of a new or  
                 refurbished covered electronic device (CED) and  
                 specifies the amount of the CEW recycling fee ranging  
                 from $6 to $10 for each CED depending on the screen  
                 size.  (PRC �42464).

              b)    Requires all fees collected pursuant to the Act to be  
                 deposited in the Electronic Waste Recovery and Recycling  
                 Account, and authorizes those moneys to be appropriated  
                 for the following purposes:

                 i)         Pay refunds of the CEW recycling fee.

                 ii)        Make electronic waste recovery payments to an  
                      authorized collector of CEW.

                 iii)       Make electronic waste recycling payments to  
                      CEW recyclers.

                 iv)        Make specified payments to manufacturers who  
                      take back CEW from consumers for the purpose of  
                      recycling the item.  (PRC �42476).










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              c)    Defines "covered electronic device" as a video  
                 display device containing a screen larger than four  
                 inches measured diagonally.  (PRC �42463).  CEDs that  
                 are discarded are considered covered electronic waste  
                 (CEW). 

            This bill  :  

           1) Requires CalRecycle, in consultation with the Department of  
              Toxic Substances Control (DTSC), to make cathode ray tube  
              (CRT) glass market development payments to a CRT glass  
              processor, a CRT glass manufacturer, or an electronic waste  
              recycler who processes for use CRT glass to manufacture a  
              product in California.

           2) Requires a CRT glass manufacturer or processor, or  
              electronic waste recycler applying for a CRT glass market  
              development payment to submit a payment claim to  
              CalRecycle, as specified.

           3) Authorizes CalRecycle to make a CRT glass market  
              development payment to a CRT glass manufacturer or process,  
              or electronic waste recycler if CalRecycle determines that  
              the payment recipient is in compliance with all applicable  
              laws and that the recipient will process or use the CRT  
              glass to manufacture a product in California.

           4) Defines "CRT glass" as glass released or derived from the  
              treatment or breakage of a cathode ray tube that is from or  
              part of a covered electronic device.

           5) Defines "CRT glass manufacturer" as a person who produces  
              or manufactures a product containing recycled CRT glass in  
              the state.

           6) Defines "CRT glass processor" as a person who processes CRT  
              glass in a manner that separates the hazardous components  
              from the glass in a manner that allows the nonhazardous  
              glass to be recycled.

           7) Sunsets the requirement to make such payments on January 1,  
              2023.










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            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "California's  
              8-year old electronic waste recycling program was  
              established for the purpose of keeping leaded glass CRTs  
              out of the waste stream.  The program is collecting and  
              diverting roughly 70 - 75% of covered e-waste from  
              disposal.  CRTs have been the display technology for  
              computer monitors and televisions for decades.   
              Traditionally, CRT glass from TVs and monitors has been  
              sent to glass lead smelters or glass-to-glass recycling to  
              be used for the production of more CRTs.  However, since  
              demand for CRT devices has dropped, so has the end use  
              market for CRT glass and many e-waste recyclers are now  
              stockpiling the CRT glass at unsafe and unsustainable  
              levels.  While DTSC has adopted emergency regulations in  
              response to this growing problem, the approach is  
              inadequate to address the problem.  AB 1022 is structured  
              to reduce the stockpile of CRT glass, while also  
              stimulating economic activity and job growth within  
              California.  According to DTSC, in 2010, more than 17  
              million pounds of CRT glass were being accumulated by  
              collection facilities.  Fortunately, technology exists for  
              processing CRT glass to remove lead and recycle the  
              lead-free glass.  To date, manufacturers and recyclers  
              employing the technology have not located such equipment  
              within California."

            2) Background on the Electronic Waste Recycling Act  .   
              California adopted the Electronic Waste Recycling Act of  
              2003, which established the nation's first electronic waste  
              recovery and recycling program for computer monitors,  
              laptop computers, televisions, and similar video display  
              devices.  The act established a funding mechanism to  
              improve and provide for the proper end-of-life management  
              of certain hazardous electronic products.  The program is  
              funded through a fee paid by consumers of covered  
              electronic devices at the time of retail purchase.

           CEW collectors are those individuals who collect, consolidate,  
              and transport CEW generated in California.  Collectors  
              deliver the waste to CEW recyclers who receive, process,  
              and recycle CEW.  Both CEW collectors and recyclers must  









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              submit payment claims to CalRecycle for compensation.   
              CalRecycle reviews the claims for compliance with the act  
              and, if appropriate, makes payments to approved collectors  
              and recyclers that are intended to offset the net cost of  
              appropriate waste recovery, processing, and recycling  
              activities.

            3) Demonstrate compliance to whom  ? AB 1022 requires a CRT  
              glass processor, manufacturer, or electronic waste recycler  
              to demonstrate to CalRecycle that it is in compliance with  
              all applicable laws.  CalRecycle has jurisdiction over the  
              financial component of the proposed CRT market development  
              payment program, but DTSC is the regulatory agency that has  
              jurisdiction over all of the hazardous waste issues.  An  
              amendment is needed to require that the CRT glass  
              processor, manufacturer, or electronic waste recycler must  
              demonstrate to DTSC that it is in compliance with  
              applicable laws.

            4) Sunset  .  AB 1022 sunsets the CRT market development payment  
              program on January 1, 2023.  As noted by the author, there  
              are no prospective recipients of these payments so far.  It  
              would be prudent to shorten the sunset so that the  
              Legislature may determine at an earlier date whether this  
              program should be extended but also giving the program a  
              fair amount of time and opportunity to succeed.  An  
              amendment is needed to change the sunset date from January  
              1, 2023 to January 1, 2020.


            SOURCE  :        Californians Against Waste  

           SUPPORT  :       Glass Packaging Institute  

           OPPOSITION  :    None on file