Update on Materials Restrictions in the Global Marketplace

1. TOXICS USE REDUCTION INSTITUTE Update on Materials Restrictions in the Global Marketplace June 1, 2005 Wire and Cable Supply Chain Workshop Boxborough, MA Liz Harriman MA Toxics Use Reduction Institute TURI

2. Overview • Materials now or potentially subject to Restrictions • Regulatory Materials Restrictions • European Union • China • Market Drivers • OEMs • Labeling • Voluntary Phase-Outs TURI

3. Materials Subject to Restrictions • Heavy metals: • Lead (CA Prop 65, EU RoHS, China RoHS, ELV) • Mercury, cadmium and hexavalent chromium (RoHS, ELV) • Brominated flame retardants: • PBBs (polybrominated biphenyls) (RoHS) • Certain PBDEs (polybrominated diphenylethers) • Penta- and Octa-BDE (EU Dangerous Substances Directive 76/769/EEC, RoHS, U.S. voluntary agreement) • Deca-BDE (RoHS)

4. Materials Subject to Reporting or Reductions • Halogenated materials • PVC • often is part of recyclability goals (e.g., Toyota) • Brominated Compounds • E.g., Dell goal: By 2006, reduce the amount of bromine shipped in Dell displays by 30% from 2004 • Antimony • TRI Reporting, on many OEM lists of reportable substances, undergoing risk assessment in EU

5. EU Regulatory Restrictions • EU Directive 76/769/EEC: Restrictions on the Marketing and Use of Certain Dangerous Substances and Preparations • EU Risk Assessments on Octa and Penta-BDE resulted in Commission adopting risk reduction measures: • EU Directive 2003/11/EC (6 Feb 2003 amending 76/769/EEC) restricting octa and penta-DBE in products, effective 15 August 2004 • Concentration limited to 0.1% by mass

6. EU Regulatory Materials Restrictions • WEEE and RoHS • RoHS: 1 July 2006 restricts use of mercury, lead, cadmium, hex chromium, PBBs and PBDEs • PBBs no longer used in EU and US • Octa and Penta BDE covered under Dangerous Substances Directive • Deca phase out included - exemption still uncertain • RoHS states that EU Commission shall evaluate as a matter of priority, whether Deca should receive exemption

7. EU Deca BDE RoHS Exemption • Human Health Risk Assessment completed with “no further risk reduction measures required” • Environmental Risk Assessment – final draft May 2004 • Need for further information and testing wrt PBT assessment • "Decabromodiphenyl ether is likely to be very persistent (vP), but not bioaccumulative nor toxic in the marine environment according to the criteria presented in the Technical Guidance Document. However, the PBT assessment is complicated by data available on the: • widespread occurrence of the substance in top predators (e.g. birds and mammals, including terrestrial species) and the Arctic; • neurotoxic effects and uptake of the substance by mammals in laboratory studies; and • possible formation of more toxic and accumulative products such as lower brominated diphenyl ether congeners and brominated dibenzofurans in the environment. • This means that the available assessment methodology might not be applicable to this substance."

8. EU RoHS & Deca BDE Risk Assessment – Latest Breaking News…. • EC recommended exemption for decaBDE • Member states experts committee did not back the exemptions proposed by the EC • Referred to council of ministers for resolution • EU Scientific Committee on Health and Environmental Risks (Scher) on 3/31/05 said EU risk assessment underestimated dangers posed by deca and "strongly recommends" further risk reduction measures • “Emissions of deca to the environment may constitute serious problems in the future,” with more evidence of breakdown products.

9. RoHS – Implementation Considerations • Maximum Concentration Limits • TAC proposed 0.1% by weight (1000 ppm) of “homogeneous materials” for Pb, Hg, Cr+6, PBB, PBDEs • 0.01% for Cd • Homogeneous Material • ‘of uniform composition throughout,’ cannot be mechanically disjointed (materials cannot be separated by mechanical actions such as unscrewing, cutting, crushing, grinding and abrasive processes) • EU example: electric cable is two homogeneous materials (the wire and the insulation)

10. European WEEE • Broad applicability to electronic products and electrical equipment, with list of exemptions • Objective: Divert WEEE from landfills and incinerators to environmentally sound re-use and recycling • Producer responsibility, recycling at EOL, DfE - recycled content of new products, RoHS • Separation of toxic-containing components • Plastic parts containing BFRs must be separated prior to recovery and recycling

11. WEEE/RoHS – Implementation Issues • “placed on the market” • Imported into EU • Transferred to distributor or retailer • Transferred to warehouse ready for dispatch to customers • “producer” • Importer • EU manufacturer • Requirements will be same in all EU countries, but enforcement and penalties may vary

12. China WEEE and RoHS • China’s Clean Production Promotion Law, effective Jan 03 provides legislative authority for wide range of materials restrictions in China • CP: “fundamental reduction of pollution from sources, enhancement of resource utilization, reduction in or prevention of pollution during production..” • “electronic information products” (TVs, computers, household electronic products, instruments) • Substances: Pb, Hg, Cd, Cr+6, PBBs, PBDEs, and “other toxic and harmful substances” • July 1, 2006 compliance date

13. Market Supply Chain Restrictions and Drivers • Electronics Mfr. Green Product • Sony, Xerox, Motorola, Hitachi, and others have introduced products and/or set goals for reducing or phasing out certain substances • Green labeling • EU Flower Ecolabel prohibits: • PBBs, PBDEs, certain chloroparaffins, for parts > 25 g in electronic products • Green buildings • Take-back programs • driver for materials that are easy and safe to recycle