E-Waste: Whose Problem Is It?

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State and city governments aren't the only legislative bodies considering electronic waste mandates. Senator Ron Wyden (D-Ore.) is among eight congressmen circulating a proposal that would require not only manufacturers but retailers to establish a nationwide e-recycling program. The program would reward participants for exceeding minimum collection goals. Today, many electronics retailers such as Best Buy (BBY) only accept TVs from customers who purchase new equipment from its stores. "We think federal legislation is a great idea," says St. Denis.

A Boon for Nonprofits

Recycling companies that collect fees for handling discarded equipment are among the biggest beneficiaries of e-cycling mandates. In the first 18 months after California began requiring consumers to recycle electronics, Earth Protection Services saw the number of units collected in the state triple, says Greg Sampson, who until recently was a vice-president at Earth Protection. "I think it's going to increase all recyclers' revenues, because we'll see people cleaning out their garages and basements," he says. As Oregon readies to implement its e-waste program in 2009, the number of recyclers in the state has more than doubled in the past two years, he estimates.

Nonprofits and second-hand goods stores like Goodwill Industries benefit as well. Starting in 2004, Dell (DELL) began providing training and seed money to select Goodwill stores in seven states, including California and Texas, to take in and refurbish old computers. "Our approach is to try and make recycling as easy as a purchase," says Mark Newton, an environmental strategist at Dell.

The e-waste gravy train may not last, though. California, for one, may consider lowering fees it pays recyclers, or increase fees for consumers, says Jeff Hunts, manager of California's e-waste programs. Last year, the amount of electronics recovered by the state rose 46%, to more than 185 million pounds. The state had paid nearly as much money for recycling—$88 million—as it collected last year.

For now, though, the e-waste burden on consumers is getting lighter, at least in some states, and for the sake of the environment, that's a good thing.

Kharif is a senior writer for BusinessWeek.com in Portland, Ore.