1. Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

2. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 2 Sustainable Financing

3. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 3 Financing Discussion at Boston Meeting Ideal World Preview of Financing Systems Questions/Open Discussion: What financing issues do you want addressed in the dialogue? What additional information do you need for a financing discussion in CA?

4. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 4 Financing Discussion at Sacramento Meeting Presentation on financing system research Fee-related systems Deposit systems Other financing systems Can we get the cost of managing leftover paint to zero? What can be done to contribute to making paint collection and management programs profitable?

5. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 5 Financing Discussion at Sacramento Meeting At what point do we think it will be profitable to collect and process leftover paint? Under what scenario might funding be necessary? What might need to be financed? Attributes of a sustainable financing system

6. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 6 Leftover Paint Management: Future Scenarios

7. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 7 Bottom Line Can Reduce Volume and Cost Somewhat Need to Manage the Rest There are Uncertainties Volume Cost

8. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 8 Dual Path Reduce Leftover Paint and Management Costs – Pilot Projects and Initiatives Begin to Develop Sustainable Financing System to Manage Leftover Paint

9. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 9 Proposal Proceed with pilots/initiatives to reduce leftover paint management costs (2-3 years). Delay development of financing system for 18 months.

10. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 10 Proposal Form Third Party Organization (TPO) to manage pilots/initiatives. Allows for testing potential future management model TPO membership comprised primarily of manufacturers with multi-stakeholder advisory panel.

11. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 11 Proposal Develop fund with sole purpose being to run pilots. Primary source is manufacturers. Possibly supplemented by other funds. TPO manages fund. Ensures level playing field Fosters flexibility Pilots/initiatives and TPO are experiments for potential future expansion.

12. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 12 Proposal Dialogue group would still need to agree on: Pilots/initiatives that TPO would manage. Geographic locations of pilots/initiatives. Budgets, staffing plans, and timelines of pilots/initiatives. Amount of funding needed. Performance metrics and evaluation criteria for pilots/initiatives – define “success.” Composition of TPO.

13. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 13 Proposal TPO has flexibility to manage pilots. TPO could also: Research uncertainties (cost, volume, extent of infrastructure, etc.) Test additional pilots Dialogue group meets every 6 months. Development of financing system resumes after 18 months (prior discussion possible).

14. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 14 Proposal Financing workgroup continues to meet post-DC meeting to refine proposal for presentation/agreement in Chicago. Delta/Plus

15. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 15 TPO Examples Rechargeable Battery Recycling Corp. CARE Eco-Peinture Product Care Association Resource Recovery Fund Board

16. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 16 Purpose of Pilot Projects/Initiatives Test potential to lower leftover paint volume and management costs. Test possible strategies for nationwide full- scale implementation.

17. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 17 Questions for Group Discussion What pilot projects/initiatives do we want to fund? What should be the sources of funding to run the pilot projects? Generally, how much funding will be needed?

18. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 18 Questions for Group Discussion What should be the performance metrics and evaluation criteria for the pilots/initiatives? What is a reasonable timeframe for getting results from pilots/initiatives? What entity is best suited to be the TPO? What should be the governance structure of TPO?

19. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 19 Additional Questions What should be the realm of TPO decision- making authority? What are the TPO decision-making protocols? Does TPO report to dialogue group or is it independent? At what point do we assess performance of TPO?

20. PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004 20 Additional Questions What should be the mission of the TPO? What should be the mechanism for the TPO mission to change over time? How would a TPO work? Who would manage TPO? Does TPO need to be incorporated?