Paint Product Stewardship Initiative Presentation to Retailers Scott Cassel, PSI Executive...

Paint Product Stewardship Initiative

Presentation to Retailers Scott Cassel, PSI Executive Director/Founder

December 13, 2007

December 13, 2007 PSI Retailer Presentation

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What is the Product What is the Product Stewardship Institute?Stewardship Institute?

Non-Profit based in Boston Membership

43 State members 50 Local agency members

Board of Directors: 7 states, 4 local agencies Multi-stakeholder product stewardship network Adjunct Council: Business, Environmental/Organizational

December 13, 2007 PSI Retailer Presentation

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PSI Full and Affiliate State Members

December 13, 2007 PSI Retailer Presentation

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PSI Projects

Paint

Mercury Thermostats

Fluorescent lamps

Electronics

Pharmaceuticals

Radioactive Devices

Telephone books

Gas Cylinders

Tires

Beverage containers

Motor oil

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What is Product Stewardship?“Product Stewardship" is a principle that directs all those involved in the life cycle of a product to take shared responsibility for reducing the health and environmental impacts that result from the production, use, and end-of-life management of the product.

December 13, 2007 PSI Retailer Presentation

December 13, 2007 PSI Retailer Presentation

PSI Role in Paint DialogueResearch/technical competencyForum for multi-stakeholder dialogue Design and implement pilot projectsClearinghouse for paint product stewardship

policies and programs

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December 13, 2007 PSI Retailer Presentation

Reasons for Paint DialogueThreat of multiple state legislation (CA, MN)Coordinate interests of all stakeholders

Efficiency: One set of laws, regulations Coordinate goals, objectives, strategies Share information (laws, regulations, policy,

programs) Collaborative vs. Confrontational

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Why Paint?64 million$8$512 million

Estimated # of gallons/year leftover in U.S. Estimated average cost/gallon to manageEstimated total cost to manage leftover paint

20% of current sales are oil-based 30-40% oil-based being returned at HHW facilities Little recycled paint being purchased

This is not sustainable!!

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Why Manage Latex Paint? Collection of oil-based paint was always agreed to Most states prohibit disposal of liquid wastes Liquid paint is not accepted by waste mgt companies Still developing consensus on latex paint management Focus on collecting in rural locations and collecting small

amounts left in can

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Why Manage Latex Paint? Government perspective:

Latex paint is a valuable resource like any other recyclableResidents cannot distinguish between latex and oil-based paint Drying paint is resource intensive – small amounts possible

Industry perspective : Latex is not hazardous so less need to collect Is it worth the cost?

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Lifecycle Assessment/Cost Benefit Analysis

NPCA funded/managed – PSI facilitated Seeking consensus Comparing environmental and economic costs of dry and

dispose to reuse and recycle – full lifecycle Tool for decision making by PPSI group – Identify

scenarios when cost-effective (or not) Apply to rural areas and where small amount left in can Completion expected March/April 2008

December 13, 2007 PSI Retailer Presentation

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Key Dateso Sept. 2002 – PSI presentation to NPCA o Sept. 2003 – Completion of Paint Action Plano Sept. 2004 – Completion of 4 meetingso March 15, 2005 – 1st MOU Signedo March 15, 2007 – end of 2-year 1st MOUo March 21, 2007 – NPCA Board Resolutiono Oct. 24, 2007 – 2nd MOU completed/available to signo Nov. 1, 2007 – beginning of 3-year 2nd MOU

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The 1st 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

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Financial Investment(not including in-kind or HHW collection costs)

o State and local government $685,000 o NPCA $465,000o U.S. EPA $230,000o Dunn-Edwards $35,000o PSI Foundation Grant $30,000o Recycled Paint Mfrs $27,000o Organizations $6,000TOTAL: $1,478,000 (est. to date)

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1st Paint MOU Project Portfolio1. Source Reduction Survey/Pilot2. Reuse Manual/Pilot3. Infrastructure Report 4. Recycled Paint Standard (Green Seal)5. Recycled Paint Marketing6. Recycled Paint Regulatory Issues – White Paper7. Sustainable Financing Options8. Lifecycle Assessment and Cost/Benefit Analysis

(LCA/CBA)

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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

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Infrastructure Report Use of existing government infrastructure Need for additional collection locations Encourage diversity of collection sites (private) for public

convenience

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2nd Paint MOU3-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, 2008Establish performance goals for source reduction, reuse, collection, and recycling for the Demonstration Project.

December 13, 2007 PSI Retailer Presentation

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2nd Paint MOUJuly 1, 2008 (no later than)

Implement Demonstration Project in Minnesota funded by “consumer-based cost-recovery system.”

April 2009 to September 2009Evaluate the Demonstration Project.

Roll out to other states• July 2009 – OR, WA, VT • January 2010 – CA• July 2010 – IA, FL, NC, IL

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2nd Paint MOU

Financing system is key remaining element• Manufacturer payment into industry-run PSO.• Payment covers collection, transportation,

recycling/disposal costs.• Payment recovered from consumers.• Fee can be invisible or visible – left to

manufacturers and retailers to decide.

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2nd Paint MOU• NOT discussing a fee collected at retail into a

government fund (e.g., CA electronics law).• Legislation likely needed to address anti-trust and

free rider issues• Goal: Consensus on legislation

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Next Steps Sign MOU

• 13 signed to date (expect over 75)• Lowe’s only retailer to sign 1st MOU

Negotiate financing system (mfr/retailer focus) Complete LCA/CBA Establish framework for PSO Design Demonstration Project in MN – Retail committee

members needed Design Project EvaluationCoordinated by PSI through the PPSI stakeholder group

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Final Thought Paint management program will happen. Retailers have great opportunity for collaborative

program replicated in 50 states. Current program has certainty. Retail risk

Different state programs – more costly and not as effective without full collaboration

Some states might push mandatory retail collection Best to fully engage in 2nd Paint MOU !!

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For More Information Contact…Scott CasselPSI Executive Director/Founder

617-236-4855

scott@productstewardship.us

www.productstewardship.us