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F I S C A L I M P A C T R E P O R T

SPONSOR Feldman

ORIGINAL DATE

LAST UPDATED

2-4-06

HB

SHORT TITLE

ELECTRONIC WASTE RECYCLING PILOT

PROGRAM

SB 388

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$25.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

New Mexico Department of Environment (NMED)

SUMMARY

Synopsis of Bill

Senate Bill 388 appropriates $25 thousand from the general fund to the New Mexico Department

of Environment (NMED) for expenditure in FY07 to develop marketing, advertising and com-

munity education outreach programs for a voluntary statewide electronic waste collection and

recycling pilot program. The appropriation would be contingent on matching funds or services

on behalf of computer manufacturers and retailers to develop marketing and advertising pro-

grams for the pilot program.

FISCAL IMPLICATIONS

The appropriation of $25 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert to

the general fund.

SIGNIFICANT ISSUES

DFA explained that electronic waste is classified as obsolete or unwanted computers, TVs, and

Senate Bill 388 – Page 2

high tech equipment. These components contain a number of contaminants, such as lead, mer-

cury and polychlorinated biphenyl. These contaminants can be released into a landfill when

components are compacted and crushed. If the landfill is unlined, these contaminants can leach

into groundwater. NMED is working with the computer manufacturers and retailers to divert

electronic waste to recyclers for separation, recycling and reprocessing rather than landfill dis-

posal. The recycling option protects groundwater and extends landfill life.

NMED added that the E-waste Task Force recommended funding from the Legislature, as well

as from computer manufacturers/electronic retailers, for the promotion of pilot programs to be

conducted in 2006 or FY07. SB388 would support the Task Force’s request. Not all e-waste

poses an environmental or health risk; however, some components, such as computer monitors

(CRTs), can release very high levels of lead when crushed or broken. For example, some color

computer monitors can contain as much as four pounds of lead per unit. Television tubes are

pressurized and can explode if mishandled, posing a potential health risk to dismantlers or work-

ers. Other e-wastes may contain mercury, cadmium and arsenic at low levels that can be released

into the environment or groundwater when broken or crushed. Improper management of e-waste

can have significant negative impacts in urban and rural areas in New Mexico due to the large

volume of these materials that require management.

In 1998, the U.S. Environmental Protection Agency (EPA) estimated that e-waste was

approximately four percent of the total solid waste stream in the United States, and

this waste is projected to grow two to three times faster than any other component of

the waste stream.

In 2002, the EPA estimated that every day Americans dispose of 3,000 tons of com-

puters alone.

The EPA also estimates that only about ten percent of e-waste is recycled.

Currently, in New Mexico, some voluntary e-waste collection programs are already established.

The E-Waste Task Force found that a voluntary e-waste pilot-recycling program could be im-

plemented quickly.

ADMINISTRATIVE IMPLICATIONS

DFA indicated the Solid Waste Bureau oversees solid waste facilities and recycling program.

This bill is an extension of existing programs with no significant impact to the Bureau.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

SM14 encourages manufacturers and retailers of electronics to demonstrate their commitment to

e-waste collection and recycling by offering financial support or equivalent resources.

DH/nt