State of Affairs in
Electronics Recycling
Advancing Electronics Recycling
in the Midwest
December 11, 2002
Resource Recycling Magazine
Outline
Description of the issue
 Current status
 Four prevailing myths
 Nine issues and forecasts
 Discussion

Resource Recycling Magazine
Description of the Issue
E-scrap is a sleeper waste
 Rising attention to e-waste issues
 Concern over loss of resources:
-- base metals (copper, aluminum, etc.)
-- precious metals (gold, silver,
palladium, etc.)
-- plastics
-- glass

Resource Recycling Magazine
Description of the Issue

Concern over toxicity, especially from
the lead used in CRTs:
-- 4 to 8 pounds of lead in TVs and
computer monitors
-- largest single source of lead in
municipal solid waste (about 30%)
-- funnel glass can contain as much as
75 ppm of leachable lead
Resource Recycling Magazine
Description of the Issue

Magnitude of the problem:
-- two million tons per year of e-scrap
-- 20 million PCs become obsolete per
year
-- e-scrap is accumulative
-- low recovery rate from homes, small
businesses, etc.
Resource Recycling Magazine
Current Status

About 500 U.S. firms provide e-scrap
recycling services:
-- brokering
-- sale of whole operating units
-- refurbishing
-- disassembly to remove reusable parts
-- disassembly to capture recyclables
-- shredding
Resource Recycling Magazine
Current Status

Barriers exist in e-scrap recovery:
-- scrap moves to cheapest reclaimer
-- declining value of scrap (less gold,
silver, etc.)
-- plastics are a problem for many
reclaimers
-- unstable political and regulatory
climate inhibits investment
Resource Recycling Magazine
Current Status

Institutional/corporate recovery:
-- large generators with high-end
equipment are fairly well served
-- large-scale international reuse market
seeks this scrap
-- yields from demanufacturing are high
(hard drives, circuit boards, etc.)
Resource Recycling Magazine
Current Status
Smaller generators are provided feebased service
 Capture of residential e-scrap requires
governmental involvement
 E-scrap is the waste of the decade
(beverage containers in the ’70s, paper
in the ’80s, organics in the ’90s)

Resource Recycling Magazine
Current Status

Local collections are increasing:
-- in about 1,000 communities in 2002
-- typically one-day event
-- about one percent participation
-- at a cost of about $300 per ton
-- programs tend to be in suburban
communities
-- trend toward permanent sites
Resource Recycling Magazine
Current Status

Rising involvement of OEMs
-- many already operate take back of
leased units
-- many are moving into fee-based
recovery systems (Hewlett-Packard,
IBM, Dell)
-- others participate in local collection
events (Panasonic, Sharp, Sony)
Resource Recycling Magazine
Prevailing Myths

Myth 1: Rising volumes
-- computer sales declined last year and
also this year
-- effect of Y2K investments
-- slow down in introduction of new
software and hardware
-- consumer satisfaction with existing
systems
Resource Recycling Magazine
Prevailing Myths

Myth 2: Rapid technological change
-- we’ve been hearing about HDTV for
five years
-- flat panel sales are restricted by high
cost versus CRTs
-- technological change is slower than
commonly thought
Resource Recycling Magazine
Prevailing Myths
 No.
of years to attain 25% of
market
Telephone
Automobile
Airplane
Radio
Television
VCR
Microwave oven
Personal computer
Cellular phone
DVD player
Resource Recycling Magazine
Year
Years
1875
1885
1903
1906
1925
1952
1953
1975
1983
1996
35
55
54
22
26
34
30
15
15
6
Prevailing Myths

Myth 3: E-scrap management is an
immense environmental problem
-- some environmental groups overstate
the effects of e-waste disposal
-- the data in this field is very poor
-- the politics of e-waste management
have taken precedence over the
science
Resource Recycling Magazine
Prevailing Myths

Myth 4: There’s gold in garbage:
-- OEMs are putting less recoverable
materials in electronics
-- even charities do not seek most types
of obsolete working computers (those
more than three years old)
-- current reuse levels from e-scrap
collection events are about 10
percent
Resource Recycling Magazine
Issues and Forecasts: No 1
Product stewardship is the prime issue
 Take back systems operate in a number
of countries (Belgium, Japan, The
Netherlands, Norway, Sweden, etc.)
 Japan’s system will expand next year
 A European Union system will be
implemented by 2006
 Canada is moving forth

Resource Recycling Magazine
Issues and Forecasts: No. 1
The National Electronic Product
Stewardship Initiative may establish a
similar system in the U.S.
 Nearly 50 members are involved,
principally from three sectors: industry,
environmental groups, and state and
local government

Resource Recycling Magazine
Issues and Forecasts: No.1

NEPSI agreement so far:
front-end financed fee followed by cost
internalization
third-party national organization
shared responsibility
supportive federal legislation
Resource Recycling Magazine
Issues and Forecasts: No. 1

Forecast:
-- NEPSI negotiations will take longer
than planned
-- a basic agreement will be reached for
the recovery of CPUs, CRTs and TVs
– it will be a shared-responsibility model;
full producer responsibility is unlikely
in the U.S.
Resource Recycling Magazine
Issues and Forecasts: No. 2
E-waste exports are an emotional issue
 The BAN report and video were
extremely powerful
 But they over simplify the reality of escrap exports and over state the
problem
 However, e-waste generators are now
very concerned

Resource Recycling Magazine
Issues and Forecasts: No. 2

Forecast:
-- whole-unit, mixed-load shipments will
decline
-- shipments of individual scrap
materials will continue
-- domestic operations will change
-- efforts will be made to gather better
data on the extent of the problem
Resource Recycling Magazine
Issues and Forecasts: No. 3

But then, what do we really know about
current domestic operations?
-- lead glass processing concerns
-- disease from processing scrap
containing beryllium
-- crude precious metals recovery
methods
-- fly-by-night operators living off of fees
Resource Recycling Magazine
Issues and Forecasts: No. 3

Forecast:
-- certification efforts will rise (IAER
environmental audit, ISO 9000 and
14000 certification, ESM systems,
etc.)
-- some states will get involved (NC, PA)
-- this will lead to an increase in
processing costs
Resource Recycling Magazine
Issues and Forecasts: No. 4
Legislative momentum is at hand
 Major bills were considered in several
states (CA, MA, NC, NY, etc.)
 Generally focus on CRTs:
- impose a fee on sales of new CRTs - use funds to establish recovery
systems

Resource Recycling Magazine
Issues and Forecasts: No. 4

Forecast:
-- as part of a strategy to exert additional
pressure on OEMs and retailers,
several states will approve measures
-- given recent Hewlett-Packard
announcement, California will be the
principal battle ground
Resource Recycling Magazine
Issues and Forecasts: No. 5

Regulatory approaches are being
considered:
-- again, they typically focus on CRTs
-- they commonly entail adding CRTs to
universal waste rules
-- however, Massachusetts has banned
CRT disposal
-- EPA has introduced a draft regulation
Resource Recycling Magazine
Issues and Forecasts: No. 5

Forecast:
-- concern was heard that the
proposed EPA rule will increase
exports
-- thus, adoption of EPA rules will take
longer than anticipated
-- a number of states will adopt interim
rules (OR, WA, etc.)
Resource Recycling Magazine
Issues and Forecasts: No. 6
Prison labor concerns will be in the
news this year
 Some consider e-scrap prison factories
to be “high-tech sweat shops”
 That said, UNICOR is a major player in
the reclamation industry

Resource Recycling Magazine
Issues and Forecasts: No. 6

Forecast:
-- this issue will not garner the attention
generated by the e-waste export
issue
-- pressure will be exerted on e-scrap
generators to avoid the use of prison
factories
Resource Recycling Magazine
Issues and Forecasts: No. 7
Current collection and processing
methods are inadequate
 Recovery levels are low and costs are
high
 Processing fees are moving upwards
 With so much up in the air, investment
levels remain weak

Resource Recycling Magazine
Issues and Forecasts: No. 7

Forecast:
-- we’ll plod along for another few years
-- permanent collection facilities will
grow in number
-- states will increase their role, through
grants (FL, IA, IN, NE, NY, OH) or
statewide coordinated campaigns
(CO, MD)
Resource Recycling Magazine
Issues and Forecasts: No. 7

Forecast:
-- the product stewardship end game in
the U.S. and Canada will determine
the ultimate collection and
processing system
-- the final system will be unlike today’s
Resource Recycling Magazine
Issues and Forecasts: No. 8
The marketplace will change
 Many folks are watching e-scrap issues
for possible business opportunities
 Forecast:
-- industry consolidation will occur
-- just as it has in electronics
manufacture

Resource Recycling Magazine
Issues and Forecasts: No. 8

The majority of the market for some
electronics is held by just two firms:
-- PCs: Dell, H-P/Compaq
-- Cell phones: Nokia, Motorola
-- Fax machines: Panasonic, Brothers
-- Printers: H-P/Compaq, Lexmark
Resource Recycling Magazine
Issues and Forecasts: No. 9
We may be producing ever-harder-torecycle electronics
 If OEMs are not involved in the recovery
system, they may not receive sufficient
design-for-recycling (DfR) economic
pressure

Resource Recycling Magazine
Issues and Forecasts: No. 9

Forecast:
-- a shared responsibility model will not
provide much momentum for DfR
-- however, OEMs are international
players
-- and OEMs in Japan and elsewhere
operate e-scrap processing systems
– DfR will be addressed internationally
Resource Recycling Magazine
Discussion

Contact information:
Jerry Powell, Editor
E-Scrap News
P.O. Box 42270
Portland, OR 97242
(503) 233-1305; 233-1356 fax
jpowell@resource-recycling.com
Resource Recycling Magazine