BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      AB 960
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         ASSEMBLY THIRD READING
         AB 960 (Bonnie Lowenthal)
         As Amended  May 27, 2011
         Majority vote 

          NATURAL RESOURCES   6-3         ENVIRONMENTAL SAFETY         6-1 
          
          ----------------------------------------------------------------- 
         |Ayes:|Chesbro, Brownley,        |Ayes:|Wieckowski, Campos,       |
         |     |Dickinson, Huffman,       |     |Chesbro, Davis, Feuer,    |
         |     |Monning, Skinner          |     |Bonnie Lowenthal          |
         |     |                          |     |                          |
         |-----+--------------------------+-----+--------------------------|
         |Nays:|Knight, Grove, Halderman  |Nays:|Morrell                   |
         |     |                          |     |                          |
          ----------------------------------------------------------------- 
          APPROPRIATIONS      12-5                                         
          
          ----------------------------------------------------------------- 
         |Ayes:|Fuentes, Blumenfield,     |     |                          |
         |     |Bradford, Charles         |     |                          |
         |     |Calderon, Campos, Davis,  |     |                          |
         |     |Gatto, Hall, Hill, Lara,  |     |                          |
         |     |Mitchell, Solorio         |     |                          |
         |     |                          |     |                          |
         |-----+--------------------------+-----+--------------------------|
         |Nays:|Harkey, Donnelly,         |     |                          |
         |     |Nielsen, Norby, Wagner    |     |                          |
         |     |                          |     |                          |
          ----------------------------------------------------------------- 
          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.  Specifically,  this bill  requires:

         1)A person who exports "electronic waste" to a foreign country to 
           comply with the same requirements imposed on an exporter of 
           covered electronic waste (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, among other things, 
           telephones, stereo equipment, and computer peripherals.








                                                                      AB 960
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         2)The recycler, as a condition of payment under the Act, to 
           demonstrate that:  a) no CEW is exported to a country in 
           violation of the laws or requirements of that country and, b) 
           all electronic waste handled by the recycler requesting payment 
           has been managed consistent 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 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 for costs associated with collecting 
           and recycling CEW that has been generated in the state.  

         3)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.

         4)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 (DTSC) 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; and, e) demonstrate that the CEW 
           will be managed within the country of destination only at 
           facilities with operations that meet or exceed the binding 








                                                                      AB 960
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           decisions and implementing guidelines of the Organization for 
           Economic Cooperation and Development (OECD).

          FISCAL EFFECT  :  According to the Assembly Appropriations 
         Committee: 

         1)Annual costs to DTSC of less than $100,000 to increase its 
           review of electronic waste intended for export, educate 
           stakeholders, and maintain information on potential recipient 
           jurisdictions.  

         2)Minor, absorbable costs to CalRecycle to determine whether an 
           exporter has demonstrated to DTSC that the waste it exports will 
           be recycled or disposed of consistent with applicable state, 
           national, and international laws and guidelines.

          COMMENTS  :  The Act has been productive in collecting and recycling 
         CEW-since January 2005, approximately 965 million pounds of 
         claimed CEW has been recycled as a result of the Act.  There has 
         been, however, 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% 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.








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         Existing law places specific restrictions on the exportation of 
         CEW.  For example, a person who exports CEW must 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 the Public Recourses Code 
         Section 42476(f)(1).

         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 will have to demonstrate that all 
         exported electronic waste, as well as CEW waste, was managed 
         properly. 


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


                                                                 FN: 0001140