1. Overview of the PSI Paint Product Stewardship Initiative May, 2010 Scott Cassel, Executive Director/Founder Product Stewardship Institute, Inc.

2. PROBLEM: Excessive Waste 10% of paint sales becomes leftover (2006 = 75 million gallons in the U.S.) $640 million dollars/yr mgt cost (avg. cost: $8/liquid gallon) Consensus producer-financed legislation o Oregon demonstration state (model) Roll out to 8 other states: VT, CT, CA, FL, IA, NC, WA, MN Roll out nationally Potential Benefit: About $6.0 million PER YEAR in direct savings or service benefit for Oregon. Paint 2 © Product Stewardship Institute – May 2010

3. PSI Role in Paint Dialogue  Research/technical competency  Forum for multi-stakeholder dialogue  Design and implement projects  Clearinghouse for paint product stewardship policies and programs  Monthly briefings and technical advice 3 © Product Stewardship Institute – May 2010

4. PSI Dialogue Process Research Stakeholder interviews Background report Stakeholder meetings Designed, facilitated Workgroup calls between meetings Pilots, initiatives, state demonstration Evaluation, roll out, refinement 4 © Product Stewardship Institute – May 2010

5. PSI Dialogue Process All stakeholders included Consensus every step of the way Decisions based on data (projects) Active facilitation/mediation 2 MOUs documented agreements 5 © Product Stewardship Institute – May 2010

6. Stakeholders National Paint & Coatings Association U.S. EPA State & local governments Retailers Painting Contractors Recycled paint manufacturers  PSI facilitation 6 © Product Stewardship Institute – May 2010

7. Key Dates Sept. 2002 – PSI presentation to NPCA Sept. 2003 – Completion of Paint Action Plan Sept. 2004 – Completion of 4 meetings March 15, 2005 – 1 st MOU Signed March 15, 2007 – end of 2-year 1 st MOU 7 © Product Stewardship Institute – May 2010

8. 1st Paint MOU Project Portfolio 1.Source Reduction Survey/Pilot 2.Reuse Manual 3.Infrastructure Report 4.Recycled Paint Standard (Green Seal) 5.Recycled Paint Marketing 6.Recycled Paint Regulatory Issues – White Paper 7.Sustainable Financing Options 8.Lifecycle Assessment and Cost/Benefit Analysis 8 © Product Stewardship Institute – May 2010

9. Recycled Paint Standard  Recycled-content latex paint – completed Aug. 2006  Consolidated (95%+ p.c.) and Reprocessed (50%+ p.c.)  Green Seal environmental standard (GS-43)  Incorporates performance standards from Master Painters Institute  Assurance: recycled paint performs as well as virgin paint 9 © Product Stewardship Institute – May 2010

10.  About 12 recycled paint manufacturers in North America http://www.productstewardship.us/displaycommon.cfm? an=1&subarticlenbr=141 http://www.productstewardship.us/displaycommon.cfm? an=1&subarticlenbr=141  Northeast Canada:  Laurentide (Recycled Paint Company)  Hotz Environmental  Several companies are Green Seal certified.  Purchase of recycled paint is important step to lowering cost of leftover paint management programs. Recycled Paint Standard © Product Stewardship Institute – May 2010 10

11. Key Dates March 21, 2007 – ACA Board Resolution Oct. 24, 2007 – 2 nd MOU completed June 2008 – 1 st MN Governor bill veto May 2009 – 2 nd MN Governor bill veto July 2009 – OR paint law passed!!! (1 st in the nation) 11 © Product Stewardship Institute – May 2010

12. Potential Rollout to Other States 12 © Product Stewardship Institute – May 2010

13. Key elements of each paint bill 1. Manufacturer (or stewardship organization, Paint Care) sets up convenient collection system 2. Pay an “architectural paint stewardship assessment” for each container of paint sold in state Fee covers cost to manage leftover paint Fee paid by manufacturer (into Paint Care), passed to retailer, passed to consumer 3. Anti-trust provision to allow cost passed to consumer 4. Uniformity of assessment/funding system 5. Level playing field (don’t participate, can’t sell product) 13 © Product Stewardship Institute – May 2010

14. Key elements of each paint bill 1. Manufacturer submits plan to state for approval 2. State approves manufacturer plan 3. State reports periodically to legislature 4. Promote reduction and reuse of leftover paint 5. No consumer end of life fee 6. Administrative fee paid to state agency for oversight/enforcement. 14 © Product Stewardship Institute – April 26, 2010

15. Recipe for Success Willing industry (one model vs. piecemeal) State/local government ability to articulate interests Federal agency technical/financial involvement Business relationships developed through face to face meetings PSI giving over ownership to PPSI © Product Stewardship Institute – May 2010 15

16. Update OR DEQ and ACA still negotiating over industry plan DEQ needs to approve plan before program can start July 1, 2010 start date in law VT legislation – failed 2010 (concerns over fee) CT legislation – failed 2010 (ran out of time) CA legislature – currently being held pending resolution of state fiscal crisis 16 © Product Stewardship Institute – May 2010

17. Context for Evaluating Dialogue Beginning of product stewardship movement/bedrock issue Little legislative threat/Little “leverage” Latex paint is not toxic 1 st time this process was used in the U.S. We now have a public/private model © Product Stewardship Institute – May 2010 17

18. Financial Investment (Through April 15, 2010) (not including in-kind or HHW collection costs) o State and local government$750,000 o ACA$540,000 o U.S. EPA$260,000 o Dunn-Edwards$ 35,000 o PSI Foundation Grant$ 30,000 o Recycled Paint Mfrs$ 27,000 o Organizations $ 6,000 TOTAL: $1,658,000 (est. to date) 18 © Product Stewardship Institute – May 2010

19. More Information Scott Cassel PSI Executive Director/Founder 617-236-4822 scott@productstewardship.us www.productstewardship.us 19 © Product Stewardship Institute – May 2010