Product Stewardship and Sustainable Materials Management: Minnesota’s E-waste Law

1. Product Stewardship and Sustainable Materials Management: Minnesota’s E-waste Law 2008 Symposium on Innovating for Sustainable Results: Integrated Approaches for Energy, Climate and the Environment Chapel Hill, NC January 9, 2008

2. Product Stewardship Product stewardship means that all parties involved in designing, manufacturing, selling and using a product take responsibility for environmental impacts at every stage of that product's life. (MPCA) Extended Producer Responsibility (EPR) extends the traditional environmental responsibilities that producers and distributors have previously been assigned (i.e. worker safety, prevention and treatment of environmental releases from production, financial and legal responsibility for the sound management of production wastes) to include management at the post-consumer stage. (OECD)

3. Stewardship Outcomes Address local government management costs Promote design changes Internalize lifecycle costs Increase collection, reuse and recycling volume Performance goals Integrate all aspects of product’s lifecycle

4. Product Stewardship Program Initiated with MPCA product stewardship policy in 1999. Identified three products: CRTs, paint, carpet Criteria and process for selecting others Strategies: Demonstration projects, industry initiatives, voluntary agreements, legislation and EPP. National Carpet Recycling Agreement, PPSI and MN E-waste Law, National Switch Agreement Current emphasis on paint, mercury-containing products, telephone books, pesticides, CFLs, C and D materials.

5. Drivers for E-waste Policy • Technology transition • Internet access, higher performance • Software upgrades • Estimate that only 50 percent of existing computers can operate Microsoft Vista • Analog to Digital TV signals- February 2009 • Estimates of 30 million to 80 million TVs may be impacted by transition • Increasing sales and increasing returns • Average of 2.8 televisions per household in US (2007) • 84 percent of homes have DVD player. • 75 percent of US households with internet access (2004) • Stockpile of old units • Avg. age of recycled TV is 17 years. • Avg. age of recycled desktop is 12 years and monitor is 11 years. • Toxic/hazardous materials (lead, mercury, cadmium, brominated flame retardants, PCBs). • Growing costs to collect, transport, and recycle .

6. Policy Context • Report to Legislature recommending disposal ban (1995). • MN participated in NEPSI (2001-2004). • Producer responsibility approach (2003-2005). • Disposal ban enacted (2003). • MPCA convened Waste Electronics Consultation Process (2004). • Waste Management Task Force (2006). • Passed Senate 63-1 and House 114-16. • MN Electronics Recycling Act • Signed by Governor Pawlenty on May 8, 2007

7. Supporters • Solid Waste Management Coordinating Board • Association of Minnesota Counties • League of Cities • Best Buy and Target • 3M • IBM • Minnesota Environmental Partnership

8. Midwest E-waste Policy Initiative • Dialogue initiated in July 2005 to promote harmonized policy development. • Support from US EPA. • MN, WI, IL, IA and MI. • Three financing options vetted at December 2005 stakeholder meeting. • Canadian “eco-fee” draft option selected in Jan. 2006 • Collaborated with NERC/CSG regional effort. • Initiative issued policy statement in April 2006. • Council of State Governments resolution adopted December 2006.

9. Minnesota Electronics Recycling Act • Began July 1, 2007. • Manufacturer Responsibility –based on sales weight. • Not based on return share or consumer fees on products as in other states • Requires registration and reporting by all parties involved. • Manufacturers, Collectors, Recyclers and Retailers

10. Data • MPCA estimates 48.3 million lbs. of VDDs sold (2006) • Projects 23.2 million lbs. of VDDs eligible for collection (2008). • 4.8 million lbs. additional credit for Greater Minnesota. • Projects 3.9 million lbs. of CEDs available (2008). • SCORE reports 20.7 million lbs. (2006).

11. Timeline Program year is July 1, 2007 to June 30, 2008

12. Responsibilities • Retailers: • Sell only registered brands • Report to registered manufacturers their annual sales of VDDs by July 1, 2008. • Provide information to consumers on recycling opportunities. • Collectors: • Must register with the MPCA by July 1 of each year. • Report to MPCA by Aug. 1 of each year

13. Responsibilities • Recyclers: • must register with the MPCA by July 1 of each year. • Report to MPCA by August 1 annually • Manufacturers: • Register with the state and pay annual fee. • Variable fee based on progress towards reaching obligation • 60% by weight PY1 • 80% by weight PY2 and thereafter • Credits (can be sold or used within 3 years) • Fees ($.30, .40 or .50 per lb) • Labeling • RoHS compliance

14. ESM Requirements • Comply with applicable regulations-federal, state and local. • Licensed by applicable entities (Metropolitan Area). • No prison labor. • $1 million liability insurance. • Recyclers must certify compliance. • Manufacturers must do due diligence.

15. Registration Status • 32 recyclers • 20 of those are MN companies • 4 companies indicated establishing facilities in state • 112 collectors • 173 sites • 63 manufacturers • 110 brands

16. Local Government Case Studies • St. Louis County • 200,837 pounds of CEDs collected from July 1 to Nov. 6. • 2X projected volume. • County is charging $1 or $2 for CRT containing products. • Fees reduced July 1. • The county has received $2,468 in revenue and estimates a total savings of $42,000.

17. Next Steps • Notification of companies • Public education/outreach campaign • Restructure Agency website • Implementation of US EPA BMPs/Certification program • Grants/contracts for underserved areas

18. Lessons Learned • Disconnect between commodity markets and local collection • Need to integrate waste management into GHG programs (e.g. cap and trade) • Broad, national product framework is needed

19. Web site: www.pca.state.mn.us/electronics Contact Information: Garth Hickle garth.hickle@state.mn.us 651-215-0224