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27 Sept 2007
Update on Latest State Efforts to Regulate Electronic Waste

State efforts to regulate the disposal of electronic waste have greatly intensified this year, with Connecticut, Minnesota, North Carolina, Oregon and Texas adopting some sort of e-waste management legislation. An additional eight states - Arkansas, California, Maine, Maryland, Massachusetts, New Hampshire, Rhode Island and Washington - established similar requirements in previous years and many more are expected to follow suit in the medium term, making it increasingly burdensome for manufacturers to comply with a myriad of rules. The proliferation of various e-waste requirements at the state level showcases the importance of implementing national e-waste management standards, either through federal legislation or by promoting a national consensus between industry, consumer and environmental groups, regulators and other interested stakeholders. Individual companies could also assume a leadership role in this area by establishing recycling plans on their own initiative. For example, Sony USA recently made a commitment to take back any used electronic product with Sony's name on it, making it the first TV manufacturer in the United States to establish such an initiative.

The main features of the e-waste legislation approved so far this year are summarised below.

Minnesota

The Minnesota legislation prohibited the sale of new video display devices to retailers in the state on or after 1 September 2007 unless the VDD carries a permanently affixed and readily visible label with the manufacturer's brand and the manufacturer has filed an annual registration with the state. This registration must include (i) a list of the manufacturer's brands of VDDs offered for sale in the state; (ii) the name, address and contact information of a person responsible for ensuring compliance with the regulations; and (iii) a certification that the manufacturer has complied and will continue to comply with certain registration, reporting and recycling requirements. Beginning 1 September 2008, VDD manufacturers must submit a statement every year disclosing whether any VDDs sold to households in the state exceed the maximum concentration values established for lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ethers under the EU's regulations on the use of hazardous substances in certain electronic devices (Directive 2002/95/EC), as amended, or whether the manufacturer has received an exemption from the EU for one or more of those maximum concentration levels. Manufacturers must pay an annual registration fee of US$5,000 during the initial programme year and US$2,500 plus a variable recycling fee for each year thereafter.

The programme requires manufacturers to annually recycle or arrange for the collection and recycling of an amount of covered electronic devices equal to the total weight of its VDDs sold to households during the preceding programme year, multiplied by the share of sales of VDDs required to be recycled (this requirement applies only to VDDs received from households). This share is 60 percent during the first year of the programme and 80 percent every year thereafter. Manufacturers must also conduct and document due diligence assessments of contracted collectors and recyclers and must provide the state with contact information for a person who can be contacted regarding their recycling obligations. In addition, manufacturers must comply with various informational requirements beginning 1 September 2008.

VDDs are defined in the Minnesota legislation as televisions or computer monitors, including laptop computers, that contain a cathode ray tube or a flat panel screen with a screen size greater than nine inches measured diagonally and are marketed by manufacturers for use by households. VDDs exempted from the regulations include (i) VDDs that are part of a motor vehicle or any component part of motor vehicle assembled by, or for, a vehicle manufacturer or franchised dealer; (ii) VDDs that are functionally or physically part of a larger piece of equipment or are designed and intended for use in an industrial, commercial, library checkout, traffic control, kiosk, security (other than household security), border control or medical setting; (iii) VDDs that are contained within a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier or air purifier; or (iv) telephones of any type unless they contain a video display area greater than nine inches measured diagonally. For their part, CEDs are defined as "computers, peripherals, facsimile machines, DVD players, video cassette recorders and video display devices that are sold to a household by means of retail, wholesale or electronic commerce."

Connecticut

Connecticut will ban the sale of CEDs to retailers in the state on or after 1 January 2008 unless the CED carries a permanently affixed and readily visible label with the manufacturer's brand and the manufacturer has filed an annual registration with the state. Manufacturers must pay an annual registration fee of US$5,000 during the initial programme year and a yet-to-be-determined renewal fee during subsequent annual periods. By 1 January 2009, manufacturers will be required to participate in a state-wide programme to implement and finance the collection, transportation and recycling of CEDs, but they may at the same time participate in a private electronics recycling programme.

CEDs are defined as desktop or personal computers, computer monitors, portable computers, CRT-based televisions and non-CRT-based televisions or any other similar or peripheral electronic device sold to consumers. Excluded from this definition are (i) electronic devices that are a part of a motor vehicle or any component parts of a motor vehicle assembled by, or for, a vehicle manufacturer or franchise dealer, including replacement parts for use in a motor vehicle; (ii) electronic devices that are functionally or physically a part of a larger piece of equipment designed and intended for use in an industrial, commercial or medical setting, including diagnostic, monitoring or control equipment; (iii) electronic devices that are contained within a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier or air purifier; (iv) telephones of any type unless they contain a video display area greater than four inches measured diagonally; and (v) any handheld device used to access commercial mobile radio service.

North Carolina

North Carolina will ban the sale of computer equipment to retailers in the state on or after 1 January 2009 unless the CED carries a permanently affixed and readily visible label with the manufacturer's brand. Computer equipment is defined as a desktop central processing unit, laptop computer, the monitor or video display unit for a computer system, and keyboards, mice and other peripheral equipment. Excluded from this definition are printing devices, televisions, household appliances, automobiles and large commercial or industrial equipment.

By 1 January 2009, manufacturers that sell more than 1,000 items of computer equipment per year must register with the state and pay a US$10,000 registration fee and a US$1,000 annual renewal fee. Within 120 days of registration, manufacturers will be required to submit a plan for the reuse or recycling of discarded equipment. Among other provisions, recycling plans must describe any take-back programmes that will be implemented, how the manufacturer will implement and finance the plan and how it will transport discarded equipment from collectors. Manufacturers must also comply with various informational requirements.

Oregon

By 1 January 2009, manufacturers that sell desktop or laptop computers, televisions and computer monitors with screens larger than four inches will be required to finance "free, convenient, environmentally sound" recycling services. Manufacturers must also register with the state and pay an annual registration fee ranging from US$20 to US$15,000, depending on their market share in Oregon. In addition, a covered device may not be sold in Oregon unless it is properly labelled with the manufacturer's brand and that manufacturer is registered with state authorities. Manufacturers can create their own take-back programme or participate in a common programme, but they must pay for collection, transportation and recycling costs.

Texas

Texas' e-waste management programme is limited to new desktop or laptop computers, including computer monitors or other display devices that do no contain a tuner. Covered devices cannot be sold in the state unless they carry a permanently affixed and readily visible label with the manufacturer's brand and the manufacturer has a registered recovery programme. Manufacturers are required to adopt and implement a recovery plan that allows consumers to recycle covered devices without paying a separate fee at the time of recycling. These requirements will enter into force 1 September 2008.