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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

1/21/08

HB

SHORT TITLE State Electronics Procurement & Recycling

SJM 11

ANALYST Aubel

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08

FY09

FY10 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

.01* Recurring

(Parenthesis ( ) Indicate Expenditure Decreases)

*Indeterminable

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Environment Department (NMED)

Administrative Office of the Courts (AOC)

Higher Education Department (HED)

General Services Department (GSD)

No Response

Department of Information Technology (DoIT)

SUMMARY

Synopsis of Bill

Senate Joint Memorial 11 requests that the Secretary of the Environment convene a task force to

develop guidelines for environmentally preferable electronics procurement and recycling by state

agencies. The task force should be composed of representatives of the Environment Department,

Senate Joint Memorial 11 – Page 2

Department of Information Technology, General Services Department, Administrative Office of

the Courts, Legislative Council Service, New Mexico colleges and universities, recycling

coalitions, private computer industry, electronic scrap recyclers and processors, the state’s two

national laboratories, and other entities deemed necessary.

The task force will review existing state electronic procurement procedures; study programs in

other states that may serve as a model; document actual amount of electronics used in state

agencies; develop a statewide electronic waste recycling contract template; and present findings

and recommendations to the appropriate legislative committee by December 1, 2008.

FISCAL IMPLICATIONS

The New Mexico Environment Department (NMED) notes that it has sufficient resources to

perform this task and SJM 11 will have no major fiscal impact. However, no information was

provided on the cost to purchase related tools, such as the Electronic Product Environmental

Assessment Tool (EPEAT), or any additional cost to the state for purchasing “green" electronics

versus traditional models. In addition, the cost savings noted for lower energy use as well as

health costs for state employees (due to the reduction of toxic materials) were not quantified and

would presumably be part of the analysis performed by the task force.

SIGNIFICANT ISSUES

The technology explosion has created an increase in electronic waste or “e-waste." State

agencies represent one of the largest purchasers and disposers of electronic equipment

(computers, printers, faxes, copy machines, telephones, etc.) in the state.

Electronic equipment typically contains toxic substances such as lead, mercury, brominated

flame retardants, and polyvinyl chlorides that may pose health and environmental risks,

especially if not recycled properly.

State agency procurement and recycling guidelines will provide agencies throughout the state

information and access to more environmentally friendly or “greener" electronics and proper

recycling of e-waste. According to the responding agencies, the systematic replacement and

recycling of obsolete electronics with greener electronics promise to reduce energy costs, create

less greenhouse gas, reduce worker exposure to toxic constituents, and potentially invigorate the

electronic recycling industry in New Mexico.

PERFORMANCE IMPLICATIONS

The task force will present the finding and recommendations to the appropriate legislative

committee no later than December 1, 2008.

ADMINISTRATIVE IMPLICATIONS

According to NMED, the Solid Waste Bureau has the resources and expertise to research

existing electronic procurement policies in New Mexico, research electronic procurement

policies in other states that may serve as a model for New Mexico, convene and participate in the

task force meetings, create a record of the task force meetings, correspond with the task force,

create an e-waste recycling contract template, and compile and prepare findings and

Senate Joint Memorial 11 – Page 3

recommendations for the appropriate legislative committee. GSD notes its Purchasing Division

will require staff time to assist the task force in compiling information about state agency use of

electronics.

OTHER SUBSTANTIVE ISSUES

There are tools available that could assist the task force in determining which electronics are

more environmentally-friendly or “greener." Electronic Product Environmental Assessment Tool

(EPEAT) is a system to help purchasers in the public and private sectors evaluate, compare and

select desktop computers, notebooks and monitors based on their environmental attributes.

According to a study released by the Green Electronics Council in July 2007, EPEAT promises

to save energy, reduce air and water air pollution, reduce both use of toxic materials and disposal

of hazardous waste.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

State agencies will not have uniform guidelines for the procurement and recycling of the

electronic equipment. Some state agencies may not have a cost effective and environmentally

sound method of purchasing and recycling electronic equipment. NMED notes that if e-waste is

not managed properly, state agencies may be out of compliance with hazardous waste

regulations.

MA/bb