Extended Producer Responsibility: Product Stewards Panel

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1 WSRA Conference & Trade Show May 12-15, 2013 Extended Producer Responsibility: Product Stewards Panel Bill Smith City of Tacoma / Northwest Product Stewardship Council John Friedrick WMMFA Mike O Donnell Light-cycle Washington Linda Gabor Call2Recycle Marjaneh Zarrehparvar PaintCare This session will familiarize attendees with what a Product Stewardship organization is, including their role, organizational structure, funding sources, staffing and overall dayto-day business.

2 Thank you for sponsoring! WSRA Conference & Trade Show May 12-15, 2013

3 WSRA Conference & Trade Show May 12-15, 2013 Extended Producer Responsibility: Product Stewards Panel Battery Product Stewardship: Voluntary vs. Mandatory a case for change Linda Gabor VP of Marketing Call2Recycle

4 Battery Product Stewardship: Voluntary vs. Mandatory a case for change Battery Product Stewardship: Voluntary vs. Mandatory a case for change Battery Collections Washington Collections (in pounds) Call2Recycle Total Collections (in pounds) Rechargeable Battery Collections Year Growth Rates 146, , , , , % 5,721,000 6,117,000 6,734,000 7,617,000 7,853, % 1

5 Battery Product Stewardship: Voluntary vs. Mandatory a case for change Call2Recycle s Shift in Position 1994 Call2Recycle (formerly the Rechargeable Battery Recycling Corporation) was founded to Divert batteries from landfills, especially Ni-Cd and SSLA Create a harmonized nationwide program to stop the trend of a patchwork of state-by-state requirements 2

6 Battery Product Stewardship: Voluntary vs. Mandatory a case for change Call2Recycle s Shift in Position Call2Recycle actively advocates for the passage of mandatory product stewardship laws for rechargeable batteries (both in Washington & Oregon) 3

7 Battery Product Stewardship: Voluntary vs. Mandatory a case for change Why the Change? Why Now? 40% of our waste stream are free-riders A Battery is a Battery is a Battery or is it? Consumers don t differentiate Chemistry shift: Ni-Cd to Li-Ion Almost half of Call2Recycle s collections are batteries that states do not require manufacturers to collect 4

8 Battery Product Stewardship: Voluntary vs. Mandatory a case for change 2014 and Beyond what will it take? Strong legislative advocates in Washington, Oregon and other states who can take the lead and articulate why legislation is important Support of the recycling community, municipalities and participating businesses this is not simply a green effort In both states, the political dynamics must change in the senate Without legislation, a no-cost voluntary battery recycling solution cannot be financially sustained. 5

9 Battery Product Stewardship: Voluntary vs. Mandatory a case for change Contact Info Linda Gabor VP, Marketing & Customer Service Call2Recycle 1000 Parkwood Circle, Ste 200 Atlanta, GA call2recycle.org lgabor@call2recycle.org 6

10 WSRA Skamania, Washington May 14, 2013 Mike O Donnell Program Director

11 Grandfather s fence : Alameda County, CA

12 The Law - [RCW ] Highlights: Landfill Ban Statewide (county, city >10,000) No cost to participate 15/90 Open to all Persons

13 Rule Overview WAC Provides clarity to Law Producer (manufacturer) requirements Stewardship organization requirements Violations Program plan content Reporting

14 What s Covered?

15 What s Covered?

16 What s Covered?

17 What s Covered?

18 What s Covered?

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20 What s Covered?

21 What s Covered?

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23 What s Covered?

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25 What s Covered?

26 What s Covered?

27 What s Covered?

28 What s Covered?

29 What s Covered?

30 Changes for Municipal Programs? 15/90: separation of large quantities Universal Waste crushing prohibited Indoor, dry storage SQHUW - <2,200 lbs.

31 Packaging Ground Service tubes Pre-paid Mailback 4, 8, mixed

32 Education and Outreach Printed Material Graphics Banners or Rigid plastic banners Web locator Community advertising

33 Program Financing Producers (manufactures) of residential use mercury-containing lights Fully finance No fee at retail Financing Plan public review Anticipate MM /year

34 Collection Sites Voluntary 80% retail 20% municipal SQHUW 2,200 lbs. 180 interested in 2012, no limitations Basic site contract and insurance

35 What s Next? Financing plan May, public review Producer Sales data May 31 Invoices sent June Collection contracts Summer Implementation and Advertising Fall

36 Dismantled CFL s:

37 Contact Information Mike O Donnell Program Director mikeo@ecolights.com

38 Plan Results? 50,000,000 45,000,000 LCD Plasma technology 5% 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 10% 32% 58% 3,910,328 12,287,734 22,350,612 E-Readers and Tablets Plasma TV pounds LCD TV pounds LCD Monitor pounds PC and Laptop pounds CRT Monitor pounds CRT TV pounds 9.5% 27% 63% 3,759,919 10,738,240 24,969, % 21% 68% 3,616, % 3,472,089 6,584,657 9,006, % 72.1% 31,337,734 28,953,065 5,000,

39 Environmental Benefits and Outcomes 87,500 tons of CEP s collected and processed since start up No materials of concern have been exported to non- OECD countries Over 60% of collected pounds exposed to reuse opportunity Estimate that 29% of computers enter reuse 3% off all pounds overall Very few unnecessary empty transport miles use existing infrastructure transport capacity = less waste of resources and less emissions No speculative accumulation (glass) allowed per standard Residual pounds (non-recycled) 2.5% of total weight wood only Downstream vendors must conform with all standards as direct processors Dfr (design for recycling)? Average weight of new CEP s (LCD, Plasma, etc.) decreased by 31% since 2009

40 WMMFA collected lbs. per capita 2012 by county Kittitas King Thurston Clark Snohomish Whatcom Jefferson Cowlitz Island Walla Walla Clallam Grays Harbor San Juan Whitman Pierce Kitsap Spokane Garfield Skagit Pacific Columbia Lewis Benton Yakima Asotin Lincoln Skamania Chelan Pend Oreille Klickitat Stevens Franklin Grant Mason Douglas Ferry Wahkiakum Okanogan Adams State average = 6.5 lbs. per capita

41 Overview of System Collectors Collector Profiles: Number of collection sites by type # added change Non Profit retailers used goods % Retailers of used goods % Computer reuse & resale % City & County Govt. / Transfer S % Other Small business % Recyclers All commodities % Processors % TOTAL % +95 (+40%)

42 Overview of System Transporters Types of registered and utilized Transporters INTERNAL Materials transported from multiple sites to consolidation point by collector SELF From collection site or internal hub to a processor CONTRACTED Independent for hire carrier picks up materials from collector location and delivers to 1 of the 7 processors All Materials are palletized or in gaylord boxes and contain all CEP types (mixed ladings) Number Sites effected INTERNAL transport by collector among multiple sites: (Non-profits and retailers with multiple locations and high volume) CONTRACTED Common and Private Carriers (LTL-TL): (Independent and mostly Eastern WA / rural collectors with low volume) SELF from single collection site, or hub, to processor: (Metro areas generally with own trucks and close to a processor location)

43 Overview of System Processors Processor Profiles: Number of approved and registered processors: 7 IMS Recycling, Vancouver, WA Total Reclaim, Seattle, WA Electronic Recyclers International, Auburn, WA EWC Group, Tukwila, WA E-Waste LLC, Lynwood, WA Ace Metal Company, Mukilteo, WA ECS Refining, Santa Clara, CA Primary Recycling Methods: CRT Glass to Glass materials used in new glass products Circuit Boards, misc MOC electronics Primary smelter with metals recovery NO processors reported shipments to any Non-OECD countries for 2009

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45 WMMFA Pounds, Expenses, Budget and Reserves by month 6,000,000 5,000,000 4,000, Pounds 2010 Pounds 2011 Pounds 2012 pounds Actual Total Expenses 2011 Actual Total Expenses 2012 Budgeted Expenses 2012 Cummulative reserve 2012 Collectors 38% Processors 42% Transporters 14% Salaries and Wages 2.6% Return and Market data 1.0% Outreach.5% Office, rent, travel, and professional fees 1.9% 3,000,000 2,000,000 1,000,000 0 January February March April May June July August September October November December -1,000,000

46 WMMFA Expenses 2009 Total Cost per pound = $.247 WMMFA Expenses 2012 Total Cost per pound = $.255 $117,454 $263,314 $26,260 Collection $96,105 $284,260 $38,521 Collection $100,111 Transportation $55,866 Transportation $3,605,096 Processing $4,573,837 Processing RTNS Sampling RTNS Sampling $3,578,362 Administrative $4,130,775 Administrative $1,699,394 Outreach $1,849,855 Outreach Professional (Legal, Acctg, etc) Professional (Legal, Acctg, etc) Total 2009 Expenses = $9,389,991 Total 2012 Expenses = $11,029,219

47 Where do we go from here? Largest complaint from citizens = narrow product application 59% of CEP s from non-profit retailers (WA) large opportunity for reuse Operational model is business based encourages efficiency Volume by weight increased by 16% from Q over Q CRT based products have increased 2%, IT equipment decreased 2% Glass glut may impact processing methods and cost going forward Independent Plans may bring new models to state wide collection efforts

48 U.S. Paint Stewardship Program Washington State Recycling Association Annual Conference Stevenson, WA May 14, 2013 Marjaneh Zarrehparvar Executive Director, PaintCare

49 Presentation 1. Results 2. Challenges 3. Future

50 Why Paint 50% of household hazardous waste 70 millions gallons leftover annually (average of 10% leftover per can) In 2003, PSI began national dialogue aimed at finding a solution to postconsumer paint management Dialogue led to drafting of model, state level, industry-supported legislation in 2007

51 1. Results Implementation of an industry designed and operated paint stewardship program Increased convenience Increased collection volume Increased awareness Decreased cost and responsibility of state and local governments Decreased postconsumer paint -?

52 Result: Current Programs Oregon 2010 California 2012 Connecticut 2013 Rhode Island 2014

53 Result: Future Programs Colorado Florida Illinois Maine Minnesota New Jersey New York Texas Vermont Washington

54 Result: Increased Convenience Oregon

55 Result: Increased Convenience Oregon Oregon population within 15 miles of a collection site

56 Result: Increased Convenience California o o o o Nearing 450 sites 400+ are new sites 395 are retail and restore More than 100 large volume direct pick-ups ( gallons)

57 Result: Increased Recycling Approximately 49% more paint and containers were collected in Oregon during 2011(first full year of the PaintCare program) than 2009 (before the PaintCare program). Most of this increase can be attributed to the existence of the PaintCare program. Source: DEQ HB 2048 Factsheet, March 14, 2013

58 Result: Decreased Government Cost The majority of municipalities surveyed say they saved on paint collection, and they attribute the savings to their participation in the PaintCare program in Year 1, Metro the largest urban area in Oregon reported a cost savings of over $1 million. Source: Oregon Paint Stewardship Program Evaluation, Product Stewardship Institute March 2013

59 2. Challenges Passing legislation Start-up funding Establishing fee structure Identifying and notifying participants and partners: manufacturers, retailers, HHW programs, contractors, recyclers

60 2. Challenges Municipal contracting role reversal Retailer permits: California and Connecticut Servicing large number of sites with small volumes of materials requires weekly or more frequent service Keeping up with growth

61 3. Changes Down the Road Fee reduction (Oregon) Adding spray paints Paint disposition paint to paint or paint to non-paint products manage domestically or export Shifting volume from HHW programs to retail Expansion keeping up with growth

62 Operations Marjaneh Zarrehparvar Executive Director PaintCare (202) Legislation Alison Keane Vice-President, Government Affairs American Coatings Association (202)