1. Root Causes of Leftover Paint/Education and Regulatory Barriers Work Group September 20-21, 2004 Chicago Dialogue Meeting

2. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 2 Team Members Heidi Sanborn, PSI – Facilitator Alison Keane, Lead Root Causes Subgroup, NPCA Dave Darling, NPCA Walter Leclerc, Kelly Moore Harry Finkbone and Susan Peterson, ICI Paint North America Mark Lipton, Tremont Paint Georges Portelance, Eco-Peinture Melanie Wheeler, NH Department of Environmental Services Jen Holliday, Chittendon County, Vermont Leslie Wilson, Solid Waste Management Coordinating Board, MN Marv Goodman, National Council and Paint Disposition

3. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 3 Team Members Continued… Joe Bolling/Doug Zacker, Home Depot Tim Gormely and Anne Reichman, Earth 911 Dana Coyle, NJ Dept. of Environmental Protection Shirley Willd-Wagner, CA. Integrated Waste Management Board (CIWMB) Kathy Witmeyer, Paint and Decorating Retailers Association Elizabeth Gilbert, Sherwin Williams Andrea Adams, Barnstable County MA Tom Metzner, CT DEP Tom Hyatt, PA DEP Rebecca Smith, Region 9 EPA

4. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 4 Workgroup History Combined Root Causes of Leftover Paint workgroup with the Education Workgroup in Sacramento, and added the Regulatory Barriers Workgroup in D.C. This group was to determine why consumers have leftover paint, develop and implement strategies to reduce leftover paint, and identify any regulatory barriers to producing, selling, and transporting recycled paint.

5. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 5 Workgroup Goals Root Causes of Leftover Paint Determine the root causes of leftover paint Determine the root cause of why there is the volume of leftover paint Education Disseminate consumer guidance for paint management (BMPs) Support other workgroups on education dissemination PSI Letter to HHW coordinators on updating Earth 911 – further dissemination Regulatory Barriers to Recycling Paint Develop model U-Rule for states Investigate possibility of NPCA petitioning to change Federal U-Rule Send letter to EPA requesting guidance on consolidation of oil-based paint Identify legal requirements, both permitting and regulatory, that would pertain to latex paint List options on how to comply with hazard communications

6. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 6 Background Leftover Paint Modeling Purpose of System Dynamics (SD) model Original SD model modified to reflect survey questions (available on PSI website) SD model morphed into “Consumer Paint Decision Points” Additional findings – Paint Use Realities

7. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 7 Background (cont.) Survey Results Good general information on issue HHW data more reliable than Retail data Findings: – Majority of people do not measure nor accurately measure – Majority of people bought extra paint for touch-ups – Clerks have a role in how much paint is purchased – Paint is stored for touch-ups

8. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 8 Background (cont.) Consumer Paint Decision Points Decision to PaintPre-Store Decision: How Much? Choose StoreAt StorePaint ProjectLeftover Storage Issues 2 Basic Reasons to Paint Aesthetics Protection Where decide? At home At store Who decides to paint? Usually women Who buys? Women, if decision made in store Men, if decision is made elsewhere Most people don’t “accurately measure*, or don’t measure at all* Close proximity Price Customer loyalty Customer service Ask clerk for help* amount Other amount considerations:* touchups price convenience “unknown” future needs Finite packaging issue Brand is very important Proper application Brushes Roller Temperature Number of coats Store for touchups* Store because unknown Bring to HHW Improperly dispose Store properly Store improperly- most common* BOLD=survey insites * = Notable survey results

9. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 9 Background (cont.) Paint Use Realities Paint is a Natural Leftover Decision Decision/ActionResult Measure & CalculateBuy only needed amountApplyLeftover! Measure & CalculateBuy only needed amountApplyNo Leftover! Measure & CalculateBuy more for touchupsApplyLeftover! Measure & CalculateBuy more for touchupsApplyNo Leftover! Guess/Don’t MeasureBuy only needed amountApplyLeftover! Guess/Don’t MeasureBuy only needed amountApplyNo Leftover! Guess/Don’t MeasureBuy more for touchupsApplyLeftover! Guess/Don’t MeasureBuy more for touchupsApplyNo Leftover! Measure & CalculateBuy only needed amountDon’t ApplyLeftover! Other scenarios…..Leftover! Most Common Decisions Affecting Leftover Paint According to Survey Results and Anecdotal Information Decision ResultDecision Guess/roughly measure30 something high school educated men purchase more for touchups, the “unknown” and convenience. Clerks help decide amount. ApplyLeftover – Store for mythical (?) touchups Storage is not always proper, ie, outside Highly educated mid-40’s men bring to HHW facility

10. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 10 Five Projects Recommended by Workgroup for Portfolio 1. Leftover Paint Management Guidance for Consumers ( Previously BMPs ) 2. Public Education Survey and Analysis 3. Public Education Strategies 4. U-Waste Rule for Solvent-Based Paint 5. Health, Safety, and Environmental Regulatory Issues

11. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 11 #1 - Leftover Paint Management Guidance for Consumers Taking the finalized Guidance (BMPs) and testing the effectiveness of the message in pilot projects Getting professional help in designing and executing pilots Testing to see if consumers will change their behavior based on the message Determining the ability of retailers to disseminate the message Cost $42,500/ Completion June 2005

12. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 12 #2 Public Education Survey and Analysis Hiring consultant to design and perform a survey to obtain statistically valid information Determine the differences between those who properly measure before buying paint and those who do not Analyze survey results Develop possible educational strategies that may change over-purchasing behavior Cost $29,375/Completion March 2005

13. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 13 #3 Public Education Strategies Long-term project Start date is after survey results and recommendations are received Could include any strategy that is determined to be effective at changing behavior so as to reduce leftover paint Would be a national and expensive project Cost, Scope, and Completion dates TBD

14. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 14 #4 Universal Waste Rule for Solvent Based Paint Determined obtaining Fed U-Rule was not feasible – not included Develop a model U-Rule for states to adopt Draft letter to EPA asking for clarification on consolidation of solvent-based paint Disseminate model and information learned from EPA to states to clarify the status of regulatory burden to consolidating solvent-based paint for transport/recycling. Cost $12,500/Completion March 2006

15. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 15 #5 Health, Safety & Environmental Regulatory Issues Goal is to successfully identify regulatory barriers or confirming that there are no barriers If there are barriers identified, development of a solution to provide greater incentive for the manufacture of reblended or recycled post-consumer content paint Increased production and sales of recycled paint Final report with conclusions Cost $1,250/Completion March 2005

16. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 16 Findings & Recommendations Proceed with five recommended pilot projects Contractors need to be included in data gathering Decision points can be re-examined for future pilot ideas/projects Paint is a “natural” leftover

17. PSI Paint Dialogue Meeting Chicago, Il. Sept. 20-21, 2004 17 Comments? Questions? Do you understand the projects? Do you believe they are important enough and meet the information thresholds? Is the cost reasonable (neither too high or too low)? Is the timeline reasonable? Should these projects be in the portfolio? Do we agree on a lead person for this project Is there value in developing SD model for painting contractors? TBD