Introductions

1
Introduction
A presentation and dialogue with the Northwest
Product Stewardship Council on Product
Stewardship Electronics

• Introductions
• Agenda review
• NWPSC mission and definition of product
  stewardship
• Relevance to upcoming legislation

2
OPEN FORUM

• Audience concerns and major issues with
  electronics
• What information will be helpful to get from
  workshop
• How are electronics currently handled in
  individual jurisdictions?

3
TOXICITY

• Toxic substances in electronics
• Toxicity in all phases of product life
• Production mining and manufacturing
• Use off-gassing of flame retardants
• Recycling and disassembly potential for worker
  exposure and toxic releases
• Disposal lead, copper, mercury, etc.

4
REGULATIONS
Federal and State Hazardous/Dangerous Waste
Regulations

• Definition and responsibilities of Dangerous
  Waste Generators
• Landfill owner or operator liability
• Enforcement
• CRTs designate as Dangerous Waste
• Ecologys Interim Enforcement Policy on CRTs
• Generators pay

5
REGULATIONS
Local Rules and Regulations

• Local governments may choose to regulates Small
  Quantity Generator and/or Household Hazardous
  Wastes (SQG or HHW)
• Examples of local regulations
• Disposal ban issues need for alternative
  solutions
• Local governments and rate/tax payers pay

6
OPEN FORUM

• Questions about toxicity and regulations and how
  they are applied
• Cost issues who pays and how much?

7
The Case for Product Stewardship
8
Electronics Product Stewardship
Electronics Product Stewardship
Manufactured Globally
9
Manufactured Globally
Product Stewardship The Old Edition
Manufactured Globally
No economic incentive for manufacturers to
minimize environmental Impacts.
10
Disposed Locally
Product Stewardship The Old Edition
Disposed Locally
GO DIRECTLY TO LANDFILL. DO NOT PASS GO.
11
Disposed Locally
Product Stewardship The Old Edition
Disposed Locally
Should local governments and rate payers cover
the costs of handling electronic wastes?
12
Linear Lifecycle
Product Stewardship The Old Edition
The Linear Lifecycle of Consumer Goods
13
The New Edition
14
Create Economic Incentives
Create economic incentives for manufacturers to
redesign products to make them greener.
15
Closed Loop Lifecycle
The Closed Loop Lifecycle of Consumer Goods
16
Japanese Model
JAPANESE MODEL Mandated Responsibility

• Manufacturers set front-end fees for end-of-life
  management
• Retailers collect fees
• Fees cover orphan historic waste
• Consumers return products to retailers or
  municipalities
• Manufacturers compete to lower fees
• Manufacturers and recyclers are financially
  linked

17
Old/New Editions

• Local governments manage product end-of-life.
• Rate payers and local government cover product
  end-of-life costs.

• Manufacturers responsible for product take-back.
• Costs of product end-of-life are included in
  price.

18
Old/New Editions

• No incentives to alter current design.
• Continuing toxic legacy.

• Incentives to redesign products to make them
  greener.
• Upstream thinking.

19
PRODUCT STEWARDSHIP DISCUSSION

• Discussion of product stewardship principles
• Financing issues who pays
• Design driver opportunities

20
WHAT LOCAL GOVERNMENTS CAN DO

• Locally managing electronics using product
  stewardship principles
• The case against government-funded collection
  programs
• Facilitating partnerships
• Helping organize events or activities
• Education
• Recyclers pledges and environmental reviews of
  vendors
• End-of-life or back-end fees
• Green purchasing and procurement specifications

21
OPEN FORUM

• Discussion of program options
• Considerations and opportunities specific to
  Eastern Washington governments
• Leveraging existing programs and contacts in
  other areas

22
STATE AND NATIONAL ACTIVITIES

• NEPSI dialogues
• 2002 California legislation Governors veto
• Potential 2003 legislation in Washington
• NWPSC key issues
• Legislations in other states
• NGO model legislation

23
OPEN FORUM

• Questions about state and national activities
• Participant perspectives on state legislation
• Closing comments

24
FINANCE ISSUES

• Funding Mechanisms
• General Tax Base/Garbage Fees
• End-of-Life Fees
• Advanced Fee (visible)
• Advanced Fee (internalized)
• Other Discussion Points
• Cost-internalization
• Design incentives

• Themes
• Where do funds originate?
• Rate payer vs. consumer
• Retailer vs. manufacturer
• What do funds cover?
• Collection, transportation,
• recycling
• Base level of service/collection
• Orphan historic waste
• Where does the money go?
• Are manufacturers individually or collectively
  responsible via TPO?

25
RETAILER ISSUES

• Existing relationships with haulers, not
  recyclers
• Resistant to visible recycling fee at
  point-of-sale

• Considerations
• Latecomers to dialogue
• Not expert on regulations
• Not attuned to environmental ethics and product
  stewardship

• Opportunities
• Consumer location of choice for recycling
• Front-line contact with consumers on product
  stewardship
• Clout with manufacturers
• Already deal with electronic waste

26
RETAILER ISSUES

• Barriers
• Small Retailers
• Lack of space
• Lack of clout with recyclers
• Cant absorb dumping costs
• Large Retailers
• Marketing controlled by corporate
• Focus on high-volume sales
• Not set up to handle e-waste
• Not set up to handle trade-in programs

• Advantages
• Small Retailers
• More likely to accept trade-ins
• Repair/re-market used goods
• Localized marketing/promotions
• Direct commitment from owners
• Large Retailers
• Large advertising budgets
• Clout with manufacturers
• Foot traffic and in-store ads
• Recycling as customer service
• Can track recycling programs
• Pickup/recycling option with product delivery

27
MANUFACTURER ISSUES

• Todays electronics designed to be cheap
  disposable
• Manufacturers still recommend donation as a
  solution.

• Considerations
• Only manufacturers can provide green design, and
  pre-paid recycling fees.
• Current programs are unwieldy mail-back versions.
• Manufacturers like government solutions.
• Profit motive is preeminent.

• Opportunities
• Early involvement in product stewardship
  dialogue.
• Understand product stewardship concepts.
• Familiarity with regulations.
• Relationships with retailers and corporate
  customers.

28
MANUFACTURER ISSUES

• Barriers
• Design for the environment is not cheap.
• Narrow profit margins
• Dont want to fund legacy piles
• Want to keep product stewardship costs low via
  govt involvement.
• Dont want to pay for collection or
  transportation of e-waste
• Dont want to set precedents that will affect
  other consumer electronics.

• Advantages
• Can work with retailers on co-op advertising and
  promotions.
• Heighten positive public image.
• Public/private partnerships.
• Design for the environment to lower recycling
  materials costs.
• Support product stewardship now to avoid future
  legislation.

29
RECYCLER ISSUES

• Considerations
• Expense has discouraged investment in e-waste
  recycling without ample volume.
• Recyclers dont necessarily promote product
  stewardship.
• Recyclers should be audited and certified.
• Need viable business plan to ensure profitability.

• Opportunities
• Recycler interest has peaked with new regulation
  and legislation.
• Have already participated in some e-waste pilot
  programs.

30
RECYCLER ISSUES

• Barriers
• Legislation/regulation not universal
• Speculative, risky endeavor
• High start-up costs
• Haz-waste regulation compliance
• High transportation costs
• Need to invest in new equipment as technology
  changes
• Little recycling input in design decisions made
  by manufacturers
• Disassembly schematic not easily attainable
  from manufacturers

• Advantages
• Growth industry driven by new regulations and
  legislation
• Pre-paid fees will guarantee revenues
• Potential contracts with large retailers and
  corporate customers
• Government incentives
• Synergy with waste hauling interests and customer
  bases
• Potential for future clout to drive electronics
  design decisions

31
RECYCLING PROGRAMS

• Charitable Donation
• Charities
• Schools
• Senior Citizen or Low-Income
• Transfer Stations Landfills
• Arlington Transfer Station
• Manufacturer Mail-Back
• Dell, Gateway, IBM, HP
• Retail Trade-In
• CompUSA, Staples

• Special Recycling Events
• Best Buy, Minnesota Plug Into
  Recycling, Tacoma/Pierce County electronics
  recycling events
• Reuse Recycling Networks
• Computer Recovery Project, Take It Back
  Network
• Retail Collection
• RE-PC
• Collection Boxes at Retail
• Green Disk, RBRC, Verizon ATT

32
REGULATING E-WASTE
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