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E-scrap recyclers in California may see an increase in state payments due to a proposed rate increase motivated by several factors, including high inflation. Due to the passage of SB 1215, the amount paid to recyclers to cover the average net costs of collecting and recycling covered products will now occur annually instead of every other year. A number of recent challenges have led the California Department of Resources Recycling and Recovery (CalRecycle) to suggest an increase by July 1, 2023.
Consumers currently pay point-of-sale fees for electronics with screens under California’s Covered Electronic Waste Recycling Program that cover CRT TVs and monitors, LCD TVs and laptops, plasma TVs, LCD smart displays and devices, LCD tablets, portable DVD players, and OLED display devices.
Due to labor shortages, high inflation rates, and several other factors, CalRecycle suggests a rate increase for the second time by July 1, 2023. The proposed increases are $0.98 per pound for CRT material, up from $0.85, and $1.10 per pound for non-CRT material, up from $1.03.
This is not the first time the rates have been raised. CalRecycle has increased e-scrap rates biennially since 2014 for similar reasons.
CalRecycle noted in the proposal that “one of the few bright spots for the recycling industry in recent years has been the rising value of scrap metal. The spot price of copper, aluminum, gold, and silver – materials found in the frames and circuit boards of electronic devices – spiked in 2021 and are still well above pre-pandemic values. However, this rising revenue source was not enough for approved recyclers to keep pace with the rising costs of fuel, labor and other overhead.”
According to a state analysis, 38 percent of all collection operations have a recovery cost above the standard recovery rate, and recovery costs have steadily increased since 2016. Additionally, the state found that about half of small CRT operations and 31 percent of small non-CRT operations have average net costs higher than the existing recycling payment rates.
The proposed increase will be considered at the CalRecycle monthly public meeting May 16.
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