2. September 26-27, 20051 Paint Product Stewardship Initiative Meeting #5 Portland Oregon

3. September 26-27, 20052 Product Stewardship Institute Founded in December 2000 Located in Boston MA Now its own 501c(3) Coalition/Affiliate Members Agency leaders pledge to work with PSI on product stewardship issues 31 State members 28 Local agency members

4. September 26-27, 20053 What is PSI’s Mission? “…assists state and local government agencies in establishing cooperative agreements with industry and developing other initiatives that reduce the health and environmental impacts from consumer products.”

5. September 26-27, 20054 What is PSI’s Role in the Paint Dialogue? 1.Research/technical competency 2.Forum for stakeholder dialogue 3.Design and implement pilot projects 4.Clearinghouse for paint product stewardship policies and programs

6. September 26-27, 20055 What is PSI’s Agenda? “… to promote product stewardship solutions, reduce product impacts, forge partnerships, and get results.”

7. September 26-27, 20056 PSI’s Agenda Has.. 1.NO preconceived strategies to reduce product impacts 2.NO advocacy for one strategy over another 3.NO preconceived notion on how to finance strategies

8. September 26-27, 20057 We Agreed That, In A Dialogue, We.. - Listen and learn from each other - Explore disagreements - Deliberate and weigh comments - Have balanced participation - Keep an open mind to the “end game”

9. September 26-27, 20058 We Agreed That In A Dialogue Participants Do Not… 1.Make personal attacks 2.Actively block or undermine the group decision

10. September 26-27, 20059 Paint Dialogue Process 1.Research (10/02 – 9/03) – 1 year –Technical Research Document –Paint Stewardship Action Plan 2.Dialogue (10/03 – 9/04) – 1 year –4 meetings –Numerous workgroup conference calls 3.Project Implementation (4/05 – 9/06) – 18 months Financing & Designing a nationally coordinated paint management system (10/06 – 3/07) – 6 months

11. September 26-27, 200510 During the Dialogue We Got Agreement on… 1.Problem Statement 2.Goals 3.Key Issues 4.Strategies  prioritized

12. September 26-27, 200511 Dialogue Group Focused On: Post-consumer leftover paint - latex and oil- based Retail surplus paint Not on post-industrial paint waste

13. September 26-27, 200512 The Memorandum of Understanding (MOU) Was Fully Executed on March 15, 2005

14. September 26-27, 200513 Additionally… The MOU is a first step toward a nationally coordinated leftover paint management system Highlights Include: –Recognition of the problem with leftover paint –Inclusion of national waste reduction and management goals –Definition of participant roles and responsibilities –Inclusion of financing system (if needed)

15. September 26-27, 200514 MOU Continued… Project Portfolio – 11 projects $1.2 million Established multi-stakeholder steering committee to guide process Timeframe for resuming financing discussion 18 months Continue meeting for 2 years MOU is not legally binding MOU does not waive any rights or obligations

16. September 26-27, 200515 The Purpose of the Projects –Demonstrate the potential to reduce the volume of leftover paint and the cost of managing leftover paint; –Increase the use of leftover paint as a resource; –Increase government and private purchase of products made from leftover paint.

17. September 26-27, 200516 Project Portfolio Formation of Project Workgroups Education - 2 projects (survey and pilot) Infrastructure – 3 projects (reuse, model and $) Markets – 3 projects (PPSI, Distributor, Recycled Paint Certification) Regulatory - White Paper Lifecycle and Cost/Benefit Analysis Finance - National financing options

18. September 26-27, 200517 Steering Committee Manufacturers – 5 (NPCA 4, Dunn Edwards) Recyclers – 1 (Amazon) Retailers – 1 (vacant) State government – 3 (WA, CA, FL) Local government – 2 ( Metro OR & Sonoma Cty CA) Federal government –1 (EPA)

19. September 26-27, 200518 Where Are We Now? MOU signed by 31 participants + endorsed by 35 others outside dialogue Seven projects have started - $850,000 raised from manufacturers, recyclers, and government Workgroups are convened except for Financing Workgroup which starts in October

20. September 26-27, 200519 What Are The Next Steps ? Complete initial projects (raise funds for some) Start last 4 projects Convene Financing Workgroup Accepting endorsements of MOU – 35 currently Accepting technical assistance, workgroups Accepting funding – can select a specific project

21. September 26-27, 200520 We Have Come A Long Way in a Short Time! Increased understanding – all participants Increased manufacturer and retailer involvement New relationships formed Attitudes have changed – a lot!

22. September 26-27, 200521 MOU Preamble (A.) Product stewardship is a principle that directs all participants involved in the life cycle of a product to take shared responsibility for the impacts to human health and the natural environment that result from the production, use, and end-of-life management of the product. The greater the ability of a party to influence the life cycle impacts of a product, the greater the degree of that party’s responsibility.

23. September 26-27, 200522 MOU IV. Goals and Objectives A.The overriding goal of the PPSI is to ensure that leftover paint and empty containers will be managed in a manner that is protective of human health and the environment. The primary goal of the dialogue is to develop an agreement that will result in reduced paint waste; the efficient collection, reuse, and recycling of leftover paint; increased markets for products made from leftover paint; and a sustainable financing system to cover any resulting end-of-life management costs for past and future products.

24. September 26-27, 200523 MOU IV. Goals and Objectives B.While the PPSI Participants reached conclusions on many aspects of leftover paint management, there are important issues and key findings that are unresolved. Therefore, the goal of the PPSI Participants is to promote the development of economically sustainable, flexible, market-based approaches to leftover paint management using a Project Portfolio…to meet the following objectives…..

25. September 26-27, 200524 Project Portfolio Objectives 1.To test the potential to reduce or eliminate leftover paint volume and management costs, and to test possible strategies for nationally coordinated implementation based on the following paint management hierarchy: Reduce over-purchasing. Reseal containers and store properly. Reuse leftover paint or donate for reuse. Recycle leftover paint and containers. Dispose of unusable paint properly.

26. September 26-27, 200525 Project Portfolio Objectives (cont.) 2.To increase the resource value of leftover paint through reuse and recycling; 3.To determine viable alternatives to disposal and resolve any related regulatory barriers; and 4.To research and analyze infrastructure systems for leftover paint management.

27. September 26-27, 200526 Meeting Objectives Understanding of: 1.MOU funding to date – projects (Day 1) and facilitation (Day 2) 2.Status of project work and budgets (Day 1 and 2) Agreement on: 1.Project next steps 2.Funding next steps 3.MOU – are we on-target to meet goals and start financing discussion on October 1, 2006?

28. September 26-27, 200527 Funding the MOU Projects and Ongoing PPSI Facilitation Funded $844,790 of $1,194,544 estimated in MOU Projects: $1,049,360 PSI facilitation: $145,184 Project #8 Budget: $201,600 Actual: $231,000 Workgroup increased the budget: $29,400 New Project Budget: $1,078,760

29. September 26-27, 200528 Project Start/End Dates Project #2: Survey – end date delayed 1 month All other projects are on schedule.

30. September 26-27, 200529 MOU Project Funding