Paint Product Stewardship Initiative Presentation to California Integrated Waste Management Board Scott Cassel, PSI Executive Director/Founder December 4, 2007

December 4, 2007 CIWMB Board Meeting 2 What is the Product Stewardship Institute? Non-Profit, based in Boston, founded in 2000 Membership 43 State members 47 Local agency members Board of Directors: 7 states (including CIWMB), 4 local agencies Multi-stakeholder product stewardship network Adjunct Council: Business, Environmental/Organizational

December 4, 2007 CIWMB Board Meeting 3 PSI Full and Affiliate State Members

December 4, 2007 CIWMB Board Meeting 4 PSI Projects  Paint  Mercury Thermostats  Fluorescent lamps  Electronics  Pharmaceuticals  Radioactive Devices  Telephone books  Gas Cylinders  Tires  Beverage containers  Motor oil

December 4, 2007 CIWMB Board Meeting 5 Why Paint? 64 million $8 $512 million Estimated # of gallons/year leftover in U.S. Estimated average cost/gallon to manage Estimated total cost to manage leftover paint  30-40% oil-based being returned at HHW facilities  Latex paint is a resource issue like any other recyclable  Little recycled paint being purchased This is not sustainable!!

December 4, 2007 CIWMB Board Meeting 6 Key Dates oSept – PSI presentation to NPCA oSept – Completion of Paint Action Plan oSept – Completion of 4 meetings oMarch 15, 2005 – 1 st MOU Signed oMarch 15, 2007 – end of 2-year 1 st MOU oMarch 21, 2007 – NPCA Board Resolution oOct. 24, 2007 – 2 nd MOU completed/available to sign oNov. 1, 2007 – beginning of 3-year 2 nd MOU

December 4, 2007 CIWMB Board Meeting 7 The 1 st MOU was…  A first step toward a nationally coordinated leftover paint management system  8 Projects  Raised $1 million +  Demonstrate potential to reduce the volume of leftover paint and the cost of managing leftover paint

December 4, 2007 CIWMB Board Meeting 8 1 st Paint MOU Project Portfolio 1.Source Reduction Survey/Pilot 2.Reuse Manual/Pilot 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 (LCA/CBA)

December 4, 2007 CIWMB Board Meeting 9 Recycled Paint Standard  Recycled-content latex paint – completed Aug  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

December 4, 2007 CIWMB Board Meeting 10 Recycled Paint Standard  About 12 recycled paint manufacturers in North America.  CA: Amazon Environmental, Visions Recycling, Kelly-Moore.  1 company is Green Seal certified.  Other companies expected to be certified shortly.  CA purchase of recycled paint is important next step.

December 4, 2007 CIWMB Board Meeting 11 Infrastructure Report  Infrastructure report evaluated best ways to collect, consolidate, transport, and process leftover paint in U.S.  Using infrastructure report as basis for performance goals.  Collection points needed for convenience (2,000 to 11,000)  About 1 site per 10,000 households  Phased implementation over time to meet highest performance goals.  Cost to collect, aggregate, transport, recycle = $8.59/gal

December 4, 2007 CIWMB Board Meeting 12 2 nd Paint MOU 3-year continuation of partnership (until November 2010) November 2007 to July 1, 2008 (no later than) Design and develop industry-run Paint Stewardship Organization (PSO) and Demonstration Project in Minnesota. January 1, 2008 Establish performance goals for source reduction, reuse, collection, and recycling for the Demonstration Project.

December 4, 2007 CIWMB Board Meeting 13 2 nd Paint MOU July 1, 2008 (no later than) Implement Demonstration Project in Minnesota funded by “consumer-based cost-recovery system.” April 2009 to September 2009 Evaluate the Demonstration Project. Roll out to other states July 2009 – OR, WA, VT January 2010 – CA July 2010 – IA, FL, NC, IL

December 4, 2007 CIWMB Board Meeting 14 2 nd Paint MOU Financing system is key remaining element Manufacturer payment into industry-run PSO. Payment recovered from consumers. Fee can be invisible. NOT discussing a visible ARF collected at retail.

December 4, 2007 CIWMB Board Meeting 15 Next Steps  Sign MOU 10 signed to date (expect over 75) Washington, Oregon, NPCA, others  Negotiate financing system (mfr/retailer focus)  Complete LCA/CBA  Establish framework for PSO  Design Demonstration Project in MN All to be coordinated by PSI through the PPSI stakeholder group

December 4, 2007 CIWMB Board Meeting 16 For More Information Contact… Scott Cassel PSI Executive Director/Founder