THE
OEM COMPLIANCE NEWS
SPRING 2015
Sims Attends Konstanz, Germany
Basel Convention Meetings
Leila Devia, head of the Basel Convention Regional Centre for the South American Region in
Argentina, Patricia Whiting, senior international policy analyst from Sims Recycling Solutions
and Yvonne Ewang-Sanvincenti, Associate Legal officer for the Basel Secretariat attend
January 2015 Basel Convention meetings in Konstanz, Germany.
Sims Recycling Solutions Web Returns
Service Shows 28% Increase
W
hen compared to 2013, shipments for Sims’ 2014 web returns
service have increased by 28 percent. Established in 2011, this service
originally was offered in one state receiving fewer than 200 shipments
per year. It now has expanded to a nationwide service that last year
received more than 4,300 shipments. New York’s January 2015 landfill
ban will most likely increase this number even more.
The New York landfill ban includes all electronic products covered under
New York’s Electronic Equipment Recycling and Reuse Act. This Act
requires original equipment manufacturers’ (OEM) to offer one convenient
and free method of collection to New York consumers in each county and
municipality with a population of 10,000 or greater. There are currently
63 counties and 230 municipalities that meet this description. The Web
Returns Service was originally created to address OEM requirements
under this act, so it wasn’t a surprise to see most of the returns - 17 percent
- from New York.
Other states with a high use of the service include California (12 percent),
Massachusetts (9 percent) and Florida (6 percent). California has an
electronics disposal ban and recycling law in place that requires consumers
to pay a fee at the point-of-purchase. This fee supports the state’s robust
electronics collection and recycling network, which is largely run by
government and private entities. Massachusetts and Florida do not have
any type of statewide recycling law in place, but Massachusetts has had
a cathode ray tube (CRT) disposal ban since 2000.
Some OEMs offer this service to meet legislative collection requirements.
Others use it as a beneficial customer service tool for new and existing
customers throughout the nation. Regardless of the motive, the program
has proven successful in helping OEMs implement secure, convenient
and reliable services to their customers. To learn more about our Web
Returns service, email us at srs.oem.compliance@simsmm.
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P
atricia Whiting, senior international policy analyst from Sims Recycling
Solutions original equipment manufacturer (OEM) compliance team,
attended a series of German government-sponsored meetings in late
January. These meetings were based around the implementation of the
Basel Convention in Konstanz, Germany. They were attended by various
experts representing Basel Parties; the U.S. government (a signatory
but not a Party), academia, non-governmental organizations and the
private sector. Discussions were based around the draft Basel Convention
Technical Guidelines for the environmentally-sound management
(ESM) of used electrical and electronic equipment; measures, policies
and programs. The goal is to promote ESM of hazardous waste in
developing countries; and promote legal clarity with regards to interpreting
and implementing the Basel Convention through definition of ambiguous
or new terms in a glossary. Whiting observed the E-Waste Technical
Guidelines meeting and participated in the ESM Expert Working
group meeting.
E-Waste Technical Guidelines
The goal of this meeting was to advance development of the technical
guidelines on e-waste and obtaining agreement among group members
on paragraph 26(b) of the document. Paragraph 26(b) addresses whether
non-functional used electronic and electrical equipment should normally be
considered waste. It also addresses what type of safeguards should be in
place to prevent illegitimate and environmentally-unsound shipments of
e-waste sent for repair or refurbishment to developing countries that lack the
capacity to manage them.
At the outset of the meeting a decision was made to first review prior
meeting discussions pertaining to paragraph 26(b). During the group’s
previous meeting at the 9th Open-Ended Working Group (OEWG) of the
Basel Convention, a small “Friends of the Chair” group was established.
This group was created to develop guidelines to determine whether or not a
country would want to receive used electronics for repair or refurbishment.
This approach has become known as the “preferred approach”.
See Germany Basel Convention, page 2
Germany Basel Convention, continued from page 1
A second “fall back” approach was also developed to let individual Parties
determine how to address transboundary movement with regards to the
repair and refurbishment. This secondary approach is favored by the
European Union (EU) among others. Time constraints did not permit for
group discussion of the “fall back” approach during the OEWG meeting.
Though the preferred approach was initially favored by the broader group,
it became increasingly apparent that issues still existed. The group in
Konstanz initiated their work by going through each of the seven criteria
developed by the Friends of the Chair group. The following transpired:
Areas of Agreement:
Transport documentation
Criteria (iv) and (v) looks at contracts and declarations including the need
to address the elements required within documentation accompanying
equipment during transport. Documentation includes a declaration from
the party initiating the export, a contract between the exporting party and
receiving facility, and a declaration of ownership for used equipment
sent for repair or refurbishment. A small working group was established
to consider these criteria and it was decided to merge the two criteria
with additional contract and declaration elements. They also decided to
include an agreed upon model for the declaration to reflect the criteria
that will be provided in an annex to the document.
Packaging during transit
Criteria (vii) that addresses packaging, in the context of how equipment
is protected against damage during transport is an important indicator of
its status as waste versus non-waste.
Areas of Disagreement
There was discussion on criteria (i), (ii), (iii), and (iv), however no agreement
on text.
Reporting for device repair and refurbishment
Criterion (i) looks at a potential reporting requirement for Parties who host
repair and refurbishment activities. It will outline how they consider the
status of transboundary movement for repair or refurbishment for the
purposes of information exchange on the Basel website.
Requirements for old equipment
Criterion (ii) addresses old equipment with high content of hazardous
substances and dated technologies. Some participants favored the idea of
referencing the EU’s Restrictive of Hazardous Substance directive (RoHS)
but it was agreed that this was not practicable or enforceable, as not all other
Parties beyond Europe implement this policy. Rather, it was suggested
that the text reference relevant national or international legislation.
Enforcement and accountability
Criterion (iii) relates to accountability and how to practically enforce this
criterion.
Take back requirements of residual waste
Criterion (iv) regards the take back of residual waste. Some participants
asserted that broken and hazardous components removed from the
equipment during repair or refurbishment would be circumventing the
Ban Amendment in situations where they are exported from developed
(Basel Annex VII) to developing (non-Basel VII) countries. Others argued
to the contrary that the export of equipment that meets the criteria would
be an export of a product and not a waste.
In this light, a number of participants did not favor referencing the Ban
Amendment in a technical guideline as it is not yet in force and it is political
versus technical. As a way forward, the Basel Secretariat will draft proposed
language and/or draft options to advance the discussion during two
upcoming teleconferences.
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Areas Needing Further Discussion
Other issues discussed during the meeting included vehicle parts
remanufacturing; functionality testing; the application of paragraph 26(b)
to other sectors (i.e. automotive, medical devices) and determining the
position of non-Parties and transit countries in the context of paragraph
26(b). With regards to remanufacturing, it was determined that there is not
sufficient time to evaluate whether current proposed provisions for repair and
refurbishment are suitable for remanufacturing. It was also agreed to exclude
remanufacturing, at least temporarily, from the scope of the guidelines.
Considering the application of these guidelines to other sectors, there was
discussion to include language mentioning those sectors that might be
exempted from the guidelines. There was no agreement however, in
terms of how to deal with this as there are many industry sectors potentially
impacted by the guidelines that are not aware of them. Finally it was agreed
that information should be gathered from non-Parties and transit countries
with regards to paragraph 26(b).
It is hoped that sufficient inter-sessional progress can be made on the
document to enable its adoption at the next Basel Conference of the
Parties (COP) meeting in May 2015.
Environmentally Sound Management (ESM) Expert Group
The ESM Expert Group met for three days and succeeded in finalizing
five “practical manuals” for the ESM of hazardous and other waste. The
practical manuals covered:
1. General policies and legislation,
2. Permits and licenses,
3. Prevention,
4. Insurance and liability, and
5. Terminology.
The group also finalized waste stream fact sheets regarding: electrical and
electronic waste, end-of-life vehicles, healthcare waste, household waste,
mercury waste, used lead-acid batteries, used oils, and used tires.
Additionally, two pilot project proposals were selected from 17 contenders
to advance ESM in developing countries. The proposals selected were
from Argentina and China.
Without question, the Parties and other stakeholders profess the importance
of public-private partnerships as a tool for information exchange and
technical assistance to advance ESM practices in developing countries.
However, Sims expressed concern that there has yet to be a pilot selected
that advances this concept.
On a Personal Note
Sims Recycling Solutions’ involvement in the Basel Convention’s Expert
Working Group on ESM provides the opportunity to interface with global
experts from all paradigms. Our involvement enhances our knowledge
not only of the issues surrounding the ESM of used and end-of-life
electronics and waste management in general, but also of the people
and cultures where we do business.
Konstanz, Germany, located at the western end of Lake Constance in
the south-west corner of Germany, is a city rich in culture and history. It
houses the University of Konstanz and was for more than 1,200 years,
residence of the Roman Catholic Diocese of Konstanz.
Sims wishes to thank the German government and in particular, their
Ministry of Environment for sponsoring and organizing the meetings, the
Mayor of Konstanz for his gracious hospitality in hosting a reception for
the participants, the Swiss government for hosting the participants for
dinner in a bordering Swiss town, and the Basel Secretariat for their
continued administrative, legal, and technical support of our work.
Community Spotlight
In each newsletter, Sims Recycling Solutions provides a
featured interview of a customer, partner or colleague
within the field of recycling. These interviews provide an
opportunity to learn about the different aspects of recycling
from an economic, environmental or social perspective.
This issue profiles J.J. Santos, the WEEE (Waste Electrical
and Electronic Equipment) and International Business
Director for Camacho Recycling in Spain.
When did you begin working with Camacho Recycling and what is your
background?
I began working for Camacho Recycling in 2011 and have a Bachelor’s
Degree in Economics and an MBA in International Trade. I worked for 15
years in the logistics industry and first became involved with the recycling
industry in 2008. I have been working with the takeback schemes for
WEEE in Spain and as a member of the WEEE Forum’s CRT (cathode
ray tube) working group since 2008. The WEEE Forum is a non-profit
association with almost 40 members from 25 countries representing
takeback schemes across the European Union. I am also an auditor of
WEEE treatment facilities and a consultant to the Governments of Oman
and Lebanon for the implementation of WEEE legislation in those countries.
What types of services does Camacho Recycling provide?
Camacho Recycling is a family-owned company established in the late
1950s in Madrid, Spain. From the start it was a pioneering company in
the field of glass reuse and over time has become a pioneering company
in the glass recycling sector. We continually work to expand and diversify
our activities in the glass sector and today we have the infrastructure,
technology and qualified staff to allow us to treat more than 150,000 tons
or 330 millions of pounds of glass waste per year.
We have the expertise to adapt recycling treatments and machinery for a
variety of pre and post-consumer glass types. We recover post-consumer
container glass and treat it so that it can be made into new containers.
We additionally recover all types of flat glass generated through manufacturer
production lines and consumer product recycling programs. Examples
include automotive, mirror, laminated, monolithic and colored glass; glass
coming from WEEE such as CRTs, LCDs and plasma screens; shelves
from refrigerators; vitro ceramics (heat resistant glass); solar panels and
more. We also have vehicles adapted for glass collection and more than
18,000 intelligent containers, georeferenced, with automated notification
of the filling level.
Last but not least, we are committed to quality and maintain the ISO 9001:
2008 Quality Certificate, ISO 14000:2008 Environmental Management
Certificate, and the OSHAS 18001: 2007 Occupational Health and Safety
Management System Certificate.
What is the company’s geographic service area?
Our geographic areas that ship input material are Europe, and North and
South America. Output material is typically utilized in the same regions
plus the Middle East, Far East and Africa. We are also starting conversations
with some stakeholders in Australia, for both input and output materials.
What volume of glass can your facilities handle and are there plans to expand?
We currently have four facilities in Spain and enough capacity to cover
our national and international needs, but are evaluating the possibility of
expanding to other areas to be closer to our glass suppliers and customers.
Our facilities are:
• Caudete (Albacete) is 3.2 million square feet and can handle up to
419 million pounds of glass annually. It has 13 processing lines and
a research, development and innovation laboratory.
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• San Vicente (Alicante) is 1.1 million square feet and the
head office of the Camacho Group.
• Murcia is 260,000 square feet.
• Valencia is the administrative office for Camacho Group
international imports and exports. It is close to the port of
Valencia, one of the biggest European ports for commodities.
What are some of the end products created from Camacho processed glass?
From our start as a glass bottle processor, we have successfully introduced
recycled glass as a secondary raw material to many different sectors including
vitreous tiling, handicraft, dripping, pavements, microspheres, Quartz compact,
ceramics for floor, wall and roof tiles, and enamel for glazed tiles.
When did Camacho start incorporating CRT glass into its process and why?
As a member of the CRT working group for WEEELABEX, a WEEE
management standard-setting and auditing project overseen by the WEEE
Forum and co-financed by the European Commission, we realized
that there was a gap between the excess of supply and environmental
friendly solutions for CRT glass, especially CRT funnel glass due to
its lead content. I also participated in another European Union project,
ECOVITRUM during the same time (2010-12), which focused on the
application of CRT glass in the ceramic sector. As a result, Camacho’s
research, development and innovation laboratory began looking at new
applications for CRT panel and funnel glass primarily in the ceramic
sector. Ceramics production and the need for feedstock in Spain are
huge, but demand also exists for feedstock in sectors related to the
construction industry in Spain.
CRT glass currently represents about 7 percent of our production, but
we are ready to grow this figure and have the capacity and facilities to
increase this number to 25 percent. We are ready to invest in new lines,
if the opportunity presents itself.
How has the U.S. Environmental Protection Agency (EPA) announcement
proclaiming the use of CRT glass in Camacho’s process as legitimate
recycling affected your business?
We had been discussing the CRT issue with Sims Recycling Solutions for
almost two years and it was only with the announcement from the EPA
in 2014 that we could really start accepting shipments of CRT glass from
the United States. It was important for us to work together with a big player
in the WEEE sector like Sims and a priority for us to be introduced into a
demanding market like the United States. The legitimization of our process
by the EPA was a result of many conversations, meetings and paperwork.
Without the help, support and cooperation of Sims we would not have
succeeded in this goal. We have been contacted by other recyclers
and even some U.S. glass processors with huge amounts of CRT glass
stockpiled wishing to send us their material. We are proud and willing
to contribute an environmentally-sound solution for the large volumes of
CRT glass being generated in the United States.
Where do you like to vacation? What do you like to do in your free time?
In some ways I feel like I’m on vacation the whole year because I live in
Valencia just beside the beach with an average temperature of 54ºF and,
moreover, I like my work. Although I spend a lot of my time traveling, I
like to take my wife and daughter for a leisure cruise in the summer and
spend the rest of my holidays in a small village in the mountains where
my family has a home. I love spending time with my family, cycling and
reading. My preferences in books are related to personal development.
I am currently reading again the book Unlimited Power by Anthony Robbins
which helps me on a daily basis.
In the States:
Legislative Updates
The DNR estimates 28.9 million pounds or 78 percent of all equipment
collected in Program Year 5 were CRT televisions or monitors. While
some OEMs understand this fluctuation others have not shown
their support.
Fewer collections sites and increased costs
Recyclers have minimized collections sites and events and are charging
collectors higher fees for service, especially in rural areas.
In addition, the DNR is contemplating the following potential changes to
the E-Cycle Program.
Adjusting program year dates
Dates will be adjusted to a calendar year instead of the state’s fiscal
year to allow for easier budgeting and contracting for all stakeholders.
Redefining terms
DNR may update the definition of a covered entity to include all K-12
schools (public and private) in addition to Wisconsin households. Also,
covered devices may include more products. For example, cell phones
and video game consoles may fall under consumer computer equipment
and a portable DVD player under the definition of video display device.
A
Altering annual registration fees
Fees altered would be for OEMs selling small quantities into the state.
new year brings a new set of successes and challenges to U.S.
states with electronics takeback laws in place. The following outlines
current legislative activity in Wisconsin, Michigan, Hawaii and Illinois.
For information about legislative activity anywhere in the world, email us
at [email protected].
Increasing OEM annual weight targets
OEM targets could increase from 80 to 100 percent market share.
Wisconsin
Michigan
E-Cycle Wisconsin Challenges
2014 Results
The Michigan Department of Environmental Quality is holding a series
of stakeholder meetings to determine how to improve implementation
and reporting under the state’s Electronic Waste Take Back Law. After
attending meetings in February and March we anticipate more meetings
will be needed before any proposed legislative changes are introduced
to the legislature.
The Wisconsin Department of Natural Resources (DNR) is holding a
stakeholder meeting on May 19. This meeting will address challenges the
E-Cycle Wisconsin program is facing due to industry trends and changes
in the electronics and commodity markets. Since 2010 more than 160
million pounds of electronic equipment has been collected and recycled
through partnerships with program collectors, recyclers and OEMs.
In Program Year 5 (July 2013 - June 2014) 37.2 million pounds of
equipment were collected from Wisconsin households and K-12 public
schools. At roughly 6.5 pounds per person, Wisconsin holds one of the
top five collection rates of the 25 states that currently have electronics
take back laws in the U.S.
While the DNR deems the program’s overall collection rates and availability
of statewide collection options a success, challenges they hope to address
in 2015 include:
Alignment of targeted volumes vs. actual volumes
OEM weight-based collection and recycling targets have declined since
Program Year 3 but the total weight of equipment collected through
the program has remained steady. The largest disparity between targets
and collection reached 7.5 million pounds in Program Year 5.
OEM annual weight targets are based on market share and weight
of products sold in the state two years prior to a program year’s start.
The problem is largely due to design improvements and consumer
preferences driving the production of smaller and lighter products
while older and heavier electronic equipment is what is largely being
collected for recycling.
Lack of support for increased recycler costs
Costs are increasing for recyclers largely due to limited markets for
cathode ray tubes (CRTs) and fluctuations in commodity markets.
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Established in 2008, Michigan’s law requires covered computer and
covered video display device (VDD) OEMs to establish free and convenient
take back programs for households and small businesses. Covered
computer OEMs have no annual weight-based collection target but
are required to collect their product. VDD OEMs are required to collect
60 percent of their market share based on weight of the previous year’s
product sales and must accept all brands of VDDs. Per the law, the VDD
goal is voluntary. As of Feb. 28, 2015, 76 OEMs registered for Program
Year 2015 (Oct. 1, 2014 – Sept. 30, 2015). Those who registered have
reported collecting and recycling a total of 25.8 million pounds in program
year 2014, a 14 percent weight decrease from the prior program year.
In summary, all affected OEMs reported the following:
•
•
•
•
35 reported recycling “0” pounds
43 reported recycling less than 1,000 pounds
51 reported recycling less than 10,000 pounds
8 reported recycling over 1 million pounds each (totaling 22.7
million pounds or 86 percent of all material reported by OEMs)
• 16 of the 31 VDD OEMs registered met the voluntary 60 percent
collection and recycling goal
Overall, registered recyclers reported collecting and recycling 39 million
pounds of covered computer and video display devices (71 percent
CRT-containing) in Program Year 2014. This was a dramatic difference
when compared to the weight reported by registered OEMs.
Hawaii
Senate Bill 1049 Prohibits Exclusive Use of Mail Back Programs
In an effort to increase convenient and consistent collection and recycling
opportunities for Hawaiian citizens, Senator Mike Gabbard introduced
Senate Bill 1049 in January 2015. This bill will amend the state’s Electronic
Waste and Television Recycling and Recovery Law and prohibit covered
electronic device (CED) OEMs from exclusively using mail back programs
to meet their planning and collection requirements. The amendment allows
OEMs of strictly portable CEDs to use a retail collection network in their
annual collection plan if at least 50 voluntary retail locations are listed.
In Hawaii, CED OEMs do not have a collection and recycling weight target
and are only required to collect their brand. This has resulted in some OEMs
with a variety of collection mechanisms receiving large quantities of material
and others only offering mail back services, collecting very little.
The bill passed the Senate with amendments on March 5 and was sent
to the House for review on March 12. After being passed by the House
Committee for Energy and Environmental on March 17, the bill now sits
with the House Committee of Finance. If the bill passes, the amendment
will go into effect January 2016.
Illinois
Legislature Introduces Bills to “Fix” Illinois’ Electronic Products
Recycling and Reuse Act
In 2014 several Illinois county and municipal electronics collectors
experienced difficulty maintaining year-round and/or no-cost collection
and recycling services from OEMs or their recycler representatives. Many
claim the state’s Electronic Products Recycling and Reuse Act is not
working as originally intended and in essence has created an unfunded
recycling mandate.
This mandate, paid in part or full by government entities in some instances,
not OEMs, covers collection and recycling services of equipment banned
from disposal under the law. In consultation with the Illinois Product
Stewardship Council, identical bills, House Bill 1455 and Senate Bill 797,
were respectively introduced into the Illinois legislature in February. These
bills were presented by House Representative Emily McAsey and Senator
Linda Holmes to amend the Act and address government entity concerns.
The proposed bills would:
Raise annual weight targets
OEMs affected by the law would have an increase in required target
weights from 50 to 80 percent market share.
Prohibit recyclers from charging government for services
Recyclers would no longer be allowed to charge local government
units for collection and recycling services if working on behalf of an
OEM affected by the law.
Enable OEM shortfall fees for not meeting 100 percent of weight target
The state would be allowed to charge OEMs shortfall fees for not
meeting 100 percent of their annual weight target. Currently an OEM
can meet 70 percent of its weight target and not be charged a fee.
Allow all CRT weight to count towards targets
Bare CRTs or scavenged CRT devices would be able to count towards
an OEMs collection target.
Permit alternate CRT disposal methods
This would allow the state to approve the use of alternative daily
cover or a landfill storage cell for treated CRT devices covered under
the Act. Weight for such devices treated this way would count towards
an OEM’s obligation.
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