California E-Scrap Program May See Higher Payments

CalRecycle to increase compensation for e-scrap recyclers.

California Supports E-Scrap Recyclers

To counter the issue of high inflation and other economic concerns, the state of California is contemplating increasing payouts to e-scrap recyclers.

Effective as of 2023, a yearly payment adjustment will be implemented for recyclers under SB 1215. This regulation, overseen by California’s Department of Resources Recycling and Recovery (CalRecycle), aims to compensate any expenses incurred in collecting and recycling covered products.

In California, the Covered Electronic Waste Recycling Program offers a unique solution for electronic waste. Standing out as a one-of-a-kind program in America, this pioneering initiative holds customers responsible for paying an extra sum during purchases of electronics equipped with screens.

The accrued fees from these transactions are then routed to e-scrap organizations that are certified by the campaign’s standards. This ensures responsible collection and recycling methods for covered electronics.

Many Electronics Accepted

A plethora of electronic equipment is eligible for the program, from CRT TVs and monitors to portable DVD players, Laptops, LCD tablets, LCD smart displays and OLED display devices, with plasma TVs equipped with projection models being exempt from the service.

As of July 1, 2022, compensation beneficiaries engaged in recovery and recycling efforts will be given an amount of $0.85 per pound for CRT material. In addition, non-CRT material will be granted a slightly higher amount standing at $1.03 per pound.

CalRecycle Pushes for Increases

CalRecycle is urging an increase in rates by July 1, 2023 due to several factors, including a shortage of workers, the ongoing conflict in Ukraine, long-term effects from COVID-19, and continuing high price hikes. The proposed rates for CRT material are $0.98 per pound and $1 for other materials.

“One of the few bright spots for the recycling industry in recent years has been the rising value of scrap metal,” CalRecycle mentioned in its proposal. “The spot price of copper, aluminum, gold, and silver – materials found in the frames and circuit boards of electronic devices – spiked in 2021 and are still well above pre-pandemic values. However, this rising revenue source was not enough for approved recyclers to keep pace with the rising costs of fuel, labor and other overhead.” 

State officials have recently conducted an analysis that highlights a surge in recovery costs since 2016. The report indicates that about 50 percent of small CRT operations and 31 percent of non-CRT operations faced net expenses beyond the prevailing recycling payment rates. In addition to this statistic, it was found that nearly 38 percent of all collection operations encountered recovery costs significantly higher than the usual industry standard.

A Significant Decrease in Recycled Items

The quantity of recycled covered electronics decreased significantly to only 63 million pounds by the year 2022. This amounts to a noteworthy decline from its peak volume of 220 million pounds, which occurred just eight years earlier.

Over the years, CalRecycle has had to revise its rates periodically and has done so in 2014, 2016, 2018, 2020 and most recently in 2022. The organization intends to review its recommendation on raising rates further, due to factors like those faced previously, at its upcoming public meeting on May 16.

As the future progresses, CalRecycle’s mission seeks to, “Protect California’s environment and climate for the health and prosperity of future generations through the reduction, reuse and recycling of California resources, environmental education, disaster recovery and the transition from a disposable to a fully circular economy.”