Washblog

Fact versus Fiction on E-Waste bills

I stumbled across some good points regarding the E-Waste legislation making its way through the House and Senate (HB 2662, and SB 6428). If you are unfamiliar with the E-Waste bills, the bills essentially establish a statewide recycling system for TVs and computers that will be available at no charge to all households, small businesses, small governments, school districts, and charities. The senate bill was heard recently in the Ways and Means committee. There appears to be strong bi-partisan and business support.

Bill opponents misconstrued the bill at the Ways and Means hearing and in their materials presented to the legislators. Looks like it is time to take a minute and address their falsehoods and get the facts straight.

Falsehood: SSB 6428/HB 2662 would result in a tax on small governments, charities and small businesses.
What the E-Waste bill really does: There is no tax or fee of any kind. The program will be paid for by electronics manufacturers and by retailers who carry their own line of electronic products. The costs of the program will become a cost of doing business that will then be embedded in the product price. According to Hewlett Packard, the company will cover these costs by raising wholesale prices by a few cents on the products it sells nationwide. Small governments, charities and small businesses will save money if this bill is passed, and for that reason are big supporters.

Falsehood: The program is unworkable because it requires manufacturers to track sales of products in Washington State.
What the E-Waste bill really does: Manufacturers will be responsible for recycling their fair share of electronics, based on the percentage of their products in the waste stream. This amount will be determined through a statistical sampling that will occur once a year, conducted by the Department of Ecology, not manufacturers. Because this system is based on the waste stream and not on initial sales or market share, there is no requirement that manufacturers track shipments or in any way quantify sales. This is a simple and streamlined way to apportion costs that ensure everyone is paying only for their fair share.

Opponents would prefer a government-run program funded by recycling taxes or fees collected at retail outlets. Such a program will not address the illegal dumping problem that results from consumers having to pay a fee to properly dispose of electronic items. The E-Waste bill makes use of private market forces and private sector know-how to develop a smart, efficient and effective system, one that will reduce illegal dumping and achieve results.

Update [2006-2-9 9:53:24 by Brian]: - Jon over at Evergreen Politics has the good news: SB 6428 passed with a solid bi-partisan majority 41-8....now on to the house.

< The Horse They Rode In On: Clueless-ness on the Mountain Top ... Common Sense in the Valley | Developer Loophole Initiative filed by 'Farmers' >
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If my understanding of this bill(s) is correct, I totally support it.  I believe it's the same model being adopted in Germany and California.

The E-Waste bill makes use of private market forces and private sector know-how to develop a smart, efficient and effective system, one that will reduce illegal dumping and achieve results.

Exactly.  When the manufacturers are responsible for the entire product lifecycle, they'll maximize for overall efficiency.  Taken to it's logical conclusion, businesses shift focus from production of goods to provider of services.  The book Natural Capitalism covers all this in great detail.

This is the third millenium.  Rational (honest) debate is no longer about mythical "free markets" and "deregulation" vs onerous "governmental regulation".  Rather, it's about designing, implementing, and enforcing well-designed markets to better achieve policy objectives.  Said another way, tweaking the incentives to reward desired behavior.  The book Reinventing the Bazaar is a pretty good laypereson's guide to modern economic theories about markets.

I get so pissed off hearing about the costs of environmental regulations.  Nonsense like "the Kyoto Protocol will hurt the economy".  That's complete crap.  From people (e.g. The Economist) who should know better.

Waste (including pollution) reduces profits.  Ergo, reduce waste (including pollution) to improve profits.

Perhaps the concept is just too counterintuitive.  I must admit that I didn't really "get it" until I saw it in action.  I applied some of those goofy Japanese notions of quality to a software development team.  My team kicked ass.  With fewer resources.  It took awhile for people to buy in.  But once people see it working, there's no going back.  (Unless your company is bought out and your products get tubed.  Oof.)  The very same principles can be applied to any process.

by zappini on Wed Feb 08, 2006 at 05:38:34 PM PST

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