D. Authorized brokers: Several entities have been operating as brokers under E-Cycle Wisconsin since the program began. The proposed rule defines the term “authorized broker” as a person that provides services to registered manufacturers and registered recyclers for the purpose of cooperation under s. 287.17 (2) (b), Wis. Stats., and that complies with the notification requirement at s. NR 530.10 (2), Wis. Adm. Code. The only substantive change from existing practices is a requirement that registered recyclers that purchase recycled weight (often called “paper weight”) from other registered recyclers would be required to complete a broker form, as well as the registered recycler form. E. Electronics retailers: The proposed rule provides more information on how retailers may meet the customer education requirements in s. 287.17 (9), Wis. Stats. To meet the customer education requirement, retailers may include information on receipts for covered electronics about the electronics disposal bans and how to recycle eligible electronics. This could include linking to the department’s website. In brick-and-mortar stores, this information could also be posted prominently in either the store’s electronics section or by registers. F. Clarifying definitions of covered electronic devices: The proposed rule clarifies that components of video game systems, such as gaming consoles, are covered electronic devices if they meet the definition of “consumer computer” under s. 287.17 (1) (e), Wis. Stats. This would require manufacturers of these devices, the modern versions of which have much the same functionality as conventional computers, to register their brands, pay annual registration fees if applicable, and meet annual recycling targets based on the weight of these devices sold to Wisconsin households and covered schools. G. Addition of eligible electronic devices: The proposed rule adds three categories of devices to the list of eligible electronic devices under s. 287.17 (1) (gs), Wis. Stats., based on the department’s determination under s. 287.17 (10) (i), Wis. Stats., that the disposal or burning of these devices in a solid waste facility may be harmful to human health or the environment, due primarily to the fire risk posed by lithium ion and other rechargeable batteries these devices typically contain. The device categories are a telephone with a video display, a telephone accessory operated by a battery, and a component of a video game system or a portable hand-held video game device operated by a battery that does not meet the definition of a computer monitor or consumer computer. Telephones with video displays are already banned from landfills and incinerators under s. 287.07 (5), Wis. Stats., and the other two categories of devices are accessories to electronics that are or would be banned from landfills and incinerators. Adding these electronics as eligible electronic devices under E-Cycle Wisconsin will further facilitate and encourage their recycling and prevent them from causing fires during solid waste collection, transfer and disposal activities. 6. Summary of, and Comparison with, Existing or Proposed Federal Statutes and Regulations: There is no existing or proposed federal regulation for electronics recycling.
7. Summary of Comments Received on the Statement of Scope and How the Agency Took Those Comments into Account in Drafting the Proposed Rule: The department did not receive any comments on the statement of scope for this rule.
8. Comparison with Similar Rules in Adjacent States: Four other Midwest states (Illinois, Indiana, Michigan and Minnesota) have electronics take-back laws. Iowa does not have a similar law. In all four, all collectors and recyclers receiving and processing residential e-waste are required to register with the take-back programs (the programs equivalent to E-Cycle Wisconsin). In contrast, Wisconsin’s statute only requires collectors and recyclers participating in the manufacturer-funded E-Cycle Wisconsin program to register with the department.
Two of these states require recyclers to separately obtain a license or permit.
— Minnesota electronics recyclers are required to obtain a “permit by rule” as solid waste facilities, which requires a simple application and a sign-off by local governments that they have met zoning requirements. OFR is not required.
— Indiana issues permits to electronics recyclers that have 23 tons or more of material on-site for more than 5 days. The permits must be renewed every 5 years and require owner financial responsibility ($200/ton for material on-site, with the state as the beneficiary).
9. Summary of Factual Data and Analytical Methodologies Used and How Any Related Findings Support the Regulatory Approach Chosen: The E-Cycle Wisconsin program began in 2010, and the department receives and analyzes annual reports from registered collectors, recyclers and manufacturers, and brokers. The department also conducts on-site inspections of registered collection sites and recyclers, and in-store and online inspections of electronics retailers. The department used data from these reports and inspections to identify areas where additional clarifications or requirements could improve the program’s function and efficiency and provide a more level playing field for participants.
There are currently 16 recyclers registered with E-Cycle Wisconsin, 6 located in Wisconsin and 10 based in other states. The department regularly requests and reviews paperwork from all registered recyclers to verify closure cost estimates and OFR methods and amounts. The department used this data to inform adjustments to OFR requirements in both ch. NR 520 and the new ch. NR 530, Wis. Adm. Code. The department also reviewed estimated or actual cleanup costs from enforcement cases related to electronics mismanagement since 2007.
In addition, the department gathered information to inform these rule changes at several E-Cycle Wisconsin stakeholder meetings. At the most recent E-Cycle Wisconsin stakeholder meeting in May 2018, participants were positive about the electronics recycling law, but noted several areas of concern, including a need for more actions to deter bad actors; the lack of affordable, convenient recycling for some state residents; a lack of consumer awareness about the need to responsibly recycle electronics; and economic and safety issues the changing electronic waste stream has brought to collectors and recyclers.
10. Analysis and Supporting Documents Used to Determine the Effect on Small Business or in Preparation of an Economic Impact Report: The proposed rule requires a solid waste processing plan of operation for electronics dismantling and processing activities. This would entail a one-time cost for some facilities, including small businesses, which is addressed in Section 11 of this board order below. These facilities would also be required to obtain an annual license; however, the department would waive annual licensing fees, as it currently does for other solid waste processing facilities with a primary purpose of recycling. Some of these costs could be offset by attracting customers that are seeking to work with department-licensed facilities, to ensure electronics are legitimately recycled.
The department considered cost estimates from industry sources and department experience with other solid waste processing facilities in preparation of the economic impact analysis. This included the following:
— The department reviewed existing owner financial responsibility documents for registered E-Cycle Wisconsin recyclers to determine whether any of these recyclers would need to make changes based on the proposed rule language.
— Department staff experience was used to estimate the average number of hours each electronics recycling facility’s staff would spend to obtain a solid waste processing license, and U.S. Bureau of Labor wage data was used to estimate costs for facility staff time.
— The department reviewed a list of known electronics processing facilities and estimated the number that were likely to meet the definition of a small business, based on department staff knowledge of the businesses, including through past inspections.
11. Effect on Small Business (initial regulatory flexibility analysis): The department estimates that approximately 75% of Wisconsin electronics processing facilities affected by the rule, or approximately 20 facilities, would be small businesses. The department estimates these businesses would have aggregate one-time costs of $15,000-$24,000 (or an average of $750 to $1,200 per facility). They would not be required to pay annual licensing fees to the department.
The proposed rule includes exemptions from solid waste processing license requirements for facilities that process fewer than 25 electronic devices per year. The department will also waive annual solid waste processing license fees for all facilities.
12. Agency Contact Person: Sarah Murray, Wisconsin Department of Natural Resources, PO Box 7921, Madison, WI 53707-7921; Sarah.Murray@wisconsin.gov; (608) 264-6001 13. Place where comments are to be submitted and deadline for submission: An online hearing was held on June 28, 2021. Comments were accepted through July 7, 2021.
RULE TEXT
Section 1 NR 500.03 (71g), (71m) and (71r) are created to read:
NR 500.03 (71g) “Electronic device” has the meaning specified under s. 287.17 (1) (gm), Stats., but does not include a major appliance, as defined under sub. (136), or a motor vehicle. (71m) (a) “Electronics processing” means processing electronic devices for use in manufacturing processes or for recovery of usable materials and includes processing electronic devices or components derived from electronic devices by disassembling, baling, crushing, grinding, and shredding.
(b) “Electronics processing” does not include any of the following:
1. Destruction by incineration or other processes.
2. Land disposal of recyclable materials.
3. Reuse, repair, or any other process through which an electronic device is returned for use in its original form.
4. Removal of an electronic device from another device, such as from a major appliance or motor vehicle.
5. Hand disassembly of an electronic device in an educational setting for educational purposes.
6. Hand disassembly of a waste electronic device generated by a household on the property where it is generated.
(71r) “Electronics processing facility” means a solid waste processing facility that accepts electronic devices or components derived from electronic devices for the purpose of electronics prcoessing.
Section 2 NR 500.03 (203) is renumbered NR 500.03 (203) (a) and amended to read:
NR 500.03 (203) (a) “Salvageable material” means junk cars, machinery or equipment, scrap metal, or other junk or scrap materials which that are of further usefulness mainly as a raw material for reprocessing, or as imperfect stock from which replacement or spare parts can be extracted.
Section 3 NR 500.03 (203) (b) is created to read:
NR 500.03 (203) (b) “Salvageable material” does not include electronic devices as defined under sub. (71g).
Section 4 NR 502.04 (6) Note is created to read:
NR 502.04 (6) Note: Requirements for closure cost estimates for these facilities are found under s. NR 520.07 (2m). Section 5 NR 502.05 (3) (a) is amended to read:
NR 502.05 (3) (a) Storage facilities utilizing storing major appliances, electronic devices, or furniture, or that utilize containers such as lugger boxes or rolloffs for solid waste storage serving that serve apartments, commercial establishments, business establishments, and industries which that are located on the premises served, provided the facility complies with the performance standards and closure requirements inunder s. NR 502.04 (1) and (3) (a) and (b) and the operational requirements listed under sub. (5). Section 6 NR 502.06 (2) (ag) is created to read:
NR 502.06 (2) (ag) Services for the collection and transportation of only waste electronic devices, or components derived from electronic devices, destined for reuse or recycling that comply with general operational requirements under sub. (4) (b), (d), (e), (f), and (g).
Note: A container that otherwise contains only waste electronic devices may contain de minimis amounts of packaging or contamination.
Section 7 NR 502.06 (2) (am) is amended to read:
NR 502.06 (2) (am) Services for the collection and transportation of the materials listed inunder s. 287.07 (3) and (4), Stats., or non-hazardous materials derived from electronic devices, after the materials have been processed for reuse or recycling by conversion into a consumer product or a product whichthat is used as a raw material in a commercial or industrial process. Section 8 NR 502.06 (2) (L) is created to read:
NR 502.06 (2) (L) The operation of a vehicle owned or leased by the United States postal service or other parcel carrier service when solid waste constitutes an incidental portion of the carrier's business, if the solid waste is handled in accordance with all applicable state and federal regulations.
Section 9 NR 502.07 (1) (b), (c), (cm), and (2) (a) are amended to read:
NR 502.07 (1) (b) Unless exempt under sub. (2), (2d), (2f), or (2m), owners and operators an owner or operator of a new or expanded solid waste transfer facilitiesfacility shall comply with initial site inspection requirements inunder s. NR 502.04 (2) and demonstrate compliance with the locational criteria listed under sub. (3). (c) Unless exempt under sub. (2), (2d), (2f), (2m), or (2r), no person may operate or maintain a solid waste transfer facility unless the person has received approval of a plan of operation as specified inunder sub. (4).
(cm) Unless exempt under sub. (2), (2d), (2f), or (2m), no person may operate or maintain a solid waste transfer facility unless the person has obtained an operating license from the department.
(2) (a) Containers that do not hold only waste electronic devices shall be leak-proof and manufactured of nondegradable material such as metal, plastic or concrete.
Section 10 NR 502.07 (2) (am) is created to read:
NR 502.07 (2) (am) Containers or packaging material holding only waste electronic devices shall be adequate to prevent breakage and spills, compatible with the contents, and manufactured of material that will remain structurally sound for the length of time material is stored. Electronic devices shall be stored in a manner that will prevent damage from weather, theft or vandalism.
Note: A container that otherwise contains only waste electronic devices may contain de minimis amounts of packaging or contamination.
Section 11 NR 502.07 (2) (c) is amended to read:
(c) Containers that do not hold only waste electronic devices shall be removed or emptied at least once per week and more frequently if conditions warrant.
Section 12 NR 502.07 (2) (cm) and (2d) are created to read:
(cm) A facility shall demonstrate that containers, pallets or other packaging material holding only waste electronic devices, along with any waste electronic devices stored outside of a container, are removed or emptied at least once per year.
(2d) Exempt electronics transfer facilities. A facility for the transfer of waste electronic devices intended for recycling that is not exempt under sub. (2) shall be operated and maintained in a nuisance-free manner and comply with the performance standards and closure requirements under s. NR 502.04 (1) and (3) (a) and (b), but is exempt from all other requirements of this chapter, provided the facility is operated and maintained in conformance with all of the following practices: (a) Containers or packaging material shall be adequate to prevent breakage and spills, compatible with the contents, and manufactured of material that will remain structurally sound for the length of time material is stored. Electronic devices shall be stored in a manner that will prevent damage from weather, theft or vandalism.
(b) A facility shall demonstrate that containers, pallets or other packaging material holding only waste electronic devices, along with any waste electronic devices stored outside of a container, are removed or emptied at least once per year.
