PURPOSE:

Staff is requesting City Council approval of a resolution authorizing the City of Burbank to participate in the Electronic Waste Recovery and Recycling Payment System in accordance with Senate Bill 20 (SB 20), the Electronic Waste Recycling Act of 2003.

BACKGROUND  

The Burbank Recycle Center (Center) received a large number of calls regarding disposal of electronics, such as computers and televisions.  Therefore in 2001, the Center initiated an electronics drop-off program.   At the time, the California Integrated Waste Management Board (CIWMB) touted a Gardena recycler, HMR, a company that collected e-waste at no charge; and the City enlisted its services. 

Shortly thereafter, the State Department of Toxic Substances Control (DTSC) announced that electronics containing cathode ray tubes (CRTs), which include computer monitors and televisions, were not permitted in landfills and must be treated as universal waste.  At the time, the DTSC noted that 32 million personal computers in California would become obsolete in 2001.  When quantities of e-waste dropped off at the Center grew to the point where Burbank needed almost weekly pickups, HMR began charging the Center for collecting monitors and television sets (CRTs) but continued to pick up other e-waste at no charge.       

In September 2003, Burbank became eligible for household hazardous waste (HHW) 11^th cycle funds.  The Center applied for and was awarded a CIWMB discretionary grant to help pay for an e-waste reuse program and signage and equipment for handling and reducing the e-waste tonnage that were dropped off by residents, occasionally from businesses, and from the City�s weekly Bulky Item program.  The Recycle Center limited its customer drop-off of CRTs to two per vehicle.  In FY 2003-04, the Center collected 14.15 tons of e-waste from the drop-off and Bulky Item programs and paid $5,944 for the 11.8 tons that contained CRTs.      

Cities began lobbying the California legislature to find a way to at least partially pay for the expense of properly recycling/disposing of e-waste.  The result was Senate Bill 20 (SB 20), which became effective in June 2004.  SB 20, the Electronic Waste Recycling Act of 2003, established a funding system for the collection and recycling of e-waste that would:

• Reduce the hazardous substances used in certain electronic products sold in California.

• Collect an e-waste recycling fee at the point of sale of certain products.  (For example, a consumer would pay a fee of between $6 and $12 when purchasing a computer, depending upon the screen size of the monitor.)

• That fee would partially pay for the distribution of recovery and recycling payments to qualified entities (such as the Center and HMR, the recycler/processor) to cover the cost of collection and recycling.

• Direct the establishment of environmentally preferred purchasing criteria for state agency purchases of certain electronic equipment.

Distribution of the SB 20 funds collected from certain products is in the purview of the CIWMB; the DTSC will establish other aspects of the program such as the definition of a handler, regulations for handlers, and notification and reporting requirements for handlers of universal waste electronic devices.  The Recycle Center is considered a handler.

ANALYSIS

Under SB 20, the Center is eligible to receive 20 cents/lb. for products that are designated as universal waste electronic devices � those with CRTs. The Center would receive such payment from the recycler/processor after the company receives payment from the CIWMB.  For example, under SB 20, HMR would receive 48 cents/lb. from the State and return 20 cents/lb. to the Center. Also, the State notes that the recycling fee collected from customers and payments to recyclers under SB 20 are subject to change.  In FY 2003-04 the Center�s collected 14.15 tons of e-waste, 11.82 of which contained CRTs and 2.33, which did not.  Based on this tonnage, payment to the Center would have been about $1,200 less than the Center�s $5,944 cost of having the e-waste collected.   (SB 20 payments would not include any reimbursement for the Center�s labor, equipment, administrative or other expenses associated with e-waste recycling.)

The tonnage of e-waste collected and the payments to the Center could vary in the next few years for a variety of reasons including:  (1)  A recent CIWMB statewide survey estimates that six million monitors and televisions in California households are waiting to be recycled;  (2)  Los Angeles County Household Hazardous Waste roundups now also collect e-waste;  (3)  Donation programs or the Center�s reuse program could grow or shrink; and   (4)  A glut of TVs is expected on the market in 2006 when today�s TVs become obsolete.   

To receive SB 20 payments, the City is required to submit a resolution authorizing local government agencies to participate in the �Electronic Waste Recovery and Recycling Payment System.�       

FISCAL IMPACT

Based on FY 2003-04 collection tonnage, the City could expect to receive approximately $5,000 per year for the recycling of e-waste.  This is 84% of the $5,944 in actual costs incurred.  Funds distributed to recyclers are not expected to be received for four months, after the CIWMB has worked out its administrative payment plan.  Upon receipt, these payment funds will be appropriated to expenditure account 498.PW 31C.62170.

RECOMMENDATION

Staff recommends that the City Council adopt the proposed resolution authorizing the City to participate in the Electronic Waste Recovery and Recycling Payment System, and submitting funding requests to the CIWMB.      

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