Paint Product Stewardship Initiative 2006 NATIONAL ENVIRONMENTAL PARTNERSHIP SUMMIT

Paint Product Stewardship Initiative 2006 NATIONAL ENVIRONMENTAL PARTNERSHIP SUMMIT

Participant Presentations Scott Cassel, Product Stewardship Institute David Nightingale, WA Dept. of Ecology Alison Keane, National Paint & Coatings Assoc. Barry Elman, U.S. EPA 2

Introduction to the Paint Product Stewardship Initiative Scott Cassel, Executive Director Product Stewardship Institute

Product Stewardship Institute, Inc. National non-profit (501 c 3) founded Dec. 2000 Located in Boston MA Membership 31 states 28 local governments Board of Directors: 7 state/4 local 4

PSI Projects Paint Mercury Thermostats Electronics Pharmaceuticals Pressurized Gas Cylinders Tires Radioactive Devices 5

What Do These Numbers Mean to Paint Management In the U.S.? $16-35 mil. $8 23% 50% Estimated # of gallons/year leftover in U.S. Estimated average cost/gallon to manage Increase in CA paint collection 2001-2003 2003 Drop in recycled content paint purchase by CA state agencies between 2001-2004 2004 Wake Up Call! This is not sustainable!! 6

Paint Dialogue Process 1. Research (10/02 9/03) 1 year Technical Research Document Paint Stewardship Action Plan 2. Dialogue (10/03 9/04) 1 year 4 meetings Numerous workgroup conference calls 3. Project Implementation (4/05 9/06) 18 months 4. Financing & Designing a nationally coordinated paint management system (10/06 3/07) 6 months 7

PSI Role in Paint Dialogue 1. Facilitate/mediate the dialogue 2. Provide technical research and analysis 3. Design and implement pilot projects 4. Clearinghouse for paint product stewardship policies, programs, and data. www.productstewardship.us 5. Glue holding the pieces together. 8

During the Dialogue We Got Agreement on Problem Statement Goals Key Issues Strategies (potential solutions) NOTE: Outcome is not predetermined. 9

The Primary Goal Is To Develop Initiatives That Result In: Reduced paint waste; Efficient collection, reuse, and recycling of leftover paint; Increased markets for recycled paint; and Develop a sustainable financing system to cover end-of of-life management costs. 10

The Memorandum of Understanding (MOU) Was Fully Executed on 3/15/05 11

The MOU is A first step toward a nationally coordinated leftover paint management system 12

The MOU States Project Portfolio 11 projects $1.2 million (raised $860,000) Continue meeting for 2 years MOU is not legally binding MOU does not waive any rights or obligations 13

The Purpose of the Projects Demonstrate the potential to reduce the volume of leftover paint and the cost of managing leftover paint; Increase the use of leftover paint as a resource; Increase government and private purchase of products made from leftover paint. 14

11 PPSI Projects Formation of Project Workgroups Education (2) Infrastructure (3) Markets (3) (2) Survey and Pilot Test (3) Reuse, model, and cost (3) Market Development, Distributor Guide, Recycled Paint Certification Regulatory - White Paper Lifecycle and Cost/Benefit Analysis Finance - National financing options 15

Where Are We Now? 3 projects complete 5 Projects in-process October 1st Start financing discussion and development of nationally coordinated paint management system March 2007 Final PPSI meeting where we hope to agree on a nationally coordinated paint management system 16

State & Local Government Participation David Nightingale, Environmental Engineer Washington State Department of Ecology and NW Product Stewardship Council

Solid Waste Local Govt 20% of Superfund Cleanups were solid waste landfills, typically unlined landfills that allowed industrial wastes Now, bulk liquids wastes cannot be landfilled (paints are not welcome) Household Hazardous Wastes (HHW) are typically discouraged or legally prohibited from solid waste landfill disposal Many local governments collect HHW at events or facilities 18

2004 WA State HHW Collections Total 34.2 million pounds, over 17,100 tons Top 3 HHW types collected from over 200,000 WA participants 35% Used Oil, 11.9 million pounds 25% Latex Paint, 8.5 million pounds 14% Oil-Based Paint, 4.8 million pounds Paints total about 39% --> > costly volume and continuing to increase yearly 19

Leftover Paint Opportunities and Issues Latex is less toxic, highly-recyclable (70-90+%) to quality paint & other products, typically a wasted resource Oil-Based paints have toxic and flammable hazards and differing chemistries Oil-Based paints are a shrinking market and have high levels of volatile organic compounds, VOCs Oil-Based has a good existing market and future prospect as a substitute fuel 20

National Leftover Paint Issues Few paint recycling companies or communities No national paint manufacturing companies accept leftover paint from households nationally Big Box retailers not as involved as others Historic quality problems and no standards Market Demand has not yet emerged, so inconsistent price structure Insufficient and uneven collection infrastructure 21

Infrastructure Project Create a collection, transportation and recycling infrastructure model including capital and operations cost estimates Provide minimum service levels for rural and urban populations Evaluate where existing regional capacity may be sufficient or lacking Provide data and costs to Life-Cycle Assessment and Benefit-Cost project team 22

Initial Draft Infrastructure Map 23

Industry Association Participation Alison Keane, Counsel National Paint and Coatings Association

NPCA Membership NPCA represents ~350 paint and coatings manufacturers, raw material suppliers to the industry and distributors ~90% of paint and coatings industry Not all manufacturers produce architectural coatings Not all manufacturers of architectural paint sell into the consumer market The issue of left-over paint management must be balanced with other priority issues/interests of the membership 25

NPCA s Coatings Care NPCA authored Coatings Care a system of Codes, which is a condition of membership A comprehensive program designed to provide a system that integrates health, safety and environmental activities within corporate planning and manufacturing operations Product Stewardship is one of the Codes of management Defined as establishing health, safety and evnrionmental considerations as an early and integral part of product formulation and communicating appropriate safeguards for product use and disposal to customers 26

NPCA Participation in PPSI Membership dealing with the challenge of post-consumer paint waste for many years on an ad hoc basis PPSI presented the first opportunity for industry to address the issue with an organization made up of multiple stakeholders PPSI presented the first opportunity to develop a post- consumer paint policy on a National scale Participation in Initiative also opportunity to: Combat state-by by-state approach to dealing with left-over paint (Canada) Share/Gain information necessary to address the challenge of post-consumer paint Create partnerships with the various state and local government representatives involved in the issue 27

NPCA PPSI Projects Projects were evaluated and selected based on providing viable information on the issue to develop solutions Core focus of NPCA on this issue has always been consumer education, so several projects sponsored by NPCA deal with this aspect One project, however, focuses on the ultimate question the environmental and economic benefits of different leftover paint management options Industry believes this fundamental question must be answered before solutions are developed 28

LCA/CBA Project Lifecycle Assessment - Cost/Benefit Analysis Will weigh the environmental and economic benefits and impacts of methods for managing leftover latex paint Two Scenarios\Various Methods Consumer Based Dry/stabilize and dispose Reuse Collection Based Dry/stabilize and dispose Reuse Recycle via consolidation (reblended( paint) Recycle via reprocessing (recycled content paint) 29

LCA/CBA Project cont. Lifecycle Cost/Benefit Analysis Project started March 2006 Final ~December 2006 Results will be used in conjunction with the other PPSI projects in the development of a nationally coordinated system for the management of leftover paint Other projects are already addressing different aspects of a national approach Recycled Paint Certification Project 30

Recycled Paint Certification Project Funded by Dunn-Edwards Paint Corporation, Metro, Oregon and California Integrated Waste Management Board Can the solution be market driven? Major barrier to the manufacture of recycled paint is the lack of markets Lack of procurement standards Non-action on existing procurement standards Perception by contractors, consumers, government that recycled content paint is inferior 31

Recycled Paint Certification Project cont. Working with Master Painters Institute and Green Seal, Inc. Comment on draft standard closes May 31, 2006 Final Standard ~September 2006 Recycled Paint Certification establishs criteria for the environmental, safety, and performance characteristics of recycled content paint Consolidated Paint (95% recycled content) Reprocessed Paint (25%/50% recycled content) Goal to assure potential buyers of the quality, performance, and safety of recycled paint 32

Federal Government Participation Barry Elman, Senior Program Manager US EPA

EPA s Participation Management of HHW has traditionally been viewed by EPA as a state/local issue EPA has focused on regulation of hazardous wastes from large commercial, institutional and industrial sources But HHW collectively poses significant environmental risks that are gaining national attention EPA is also increasing its emphasis on resource conservation putting the RC back into RCRA 34

EPA s Participation, cont. PPSI is important from EPA s perspective because it: Presents an opportunity to reduce risks from HHW on a national basis Advances resource conservation by promoting reuse and recycling of a significant post- consumer waste Provides a promising model for collaborative, multi-stakeholder problem solving 35

National Implications of Dialogue Product stewardship efforts are currently underway for a wide variety of consumer and commercial products When it comes to product stewardship, unilateral regulation is not the best answer Federal authority is limited State and local agencies also face limitations and can t ensure a coordinated national approach Regulators usually can t make manufacturers offer, or consumers buy, lower impact recycled products Proper product disposal by consumers is hard to enforce 36

Nat l Implications of Dialogue, cont. The challenges of product stewardship require new tools and strategies PPSI offers a promising approach Each party brings something unique to the table The whole is greater than the sum of the parts Multi-stakeholder consensus can facilitate the best solution and ultimate adoption of the selected approach 37

National Implications of Projects Many of the PPSI projects have implications beyond paint, for example: Infrastructure project: Local governments have traditionally operated their own infrastructure for collecting and managing HHW, and funded it with tax dollars There may be better models which are not available to local governments operating on their own PPSI is exploring such models Better models may have application to other post- consumer wastes 38

Nat l Implications of Projects, cont. Market projects: EPA has set minimum recycled content standards for many consumer and commercial products Mixed record of success in achieving these standards PSI engages multiple stakeholders to identify and overcome barriers to recycling If successful, this model could be transferred to other products LCA/CBA Project: Pioneering exercise combining LCA and CBA into an integrated analytical framework Important precedent for future integrated analyses 39