World Reuse, Repair & Recycling Association = WR3A

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1 World Reuse, Repair & Recycling Association = WR3A Mission: Make recycling more affordable by spending less money smashing good stuff and earning more money fixing bad stuff. Means: Fair Trade Recycling, to ensure a properly vetted, audited, transparent, legal and efficient export market, and USA contracts which reward that market. Members: Generators (universities, state government, businesses, municipalities, non-profits), Recyclers ( Pledgers and New Leafers ), and Overseas reuse end markets (BSFs, repair shops, and UNGAID/schools).

2 Fair Trade Recycling Ethical E-Scrap Export Agreements Enforceable Civil Law Contracts Qualifying Export Markets Qualifying USA Exporters QA/QC = Quality Assurance, Quality Control

3 Case Study: Video Display Units Spike in working CRTs from fall in LCD price Mature CRT repair and refurbishing Price point important to 3b3k 3b3k = about 3 billion people earning about 3k per year. 3b3k increasing internet access 10X USA rate Video display is over 50% of price of unit in developing countries.

4 3b3k about 3 billion people make about $3 thousand per year World Population is 6.8b Average income is $7k per year 20% richest of countries earn at least 7k, so average of 80% is $ % richest earn 35K/year average

5 2008 CES Grant Selected 10 countries including USA Burkina Faso, Cameroon, Egypt, Indonesia, Malaysia, Mexico, Nepal, Peru, Senegal (range from $1K $10k per capita, average around 3k) Film of reuse and repair operations

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12 4 Export Categories Fully Functional for Retail or immediate use Working, warrantee, legal for export 2 hour burn in test Functional for Refurbishment, Repair Binding Purchase Order Reconciliation and 3 years record keeping Contract is legal in both countries Enforceable under civil law Recyclable Commodity Clean, uniform, graded (ISRI-RIOS) No Disposal (never to non-oecd) or TAR

13 WR3A Shipments 1 st Half nd Half st Half nd Half 2009 YTD

14 Ethical E-Scrap Export Agreements Meet R2 Standards or E-Steward? Meet EPA CRT Export Rule Set a basis for QA/QC Recordkeeping and improvement

15 Category 1: Tested Working vs. Key Functionality Big debate at R2 Examples: Multi-function copier without a working fax, LCD without a power adapter, CRT with non-working 110v power supply For WR3A, TW is the UN schools market. Warm fuzzies but less competent Several national E-Stewards will not allow us even to test equipment for them, and destroy rather than test.

16 Functional for Refurbishment Export for Refurbishment and Repair is largest category of intact CRTs BSF = Big Secret Factory Original Equipment Assembly and Warrantee Repair shops employees 100,000 units per month and up White Box, SKD

17 Category 2: Functional for Refurbishment WR3A Purchase Orders 60,000 CRTs per month 15 Grades of CRT Pre-Qualification of USA supplier Audits of Overseas Refurbishers (to R2 Standards) Must track incidental breakage and properly recycle or re-export it Incentives and rewards for: National EPA inspections (4x per year in Malaysia) ISO14001 EH&S Programs Goal: All states and universities incorporate Fair Trade and RIOS standards into state contracts which are enforceable by state AG

18 Functional for Refurbishment Pre-Qualification of USA supplier CRT Glass Test PC Boards Test Employees per Ton Sea Containers per Ton Audits of Overseas Refurbishers (to R2 Standards) Finished Product Samples (acceptable material) Legal import permit Management of de Minimus, incidental breakage Advantages of Frequent Rule Audit vs. one-time snapshot audit

19 Functional for Refurbishment Because the Refurbishers are bound by the WR3A Purchase Order to track, and either properly recycle or ship back incidental breakage we are creating recyclers in Malaysia, Mexico, Egypt and Peru. Covered on NPR, PBS, and trade periodicals, we got an $85k grant in October 2009 to operate a Cash for Clunkers program in Mexico, taking one junk CRT out for every one resold.

20 Units shipped by WR3A 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000-1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 Series1

21 Total 105,052 units RM335, income units $ containers Price per unit Fallout 1Q 08 9,255 47,039 9 RM % 2Q 08 10,791 97, RM % 3Q 08 10,232 49,827 9 RM % 4Q 08 13, , RM % 1Q 09 10,163 31, RM % 2Q 09 17,123 44,455 9 RM % 3Q 09 44,131 21, RM 0.48 n/a

22 QA / QC TPISEOTG is difficult to understand Brokered loads Misdirected containers Delay in response to market changes Misunderstandings

23 How might a prohibition on e- scrap exports make overseas dumping even worse? World Reuse, Repair & Recycling Assoc. 2006

24 World Supply and Demand Approximately 3 billion people earn approximately $3,000 per year. Rate of internet access is 10X USA BAN hopes they will leapfrog the USA and get better, newer computers than we have.

25 Triangle Trade WR3A Standard = 30% domestic recycling 100,000 USA Suppliers 70,000 WR3A 100,000 Brokers Strippers 30% TAR 70,000 Factory remanufacturing 70-80,000 SKD / month 5% failure World Reuse, Repair & Recycling Assoc. 2006

26 WR3A Fair Trade Model 07 WR3A established a major purchase order in 07 for 80,000 used CRTs per month to manufacturing plants (of 70k per day capacity) The CRTs are sold for $10 CIF The OEM produces a fallout report on each shipment World Reuse, Repair & Recycling Assoc. 2006

27 WR3A Fair Trade Model Cut out middleman where bad tubes are discarded as TAR Eventually, the OEM plans to establish end-oflife recycling at the SKD plants Revenues from good CRTs lowered the average cost of recycling to 10 cents per pound (vs. 28 cents in CA) World Reuse, Repair & Recycling Assoc. 2006

28 4 Confessions Viagra in Egypt Mystery 21s E-Steward reversals Oversupply and market disruption under PO R4 Education Imperfect. But none of these would have been avoided by a Tested Working standard. What we do have is transparency and QA/QC, the basis of ISO and OSHA.

29 More Info, or Send Ideas NPR and PBS at The World Reuse, Repair & Recycling Association (WR3A) Middlebury, Vermont USA