BILL ANALYSIS
AB 2901
Page 1
Date of Hearing: April 12, 2004
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Hannah-Beth Jackson, Chair
AB 2901 (Pavley) - As Introduced: February 20, 2004
SUBJECT : Hazardous waste: cellular telephones: recycling.
SUMMARY : This bill enacts the Cell Phone Recycling Act of 2004
(Act) and requires all retailers of cellular telephone (cell
phones) to submit a report to the California Integrated Waste
Management Board (CIWMB) regarding recycling of cell phones,
requires the Department of Toxic Substances Control (DTSC) to
adopt regulations to prohibit a cell phone from being sold in
California if the cell phone is prohibited from sale in the
European Union, and imposes penalties on retailers of cell
phones who do not comply with the Act.
EXISTING LAW :
1)Pursuant to the federal Resource Conservation and Recovery Act
of 1976 (RCRA) and subsequent amendments to RCRA, generally
requires the US Environmental Protection Agency (US EPA) to
establish standards and regulation for the management and
disposal of hazardous materials and wastes.
2)Pursuant to the California Integrated Waste Management Act of
the Public Resources Code (Section 40000, et seq.):
a) Requires local agencies to divert, through source
reduction, recycling, and composting, 50% of solid waste
disposed by their jurisdictions by the year 2000.
b) Requires local enforcement agencies for solid waste
(generally cities or counties) to enforce statewide minimum
enforcement standards for solid waste handling and
disposal.
c) Establishes a statewide household hazardous substance
information and collection program within the California
Integrated Waste Management Board (CIWMB), which consists
of public education and local government planning,
assistance, and funding though grants administered by the
board, for the purposes of ensuring the proper and safe
disposal of household hazardous substances.
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d) Establishes a series of special solid waste reduction
and market development programs administered by the CIWMB
for wastes ranging from metallic discards, paper, compost
materials, plastic trash bags, and rigid plastic beverage
containers.
3)Pursuant to Chapter 6.5 (Health and Safety Code Section 25000
et seq.) which generally governs the authority of the
Department of Toxic Substances Control (DTSC) to regulate
hazardous materials and wastes and ensures that the state is
delegated authority under RCRA:
a) Requires DTSC to adopt, and revise as appropriate,
standards and regulations for the management of hazardous
wastes for the protection of the public health, domestic
livestock, wildlife, or the environment.
b) Requires DTSC to maintain its hazardous waste disposal
program in a manner that, at minimum, meets the
requirements of the federal RCRA in order to maintain
federal delegation of its program.
4)Pursuant to Title 22 of the California Code of Regulations
adopted by DTSC pursuant to the statutory authority described
under (3) above establishes a "Universal Waste Rule" under
which high volume, relatively low-risk hazardous wastes (e.g.
batteries, florescent lamps, cameras, etc.) are exempted from
standard and more stringent hazardous waste management rules
but are subject to less comprehensive management and disposal
requirements commensurate with the risks they pose.
5)On or before January 1, 2007, and modeled on the Product
Stewardship Initiative adopted by the European Union, requires
DTSC to adopt regulations establishing dates and procedures
for the phase out of hazardous materials used in the
manufacture of hazardous electronic devices by the earliest
feasible date.
THIS BILL :
1)Requires the DTSC to adopt regulations that prohibit a cell
phone from being sold if the cell phone is prohibited from
being sold in the European Union, to the extent that Directive
2002/95/EC, adopted by the European Parliament and the Council
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of the European Union on January 27, 2003, prohibits that sale
due to the presence of heavy metals.
2)On and after July 1, 2005, requires every retailer of a cell
phone sold in California to have in place a system approved by
the CIWMB for the acceptance, collection, reuse, and recycling
or proper disposal of used cell phones.
3)Provides that the CIWMB may approve a system for recycling
cell phones, if the system includes, at a minimum:
a) The take-back from the consumer of a used cell phone
that the retailer sold or previously sold to the consumer,
at no cost to that consumer;
b) The take-back of a used cell phone from a consumer who
is purchasing a new cell phone from that retailer, at no
cost to that consumer.
c) The creation and maintenance of a toll-free telephone
number and Internet Web site where a consumer may obtain
information on no-cost opportunities to recover, reuse, and
recycle or properly dispose of a used cell phones.
d) The creation and maintenance of a public education
program to promote the recovery, reuse, and recycling or
proper disposal of used cell phones.
e) The retailer provides a mechanism for the return, reuse,
recycling, or proper disposal, at no cost to the consumer,
of used cell phones if a cell phone is delivered directly
to a consumer by a retailer.
4)Requires retailers of cell phones to submit a plan on or
before March 1, 2005 for the acceptance, collection, and
reuse, recycling, or proper disposal of used cell phones.
5)Requires the CIWMB to approve or disapprove a plan for a
retailer on or before June 1, 2005. If the CIWMB does not
approve or disapprove a plan, submitted on or before March 1,
2005, the plan is deemed approved by the CIWMB.
6)Prohibits the sale of cell phones in California by retailers
without an approved plan after July 1, 2005.
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7)On or before July 1, 2006, and annually thereafter as
determined by the CIWMB, each retailer of a cell phone shall:
a) Submit to the CIWMB a report that includes the number of
cell phones sold by the retailer in the state during the
previous year;
b) The number of cell phones accepted and or collected from
consumers in the state for recycling or proper disposal.
c) Make information available to consumers, that describes
where and how to return, recycle, and dispose of a used
cell phone and opportunities, locations for the collection
or return of the cell phone, through the use of a toll free
telephone number, Internet Web site, information labeled on
the cell phone, information included in the packaging, or
information accompanying the sale of a cell phone.
8)Provides a fine of up to two thousand five hundred dollars
($2500) (administratively imposed) and up to five thousand
dollars ($5000) (imposed by superior court) per offense for
each sale of a cell phone by a retailer not in compliance with
this Act.
9)Requires the CIWMB to annually establish, and update as
necessary, statewide recycling goals for used cell phones,
post on its Internet Web site information regarding the amount
of cell phones sold in the state in the previous year, the
amount of used cell phones recycled in the previous year and
develop and adopt recycling goals for used cell phones.
10)Prohibits a state agency from procuring cell phones from any
retailer unless the retailer demonstrates compliance with this
Act.
FISCAL EFFECT : Unknown.
COMMENTS :
1)Background
According to a recent report by INFORM, Inc. Calling All Cell
Phones: Collection, Reuse and Recycling Programs in the US cell
phone subscriptions in the United States have significantly
grown over the past 18 years, from 340,000 in 1985 to more than
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140 million by 2003. By 2005, it is estimated that cell phone
use will reach 175 million. However, only about 5% of those
phones are being collected, reused or recycled. With the
average life span of a cell phone being only about 18 months, it
is estimated that 130 million cell phones will become obsolete
and discarded each year in the US. In California, that means
that 16. 3 million cell phones will become obsolete and
discarded each year, and 62.5 million will be stockpiled in
California homes by 2005.
Beyond cell phones being stockpiled in our homes and offices,
they contain a myriad of hazardous chemicals that when opened
and exposed can lead to a multitude of problems. The circuit
boards in cell phones contain toxins such as arsenic, antimony,
beryllium, cadmium, copper, lead, mercury, nickel, and zinc.
The lithium-ion and nickel-metal hydride rechargeable batteries
contain heavy metals such as cobalt, zinc, and copper. Many of
these chemicals are Persistent Bioaccumulative Toxins (PBTs) and
have the potential to be released into the air and groundwater
when burned in incinerators or disposed of in landfills, thus
creating unnecessary threats to human health and the
environment.
According to the author's office, this bill will assist in
phasing-out toxic materials and promoting a system that provides
a convenient and cost-free mechanism for consumers of cell
phones to recycle and reuse their obsolete cell phones.
2)What's the Cell Phone Industry Doing Right Now ?
According to the Cellular Telecommunications and Internet
Association (CTIA), the trade association representing most
major manufacturers and retailers of cell phones, in November
2003, CTIA launched a voluntary program that promotes the
collection and recycling of obsolete cell phones. A number of
wireless carriers, manufacturers and organizations are already
participating in this initiative, including AT&T Wireless,
Cingular, Motorola, Nextel, Nokia, Panasonic, ReCellular, Sony
Ericcson, Sprint, Verizon Wireless, and the Wireless Foundation.
The new effort by CTIA and its member companies, called
"Wireless?The New Recyclable" includes a number of components
including public outreach and awareness, recycling of cell
phones and material recovery.
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The public outreach and awareness component urges member
companies to encouraging consumers to recycle their used cell
phones at retail sites, directing consumers to a central
Internet Web site that provides consumers with information about
where they can recycle cell phones and answers to common
questions about recycling of cell phones. It also requires that
all CTIA certified cell phones include information encouraging
customers to recycle their cell phones and directs them to the
program website.
The recycling of cell phones under the new program includes
guidelines for member companies to ensure that collected cell
phones are managed properly, refurbished and resold. The
materials recovery portion includes guidelines to encourage
referbishers to perform their activities in a manner that is
environmentally responsible and compliant with applicable
regulations, including any applicable hazardous and electronic
waste regulations in California.
In addition to the national program that has been launched a
number of the major cell phone manufacturers have donation
programs to which they donate their recycled or refurbished
phones. Examples of this type of work are:
Nextel collects used cell phones for free in their Nextel
retail stores or on their website and then sponsors the
American Red Cross Donate-a-Phone program. Proceeds from
donated Nextel phones support the American Red Cross' Armed
Forces Emergency Services program, which provides assistance
and comfort to the men and women of the U.S. Armed Forces and
their families around the world.
Verizon Wireless gives the proceeds from sales of collected,
refurbished phones to donate cell phones and airtime to
domestic violence shelters and prevention programs across the
country. In 2003, they collected 900,000 cell phones for
recycling.
ReCellular, the largest reseller, refurbished and recycler of
used cell phones has developed "Donate a Phone" which to date
has collected over 2 million used cell phones for charity.
The program is no cost to consumers.
1)Is the Bill Premature ?
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While the author's office contends that the volunteer programs
the industry has initiated are laudable, they are still only
reaching a small fraction (5%) of the used and stockpiled cell
phones.
The Committee may wish to consider whether a new program, would
potentially hinder the relatively new efforts by the wireless
industry to collect, recycle, refurbish used cell phones and
educate the public about the importance of correctly disposing
of their cell phones. To that end, the Committee may wish to
consider the following amendments:
On page 3, line 11, after "Regulations.", insert "However, such
wireless telephone devices that are integrated into the
electrical architecture of motor vehicles shall not be deemed to
be "cellular telephones" for purposes of this section."
On page 6, lines 20 and 21, delete "approved by the board
pursuant to this article"
On page 6, line 23, delete "The board may approve"
On page 6, line 25, delete "if the system includes" and insert
"shall include"
On page 6, line 31, delete "as", and insert "at"
On page 7, delete lines 5 through 19, inclusive.
On page 7, line 31, after "disposal" insert "during the previous
year."
On page 7, line 39, after "(b)", insert "Retailers may comply
with the reporting requirements in paragraph (1), by submitting
an aggregate report from multiple retailers."
On page 8, delete lines 4 through 39, inclusive and on page 9,
delete lines 1 through 12, inclusive.
On page 9, line 13, after "42496.4", insert "On and after July
1, 2006,"
On page 9, line 26, insert:
(d) Annually to the legislature an estimate, for the
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previous calendar year, of the following:
(1) The number of cell phones returned for reuse or
recycling by consumers in this state.
(2) The number of cell phones sold to consumers in
this state.
(3) A recycling ratio, the numerator of which is the
amount in paragraph (1) and the denominator of which
is the amount in paragraph (2).
REGISTERED SUPPORT / OPPOSITION :
Support
Californians Against Waste (sponsor)
California League of Conservation Voters
DigiCell
Environment California
Natural Resources Defense Council
Norcal Waste Systems, Inc.
Sierra Club California
Opposition
American Electronics Association
California Manufacturers and Technology Association
California Retailers Association
Cellular Telecommunications & Internet Association
Electronic Industries Alliance
Qualcomm
Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. / (916)
319-2092