Paint Product Stewardship Initiative Chicago, IL September 20-21, 2004

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 2 Dialogue Mission We will seek to develop voluntary initiatives/agreements to enhance product stewardship in the paint industry by January 1, 2005

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 3 Road Map MEETING 2 MEETING 3 MEETING 1 AGREEMENTS START December 2003 April 2004 June 2004 September 2004 Workgroups #1-3 Develop findings Draft work plans Workgroups #8-10 Develop Findings Draft work plans Workgroups #4-7 Develop Findings Draft work plans Discuss Priority Issues and Strategies Groups #1-3: present findings/plans Discuss Issues/Strategies #4-7 Groups #4-7: present findings/plans Discuss Issues/Strategies #8-10 MEETING 4 Review progress Ratify agreements Dialogue Meeting Workgroup Activity

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 4 Boston Meeting Outcomes Agreement on: Stakeholder roles Dialogue mission Dialogue focus Dialogue purpose Problem statement Dialogue goals Confirmed road map

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 5 Issues Discussed in Boston MA Leftover Paint Disposal Collection (Financing)

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 6 Issues Discussed in Sacramento CA Non-paint uses of leftover paint Sale of paint with recycled content Recycled paint manufacturing (Financing)

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 7 Issues Discussed in in Washington DC Sorting Managing containers Transportation (Financing)

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 8 Chicago Meeting Objectives Agreement on: MOU Project Portfolio Funding Project Portfolio and Dialogue Steering Committee Logistics Workgroup Logistics

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 9 Project Decision Criteria Is there anything in the materials that you do not understand? Do you believe the information from this project is critical to developing a nationally coordinated leftover paint management strategy? Do you have objections to the proposed cost? Do you have objections to the timeline?

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 10 We Have Come a Long Way Increased understanding – all participants Increased manufacturer and retailer involvement New relationships and spinoffs have already begun Positions have moved A lot done in a short amount of time

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 11 Memorandum of Understanding

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 12 Process for Developing Current Draft MOU Washington DC  Finance Committee MOU Committee – full dialogue Multi-stakeholder Committee 9 drafts

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 13 Process to Finalize MOU Review Version #9 – Overview Highlight key issues to resolve Proceed section by section Limit time on minor issues Focus on key issues Working meeting – project on screen/edit

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 14 Process to Finalize MOU Agree on Project Portfolio Agreement at meeting on MOU Review/agreement by management outside meeting Signature

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 15 Major Sections of MOU I. The Agreement II. Preamble III. Findings IV. Goals and Objectives V. Scope of Work Attachments A: Project Portfolio (summary, write ups) B: Steering Committee Composition

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 16 Key Issues Already Resolved in MOU “MOU” “nationally coordinate” vs. “national” Affirmed project goals MOU is not legally binding MOU does not waive rights and obligations of any party

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 17 Key Issues Already Resolved in MOU Product stewardship definition Purpose of projects Timeframe for resuming financing discussion – 18 months Continue meeting for 2 years

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 18 Key Issues to Resolve in MOU Project Portfolio Funding for the Project Portfolio Decision point (date) on whether we need a financing system NOT discussing decision point (date) on TYPE of financing system needed

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 19 WORKGROUPS

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 20 Workgroups Root Causes of Leftover Paint/Education/ Regulatory Barriers & Disincentives Infrastructure/Reuse/Containers Markets Financing

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 21 PROJECT PORTFOLIO

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 22 Project Portfolio 22 Portfolio projects 10 Related projects All Portfolio projects to be completed within 18 months Some projects started Some projects completed/near completion Some projects to be determined (TBD)

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 23 FUNDING PROJECTS AND THE DIALOGUE

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 24 Portfolio of Projects Total Cost = Consultants = PSI (incl. 25% overhead) = In-kind = Contingency/future projects (15%) =

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 25 Portfolio of Projects Funding share PSI role Staff to Steering Committee Assist in project oversight Assist project leads to report to Committee Raise government issues from those not active in dialogue

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 26 PSI/Dialogue Facilitation Proposed services – 2 years Meetings Steering Committee: 8 PPSI full dialogue: 4 Workgroup conference calls 4 1 call/month (96 calls/2 years) Travel Overhead: 25% Proposed cost: $125,000/year

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 27 STEERING COMMITTEE

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 28 Criteria for Steering Committee Membership Active participation in dialogue Time available to participate over next 2 years Ability to develop collaborative solutions Strong representative of constituent interests (not just for own agency, company, organization) Decision makers Funders

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 29 Role of Steering Committee PSI Staff to Steering Committee Assist in project oversight Assist project leads to report to Committee Present recommendations to full PPSI dialogue group for decision Review and monitor projects/provide input to workgroups Assist with contracting out certain project work

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 30 Committee Obligations 8 Committee Meetings (4 to coincide with PPSI full dialogue meetings) Conference calls

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 31 Steering Committee Composition Manufacturers – 4 (NPCA 3, Dunn Edwards) Recyclers – 1 (Amazon) Retailers – 1 (Home Depot?) State government – 3 (TBD) Local government – 2 (Recycler, TBD) Federal government –1 (EPA?)

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 32 WORKGROUP LOGISTICS

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 33 Workgroup Roles Review/monitor projects/provide input Conduct projects Assist in contracting services to complete projects

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 34 Logistics Meeting and call frequencies Workgroup leads

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 35 MEETING WRAP UP

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 36 Next Steps Confirm MOU process to signature Confirm workgroups and follow up Next steps for funding Next steps for steering committee Stakeholder assessment

September 20-21, 2004 Chicago ILPSI Paint Stewardship Meeting 37 Next Steps Schedule next meetings/conference calls Steering Committee PPSI Dialogue Publicity/media coverage/signing ceremony