E-Waste: Whose Problem Is It?

As more states mandate e-recycling, the financial burden is shifting from consumers to manufacturers

by Olga Kharif

In a movement that may make it easier for consumers to recycle old computers and TVs, states are stepping up pressure on electronics manufacturers to assume responsibility for the millions of tons of e-waste discarded each year.

In mid-2007, Minnesota implemented a law that requires manufacturers to collect and recycle an equivalent of 60% of the weight of electronics they sold in the state the previous year. A different e-recycling law takes effect in Oregon on Jan. 1, 2009. Minnesota and Oregon are among nine states that have passed e-recycling laws in the past five years that require manufacturers to collect and recycle gear including television sets, portable DVD players, computer monitors, and cell phones—or to pay someone else to do the job. New York City and the state of Virginia are on the cusp of following suit.

The legislation represents a sea change from just a few years ago, when consumers bore most of the financial and logistical responsibility for recycling used electronics, if they recycled at all. In 2005, the most recent year for which data is available, 86% of discarded electronics, or 2.2 million tons, ended up in landfills, according to the Environmental Protection Agency. When such materials aren't disposed of properly, toxins like mercury and lead can seep into water and soil.

Pushing Up Price Tags

Now, the electronics manufacturers are being asked to set up collection and take-back operations, though in some cases the consumer is still paying all or part of the cost. California, the first state to mandate electronics recycling, adds $6 to $10 to the price of certain electronics sold in retail stores to fund e-recycling. In other cases, the maker absorbs the expense. "The policy debate [over e-recycling] has been largely finalized," says David Thompson, who runs Electronic Manufacturers Recycling Management (MRM), a joint venture that handles recycling for the 14 companies, including Toshiba and Panasonic, it comprises. "And the cost of recycling is going to be internalized by manufacturers into the cost of the product."

Hewlett-Packard (HPQ), the world's largest maker of computers, collects 4.5 million to 5 million pounds of electronics in the U.S. a month. The cost "is often pennies for new products sold," says Renee St. Denis, director of the company's nationwide recycling program. In Minnesota, HP is able to comply with state regulations by setting up collection points in the state's sprawling malls. It often makes pickup of used equipment part of the contract with corporate customers.

A Struggle for TV Manufacturers

Smaller manufacturers that sell fewer machines don't have it as easy. MRM began wih only three manufacturers: Toshiba, Sharp, and Panasonic. Other companies are in talks to join. Many electronics manufacturers enlist the help of outside recyclers. Sony (SNE), for one, hooked up with Waste Management (WMI), which has a collection location in every state.

TV makers may face the biggest hurdles of all, especially in the coming months, with the early 2009 advent of a U.S. regulation that will encourage many consumers to purchase digital TVs, discarding old machines that pick up so-called analog signals. While manufacturers of PCs can often recycle some parts and even refurbish newer units and resell them at a profit, a TV costs between $12 and $15 to recycle, Thompson says. "My guess is, TV manufacturers are going to struggle to meet these requirements," Thompson says.