FACT SHEET
J ULY 1, 2009
I NDIANA D EPARTMENT OF E NVIRONMENTAL M ANAGEMENT
Electronic Waste Program Manufacturers
www.idem.IN.gov Mitchell E. Daniels, Jr. Thomas W. Easterly
Governor Commissioner
100 North Senate Avenue, Mail Code 64-02, Indianapolis, IN 46204 Phone: (317) 232-8172 Toll Free: (800) 988-7901
Background:
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Electronics contain heavy metals, including lead, mercury, cadmium and hexavalent chromium that can be harmful if released into the environment. Recycling of electronics ensures these materials are safely managed and that valuable materials such as steel, glass and plastic are reclaimed for the manufacturing of new products. Effective July 1, 2009, the Indiana Legislature enacted the Indiana Electronic Waste Program (IC 13-20.5). The purpose of the program is to reduce the amount of electronic waste being sent to Indiana landfills and ensure that hazardous substances found in electronic waste are being managed in an appropriate and environmentally responsible manner. The program holds manufacturers of computers, laptops and televisions (also known as video display devices or VDDs) responsible for collecting and recycling or arranging for the collection and recycling of 60% by weight of the VDDs they manufacture and sell to households, public schools and small businesses in Indiana. The 60% by weight recycling goal must be met by the program year ending March 31, 2013. However, requirements for manufacturers under the law begin April 1, 2010, and are discussed later in this fact sheet. Manufacturers are able to count the recycling of a variety of electronics, such as VDDs, printers, DVD players and fax machines (referred to as covered electronic devices or CEDs) towards their 60% recycling goal. Manufacturers can coordinate with collectors and recyclers that are registered through the Electronic Waste Program to arrange for the collection and recycling of CEDs to meet their recycling goal.
Definitions:
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Manufacturer – a person that: 1) manufactures VDDs to be sold under the person’s own brand or a brand the person licenses as identified by the person’s own brand label or the brand label the person licenses; 2) sells VDDs manufactured by others under the person’s own brand or a brand the person licenses as identified by the person’s own brand label or the brand label the person licenses; or, 3) assumes the responsibilities and obligations of a manufacturer. Covered entity - a household, a public school or a small business (a business that is independently owned and operated with no more than one-hundred (100) employees). Video display device (VDD) - a television or computer monitor, including a laptop computer, that contains a cathode ray tube or flat panel screen with a screen size that is greater than four (4) inches measured diagonally and is marketed by a manufacturer for use by covered entities. Covered electronic device (CED) - a computer, modem (or other peripheral device), facsimile machine, DVD player, video cassette recorder or video display device that is sold to a covered entity by means of retail, wholesale or electronic commerce.
What are the registration requirements for participating in the Electronic Waste Program:
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Beginning April 1, 2010, and each April 1 thereafter, manufacturers of VDDs in Indiana must register with the state. Indiana Department of Environmental Management (IDEM) will oversee the registration process and provide registration forms. IDEM will provide additional guidance on the registration process prior to April 2010.
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The annual registration includes a fee of $5,000 for the initial program year and $2,500 each year thereafter. Program years run beginning April 1 and ending March 31 the following year. As part of the registration, the manufacturer must submit an annual plan for reaching the 60% recycling rate for the program year in which the registration is submitted. The plan must include an estimate of the total weight in pounds of VDDs sold to Indiana households during the previous twelve (12) months. Manufacturers must also provide IDEM with a list of brands of VDDs they manufacture and sell in Indiana. A manufacturer may not sell VDDs in Indiana if they have not registered with IDEM. VDDs must be labeled with the manufacturer’s brand in a permanently affixed and readily visible way. New manufacturers of VDDs wanting to sell to covered entities in Indiana must register within twenty (20) days after beginning sales of VDDs in Indiana.
What are the recycling obligations:
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Manufacturers are responsible for coordinating the collection and recycling of CEDs proportionate to 60% by weight of their sales of VDDs in Indiana from the previous year. Manufacturers can coordinate with collectors and recyclers to meet their 60% recycling goal provided those collectors and recyclers are enrolled with the Electronic Waste Program and compliant with Indiana’s electronic waste management law (329 IAC 16). IDEM will maintain a list of all compliant and registered collectors and recyclers. Manufacturers that achieve a recycling rate beyond the required 60% recycling rate will receive credits for 25% of the pounds they exceed. These credits can be used up to three (3) years in the future to count towards the 60% recycling goal. Credits can also be sold to other manufacturers or purchased from other manufacturers. This information must be reported in the manufacturer’s annual report to IDEM. Manufacturers can begin counting pounds from collection and recycling efforts for the initial program year on July 1, 2009. Manufacturers are encouraged through recycling credit incentives to utilize Indiana recyclers as well as expand their collection and recycling efforts into non-metropolitan areas in Indiana. To calculate the incentive, manufacturers can multiply the actual weight of CEDs collected by 1.1 for utilizing an Indiana recycler; multiply by 1.5 for collection in a non-metropolitan area; or multiply by 1.6 for both.
Calculating Recycling Rates:
The following is an example of how to calculate a manufacturer’s required 60% recycling rate in a given program year. 1. VDDs sold = 100 lbs 2. Required recycling rate = 60 lbs 3. CEDs collected and recycled = 100 lbs This manufacturer is also eligible to receive both incentives. 4. Incentives = 100 lbs * 1.6 = 160 lbs 5. Manufacturer recycling rate (step 2 minus step 4) = 60 lbs – 160 lbs = -100 lbs If the number in step five is less than zero, the manufacturer exceeded the required recycling goal. If the number calculated was greater than zero, the manufacturer would be subject to the variable recycling fee as determined by IDEM. Because the manufacturer exceeded the 60% recycling rate, recycling credits can be accumulated. 6. Recycling credits = 100 lbs * .25 = 25 lbs What are the reporting requirements once enrolled in the program:
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Beginning June 1, 2011 and each year thereafter, a manufacturer must report to IDEM: 1) an estimate of the total weight in pounds of VDDs sold to households during the program year (estimates will be based on national sales data);
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2) the total weight in pounds of CEDs that were collected from covered entities and were recycled; and 3) the number of recycling credits purchased and sold during the program year, if any, as well as the number of recycling credits to be counted towards that program year. The manufacturer must also provide the names of the collectors and/or recyclers with whom they coordinated along with the total pounds of CEDs collected for recycling by each.
Timeline: July 1, 2009: Manufacturers begin to collect and recycle electronics from Indiana covered entities. (Pounds of CEDs collected from July 1, 2009 through March 31, 2011, can be counted towards the total for the initial program year.) April 1, 2010: First day of the initial program year. Manufacturer annual registration and fee deadline. May 1, 2010: IDEM notifies manufacturers of missing information submitted on registration forms. March 31, 2011: Last day of initial program year. April 1, 2011: First day of second program year. Manufacturer annual registration and fee deadline for the second program year. June 1, 2011: Manufacturer annual report deadline for initial program year. March 31, 2013: Last day of third program year. Recycling goal of 60% by weight must be met. What happens if a manufacturer does not meet the 60% recycling goal:
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A manufacturer has two (2) program years to work towards meeting the required 60% recycling goal before fees will be assessed for not meeting the goal. This grace period includes program years 2011 and 2012. A manufacturer registered with the state that fails to meet the 60% recycling goal by the end of program year 2013 (March 31, 2013) and each year thereafter will be subject to a variable recycling fee of: o $0.40 per pound of shortfall if they recycle less than 50% of their required recycling obligation; o $0.30 per pound of shortfall if they recycle at least 50% but less than ninety percent (90%) of their recycling obligation; or o $0.20 per pound of shortfall if they recycle at least 90% of their recycling obligation. Manufacturers failing to meet the 60% recycling rate may petition the Recycling Market Development Board for relief from the variable recycling fee.
IDEM’s Role:
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The Indiana Department of Environmental Management (IDEM) is responsible for protecting human health and the environment while providing for safe industrial, agricultural, commercial and governmental operations vital to a prosperous economy. IDEM’s Office of Pollution Prevention and Technical Assistance (OPPTA) is responsible for administering the Electronic Waste Program. OPPTA will be responsible for overseeing manufacturer registration and gathering annual reports. OPPTA will calculate manufacturer recycling rates and determine whether manufacturers are subject to the variable recycling fee.
More Information:
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For more information on Indiana’s Electronic Waste Program, visit IDEM’s Web site at http://www.recycle.IN.gov/6411.htm.
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For more information on the Recycling Market Development Board, visit IDEM’s Web site at http://www.recycle.IN.gov/6233.htm. For questions and concerns, contact IDEM’s Office of Pollution Prevention and Technical Assistance at (800) 988-7901.
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