Washington State's Electronics Recycling Law: A Producer Responsibility System

2. Second International Workshop: Shared Responsibility for the Disposal of Computers in Latin America and the Caribbean Brasilia, Brazil Lunes 26 de Junio de 2006 Washington State's Electronics Recycling Law: A Producer Responsibility System

3. U.S.A. National Negotiations Fail • National Electronics Product Stewardship. • Initiative (NEPSI) started in June 2001 with 48 stakeholders representing: • 15 manufacturers • 15 state, local & federal government reps • 18 others including recyclers, NGOs, retailers, etc. • Final meeting February 2004. • Manufacturers could not reach agreement.

4. States Forced to Act State Legislation Introduced in 2004 Of 14 substantive introduced measures: • 7 Producer Responsibility • 3 Consumer fees • 1 Shared responsibility • 3 Advisory committees • Several disposal bans

5. 2006 State Recycling Legislation CANADA (as of 04/01/06) WA MT OR ND ME ID MN VT NH SD WI NY WY MA MI CT RI NV NE IA NJ PA UT IL OH MD CA IN DE CO WV KS MO VA KY AZ NC OK TN NM AR HI SC MS AL GA TX LA FL MEXICO Puerto Rico Recycling lawactivity in 2005 Producer Responsibility Bill Electronics/ComputerTask Force Landfill ban ARF or 1stSeller Bill Recycling law adopted

6. Fourth State to Pass Law • California 2003 • Financed by fee on customers collected by retailers (advance recovery fee – ARF) • State administers program • Payments made to processors and collectors • Maine 2004 • Partial Producer Responsibility • Local governments pay for collection • Manufacturers pay for consolidation and processing • Maryland 2005 • Manufacturers pay small fee to state (insufficient) • Local governments provide program

7. Washington State broke the ice on full producer responsibility in the United States!

8. This is Full Producer Responsibility • Manufacturers fully responsible for financing ENTIRE system, not just some part. • Local and state governments NOT stuck with costs. • Local governments NOT forced to collect electronics. • Puts responsibility where it matters – with producers.

9. Why Cost Internalization? • Manufacturers finance the program. • Recycling cost included in product price. • Recycling is a cost of doing business. • Prices should tell the truth. • Recycling becomes a product feature. • Incentive to decrease recycling costs in order to decrease product price. • Impact on green design.

10. Why Cost Internalization? • Shifts cost from local government. • Cost passed on to consumer (not taxpayer). • Less state government bureaucracy. • No additional paperwork for retailers. • Eliminates consumer confusion about ARF.

11. E-Waste Study • 18 Month Study Process. • Diverse Stakeholders Representing: • Manufacturers - Retailers • Governments - Recyclers • Haulers - Business Association • Charities • Environmental Groups

12. E-Waste Study 2005 Washington Department of Ecology: Recommendations for Producer Responsibility Approach to the Legislature “Cost internalization relies on the private sector to do what it does best – compete fairly in the open market to provide the best available products and services at the lowest possible cost.”

13. Legislation Proponents A group formed around a producer-pays system • Hewlett Packard • Retailers • Goodwill (reuse charity) • Environmental groups • A number of local governments (advisory) Common Interests Stakeholder Interests & Compromises

14. Support From Many Many Diverse Interests Supported Bill • Environmental community legislative priority • Many small and rural governments • School districts • Religious and health organizations • Amazon.com • Haulers, recyclers, processors

15. The Vote Democrats and Republicans Vote YES House: yes – 69, no - 29 Senate: yes – 38, no – 11 Governor Christine Gregoire signed into law on March 24, 2006 • Vetoed section restricting export • Strongly supports intent • More work to be done to address that issue

16. The Basics • Product manufacturers provide free recycling services throughout the state at no charge to the product owner. • No state tax or fee charged to the consumer at point of purchase or end of life. • Covered products - computers, computer monitors, laptop computers and televisions. Implementation Date - January 1, 2009. 16

17. Service Level • Any household, charity, school district, small business, or small government located in Washington State. • Minimum: one collection point in every city with a population of 10,000 or more and at least one in every county. • Collection, transportation and processing costs are covered for electronic products from households/small quantities. • Processing costs are covered, at a minimum, for larger quantities from charities, school districts, small businesses and small governments. 17

18. Manufacturer Responsibility • Manufacturer Pays - Cost internalization. • Manufacturer Registration – All manufacturers must register annually and participate in an approved plan. • Manufacturer Plans – All manufacturers selling into the state must be members of the standard program or may participate in an approved independent plan. • State Costs - Covered by manufacturer registration & plan fees.

19. The Standard Program • Operated by the Materials Management and Financing Authority • Quasi-governmental Third Party Organization • Board appointed by Department of Ecology • Cost of program shared among member manufacturers • All “new entrants” must participate in standard plan

20. Independent Programs • Independent programs are allowed if approved by State. • Must have minimum of 5% return share by brand (can be multiple manufacturers). • Must have sold branded computers in State for minimum of 5 years, 10 years for TVs. • Must meet same service and other requirements as Standard Program.

21. Shared Responsibility • Consumers will typically deliver equipment to collection sites. • Retailers, local governments, recyclers, haulers, & charities may voluntarily serve as collection sites. • Manufacturers pay (including retailers for their own house brands). • State government provides oversight & enforcement. • Shared education.

22. Material & Money Flow

23. Other Highlights • Reuse Encouraged - Programs working with non-profit reuse organizations get additional 5% credit for poundage from those charities. • Enforcement - Non–participating manufacturers cannot sell products in or into the state.

24. Other Highlights • No Disposal Ban - 43% population currently under local disposal bans and more coming. • Labor - Prison labor can not be used to process collected products. • Processing Standards –required.

25. Myth Busting • Manufacturers will not just pay fines and do no program. If don’t participate, they can’t sell in state. • Collectors will not have to sort by brand. • There will not be lots of different programs by different manufacturers to confuse the public and frustrate collectors. • Governments and retailers are not required to provide collection. Decision is voluntary.

26. The Washington State Approach • Puts businesses in driver’s seat for business decisions. • Uses incentives, competition and the market economy to drive system, not prescriptive targets. • Addresses majority of stakeholder concerns. • A fair, progressive approach that will get the job done!

27. Pharmaceuticals Paint Mercury-containing devices Other electronics Batteries Cell phones Containers General Product Legislation What’s Next?

28. Recommendations • Only accept a complete system: Collection, Transport and Processing! • A Producer Responsibility Approach is best! • Simplify – it can be easier than Washington State approach! • Learn from British Columbia, Canada’s Stewardship Law!

29. Exporting Harm • Video by Basel Action Network • Portrays Chinese recycling operations extremely harmful to human health and environment • What is happening in your country? • What is my country causing?

30. Additional Information Sego Jackson, Snohomish County, Washington State U.S.A. sego.jackson@co.snohomish.wa.us, 425-388-6490 • WA State Department of Ecology E-waste informationhttp://www.ecy.wa.gov/programs/swfa/ewaste/ • Washington’s Electronics Recycling Bill http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6428 http://www.productstewardship.us/supportingdocs/WA_Electronics_Law.doc • Northwest Product Stewardship Council http://www.productstewardship.net/ • Product Stewardship Institute http://www.productstewardship.us/ • Basel Action Network (Exporting Harm) http://www.ban.org • Washington Citizens for Resource Conservation http://www.wastenotwashington.org 30