May 3-4, 2006 PPSI Meeting - Sarasota FL Lifecycle Workgroup Heidi Sanborn, R3 Consulting Group – Facilitator Scott Cassel, PSI Dave Darling, NPCA – Lead Industry Group David Allaway, OR DEQ – Lead Government Group Dave Nightingale, WA Ecology & NW Prod. Stewardship Council Alison Keane, NPCA Allen Stegman, Valspar Corporation Harry Finkbone, ICI Paints Robert Wendoll, Dunn-Edwards Barry Elman, EPA Bill Sierks – MN Office of Environmental Assistance Bob Boughton – California DTSC Irene Gleason, FL Department of Environmental Protection Leslie Wilson, MN Solid Waste Mgt Coordinating Board May 3-4, 2006 PPSI Meeting - Sarasota FL

Lifecycle Balance of Costs and Benefits for Managing Leftover (#11) Goal: Determine the net balance lifecycle benefit to society from various management options, ranging from simple drying/solid waste disposal to reuse and recycling. Methods: Develop a study to determine and evaluate scientifically the environmental costs and benefits of leftover paint management options. Identify and quantify the relative socioeconomic lifecycle costs and benefits of leftover paint management, including human, natural, and economic resource use. May 3-4, 2006 PPSI Meeting - Sarasota FL

May 3-4, 2006 PPSI Meeting - Sarasota FL Project Timeline Completed LCA and CBA Scopes of Work. Released RFP for services to implement LCA and CBA SOWs. Workgroup selected ERG/F2 (includes Franklin Assoc./First Environment) to complete both LCA and CBA. Final contracts signed between NPCA and PSI (facilitation) and ERG. May 3-4, 2006 PPSI Meeting - Sarasota FL

May 3-4, 2006 PPSI Meeting - Sarasota FL Decisions Made Focus on latex (not oil-based) 6 Pure Methods (“intended methods”) Consumer-based Scenario Reuse method Dry and dispose method Collection-based Scenario Recycle into consolidated paint method Recycle into reprocessed paint method May 3-4, 2006 PPSI Meeting - Sarasota FL

May 3-4, 2006 PPSI Meeting - Sarasota FL Decisions Made Modified Methods (“unintended methods”) System Boundaries (what is in/out of study) 13 Impact Categories CBA assumptions, boundaries, and allocation will mirror the LCA May 3-4, 2006 PPSI Meeting - Sarasota FL

May 3-4, 2006 PPSI Meeting - Sarasota FL Decisions Made Broad cost categories:  To consumers (e.g., travel, drying time, cost of recycled paint) To environment (e.g., burdens from travel, collection, facilities, paint management, recycled paint production and use) To government (e.g., collection, transport, solid waste facility costs) To industry (e.g., foregone profits [reuse], production/distribution of recycled paint) May 3-4, 2006 PPSI Meeting - Sarasota FL

May 3-4, 2006 PPSI Meeting - Sarasota FL Decisions Made 8. Broad benefit categories: To consumers (e.g., reused/recycled paint, avoided travel/purchase of virgin paint) To environment (e.g., avoided production and use burdens of virgin paint if/when displaced by reused/recycled paint) To government (e.g., sale of recoverable metals) To industry (e.g., revenues from sale of recycled paint) May 3-4, 2006 PPSI Meeting - Sarasota FL

And you thought THAT was complicated… 9. Functional unit = management of 1,000 gallons of the national leftover paint supply and associated containers All methods will be evaluated using (a) no avoided virgin paint credit; (b) full avoided virgin paint credit Assume that reused or recycled paint will be substituted for an equivalent grade and type of virgin paint May 3-4, 2006 PPSI Meeting - Sarasota FL

And you thought THAT was complicated… Average vs. marginal cost [will use average costs in most cases; marginal costs for management of latex if co-collected with oil based paint] Research into alternative management options (liquid paint in landfills, sewers) May 3-4, 2006 PPSI Meeting - Sarasota FL

May 3-4, 2006 PPSI Meeting - Sarasota FL Project Coordination David Darling (NPCA) and David Allaway (Oregon DEQ) – leads for industry and government groups respectively to reduce PSI time for facilitation. Workgroup agreed to limit e-mails to PSI and work through their leads to resolve issues. PSI brought in for elevated discussions. Benefit: reduced cost, increased “ownership” Challenges: staying to timeframe May 3-4, 2006 PPSI Meeting - Sarasota FL

May 3-4, 2006 PPSI Meeting - Sarasota FL Next Steps Schedule 5 Workgroup Calls Collect data (in coordination with infrastructure group) Timely responses required to maintain schedule Conduct modeling Prepare draft report Revise, conduct sensitivity analyses Final Report completion by November 1, 2006 May 3-4, 2006 PPSI Meeting - Sarasota FL