1. United States Postal Service NEW Federal Recycling Program

2. Agenda  eWaste Situation and Directives  Federal Recycling Program  The Transaction is Easy  Program Participants  Summary  Appendix 1

3. eWaste Situation  The average U.S. household spends $1,407 per year on new electronics  The average home has twenty-four (24) used, unwanted electronics  130 million cell phones are retired each year  Electronics contain hazardous materials (such as lead) that cause health and environmental damage when trashed instead of recycled  Only 10-15% of all used electronics are being recycled  In a USPS survey, 35% of respondents said that they are not willing to travel ANY distance to recycle electronics at a local collection center Improper Disposal is Harmful to the Environment 2

4. eWaste Directives Policies to Combat Electronics Waste (eWaste) 1 http://www.gsa.gov/portal/ext/public/site/FMR/file/Part102-_36.html/category/21858/ 2 http://www.epa.gov/osw/conserve/materials/ecycling/rules.htm  Executive Order 13514: U.S. agencies must “employ environmentally sound practices for the disposition of all agency excess or surplus electronic products”  e-CFR 102-36: GSA policy on the Disposition of Excess Personal Property 1  State eWaste Regulations: 25 states have passed laws mandating statewide e-waste recycling 2 3

5. Federal Recycling Program USPS Introduces a Comprehensive Recycling Program for Federal Agencies  US Postal Service 1 st to Deploy  Supplements Existing Recycling Programs  All Domestic Sites, including  Alaska, Hawaii,  Puerto Rico, Virgin Islands, Guam  Includes Agency and Employee  Small Electronics and Printer Cartridges  At No Cost for U.S. Federal Agencies  Simple to Launch and to Use  Agency Reports 4

6. Program Overview  USPS is assisting U.S. federal agencies to be more green by allowing the customer agencies and their employees to recycle qualified end of life products FREE of charge.  The USPS designated recycler receives residual value in these products and as such by agreement will fund the transportation cost via US Mail from the federal agencies location to the certified recycler’s destination.

7. Program Overview  The Program is Divided into Two Major Categories 1.A recycling program for federal agencies on a national level for official equipment at the agency location 2.A recycling program for federal agency employees disposal of their employee owned property from home

8. Program Overview  Web based (two web sites) 1.For official equipment only, shipped from the agency location 2.For employee’s personally owned equipment only, shipped from home  Simple Process 1.Enter information on web site 2.Print label 3.Pack in box (not provided, recommend re-use of boxes) 4.USPS picks up with existing mail. Provides a Process to Separate Federal Assets from Employee Owned Equipment

9. Security & Tracking 8 Separation of Agency & Employee Property Protocols are in Place

10. Separation of Agency & Employee Property Official Agency Assets Shipped from an agency location No change to policy & protocols for electronics Security access is required to process official agency assets on all electronics User name & password Managed by agency Ink & toner cartridges can be processed by any employee

11. Separation of Agency & Employee Property Employee Owned Equipment Recycle personally owned equipment Shipped from employee’s home No user name and password is needed System ask user to confirm it is personally owned All qualified personally owned items can be sent An added benefit of the federal recycling program has the ability to create an environment for employees that is truly green. The program encourages employee participation with an incentive for employees sending personally owned equipment from their home. Employees personally owned equipment may be entitled to payment of specific electronics, as indicated on the designated employee web site.

12. What Items Qualify? 11 Recycled Items are Limited to the Above Accessories may only be sent when packed with cell phones or computers No Monitors No fax Machines

13. What Items Qualify? 12 Recycled Items are Limited to the Above  Media Games & Games Systems  DVD & Blu-ray Players

14. USPS BlueEarth Web Site (NEW)  Central Depository of Information  Specific to Sustainability Programs  Launched April 22nd  http://blueearth.usps.gov http://blueearth.usps.gov 13 The Transaction is Easy

15. Select “Get Started” to link to the transaction page 14

16. The Transaction is Easy 1. Select your Agency 2. Select Agency Assets or Personally Owned 3. Describe your Items 15

17.  USPS Parcel Return Service Full Network  Package pick-up via the internet  Pallet pick-ups are available – one label per box on pallet” e.g. 50 boxes, 50 labels  Ability to print more than one label at a time and mail at a later date 16 Security & Tracking

18.  Steps Note: Instructions on Each Web Page  Enter Information  Print label  Pack in box (not provided, recommend re-use of boxes)  Schedule free pick-up https://tools.usps.com/go/ScheduleAPickupAction!input.action https://tools.usps.com/go/ScheduleAPickupAction!input.action  Print confirmation page for your records  USPS sends an e-mail confirmation receipt of scheduled pick-up  The mail carrier leaves a pickup notification “Thank You” letter with the customer  Track your packages via www.USPS.comwww.USPS.com 17 Security & Tracking

19. NOTE: Add Instructions if necessary

20. Admin Reports Log On Admin Log On

21. Recycling Activities Report  Accessible by designated individuals  Contains agency and employee transactions  Future  By Sub Agencies, Locations, etc.  Ability to create own admin user name & passwords 20

22. Disposition Report  Agency Name  PO Number  Tracking Number  Serial Number  OEM  Model  Description  Pass or fail  Sanitization method  Destroyed  Wiped  Date completed  Recycling vendor  Postal code  Authority code 29  FSC Group 70 Disposition Reports  Follows GSA & EPA reporting requirements  Reports available on line  Access via User Name & Password  Excel format  7 Day delay from date received

23. Program Participants 22

24. Program Participants (Pending) 23

25. Federal Recycling Program Clover Technologies Group 24

26. Recycler Processing  When the PC is Received  Scanned  Serial #  Model #  Information is documented for the reports  Data is wiped  Follows the data sanitization standards of the DOD, Standard 5220.22-M  Back-up to agencies process  Certificate is issued

27. Federal Recycling Program Phase III  New Products Effective March 14, 2014  Walkie Talkie radios  Switches  Cables  Key boards  Terminals  Hard drives  Small personal printers  Fax Machines  Label printers  Adding machines  Video production equipment  Phones  Small PBX systems NOTE: A) Items can be sent individually and do not need to be part of other equipment. B) All items can be boxed together. C) Data will be wiped from electronics and certificate issued. D) Certificate of destruction will be issued when requested. E) Items will be tracked via current EPA, GSA protocols.

28. Summary  eWaste Recycling Made Simple  No Cost to Activate Program  FREE Pick-up  R2 and e-Stewards Certifications  Proper Re-use, Recycle and Disposal of Products  Transaction Data Captured for Sustainability Reports 27

29. Summary  Supplements Existing Programs  National Reach 155 Million Mailboxes  Compared to other recycling programs  No need to wait for a full truck load for pick-up  Saves storage space  Proven Successes in Sustainability and Recycling Efforts 28

30. Summary  Go for a Test Drive/Demo Site: http://test.fedrecycling.com  Link to the federal recycling program  Active Today http://blueearth.usps.gov

31. Next Steps Federal Agency  Concur that agency will deploy the program nationally  Complete a Memorandum of Understanding  Develop a marketing program to communicate within the federal agency 30

32. Next Steps  USPS will Create a Web Page Specific to the Federal Agency

33. Agency Name

34. Thank You Federal Recycling Program For More Information Ron Kecman ronald.n.kecman@usps.gov 33

35. Appendix Clover Technologies Group Certifications Data Destruction/Data Security Standards Appendix

36. Certifications Clover Technology Group Certifications:  ISO 14001 Environmental Certification- Independent third party validation of environmental stewardship at CES  3 Degrees Partnership- Strategic partnership supporting our renewable energy credit initiatives (REC)  EPA Green Power Partner- EPA recognition of CES’ 100% offset of energy consumption through purchase of REC’s  Waste Wise Program Participant- EPA partnership that recognizes our commitment to waste reduction  Sustainable Forestry Initiative (SFI)- Recognizes our packaging partners commitment to responsible forestry initiatives  Forest Stewardship Council (FSC)- FSC provides a credible link between responsible production and consumption of forest products  Responsible Recycling Practices (R2)- The R2 Standard sets forth requirements relating to environmental, health, safety, and security aspects of electronics recycling 35

37. Destruction/Data Security Standards Clover Technologies Data Destruction Standards – Hard Drives Consistent with the data sanitization standards of the Department of Defense, DOD Standard 5220.22-M, and with the aid of DOD approved software for data clearing. CORE and/or its subcontractors will utilize the following process methods:  Drive Sanitization Utility:  Triple pass overwrites characters across the drive platters  First Pass writes initial character  Second Pass writes complementary character  Third Pass writes random character  Data is rendered irretrievable by standard recovery methods  Allows multiple passes  No drive/partition size limitation  Useable on all IDE/SCSI drives  Destruction/Shredding  If the storage medium is unable to be processed via software destruction, it is physically destroyed.  All such storage mediums will be immediately placed in a secure lock box and transported for shredding.  Equipment is physically shredded and/or smelted at our Electronic Equipment Recycling Company  Compliant with DOD Standards for Classified Material 36

38. Destruction/Data Security Standards Clover Technologies Destruction/Data Security Consistent with the data sanitization, purging, or destruction practices described in the NIST Guidelines for Media Sanitation: Special Publication 800-88, and with the aid of manufacturer approved data clearing software when applicable. CORE and/or its subcontractors will utilize the following process methods:  Digital Camera/Camcorder Memory Cards – An all in one reader should be used to remove any user data from flash or memory cards and format them to factory default settings.  Camcorder Tapes (Any type or size) - All tape-based media should have the exterior case crushed, and the internal tape severed before being scrapped.  DVD or CD Media – All DVD or CD media (rewritable or non rewritable) should be cracked in half before being scrapped  Embedded memory devices –Software specific to the correct unit should be used to sync the unit and use the reset function to remove any user data and restore them to factory default settings.  Smartphones/PDAs/Cell Phones – delete all memory files such as email, photo files, calls made, contact lists, downloads, etc., remove and destroy all media SD cards and sim cards per section 2:2 above, then, select the internal “hard reset” function to reset these units to original factory default settings and test to verify full deletion.  All devices should be tested to verify the data clearing was successful. Any equipment that does not pass data clearing shall be coded as defective and scheduled to be scrapped. 37