September 6, 2005 MEMORANDUM To: Members, Subcommittee on Environment and Hazardous Materials From: Committee Staff Subject: Oversight Hearing on Electronic Waste in the Unites States The Subcommittee on Environment and Hazardous Materials has scheduled the second part of a two-part hearing for Thursday, September 8, 2005, at 2:00 p.m. in 2322 Rayburn House Office Building. This hearing is entitled "Electronic Waste: An Examination of Current Activity, Implications for Environmental Stewardship, and the Proper Federal Role." Witness participation is by invitation only. Background The rapid growth in technology and software have made the use of computers, televisions, and other electronic products ubiquitous in the United States and other developed countries, but disposal of these products, when they become "e-waste" at the end of their useful lives, poses major potential environmental problems. With this expansion of new and improved products though, come many questions about technology turnover, end-of-life use, and waste disposal capacity. The Congressional Research Service notes that according to the National Safety Council, 500 million personal computers will become obsolete in the U.S. between 1997 and 2007 -- at an average lifespan of two (2) years and weight of 60 pounds per PC. Management of these electronic wastes is a concern in part because of their sheer volume, but more also because they contain large amounts of heavy metals and other toxic substances. A computer monitor or television set, for example, generally contains 4-10 pounds of lead. Mercury, cadmium, and other heavy metals are also commonly used in such equipment. In an incinerator or landfill, these metals can be released to the environment, contaminating air, ash, and ground water. As a result, many argue that electronic equipment should be managed separately from the municipal waste stream, and recycled whenever possible. Numerous interested parties, including some states, solid waste management officials, electronics manufacturers, environmental groups, and retailers, have begun to develop alternative approaches; and elsewhere in the world, notably in Japan and the European Union, regulations Page 2 are being implemented that will force manufacturers and importers to take back end of life products for recycling and waste management separate from the municipal waste stream. Federal Programs No U.S. statute governs the specific disposal and recycling electronic products. While electronics disposed in large quantities, under the Resource Conservation and Recovery Act (RCRA), needs to be disposed of by waste generators and transporters in specially permitted hazardous waste facilities, RCRA exempts households and other small-quantity generators from hazardous waste management requirements. In addition, Federal law allows larger generators of electronic equipment to avoid regulation by donating these items to educational or charitable organizations. The U.S. Environmental Protection Agency’s (EPA) main response to dealing with the electronic waste stream has come in the form of its programs under the Resource Conservation Challenge (RCC). RCC is a largely voluntary, EPA initiative that identifies and promotes flexible approaches to protect and conserve natural resources, prevent pollution, promote recycling and reuse, reduce priority chemicals at all product life cycle stages, and conserve energy and materials with a focus on materials management and resource conservation that is results oriented. The “Product Stewardship” portion of RCC has three (3) main “challenges” that focus on electronic waste streams: (1) the “Plug-In To eCycling Program” attempts to increase recycling of old consumer electronics by giving incentives to product manufacturers and retailers while getting private sector partners to commit to making more recycling opportunities available to the public; (2) the “Federal Electronics Challenge” encourages General Services Administration, Departments of Defense, Energy, and Interior, and the Federal Network for Sustainability to buy “green” products, use them more efficiently, and manage them better at the end of their useful lives; and (3) the “Electronic Product Environmental Assessment Tool” labels and rates electronic equipment based on certain environmental factors. In addition to EPA, the U.S. Department of Commerce has also been following trends in electronic waste. At Part 1 of this hearing, the Commerce Department will submit a report to Congress to create a "road map" on promoting electronics recycling nationwide. This report was borne of roundtable meetings on market issues, particularly a concern about a patchwork of state regulations, affecting electronics recycling between the Commerce Department, EPA, and several industry representatives. The Commerce Department report is not fully intended to make legislative recommendations but rather to outline areas of consensus. State Programs Currently, only three (3) states have enacted actual statutes to address electronic waste: California, Maine, and Maryland. While each of these laws is intended to address cathode ray tubes (CRTs) as well as flat screen liquid crystal displays (LCDs), each is quite different in the obligations placed on various parties and the way each operate. The California law, enacted on September 23, 2003, funds a recycling program by charging consumers an advance recycling fee (ARF) of between $6-$10, based on the size of the computer or television screen, and is levied at the point of the item’s sale. The ARF only applies to products purchased by households; it does not apply to businesses, government, or other institutions. The collected funds are then supposed to be used to reimburse authorized electronic Page 3 waste consolidators and recyclers. In addition, beginning on January 1, 2007, the California law prohibits, with a few exceptions, the use of certain products containing hazardous substances banned by the European Union, including flame retardants, lead, cadmium, mercury, and hexavalent chromium. Additionally, beginning in one year, California will require retailers of cell phones to collect – at no cost to consumers buying a new cellular phone -- used products for reuse, recycling, or proper disposal. Maine enacted its law on April 22, 2004. Like California, Maine’s law applies only to computer or television screens disposed by households. However, instead of an ARF, Maine requires manufacturers to pay for recovery of and recycling costs associated with their own products when they become waste, as well as a pro-rata share of orphan waste (electronic waste whose manufacturers are either no longer in business or are not viable enough to pay for product recovery and recycling costs). Also, as opposed to banning certain products based on substances contained in them, Maine’s law states that manufacturers should reduce and ultimately phase out hazardous materials, but does not specify a requirement. Of note, though, Maine has banned some of the same flame retardant chemicals as California beginning in 2006. Maryland was the last and most recent state to enact an electronic waste law in 2005. Unlike California and Maine, the Maryland law is a five-year pilot program that applies only to desktop and laptop computers, not television or cellular phones (Maryland’s law requires further study of CRT devises). Under Maryland’s law, a manufacturer who produced more than 1,000 computers on average each year since 2002 must register with the state and pay an initial fee of $5,000 by January 1, 2006 in order to sell computers in Maryland. This money is deposited into a State Recycling Trust Fund to finance program costs. In subsequent years, manufacturers are required to pay the annual $5,000 registration fee, however, they can qualify for a reduced fee of $500 if the manufacturer agrees to pay to “take back” computers from consumers for refurbishment and recycling. Outside of these three states, as of June 2005, 23 other states were investigating some way to address electronic waste. Included in this number are ten (10) northeastern states that recently released draft legislation to form a regional electronic waste disposal compact, as well as two states, Massachusetts and Minnesota, addressing electronic waste without establishing a statutory, statewide recycling program. Both states have banned the disposal of CRTs and have either set up grants for local recycling programs or instituted several voluntary recycling programs. International Impacts on U.S. Commerce Computers and consumer electronics are among the most international industries with products made among several different continents for shipment to the United States and elsewhere. Consequently, the development of legislation and regulations, particularly in the European Union (EU), has a great impact on design, sales, and investment on products in the United States. The size and importance of the European Union (376 million consumers in some of the world's wealthiest economies) and the broad sweep of e-waste requirements have made EU developments the principal focus of discussion among participants and observers of the electronics industry. The EU’s basic principles, producer responsibility for take-back and for financing collection and recovery systems, fees on new products to cover the cost of managing historical waste, recycling targets, and controls on hazardous substances, appear common to many European programs. Page 4 The European Union Directive on Waste Electrical and Electronic Equipment (WEEE) establishes comprehensive “take-back” and recycling requirements for retailers, manufacturers, and importers of electrical and electronic products, as well as prescriptive recycling targets per product. WEEE contains a very comprehensive list of covered products, including household appliances, computer and telecommunication equipment, consumer electronics (TVs, radios, VCRs, etc.), lighting equipment, tools, toys, medical equipment, monitors and controls, and vending and ATM machines. Unlike Federal law, though, which directly binds individuals or parties, EU directives are implemented and enforced indirectly, by requiring that the Member States of the Union enact legislation meeting the directive's requirements There is also a separate directive EU on the Regulation of Hazardous Substances (RoHS). Similar to the California law, the EU will require that lead, mercury, cadmium, hexavalent chromium, and two classes of flame retardants be replaced by other substances in electrical and electronic equipment by July 1, 2006. The directive provides a list of exemptions, however, including use of lead in the glass of cathode ray tubes and in solder, mercury in fluorescent lighting, and lead as radiation protection. In addition, the prohibited substances may continue to be used in spare parts for equipment that was placed on the market before July 1, 2006. Issues for the Subcommittee How does the Federal government and/or states define electronic waste and do they consider it an environmental hazard? Since many of these electronics items travel in interstate commerce, should the Federal government take a more elevated role? If so, what should that role be? What should the private and public sector do to address electronic waste? What responsibilities should all stakeholders bear? What are future issues that are important in dealing with electronic waste? Please contact Jerry Couri, Tom Hassenboehler, or Mark Menezes with the House Energy and Commerce Committee at 5-2927 for further information on this hearing.