Publication Summary

Ecology is proposing adoption of a new rule implementing Chapter 173-900 RCW. The proposed rule establishes requirements for a convenient, safe and environmentally sound system for collection, transportation and recycling of electronic products in Washington State. Ecology has proposed a rule re-stating and clarifying several of the requirements in the statutes. In reviewing the rule proposal, there are three specific cases that trigger further economic analysis. These areas include definitions, registration procedures for manufacturers, collectors and transporters and Ecology′s interpretation of the administrative fee.

This rule has been reviewed and the direct benefits of the electronic product recycling program exceed the range of the costs for current administrative fees.

For such a program, the estimated willingness to pay is at least $5.4 million per year. This is a low value including only current levels of returns and may eventually be 3 to 6 times higher. The fee cost for Phase 1 is $475,000 for the first 18 months and $220,000 annually thereafter. This creates net benefits of $5 million in the initial year.

A least burden analysis indicates this rule is the least burdensome alternative for those who are required to comply, given the goals and objectives of the statute. During the rule-making process, Ecology considered a variety of approaches for the fee structure. The legislature chose cost internalization of the recycling program (manufacturers internalize the costs of the program in their overall costs of doing business) over other financing methods as it would have the least impact on in-state retailers and their customers.

This rule establishes the administrative fees that will be paid by manufacturers to Ecology to pay for the agency′s administrative, oversight and enforcement costs. The law directed Ecology to "base this fee on a sliding scale that is representative of annual sales of covered electronic products in the state." Ecology determined that unit sales will be the basis for the administrative fee rather than dollar sales and the fee structure is composed of tiers to reduce both the cost and the amount of data gathered annually. The procedures set forth in this rule are effective for the purpose of implementing this rule.