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Acknowledgments

Thanks to the. many people who were involved with the collection and synthesis of material for this report. We would particularly like to thank all the individuals who provided information on their electronics reuse operations. These people were generous with their time, information, and experience, and had the patience to bear with us during our follow-up inquiries. Without their participation and cooperation, this report would not have been possible.

Christine S Beling, Environmental Engineer, in the U.S. Environmental Protection Agency (EPA) New England Region I office, helped us identify electronic reuse operations. Susan Glass, Executive Director of Materials for the Arts in New York City, also suggcstcd operations to contact

Many, many, many thanks to Richard Grote of Takoma Park, Maryland, who did an outstanding job designing and laying out this document, and scanning in dozens of photos He possesses that rare combination of patience, computer wizardry, and driving work ethic This report certainly would not have been possible without his help

Thanks to all the staff at the Institute who supported this project We extend special recognition to Jeff Vandall, former ILSR research associate His efforts laid the groundwork for this report He identified dozens of electronics reuse operations around the country, surveyed most of them, compiled data into spreadsheets, identified models to document, made a numbcr of site visits, and helped write part of this report. Thanks to Jenny Cutraro and John Bailey of ILSR's Minneapolis office. Jenny gathered information and made site visits to operations in Minnesota, and John e- mailed us his Nexus searches on electronics reuse/recycling. Jennifer Leahy edited parts of this report Vickie Smith handled our faxes, mail, phone calls, and other support tasks-always without complaining Jan Simpson and Mike Jollon were essential in tracking timc and budget Throughout this project Neil Seldman provided us with many articles and reports on reuse And without lLSR research associate Kelly Biesecker's finishing touches, this report never would have made it to the printer

Special thanks go to Daniel DeMocker and Lloyd Hyde for their unwavering support

Finally, we would like to thank the U.S. EPA for supporting this project and generally encouraging reduction and recycling efforts This report was produced under a grant from the U.S. EPA (grant number X824653-01-2) We extend special thanks to our project officer, George Garland of the Office of Solid Waste

,

PLUG INTO ELECTRONICS REUSE

Electronics become obsolete and are discarded at a frightening rate. For example, only 10% of the 6 to 13 million computers taken out of service each year in the U.S. are reused or recycled.1 About 15% are landfilled and a whopping 75% are stockpiled.2 An estimated 10 million more are sitting in storage somewhere, gathering dust.3 A tremendous amount of other electronics (such as audio equipment, televisions, telecommunications equipment, and electronic appliances) are discarded too; figures are not available.

Until recently, only a weak infrastructure existed in the U.S. to capture electronic waste. Today, savvy individuals and organizations have begun to realize the enormous potential of the discarded electronics. Many of these items are in good working condition and can be adapted for owners whose capacity needs are different from those of the previous owners. Other items need repair work, and those that cannot be repaired to full use often contain valuable parts. These parts can be used to rebuild other computers or sometimes utilized to construct lower-tech products. For instance, video games can be built from the integrated circuits of salvaged computers.

Computer recycling has increased more precipitously than the recycling of other electronic goods. Computer needs vary so broadly that what does not suit one individual could very well suit the next. Because computers become obsolete so swiftly, they are often discarded with many or all working components. Many American corporations replace one-third of their personal computer inventory each year! The higher the original value of the item, the more feasible from a financial standpoint it becomes to restore or recycle it. This is one reason why computer recycling is at the forefront of the electronics reuse industry.

An unusable computer has many recoverable materials and parts that can be utilized in other computers and electronic goods. Recoverable components include: printed circuit boards, chips, print heads, disc drives, and keyboards. Although other computer parts cannot be salvaged for their original intended use, these items can be broken down by material type for eventual recycling into new goods. The printed circuit boards contain metals; lead, copper, platinum, palladium, and gold. Demand for these precious metals is high, and the market for circuit boards is strong. Other valuable recoverable materials are lead from CRT's; copper from wires; and thermoplastic, steel, and aluminum from casings.

This booklet presents information on 22 electronics reuse operations, who responded to our survey soliciting information on their businesses, jobs sustained, and interest in expanding and replicating. (See Appendix A.) It also profiles in detail 13 of these operations. Only a sample of the numerous electronics reuse operations in the United States are represented. (See Appendix B for a list of those we identified.)

Our intent in producing this booklet is to help expand the reuse infrastructure throughout the country. It is oriented toward the lay person, recycling and solid waste professionals, economic development officials, and community-based organizations. The operations documented are all replicable. Many are interested in starting similar enterprises in other cities. If the computers now landfilled and stockpiled each year were reclaimed through the types of electronics reuse operations profiled here, between 1,000 and 2,250 new jobs could be created in this industry alone. Reclamation of previously stockpiled computers as well as other types of electronics could sustain many additional jobs.

1. Eustace, Hilary et al., "A Business Assessment of Electronics Recycling for the Gordon Institute," thesis presented to Tufts University, August 1,1995; Carnegie Mellon University Dept. of Engineering & Public Policy, the H. John Heinz III School of Public Policy and Management, and the Dept. of Social and Decision Sciences, Design Issues in Waste Avoidance, Pittsburgh, PA, 1991; personal communication, Steven Wyatt, the Computer Recycling Center, Santa Clara, CA, January 31,1997; and personal communication, Vincent Torres, University of Texas, Austin, February 3,1997. 2. Eustace, Hilary et al., "A Business Assessment of Electronics Recycling for the Gordon Institute." 3. Carnegie Mellon University, Design Issues in Waste Avoidance.

This report is one in a series of four booklets, funded by the U.S. EPA, on product reuse as an important economic development and waste reduction strategy.

The other three are:

Sustaining Businesses & jobs

through Pallet Reuse & Repair

Creating Wealth from Everyday

Items

Weaving Textile Reuse into Waste

Reduction

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 1

Electronics reuse Operations

create 17 times more jobs on a

per-ton basis than traditional

recycling processing facilities and

68 times more jobs than landfills

or incinerators.

If the 5 to 12 million computers

now landfilled and stockpiled

were reclaimed, between 1,000

and 2,250 new jobs could be

created in this industry alone.

Electronics reuse operations create good jobs, enhancing technical skills for their workers and volunteers, make technology available to the low-income sector, equip schools with computer technology, and are a low-overhead alternative for economic development and

community-based organizations. Not only does refurbished computer equipment allow many worthy institutions to keep up in the information age, but the repair process itself is an excellent vehicle for job training.

Table 1 shows the number of jobs sustained by 23 electronics reuse organizations who responded to our survey in February 1996. These operations employ a total of 472 full-time equivalent workers and reclaim more than 26,500 tons of electronics per year. On average, this translates to 15.5 jobs for every 1,000 tons of electronics handled. On a per ton basis, electronics reuse operations sustain 17 times more jobs than traditional recycling sorting and processing facilities, and at least 68 times more jobs than do landfills and incinerators. In addition, the job creation figures for reuse operations only represent the paid staff members for each enterprise. They do not include the myriad of individuals who contribute to the effort through job training programs or volunteer programs.

The high job creation numbers in the electronics reuse sector are due to a few factors: (1) electronics are higher-value-added goods than standard recyclable materials; (2) reuse of

electronics tends to be a labor-intensive activity; and (3) reuse operations typically are smaller scale than recycling or disposal facilities. Workers in these operations receive technical repair skills, are paid in the range of $5 to $10 per hour, and receive benefits such as medical coverage and vacation. Acquired repair skills are useful for helping electronics reuse workers upgrade to higher-level jobs or make a transition into traditional industries, particularly if they have been a member of a marginalized labor group.

In many instances, electronics reuse operations employ disadvantaged and disabled individuals in lower-skilled electronics disassembly jobs. For example, Goodwill Industries of Pittsburgh employs six of its disabled clients in its Computer Recycling Center. These clients are paid a salary and benefits and receive electronics disassembly training and basic life and work skills.

Students at DRAGnet in Minneapolis repairing reclaimed computers.

PAGE 2 INSTITUTE FOR LOCAL SELF-RELIANCE

Community Benefits of Electronics Reuse

Electronics reuse extends access to computers and other high-technology electronics to less advantaged communities. Many new computers and computer systems are priced far out of the range of the low-income community. By transferring discarded but usable computers from businesses and individuals, these citizens receive computer access in their homes or community centers gratis or at a fraction of the

cost of a new computer. Access to this kind of technology is empowering, enabling the disenfranchised to become part of the information age. Through the donations of reuse enterprises, such as those profiled here, many individuals have access to electronic mail and the Internet helping to make those resources universally available.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 3

Community Benefits of Electronics Reuse

Many students from privileged communities enjoy the benefits of learning with computers. From interactive CD-ROMs to the Internet, computers have become valuable tools in the classroom. However, students in low-income areas are often left behind because of limited access to working or current computer systems.

These students now can receive valuable computer training as part of their coursework providing them with a marketable skill for later in life. Since its inception in 1992, Computers 4 Kids has provided students with over 866,000 hours of computer training.

The National Cristina Foundation (NCF) provides computers for several interesting

training programs. Two of NCF's beneficiaries include: Project Tech of the Massachusetts Easter Seal Society in Worcester, Massachusetts, and the New England Shelter for Homeless Veterans in Boston. Through Project Tech, disabled individuals borrow computers for their use at home.

The New England Shelter for Homeless Veterans uses donated computers from NCF to run computer training sessions. Every individual staying at the shelter is entitled to six hours of basic computer training, which includes resume writing. Longer training programs are available for computer repair, troubleshooting, and office skills.

Computer reuse operations lend themselves well to community volunteerism through repair of donated computers. Volunteers, who are out-of-work or in need of training, can improve their computer skills. This volunteer work can provide the necessary confidence, experience, and skill building momentum to greatly assist an individual gain access to the job market or a higher skilled position.

For example, most of the computer repair employees at the East West Foundation started

out as computer repair volunteers. Many of these volunteers are students who receive a marketable job skill, that they cannot get at school, and can often receive school credit. In many cases, computer experts can apply their knowledge of and love for computers to a worthy cause by volunteering at a computer reuse operation. Computer Reclamation, Inc. of Silver Spring, Maryland, relies heavily on the local computer professional network for volunteers.

Joseph Han is the computer technician at LA. Shares, a Los Angeles-based multi-material reuse operation that accepts donated computers. Mr. Han is part of the City of Los Angeles' Department of Aging Title 5 Program, which returns senior citizens to the work place.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 4

The operational structures of electronic reuse operations are nearly as varied as the number of operations. They range from simple facilities with low overhead and capital requirements to facilities with complex, automated capabilities. The National Cristina Foundation, for example, acts essentially as a broker, identifying sources

Intermediate Processing Facility and Electronic Processing Association were included more because they represent a model university computer recovery program than a model reuse effort. The other operations are all recovering at least 35 percent of the computers they handled for reuse.

of discarded electronics and end users and partnering with entities that dismantle and rebuild computers for the end users. A similarly structured group, the Detwiler Foundation Computers for Schools Program, contracts with technical schools and training centers to repair discarded computers and transfer them to K-12 public and private schools. These training groups require minimal space and equipment. They serve an important function by matching up donors with appropriate end users, and utilize the existing reuse infrastructure to do so.

While 10 of these operations handle only electronics, three represent multi-material reuse operations: Materials for the Arts, the Surplus Exchange, and Urban Ore. Their experience demonstrates that electronics reuse can be integrated into existing multi-material reuse operations. (See ILSRs companion booklet, Creating Wealth from Everyday Items, for more information on these operations.) Materials for the Arts only accepts computers and other electronic goods that are in working condition. It currently does no repair although it has plans to start a repair shop in conjunction with

Most nonprofit electronics reuse operations have some dismantling and repair capacity on site and send their dismantled or non- repairable materials to brokers or commercial processors for recycling. Table 2 lists the 13 electronics reuse operations profiled in detail in this booklet. The University of Massachusetts

Technical Artistry, a nonprofit group providing technical services (such as lighting, sound, video, and computer) to the arts community. Urban Ore does some repair and refurbishing, while the Surplus Exchange has an extensive repair shop.

LA. Shares in Los Angeles is another multi-material reuse operation that accepts donated computers but does no repair. In 1995, it gave away 7,000 computers. Now if refers donors to Detwiler’s Computers for Schools program. The monitors above are on display in its showroom. Registered members can pick out items they want at no charge.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 5

Electronics Reuse Enterprises

Nonprofit electronics reuse operations handle primarily computers and computer-related equipment. They are generally community based and small in scale. These operations primarily focus on providing computers to community groups, schools, and the underprivileged. regional focus.

The for-profit electronics operations combine recycling with reuse. Their reuse efforts involve reclaiming working components (such as circuit boards and chips) from computer equipment. These operations tend to be larger in scale than the nonprofit operations and have a more

Monitors stored on shelves in the Surplus Exchange's Kansas City warehouse.

Complete electronics reuse involves two different processes: (1) repair of disabled equipment, and (2) disassembly and recycling of the component parts of unrepairable electronics. Some electronics reuse operations are equipped to process the electronics fully, but many facilities repair computers on-site and send the unrepairable items to another business equipped for the higher-tech demanufacturing

and salvaging processes. Electronic goods are then broken down, component by component, material by material. Recoverable material is sorted and sent to the appropriate recycling facility. Dismantlers sell components to original equipment manufacturers (OEM), service repair providers, or brokers for reincorporation into rebuilt computers.

Computer components organized in bins at the Surplus Exchange's Kansas City warehouse.

Electronics other than computers (such as televisions, stereo equipment, microwaves) are reclaimed with less frequency. A recovery infrastructure has not developed for these items due to minimal salvage value. Most non- computer electronics are used until broken and therefore the stock of discarded non-computer

electronic items is of far less value than computers. However, if the appliance is still in working condition when the owner no longer has use for it, s/he usually passes it along through informal channels such as garage and yard sales, newspaper ads, or thrift and secondhand stores.

Businesses generate most of the discarded electronic supply in this country. For example, Computer Reclamation, Inc. of Silver Spring, Maryland, receives 90% of its computers from the business sector. .Businesses are constantly updating their computer equipment and therefore frequently discarding working computers. While most of the electronics reuse operations source items from businesses, a number also collect from households and individuals. Households can drop off used computers at Computers 4 Kids warehouse in Middletown, Connecticut. The Detwiler Foundation's Computers for Schools Program has 45 drop-off sites at computer retail stores and other locations throughout the state.

DRAGnet in Minneapolis receives 25% of its computers from individuals. Donors can call for a pickup or drop off computers. The Goodwill Computer Recycling Center in Pittsburgh receives 70% of its computers from corporations, 20% from households, and 10% from universities. It offers pickup service for corporate donors. Households can drop off computers at any western-Pennsylvania Goodwill store or attended donation center. Corporations supply 70%, individuals supply 20%, and recycling partners supply 10% of East West Foundation's donations.

Non-computer electronics are sourced from businesses and households.

PAGE 6 INSTITUTE FOR LOCAL SELF-RELIANCE

Electronics Reuse Enterprises

Nonprofits and disadvantaged individuals are the main beneficiaries of donated computers from reuse operations. Reuse operations either donate or sell computers for a nominal cost to the schools located in these communities, directly to individuals, or to local community groups that provide computer training. Computers 4 Kids and the Detwiler Foundation Computers for Schools Program donate computers primarily to schools in low-income areas. Materials for the Arts serves the arts community of New York City (museums, performance companies, writers’ groups, cultural centers, and social service/community organizations with arts programs, to name a few). It hopes to expand its operations in order to accept more donations and offer more services to a more diverse customer base (which would include schools).

Urban Ore is unique among the operations profiled in this report. It is a retail operation open to the public. It is also a materials salvage business. The heart of Urban Ore’s business is buying and selling discarded reusable goods. Its staff purchase electronics from individuals and businesses and sell these commodities to the general public. Unrepairable computers are disassembled for recycling. Nearly everything

is sold (if not to the general public, then to local recycling operations). The company maintains a list of about fifty charities and nonprofits that may receive occasional donations of materials.

Operations that process unrepairable electronics sell the reusable components to brokers or original equipment manufacturers (OEMs). The components are used to rebuild broken electronics, especially older items requiring parts no longer manufactured. A large portion of Electronics Processing Associates Inc.’s processed electronic components are sold to brokers and OEMs.

Recycled materials from electronics such as glass, plastics, and metals generally go into the same markets as standard recyclable materials. Plastics from casings are often of mixed grades and therefore of low value. For this reason, computer thermoplastics often cannot be recovered. Glass from monitors has to be handled carefully because of its lead content. (Electronics Processing Associates has developed a proprietary technology to recycle glass from monitors.) Metals recovered from electronic items range from aluminum and steel to precious metals such as gold and copper.

Many nonprofit computer reuse operations have mutually beneficial relationships with local universities and technical schools. The businesses utilize students enrolled in technical classes to repair the computers. For many operations, students are their main source of labor. In return, the students receive class credit and hands-on computer repair experience with a variety of computers.

Computer Reclamation, Inc. of Silver Spring, Maryland has computer repair arrangements

with Prince George’s County Community College. Students enrolled in computer repair classes at this university receive credit by repairing computers at Computer Reclamation. The students get hands-on computer repair experience and Computer Reclamation gets repaired computers. The Detwiler Foundation Computers for Schools Program has ,computer repair arrangements with 52 technical schools, community colleges, and vocational high schools throughout California.

Worker at the University of Massachusetts Intermediate Processing Center

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 7

Electronics Reuse Enterprises

Many of the model operations are not self- sustaining and have to rely on corporate donations or foundation grants to cover their costs. The donations enable the electronics

costs are relatively low compared to those of other recycling-related ventures. Because of low operating costs, electronics reuse is ideal for community-based operations.

reuse operations to provide computers to low- income people for no or a nominal fee. While it would be ideal not to rely on outside sources of funding, many of these reuse enterprises are mission-based, providing vocational services and fulfilling resource requirements for needy organizations, activities that would otherwise require substantial financial resources.

Many enterprises donate computers and electronics to community groups, schools, and low-income individuals. In some instances, the computers are sold for a nominal fee (ranging from $25 to $100 per computer). The Surplus Exchange charges its customers a handling fee, which is usually 25% below market rate. East West Foundation, working with the recipient

Electronic reuse operations generate revenues from two sources: (1) sale of computers, and (2) sale of scrap materials. To generate needed revenue through computer sales alone, the computers would have to be priced out of the

nonprofit organization, finds a sponsor to pay for the cost of recovery and transportation, so the recipient organization pays nothing. Sponsors, for instance, pay $185 for a 286 IBM . and $295 for a 386 IBM.

ran,', of the people and groups that need them most. Increasing recovery of scrap materials would decrease the amount of computers that could be reused. Nonprofit electronics reuse enterprises have limited revenue generating capacity and focus instead on providing important benefits to the community.

Urban Ore and Electronic Recovery represent the only retail operations. Both are open to the public. Both are self-sustaining enterprises and do not receive foundation or other outside support. In addition to selling reclaimed computers, Urban Ore sells many types of reusable and recyclable materials-from

The range of sophistication of these enterprises is wide and subsequently so are the costs required to start one. Capital costs range from as little as $1,000 to as much as $125,000 and operating costs range from $9,000 to $840,000 per year. These start-up capital and operating

magazines and clothing to lawn mowers and bathtubs. Electronic Recovery Inc. dismantles 60% of the computers it receives for recycling. The company earns $1 million in revenues each year from sale of computers and sale of recyclables.

PAGE 8 INSTITUTE FOR LOCAL SELF-RELIANCE

For a variety of reasons the collection of electronics is not as simple as standard recyclables. First, electronic items cannot be thrown into the back of a truck the way one would a bundle of newspapers or a bag of plastic bottles. In order to achieve the highest resale value possible, the aesthetic and structural integrity of electronics goods must be maintained. This requires a truck equipped with protective materials and a crew who will handle these items gingerly. Nor can these items sit on the curb risking damage from the elements and theft. So a collection program must be designed to address these requirements.

Another difficulty is the sporadic nature with which electronics are discarded. While it is true that we have become more cavalier about making due with what we have, electronic items are expensive and individuals and organizations do not have regular and frequent loads of electronic items to discard. Collection programs need to address the disposers’ need for a customized pickup from a timing, quality, and quantity standpoint.

Thus, there are few government-run collection programs for electronics. One exception is Union County, New Jersey (see sidebar). Other communities are utilizing practices such as publishing reuse directories and materials exchanges to encourage the reuse of electronics through the already established infrastructure.

.

Most of the electronics reuse operations profiled pick up donations from donors on an on-call basis. Many allow individuals to drop off donations at their operations. The Goodwill Computer Recycling Center encourages households to drop off used computers at any western Pennsylvania Goodwill store or attended donation center. The Detwiler Foundation’s Computer for Schools Program has 52 repair locations in California where donors can drop off items. It also has drop-off sites at 45 computer retail stores and other locations throughout the state.

Urban Ore is unique in that it salvages reusable items directly from the Berkeley transfer station tip floor. It has two full-time salvagers who park a truck at the transfer station’s tipping floor and pull out salvageable items, including electronics, as loads are dumped. Other goods are received by delivery from individuals or picked up from people.

Communities interested in helping to divert electronics from landfills might consider adding electronics to materials accepted at attended donation sites, finding local markets for donated computers, and/or allowing electronics reuse operations to salvage directly from loads destined for landfills.

Communities can sponsor periodic drop-off events where residents can bring broken and discarded electronics for reuse and recycling. These events can happen monthly or throughout the year. Union County, New Jersey, has sponsored successful drop-off events.

The key to sponsoring a drop-off site/event is high-profile publicity. The residents of the community must be aware of the event, know when and where it is happening, and be clear as to what types of materials to bring. Many

households have broken electronic items stored away in attics and basements and an event like this can attract an enormous amount of materials.

In order to sponsor a community electronics drop-off event, the community must first make an arrangement with an electronics recycling or reuse operation to process the materials. Businesses will often place trailers at the site and pay the community per piece depending on the quality of the merchandise.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 9

Collection Strategies

An effective tool for diverting discarded electronics from the waste stream is for communities to publish an electronics reuse directory such as those published by California and Minnesota (see list of resources at the end of this publication). Along with identifying operations and businesses that reuse electronics, the directory can provide tips on how to repair and reuse electronic items.

A material exchange is usually in the form of a booklet published monthly or an on-line bulletin board that provides two listings: (1) materials that are available, and (2) materials

wanted. Materials are listed by category with electronics either listed under an electronics category or under a miscellaneous category. The phone number is provided with each listing so the sources of materials and users of materials can make direct connections. Materials exchanges are usually sponsored on the state or regional levels. The following states/regions currently have waste exchanges: Alaska, Arizona, California, Montana, Indiana, Iowa, Louisiana/Gulf Coast, Minnesota, the Northeast, Texas, the Southeast, and Washington/Pacific Rim.

PAGE 10 INSTITUTE FOR LOCAL SELF-RELIANCE

Governments can play a critical role in expanding electronics reuse by enacting key policies. Policies that have been suggested or enacted include allowing businesses to receive tax credits for donated computers, banning the

disposal of electronics from municipal landfills and incinerators, and donating surplus equipment for reuse and recycling. The benefits of these policies are both environmental and economic.

Computers 4 Kids in Middletown, Connecticut, advocates a state business tax credit equal to half the value of the donated computers. Under this proposal businesses would be allowed to deduct 50 percent of the stated value of their donated computers from their profits before taxes. For example, if a business in Connecticut donates computers with a stated value of $50,000 to Computers 4 Kids, the business would be allowed to deduct $25,000 from its profits before taxes.

The key to this policy is that businesses can receive a tax credit for the market value of the computers not the depreciated value which is usually much lower. This tax credit is an added incentive for businesses to reuse old computers by donating them to a worthy organization rather than recycling or disposing of them.

Electronic equipment contains a variety of toxic materials (lead, polychlorinated biphenyls, and mercury) that are harmful to the environment if not disposed of properly. Many manufacturers of electronic equipment are required by federal law to handle electronics as hazardous materials. Households, which generate only limited quantities, are exempt from this

.requirement. Therefore, many electronic items end up in municipal landfills; potentially polluting groundwater with toxic substances, or in incinerators where toxic plumes are released from smokestacks or are buried along with the incinerator’s ash.

States can ban electronics from disposal in municipal facilities. Naturally electronics reuse

enterprises endorse these bans. Such a proposal is being considered in California. At present a complete reuse infrastructure is not available to capture the electronic goods that would be banned from landfills and incinerators. Initially, the market would be overloaded with broken goods, components, and scrap materials. Eventually, the market would catch up with the supply, in much the same way as the market has caught up with the supply of recyclables generated in curbside recycling programs. States or counties could encourage the market by attracting commercial electronics recycling businesses to their area (see ”Government Initiated Programs” sidebar).

Executive Order 12999, signed by President Clinton on April 17, 1996, established a framework through which surplus computer equipment is to be transferred to schools and nonprofit organizations at the lowest cost possible. Federal Agencies were also charged with developing and submitting a plan to the Office of Science and Technology Policy for encouraging their employees with computer expertise to help connect classrooms to the

National Information Infrastructure, train teachers to use computers as educational tools, and to provide ongoing maintenance and technical support for computers placed pursuant to the Executive Order. The complete text of this Executive Order can be found on the Internet at http://comcat.org/www/comcat/ html/eo12999.html or in the Federal Register, April 19,1996, Volume 61, Number 77, page 17227.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 11

The ability to replicate electronics reuse operations similar to those profiled in this publication is key to expanding the reuse infrastructure for electronics. Every community needs to have access to an operation that reuses electronics for two reasons: (1) to divert materials from the waste stream, and (2) to provide expensive technology to those individuals who cannot afford it.

The good news is that all of the model operations can be replicated and are either exploring replication or interesting in replication. (See profiles for specific tips for replication.) .

Those who run reuse enterprises say that knowing where the sources and how to get access to them is the number one tip for success. This requires good business contacts often facilitated by a well connected board of directors. In an industry that relies on a large flow of materials, high-profile publicity is important,

For those enterprises which have repair operations on site, sufficient warehouse space is a necessity. The space need not be large and can be leased. The operations profiled all lease warehouses ranging in size from 5,000 to 75,000 square feet. If an operation does a successful job of networking and publicizing within the business community, the operation initially can expect an overwhelming amount of donations

requiring storage and processing space. Stockpiling of old electronics equipment is a favored business practice if no outlet for reuse exists.

Equipment costs for an electronics reuse operation are minimal. Computer repair equipment generally consists of screw drivers (manual and electric), testing software, and a workbench. This equipment is easily acquired as the operation expands.

Electronics reuse operations are relatively cheap businesses to start. Initial capital costs are usually less than $100,000. These are relatively modest start-up costs for a new venture since equipment costs are low and a moderately- sized warehouse can be used. These start-up costs can be financed through a variety of traditional methods (i.e., bank loans), but many of the profiled operations suggest corporate donations to finance start-up costs.

Labor costs can be reduced by utilizing volunteers and students. A few electronics reuse operations (i.e., Computer Reclamation, Inc. and Computers for Schools Program) use volunteers for all their labor needs. Other enterprises, such as East West Foundation and Computers 4 Kids, have hired paid employees since volunteer labor can often be undependable.

PAGE 12 INSTITUTE FOR LOCAL SELF-RELIANCE

Computer Reclamation, Inc. is a spin-off of the Washington, D.C. Wheelchair Society. In 1992 when the Wheelchair Society needed two computers for its own use, it placed an ad asking for donated computers. The response was overwhelming and the Wheelchair Society received 200 computers. Computer Reclamation was formed as a way to repair and redistribute the 200 computers that the Wheelchair Society received.

Today, Computer Reclamation is a successful nonprofit computer reuse and repair operation. Computer Reclamation relies heavily on volunteer labor (approximately 1,200 volunteer hours/month). Most volunteers are computer experts employed by local businesses. Volunteers come to Computer Reclamation in the evenings and weekends for computer repair sessions.

Computer Reclamation has computer repair arrangements with a local university; Prince

George’s County Community College. Students enrolled in computer repair classes at this university can receive credit by repairing computers at Computer Reclamation. The students get hands-on computer repair experience and Computer Reclamation gets repaired computers to give to nonprofits. Once a month on a weekend day, Computer Reclamation sponsors all-day computer repair sessions at one of the universities.

Computer Reclamation attempts to have a positive effect on underprivileged youth by donating computers to after-school programs and has developed a computer repair area at St. Phillips Chapel in the inner-city Anacostia section of Washington, D.C. This location allows Computer Reclamation to maintain a presence in the inner city and establish relationships with residents of the community.

Michael Wiggins, Director

Computer Reclamation, Inc.

91 2 Thayer Avenue, Suite 21 0

Silver Spring, Maryland 2091 0

Phone: 301 -495-0280

Fax: 301 -588-5408

Type of operation: Nonprofit

Start-up date: 1992

computer repair and reuse

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 13

Computer Reclamation, Inc.

PAGE 14

Computer Reclamation has a truck on the road every business day picking up equipment from businesses in the DC metro area. Individuals can drop equipment at the suburban Silver Spring location during regular business hours. The equipment is then delivered to one of the

shops for repair and quality control. Volunteer technicians and students check the equipment and put into working order so that it may be placed with the nonprofit groups that have placed requests for their programs.

Donated computers that need to be repaired. Computer parts 'and peripherals used to repair broken computers.

INSTITUTE FOR LOCAL SELF-RELIANCE,

In 1992, Marie and Wes Pullen, the owners of Computer Communication Company, a computer system consulting firm, founded Computers 4 Kids (C4K). The Pullens had been donating computers from their consulting firm to schools and recognized the positive impact these computers had on the students and teachers. C4K was founded as means for other businesses to donate computers to schools. As of May 1996 about 420 businesses had donated computers.

C4K receives donated computers from businesses throughout the country, repairs and refurbishes the computers, and then donates them to schools throughout the country. In order to receive a computer, a school must complete an application and demonstrate a need for donated computers and an ability to maintain those computers. C4K also receives donated software and updates, which it provides to schools for a yearly fee of $100.

C4K works with businesses to provide computers to the schools in their communities.

A business can donate computers and cash to sponsor a local school. For example, C4K has entered into a partnership with Northeast Utilities/CL&P (NU), the main power utility for Connecticut, New Hampshire, and western Massachusetts. NU provides C4K with over 1,200 used computers, monitors, and peripherals per year and has made a three-year pledge of $63,000 to C4K to support the community schools targeted by NU. C4K will place 1,000 computers into the designated schools over the three-year period.

C4K relies heavily on volunteer labor to repair computers. Up to 11 volunteers often donate as much as 140 hours of labor per month. Many of these volunteers have been dislocated from the labor force and, by volunteering at C4K, they receive computer technology and repair retraining.

To date, C4K has donated about $1-million dollars of computer equipment to schools. These computers have provided students with over 866,000 hours of computer training.

Rebuilt and repaired computers to be delivered to a school.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 15

Computers 4 Kids

C4K stores computers when they first arrive at the warehouse. Volunteer workers (C4K has one paid employee), working at a computer repair station, dismantle all of the stored computers and separate the parts by type. The workers then test the parts and set the broken ones aside for recycling. The good usable parts are used to rebuild computers. From the supply of reclaimed parts, the volunteers

rebuild computers. In the final step a worker puts the rebuilt computers through a final operation test and loads donated software. The computers are stored until shipment. Schools must fill out an application and pass eligibility requirements (the schools must demonstrate a need for donated computers and an ability to maintain the computers in good working condition).

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schools throughout California. These schools serve as computer repair centers . Donations are directed to the closest center for

The Detwiler Foundation Computers for Schools Program was established as a pipeline for computers that are donated by industry to be reused in school classrooms. The Program was funded by the Detwiler family for its first three years of operation in San Diego. The Program now operates throughout California and Ohio and is funded by corporate donations.

The Computers for Schools Program collaborates with 52 technical schools, community colleges, and vocational high

refurbishing. Students enrolled in computer classes at these locations receive credit.

The Computers for Schools Program is open to every K-12 public and private school in the state. The Program is the largest public-private partnership and the largest source of computers for K-12 schools in the state.

Computers for Schools collects computers either from corporate or individual donors and transports the computers to the closest computer repair center (52 throughout the state of California). Students at the repair centers

repair the computers and stockpile them until a complete shipment is created. At that time, Computers for Schools uses volunteer labor and donated transportation to ship the computers to a recipient school.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 17

While temporarily housebound with an illness, DRAGnet founder and President, Gordon Gillesby, recognized the lack of accessibility to computer technology facing many people with disabilities. This experience spurred him to form DRAGnet, the Disability Resources, Affiliates, and Groups network. Its mission is to (1) provide low-cost refurbished computers and training to people with disabilities and other individuals considered "at risk" for living independently; (2) increase technology- assisted access to education and employment opportunities; (3) increase low-cost "on-ramps" to the Information Superhighway for traditionally disenfranchised populations; (4) educate the public and private sectors about computer disposal, regulations, and options; (5) reduce the costs of waste disposal to businesses and institutions; and (6) reduce computer- related solid waste in landfills and its impact on groundwater.

Today DRAGnet is a successful, rapidly expanding nonprofit computer reuse and recycling operation. Volunteers and employees oversee three inter-connected projects: RE*PC, which focuses on computer reuse and recycling, DIDnet, an on-line network of resources and information for people with disabilities, and

Computer Precision, which provides technical training and fee-based support and consulting to other nonprofit agencies, rehabilitation centers, and individuals with disabilities.

Through a program affiliated with alternative schools in inner-city Minneapolis and St. Paul, DRAGnet provides technical and mechanical training to high school students. After completing training, students receive a refurbished computer of their own. DRAGnet also participates in an outreach program with local elementary schools in which volunteers disassemble computers in front of students and teachers to demonstrate how computers work.

DRAGnet is committed to servicing socially and economically disadvantaged populations of Minneapolis, the state of Minnesota and across the nation. It has provided job skills training to many area high school students, helped low- income individuals with little or no credit history purchase computers, and has trained individuals with disabilities so they can teach others. About 75% of DRAGnet staff are either disabled or supporting someone who is. DRAGnet's location in the downtown warehouse district of Minneapolis makes it easily accessible to residents of the inner-city community.

Donated monitors.

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DRAGnet

Students at work in repair station.

Computers are first tested for usability. Those in reasonable working condition are rebuilt/refurbished, loaded with shareware, and then placed back into service as a functioning computer. Loaded shareware packages are adjusted to meet the customer's needs. Volunteers provide training in the use of the computer to its new owner and follow up with a phone call to address any further questions.

Working parts are salvaged from nonreusable computers to reduce refurbishing costs and to provide a ready supply of working parts to clients for system repairs and upgrades. Nonworking parts/systems are broken down for recycling, and remaining material is disposed according to Federal and state hazardous waste and recycling guidelines at properly licensed facilities.

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In 1990, the founder of East West, Patrick McGovern (formerly an East West board member) had been traveling the world and recognized the need for computer equipment in many less advantaged countries. He also recognized the surplus of discarded but usable computer equipment in the United States. East West was founded to help promote democracy in foreign countries by providing computer equipment from the supply of surplus equipment in this country.

East West now provides computers to both domestic and foreign organizations. In the United States, East West focuses on providing computers to schools and human service

organizations. Overseas, East West focuses on providing computers for democracy, freedom of speech, and human rights education. To date, East West has placed over 7,000 computers around the world.

East West accommodates the requests of equipment donors by allowing them to specify, at no cost to them, the recipient organizations for up to 10% of the computers donated which are able to be remanufactured. This allows the donors to maintain involvement in their own communities. East West also guarantees to the donors that all materials will either be reused or recycled, nothing will be disposed.

Type of operation: Non-profit

Start-up date: January 1990

computer reuse

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 21

East West Foundation

Computer repair worker diagnosing

donated computers.

Computer repair worker checking printer before it is sent to a recipient organization.

Tips For Replication

Motivate computer donors by providing incentives (i.e., tax breaks).

Identify community-based programs to receive donated computers.

Show donors that participating is worthwhile and beneficial to the community and the organizations that receive computers.

When computers arrive, a worker checks them and determines the degree of repair needed. Workers from Community Workshops, a local rehabilitation center, clean the keyboards and monitors. East West technicians rebuild computers by replacing faulty parts with working parts from other donated computers. For computers that are determined to be irreparable, technicians dismantle them and

recover the usable parts. The technician checks all rebuilt computers to guarantee that they are in total working condition and loads them with software. The computers are then stored until they are shipped to a recipient organization. Recipients may secure a financial sponsor for a donation or self sponsor to cover the cost of remanufacturing.

East West has been undergoing a strategic redirection over the past six months. Due to

Therefore that market is no longer available to them.

shrinking availability of federal and private grants and the changing international computer marketplace, East West has been striving toward economic self sufficiency. Particularly in the former Soviet Union, where East West has provided many rehabilitated computers over the years, the economy has turned around to the extent that locally produced computers are more readily available and affordable, thus reducing the demand for East West's assistance.

East West carefully evaluated its operating procedures and costs with an eye toward determining the precise costs associated with manufacturing various types of equipment. East West now requires of donors a sponsoring fee based on precise remanufacturing costs. The strategy has proved effective and East West now has plans to expand their operations over the next year.

PAGE 22 INSTITUTE FOR LOCAL SELF-RELIANCE

Jim Maher started Electronics Processing Associates, Inc. (EPAinc) to address the growing electronic waste disposal problem that many businesses faced. Jim Maher had been previously employed in the electronics recycling industry and realized the environmental and economic benefits electronics reuse/recycling could provide to businesses. EPAinc focuses on demanufacturing electronic equipment, reusing the component parts, and recycling the Cathode Ray Tubes (CRTs) through EPAinc’s proprietary CRT recycling technology.

EPAinc has developed service contracts with original equipment manufacturers (OEMs) and other businesses to pick up waste electronics, recover and reuse the good components, and recycle the remainder. Through these service contracts, the OEMs are provided with an environmentally friendly method of dealing with waste electronics and a cost savings over traditional disposal methods. EPAinc also provides a service to the Lowell community by accepting used electronics on a drop-off basis and reusing/recycling the components.

Jim Maher, President Electronics Processing Associates 133 Congress Street Lowell, Massachusetts 01 852 Phone: 508-970-2700

E-mail: FOX: 508-970-3700

Type of operation: For-profit

electronics processing/recycling operation

Start-up date: March 1, 1993

EPAinc stores received electronics for one month until they are processed. 8 to 10 workers, on a line, disassemble the electronics. The workers remove the parts (metals, circuit boards, chips, plastics) from the disassembled electronics and stored them in separate bins until there is a sufficient volume (1 truckload)

of total materials to be sold to a broker or end- use manufacturer (materials collected from the UMass IPF are added to these materials). Workers process the cathode ray tubes (CRTs) using EPAinc’s proprietary CRT processing technology.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 23

When laid off from his job as a mechanical engineer in the early 1980s, Vladimir Pisarenko, president and founder of Electronic Recovery,

electronic equipment, as well as excess electronics inventories collected from other manufacturers.

Inc., made the decision to start a business of his own. Understanding the value of used computer components, he saw the potential to make use of equipment others had discarded.

Today, the business that started with an initial $40,000 investment is bringing in over $1 million in sales annually. New employees participate in a comprehensive training

He began collecting used computers in a small facility on the northern end of Minneapolis, and within a few years, his current business partner, Gennady Geyfman joined him in his venture. Operating under the name ”Electronic Recovery,” they soon acquired their first major collection contract, a five-year agreement with the Unisys Corporation.

Electronic Recovery soon outgrew its first facility and moved to its present location on the outskirts of downtown Minneapolis. Here, the recycling and reuse facility also operates its sales and retail division, Midwest Electronics. Through Midwest Electronics, Electronic Recovery sells refurbished computers and other

program that provides them with technical skills to repair and disassemble computers. Employees are also trained to work in Midwest Electronics’ retail section, where customers interested in refurbished or excess electronic supplies are provided with a full service warranty on all purchases.

Electronic Recovery, Inc. has grown to a facility with nationwide service and shipping contracts as far as China and Taiwan. Its founder’s early understanding of the potential use for discarded electronics, along with a skilled, efficient staff, has allowed Electronic Recovery, Inc., to become the successful operation it is today.

Vladimir Pisarenko, President Electronic Recovery, Inc. 124 12th Avenue South Minneapolis, MN 5541 5 Phone: 612-338-2466 FaX: 61 2-338-3834

Type of operation: for-profit computer reuse and recycling

Start-up date: 1984

Customers in retail showroom.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 25

Electronic Recovey, Inc.

Electronic Recovery has contracts with OEMs and other businesses to recycle and refurbish their excess computers. The process is begun by employees who receive incoming equipment and determine whether a given item is reusable or whether it should be scrapped. Materials that are scrapped are broken down for recovery of precious and precision metals (Al, Cu),

plastics, and iron, which are sold to local smelters. Of the materials broken down for recovery of individual components, about 40,000 pounds per week of materials are sent overseas, primarily to China and Taiwan. It is not profitable to process these materials domestically because of high labor costs.

Vladimir Pisarenko advises newcomers to be careful with the technology they use, to prevent competitors from "stealing" their ideas.

He also credits his background as a mechanical engineer with providing him with the technical knowledge he needed to make his operation successful.

PAGE 26 INSTITUTE FOR LOCAL SELF-RELIANCE

The Goodwill Computer Recycling Center (CRC) is a business unit of Goodwill Industries of Pittsburgh, a private, non-profit human and social organization. Goodwill provides jobs, job training, and other services to people with disabilities (Goodwill clients).

The CRC provides benefits to its volunteers, the Goodwill clients it employs, and local students enrolled in computer repair classes. CRC volunteers upgrade their skills by repairing computers. The Goodwill clients receive valuable job and life skills by working for the CRC to disassemble unrepairable computers. Additionally, the CRC provides internships and training to students enrolled in computer repair classes at local technical schools, high schools, and vocational programs.

The CRC sells repaired computers at Goodwill prices to qualified non-profits and to the general public through its retail stores. The CRC has received a grant from the Buhl Foundation, which subsidizes the cost of providing computers to low-income students.

Carnegie Mellon University made the first computer donations to the CRC. It donated 400 used Macintoshes valued at more than $35,000. By starting off with such a high-profile donation, the CRC received valuable media exposure. Carnegie Mellon continues to assist CRC by sharing its technical knowledge on computers and computer refurbishing.

Type of operation: Nonprofit computer reuse

Start-up date: November 1995

Goodwill client disassembling an unrepairable computer.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 27

Goodwill Computer Recycling Center

Student volunteer repairing a computer.

Goodwill clients disassembling computers.

When donated computers arrive at the CRC, the CRC coordinator checks them to determine if they are repairable or need to be dismantled for recycling. Volunteers repair computers in the computer repair area. Recipient organizations pick up their computers from the CRC. Excess equipment is sold through Goodwill’s retail stores helping finance the CRC’s cost operation and job training programs.

Goodwill clients dismantle the unrepairable computers in the recycling area. The workers place the parts (chips, circuit boards, plastics, wiring, aluminum, and steel) from the scrap computers in bins. The CRC sells these parts to recycling companies who collect from the site. The CRC generates two tons of salvaged parts and materials per month.

Tips For Replication

Access to resources and talented individuals.

Expect to receive a large quantity of donations right away.

Send press release to local papers to start generating donations.

Be realistic about your ability to respond to recipients’ needs.

Good luck!

PAGE 28 INSTITUTE FOR LOCAL SELF-RELIANCE

materials for the arts

Materials for the Arts (MFA) is the nation's oldest municipally operated materials reuse program dedicated to the arts. It is a joint program of NY City's Department of Cultural Affairs and Department of Sanitation's Bureau of Waste Prevention, Reuse, and Recycling. Local businesses and individuals donate working electronics and other reusable items, to MFA, who transfers these to nonprofit cultural groups; artists working in the public sector; community, health, and social services with arts programs; and city agencies. Recipients, who must be located in New York City, use contributions to improve facilities, teach classes, create theatrical sets and costumes, present art work, and hold events.

Contributions are tax deductible and MFA provides free pickups. Donations must be in good condition and be actually usable. MFA does not accept broken items, mattresses,

clothing, kitchen utensils, or small appliances.

MFA began as a "desk operation" in 1979. By 1980 it was using 3,500 square feet of donated basement space in Queens. In 1990, the warehouse moved to a 10,000 square foot space in Manhattan, adjacent to the City's central business district and convenient to the nonprofit groups it serves. MFA continues to expand and is planning to double its warehouse space, accept more donations, and offer more services to a more diverse customer base.

It will soon be opening a computer repair shop at its site in conjunction with Technical Artistry, a nonprofit group providing technical services (such as lighting, sound, video, and computer) to the arts community. Technical Artistry staff will test equipment, purchase necessary parts, perform repairs, and install basic ,software packages. MFA will handle distribution.

Customers "shopping" at Materials for the Arts warehouse.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 29

Materials for the Arts

Computers, printers, and other electronic equipment displayed at the warehouse. Each item carries a tag indicating donor and value.

Tips For Replication

Garner support of a government agency or nonprofit group: arts agency, community group, or corporation/foundation.

Figure out community needs and customer base (need not be focused on the arts community).

Assess local corporate interest. Educate CEOs about reuse. Businesses dump a lot of reusable materials.

Form small but high-powered advisory committee of support.

List possible contributors and recipients, and develop budget.

Find warehouse with good access and convenient to customers.

Investigate opportunities for volunteer help.

Bond mover/drivers. Cover vehicles with insurance and maintenance agreements.

Mover/drivers load items into the warehouse; make any changes from the original list on the pickup sheet; and weigh items. The completed pickup sheet information is recorded into MFA's computerized system, which generates a label listing donor, code number, item, and date of entry into warehouse. Donors receive a thank you letter (for tax purposes), which describes items and the estimated fair market values as assigned by the donor.

Once materials are tagged, they are displayed in the warehouse, which is set up as a store. For instance, furniture, computers and related components, paint and varnishes, paper, and books are all in separate areas. Most items are laid out neatly on shelves. Others such as buttons and zippers are in bins.

Recipients (or customers) can "shop" on Tuesdays and Thursdays, 9:30 AM to 1:30 PM. They first have to register with MFA by sending a request letter, their "wish list" of desired items, proof of nonprofit status, a list of funding sources, a list of the people on the Board of Directors, the names of staff who are authorized to accept donations and sign contracts, and printed information on the organization. If the group meets all program criteria, MFA sends an

official letter of acceptance, contract, and warehouse rules. Once MFA receives the signed contract, the organization may participate.

Registered groups make appointments to shop (no more than 3 people per group). They first check in at the counter, where they receive a clipboard with a worksheet for recording items wanted, and red tags, which they use to reserve wanted items. Shopping carts and other moving equipment are available; otherwise customers have to arrange for their own handling and transporting of items. MFA issues recipients computer-generated invoices (which includes donor names and addresses). If they are unable to take items with them, they must return the following shopping day (by appointment) to pick them up. Recipients have to mail a thank you letter to donors and send a copy to MFA. Thank you letters serve two useful purposes: donors recognize that items are put to use and recipients introduce their activities to contributors.

After 13 years of manual record-keeping, MFA has computerized its system. Its data base tracks incoming and outgoing items, along with recipient and donor information.

PAGE 30 INSTITUTE FOR LOCAL SELF-RELIANCE

The National Cristina Foundation (NCF) pioneered the creation of a national donation channel for computer technology that is no longer needed and is being discarded from its first place of service. NCF has created a distribution network for donations of surplus or previously used computers which it receives from businesses and the public. The donated equipment is directed to organizations across the United States and internationally who have been pre-screened for eligibility in the NCF Network of grassroots partners. These are local, state, national and international training or educational organizations (501(c)(3)), or state and other public agencies that serve people of all ages who have disabilities or are disadvantaged. NCF state and national partners integrate technology donations throughout the multiple sites of their operations. There are no membership fees in this grassroots network. NCF is also a U.S. Agency for International Development PVO.

The NCF network is designed to effectively utilize donations of previously used PCs and related technology, diverting these items from the landfill. Equipment is directed to organizations in the region of the country from which it has become available. NCF frequently works with corporations to direct computers to schools and other training organizations within the communities in which they have a presence. A number of NCF partner sites are integrating computer repair and configuration strategies into their local procedures in cooperation with community or computer user groups or developing appropriate support procedures within their specific programs. Many volunteers contribute their energy in support of these efforts. Establishing strategic alliances for the economic benefit of the larger community is central to NCF planning.

Girl using computer reclaimed through the NCF's distribution network disabilities.

NCF distributes computers to agencies that serve people with

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 31

National Christian Foundation

Through the NCF Learning Network, which has been recently funded through a grant by the US. Department of Commerce, NCF is developing a multi-state learning organization to support managers of computing technology re-utilization programs.

The NCF Learning Network is being designed to provide collaborative support and assistance with the various challenges and underlying issues associated with the donation of computer technology resources.

PAGE 32 INSTITUTE FOR LOCAL SELF-RELIANCE

In many ways The Surplus Exchange (SE) of Kansas City, Missouri exemplifies the model that many reuse operations around the country strive to achieve. SE has a priority system where reuse of an item as originally intended is their ultimate goal. Where the item is not reusable or refurbishable, it is recycled as completely as possible, capturing the highest degree possible of the value of an item and eliminating waste.

To accomplish this goal SE's warehouse is set up like a retail office goods establishment where customers shop to supply their needs. SE's warehouse replicates the convenience and wide selection of stores. Member organizations are about 1200 area non-profits who pay a one

time only membership fee of $50 which entitles them to shop SE's store to their hearts' content- purchasing goods, both electronics and other business supplies and furniture, at substantially reduced prices. The Surplus Exchange's daily operations are almost totally derived from product sales. SE has received some grant and foundation funding for expansion projects.

The Surplus Exchange handles all types of office goods and furniture as well as medical and industrial equipment and arts materials. SE also has a significant electronics reuse operation with four technicians who diagnose, sort, repair, and dismantle computers and other electronics. SE does purchase some new and refurbished parts for repair.

Richard Fleckenstine, a Surplus Exchange volunteer technician, repairs a computer for an area nonprofit organization

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 33

The Surplus Exchange, Inc.

Inventoried printers await distribution to area nonprofits and the general public.

Tips For Replication

Understand trends in

Don't promise more than you can

marketplace

deliver

Local businesses call Surplus Exchange reporting items to be picked up. The warehouse manager schedules the item pickup by truck crew, at no cost to the donor business. The items are delivered to SE's warehouse where they are sorted, tested, and inventoried. Those electronic goods deemed suitable for end users are sent to tech shop for further testing and repair.

The repaired items are displayed for sale to not- for-profit organizations and the general public.

Those items to be brokered are sent to third floor warehouse and immediately broadcast faxes and phone calls are made to find buyers. Those items deemed non-saleable (based on prior experience with like items) are evaluated to determine if the cost of dismantling is worth the higher value of individual parts. If so they are sent to SE's demanufacturing crew or if not they are stored for shipping to an electronics processor.

PAGE 34 INSTITUTE FOR LOCAL SELF-RELIANCE

Marc Fournier (Waste Manager, UMass IPF) started the electronics equipment demanufacturing line at the University of Massachusetts Intermediate Processing Facility (UMass IPF) as a way to divert additional materials from the UMass waste stream. The UMass IPF began storing all types of electronics from the university in its warehouse for a few years, while Marc Fournier researched electronics demanufacturing technology. Jim Maher of EPAinc. (a Lowell, Massachusetts electronics recycling operation, see profile) was hired by the UMass IPF to help design the initial demanufacturing line and to determine what materials were marketable. In August 1993, the UMass IPF began disassembling the stockpiled used electronics.

The UMass IPF employs students to disassemble used electronics from UMass, other

area universities, local municipalities (particularly Amherst), and private individuals. The UMass IPF not only provides jobs for the students but also provides them with electronics demanufacturing training.

The electronics demanufacturing line at the UMass IPF is the largest publicly owned and operated electronics recycling facility in the country. By starting the electronics demanufacturing line, the UMass IPF has been able to provide new work study jobs, generate revenues from the sale of the recycled components, create new markets for materials not previously recycled, divert hazardous material like lead from landfills, and reduce waste disposal expenses (recycling/reusing electronics is approximately $10 per ton cheaper than landfill disposal).

Student demanufacturing an electronic item ut the electronics demanufacturing station.

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University of Massachusetts

Boxes of electronic components ready to be shipped to EPAinc.

After collection and delivery of used electronics, drivers store the electronics until processing. The process is very simple and consists of one student worker (working 2 to 3 hours at a time) at a workbench dismantling the stored electronics. The student walks to the electronics storage area, picks up an electronic item, and brings it to the workbench. He/she then uses an air-powered drill/screw driver

and assorted hand tools to disassemble the electronic item and places the components (circuit boards, drives, chips, power supplies, etc.) into gaylord boxes. The IPF stores these bins until a sufficient quantity has accumulated (1 truckload; approximately 40 gaylord boxes). Once a truckload of components has accumulated, the IPF ships it to EPAinc.

Tips For Replication

Work with local private electronics scrap dealers to design program.

Large volumes of electronics must be demanufactured to make program cost effective.

Need sufficient storage space.

PAGE 36 INSTITUTE FOR LOCAL SELF-RELIANCE

Urban Ore is a materials salvage business founded in Berkeley in 1980. It receives and salvages electronics and other materials that would otherwise end up in the landfill. Initially, with permission, Urban Ore salvaged materials from the Berkeley landfill. Today, only about 15 percent of the materials sold at Urban Ore are salvaged from the Berkeley transfer station (the landfill closed in 1983). Residents and local businesses bring in most of the rest, motivated in part by Urban Ore's willingness to buy most of what it sells.

Urban Ore operates several divisions: the Arts and Media Exchange (AMX), the General Store, the Building Materials Exchange (BMX), Salvage and Recycling, Outside Trader Division, and a Special Projects Division. Its operations are located four blocks from the refuse transfer station, on 2.2 acres of commercial land. AMX sells electronics, arts, books, records, and other delicate items, BMX sells salvaged building materials, and the Store sells household and commercial goods. The Outside Trader Division does limited pickup service, including curbside collection of reusables from households in conjunction with

the City's annual bulky trash collection program. Salvage and Recycling recovers reusable items at the transfer station and dismantles nonreusable items for recycling.

Urban Ore represents a high-volume reuse enterprise that deals with a wide range of product values. It supplies many low-volume, high-value reuse entrepreneurs, including secondhand store owners and remodeling contractors.

AMX, where electronics are handled, does not have an extensive repair operation. It sells working electronics that it receives and does some light repair or disassembly for recycling of the remainder. Some items are sold that need work. The operation is geared towards do-it-yourselfers.

Urban Ore exemplifies the green civic-minded business. Its overall purpose is total recycling and ending the age of waste. It contributes to the community in many ways: creating high- paying jobs; diverting discards to their highest and best use; and paying local residents and businesses $250,000 a year for their reusables.

Equipment for sale of Urban Ore's Arts and Media Exchange.

INSTITUTE FOR LOCAL SELF-RELIANCE PAGE 37

Urban Ore

Items are salvaged for recovery at the Berkeley transfer station.

Tips For Replication

Have good broker.

Get word out to potential

Run honest business.

Carefully control costs.

suppliers.

The heart of Urban Ore’s business is buying and selling discarded reusable goods. Its staff purchase electronics from individuals and businesses and sell these commodities to the general public. Setting prices for items bought and sold is more art than science. Urban Ore’s staff learn from experience what items can sell at what prices and buy accordingly.

Urban Ore has two full-time salvagers who park a truck at the transfer station’s tipping floor and pull out salvageable items, including electronics, as loads are dumped. Other goods are received by delivery from individuals or picked up from people with large lots.

Urban Ore uses city scales to weigh all loads that its workers recover either through salvaging or the pickup service. Electronic materials are brought to the test area where

they are plugged into test monitors and keyboards. Some machines are repaired, others are priced and put up for sale in the Arts and Media Exchange’s sales area. Unrepairable computers are sent to the recycling area where they are disassembled. From there the components and materials (circuit boards, plastics, tin casings, and wire) are sent on to the appropriate recycling company.

Urban Ore prefers to sell the materials it receives for reuse. Materials that cannot be sold are recycled at local recycling operations. Fast material handling is the key to its business. Nearly everything is sold; the company maintains a list of about fifty charities and nonprofits that may receive occasional donations of material.

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Appendix A

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Appendix A

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Appendix B

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Appendix B

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Appendix B

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