Regulations: Title 14, Natural Resources--Division 7, CIWMB

Chapter 8.2. Electronic Waste Recovery and Recycling

Article 2.0. Electronic Waste Payment System--Applicability and Limitations, Document Submittals, Records, Audits and Net Cost Report

Section 18660.6. Applicability and Limitations.
(a) Limitations on the types of CEWs eligible for payments:

(1) An approved collector may request recovery payment only for the types of CEWs specified by DTSC that are transferred to an approved recycler by the collector.

(2) An approved recycler may claim recycling payment only for the types of CEWs specified by DTSC that are received from an approved collector and are cancelled by the recycler.

(3) A registered manufacturer may claim manufacturer payment only for the types of CEWs specified by DTSC that the manufacturer takes back for recycling.

(b) Limitations on the timeframes eligible for payments:

(1) An approved collector, an approved recycler, or a registered manufacturer shall not receive payment for any CEWs transferred from a California source before January 1, 2005.

(2) An approved collector shall not request recovery payments from recyclers for transfers that occur prior to the approval of the collector's application by the CIWMB.

(3) An approved recycler shall not claim recycling payments from the CIWMB for CEWs cancelled prior to the approval of the recycler's application by the CIWMB.

(4) A registered manufacturer shall not claim manufacturer payments from the CIWMB for recycling that occurs prior to the manufacturer's registration with the CIWMB.

(c) Limitations on the Sources of CEWs and CEWs eligible for payments:

(1) Only CEWs resulting from a California source are eligible for recovery, recycling, or manufacturer payments.

(2) CEWs owned by a person in California, but used entirely outside of California are not eligible for payments.

(3) Source-anonymous CEWs, documented pursuant to Section 18660.20(j)(1)(E) of this Chapter, are eligible for recovery and recycling payments if:

(A) The source-anonymous CEWs result from load check activities as defined in Section 18660.5(a)(26) conducted at permitted solid waste facilities whose operator is an approved collector or, if not an approved collector, the source-anonymous CEWs are directly transferred from the permitted solid waste facility to an approved collector; or

(B) The source-anonymous CEWs result from illegal disposal clean-up activities conducted by an approved collector who is a local government or its designated approved collector; or

(C) The source-anonymous CEWs result from illegal disposal on property owned or managed by an approved collector.

(4) CEWs are transferred to a designated approved collector are not eligible for payments unless the CEWs are accompanied by applicable source documentation pursuant to Section 18660.20(h) of this Chapter.

(d) Limitations on the ability of collectors and recyclers to charge a fee:

(1) If the recovery payment from a recycler does not fully cover the net cost of CEW recovery, and the collector establishes a cost-free opportunity for a California source to transfer CEWs to the collector, then an approved collector may charge a fee for CEW recovery.

(2) If the recovery payment from a recycler fully covers the net cost of CEW recovery, an approved collector shall provide CEW recovery at no charge to California sources or the CIWMB may revoke approval and direct recyclers to deny recovery payments to the collector.

(3) If the recycling payment from the CIWMB does not fully cover the net cost of CEW recycling, an approved recycler may charge a fee for CEW recycling.

(4) If the recycling payment from the CIWMB fully covers the net cost of CEW recycling, an approved recycler shall provide CEW recycling at no charge to approved collectors or the CIWMB may revoke approval and deny recycling payments to the recycler.

(e) Limitations on recovery payments:

(1) An approved recycler shall make recovery payments at the rate specified in Section 18660.33 of this Chapter to approved collectors for all CEWs transferred to the recycler and that are accompanied by applicable source documentation pursuant to Section 18660.20(h) of this Chapter.

(2) The CIWMB shall revoke a recycler's approval and deny recycling payments to a recycler that fails to make recovery payments to approved collectors as specified in this Chapter.

(3) An approved recycler shall not make the recovery payments as specified in this Chapter to collectors who are not approved pursuant to this Chapter.

(4) An approved recycler may make other types of payments, not provided for under this Chapter, to a collector regardless of the collector's approval status.

(5) An approved recycler shall not provide recovery payments to a collector other than the approved collector that transfers the CEWs to the recycler, but nothing limits the collectors involved in prior transfers from negotiating payments among themselves unrelated to the recovery payment provisions of this Chapter.

(6) An approved collector is eligible for recovery payments only if the collector establishes a cost-free opportunity for a California source to transfer CEWs to the collector.

(7) An approved collector is entitled for recovery payments only for CEWs transferred to the recycler that are accompanied by applicable source documentation pursuant to Section 18660.20(h) of this Chapter.

(8) The approved collector shall repay the approved recycler the amount of recovery payment that was paid if an approved collector has received recovery payment from an approved recycler for which the approved collector was not entitled.

(f) Limitations on recycling payments:

(1) The CIWMB shall make recycling payments only to approved recyclers who:

(A) Cancel CEWs using cancellation methods as specified in Section 18660.32 of this Chapter.

(B) Document cancellation and meet the other requirements of this Chapter.

(2) The CIWMB shall not make recycling payments to a recycler other than the approved recycler that cancels the CEWs, but nothing limits the recyclers involved in subsequent transfers from negotiating payments among themselves unrelated to the recycling payment provisions of this Chapter.

(3) The CIWMB shall not make recycling payments for reuse of either a whole CEW or of a partially disassembled CEW, such as a CRT with an attached yoke.

(g) Limitations in relation to current business practices:

(1) The CIWMB shall not limit the ability of approved collectors and approved recyclers to transfer or not transfer CEWs to or from any party.

(2) The CIWMB shall not limit the ability of approved collectors and approved recyclers from entering into contracts with each other or other parties.

(3) The CIWMB shall not limit the ability of collectors to recover CEWs or recyclers to recycle CEWs without participating in the system described in this Chapter.

(4) If collectors wish to receive recovery payments or recyclers wish to receive recycling payments, then they must meet the requirements in this Chapter.

(h) Limitations on recycling payments on exported CEWs and the disposition of treatment residuals:

(1) The CIWMB shall not approve recyclers located outside the State. CEWs sent to and cancelled by unapproved recyclers are not eligible for payments pursuant to this Chapter regardless of the location of the unapproved recycler.

(2) If treatment residuals are disposed to land, water or air, then a recycler shall not be eligible for recycling payments for the original CEWs unless the treatment residual is not economically feasible to recycle and/or cannot be recycled because it would pose a hazard to public health, safety or the environment.

(i) Limitations on the manufacturer payment system:

(1) The CIWMB shall not register any entity other than a manufacturer as defined in Section 42463(n) of the Public Resources Code to be a registered manufacturer.

(2) The CIWMB shall not make manufacturer payments to any entity other than a registered manufacturer.

(3) A registered manufacturer shall only claim payment for, and the CIWMB shall only make manufacturer payments for, CEWs received from California sources that are processed for recycling that in a manner that results in cancellation as specified in Section 18660.32 of this Chapter or an equivalent result.

(4) A registered manufacturer shall not claim payment for, and the CIWMB shall not make manufacturer payments for, CEWs that are reused, repaired, refurbished or otherwise returned to use.

Note:

Section 18660.7. Document Submittals.
(a) A collector, a recycler, or a manufacturer shall prepare and submit applications, registrations, claims and/or reports required pursuant to this Chapter in the manner designated by the CIWMB.

(b) The CIWMB shall only accept collector, recycler or dual entity applications, claims and reports containing all the required information and bearing an original signature of the primary applicant, or a person with signature authority as designated by the primary applicant pursuant to Section 18660.11 of this Chapter.

(c) The CIWMB shall only accept manufacturer registrations, claims and reports containing all the required information and bearing an original signature of the primary registrant, or a person with signature authority as designated by the primary registrant pursuant to Section 18660.35 of this Chapter.

(d) The CIWMB shall provide forms upon request that may be used to meet the requirements for the applications, registrations, and payment claims specified in this Chapter.

(e) A collector, a recycler, or manufacturer shall ensure that applications, registrations, claims, reports and all applicable supporting documentation are accurate, complete, and typed or legibly handwritten in English using permanent ink. A collector or a recycler may void errors only by using a single line through the error. A collector or a recycler shall not use correction fluid, correction tape or erasures for correcting errors on any document required by or submitted to the CIWMB.

Note:

Authority cited:
Sections 40502, 42475(b), and 42475.2, Public Resources Code.

Reference:
Sections 42476, 42477, 42478, and 42479, Public Resources Code.

Section 18660.8. Records.
(a) An approved collector, an approved recycler, or a registered manufacturer shall send written notice to the CIWMB regarding any change in location, or intent to establish a new location, of records required by this Chapter no less than 10 days prior to the change. In the written notice, an approved collector or an approved recycler shall include its name and identification number from the proof of approval, the complete present and potential future address of the location of the records, if applicable, and the names and telephone numbers of the individuals responsible for such records.

(b) All records maintained pursuant to this Chapter must include the books of account that are ordinarily maintained by a prudent business person engaged in the same activity, together with all bills, receipts, invoices, manifests, cash register tapes, or other documents of original entry supporting the entries in the books of account.

(c) An electronic data processing system must have built into its program a method of producing visible and legible records that will provide the necessary information to determine compliance with the requirements of this Chapter.

(d) An approved collector, an approved recycler, or a registered manufacturer shall maintain records for at least three years.

(e) An approved collector, an approved recycler, or a registered manufacturer shall maintain records that are originals, and typed or legibly handwritten in English.

(f) An approved collector, an approved recycler, or a registered manufacturer shall not store records in an unprotected area, in an outside location, in a motor vehicle or in a location where the records are likely to become contaminated, damaged or stolen.

(g) An approved collector, an approved recycler, or a registered manufacturer shall maintain records suitable for examination prepared and retained in accordance with generally accepted accounting principles and good business practice.

(h) If the CIWMB determines that records do not meet the conditions in this Section, the CIWMB may revoke approval and/or deny payments.

Note:

Section 18660.9. Audits.
(a) The CIWMB, or persons authorized by the CIWMB, may conduct audits of approved collectors, approved recyclers, and registered manufacturers to determine compliance with the requirements of this Chapter.

(b) As part of an audit, the CIWMB may do any one or all of the following in relation to CEW recovery or recycling:

(1) Review, examine or investigate any books, records, accounts, and/or documentation.

(2) Observe, review, examine or investigate any on-site activities, operations, processes, CEWs, treatment residuals or other materials.

(3) Observe and inspect transactions.

(4) Verify measurements, counts, weights, and calculations.

(5) Examine and verify revenue, cost and net cost information and calculations.

(6) Use other examination procedures to investigate recovery payments, recycling payments, manufacturer payments, transfers of CEWs or treatment residuals, costs, revenue, net costs, or other activities related to determining compliance with this Chapter.

(c) An approved collector, an approved recycler, or a registered manufacturer shall provide CIWMB staff, or persons authorized by the CIWMB, access to location(s) and/or records for the purpose of audits related to the requirements of this Chapter, and for any or all of the following purposes in relation to CEW recovery or recycling:

(1) To determine compliance with the CIWMB's regulations and with the provisions of the Act.

(2) To determine the accuracy of the information provided in the application for approval or registration.

(3) To determine the accuracy of the information, calculations, weights, counts, and other data upon which claims for payments or payments are based.

(4) For the investigation of complaints related to recovery payments to collectors.

(5) For the investigation of complaints related to the geographic origin of CEWs.

(6) To obtain cost data, revenue data and net cost calculations required for the CIWMB to set and adjust the Standard Statewide recovery payment rate, recycler payment rate and consumer fees.

(7) To obtain sample data to calculate component weight to device weight conversion factors.

(8) To inspect any records required by this Chapter or the Act.

(d) If an approved collector, an approved recycler, or a registered manufacturer fails to provide reasonable access for audits pursuant to this Section, the CIWMB shall do one or more of the following:

(1) Deny approval or registration if a renewal is pending.

(2) Revoke an existing approval or registration.

(3) Recoup monies previously paid by the CIWMB, which were the subject of the audit, accumulated interest, and any associated penalties.

(4) Deny current and future claims for payments.

(e) An approved collector, an approved recycler or a registered manufacturer that must repay monies to the CIWMB based on the results of a CIWMB audit shall pay the entire amount, including the original amount, accumulated interest, and any associated penalties.

(f) An approved collector, an approved recycler or a registered manufacturer shall make any payments, repayments or recoupments in U.S. dollars by check, draft, money order or cashier's check payable to the State of California, Integrated Waste Management Board, or to a designee selected by the CIWMB.

Note:

Authority cited:
Sections 40502, 42475(b), and 42475.2, Public Resources Code.

Reference:
Sections 42475(a), 42476, 42477, 42478, and 42479, Public Resources Code.

Section 18660.10. Net Cost Report.
(a) To adjust the statewide recovery and recycling payment rates, establish future payment schedules and adjust the consumer fees, the CIWMB shall periodically update information concerning the net costs of CEW recovery and CEW recycling.

(b) An approved collector or an approved recycler shall maintain records and provide information for use by the CIWMB in the update on their actual net costs to operate.

(c) An approved collector or an approved recycler shall use the following allowable revenues and costs for use in the calculation of net costs:

(1) Revenues in relation to CEW recovery or recycling, other than the payments required pursuant to this Chapter, including but not limited to:

(A) Up-front revenues received, such as from fees charged.

(B) End-use revenues, such as from commodity values.

(2) Costs in relation to CEW recovery or recycling including, but not limited to:

(A) The actual costs of receiving, handling, processing, storing, transferring and transporting CEWs.

(B) The actual costs of canceling CEWs.

(C) Labor.

(D) Property taxes.

(E) Depreciation.

(F) Utilities.

(G) Supplies.

(H) Fuel.

(I) Insurance.

(J) Interest.

(K) General overhead.

(L) Facilities and equipment rent or lease.

(M) Maintenance.

(N) Transportation.

(O) Handling costs.

(P) Disposition costs.

(Q) A reasonable rate of profit or return on investment.

(R) Marketing, promotion and public education.

(d) An approved collector and approved recycler shall submit to the CIWMB a report on the net costs of recovery and/or recycling for the prior calendar year, including:

(1) An annualized summary of the revenues, costs, and net cost (costs minus revenues) of CEW recovery and/or CEW recycling based on the records maintained pursuant to Sections 18660.20(j)(3) and 18660.21(l)(5) of this Chapter.

(2) Name, identification number and mailing address.

(3) The name and phone number of a contact person for purposes of the report.

(4) The reporting year and date of preparation of the report.

(5) The total annualized revenues excluding recovery and recycling payments received from the CIWMB, plus a list of the types of revenues included in the revenue calculation.

(6) The total annualized costs, plus a list of the types of costs included in the cost calculation.

(7) The total annualized net costs (annualized costs minus annualized revenues).

(8) The net cost per pound of CEW recovery and the net cost per pound of CEW recycling.

(9) Provide a description of the types of targeted consumers, and the methods of collection used to obtain CEWs from the California sources, including but not limited to:

(A) Drop-off at permanent location,

(B) Temporary event drop off,

(C) Pick up at source,

(D) Pick up at handler location,

(E) Curbside collection,

(F) Landfill drop off and or load check.

(10) The signature and title of a person with signature authority for net cost reports as designated pursuant to Section 18660.11 of this Chapter.

(11) The signature block shall state and certify the following statement: "I hereby declare under penalty of perjury that this net cost report, including any and all figures, calculations and accompanying documents has been examined by me and is true, correct and complete."

(12) The date and place of the signing of the report.

(e) An approved collector or an approved recycler shall convert any data captured on a per unit basis to a per pound basis for the purposes of determining revenues, costs and net costs.

(f) The CIWMB may revoke approval and/or deny recycling payments for failure to submit a net cost report, or for the submission of a fraudulent report.

(g) The net cost report shall be submitted to the CIWMB on or before March 1, 2006, and each year thereafter.

(1) The requirement to submit a net cost report subsequent to March 1, 2007, shall be determined by the Board at a public hearing.

(2) Notice of the requirement to submit a net cost report subsequent to March 1, 2007, shall be issued by the CIWMB on or before December 31 of the year proceeding the year in which the report is next due.

(h) In addition to the net cost report described by this Section, an approved collector or an approved recycler may submit test results, studies or other information for the CIWMB to consider when the Standard Statewide Recovery Payment Rate and/or the Standard Statewide Combined Recovery and Recycling Payment Rate is reviewed and, if necessary, adjusted pursuant to Sections 18660.33 and 18660.34 of this Chapter.

Note:

Authority cited:
Sections 40502, 42475(b), and 42475.2, Public Resources Code.

Reference:
Sections 42464, 42475(a), 42476, 42477, 42478, and 42479, Public Resources Code.

Title 14 Home | Regulations Home