State Recycling Requirements for CE Manufacturers and Retailers in the U.S

State Recycling

Requirements

for CE Manufacturers and Retailers in the

U.S.

National Electronics Recycling Infrastructure

Clearinghouse

Overview• NERIC and NCER – About Us• Legislative Background• Project Scope Coverage• Covered Manufacturers/Retailers• Reporting/Registration Requirements• Financial/Operational Requirements• Brands and Orphan Issues• Product Design Requirements• Timelines• Trends & Outlook from CEA

This workshop is being conducted with support from CEA by the National Center for Electronics Recycling under the National Electronics Recycling Infrastructure Clearinghouse (NERIC) project.

About Us

1) The coordination of initiatives targeting the recycling of used electronics

2) Participation in pilot projects to advance and encourage electronics recycling

3) The development of programs that reduce the burden of government through private management of electronics recycling systems

• Non-profit 501c3• Located in Parkersburg, WV area (Davisville)

Polymer Tech Park

NCER’s Mission: Dedicated to the development and enhancement of a national infrastructure for the recycling of used electronics in the U.S. through:

About Us

LegislativeBackground

• First state electronics recycling mandate in the U.S. was in CA – LAW ENACTED IN 2003!

• Three more state mandates since: Maine (2004)

Maryland (2005)Washington State (2006)

• These states represent 50 million residents in the U.S. market, approximately 16% of the US population

• In all of these states, the penalty for non-compliance is: 1. products ineligible for sale in the state, and/or 2. financial penalties per each sale of covered

products

Product ScopeCoverage

California• Cathode ray tube (CRT) devices

(tvs and computer monitors)• LCD desktop monitors• Laptop computers with LCD displays• LCD and plasma televisions• Portable DVD players (fees begin 7/1/07)• All devices are covered in displays

if greater than 4 inches diagonally


Maine• Computer CPU/desktop (labeling

only)• As implemented, video displays over

4”:– CRT devices (monitor and TV)– Laptop computers– Portable DVD players

• Only household products - no devices disposed of by a business, industry, medical, educational or governmental entity are covered

Maryland• Desktop personal computers• Laptop computers• Computer monitors

• No mention of covered entities


Washington• Any monitor, TV or other video display over 4”

• Desktop computers

• Laptop computers

• All from covered entities only: households, small businesses, charities, small governments and

school districts


Commonalities & Differences

Commonalities• All cover computer monitors and laptop

computers over 4 inch screen size

Differences• WA and MD only cover desktop computers• ME covers only for brand labeling, not recycling• MD only state that excludes TVs• CA exempts certain projection TVs if actual

internal display is less than 4 inches (i.e. LCD PTVs)

• WA exemptions are more expansive than others (i.e. handheld portable voice or data devices, etc)

Coming Attractions

Portable DVDs soon covered by all states except MD (if over 4 inch

screen size)

New display technologies like digital picture frames and other novel applications could trigger new requirements

Covered Manufacturersand Retailers

• Generally: person who manufacturers covered products, or sells under own brand covered products in that state, or is the importer• Some laws state definition applies irrespective of selling method (i.e. internet, direct, catalogue)

• Some make explicit that manufacturer could have sold in past are still covered

Covered Manufacturer

• Fairly consistent definition: a person who offers covered electronic products for sale at retail through any means (i.e., internet, direct, catalogue)

Wholesalers excluded

• Maine specifies sales to “consumers”

Covered Retailer

• Maine and Maryland both allow manufacturers to claim responsibility for brands

• Washington requires “brand owner” be responsible for that brand • Maine and Washington cover historic producers, even if no longer in that product market

Differences Across State Programs

Reporting/Registration Requirements

California• No manufacturer registration requirements,

but annual reports required by July 1 on sales data, materials usage, recyclable content, design for recycling narrative, list of retailers notified, and consumer information provided.

• Retailers: required to register and establish an account with the California Board of Equalization for fee collection and remittance

Maine• No formal “registration” requirement,

manufacturers must submit “plan” for collection and recycling.

• Annual report required in July from manufacturers Collection/recycling services, estimates

of sales, capture rate, etc• No registration/reporting requirements for

retailers, unless the retailer meets definition of a manufacturer



Maryland• All companies meeting definition of

manufacturer (including 1000 unit threshold) must register and pay annual registration fee.

• No registration/reporting for retailers unless meeting definition of “manufacturer” by being a brand owner or importer of computers.

Washington• All covered manufacturers must register and pay annual administration fee to Department of Ecology beginning January 5, 2007• Other reporting by “plan”• No registration/reporting requirements for retailers unless meeting definition of covered manufacturer


Commonalities & Differences

• No individual company reporting requirements, plan does the report in WA

• Retailer registration/reporting requirements are limited to CA

• Requirements vary substantially across state, some general similarities but reporting/registration requirements are all unique

• Capture rate based on sales in ME only

Financial& OperationalRequirements

California• Manufacturers collect/remit ARF on direct

sales, retain 3%• Manufacturers required to annually notify

retailers of products covered by ARF. • Retailers collect/remit ARF on sales to CA

customers. retain 3%. Retailers only sell branded products and that meet RoHS restrictions for heavy metals.

Maine• Manufacturers/Retailers meeting manufacturer definition required to choose in recycling plan method of payment for returned brands brand responsibility:

Pay consolidator count + orphans Pick up representative pile OR, have branded product separated + orphans


Maryland• Manufacturers pay a $5000 initial annual

registration fee with list of brands by December 31 If desired, manufacturers may set up take-

back program and pay only a $500 annual fee

• Retailers may not sell brands of computers without a brand label or that have not paid registration fee.


Washington• Manufacturers may/must join Standard Plan (no choice if a white box or new entrant manufacturer) to manage and finance recycling program• Manufacturers may start on own or with others an independent plan (if combined return share above 5%)• Retailer may not sell covered products if manufacturer is not registered and part of an approved plan

Violation for both retailer and manufacturer


Brands & Orphan Issues

California• Other than labeling, brands/orphans don’t come into play• Brands for covered products given by manufacturers to retailers in annual

list

Maine• The company claiming a brand determines who pays in Maine; • Orphans divided those with over 1% return share, separate orphan pro

rata shares for monitors and TVs• Brand labeling requirements also for desktop computers

Maryland• Brands specified on manufacturer registration form, but brands not

differentiated on the recycling end.

Washington• Return share/equivalent share calculations are defined to allocate costs

and responsibilities among all compliant/participating manufacturers

Brand labeling is required in all states.

Product Design Requirements

Does not include separate laws on mercury or energy.

California• Restrictions on heavy metals specified in EU RoHS for

California’s covered electronic devices (CEDs) only – Lead, mercury, cadmium, and hex chrom (not RoHS flame

retardants)– Any future changes must mirror EU– Some legislative push to expand covered devices for this

requirement

Maine• No specific requirements, but state procurement preferences

– Purchasing preference must be given to electronic devices that incorporate design for the environment.

Maryland • None

Washington• Reporting requirement only. Calls for a description of how manufacturers will communicate with processors to promote and encourage design for the environment

Product Design Requirements

Timelines/Deadlines

• January 1, 2007: RoHS substances banned from covered products for sale in CA

• January 1, 2007: Manufacturer registration fee due to MD

• January 5, 2007: Manufacturers must have registered in WA to sell, retailers must view list to sell, brand labeling as of 1/1/07

• April 1, 2007: Manufacturers provide list of covered products to retailer in CA (including portable DVD)

• June 1, 2007: Preliminary return shares sent by WA government to manufacturers

• July 1, 2007: Manufacturer reports due in ME and CA• July 1, 2007: Retailers start portable DVD fees in CA

Timelines/Deadlines

• August 1, 2007: Final return shares published by Ecology

• January 1, 2008: Registration/admin fees due in MD and WA

• February 1, 2008: Initial standard and independent plans due in WA to government

• January 1, 2009: plans must be fully operational in WA

Introducing…

Parker Brugge with CEA

• The short answer from industry’s perspective: – Not Good!

• In 2006 e-waste bills of all stripes were introduced in about 25 states 2007 is expected to see a similar number, but probably more intense activity in several

states• Each of the last 4 years has seen 1 new,

unique e-waste mandate passed at the state level 2007 may produce at least 1 new state mandate, potentially as many as 5

Trends & Outlook for Future State Actions

2006 State Recycling Legislation

CA OHIL

KY

TNNC

SC

FL

TX

WA

NY

NJ

GA

MO

AZ

UT

NV

CO

CT

DE

ID

IA

VA

IN

MA

AR

ME

AL

OR

KS

MN

MS

MT

NM

ND

SD

VTNH

LA

PA

WY

NE

OK

HI

Puerto Rico

CANADA

WV

MEXICO

WIMI

RI

Minnesota

Massachusetts

Producer Responsibility Bill ARF or 1st Seller Bill

Manufacturer takebackCRTs, ComputersCarryover from 2005

Mftr. takeback to be proposed on TVs, CRTs by state Task Force

MD

New Hampshire

VermontManufacturer takeback Requires collection & recycling plans for TVs, monitors, computers, printers

Electronics/ComputerTask Force

WashingtonMftr. takeback law tobe signed by GovernorImplementation by 2009

Landfill Ban

Illinois

Rhode IslandMunicipalities manage e-waste; Mftr. takebackfor computers, TVs, monitors & audio

Mftr. takeback plans for TVs, monitors, & computers; landfill ban in July 2007

Recycling Task Force ongoing; Initial recommendations 5/ 06

E-scrap Task Force - recommendations to legislators by Dec. 2006

Kentucky

South Carolina

Task Force complete. recommendations imminent

DEQ ongoing study one-waste management options for state

New York1) Manufacturer takeback CRTs, Computers2) $10 ARF bill on CRT products; reintroduced

Mississippi2008 landfill ban; state agencies develop e-waste recycling plans

NebraskaManufacturer takeback using consolidation facilities; covers all CE

New Jersey$10 ARF on TVs and computers

DelawareUse unclaimed mftr. rebates to fund state-wide recycling program

New Mexico

Louisiana

Oklahoma

Michigan

California model ARF bill reintroduced

Establish statewide recycling pilot if mftrs.pay into fund

E-waste task forcereport due 12/2006

UtahLandfill ban after 2007; e-waste task force

MissouriE-waste task forcereport due 12/2006

ConnecticutARF on CRTs, & CRT containing products

(as of 3/16/2006)(as of 3/16/2006)

Recycling law activity in 2005: 23 states

Recycling law adopted to date: 4 states

Landfill Ban&

Task Force

Producer Responsibility Bill&

Task Force

Producer Responsibility Bill&

ARF or 1st Seller Bill

States expected to have e-waste activity in 2007:1. Minnesota2. Oregon3. New York4. Massachusetts5. Wisconsin6. Illinois7. Connecticut8. New Jersey9. Pennsylvania10. Others…

States to Watch2007

• CEA’s policy priority is for a national, federally legislated program

• CEA is working actively with Consumer Electronic manufacturers, retailers and other stakeholders to develop a common position

The Goal: A viable industry position that avoids placing

the entire financial burden on manufacturers, especially in industry

segments where such costs could not be recovered in the product sale price

A Viable Alternative

Help Us Find a Solution

Parker Brugge, CEAPhone: (703) [email protected]

Join CEA if you are not already a member!Participate in CEA’s Environmental

Policy Committee!Contact me for further

information!

Thank You!

AND…

Thank You!

Jason Linnell, NCERPhone: (304) [email protected]

Visit us on the web: www.ncerwv.orgAnd www.ecyclingresource.org

http://www.ncerwv.org/

http://www.ecyclingresource.org/

Documents

State Recycling Requirements for CE Manufacturers and Retailers in the U.S