PaintCare MRRA Conference | May 3, 2016

PaintCare Inc. o Non-profit 501(c)(3) organization o Created in 2009 in response to Oregon paint stewardship law o Represent paint manufacturers in states that pass paint stewardship laws o Governed by board of architectural paint manufacturers (and retailers) o Design and implement paint management programs (American Coatings Association leads legislative effort)

Why was PaintCare developed? o 65,000,000 gallons of paint are leftover every year (EPA study determined that approximately 10% of paint is not used) o Many municipalities are unable to offer any household hazardous waste (HHW) collection services to their community due to cost o For those that do offer HHW program, as much as half of the materials collected is paint

California Colorado Connecticut District of Columbia Maine Minnesota Oregon Rhode Island Vermont o Oregon – oldest program, began July 2009 o Maine – newest program, began October 2015 o Eights states and DC, combined population of 61 million PaintCare States

Program Goals and Performance Metrics Reduce Reuse Recycle Awareness Convenience

Paint Collection Sites and Services o 1656 Collection Sites 20% HHW, transfer stations, other 80% retail (more than half are manufacturer stores) o Covered cost for more than 900 HHW events o Held 66 paint-only events o Conducted more than 950 direct large volume pick ups (> 300 gallons) Train all non-HHW sites and conduct routine visits to all sites.

Collection Volume and Disposition o Collected ~ 12 million gallons; expecting 6 million gallons in 2016 o Recovery rates (volume collected/volume sold) range from % o 20-30% is oil-based; 70-80% is water based o 98% of oil-based paint is used as fuel (2% reuse) o 69% of latex paint is remanufactured into recycled-content paint 4% is reused 12% is used in alternative product (concrete, landfill cover, etc.) 11% is used for fuel-product 4% is landfilled

General Brochures Drop-Off Site Poster Outreach – Point of Sale Materials Counter Mat

Newspaper Ads Site Locator Tool Outreach – Drop-Off Site Promotion

o Press releases o Radio o Television o Billboards Outreach – Additional Activities o Online o Social media o ProShows o Presentations

Joint Outreach (for HHW and transfer stations)

Fee Structure and Financing Mechanism $0.00 Half pint or smaller $0.35Larger than half pint to smaller than 1 gallon $0.751-Gallon $1.60Larger than 1 gallon up to 5 gallon o Added by manufacturers to wholesale price, then passed down to consumer o Fee is set to cover cost of program (with some reserves) Fees in Vermont, Minnesota, and possibly Maine need to be increased due to lower than anticipated paint sales; and in Oregon due to program growth.

Education and Outreach (10-15%) Transportation and Processing (70-80%) Paint Manufacturers Paint Retailers and Distributors Consumers PaintCare Staff and Overhead (10-15%) State Oversight (2-5%) Cost to operate program ranges $7.23 to $10.61/gallon

Recovery Rates Threshold influenced by: Cost (cost per gallons varies by state) Revenue (sales and container mix vary by state)

o Industry support – before and after o Retail buy-in and participation as drop-off sites o Support and assistance of local and state governments – best when viewed as a partnership o Strong outreach and education effort including field staff and hotline o Reliable and responsive transporters o Amazing staff! What Makes PaintCare Successful

Marjaneh Zarrehparvar (202) John Hurd (802)