BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 960
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    AB 960
           AUTHOR:     Lowenthal
           AMENDED:    May 27, 2011
           FISCAL:     Yes               HEARING DATE:     June 20, 2011
           URGENCY:    No                CONSULTANT:       Caroll 
           Mortensen
            
           SUBJECT  :    EXPORT OF HAZARDOUS ELECTRONIC WASTE

            SUMMARY  :    
           
            Existing law  :  Pursuant to the Hazardous Electronic Waste 
           Recycling Act (Act) of 2003 (Public Resources Code �42460 et 
           seq. and Health and Safety Code �25214.0 et seq.)

           1)Requires a consumer to pay a Covered Electronic Waste (CEW) 
             recycling fee upon the purchase of a new or refurbished 
             covered electronic device (CED) and specifies the amount of 
             the CEW recycling fee ranging from $6 to $10 for each CED 
             depending on the screen size.  (PRC �42464).

           2)Requires all fees collected pursuant to the Act to be 
             deposited in the Electronic Waste and Recovery and Recycling 
             Account, and authorizes those monies to be appropriated for 
             the following purposes:

              a)   To pay refunds of the CEW recycling fee.

              b)   To make electronic waste recovery payments to an 
                authorized collector of CEW.

              c)   To make electronic waste recycling payments to CEW 
                recyclers.

              d)   To make specified payments to manufacturers who take 
                back CEW from consumers for the purpose of recycling the 
                item.  (�42476.).

           3)Requires, pursuant to regulations, the Department of 









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             Resources Recycling and Recovery (DRRR) to review payment 
             claims made by CEW collectors and recyclers and determine if 
             a payment is due under the Act.  DRRR 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 (�42476.5):

              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.

              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).

           5)Exempts parts and components of CEW that are ready for reuse 
             or recycling from the export requirements in #5 above 
             (�42476.6). 

            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 covered electronic waste (CEW) 
              under the provisions of the Act.

           2) Defines "electronic waste" as an electronic device, not 









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              including CEW, which is discarded and identified as 
              hazardous waste under the Health and Safety Code and 
              includes, but is not limited to, cash registers, 
              oscilloscopes, computers, computer peripherals, telephones, 
              answering machines, radios, stereo equipment, tape players, 
              recorders, phonographs, video cassette players or 
              recorders, compact disc players or recorders, calculators, 
              and appliances.

           3) Requires, as a condition of payment under the Act, a CEW 
              recycler to demonstrate and DRRR to determine 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.

           4) Repeals the existing exemption governing export of 
              component parts of CEW ready for reuse or recycling and 
              instead requires DTSC to adopt regulations that provide 
              guidance to exporters of materials and components and to 
              exempt from the requirements of �42476.5 only materials or 
              component parts of electronic waste, covered electronic 
              waste, previously used electronic devices, and previously 
              used covered electronic devices that are ready for reuse or 
              recycling back into new materials or products without 
              further processing or handling and that pose no risk to 
              public health or the environment.

           5) States that it is the intent of the Legislature that only 
              materials or component parts of electronic waste or 
              previously used electronic devices that are ready for reuse 
              or recycling back into new materials or products without 
              further processing or handling and that pose no risk to 
              public health or the environment are exempt from export 
              requirements. 

            COMMENTS  :

            1)Purpose of Bill  .  According to the author, there are no 
             recycling requirements or export restrictions on the 
             thousands of tons of consumer electronics that are not 
             covered by the California Electronic Waste Recycling Act of 
             2003. While some of these devices are collected for 









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             recycling in California along with "covered" devices, the 
             State has very little authority to regulate these materials. 


             Due to lack of regulation, these non-covered devices are 
             frequently shipped overseas for processing in countries with 
             lax worker safety standards and environmental protections.  
             Some non-covered devices include: computer towers, printers, 
             fax machines, stereo equipment, computer peripherals, 
             calculators, microwaves, telephones and answering machines, 
             etc. 

             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.

            2)Background on the Export 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 in the Sacramento Bee on November 28, 
             2010, 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 









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             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 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 Organization for Economic Cooperation and 
             Development (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 current condition of payment under the 
             Act.

             To address California's exporting issues, AB 960 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. 

            3)Other Challenges to Proper Management  .  The export of 
             electronic waste, as well as other wastes, is governed by 
             the Commerce Clause that prevents California from banning 
             exports.  The issue of export of electronic waste should be 
             addressed at the national level where the authority lies to 
             ensure that the inherent hazards of electronic waste and 
             other wastes can be addressed.  

             Also, better oversight by DTSC, in coordination with DRRR, 
             is also necessary.  Tracking shipments of CEW and other 
             electronic wastes challenging however, and a determination 
             that a shipment of CEW and other electronic waste has been 
             properly managed may not to be able to be determined 
             definitively.

            4)Related Legislation  .  










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             a)   AB 549 (Carter) seeks to require, as a condition of 
                making e-waste recycling or recovery payments by DRRR, 
                that the covered electronic device for which the payment 
                is claimed was used in California.  AB 549 is currently 
                in the Environmental Quality Committee. It is a two-year 
                bill. 

             b)   AB 583 (Knight) seeks to transfer the duties, powers, 
                and authority of the DTSC under the Electronic Waste 
                Recycling Act to DRRR.  Assembly Environmental Safety and 
                Toxic Materials Committee. Hearing was canceled at the 
                author's request.

              c)    AB 794 (Wieckowski) Provides additional processes for 
                 the review of claims prior to making payments for 
                 covered electronic devises This bill set for hearing in 
                 this Committee on June 20, 2011.

            5)Amendments Necessary  .  This bill amends several codes 
             sections also in AB 794 (Wieckowski). These conflicts will 
             have to be resolved to avoid chaptering out issues. 

            SOURCE  :        Californians Against Waste  

           SUPPORT  :  California Resource Recovery Association
                          Sierra Club California
                          Silicon Valley Toxics Coalition
            
           OPPOSITION  :    None on file