The NYS Forum, Inc. IT Greening Work Group

1. The NYS Forum, Inc. IT Greening Work Group The NYS Electronic Equipment Recycling and Reuse Act June 14, 2011

2. Agenda • Welcome & Introductions • Product Stewardship • Overview of the Act: • Requirements for manufacturers • Requirements for retailers • Requirements for collectors & municipalities • Requirements for consolidators and recyclers • What the Act means for the agency consumer • Implementation update • Available Resources • Q & A

3. What is Product Stewardship? • Product stewardship is a concept that ensures that all those involved in the lifecycle of a product, share responsibility for reducing the health and environmental impacts that result from the production, use and end-of-life management of the product • Manufacturers bear primary financial responsibility

4. Critical Elements of Product Stewardship Programs • Goal: Ensure product stewardship programs improve level of service and environmental performance by including: • Performance Standards • Convenience Standards • Environmental Standards • Reuse & Recycling Required • Handling/Processing Standards

5. Examples of Product Stewardship in New York State • Electronic Equipment Recycling and Reuse Act(Article 27, Title 26 of the ECL) • Rechargeable Battery Recycling Act (Article 27, Title 18 of the ECL) Taken from: coated.com

6. NYS’s E-waste Law: Quick Facts • Based on Product Stewardship Model • (23rd in the nation) • Establishes Disposal Ban in Phases • Most Progressive State E-waste Law to Date • Broad range of covered electronic equipment (CEE) • Broad range of consumers • Comprehensive convenience standards & performance goals • Numerous regulated entities

7. Covered Electronic Equipment (CEE) • Computers • Computer Peripherals • Monitors • Electronic Keyboards • Electronic Mice or Similar Pointing Devices • Facsimile Machines • Document Scanners • Printers • Televisions • Small Electronic Equipment • VCRs • Digital Video Recorders • Portable Digital Music Players • DVD Players • Digital Converter Boxes • Cable or Satellite Receivers • Electronic or Video Game Consoles • Small Scale Servers Taken from: Tomshardware.com

8. Requirements for Manufacturers • Submit a registration form, registration fee form, and one-time $5,000 registration fee by January 1, 2011 • Provide an electronic waste acceptance program beginning April 1, 2011, that: • Is at no cost to consumers (other than the previously mentioned exceptions) • Provides at least one reasonably convenient method of collection within each county, and within each municipality with a population of 10,000 or greater • Accepts electronic waste for which it is the manufacturer, and one piece of any manufacturer’s brand if offered by a consumer with the purchase of CEE of the same type by a consumer • Accepts a sufficient amount of electronic waste to meet the manufacturer’s acceptance standard.

9. Requirements for Manufacturers (cont.) • Provide a public education program, which must include: • An internet website • A toll-free telephone number • Written information included in the product manual for, or at the time of sale of CEE, that provides a consumer of CEE to information on how to return CEE for recycling or reuse. • Provide information to retailers regarding registration • Properly label CEE beginning April 1, 2011 • Comply with disposal ban beginning April 1, 2011 • Submit an annual report form, annual report fee form, and $3,000 annual reporting fee by March 1, 2012, and recycling surcharge (if applicable) beginning March 1, 2013 • Maintain records on-site for three years

10. Statewide E-waste Recycling/Reuse Goal • Year 1: (April 1, 2011 through Dec. 31, 2011) • 20,000,000 (Approx. Population)x 3lbs. x ¾ = 45,000,000 lbs. (22,500 tons) • Year 2: (2012) • 20,000,000 x 4lbs. = 80,000,000 lbs. (40,000 tons) • Year 3: (2013) • 20,000,000 x 5lbs. = 100,000,000 (50,000 tons) • Years 4 (2014) and beyond TBD based upon: • Base weight x Goal Attainment Percentage

11. Manufacturer’s Acceptance Standard(Example Calculation) Total weight of manufacturer’s CEE sold in the state based on the average annual retail sales during the preceding 3 calendar years Manufacturer’s Market Share of E-waste 100,000 lbs. 1,000,000 lbs. = = 10% = Total weight of all manufacturer’s CEE sold in the state based on the average annual retail sales during the preceding 3 calendar years 4.5 million lbs. Manufacturer’s Acceptance Standard Statewide Recycling or Reuse Goal Manufacturer’s Market Share of E-waste 45,000,000 X 10% = X = =

12. Manufacturer’s Recycling Surcharge & Credits Multiplied by the number of additional lbs. that should have been collected Credits < 50% of acceptance standard 50% to < 90% of acceptance standard 90% to < 100% of acceptance standard Beginning 2014, if a manufacturer accepts more than its acceptance standard, the excess weight may be used as electronic waste acceptance credits

13. Requirements for Retailers Retailer Requirements beginning April 1, 2011: • Provide purchasers with information on recycling opportunities for their electronic waste • Sell only registered brands • Sell only labeled equipment • Comply with disposal ban

14. Requirements for Collection Sites • Collection Site Requirements: • Submit a registration by January 1, 2011 • Store e-waste properly • Remove e-waste from the site within one year of receipt, and maintain records on-site for three years • Submit an annual report by March 1, 2012 • Comply with disposal ban beginning April 1, 2011 • Additional Considerations for Municipalities: • Not required to collect under the new law • Negotiate agreements • Household Hazardous Waste State Assistance Program funding is no longer available for the municipal collection of CEE (April 1, 2011)

15. Requirements for Consolidation & Recycling Facilities • Facility Requirements: • Submit a registration form, registration fee form, and one-time $250 registration fee by January 1, 2011 • Store e-waste properly • Control entry • Inform employees • Remove e-waste from the facility within one year of receipt, and maintain records on-site for three years • Comply with disposal ban beginning April 1, 2011 • Submit an annual report form by March 1, 2012

16. What the Act Means for the Agency Consumer • Free and convenient recycling to a broad range of consumers! • Definition:Including, but not limited to individuals; small businesses, corporations and limited partnerships; small not-for-profit corporations; public corporations; public, private or parochial schools; and government entities located in NYS. • Exceptions:For-profit businesses with 50 or greater FTEs; not-for-profit entities with 75 or greater FTEs (but not 501(c)(3)’s); premium services; and existing contracts. • Premium Services: Any services above and beyond the reasonably convenient acceptance methods defined in the Act. These include equipment and data security services, refurbishment for reuse by the consumer, and other custom services as may be determined by the Department such as on-site collection (other than mail back programs), data wiping, specialized packing and preparation for collection, etc.

17. Implementation Update • All registered manufacturers have received their electronic waste acceptance standards • The Department is working to fine tune several acceptance programs • Collection site, consolidation & recycling facility registrations are being reviewed • Further develop and post annual report forms well in advance of the March 1, 2012 submission deadline • OGS/Department plan to develop guidance for state agencies on how to better manage electronic waste in compliance with the E-waste Law and State Finance Law • Coordinate outreach efforts between OGS and the Department

18. Available Resources from the NYSDEC • Main E-waste Law Page: • http://www.dec.ny.gov/chemical/65583.html • Text of the E-waste Law: • http://www.dec.ny.gov/docs/materials_minerals_pdf/ewastelaw2.pdf • Two Easy Steps for Consumer E-waste Recycling: • http://www.dec.ny.gov/chemical/66872.html • The first point of contact for state agencies wishing to properly manage electronic equipment should be the NYS Office of General Services (OGS): • http://www.ogs.state.ny.us/BU/BA/Rx3.asp

19. Questions Mark Moroukian, P.E. NYS Department of Environmental Conservation Division of Materials Management Product Stewardship & Waste Reduction Section Chief (518) 402-8706 ewaste@gw.dec.state.ny.us

20. Surplus Property ProceduresFrank GeboskyOGS Surplus PropertyFrank.Gebosky@ogs.ny.gov

21. This statute governs the transfer and disposal of personal property, including electronics. It provides that the head of a state agency may either: • Dispose of the property in accordance with applicable express statutory provisions; • Reuse it within the same agency • Use it in part payment on a new item; • Transfer custody or control to OGS for reuse by other state agencies or other disposition • Where the item essentially has no value, dispose of it as the agency believes to be in the state’s best interest State Finance Law Section 167

22. If custody or control of the property is transferred to OGS, State Finance Law requires that surplus property must first be offered to state agencies, and then offered to municipalities, before sale to the public, e.g., by public auction or via eBay. Surplus Property General Information

23. If custody is transferred to OGS: • The property is made available to other State Agencies (transfer) for reuse in accordance with State Finance Law §167 (3); • If no State Agencies are interested, the property is made available to Municipalities of the State (sale for fair market value) in accordance with State Finance Law §167 (4) • In the case of surplus Computer Equipment— it must be made available to State educational institutions if the “educational usefulness substantially exceeds its monetary value,” in accord with State Finance Law §168 (2) • Public sale process is triggered if steps 1-3 do not result in disposition. Surplus Property Order of Priority

24. Once surplus property has gone through the previously mentioned process, the law requires it be sold by public auction. This is done on Ebay. • OGS has an obligation to the people of NYS to retain the value of the property; the sale of surplus property generates substantial revenue for the State (general fund) every year. • OGS is bound by State Finance Law to generate whatever income is possible from the disposition of State owned property. • OGS terms of sale advise the purchaser of their obligations under the law Surplus Property Sales Procedures

25. Online sales include the following terms of sale: Surplus Property Condition: Items are offered as is with no warranty. Known defects are listed, but the absence of any indicated deficiencies does not mean the item may not have deficiencies. Bidders are encouraged to inspect items for sale prior to bidding. Information and inspection arrangements can be made by calling the contact at the location of the sale. Notice: It is expected that the Buyer shall responsibly use this personal property including its disposition in conformance with applicable law, rules and environmentally preferred practices. Terms of Sale

26. In view of DEC’s e-waste legislation, OGS is currently drafting additional language that will advise purchasers of the obligation to use the property responsibly, and to dispose of it accordance with the NYS Electronic Equipment Recycling and Reuse Act. OGS will also link to http://www.dec.ny.gov/chemical/65583.htmlon its own site and through the Ebay portal. Surplus Property

27. State Agencies opting to reuse, trade-in or recycle property without transferring to OGS must keep auditable records demonstrating the disposition was in the best interests of the state • When items are sold to the public, OGS will provide notice to buyers of the applicable laws (e.g., concerning recycling, special E-Waste provisions), and the buyers’ obligations under these laws. • OGS may require that purchasers acknowledge they have received and will comply with current recycling & E-Waste laws. • OGS is currently reviewing best practices from other states and the private sector for possible adoption. • OGS is open to further suggestions on how to best facilitate implementation of its State Finance Law obligations in a manner compatible with the E-Waste law. To best comply with the letter and spirit of the E-Waste law and the State Finance Law:

28. NYS Forum IT Greening Workgroup New York State Electronics Recycling & Reuse Act Implementation & Logistics June 14, 2011 Peter Bennison REGIONAL COMPUTERRECYCLING & RECOVERY www.eWASTE.com

29. New York State Electronics Recycling & Reuse Act Industry Experience & Background • RCR&R operates a large scale Demanufacturing/Recycling facility, and is one of the largest Ewaste recyclers in the northeast. • Founded in 1995 • Headquartered in Victor, NY • 100+ employees • 100,000 Square Ft. Facility

30. Volume responsibilities are based on market share Most are not in the business of Ewaste recycling Most have joined “Collectives” Collectives work with recyclers to establish an efficient & effective infrastructure Recyclers provide a network of collection sites and logistics services in order to meet the manufacturers obligations under the law Thorough audits and due diligence on behalf of manufacturers New York State Electronics Recycling & Reuse Act Manufacturer Responsibilities: “The law requires manufacturers to establish a convenient system for the collection, handling, and recycling or reuse of electronic waste” 30

31. New York State Electronics Recycling & Reuse Act 400 + Collection sites 39 Recyclers 79 Manufacturers 6 Collectives New York State Ewaste Recycling Infrastructure Snapshot 31 31

32. New York State Electronics Recycling & Reuse Act It’s called a producer responsibility law… Compliance with the NYS Electronic Equipment Recycling and Reuse Act is aSHARED RESPONSIBILITY 32 32

33. New York State Electronics Recycling & Reuse Act Producer - $$$$ & Program Management End User - Purchase & Recycling Government - Regulation & Resources Recycler - Quality & Efficiency Shared Responsibility 33 33

34. New York State Electronics Recycling & Reuse Act • Be provided at no cost to consumers • Small Businesses – Less than 50 employees • Non Profit organizations – Less than 75 employees • "Consumer" means a person located in the state who owns or uses covered electronic equipment, including but not limited to an individual, a business, corporation, limited partnership, not-for-profit corporation, the state, a public corporation, public school, school district, private or parochial school or board of cooperative educational services or governmental entity… • Free service has been extended to larger organizations including, state agencies, education and the healthcare industry • To meet manufacturer acceptance standards • Consistent flow of material

35. New York State Electronics Recycling & Reuse Act • Data Security – Hard Drive Destruction • Special handling, Packaging and Logistics • Asset Management - Reporting Not covered under the law - Premium Services Most Ewaste recyclers offer these services in conjunction with recycling services and may include them in an integrated ewaste recycling program

36. New York State Electronics Recycling & Reuse Act • Assets or Ewaste? • Can complete, working equipment be separated from obsolete, non functional equipment? • Will the proceeds from the sale of equipment be greater than the costs involved to have it sold?

37. New York State Electronics Recycling & Reuse Act Surplus Assets • Reuse is the highest level of recycling • The pace of technology advancements, software and maintenance of electronics present challenges • Contact OGS when you have surplus assets • Further guidance is forthcoming from OGS

38. New York State Electronics Recycling & Reuse Act Ewaste Recycling • Do your homework & your own “due diligence” when choosing an Ewaste Recycler/Processor • Ask for Certifications • Environmental, Health & Safety – R2/RIOS (Responsible Recycling under the Recycling Industry Operating Standard) http://www.certifiedelectronicsrecycler.com/about-r2rios.html • Data Security – NAID (National Association of Information Destruction) www.naidonline.org • Ask about Manufacturer backed recycling programs • Get references

39. New York State Electronics Recycling & Reuse Act Summary • What are the two main issues to be concerned with regarding Ewaste Recycling? • Environmental Compliance • Covered under the law – Choose a responsible recycler • Data Security • Not covered under the law • Make sure that your agency or organization has a documented plan for data destruction for surplus equipment or Ewaste. • Contract with a private sector firm that specializes in this service • Separate topic for NYS Forum Security workgroup?

40. Questions Peter Bennison pbennison@ewaste.com 888 563-1340 X117 www.eWASTE.com