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Presentations May 23 – 25, 2005 Portland, Maine For related information visit:

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1 Presentations May 23 – 25, 2005 Portland, Maine For related information visit:

2 Thermostat Product Stewardship Initiative Mercury Reduction Conference Portland, Maine - May 23, 2005

3 Product Stewardship Institute Founded in December 2000 at UMASS/Lowell Incorporated as national non-profit (501 c 3) in Coalition/Affiliate Members 31 State agency members 27 Local agency members Pledge work w/PSI on product stewardship issues December 2004 (moved to Boston MA) Board of Directors: 7 state/4 local

4 PSI Mission “…assists state and local government agencies in establishing cooperative agreements with industry and developing other initiatives that reduce the health and environmental impacts from consumer products.”

5 PSI Projects Mercury Switch Thermostats Electronics (Staples pilot, NEPSI) Paint (Benjamin Moore pilot) Pharmaceuticals Radioactive Devices Tires Pressurized Gas Cylinders

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8 Thermostat Project Champions OR DEQ King County, WA Seattle, WA EPA Region 5

9 PSI Dialogue Process Thermostat Stewardship Action Plan Research Stakeholder Interviews Dialogue (2 meetings) Survey: Issues (7) and Strategies (35) Work groups Agreements Implement agreements/projects

10 Stakeholders Industry Thermostat manufacturers Honeywell, General Electric, White-Rodgers, Invensys Climate Controls Thermostat Recycling Corporation (TRC) HVAC wholesalers HVAC contractors Demolition contractors Retailers (Home Depot)

11 Stakeholders Government U.S. EPA Region 5 12 State 6 local governments NEWMOA Other Energy utility Environmental group (OEC)

12 Thermostat Problem Statement A significant number of thermostats contain mercury, which is a potent neurotoxin. Improper waste handling/disposal of mercury thermostats can result in mercury releases. Small fraction of mercury thermostats being collected. Estimated 11 million thermostats removed in 2003 in the US, according to Frost & Sullivan market report 65,000 mercury thermostats recovered through TRC Mercury thermostats continue to be sold.

13 Point of Agreement All stakeholders believe the collection and recycling of mercury thermostats should be encouraged and increased.

14 Dialogue Focus Collection and recycling HVAC Contractors/Wholesalers Homeowners/non-professionals Demolition contractors New thermostat sales

15 Dialogue Goals (1) Increase the collection of mercury-containing thermostats from HVAC contractors and electrical wholesalers through the TRC program.

16 Dialogue Goals (2)Increase the collection of mercury- containing thermostats from homeowners, demolition contractors, and other non- HVAC contractors through the TRC program and/or other mechanisms.

17 Dialogue Goals (3)Explore the benefits and costs of various types of thermostats, and identify the opportunities and viability of replacing mercury thermostats with non-mercury alternatives.

18 Priority Issues 1.Increase HVAC contractor awareness 2.Increase options for HVAC contractor collection 3.Increase HVAC contractor motivation to participate 4.Measure success of collection program 5.Provide for homeowner/non-HVAC contractor collection 6.Provide for demolition contractor collection 7.Reduce or eliminate the sale of mercury thermostats

19 Current Projects Improve Chain HVAC Wholesaler Participation in TRC Program (March 2005) 31 states where wholesaler headquarters located TRC Expansion To HVAC Contractor Collection Locations (March 2005) Include larger urban and rural HVAC contractors Goal: double number of collection points by end 2005 Pilot Project To Collect Thermostats From HVAC Wholesalers Via HHW Programs (Fall 2005)

20 Other Project Agreements Pilot project to test a financial incentive for HVAC contractors that collect and recycle mercury thermostats and replace them with energy star thermostats (OR, IN, King Cty WA) Mail-back pilot project HVAC contractor outreach strategy Retailer/homeowner education strategy

21 Other Project Agreements Third dialogue meeting to address mercury thermostat sales and other remaining issues: Demolition contractor collection Homeowner collection HVAC contractor collection

22 For more information Product Stewardship Institute, Inc. Scott Cassel Executive Director (617)

23 Presentations May 23 – 25, 2005 Portland, Maine

24 Phasing Out Mercury Switch Thermostats John James Maine DEP May 23, 2005 (207)

25 The Problem n Annual consumption of Hg in thermostats is about 20 tons [2001 data] n Thermostats in use in U.S. represent a Hg reservoir of at least 200 tons. n Each year, thermostats containing 10 to 15 tons of mercury are taken out of service. n A small fraction of this mercury [<5%] is known to be recycled

26 Estimated Annual Consumption of Mercury in Products Total annual consumption = 280 tons

27 Estimated Mercury Reservoirs in Products Total =1968 tons

28 n Electronic thermostats: –Do not have mercury switches –Readily available in the marketplace –Equal or superior in performance to mercury switch thermostats –Programmable, allowing energy savings from timed setback –Generally more reliable, longer service life than mercury switch thermostats The Alternative

29 The Solution n Legislation is the only way to ensure a rapid end to the sale of mercury switch thermostats because: 1.Honeywell enjoys monopoly profits from its round dial, mercury switch thermostat 2.Honeywell is invested in the mercury switch technology; unlikely to change on its own 3.Contractor resistance/homeowner preference

30 n Connecticut effective July 1, 2004 n Rhode Island effective July 1, 2005 n California, Maine, Oregon, and Vermont effective January 1, 2006 n Michigan effective January 1, 2010 States that have banned the sale of mercury switch thermostats

31 Options for banning the sale of mercury switch thermostats n Product specific ban targeting thermostats only, e.g.: “Effective ____, a person may not sell or offer to sell a mercury-added thermostat.” n Generic ban targeting all mercury switches, e.g.: “Effective ____, a person may not sell or offer to sell a mercury switch individually or as a product component.” n Generic ban targeting products based on Hg amount: “Effective ____, a person may not sell or offer to sell a product containing more than one gram of mercury.”

32 Is exemption language needed? n Most states with thermostat bans authorize exemptions if the manufacturer shows: 1.Hg thermostats provide a net benefit to public health or the environment; and 2.A collection system is in place to ensure the thermostats do not end up the trash. n Manufacturers have been denied exemptions in Connecticut (Nov 2003) and Maine (Aug 2004). n Maine Board of Environmental Protection unanimously upheld the exemption denial in a deliberate, 27-page decision (May 2005).

33 Thermostats for the blind n Maine law provides: After January 1, 2006, a person may not sell … a mercury-added thermostat except for a thermostat used by a blind or visually impaired person. n This language has proven unnecessary. n Affordable, non-mercury thermostats adapted or adaptable for use by the blind are readily available. n Affordable, non-mercury thermostats adapted or adaptable for use by the blind are readily available.

34 Thermostat take-back in Maine n Manufacturer run TRC collection program captured about 1000 thermostats in 2004, 5% of estimated number available for collection. n To improve collection numbers, Maine’s thermostat take-back law was amended to require thermostat wholesalers to participate in the TRC program [see PL 2003, c. 640, eff. July 30, 2004] n About 70 wholesalers are subject to this requirement and have been provided with collection bins.

35 Possible amendment to Maine’s thermostat take-back law n We are considering amending Maine law to read: A manufacturer of thermostats that contain mercury or a manufacturer of thermostats that may replace thermostats that contain mercury shall … provide incentives for and sufficient information to purchasers and consumers of the thermostats for the purchasers or consumers to ensure that mercury in thermostats being removed from service is reused, recycled recycled or otherwise [kept out of solid waste or wastewater]. A manufacturer that has complied with this subsection is not liable for improper disposal by purchasers or consumers of thermostats. Manufacturer collection programs conducted in accordance with universal waste rules adopted by the department meet the requirements of this subsection provided the programs capture a substantial percentage of the waste mercury thermostats available for collection, as determined by the department in consultation with the Mercury Products Advisory Committee. n Rationale: Manufacturers argue that the current language requires only that they make a program available; they are under no obligation to help ensure the service is used.

36 References / Resources n North American HVAC Thermostat and Temperature Control Markets, Frost & Sullivan (May, 2000) n A Review of Thermostat Energy Efficiency and Pricing, Lowell Center for Sustainable Production (May 2003) n Eco Manufacturing, LLC v. Honeywell International, S. D. Ind., June 2003 n A Plan to Improve the Collection of Mercury Thermostats, Maine Department of Environment (January 2004) n Findings of Fact and Order re: Appeal of Department Decision Denying Request for Exemption from the Prohibition on Sale of Mercury Thermostats, Maine Board of Environmental Protection (May 2004)

37 Presentations May 23 – 25, 2005 Portland, Maine

38 Department of Environmental Quality GREEN FOR GREEN Contractor Incentive Collection Pilot Presented by Jan Whitworth Oregon DEQ

39 Department of Environmental Quality BACKGROUND Policy Directive in 2000: Product Stewardship Solutions for Mercury ProductsPolicy Directive in 2000: Product Stewardship Solutions for Mercury Products Legislation in 2001Legislation in 2001  Label for safe disposal  HVAC installer notification  Ban on installation in 2006

40 Department of Environmental Quality Background cont’d Thermostats Good Product Stewardship OptionThermostats Good Product Stewardship Option  Economical replacements  Industry recovery program exists  Room to grow in Oregon Collaboration with Product Stewardship Institute (PSI)Collaboration with Product Stewardship Institute (PSI)

41 Department of Environmental Quality Survey Summary - Wholesalers 41% (17 of 42) Participate in TRC Program41% (17 of 42) Participate in TRC Program 100% Increased Awareness Needed100% Increased Awareness Needed 87% Support Incentive Program87% Support Incentive Program

42 Department of Environmental Quality Survey Summary - Contractors 900 Surveys Mailed Out900 Surveys Mailed Out 232 Surveys Returned232 Surveys Returned 60 Participants, 172 Non-participants in TRC Program60 Participants, 172 Non-participants in TRC Program

43 Department of Environmental Quality Contractor Survey – What We Learned TRC Program Easy and Convenient to UseTRC Program Easy and Convenient to Use  57% TRC Program easy to use and drop off convenient  Most use program 2 plus years  Participants plan to continue using TRC program  95% of mercury thermostats from participating contractors recycled through TRC

44 Department of Environmental Quality Contractor Survey – What We Learned Awareness about TRC Program a ProblemAwareness about TRC Program a Problem  Half non-participating contractors not aware  Half non-participating contractors would use if they knew  Many did not know where to drop off thermostats  Most want information via mail and web

45 Department of Environmental Quality Contractor Survey – What We Learned If Participating Contractors Had TRC BoxIf Participating Contractors Had TRC Box  >1/2 recycle more thermostats  >1/2 accept from non-employee contractors  >1/2 accept from homeowners

46 Department of Environmental Quality “Green for Green” Project Objectives Increase Recovery from 1000 to 4000 ThermostatsIncrease Recovery from 1000 to 4000 Thermostats Institutionalize and Sustain Behavior to Use TRC ProgramInstitutionalize and Sustain Behavior to Use TRC Program Save Energy by Promoting Energy Star ReplacementsSave Energy by Promoting Energy Star Replacements Test the Rebate Model to Accomplish These ObjectivesTest the Rebate Model to Accomplish These Objectives

47 Department of Environmental Quality What is “Green for Green”? HVAC Contractors Receive One Rebate Coupon for Each Mercury Thermostat They Return to TRC WholesalerHVAC Contractors Receive One Rebate Coupon for Each Mercury Thermostat They Return to TRC Wholesaler HVAC Contractors Receive a $4 Rebate for Each Coupon Used Toward the Purchase of a New Energy Star Thermostat from a WholesalerHVAC Contractors Receive a $4 Rebate for Each Coupon Used Toward the Purchase of a New Energy Star Thermostat from a Wholesaler

48 Department of Environmental Quality Who are the “Green for Green” Partners? Oregon DEQ – project implementationOregon DEQ – project implementation Portland General Electric – Finance RebatesPortland General Electric – Finance Rebates Third Party Organization – Collection and Rebate ManagementThird Party Organization – Collection and Rebate Management Contractors, Wholesalers – use programContractors, Wholesalers – use program Product Stewardship Institute (PSI) – Coordination and Project EvaluationProduct Stewardship Institute (PSI) – Coordination and Project Evaluation

49 Department of Environmental Quality “Green for Green” Project Components 1 Year Pilot1 Year Pilot Promotion – Direct Mail, Brochure, DisplayPromotion – Direct Mail, Brochure, Display Collection Buckets for TechniciansCollection Buckets for Technicians Wholesalers -Track and Manage CouponsWholesalers -Track and Manage Coupons Contractors – Turn in Thermostats, Use Rebates, Encourage TechniciansContractors – Turn in Thermostats, Use Rebates, Encourage Technicians Pledge Program for ContractorsPledge Program for Contractors

50 Department of Environmental Quality How Much “Green for Green”? Portland General Electric = $20,000 for Rebate ProgramPortland General Electric = $20,000 for Rebate Program Third Party Organization = $1 per rebate transactionThird Party Organization = $1 per rebate transaction Contractor = $4 per thermostat collected/purchasedContractor = $4 per thermostat collected/purchased

51 Department of Environmental Quality Contact Information Jan Whitworth Oregon Dept. of Environmental Quality 811 SW Sixth Avenue Portland, Oregon Phone:


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