BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1419| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1419 Author: Eggman (D), et al. Amended: 8/19/16 in Senate Vote: 21 SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 6/29/16 AYES: Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/1/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen ASSEMBLY FLOOR: 74-0, 5/22/15 (Consent) - See last page for vote SUBJECT: Hazardous waste: cathode ray tube glass SOURCE: Californians Against Waste DIGEST: This bill provides that certain cathode ray tube (CRT) panel glass is not subject to Department of Toxic Substances Control (DTSC) regulation as hazardous waste if it meets certain requirements. This bill also permits the use of that CRT panel glass for specified end uses, and allows DTSC to designate additional end uses or to prohibit a previously designated end use if it poses potential environmental or public health harm. Senate Floor Amendments of 8/19/16 remove automotive glass, reflective glass beads and foam glass insulation as specified allowed uses of recycled CRT glass that exceed state thresholds for barium and add Senator Leyva as a coauthor. ANALYSIS: AB 1419 Page 2 Existing law: 1)Prohibits the disposal of hazardous waste in a solid waste landfill and specifies requirements for the proper handling, transportation, treatment and disposal of hazardous waste, except as exempted or otherwise classified by regulation. 2)Requires DTSC to regulate and enforce federal and state hazardous waste laws. 3)Requires the Department of Resources, Recovery and Recycling (CalRecycle) to regulate and enforce California laws relating to solid waste including disposal, recycling and composting. 4)Establishes the Electronic Waste Recycling Act of 2003 (EWRA) 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). CEDs that are discarded are considered covered electronic waste (CEW). As defined by EWRA, a CED is a video display device containing a screen greater than four inches, measured diagonally including: a) CRT containing devices (CRT devices). b) CRTs. c) Computer monitors containing cathode ray tubes. d) Laptop computers with liquid crystal display (LCD). e) LCD containing desktop monitors. f) Televisions containing cathode ray tubes. g) Televisions containing LCD screens. h) Plasma televisions. i) Portable DVD players with LCD screens. 5)Requires a consumer to pay a CEW recycling fee upon the AB 1419 Page 3 purchase of a new or refurbished CED at the time of the retail sale. The CEW recycling fee ranges from $3 to $5, depending on the screen size, and is used primarily to pay CEW collectors and recyclers. 6)Provides for payments to CEW collectors and recyclers for costs associated with collecting and recycling CEW that has been generated in the state. 7)Requires DTSC and CalRecycle to jointly establish and implement an electronics waste (e-waste) recycling program pursuant to EWRA. This bill: 1)Provides that used broken CRT panel glass and processed CRT panel glass that exceeds the total threshold limit concentration (TTLC) only for barium is not a waste and is not subject to regulation by DTSC as a hazardous waste if that panel glass meets certain requirements. 2)Permits the use of that CRT panel glass that exceeds the TTLC only for barium for specified end uses. 3)Authorizes DTSC to designate additional end uses or to prohibit a previously designated end use if it poses potential environmental or public health harm. Background 1)E-waste. The term "e-waste" is loosely applied to consumer and business electronic equipment that is near or at the end of its useful life. There is no clear definition for e-waste; AB 1419 Page 4 for instance whether or not items like microwave ovens and other similar "appliances" should be grouped into the category has not been established. Certain components of some electronic products contain materials that render them hazardous, depending on their condition and density. For instance, California law currently views nonfunctioning CRTs from televisions and monitors as hazardous. 2)EWRA. In 2001, DTSC determined that CRT screens are hazardous, and as such, must be managed as hazardous waste when disposed. In response to this determination, the Legislature enacted SB 20 (Sher, Chapter 526, Statutes of 2003) and amended by SB 50 (Sher, Chapter 863, Statutes of 2004), establishing EWRA 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. EWRA imposes a fee on every consumer at the point of sale. The Board of Equalization deposits the fee revenue into the Electronic Waste and Recovery and Recycling Account, which may be spent solely for activities that relate to reuse, recycling, and proper disposal. Today, over a dozen years later, new CRT devices are no longer being consumed in any appreciable amount in the developed world. In fact, it is unclear where and in what quantity new CRTs are being fabricated for assembly into video devices. Processed CRT glass from the West is being shipped to India at a cost ranging from $100 and $200 per ton. Reportedly only three large metal smelters in North America will accept leaded CRT glass, though their capacity and demand for CRT glass is limited. Long-promised new lead extraction technologies for high-lead content funnel glass are still being developed, with questions remaining about throughput and longevity. A viable alternative large-scale application for low-leaded residual panel glass (which contains barium oxide for optical properties and radiation shielding) that conforms to California's hazardous waste management rules has not been identified. AB 1419 Page 5 For the past several years, California's CEW recycling program has generated approximately 100 million pounds of residual CRT glass annually, though volumes appear to be beginning to decline. A key component of the CEW recycling program has been a requirement that the derived residual CRTs and/or CRT glass be "shipped" to a destination authorized to further treat that material, under the assumption (and universal waste management requirement) that the material would eventually reach an appropriate recycling application. With the use of intermediate facilities and foreign destinations, it is becoming increasingly difficult to ensure when, where, and whether residual CRT glass has achieved an appropriate disposition. Universal waste management rules applicable to residual CRT glass handling and treatment have generally recognized new CRT manufacturing and lead smelting as the only appropriate ultimate recycling dispositions for CRT glass. However, neither of these end-uses currently occurs within the state of California. Early program participants generally shipped glass to North American smelters or to glass processors for beneficiation prior to its subsequent marketing to overseas CRT manufacturers. As more volume of CEW was recovered and processed, a larger proportion of derived CRT glass was ostensibly sent toward the so-called "glass-to-glass" market (e.g., CRT manufacturing), either directly or through processors. This practice was influenced by accessibility and price, even as the global production and sale of CRT devices rapidly declined. By mid-2009, approximately 75% of residual CRTs and/or CRT glass was being shipped to Mexican processors. However, in the fourth quarter of 2009, access to Mexican CRT glass processors was interrupted for nearly a year. Because CEW recyclers are required to ship CRT glass to a destination "authorized to receive and further treat" the glass prior to filing CEW AB 1419 Page 6 recycling claims, this interruption caused the volume of claimed CEW to decrease dramatically while recyclers searched for alternative outlets for CRT glass. A couple of recyclers pursued establishing their own in-state CRT processing capabilities, while other enterprises started or offered capacities out-of-state. The requirement to "ship" CRT glass has been interpreted by CalRecycle as meaning that the glass be moved off-site from the facility where the CEW was cancelled and the treatment residual generated. This interpretation has been supportive of universal waste accumulation time limits by discouraging onsite storage. As ready access to ultimate disposition options became more uncertain, and as the price charged by out-of-state processors increased, more recyclers pursued interest in establishing their own in-state, off-site processing capabilities (or at least authorizations) to fulfill treatment residual shipping criteria. While this would allow CEW recycling payment claims to be submitted with regularity, it did not create new end markets for CRT glass. Current markets for residual CRTs and CRT glass are limited. Access to traditional lead smelting is reportedly difficult, with only one facility in the U.S. (Doe Run, Missouri). 3)Future CRT Management. CRT glass can be loosely categorized into leaded glass and non-leaded glass. Sometimes this is referred to as "funnel glass" and "panel glass" respectively, but such classification can be misleading since the panel glass of some CRTs also contains lead. And even so-called non-leaded glass contains other toxic metals, such as barium, at levels that create environmental and regulatory concern, particularly under current California hazardous waste law. The ability to effectively identify, separate, characterize, process, and test residual CRT glass will be critical to future management options. New lead extraction technologies reportedly are emerging that AB 1419 Page 7 may be more efficient than traditional smelting. Facilities in AZ, OH, TX, NY, and VA utilizing these new technologies are in differing stages of development but not in production-scale operation. Alternative applications also have been reported for non-leaded CRT glass, such as in building materials, tile, insulation, aggregate, proppant, industrial abrasives, reflective coatings, and fill. However CalRecycle is not aware of any alternative production-scale applications in the United States that have been demonstrated to and evaluated by DTSC and found to constitute an ultimate disposition that would warrant inclusion in the list of uses allowed under universal waste rules. Nor is CalRecycle aware of any proposed use for non-leaded CRT glass that has secured formal concurrence from DTSC as an excluded recyclable material. 4)Barium Oxide. Barium is a silvery white metal that is used in CRTs to provide radiation protection in the neck and funnel. Barium oxide is an irritant. If it contacts the skin or the eyes or is inhaled it causes pain and redness. However, it is more dangerous when ingested. It can cause nausea and diarrhea, muscle paralysis, cardiac arrhythmia, and can cause death. If ingested, medical attention should be sought immediately. Barium oxide should not be released environmentally; it is harmful to aquatic organisms. In California barium oxide is a hazardous waste because of its toxic characteristics. Comments 1) Purpose of Bill. According to the author, new LCD and LED technology for televisions and monitor screens has taken over and demand for old-fashioned CRT devices has dropped dramatically. The end-use market for CRT glass generated AB 1419 Page 8 from recycling scrap CRT's has dried up and recyclers across the nation are struggling with what to do with the glass. Many have even resorted to stockpiling this material in hopes of finding new outlets in the future. The author states that in response to this impending crisis, DTSC adopted Emergency Regulations that allowed this material to be recycled or disposed of under certain conditions in 2012. However, this regulatory scheme has proven difficult for recyclers to implement, and hasn't created sufficient viable pathways for this material. The process of recycling scrap CRT monitors and televisions produces three different types of glass: funnel glass, which contains high levels of lead, and low and non-leaded panel glass which contains very low concentrations of lead, or no lead at all. The current regulations limit the options for recycling leaded funnel glass to smelting, glass to glass recycling for the production of new CRTs (currently only done by one company in India), or landfill disposal. Although non-leaded panel glass should be available for many other uses, the regulatory pathway for using these end markets has not been clearly developed. The authors argues, complicating the issue even further is that the world's last CRT manufacturer, which recycled as much as 57% of the funnel and panel glass generated in the country, announced that it would discontinue CRT production in the coming months, eliminating one of the last outlets for this material. 2) CalRecycle. CalRecycle published a paper in May, 2015, entitled, "Electronic Waste Recycling Stakeholder Workshop" stating "As the CEW recycling system moves forward, consideration must be given to the availability of viable CRT glass markets and alternatives, the anticipated lifespan of those markets and the available supply of feedstock, and the environmental impacts associated with moving the glass to AB 1419 Page 9 those markets versus other management options. Furthermore, while markets in far-off geographic areas may exist today, the economic ripples resulting from use of those markets should be a factor in any policy assessment. Does the fact that California recyclers pay to send CRT glass to certain downstream recipients artificially subsidize the continued consumption of hazardous inputs, prolonging the use of that material in products that will ultimately be disposed elsewhere, while potentially and simultaneously suppressing the development of local recycling infrastructure in certain destination countries? "The fact that the ultimate disposition of essentially all residual CRT glass currently occurs beyond California's borders, and in a timeframe that makes the effective monitoring of that disposition problematic, suggests policies that ensure more certain fates closer to home should be considered." Prior Legislation SB 20 (Sher, Chapter 526, Statutes of 2003) enacts the Electronic Waste Recycling Act of 2003 to provide for the convenient recycling of CEDs in California: requiring every retailer or manufacturer that sells covered devices collect a fee on each which was to be used for the regulation and proper handling and recycling or disposal of covered devices. SB 50 (Sher, Chapter 863, Statutes of 2004) makes clarifying changes to SB 20. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes AB 1419 Page 10 According to the Senate Appropriations Committee, this bill will cost approximately $85,000 (Electronic Waste Recovery and Recycling Account) for two years for DTSC to develop regulations and has minor, if any, costs to CalRecycle. SUPPORT: (Verified 8/3/16) Californians Against Waste (source) All eWaste, Inc. Association of California Recycling Industries Cali Resources, Inc. California Association of Local Conservation Corps California Electronic Asset Recovery California League of Conservation Voters Ecology Action ECS Refining Electronic Recyclers International, Inc. Environmental Working Group Fireclay Tile Institute of Scrap Recycling Industries, West Coast Chapter Kleen Blast Abrasives Marin County Hazardous and Solid Waste Management Joint Powers Authority Napa Recycling and Waste Services Northern California Recycling Association Rural Counties Representatives of California Sonoma County AB 939 Local Task Force Sonoma County Waste Management Agency StopWaste Technologies Displays Americas, LLC. Tycoon Materials, Inc. DBA Happy Recyclers OPPOSITION: (Verified8/3/16) None received ASSEMBLY FLOOR: 74-0, 5/22/15 AB 1419 Page 11 AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Alejo, Jones, O'Donnell, Olsen, Waldron, Weber Prepared by:Rachel Machi Wagoner / E.Q. / (916) 651-4108 8/22/16 22:58:08 **** END ****