1. May 3-4, 2006 PPSI Meeting - Sarasota FL
Financing Workgroup
Scott Cassel, Facilitator, PSI
Heidi Sanborn, R3 Consulting Group/PSI
Dave Darling and Alison Keane, NPCA
Lesli Daniel, Sonoma County CA
Shirley Willd-Wagner, CIWMB
Leslie Wilson, SWMCB, MN
Victoria Reinhardt, Ramsey Co. Commissioner, MN
Barry Elman, EPA
Robert Wendoll, Dunn-Edwards Corporation
May 3-4, 2006 PPSI Meeting - Sarasota FL

2. May 3-4, 2006 PPSI Meeting - Sarasota FL
The MOU States….
“This project will prepare PPSI participants for future discussions on financing related to the development of a nationally coordinated paint management system. The PSI team, with support from PPSI participants, will research transitional and long-term financing models and evaluate their potential application in the financing discussions that will resume October 1, 2006.”
May 3-4, 2006 PPSI Meeting - Sarasota FL

3. May 3-4, 2006 PPSI Meeting - Sarasota FL
Workgroup Goal
Prepare for a discussion on how to finance projects by:
Conducting research on financing options.
Prepare a list of options and a recommendation for a fair funding scenario for a future nationally coordinated paint management system.
May 3-4, 2006 PPSI Meeting - Sarasota FL

4. Basic Financing Models
Existing financing mechanisms
Government mandates
Voluntary industry programs
May 3-4, 2006 PPSI Meeting - Sarasota FL

5. Existing financing mechanisms
General fund revenue (property taxes)
Solid waste bonds
Solid waste tipping fees/surcharges
End of life charges to consumer
Garbage bag fees (“Pay-as-you-throw”)
May 3-4, 2006 PPSI Meeting - Sarasota FL

6. May 3-4, 2006 PPSI Meeting - Sarasota FL
Government Mandates
Producer Pays for Product Management (producer internalizes cost)
Producer Pays for Product Management (producer externalizes cost via fees)
Split Payment for Product Management
Advanced Recycling Fee
Financial Incentive
May 3-4, 2006 PPSI Meeting - Sarasota FL

7. May 3-4, 2006 PPSI Meeting - Sarasota FL
Voluntary Systems
Financial Incentive
Voluntary Product Management Programs
May 3-4, 2006 PPSI Meeting - Sarasota FL

8. Producer Pays for Product Management (internalizes cost)
Requires manufacturers to finance and organize the collection, transportation, and recycling of their equivalent share of covered products (including their equivalent share of “orphan products”)
Program invisible (“free”) to consumers.
Intended to drive design for the environment.
Includes payments by manufacturers into fund on first time sale or distribution into jurisdiction if no visible fee is charged.
Example: WA State Electronics
May 3-4, 2006 PPSI Meeting - Sarasota FL

9. Producer Pays for Product Management (externalizes cost)
Requires manufacturers to finance and organize the collection, transportation, and recycling of their equivalent share of covered products (including their equivalent share of “orphan products”).
Manufacturers pass on a visible fee through the supply chain…charged to consumer at point of purchase.
Includes payments by manufacturers into fund on first time sale or distribution into jurisdiction if visible fee is charged.
Example: British Columbia, Canada
May 3-4, 2006 PPSI Meeting - Sarasota FL

10. Split Payment for Product Management
Various parties pay for collection and processing of covered products.
Example: municipalities and/or consumers pay for collection of covered products and delivery to points of consolidation, while manufacturers pay to transport and recycle their branded products (and a pro-rata share of “orphan products”) from the point of consolidation.
Example: Maine Electronics Law
May 3-4, 2006 PPSI Meeting - Sarasota FL

11. Advanced Recycling Fee
Government sets a specific visible fee on a product that is paid at retail.
Might allow varying fees to be placed on products depending on size or weight.
Funds may go to a government controlled fund or a TPO.
Covers costs of collection, transportation, and processing.
Examples:
California Electronics Law
Used Oil laws
May 3-4, 2006 PPSI Meeting - Sarasota FL

12. Government Mandate Financial Incentive
Requires the manufacturer to provide a financial incentive to encourage the return of the used product or package, which might include a deposit/refund.
Often called “bounties”
Includes “Free Market System”
Example: Maine Thermostat Law
May 3-4, 2006 PPSI Meeting - Sarasota FL

13. Voluntary Financial Incentive
Manufacturers or retailers set up a voluntary system to provide a financial incentive for the return of the product.
Includes free computer company take-back if purchase of new computer
Examples:
National Auto Switch Agreement
MA Auto Battery Core Charge
May 3-4, 2006 PPSI Meeting - Sarasota FL

14. Voluntary Product Management Programs
Manufacturers voluntarily set up a system for collection, transportation, and recycling of their own products.
Examples:
Thermostat Recycling Corporation
Rechargeable Battery Recycling Corporation
May 3-4, 2006 PPSI Meeting - Sarasota FL

15. May 3-4, 2006 PPSI Meeting - Sarasota FL
Work Completed To Date
Formed Workgroup
Established expectations for workgroup
Identified financing categories – draft
Identified financing systems that are examples under each category.
Developed 6 fact sheets
May 3-4, 2006 PPSI Meeting - Sarasota FL

16. Next Steps: Research on Financing Options
Add Steering Committee members
Raise money to complete project
Research the possible options for a national financing strategy should it be needed
Revise financing system categories  revised chart
May 3-4, 2006 PPSI Meeting - Sarasota FL

17. Next Steps: Research on Financing Options
Finish all fact sheets
Develop pros and cons for options
Develop criteria to evaluate systems
Narrow systems of interest
Develop recommendations on model financing strategies that may be starting point for discussions to resume October 1, 2006.
May 3-4, 2006 PPSI Meeting - Sarasota FL