BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 1022 (Eggman) - Electronic waste: CRT glass market
development payments.
Amended: August 12, 2013 Policy Vote: EQ 8-1
Urgency: No Mandate: No
Hearing Date: August 30, 2013 Consultant:
Marie Liu
SUSPENSE FILE.
Bill Summary: AB 1022 would authorize CalRecycle to make up to
$10 million in market development payments for the processing of
cathode ray tube (CRT) glass or manufacturing of a new product
with recycled CRT glass until January 1, 2020.
Fiscal Impact:
Up to $10 million annually until January 1, 2020 from the
Electronic Waste Recovery and Recycling Account (account)
within the Integrated Waste Management Fund (special) for
CRT market development payments.
Ongoing costs of up to $250,000 from the account for the
administration of CRT market development payments and
necessary regulations.
Background: The Electronic Waste Recycling Act of 2003
established an 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 (aka covered
electronic waste (CEW)). The Department of Resources Recycling
and Recovery (CalRecycle) administers the program. The program
is funded through a consumer fee paid on covered electronic
devices at the time of retail purchase based on screen size. The
fees are deposited in the account and may be used to pay refunds
of the CEW recycling fee, make electronic waste recovery
collection payments, make electronic waste recycling payments,
and make specified payments who take back CEW from consumers for
the purpose of recycling.
Collection payments are made to an authorized collector for
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operating a free and convenient system for collecting,
consolidating, and transporting covered electronic wastes
generated in California (PRC �42477). Recycling payments are
made to a recycler who receives, processes, and recycled each
major category, as determined by CalRecycle, CEW received from a
collector (PRC �42478).
Proposed Law: This bill would allow up to $10 million of the
account to be used to make market development payments for CRT
glass. CalRecycle, in consultation with the Department of Toxic
Substances Control would be required to make a market
development payment to a CRT glass processor, a CRT glass
manufacture, or an electronic waste recycler who processes the
glass and utilizes it in a new product.
The bill establishes requirements for payments including that
the CRT glass is eligible for an electronic waste recovery
payment, the glass is processed within the state, and all
hazardous materials must be removed from the glass.
Staff Comments: As a new program, this bill would result in
one-time costs for regulation development and on-going costs to
process CRT glass market development payments for a total of
approximately $250,000 annually. However, the ongoing
administrative costs are uncertain as they are dependent on
participation in the program. The author notes that there are no
prospective recipients of the CRT glass market development.
The CRT glass market development payment may only be made on CRT
glass that is eligible for an electronic waste recovery payment.
So multiple payments from the account may be made on a single
piece of CRT glass: a collection payment, a recycling payment, a
CRT processing payment, and a CRT manufacturing payment. This
bill requires that the processing payment be for processing that
is beyond that the requirements of Section 42476 by removing any
hazardous materials. This requirement
Intends to distinguish the CRT processing payment from the
recycling payment. However, Section 42476 does not actually
specify the requirements of the recycling payment but rather
allows CalRecycle to set those requirements. Staff recommends
that the author consider clarifying the distinction between the
CRT processing payment and the recycling payment.
The balance of the account is heavily influenced by CRT
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recycling and collection rates, payment rates, as well as the
point-of-sale fees collected. At current rates, the
point-of-sale fees are sufficient to provide enough revenue for
all allowable uses of the account. Additionally the account has
a substantial, though decreasing, reserve. Redirecting up to $10
million of the account to CRT glass manufacturing may be done
without consequences initially, but as conditions change, the
redirection may cause pressures to either raise the
point-of-sale fee or to lower payment rates for collection and
recycling. CalRecycle has the regulatory authority to set the
point-of-sale fee as well as payment rates.
Recommended Amendments: Staff recommends clarification
amendments regarding the requirements for the processing and the
manufacturing payment, including clarifying whether a
manufacturing payment can only be made on CRT glass that was
processed within the state.