BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 960
                                                                  Page 1

          Date of Hearing:  April 4, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                AB 960 (Lowenthal) - As Introduced:  February 18, 2011
           
          SUBJECT  :  Recycling:  electronic waste

           SUMMARY  :  Requires an exporter of electronic waste to 
          demonstrate that waste it exports will be recycled or disposed 
          of in a manner that is consistent with applicable state, 
          national, and international laws and guidelines.  Conditions 
          payment under the Electronic Waste Recycling Act (Act) on 
          compliance with the Act's exporting requirements.

           EXISTING LAW  :

          1)Establishes the Act with the purpose of providing a cost free 
            and convenient means for consumers to return, recycle, and 
            ensure the safe and environmentally-sound disposal of covered 
            electronic devices (CED).  A CED is a video display device 
            containing a screen greater than four inches, measured 
            diagonally.  CED that is discarded is considered "covered 
            electronic waste" (CEW).

          2)Requires a consumer to pay a CEW recycling fee upon the 
            purchase of a new or refurbished CED.  The CEW recycling fee 
            ranges from $6 to $10 for each CED depending on the screen 
            size.  The fee is deposited into an account and used primarily 
            to pay CEW collectors and recyclers.

          3)Provides payment to CEW collectors and recyclers for costs 
            associated with collecting and recycling CEW that has been 
            generated in the state.  Regulations expressly prohibit a CEW 
            collector or recycler from requesting payments for 
            non-California CEW.  CEW owned by a person in California but 
            used entirely outside of the state is not eligible for 
            payment.

          4)Requires, pursuant to regulations, the Department of Resources 
            Recycling and Recovery (CalRecycle) to review payment claims 
            made by CEW collectors and recyclers and determine if a 
            payment is due under the Act.  CalRecycle may deny or adjust 
            payment for an incomplete or deficient payment claim.









                                                                  AB 960
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          5)Requires a person who exports CEW to a foreign country to do 
            the following at least 60 days prior to export:

             a)   Notify the Department of Toxic Substances Control of the 
               destination, disposition, contents, and volume of the CEW 
               to be exported.

             b)   Demonstrate that the CEW is being exported for the 
               purposes of recycling or disposal.

             c)   Demonstrate that the importation of the CEW is not 
               prohibited by an applicable law in the country of 
               destination and that any import will be conducted in 
               accordance with all applicable laws of the destination 
               country.

             d)   Demonstrate that the exportation of the CEW is conducted 
               in accordance with applicable United States or applicable 
               international law.

             e)   Demonstrate that the CEW will be managed within the 
               country of destination only at facilities with operations 
               that meet or exceed the binding decisions and implementing 
               guidelines of the Organization for Economic Cooperation and 
               Development (OECD).

           THIS BILL  :

          1)Requires a person who exports "electronic waste" to a foreign 
            country to comply with the same requirements imposed on an 
            exporter of CEW.  "Electronic waste" is defined as an 
            electronic device, not including CEW, that is discarded and 
            identified as hazardous waste under the Health and Safety 
            Code.  Electronic waste includes telephones, stereo equipment, 
            and computer peripherals.

          2)Requires, as a condition of payment under the Act, a CEW 
            recycler to demonstrate and CalRecycle to determine that (1) 
            no CEW is exported to a country in violation of the laws or 
            requirements of that country and (2) all electronic waste 
            handled by the recycler requesting payment has been managed 
            consistent with the Act's exporting requirements.

           FISCAL EFFECT  :  Unknown









                                                                  AB 960
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           COMMENTS  :

           1)Background.   The purpose of the Act is to provide a cost free 
            and convenient way for consumers to return, recycle, and 
            ensure the safe and environmentally-sound disposal of CED.  
            Since January 2005, approximately 965 million pounds of 
            claimed CEW has been recycled as a result of the Act.  The Act 
            has created jobs and fostered California's electronic waste 
            and recycling infrastructure with approximately 600 approved 
            CEW collectors and 60 approved recyclers throughout the state. 
             The state's CEW infrastructure also recovers substantial 
            quantities of miscellaneous electronic waste not covered by 
            the CEW payment system.

           2)Exporting Problem.   The Act has been productive in collecting 
            and recycling CEW; however, there has been controversy 
            associated with the exportation of CEW and other electronic 
            waste.  According to a US Environmental Protection Agency 
            report, "while some electronic waste can be handled 
            responsibly in countries with effective regulatory regimes and 
            by companies with advance technologies, a substantial amount 
            ends up in countries such as China and India, where they are 
            often handled and disposed of unsafely."  China, in 
            particular, has areas where open burning and acid baths to 
            recover metals from electronic waste are commonplace, and the 
            residual toxic waste from such operations is simply discarded, 
            allowing pollutants to seep into the ground and water source.  
            Children in these areas have lead levels in their blood that 
            were more than 50 percent higher than the limit for lead 
            exposure set by the Centers of Disease Control and Prevention 
            in the United States.  

            A recent news report claims that California exports 160 to 210 
            million pounds of electronic waste annually.  Allegedly, much 
            of this waste makes its way to developing countries and is 
            processed in ways that are offensive to human health and the 
            environment.  At least one CEW recycler blames California's 
            electronic waste exporting problems on the millions of pounds 
            of collected electronic waste not covered by the Act.  Since 
            this electronic waste has no value under the Act, recyclers 
            look to sell the waste to brokers who are buying the material 
            and exporting it to countries like China.

            Existing law places specific restrictions on the exportation 
            of CEW.  For example, a person who exports CEW must 








                                                                  AB 960
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            demonstrate that the waste will be managed at facilities with 
            operations that meet or exceed the binding decisions and 
            implementing guidelines of the OECD.  OECD, of which the 
            United States is a member, prohibits its member countries from 
            exporting hazardous waste to non-OECD countries unless the 
            waste is sent to an adequate disposal facility.  The CEW 
            exporting restrictions are a condition of payment under the 
            Act pursuant to Section 42476(f)(1) of the Public Recourses 
            Code.

            To address California's exporting issues, the bill applies the 
            CEW exporting requirements, including the OECD guidelines, to 
            other types of electronic waste.  If a CEW collector or 
            recycler is seeking payment for CEW, it would have to 
            demonstrate that all exported electronic waste, as well as CEW 
            waste, was managed properly. 

            The bill, through Section 42476(f)(4) of the Public Recourses 
            Code, also reiterates existing law, which conditions payment 
            for CEW on demonstrating that exported CEW will not violate 
            the laws in the country of destination. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Californians Against Waste
          California Resource Recovery Association
          Silicon Valley Toxics Coalition
          Sierra Club California

           Opposition 
           
          None on file
           

          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916) 
          319-2092