COLUMBIA - South Carolina is taking a novel approach to make sure tiny toxic mercury switches in cars are removed from junkyards and scrap dealers by offering recyclers a tax credit for collecting the pellet-size parts.

A House subcommittee unanimously approved an amended bill Tuesday that would offer the credit. And while it's still a long way from becoming law, several groups including the steel industry, dismantlers and automakers, worked together to come up with a compromise.

The mercury switch helps light vehicle trunks and hoods, but when cars are junked and steel mills eventually recycle the valuable metal, mercury from the switches is released into the air and water. Concentrations build up in fish and go up the food chain, posing the greatest risk of nerve damage to pregnant women and young children.

The switches are no longer placed in cars, but many of the vehicles that have them will be abandoned over the next several years.

Other states, such as Maine, have required automakers to pay $1 bounties to junkyards and scrap dealers for each mercury switch. Pennsylvania encourages mercury switch removal by offering a $1 incentive.

The South Carolina bill would make it illegal for dismantlers and salvage yards to knowingly leave the switches, but offers $2.50 tax credit for every switch collected. The penalty for leaving the mercury behind would be up to $200.

While exact figures for a fiscal impact weren't available, a representative of steelmaker Nucor, who worked on the amendment, estimated $200,000 to $400,000 in tax credits would be given in the first year. That number was likely to decline each following year.

The amended bill's fiscal impact is a lot less than the original bill, which called for a $5 bounty as well as about $1.2 million in administration for the Department of Health and Environmental Control.

"We've really reduced the bureaucratic nature of this whole program into something that's very workable and provides an incentive for the recyclers," said Mike Rowe of DHEC.

To get around the administrative costs, the mercury switches would be designated a universal waste, which eases regulatory burdens for hazardous waste. Things such as batteries, mercury-containing thermostats and lamps are also considered universal waste.

After the switches are collected by dismantlers, they would be picked up or shipped using a program run by auto manufacturers.

"It's good for the environment," said Nucor environmental manager Ray Sims.

"If you look at the potential impact not passing this bill, then you're not really considering the environment."

Nucor also stands to benefit financially. New rules to reduce mercury emissions are being considered by the Environmental Protection Agency.

If the switches aren't removed on the front-end, Nucor and the rest of the steel industry will be held responsible.

Some dispute the overall health and environmental impact of the tiny mercury switches because coal-burning power plants are the largest source of mercury emissions in the United States.

However, many agreed the switches should be removed before the vehicles are recycled.

And currently, no one is removing the switches in South Carolina, according to Colin Davis, president of the South Carolina Auto Recyclers Association.

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