California Department of Resources Recycling and Recovery (CalRecycle) 

Electronic Waste Management: Implementing the Electronic Waste Recycling Act of 2003

Frequently Asked Questions: Collector and Recycler Net Cost Reporting

Frequently asked questions and answers related to the annual covered electronic waste (CEW) Net Cost Report, as compiled by the California Department of Resources Recycling and Recovery (CalRecycle).

Who is required to submit a net cost report and what is the deadline?

All approved collectors and approved recyclers active at any time during the reporting year must submit an annual net cost report to CalRecycle. The report is due by March 1.

Where can I obtain guidance on completing the net cost report?

The forms that have been used to submit the report in past years are available on CalRecycle’s Net Cost page. CalRecycle will allow Collectors and Recyclers to submit their reports via CalRecycle website. Details of that process will be emailed to approved participants. Additionally, a guide with specific instructions will also be emailed.

What must the net cost report include?

Per Title 14, California Code of Regulations (CCR), Section 18660.10(d), the annual net cost report must include (among other requirements):

  • An annualized summary of the net revenues, costs and net costs (costs minus revenues) of covered electronic waste (CEW) recovery and/or CEW recycling;
  • Total annualized revenues excluding recovery and recycling payments received from CalRecycle, plus a list of the types of revenues included;
  • Total annualized costs, plus a list of the types of costs included; and
  • The net cost per pound of CEW recovery and the net cost per pound of CEW recycling.

What documentation is required to be maintained?

The net cost reports submitted to CalRecycle must be supported by detailed documentation maintained at the approved collector or recycler's place of business.

Approved collectors must maintain records on the costs, revenues and net costs associated with the collection, transportation and disposition of all CEWs handled (14 CCR 18660.20(j)(3)).

Approved recyclers must maintain records on the net costs associated with the disposition of all CEWs handled, the net costs of accepting the transfer of CEWs, the net costs of each cancellation method used, and any additional administrative costs of providing recovery payments to approved collectors (14 CCR 18660.21(I)(5)).

Do net cost reports need to cover recovery and recycling separately?

Yes. Approved collectors must maintain records and report net costs associated with CEW recovery. Approved recyclers must maintain records and report net costs associated with CEW recycling. Approved recyclers who are also approved collectors must maintain records and report net costs separately for CEW recovery and for CEW recycling activities.

Why is CalRecycle requiring this information, and how will it be used?

CalRecycle will analyze and compile information from the net cost reports in order to evaluate the need to adjust payment rates for CEW recovery and recycling operations.

Does CalRecycle intend to review or audit net cost documentation?

Yes. As part of CalRecycle's analysis of costs, CalRecycle or its agents will visit a sample of approved collectors and recyclers to review and/or audit their net cost documentation.

How can the specific costs of recovering or recycling CEWs be separated from the costs of other, unrelated business activities?

CalRecycle recognizes that allocating some business costs to CEW recovery or recycling may be challenging if your organization handles other types of waste materials in addition to CEWs or is engaged in additional business activities unrelated to collection and recycling.

CalRecycle anticipates allowing a range of cost allocation methods, as long as they reflect an adherence to generally accepted accounting principles and standard cost accounting methods, which are intended to accurately document the actual costs of collecting and recycling CEWs as specified in regulations.

How should a collector account for payments made by a recycler above the standard recovery payment of $0.18 per pound?

Any payments above the standard recovery payment rate should be reported as revenue.

The approved collector is responsible for costs incurred for collecting, consolidating and transporting CEW to the recycling facility (see Public Resources Code section 42477). If the approved recycler pays any of the costs of an approved collector such as boxes, stretch wrap, or transportation to the recycler’s facility, how should these be accounted?

According to statute, the recovery payment is intended to reimburse the collector for having incurred certain transportation costs. However, if the recycler provides these services to an approved collector, the value of those services will be reflected in lower transportation costs reported by the collector.

What have been the most common problems with these reports in previous years?

  • Late or non-submission of net cost report. A report is required if a collector or recycler has been approved to participate in the system at any time in the reporting year, even if no CEW was handled. CalRecycle may revoke or suspend approval of a collector or recycler for failure to submit a net cost report.
  • Wrong person signs the document. The net cost report must be signed by the person so authorized in the collector’s or recycler’s approval application.
  • Incomplete information (e.g., missing weight data and omitted costs or revenues) or incorrect information (weights and costs associated with electronic wastes other than CEW).
  • Business changed address, authorized personnel or contact information without sending required update to CalRecycle per CCR section 18660.18. CalRecycle may revoke or suspend approval of a collector or recycler for failure to notify CalRecycle of changes to information contained in the approval application.
  • Change of ownership without sending required update to CalRecycle per CCR section 18660.18.

How must reports be submitted?

CalRecycle has provided standardized forms in the past to assist approved collectors and recyclers in fulfilling net cost reporting requirements. In past years, reports were required to be submitted in writing on or before March 1. CalRecycle now allows Collectors and Recyclers to submit their reports via the Covered Electronic Waste Payment Information System (CEWIS). Details of that process will be emailed to approved participants. The currently available forms can be used to compile the information necessary to complete the report.

How can a collector or recycler get more information and/or help?

General information on the California Electronics Recycling Act of 2003 is available through CalRecycle's website at: www.calrecycle.ca.gov/Electronics/Act2003/. CalRecycle will maintain an up-to-date list of Frequently Asked Questions and Answers related to the CEW Net Cost Report on this website.

Regulations covering the net cost reporting requirement (14 CCR 18660.10) and CalRecycle's authority to conduct audits (14 CCR 18660.9) are available online here.

For further information and assistance regarding the net cost report contact CalRecycle's electronic waste recycling program staff by phone (866) 218-6103 or by e-mail (ewaste@calrecycle.ca.gov).

As CalRecycle, in consultation with the Department of Toxic Substances Control (DTSC), works to implement this important legislation, more information will be available through this website. Note that any guidance provided by CalRecycle should not substitute for careful reading of the original statute or subsequent regulations. Interested parties are encouraged to check back often, or subscribe to an email newsletter to be kept apprised of developments and events.

Net Cost Reporting | Collector and Recycler Information

Last updated: December 23, 2015
Electronic Discards http://www.calrecycle.ca.gov/Electronics/
Contact: EWaste@calrecycle.ca.gov (916) 341-6269