TITLE 22 …

                                         TITLE 22

                             EMERGENCY REGULATIONS

  RESTRICTIONS ON THE USE OF HEAVY METALS IN COVERED ELECTRONIC
                              DEVICES

                      Department Reference Number: R-2006-06
           Office of Administrative Law Emergency Number: 06-1221-02E


FINDING OF EMERGENCY

Health and Safety Code section 25214.10.2 grants authority to the Department of Toxic
Substances Control (DTSC) to adopt emergency regulations for implementation of
Health and Safety Code section 25214.10. According to section 25214.10.2, "adoption
of these regulations is an emergency and shall be considered by the Office of
Administrative Law as necessary for the immediate preservation of the public peace,
health and safety, and general welfare."

AUTHORITY AND REFERENCE

Health and Safety Code section 25214.10. This section grants DTSC authority to
prohibit the sale or offering for sale in California of an electronic device containing
certain concentrations of heavy metals if its sale or offering for sale would be prohibited
in the European Union (EU). The proposed regulatory action implements, interprets,
and make specific Health and Safety Code section 25214.10, subdivisions (b), (c), (d),
(e), and (f).

Health and Safety Code section 25214.10.2. This section grants DTSC authority to
adopt emergency regulations for implementation of Health and Safety Code section
25214.10.

Health and Safety Code section 58012 (Added by Gov. Reorg. Plan No. 1, §146, eff.
July 17, 1991.) This section grants DTSC authority to adopt regulations to execute its
duties.

Public Resources Code section 42475.2. This section grants DTSC authority to adopt
emergency regulations for implementation of Statutes 2003, chapter 526 (SB 20).

Public Resources Code section 42465.2. The proposed regulatory action implements,
interprets, and makes specific Public Resources Code section 42465.2, subdivision (b).


INFORMATIVE DIGEST/ POLICY STATEMENT OVERVIEW
Restrictions on the Use of Heavy Metals in Covered Electronic Devices
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Existing Law

"RoHS" is an acronym for "Restriction of the Use of Certain Hazardous Substances."
California's RoHS law is found in section 25214.10 of the Health and Safety Code.
Section 25214.10 requires DTSC to adopt regulations that prohibit "electronic devices"
from being sold or offered for sale in California if the electronic devices would be
prohibited from being sold or offered for sale in the EU on or after their date of
manufacture, to the extent that Directive 2002/95/EC, adopted by the European
Parliament and the Council of the EU on January 27, 2003, prohibits that sale due to the
presence of certain heavy metals. Adoption of the proposed emergency regulation
implements section 25214.10.

The electronic devices subject to the Health and Safety Code section 25214.10
prohibition are "covered electronic devices (CEDs)", defined at Public Resources Code
section 42463, subdivision (f)(1), as follows: "a video display device containing a screen
greater than four inches, measured diagonally." As of November, 2006, DTSC had
identified eight categories of CEDs in its regulations. The list of covered devices is
found in subsection (c), Appendix X, chapter 11, division 4.5, title 22, California Code of
Regulations.

Public Resources Code section 42465.2, subdivision (b) allows the manufacturer of
CEDs to submit written verification to DTSC that demonstrates the manufacturer is in
compliance with EU Directive 2002/95/EC, and any amendments to that Directive. The
manufacturer who obtains DTSC certification of RoHS compliance for its products may
submit abbreviated annual reports to California Integrated Waste Management Board.
Therefore, the adoption of the proposed emergency regulation implements section
42465.2.

Public Resources Code section 42475.2 grants DTSC authority to adopt emergency
regulations for implementation of Public Resources Code section 42465.2 as described
in the paragraph above.

The United States Environmental Protection Agency has not adopted any regulations
prohibiting the sale of CEDs. Hence, there are no federal regulations that are
analogous to the proposed regulations.

Policy Statement Overview

DTSC's objective is to, on or after January 1, 2007, prohibit the sale or offering for sale
of electronic devices that contain four heavy metals (lead, mercury, cadmium, and
hexavalent chromium) in California, if the sale or offering for sale is prohibited in the EU
under Directive 2002/95/EC. DTSC will adopt the EU's maximum concentration values
for these four metals in its regulation implementing Health and Safety Code section
25214.10. DTSC's RoHS regulation will also recognize any exemptions adopted by the
EU for use of lead, mercury, cadmium, or hexavalent chromium that apply to CEDs.
Restrictions on the Use of Heavy Metals in Covered Electronic Devices
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Proposed Regulations

California Code of Regulations section 66260.202 is added to implement Health and
Safety Code section 25214.10. Section 25214.10 prohibits the sale or offering for sale
of a CED in California if the device is prohibited from being sold or offered for sale in the
EU due to the presence of certain heavy metals. This regulation is necessary because
DTSC is required by Health and Safety Code section 25214.10 to adopt regulations that
prohibit the sale or offering for sale of CEDs in California if those CEDs are prohibited
from being sold or offered for sale in the EU by Directive 2002/95/EC, adopted by the
European Parliament and the Council of the EU on January 27, 2003, or by a
subsequent amendment to the Directive.

Section 66260.202, subsection (a), is necessary to establish the prohibition and have it
take effect on January 1, 2007, for the eight categories of CEDs currently identified by
DTSC in its regulations.

Section 66260.202, subsection (b), is necessary to further define the scope of the
prohibition by clarifying that only CEDs that are manufactured on or after January 01,
2007 are subject to its prohibition and, in so doing, provide an appropriate transition
period for manufacturers to adjust their businesses to the imposition of the prohibition.
This subsection also clarifies that existing inventory (i.e., inventory that was
manufactured prior to January 01, 2007) does not have to be removed from the
California market.

Section 66260.202, subsection (c), is necessary to further define the scope of the
prohibition by clarifying that the provisions of this section will not apply to a CED that is
sold or offered for sale in the State only to persons for purposes of resale or offering for
resale to persons outside of the State. For example, the prohibition would not apply to a
distributor located in California who imports CEDs into the State and sells them only for
resale outside California.

Section 66260.202, subsection (d), is necessary to implement Health and Safety Code
section 25214.10, subdivisions (b), (e), and (f). If DTSC does not adopt the exemptions
adopted by the EU through subsection (d), the regulation will require manufacturers to
produce devices for sale in California that meet a different standard than that imposed
by Directive 2002/95/EC, an outcome that is inconsistent with Health and Safety Code
section 25214.10, subdivisions (e) and (f)(1). Furthermore, if DTSC does not adopt the
exemptions synchronously with the EU then the regulation will not implement (and will
be inconsistent with) Health and Safety Code section 25214.10, subdivision (b) because
that subsection requires DTSC to adopt a regulation that not only conforms to the
original Directive, but that also conforms to the Directive "as amended thereafter."

Subsection (e) is necessary to implement the mandate of Health and Safety Code
section 25214.10, subsection (d), to exclude from the regulations those devices that
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would otherwise be prohibited from sale or being offered for sale in California based
solely on metals used to meet consumer, health or safety requirements.

STATEMENT OF FACTS SUPPORTING FINDING OF EMERGENCY

DTSC finds this emergency rulemaking an emergency as a matter of law pursuant to
Health and Safety Code section 25214.10.2. According to that section, "adoption of
these regulations is necessary for the immediate preservation of the public peace,
health and safety, and general welfare."

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) COMPLIANCE

DTSC has found this rulemaking project to be exempt under CEQA. A draft of the
Notice of Exemption (NOE) is available for review with the rulemaking file and the NOE
will be filed with the State Clearinghouse when the regulations are adopted.

FISCAL IMPACT ESTIMATES

Mandates on Local Agencies and School Districts: DTSC has made a preliminary
determination that adoption of these regulations will create no new local mandates.

Estimate of Potential Cost or Savings to Local Agencies Subject to
Reimbursement: DTSC has made a preliminary determination that adoption of these
regulations will not impose a local mandate or result in costs subject to reimbursement
pursuant to part 7 of division 4, commencing with section 17500, of the Government
Code or other nondiscretionary costs or savings to local agencies.

Cost or Savings to Any State Agency: DTSC has made a preliminary determination
that the proposed regulations will have no impact on State revenue or costs.

Cost or Savings in Federal Funding to the State: DTSC has made a preliminary
determination that the proposed regulations will have no impact on Federal revenue or
costs.