BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 147
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 147
           AUTHOR:     Saldana
           AMENDED:    June 1, 2009      
           FISCAL:     Yes               HEARING DATE:     July 6, 2009
           URGENCY:    No                CONSULTANT:       Caroll  
           Mortensen
            
           SUBJECT  :    ELECTRONIC WASTE REPORTING

            SUMMARY  :    
           
            Existing law:

           Pursuant to the Electronic Waste Recycling Act (Public  
           Resources Code  42460 et seq.)  :

           1)Defines "covered electronic device" as a video display  
             device containing a screen greater than four inches,  
             measured diagonally, as determined by the Department of  
             Toxic Substances Control (DTSC), 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 (PRC)  
             42463(f).).

           2)Prohibits a person from selling a new or refurbished covered  
             electronic device if the manufacturer is not in compliance  
             with the Act (PRC42465).

           3)Requires a manufacturer of a covered electronic device to  
             submit a report to the Integrated Waste Management Board  
             (IWMB) an annual report that includes: 

              a)   An estimate of the number of covered electronic  
                devices sold by the manufacturer in the state during the  
                previous year.

              b)   A baseline or set of baselines that show the total  
                estimated amounts of mercury, cadmium, lead, hexavalent  









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                chromium, and PBB's used in covered electronic devices  
                manufactured by the manufacturer in that year and the  
                reduction in the use of those hazardous materials from  
                the previous year.

              c)   A baseline or set of baselines that show the total  
                estimated amount of recyclable materials contained in  
                covered electronic devices sold by the manufacturer in  
                that year and the increase in the use of those recyclable  
                materials from the previous year.

              d)   A baseline or a set of baselines that describe any  
                efforts to design covered electronic devices for  
                recycling and goals and plans for further increasing  
                design for recycling.

              e)   Make information available to consumers, that  
                describes where and how to return, recycle, and dispose  
                of the covered electronic device and opportunities and  
                locations for the collection or return of the device in a  
                specified manner.

              f)   For the purposes of complying the Act, allows a  
                manufacturer to submit a report to the IWMB that includes  
                only those covered electronic devices that include  
                specified compounds listed in #3b above that are exempt  
                from the European Union's (EU) Directive 2002/95/EC (the  
                Reduction  of Hazardous Substances Directive or RoHS  
                directive) if both of the following conditions are met:

                i)     The manufacturer submits written verification to  
                  DTSC that demonstrates, to the satisfaction of the  
                  department, that the manufacturer is in compliance with  
                  the RoHS directive and any amendments to that  
                  directive, for those covered electronic devices for  
                  which it is not submitting a report to the IWMB.

                ii)    DTSC certifies that the manufacturer is in  
                  compliance with the RoHS directive, and any amendments  
                  to that directive, for those covered electronic devices  
                  for which the manufacturer is not submitting a report  
                  to the board pursuant to this subdivision.










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            Pursuant to the Electronic Waste Law (Health and Safety Code  
           25214.9 et seq.)  :  
            
           1)Requires DTSC to adopt regulations that prohibit an  
             electronic device, as defined in Section 42463 of the PRC,  
             from being sold if the electronic device is prohibited from  
             being sold in the EU under the RoHS Directive due to the  
             presence of certain heavy metals in the device.
            
           2)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 RoHS Directive. 

           3) 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.).
            
           This bill  :  

           1)Requires a manufacturer of a covered electronic device 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.

           2)Requires the manufacturer to prepare and submit, if  
             requested, available information about the hazardous  
             characteristics of the device. 

           3)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. 

           4)Requires a producer of electronic equipment 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 EU under the RoHS Directive.

           5)Requires the producer to prepare and submit, if requested,  









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             available information about the hazardous substance content  
             and hazardous characteristics of the device. 

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

           7)Requires DTSC to treat as confidential, any information  
             provided under this bill that is a trade secret and that is  
             identified by the manufacturer as a trade secret.  Requires  
             information that is not a trade secret to be available to  
             the public pursuant to the California Public Records Act.

            COMMENTS  :

            1)Purpose of Bill  .  According to the author, in order for DTSC  
             to effectively enforce the existing hazardous materials ban  
             and inform the Green Chemistry Initiative, DTSC needs  
             authority to request documentation from electronics  
             manufacturers detailing the amount of hazardous materials  
             contained in their products.  Manufacturers are currently  
             providing this information upon request in the EU per its  
             "Restriction on the Use of Certain Hazardous Substances in  
             Electrical and Electronic Equipment" Directive 2002/95/EC  
             (RoHS).  Without this authority, DTSC must resort to  
             expensive product-by-product testing to determine the  
             hazardous materials content, if any, of a consumer  
             electronic item sold in the state.

            2)EU RoHS  .  The RoHS was adopted by the EU in February 2003  
             and took effect on July 1, 2006.  RoHS aims at controlling  
             the use of hazardous substances in the production of new  
             electrical and electronic equipment and prohibits the sale  
             of those products that contain more than specified levels of  
             mercury, lead, hexavalent chromium, cadmium and a range of  
             flame retardants, such as polybrominated biphenyls and  
             polybrominated diphenyl ethers.  Currently, RoHS  
             requirements only apply to products sold in the EU. As a  
             result, other countries and states, including California,  
             are examining RoHS-type standards consistent with the EU's  
             requirements. 










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             The EU RoHS is being implemented by the various member  
             states and is encountering implementation and harmonization  
             challenges that are common to such a comprehensive effort.   
             As with other laws and regulations, it is anticipated that  
             requirements may be amended from time to time, however  
             nothing has indicated that the overall vision and scope of  
             the effort will change.  Regardless, most manufactures are  
             working with their suppliers to develop policies and  
             processes to ensure and document that their products meet  
             the RoHS requirements. 

            3)California's RoHS  .  The Electronic Waste Recycling Act  
             includes, along with collection and fee requirements, a  
             California RoHS provision that requires DTSC to adopt  
             regulations prohibiting a covered electronic device from  
             being sold or offered for sale in California if that device  
             is prohibited from being sold or offered for sale in the EU  
             due to the presence of lead, mercury, cadmium and hexavalent  
             chromium above certain maximum concentration values (MCVs).   
             DTSC's regulations took effect January 1, 2007, and only  
             apply to covered electronic devices (video display devices  
             that have a screen 4 inches or greater).  Therefore, many  
             electronic products are  not  regulated under California's  
             current RoSH laws. 

            4)Status of California RoHS  .  While the DTSC regulations are  
             in effect, oversight and enforcement is a challenge as DTSC  
             does not have the authority to request, nor are  
             manufacturers required to provide, information that would  
             document compliance with the existing California RoHS  
             requirement.  Thus, DTSC must perform costly  
             product-by-product tests to determine if the covered device  
             meets the requirement.  This bill would remedy that  
             situation and allow DTSC to request technical information to  
             verify compliance.  As this is a similar requirement to the  
             EU RoHS, that data should already be compiled by the  
             manufacturers.  This would make it less costly and more  
             efficient to determine compliance.  It would help level the  
             playing field as most electronics manufacturers already  
             produce and sell EU RoHS compliant products in California. 

            5)Other Electronic Devices  .  Over the past several years, the  
             California legislature has considered numerous bills that  









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             would have expanded California's RoHS law to prohibit the  
             sale of electronic products banned in the EU in California.   
             This bill takes a different approach and instead requires  
             manufacturers to report data on the hazardous  
             characteristics of electronic devices sold in the state.   
             The language and timelines in the bill that describes the  
             requirements is similar to that used in the EU RoHS.

             As mentioned #2 above, as the EU RoHS requirements are  
             dynamic, thus allowing flexibility for the information  
             submitted by manufacturers to demonstrate compliance is  
             important.  Also, as to not unduly burden manufacturers,  
             consideration should be given to ensuring that the  
             information that can be requested by DTSC under this bill is  
             reasonable and relevant to accomplishing compliance  
             determinations.  Input from manufacturers with EU RoHS  
             expertise could put a fine point on these issues while still  
             providing DTSC the information it needs to determine  
             compliance.





            6)Related Legislation  .


              a)   AB 48 (Saldana, 2006), would have prohibited the  
                manufacture or sale of electronic products that are  
                prohibited from sale in the EU pursuant to the RoHS  
                Directive.  (Vetoed.) 


              b)   AB 218 (Saldana, 2007), would have expanded the  
                prohibition on the sale of all electronic devices in  
                California to all those that are prohibited from sale in  
                the EU by the RoHS Directive.  (Held on the Senate  
                Appropriations Committee suspense file.) 


              c)   AB 2202 (Saldana, 2006), would have prohibited the  
                manufacture or sale of electronic products that are  
                prohibited from sale in the EU pursuant to the RoHS  









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                Directive.  (Held on the Senate Appropriations Committee  
                suspense file.)


              d)   AB 3001 (Pavley, 2006), would have added personal  
                computers to the term "covered electronic device" after  
                July 1, 2007, and would have placed a $6 advanced  
                recycling fee on the retail sale of such products. (Held  
                on the Assembly Appropriations Committee suspense file.)


            SOURCE  :        Californians Against Waste  

           SUPPORT  :       American Federation of State, County and  
                          Municipal Employees, AFL-CIO, Environmental  
                          Working Group, Sierra Club California, Silicon  
                          Valley Toxics Coalition  

           OPPOSITION  :    Association of Home Appliance Manufacturers,  
                          California Business Properties Association,  
                          California Chamber of Commerce, California  
                          Manufacturers and Technology Association,  
                          California Retailers Association, Consumer  
                          Electronics Association, Industrial  
                          Environmental Association, Information  
                          Technology Industry Council, TechAmerica,  
                          TechNet