Electronic Product Management

California E-Waste Updates:
October 5, 2006

Dear Electronic Product Stakeholder:

This electronic newsletter is an update on the implementation of California`s Electronic Waste Recycling Act of 2003 and other electronic waste (e-waste) management developments in California.

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In this issue:

PERMANENT REGULATIONS UPDATE

REVIEW AND VERIFICATION OF NET COST REPORTS

APPROVAL REVOCATIONS AND SUSPENSIONS

APPROVAL RENEWALS IN PAYMENT SYSTEM

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#### Permanent Regulations Update ####

To implement certain provisions of the Electronic Waste Recycling Act of 2003, the California Department of Resources Recycling and Recovery (CalRecycle) adopted on July 18, 2006, permanent regulations that will replace the existing emergency regulations upon approval by the Office of Administrative Law (OAL). These regulations primarily apply to the covered electronic waste (CEW) recovery and recycling payment system.

Compilation of the rulemaking package has taken a little longer than initially expected. It is now anticipated that the rulemaking package will be transmitted to OAL in the next week or so. OAL then has 30 days to review the package for completeness before approving the new regulations and the regulations become effective.

The CIWMB will be providing guidance through this newsletter and other media about new requirements contained in the permanent regulations. However all participants in the CEW system should take the time to thoroughly review and prepare for the new regulations in advance of their effective date.

Key changes from the existing emergency regulations include:

- Enhanced source documentation requirements for CEW transfers of five or more
- Expanded allowance for certain source-anonymous CEWs
- Limitations on payment claims requiring all CRT glass to be shipped

Program staff is currently revising the various forms the CIWMB provides to participants as tools to comply with payment system rules (collection logs, transfer receipts, claim forms, etc.). These will be available for use by the time the new regulations are in place. The application for approval (Form 186) has been revised already to better allow for approval renewals and to accommodate provisions of the new regulations. (Please see final item in this newsletter.)

Information on the new regulations can be found at:
http://www.ciwmb.ca.gov/Rulemaking/EWaste/

#### Review and Verification of Net Cost Reports ####

The CIWMB wishes to thank those CEW payment system participants who submitted the annually required Net Cost Report by the March 1 deadline, and gently admonish those that submitted the report after the deadline. As for those that never submitted, please see the next item in this newsletter.

Meanwhile, the CIWMB`s contractor, R.W. Beck, will be contacting a cross section of participants in the CEW recovery and recycling payment system to clarify and/or verify information contained in the Net Cost Reports submitted earlier this year. The CIWMB hired R.W. Beck to assist in the analysis of the Net Cost Reports with the aim of informing the CIWMB about the need for adjustments to the advance recycling fee and/or the standard payment rates for collection and recycling activities. (The CIWMB acted in June of this year to keep both the fee and payment rates unchanged.)

As part of their tasks, Beck is reviewing a statistically representative sample of reports to verify that they are complete and accurate. While most of the selected reports will be reviewed for clarification and, if needed, adjustment via phone, email or fax communication, a small number of reports will be selected for verification through on-site review of supporting documentation.

All approved collectors and recyclers will again be required to submit Net Cost Reports by March 1, 2007. For reference, the Net Cost Reporting Guide and associated forms from the most recent report (covering 2005 activities) are available on the CIWMB website at:
http://www.ciwmb.ca.gov/Electronics/Act2003/Recovery/NetCost/Default.htm

The CIWMB will be refining the Net Cost Reporting process with an eye toward improving the quality of data captured, and will once again be offering training on the Net Cost Reporting process via a series of "webinars" in January 2007. Stay tuned for further announcements.

#### Approval Revocations and Suspensions ####

In August, the CIWMB revoked approvals from nearly two-dozen collectors who failed -- despite multiple contacts and outreach efforts -- to submit the required annual Net Cost Report. The amount of time spent attempting to bring participants into compliance with this basic requirement could be justified only because the CEW program was in its infancy. Future disciplinary actions are likely to be undertaken much more swiftly.

The CIWMB also recently temporarily suspended a recycler for approximately three weeks after a routine DTSC inspection uncovered environmental violations. The recycler`s approval status was restored once DTSC determined that the identified violations had been remedied. During the time of suspension, the recycler could not process (cancel) any CEW for which they would claim payment.

Only those participants in the CEW payment system whose status appears on the web-based list of approved collectors and recycler should be considered active and in good standing. That list can be found here:
http://ciwmb.ca.gov/Electronics/Act2003/Recovery/Approved/

#### Approval Renewals in Payment System ####

Approval in the CEW recovery and recycling payment system remains valid for two years, provided that the information in the original application remains unchanged, and the participant continues to meet and fulfill regulatory requirements of the payment system and to operate in conformance with Department of Toxic Substances Control (DTSC) requirements.

Those system participants whose approvals were effective on January 1, 2005, should be taking steps now to renew that approval. To renew approval, a collector or recycler should simply re-apply to the CIWMB. Please refer to the regulations governing the program (14 CCR 18660.16) for renewal details.

As a courtesy, the CIWMB indicates on the web-based listing for each approved collector and recycler a "Renewal Date", which corresponds to 90 days before the current approval expires. Again, the list of approved participants can be found here:
http://ciwmb.ca.gov/Electronics/Act2003/Recovery/Approved/

As a result of the pending permanent regulations, the standard application form has undergone some minor modifications. Note: Applicants who have already renewed will not be required to reapply under the revised form; however some supplemental organizational documentation may be sought by the CIWMB.

The application form and other useful documents can be found at:
http://www.ciwmb.ca.gov/Electronics/Act2003/Recovery/Application/

For those participants who are not due to renew for a while, it is imperative that all application information be kept up to date with the CIWMB. Failure to do so can slow down payment processing and even result in revocation of approval. All participants are urged to review their own copy of the application (Form 186) originally sent to the CIWMB and determine if any information requires updating.

Note that it is the responsibility of the participant to initiate updates based on changed conditions.

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Please note that e-mail correspondence with the State of California related to e-waste management in general, and implementation of the Electronic Waste Recycling Act in particular, should be directed to ewaste@calrecycle.ca.gov.

Also note that an archive of past distributions of this newsletter is available at:
http://www.ciwmb.ca.gov/Electronics/Act2003/Stakeholder/Updates/

Thank you for your interest in shaping California`s e-waste management future.

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