BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 147
                                                                  Page  1

          Date of Hearing:  April 28, 2009

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                 AB 147 (Saldana) - As Introduced:  January 22, 2009

                              As Proposed to be Amended
           
          SUBJECT  :  HAZARDOUS WASTE: ELECTRONIC WASTE

           KEY ISSUE  :  IN ORDER TO EFFECTIVELY ENFORCE EXISTING HAZARDOUS  
          MATERIALS PROHIBITIONS AND INFORM THE GREEN CHEMISTRY  
          INITIATIVE, SHOULD THE DEPARTMENT OF TOXIC SUBSTANCES CONTROL  
          REQUIRE MANUFACTURERS OF ELECTRONIC DEVICES TO SUBMIT SPECIFIED  
          INFORMATION ABOUT THE HAZARDOUS CHARACTERISTICS OF THEIR  
          DEVICES?

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS
                                          
          This bill, sponsored by Californians Against Waste, would  
          require manufacturers and producers of electronic devices to  
          submit information about the hazardous characteristics of the  
          devices they sell in California to the Department of Toxic  
          Substances Control (DTSC).  Manufacturers are currently  
          providing this information upon request in the European Union  
          per the EU's Restriction of Hazardous Substances (RoHS)  
          Directive.  According to the author, without the authority  
          provided by this bill, DTSC must resort to expensive  
          product-by-product testing to determine the hazardous materials  
          content, if any, of consumer electronic items sold in the state.  
          In many respects, this bill is in harmony with the objectives of  
          last year's Green Chemistry Initiative and will help to inform  
          future policy development of those issues.  Opponents contend it  
          is unwise to base California law on the RoHS Directive, which  
          they say is still unsettled and undergoing significant review.  

           SUMMARY :  Requires manufacturers and producers of electronic  
          devices to submit information about hazardous characteristics of  
          the device to the Department of Toxic Substances Control (DTSC).  
           Specifically,  this bill  :   

          1)Regarding "covered electronic devices" (a video display device  
            with a screen larger than four inches in size):








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             a)   Requires a manufacturer to prepare and, at the request  
               of DTSC, to submit within 28 days, technical documentation  
               or other information demonstrating that the device is not  
               prohibited from sale.  Requires the manufacturer to prepare  
               and submit, if requested, available information about the  
               hazardous characteristics of the device.

             b)   Requires DTSC to treat as confidential any information  
               that is identified by the manufacturer as a trade secret.   
               Requires information that is not a trade secret to be made  
               available to the public pursuant to the California Public  
               Records Act.

          2)Regarding electronic equipment:

             a)   Defines "electronic equipment" as a consumer device that  
               works by use of or relates to electric currents or  
               electromagnetic fields but is not a non-portable,  
               fixed-installation device; a covered electronic device or a  
               light.  

             b)   Requires a producer to prepare, and at the request of  
               DTSC to submit within 28 days, technical documentation or  
               other information demonstrating that the device is allowed  
               in the European Union (EU) under the RoHS Directive  
               (European Directive on the "Restriction on the Use of  
               Certain Hazardous Substances in Electrical and Electronic  
               Equipment").  Requires the producer to prepare and submit,  
               if requested, available information about the hazardous  
               substance content and hazardous characteristics of the  
               device.

             c)   Requires a producer of electronic equipment that is not  
               sold in the EU to submit to DTSC available information  
               relating to the hazardous substance content and hazardous  
               characteristics of the equipment.

             d)   Requires DTSC to treat as confidential any information  
               that is identified by the manufacturer as a trade secret.   
               Requires information that is not a trade secret be made  
               available to the public, pursuant to the California Public  
               Records Act.

          3)Prohibits DTSC from imposing any requirements or conditions  








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            that are in addition to, or more stringent than, the  
            requirements of the bill.

           EXISTING LAW  :

          1)Pursuant to the Electronic Waste Recycling Act, defines  
            "covered electronic device" as a video display device  
            containing a screen greater than four inches, measured  
            diagonally, except for video display devices that are in a  
            motor vehicle or contained within specified large appliances  
            or industrial, commercial or medical equipment.  (Public  
            Resources Code Section 42463(f).)

          2)Pursuant to the Electronic Waste Law:

             a)   Requires DTSC to adopt regulations that prohibit an  
               electronic device, as defined in Section 42463 of the  
               Public Resources Code, from being sold if the electronic  
               device is prohibited from being sold in the EU under the  
               RoSH Directive due to the presence of certain heavy metals  
               in the device.

             b)   Prohibits DTSC, in adopting regulations, from requiring  
               the manufacture or sale of an electronic device that is  
               different than, or otherwise not prohibited by, the EU  
               under the RoSH Directive.

             c)   Prohibits DTSC from adopting any regulations that impose  
               any requirements or conditions that are in addition to, or  
               more stringent than, the requirements and conditions  
               expressly authorized by the Electronic Waste Law.  (Health  
               and Safety Code Section 25214.10 et seq.)

          3)Pursuant to the Green Chemistry Initiative:

             a)   Requires the DTSC, by January 1, 2011, to adopt  
               regulations to establish a process to identify and  
               prioritize chemicals or chemical ingredients in products  
               that may be considered a "chemical of concern," in  
               accordance with a review process, as specified.

             b)   Requires the DTSC to adopt regulations to establish a  
               process for evaluating chemicals of concern in products,  
               and their potential alternatives in order to determine how  
               best to limit exposure or to reduce the level of hazard  








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               posed by a chemical of concern, as specified.  (Health and  
               Safety Code Section 25251 et seq.)

          4)Defines "trade secret" as any formula, plan, pattern, process,  
            tool, mechanism, compound, procedure, production data, or  
            compilation of information which is not patented, which is  
            known only to certain individuals within a commercial concern  
            who are using it to fabricate, produce, or compound an article  
            of trade or a service having commercial value, and which gives  
            its user an opportunity to obtain a business advantage over  
            competitors who do not know or use it.  (Health and Safety  
            Code Section 25173.)

           COMMENTS  :  This bill seeks to require manufacturers and  
          producers of electronic devices to submit information detailing  
          the content and amount of hazardous materials contained in their  
          devices to the Department of Toxic Substances Control (DTSC).  

          The author states: 

               According to the U.S. Environmental Protection Agency,  
               roughly 70% of the toxic heavy metals found in  
               landfills come from electronic waste.  Electronic  
               waste can contain . . . heavy metals that are highly  
               toxic and pose a serious threat to public health and  
               the environment.

               [L]ast year the legislature enacted the Green  
               Chemistry Initiative, which requires the Department of  
               Toxic Substances Control (DTSC) to regulate chemicals  
               of concern in consumer products so they can be  
               replaced with more benign alternatives.  

               The purpose of this bill is to give DTSC a more  
               cost-effective tool to enforce California's existing  
               hazardous materials ban and inform the Green Chemistry  
               Initiative.  [In order to do this, DTSC] needs  
               authority to request documentation from electronics  
               manufacturers detailing the amount of hazardous  
               materials contained in their products.  Without this  
               authority, DTSC is only able to resort to expensive  
               product by product testing to determine the hazardous  
               materials content, if any, of a consumer item sold in  
               the state.









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           The Bill's Reporting Requirements Are Consistent with the  
          Objectives of the Green Chemistry Initiative.   Over the past  
          several years, the Legislature has considered numerous bills  
          that would have expanded California's RoSH law to prohibit the  
          sale of more products and align the state's e-waste standards  
          with those in Europe.  This bill takes a more modest approach,  
          instead requiring manufacturers and producers to report data on  
          the hazardous characteristics of electronic devices sold in the  
          state.  The reporting requirements in this bill follow the  
          structure of the reporting requirements for lights under the  
          California Lighting Efficiency and Toxics Reduction Act (Health  
          and Safety Code 25210.9 and Public Resources Code 25402.5.4 et  
          seq.).  

          In 2008, AB 1879 (Feuer) and SB 509 (Simitian) together  
          established the Green Chemistry Initiative, a broad approach to  
          the problem of identifying the risks of hazardous materials  
          that, among other things, requires the DTSC to adopt regulations  
          to: (1) establish a process to identify and prioritize chemicals  
          or chemical ingredients in products that may be considered a  
          "chemical of concern;" and (2) establish a process for  
          evaluating chemicals of concern in products, and their potential  
          alternatives in order to determine how best to limit their  
          exposure or reduce the level of hazard the chemicals pose.  

          This bill seeks reporting requirements that are crafted to  
          assist the state in (1) enforcing current regulations on covered  
          electronic devices; (2) determining more precisely the universe  
          of hazardous materials contained in electronic devices as a  
          whole in the state; and (3) ascertaining the best approach to  
          reducing and eliminating toxics in those products in the future.  
           As such, these requirements are consistent with the objectives  
          of the Green Chemistry Initiative to identify the presence of  
          hazardous materials in common products and devices so that  
          health and environmental risks can be specifically targeted.
           
          Trade Secret Provisions.   This bill requires DTSC to treat as  
          confidential any information provided pursuant to its reporting  
          requirements that is a trade secret and that is identified by  
          the manufacturer as a trade secret.  The bill also requires  
          information that is not a trade secret be made available to the  
          public, pursuant to the California Public Records Act.  

          Under the Green Chemistry Initiative, an individual may request  
          the DTSC to release information that has been claimed to be a  








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          trade secret.  In that situation, DTSC must immediately notify  
          the person who submitted the information and then, based on the  
          request, determine whether the information claimed to be a trade  
          secret is to be released to the public.  In contrast, this bill  
          does not provide any options for the release of information  
          identified by the manufacturer as a trade secret.  Although  
          there are several different mechanisms in existing law for  
          handling a request for information claimed to be a trade secret,  
          it is not clear why this bill differs from the Green Chemistry  
          Initiative in this respect.

           Author's Proposed Technical Amendment  :  The author proposes a  
          technical amendment to correct an improper cross reference in  
          the bill as it left the Environmental, Safety, and Toxic  
          Materials Committee:

               On page 5, line 27, replace "pursuant to this  
               section" with the phrase "pursuant to Section  
               25214.10". 

          In addition, the author wishes to add Asm. Blumenfield and Sen.  
          Wiggins as co-authors.

           ARGUMENTS IN SUPPORT  :  In support of the bill, Californians  
          Against Waste writes, "AB 147 will aid the effort to control and  
          reduce hazardous materials in electronics [and] is also  
          consistent with the goals of the Green Chemistry Initiative,  
          which requires DTSC to regulate chemicals of concern in consumer  
          products so they can be replaced with more benign alternatives."

           ARGUMENTS IN OPPOSITION  :  Opponents, including two associations  
          of computer and electronics manufacturers, write:

               We recognize that California legislators may desire to  
               establish enforcement mechanisms for covered devices  
               in the state as well as provide the DTSC with  
               "documentation" of EU RoHS compliance; however, our  
               members are concerned with efforts to tie California  
               to an unsettled EU directive that is still struggling  
               with issues of implementation, interpretation and  
               enforcement several years after going into effect.

           REGISTERED SUPPORT / OPPOSITION :   

           Support 








                                                                 AB 147
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          Californians Against Waste (sponsor)
          Environmental Working Group

           Opposition 
           
          Information Technology Industry Council
          TechAmerica
          
          Analysis Prepared by  :   Anthony Lew / JUD. / (916) 319-2334