Misguided Santa Clara measure approved

The Santa Clara County Board of Supervisors has voted to pass an ordinance that requires all scrap electronics collected in unincorporated parts of Santa Clara County be recycled by e-Stewards certified recyclers.   Despite valid concerns expressed by dozens of organizations in comments submitted to the Supervisors prior to the meeting, and testimony in opposition from Sims and Green Mouse Recycling (a California-approved e-scrap collector) at the hearing, the Board of Supervisors voted to pass the ordinance 4-1. 

     In addition to alerting R2 certified recyclers and other R2 stakeholders in advance of the vote, R2 Solutions submitted comments to each Supervisor and supported the efforts of a number of other recyclers, helping them strategize and submit comments.  A copy of the letter R2 Solutions sent to the President of the Board of Supervisors can be found here.  Among primary concerns expressed by R2 Solutions is the fact that this ordinance would codify a private sector program which can change over time, potentially changing the intent of the requirements of the ordinance as well.   

     R2 Solutions thanks all of those who did submit comments.  We believe codifying the e-Stewards Standard into law will be the strategy that the Basel Action Network will continue to pursue at the local, state and federal level.  R2 Solutions will continue to keep R2 stakeholders abreast of such developments as they arise.  If you are aware of similar legislative efforts being pursued at the local or state level, please contact R2 Solutions.

R2 on global trade issues and HR 2284 

The issues associated with mismanagement of electronic scrap on a global scale are real and significant.  Environmental groups have done an excellent job bringing the environmental and social concerns of irresponsible electronics recycling to the forefront of industry dialogue.  However as with most problems, finding a solution can be much more complex than identifying the issue.  Nations are now trying to identify the best approach to addressing these problems. 

     The European Union was one of the first governing bodies to create a policy to address the trans-boundary movement of scrap electronics, placing restrictions on shipments to developing nations beginning in 1999.  Despite this policy being in place for 12 years, e-waste shipments have continued to illegally flow from European nations to developing nations, primarily to Africa.  A number of exposes have focused on the persistent, illegal trade that continues between the EU and Africa.

     Recognizing these issues are ones that the U.S. electronics industry needs address, the R2 Standard was crafted in a way that effectively addresses the export issue.   Stakeholders developing the R2 Standard had two choices; pursue the same policy model as Europe, which has proven ineffective, or create a new approach that would foster transparent and responsible trade in electronic scrap that has value.  The stakeholders opted for the latter approach and the result is the R2 framework for promoting responsible recycling globally by requiring that exports are conducted legally under the importing and exporting country's laws, and that trade occurs exclusively with firms operating state-of-the-art recycling facilities.

     Despite the positive impact the R2 Standard is having in improving transparency and responsible trade of electronic scrap and commodities, a political push continues to be made to ban all exports with trade partners in developing nations.  Most notably, House Resolution 2284 has been introduced which would effectively require the U.S. electronics recycling industry to adopt the European export policy model.  As lawmakers and the industry consider this measure, R2 Solutions feels the following questions should be asked:

• Is there sufficient evidence that the policy to ban exports to developing nations would be more effective for the U.S. than it has been for other developed nations?
• U.S. trade has been instrumental in fostering the development of a legitimate, technologically-advanced electronics recycling industry in developing nations.  As discussed in research conducted by acedemics at the University of Arizona, many of these nations will be generating more electronic scrap domestically than they are currently importing.  If U.S. trade becomes prohibited, will the electronics recycling industry in these nations continue to evolve?  Will Asia continue to develop the capacity to responsibly recycle their own e-scrap if the U.S. makes such trade illegal?

HR 2284 has been referred to the House Energy and Commerce Committee as well as the House Science, Space, and Technology Committee.  R2 Solutions encourages all interested parties to contact members of both of those committees to share any thoughts or concerns they may have with the measure.   R2 Solutions will continue to monitor HR 2284 and inform stakeholders of relevant developments.   

QMI-SAI Global becomes 5th accredited CB for R2 

This week ANAB accredited QMI-SAI Global for R2, further increasing the options for those electronics recyclers seeking certification to the R2 Standard.  John Fraser, Product Manager for Environment at QMI-SAI Global notes the firm, "is pleased to have received this recognition from ANAB, our accreditation body.   We're excited to offer R2 certification to our existing customer base and the electronics recycling market through our audits that focus on the integrity of the standard and the needs of business to continually improve."  Fraser notes that offering certification services for R2, "complements the wide range of environmental, health and safety and quality audits we've been offering industry for over 25 years in North America."

     Recyclers should be aware that only ANAB accredited CBs, including AQA International, Orion Registrar, Perry Johnson Registrars, QMI-SAI Global and SGS can offer R2 certification.  Information about the audit process, and contact information for the CBs can be found on the R2 Solutions website.

    While each CB's approach to the audit process may vary slightly, it is their responsibility to evaluate facilities with equal rigor.  As part of the Quality Assurance Program, R2 Solutions will continue to work with each CB, participating in trainings and offering ongoing support to ensure the principals of the R2 Standard are being evaluated consistently by each auditor.

Work of the TAC is underway

The Technical Advisory Committee, responsible for developing official guidance revising the R2 standard, has launched work in these two areas.   To accomplish these tasks, the TAC has formed the Guidance Workgroup and the Standard Review Workgroup.  The Guidance Workgroup began immediate work reviewing draft guidance.   The public will have an opportunity to comment on the draft guidance before it is published.  The Guidance development process is expected to be completed by this fall. 

     The Standard Review Workgroup has begun work identifying potential areas of the standard that need revision or rewording.  Much of the work undertaken by the Guidance Workgroup will also inform the efforts of the Standard Review Workgroup.  The public can participate in this process by submitting comments on areas of the standard that they would recommend for consideration during this review and revision process.  Comments can be submitted through the R2 Solutions website.

Conformity review:  Sufficient Financial Instrument  

Conformity review is a monthly column highlighting important operational  

information concerning the R2 Standard

R2 Solutions has received a number of inquiries about what constitutes a sufficient financial instrument, which is a required component of the facility closure plan (Provision 11).  R2 Solutions believes that no community should be burdened with the environmental and financial management of cleaning up the site of an abandoned electronics recycling operation.  The developers of the R2 Standard determined that requiring the demonstration of a competent closure plan, which would cover all costs associated with returning the facility to its original state, would be the best way to protect the environment and communities in the event of sudden closure and/or abandonment.     

 R2 Solutions has offered the following draft language on this issue to the TAC for consideration as part of the Draft Guidance Document. While this is not official guidance at this time, it presents a framework for thinking about this requirement.   

The recycler shall maintain adequate resources or financial reserves to return the building to a sellable or leasable state.  This includes providing for the removal, and appropriate management (to R2 Standards), of all end-of-life equipment and materials resulting from recycling activities.  If there is known on-site environmental contamination which is the responsibility of the recycler, and which has not been addressed, the financial instrument should be appropriately funded to cover the cost of this clean up.

Assets intrinsic in the facility can be considered sufficient to finance the closure so long as the recycler has detailed the value of the equipment and designated who would be responsible for the liquidation of assets in the event of site abandonment (ie, a third party separate from the recycler).

Recyclers have also explored the use of escrow accounts and bonds as possible means for meeting this requirement.  So while there are a number of ways the financial instrument can be constructed, it must be demonstrated to be adequate to cover all of the costs required to return the property to a leasable or sellable state.