1. Mercury Thermostat Programs June 2, 2009 Presentation to PSI/NAHMMA NW Forum

2. Mercury Thermostats PSI Thermostat Programs2 3/9/2016

3. PSI Thermostat Dialogue Starting Place (2004) Producer responsibility collection & recycling program in place HVAC wholesalers only Industry funded (TRC) program Lackluster performance (NEWMOA report) PSI Thermostat Programs3 3/9/2016

4. Dialogue Focus Collection and recycling HVAC Contractors/Wholesalers (75%) Homeowners/non-professionals (25%) New thermostat sales PSI Thermostat Programs4 3/9/2016

5. PSI Thermostat Projects Expansion to Wholesaler Chain Stores Expansion to Contractor Locations Financial Incentive for HVAC contractors (IN/OR) Collection at HHW Facilities Maine law – 1 st comprehensive law in nation Maine – contractor incentive ($5) Maine – homeowner incentive + mail back ($5) Model thermostat program/legislation Retail collection pilots (ME, CO, MT, SD, UT, WA) PSI Thermostat Programs5 3/9/2016

6. PSI Model State Thermostat Program: Shared Responsibility All brand owners (financial responsibility) Heating and Cooling Contractors Heating and Cooling Wholesalers Retailers State agency Homeowners PSI Thermostat Programs6 3/9/2016

7. State Laws Maine (2006) Vermont (2007) New Hampshire (2007) Iowa (2007) California (2008) Pennsylvania (2008) Montana (2009) PSI Thermostat Programs7 3/9/2016

8. Key Legislative Issues Performance goals Methodology for estimation Agency discretion to change programs if goals not met Provision of sales data from manufacturers Total program cost Financial incentive vs. other incentives Mail back option for homeowners Educational materials at retail PSI Thermostat Programs8 3/9/2016

9. Goal Setting Responsibility StateState Agency Sets GoalsGoals Set In Law CAY IAY MEY NHY PAY* VTY MTN/A * Manufacturer sets goals to increase number collected each year until 2015 PSI Thermostat Programs9 3/9/2016

10. Incentives/Goals – Comparison StateIncentivesGoals CAYes, amount unspecified% out-of-service; by 2012 IATBD if goals not metRecovery: maximum practicable; propose 50% in 2009; 80% in 2010; 90% in 2011 and after ME$5/thermostat cash, manufacturer pays to contractors and homeowners; retail may provide $5 gift card 125 lbs/yr 2009; 160 lbs./yr after NHNoneMaximize capture and recycling rate, numeric goals TBD PAOK but not required unless goals not met Manufacturer sets goals to increase number collected each year until 2015 VT$5 cash for technicians; $5 cash, discount or other for homeowners 65% collection rate by 2010 MTNone 10PSI Thermostat Programs 3/9/2016

11. Pending Legislation Illinois Massachusetts Rhode Island  All bills contain $5 incentive and performance goals  PSI advising states & environmental groups PSI Thermostat Programs11 3/9/2016

12. For More Information Scott Cassel PSI Executive Director/Founder 617-236-4822 scott@productstewardship.us www.productstewardship.us PSI Thermostat Programs12 3/9/2016