Department of the Environment

MARYLAND’S ELECTRONICS RECYCLING

(“eCycling”) PROGRAM

Presented by Hilary Miller

Metro Washington Council of Governments

Recycling Committee Meeting

March 20, 2008

Washington, DC

Third State with eCycling Law• MD was the third state to pass an eCycling law.

• There are now 10 states with eCycling laws: CA, ME, MD, WA, MN, OR, TX, CT, NC, NJ.

• VA and WV have passed bills - need Governors’ signatures. WV similar to MD.

• Ours is not an advanced recovery/recycling fee (ARF) or stakeholder responsibility law – it is a manufacturer responsibility law (these type are increasing in frequency).

Now for a little history…..

Early Days of eCycling* EPA Region 3 eCycling Pilot

• MD was a major contributor to EPA Region 3 eCycling Pilot Project (10/2001 – 12/2002).

• Project Goal: to develop an economically and environmentally sustainable collection, reuse, and recycling system for electronics based on the principle of shared responsibility among business (electronics manufacturers and retailers), government, and consumers.

Early Days of eCycling* EPA Region 3 eCycling Pilot

• Project Partners:

– EPA Region 3;

– PA, DE, WV, VA, DC, MD environmental protection agencies;

– Sony, Panasonic, Sharp, Envirocycle, Inc., Waste Management Asset Recovery Group, Elemental, Inc., the Electronic Industries Alliance (EIA), the Polymer Alliance Zone of West Virginia.

– EIA contributing members: Canon, Hewlett-Packard, JVC, Kodak, Nokia, Panasonic, Philips Consumer Electronics North America, Sharp, Sony, and Thomson Multimedia.

Early Days of eCycling* EPA Region 3 eCycling Pilot

• Provided brainstorming, consistent message, lessons learned, and jump start for MD.

• Shared resources were essential for the success of this project; States and EPA had little funding.

• Also, as part of the Project, EPA issued a final rule exempting cathode ray tubes (CRT’s) and CRT glass destined for recycling and reuse from regulation as hazardous waste.

Early Days of eCycling* EPA Region 3 eCycling Pilot

• Project kick-off at Scarboro Landfill in Harford County on October 27, 2001; 150 participants; 15,980 lbs. of electronics received for recycling.

• Total of 21 one-day events and 2 two-day events held; one permanent collection facility (Wicomico County) established; over 5,722 participants in MD during Pilot.

• Over 250 tons of electronics collected until end of Project December 31, 2002.

Additional State Efforts-Before Legislation

• After the end of Region 3 eCycling Pilot Project, MDE provided funding support for additional electronics recycling activities with $79,000 in unspent capital projects monies.

• Counties and municipalities hosted events over 4 years through a 26/74 % to 36/64% cost share arrangements with the State.

Additional State Efforts-Before Legislation

• 37 recycling opportunities across MD through:

– 34 one-day events;

– two (2) two-day events; and

– one (1) curbside collection.

• Nearly 1.2 million lbs. of electronics recycled.

• Maryland Environmental Service, another State agency, managed these events through its contractor.

Legislative Action

• eCycling bills were proposed in 2001, 2003 and 2004, but failed.

• In 2004, three bills were proposed – House Bills 109, 111, and 328.

• Stakeholders expressed concerns with all three and lobbied to have the bills consolidated into one.

• House Bill 109 resulted.

Legislative Action* Electronics Recycling Workgroup

• HB 109 required MDE to convene a workgroup to study funding and implementation of an electronics waste collection and recycling system in Maryland.

• Workgroup consisted of representatives of:

– Local governments;

– Environmental groups;

– Electronics manufacturers, retailers, and recyclers;

– Solid waste industry; and

– Members of the General Assembly.

Legislative Action*Electronics Recycling Workgroup

• Workgroup met in Fall 2004 and considered the following:

– Methods of funding the system;

– Locations for convenient and accessible collection facilities for all MD citizens;

– Methods of collecting, packaging, and transporting electronic wastes from collection facilities to recycling facilities; and

– Economic development opportunities arising from the collection system.

Legislative Action*Electronics Recycling Workgroup

• Workgroup reporting deadlines to Governor and General Assembly:– December 31, 2004 – Recommendations for funding an

electronic waste collection system.

– July 1, 2005 – Findings and recommendations for establishment and implementation of an electronic waste collection system and recycling of electronic waste by January 2006.

Legislative Action* Electronics Recycling Workgroup

• Workgroup failed to reach consensus on issues.

• MDE December report to Governor and General Assembly reflected divergent views (largely advanced recycling fee vs. stakeholder responsibility) and recommended waiting for national solution.

• Determined no legislation would be proposed by the Ehrlich Administration in 2005.

Legislation 2005• Legislators expressed frustration with outcome of

Workgroup and proposed legislation (House Bill 575) in 2005 General Assembly session.

• Workgroup stakeholders were involved in revisions of bill, which resulted in final version of HB 575.

• Bill passed on final day of legislative session; signed by Governor Ehrlich April 2005; effective July 1, 2005.

Legislation

• Note – there has been a change to the original law. Areas highlighted in GREEN were in the original legislation and are in the current legislation.

Statewide Computer Recycling Pilot Program – OLD * Major Provisions

• Defined computer, manufacturer, and takeback program – covered desktop personal computers, laptop computers, and monitors.

• Required computer manufacturers to register and pay a fee to MDE by January 1, 2006 or could not sell computers in MD.

• Fee was $5,000 1st year; $500 2nd year if manufacturer had takeback program or $5,000 without takeback program.

Statewide Computer Recycling Pilot Program - OLD* Major Provisions

• Funding to be used to provide grants to counties and municipalities for computer recycling activities and MDE Office of Recycling.

• Requires counties to address computer recycling separately in their 10-year Solid Waste Management Plans (SWMP’s).

• Fees had to be used by June 30th each year or revert to State General Fund.

Statewide Computer Recycling Pilot Program - OLD* Major Provisions

• Takeback program:

– must be free to returner;

– must include a toll free number or website address for information;

– method for collection and recycling largely left to manufacturer;

– allows contracts with recyclers, other manufacturers, local governments or others; and

– is for manufacturer’s products only.

Statewide Computer Recycling Pilot Program - OLD* Major Provisions

• Requires a report to Governor and General Assembly by 12/08 on program and cathode ray tubes (CRT’s).

• Program was to end December 31, 2010 unless action taken by Legislature.

Statewide Computer Recycling Pilot Program – OLD

Implementation • Approximately 250 manufacturers were sent letters requesting

contact information for future mailings July 2005.

• 160 manufacturers were sent registration forms and requests for fee payment November 1, 2005.

• Anticipated revenue from fees was $500k – 750k.

• 37 manufacturers registered; $185,000.

Statewide Computer Recycling Pilot Program – OLD* What Worked?

• Simple law/concept.

• Provides State/counties funding source for computer recycling – none before.

• No burden on retailers or recyclers – good for local businesses.

• Includes a computer takeback provision to encourage eCycling.

Statewide Computer Recycling Pilot Program - OLD

* Challenges to Implementation

• Some definitions are vague.

• Registration fee may be insufficient to support program.

• Only computers, not all electronics, addressed.

• Counties must address computer recycling in their SWMP in order to be eligible for grants.

Statewide Computer Recycling Pilot Program – OLD

* Challenges to Implementation

• Registration fee totals were not known until January and fees had to be expended by June 30th each year.

• Due to registration fee structure, funding could have been significantly reduced after first year.

• Maryland law may need revisions if Federal legislation is enacted.

Statewide Computer Recycling Pilot Program - OLDImplementation

• FY06 - 37 manufacturers registered/$185,000.

• Awarded contracts for outreach and education campaign and resident survey in May 2006.

• Aug-Sept 2006 – back to school TV/radio campaign; also airing in some areas now; commercials available to counties and others.

• WV has redubbed and aired MD’s TV commercial.

Statewide Computer Recycling Pilot Program - OLDImplementation

• Resident survey results from summer 2006 finalized early May 2007– interesting findings.

• Total of $213,500 in registration fees received in FY07.

• Invitations to 23 counties and 157 municipalities to apply for grants sent 4/17/07; closing date for applications was 5/18/07.

• 14 applications received; grants totaling $190,000 to 4 municipalities and 13 counties awarded end of June 2007.

Statewide Computer Recycling Pilot Program - OLDImplementation

• Many computer manufacturers, including some registered in FY06 and FY07, are out of compliance.

• MDE is working to bring these companies into compliance.

• Adding FAQ’s and registered manufacturers on website, as needed.

• Some manufacturers are investigating establishing takeback programs in MD.

House Bill 488 – New Statewide Electronics Recycling Program

Major Provisions

• Changes definition of manufacturer – brand owner of a covered electronic device.

• Defines covered electronic device and adds video display devices to scope.

• Adds $2 million cap to Recycling Trust Fund before reversion to State General Fund.

• Increases initial registration fee to $10,000.

House Bill 488 – New Statewide Electronics Recycling Program

Major Provisions, continued• Defines retailer and provides that retailer cannot sell a

new covered electronic device unless the manufacturer is registered.

• Provides penalty to retailer of $500 per violation after 3 warnings, not to exceed $5,000.

• Enforced by Comptroller; fines to Recycling Trust Fund.

• Makes law permanent.

House Bill 488 – New Statewide Electronics Recycling Program

Implementation• Continue to encounter difficulty obtaining video

display device manufacturers’ contact information.

• Letters notifying of bill sent to manufacturers October 1, 2007; letters requesting registration and fee sent December 12, 2007.

• Have received numerous inquiries, but not nearly as many as with prior law.

House Bill 488 – New Statewide Electronics Recycling Program

Implementation

• 60 manufacturers registered for CY08.

• 83 total registered at some point.

• ~ $500,000 in fees in FY08 to date.

• Steps toward enforcement action will be coming for non-compliant manufacturers.

TELEVISIONS & THE DIGITAL CHANGE

• MDE expects that any increase in televisions for recycling from purchase of digital TV’s will be easily managed with existing infrastructure.

• MDE reminded counties of this change and possible implications in its regular meeting in January 2008; also provided web resources.

• Counties did not anticipate problems.

NATIONAL ACTIVITIES

• MDE participates in national workgroup to establish certification process for electronics recyclers; also participates in national groups for states to discuss electronics recycling and legislation.

• EPA Resource Conservation Challenge (RCC) - eCycling one of 4 national issues; MDE participates in regular Region 3 calls.

NATIONAL ACTIVITIES, continued

• National Conference of Commissioners on Uniform State Laws study group to determine if disposal of electronic products is an issue for developing uniform state law – on hold.

• Federal legislation concept paper issued 2/22/08; addresses financing program, handling, management, recycling, and export of covered electronic devices, roles of states and EPA, and performance requirements.

Current Status of MD eCycling• Several large electronics recyclers located in MD

handle majority of materials collected.

• No laws specifically regulating electronics recyclers.

• No electronics disposal ban in Maryland.

• Maryland citizens are strong recyclers and demand electronics recycling services.

Current Status of MD eCycling

• Additional legislation in 2009 and beyond possible – none planned by Administration at this time.

• Drafting regulations on hold at this time; need to be evaluated during first year of HB 488 implementation.

Maryland eCycling Successes• 12,920 tons of electronics have been collected

throughout State since 2001 through 18 permanent collection sites and 106 events.

• Establishment of permanent collection facilities continues to increase.

• Electronics collection Statewide increased 1.83 times from 2005 to 2006 (law became effective 7/1/2005); 2006 total 6.3 million pounds; 2007 total 8.7 million pounds.

Maryland eCycling Successes

• 17 of MD’s 24 counties have voluntarily established permanent collection facilities.

• Current permanent collection facilities serve approximately 96% of State’s population!

LEARN MORE ABOUTeCYCLING IN MARYLAND AT:

www.mde.state.md.us/ecycling

1800 Washington Boulevard | Baltimore, MD 21230-1719410-537-3000 | TTY Users: 1-800-735-2258

www.mde.state.md.us

Maryland Department of the EnvironmentWaste Management AdministrationRecycling and Operations Program

For more information contact:Hilary Miller

410-537-3431hmiller@mde.state.md.us