Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders

Transcription

1 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders Scott Cassel, CEO and Founder Product Stewardship Institute, Inc. May 13, 2013

2 2

3 Upcoming PSI Webinars Comparing the Lifecycle Impacts of Solid Waste Management Strategies (Sponsored by Covanta Energy) June 5, 1 p.m. ET Setting and Sharing Standards for Corporate Social Responsibility: A Key Aspect of Product Stewardship June 20, 1 p.m. ET Maximizing Eco-Design through EPR and Voluntary Guidelines (Sponsored by Eco-Entreprises Québec) RESCHEDULED (October 2013) 3

4 Who is the Product Stewardship Institute? Global Product Stewardship Council PSI represented on Board of Directors Non-profit founded in 2000 Memberships 47 States 200+ Local governments Partnerships (75+) Companies Organizations Universities Non-US Governments Board of Directors: 7 states, 4 local agencies Advisory Council: Multistakeholder (14 members) 4

5 How to Participate Today To ask a question (verbally) via phone or VOIP please use the hand-raising function. To type in a question, use the Question tab. You can connect to the Audio portion using VoIP or your telephone. Technical Difficulties? Dial

6 Expert Panelists Robert Wendoll, Director of Environmental Affairs, Dunn-Edwards Corporation Marc Boolish, Technology Manager, Energizer President, Corporation for Battery Recycling (CBR) 6

7 Product Stewardship for Paint Paint Stewardship Case Study: Transition from Voluntary to Mandatory Robert Wendoll Dunn-Edwards Corporation 7

8 About the American Coatings Association Non-profit 501(c)(6) organization Represents manufacturers of paint and coatings for architectural, industrial maintenance, original equipment manufacturer, and specialty uses Just celebrated its 125 th anniversary Advocacy on legislative, regulatory and judicial issues impacting the paint industry 8

9 About PaintCare Non-profit 501(c)(3) organization Created by the American Coatings Association as representative paint stewardship organization Established in 2009 for the Oregon pilot program Governed by Board of Directors who are architectural paint manufacturers Operational organization dedicated to environmentally sound, cost-effective programs for post-consumer paint management 9

10 Why Paint? Highest volume HHW consumer product ~70 millions gallons available for recycling in the U.S. annually (~10% leftover) PSI dialogue seeking nationally-coordinated solution for post-consumer paint began in 2003 PSI dialogue led to drafting of pilot program for Oregon -- industry supported legislation in

11 Voluntary or Mandatory? Initial preference for voluntary system; decided on mandatory to address four main issues: Gain limited anti-trust protection for fee-setting; Provide for a robust, reliable financing system; Ensure a level playing field for all paint manufacturers and retailers; Allow industry to manage program with appropriate oversight from state. 11

12 Anti-Trust Protection Allows competitors to determine PaintCare Recovery Fee without fear of price-fixing allegations Limited to a manufacturer or representative organization s activities to fund and implement the program Oversight and enforcement from a state environmental agency satisfies the federal government s requirement for the exemption 12

13 Reliable Financing System Manufacturers or their distributors remit to PaintCare a graduated assessment per container sold The PaintCare Recovery Fee (amount per container) is transparent, uniform, and must be added to the final purchase price of paint Financing obligation survives mergers & acquisitions, management changes, and distribution arrangements 13

14 Level-Playing Field Legislation is necessary to ensure a level playing field for all market participants Requires ALL paint manufacturers selling into a PaintCare state to participate in a product stewardship program (either individually or though a representative organization) No free riders allowed 14

15 Industry Management State Oversight Legislation allows industry to take primary responsibility for managing program Appropriate state oversight ensures program integrity, credibility, and accountability A true public/private partnership for product stewardship 15

16 The Outcome? Legislation/Self-Regulation allows the industry to run an effective, efficient and equitable program Establishes a financing system that supports the program regardless of industry or company changes Creates a model that can be replicated in any state to achieve program uniformity Provides a permanent solution for responsible management of post-consumer paint 16

17 Questions/More Information Robert Wendoll (Dunn-Edwards) (323) Alison Keane (ACA & PaintCare) (202)

18 The Corporation for Battery Recycling Transition: Voluntary to Regulatory Marc Boolish The Corporation for Battery Recycling 13 May

19 The Corporation for Battery Recycling Topics Background of Our Effort Voluntary to Regulatory Approach Our Current Work Lessons Learned 19 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

20 The Corporation for Battery Recycling Background Today s Reality Enacted legislation Legislation proposed Activity Pilot program 20 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

21 The Corporation for Battery Recycling Background The Battery Industry has a history of environmental initiatives Voluntary mercury removal 1990 s for most batteries 2015 Industry effort for button cells Life Cycle Analysis European LCA s from 2000 and 2006 Duracell, Energizer and NEMA LCA s Showed recycling can be environmentally positive if done right Led to our voluntary effort 21 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

22 The Corporation for Battery Recycling Voluntary Effort Started December, 2010 Presidents of the 5 major US battery companies Budget set and Summit planning Program Objectives Net environmental benefits Industry or multi-industry led program Shared responsibility Non-fragmented programs Phased implementation to test/learn and modify Non-legislated collection program 22 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

23 The Corporation for Battery Recycling Summit Details Date: 5-6 April 2011 Location: Dallas, Texas Attendees: 75 representing numerous categories 12 External Experts / Consultants 11 Manufacturers 10 Recyclers 9 Municipal Officials 7 Retailers 7 Industry Associations 5 NGOs 5 Waste Haulers 3 Device Makers 2 Academics 2 Federal Officials 2 State Officials 23 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

24 The Corporation for Battery Recycling Voluntary Effort Sponsoring 6 Foundation Programs From 2012 until the present Optimize sustainability Socially Environmentally Economically Continued until September, 2012 Two companies withdrew from the effort Forced the remaining companies to consider other options 24 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

25 The Corporation for Battery Recycling Voluntary to Regulatory Free Riders With original 5 US members Low amount of free riders Manageable With only 3 members Amount of free riders too high Inequitable Forced a proactive legislative approach 25 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

26 The Corporation for Battery Recycling Our Current Work Bills in California (AB 488) Minnesota (SF 639) Foundation Programs King / Snohomish San Luis Obispo Santa Clara Hennepin Onondaga 26 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

27 The Corporation for Battery Recycling Early Lessons Learned A cultural shift in an industry must occur For us, it was the LCA results Transparency it works but requires work Senior executives must be on-board Voluntary is not a bad choice, but: Anticipate changing market conditions Breakdown without binding agreements Even long term agreements have outs There will be bumps, don t take them personal 27 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

28 The Corporation for Battery Recycling Further Lessons Learned Legislation is not easy Pick your states/venue carefully Role reversal (friends/foes) Foes you never imagined Have a dedicated resource Right of private action No good deed goes unpunished Mobius loop State agencies and carve-outs 28 Product Stewardship: Transition from Voluntary to Regulatory Case Studies from Two Industry Leaders 13 May 2013

29 The Corporation for Battery Recycling Overall Watch for the cultural shift It may require a push/kick Get senior executives on-board Be as transparent as possible If voluntary Make sure there are no outs You will regret them later If regulatory / legislative Be patient yet diligent Dedicated resource(s) 29

30 The Corporation for Battery Recycling Marc Boolish President, Corporation for Battery Recycling Director of Technology Energizer 30

31 Questions/Discussion????????? 31

32 For the Audience: 2 ways to ask questions Spoken: Use the hand-raising function on your control panel so we can unmute you. Speak through a microphone on your computer OR Be dialed-in through a telephone (and enter your Audio PIN) Written: Write your question in the Question box at any time. Please tell us to whom you are addressing your question. 32

33 Speaker Contact Information Scott Cassel CEO and Founder Product Stewardship Institute (617) Robert Wendoll Director of Environmental Affairs Dunn-Edwards Corporation (323) Marc Boolish President, Corporation for Battery Recycling (CBR) Technology Manager, Energizer (440)

34 Upcoming PSI Webinars in this Series Comparing the Lifecycle Impacts of Solid Waste Management Strategies (Sponsored by Covanta Energy) June 5, 1 p.m. ET Setting and Sharing Standards for Corporate Social Responsibility: A Key Aspect of Product Stewardship June 20, 1 p.m. ET For more information and access to the recordings: 34

35 Let Us Know What You Think! Please complete the evaluation you will receive by shortly. 35

36 THANK YOU! 36