Paint Product Stewardship Initiative December 16-17, 2003 Boston, MA

December 16-17, 2003 PSI Paint Stewardship Project 2 Product Stewardship Institute Founded in December 2000 Based at the University of Massachusetts/Lowell Coalition/Affiliate Members Agency leaders pledge to work with PSI on product stewardship issues 26 State members 23 Local agency members

December 16-17, 2003 PSI Paint Stewardship Project 3 PSI Mission “…assists state and local government agencies in establishing cooperative agreements with industry and developing other initiatives that reduce the health and environmental impacts from consumer products.”

December 16-17, 2003 PSI Paint Stewardship Project 4 PSI Projects Electronics (Staples pilot) Paint (Benjamin Moore pilot) Pressurized Gas Cylinders Radioactive Devices Mercury Thermostats Tires

December 16-17, 2003 PSI Paint Stewardship Project 5 Other Product Stewardship Initiatives in the U.S. Beverage containers Mercury products Rechargeable Batteries Used Oil Auto batteries Carpet

December 16-17, 2003 PSI Paint Stewardship Project 6 PSI Role in Paint Dialogue Research/technical competency Forum for stakeholder dialogue Design and implement pilot projects Clearinghouse for paint product stewardship policies and programs

December 16-17, 2003 PSI Paint Stewardship Project 7 PSI’s “Agenda” Promote product stewardship solutions Reduce product impacts Forge partnerships that share responsibility Management Financing Get results – not just discussion

December 16-17, 2003 PSI Paint Stewardship Project 8 NOT PSI’s Agenda No preconceived strategies to reduce product impacts Not advocating for one strategy over another No preconceived notion on how to finance strategies

December 16-17, 2003 PSI Paint Stewardship Project 9 Meeting Objectives Agree on: Stakeholder roles/process Dialogue mission Dialogue focus Dialogue purpose Problem statement Dialogue goals Confirm road map

December 16-17, 2003 PSI Paint Stewardship Project 10 Meeting Objectives Learn from presentations and research Explore priority issues and strategies Issue 1: Leftover Paint (#1) Issue 2: Collection (#3) Issue 3: Disposal (#2) Issue 4: Financing (introduction) (#10) Establish work groups on strategies Determine next steps

December 16-17, 2003 PSI Paint Stewardship Project 11 What is a Dialogue? Listen/learn from each other Explore disagreements Deliberate and weigh comments Balanced participation

December 16-17, 2003 PSI Paint Stewardship Project 12 Stakeholder Roles – Recipe for a Successful Dialogue Authorized to represent company, agency, or organization Attend 4 meetings (or via phone) Active participation at and between meetings Jointly develop agreement Ensure your interests and others’ interests are met

December 16-17, 2003 PSI Paint Stewardship Project 13 Consensus All participants can live with decision and no one will actively block or undermine decision Voluntary initiatives only require willing participants The greater the stakeholder agreement, the greater the likelihood that the agreement will be sustainable

December 16-17, 2003 PSI Paint Stewardship Project 14 Consensus Consensus is preferable for broad initiatives Technical standards Policies Legislation Consensus is NOT needed for pilot projects or individual initiatives

December 16-17, 2003 PSI Paint Stewardship Project 15 Dialogue Mission We will seek to develop voluntary initiatives/agreements to enhance product stewardship in the paint industry by January 1, 2005

December 16-17, 2003 PSI Paint Stewardship Project 16 Dialogue Focus Post-consumer leftover paint Retail surplus paint? Manufacturer paint process efficiencies/waste?

December 16-17, 2003 PSI Paint Stewardship Project 17 Dialogue Purpose Explore voluntary partnerships Find business opportunities/market solutions Reduce impacts from leftover paint through product stewardship solutions Reduce leftover paint management costs

December 16-17, 2003 PSI Paint Stewardship Project 18 Dialogue Purpose Develop a national solution to paint mgt Promote positive efforts through the media Negotiate a sustainable financing system

December 16-17, 2003 PSI Paint Stewardship Project 19 Road Map MEETING 2 MEETING 3 MEETING 1 AGREEMENTS START December 2003 March 2004 June 2004 September 2004 Workgroups #1-3 Develop findings Draft work plans Workgroups #8-10 Develop Findings Draft work plans Workgroups #4-7 Develop Findings Draft work plans Discuss Priority Issues and Strategies Groups #1-3: present findings/plans Discuss Issues/Strategies #4-7 Groups #4-7: present findings/plans Discuss Issues/Strategies #8-10 MEETING 4 Review progress Ratify agreements Dialogue Meeting Workgroup Activity

December 16-17, 2003 PSI Paint Stewardship Project 20 Possible Dialogue Outcomes Pilot projects with measurable results Model state policies (e.g., procurement) National standards (e.g., recycled paint, definitions)

December 16-17, 2003 PSI Paint Stewardship Project 21 Possible Dialogue Outcomes Business innovations/profitability studies (e.g., reverse logistics potential) Model state or federal legislation Model state or national education campaign National sustainable financing system for the management of surplus paint

December 16-17, 2003 PSI Paint Stewardship Project 22 Possible Mechanisms for Agreements Letter of agreement between those involved in pilot project Memorandum of agreement between stakeholders stating intent to perform certain activities

December 16-17, 2003 PSI Paint Stewardship Project 23 What do we want to avoid? Avoid multiple state solutions Avoid unilateral state or federal regulation Avoid leaving the problem to someone else Avoid finger pointing

December 16-17, 2003 PSI Paint Stewardship Project 24 Stakeholder Viewpoints Manufacturers Retailers Government Recyclers Other

December 16-17, 2003 PSI Paint Stewardship Project 25 Manufacturer Views Paint Performance/Application Quality Concerns of Recycled Paint Lack of control of raw materials Complicates meeting VOC regulations and performance requirements

December 16-17, 2003 PSI Paint Stewardship Project 26 Manufacturer Views Paint Performance/Application Quality Concerns of Recycled Paint Labeling/MSDS compliance difficult since don’t know what is in paint May increase manufacturer’s liability Affects warranty guarantees If poor performance, adds to negative perception of recycled paint

December 16-17, 2003 PSI Paint Stewardship Project 27 Manufacturer Views RCRA regulations with paint take back Taking back paint might bump company into higher RCRA regulatory scheme Distinguish between paint take back from store, consumer, or supplier Labeling of paint can Space constraints already challenging/regs Cost to change label Consumer desensitization to over-labeling

December 16-17, 2003 PSI Paint Stewardship Project 28 Manufacturer Views Maximize the use of existing municipal infrastructure to manage post-consumer NPCA and member companies cannot participate in discussions related to paint pricing or conditions of sale – antitrust Drying latex paint is a proper disposal method but last resort after reuse (incl. donation and exchange) Increased recycled paint supply might dilute market – competition for virgin paint

December 16-17, 2003 PSI Paint Stewardship Project 29 Retailer Views Don’t want to be required to take back paint; might do voluntarily. Don’t want to be a collection center for a myriad of used products. Looking for way to cut own leftover paint costs. Often view education role favorably. Concerns: staffing cost/turnover; administration costs; liability; lack of proper handling knowledge

December 16-17, 2003 PSI Paint Stewardship Project 30 Government Views Most leftover paint is disposed. May be willing to use existing municipal infrastructure. Infrastructure to collect and process post- consumer paint is inadequate. Want retailers and manufacturers to play significant roles in managing post- consumer paint.

December 16-17, 2003 PSI Paint Stewardship Project 31 Government Views Cannot continue to bear the full responsibility for managing post-consumer paint. Leary of over-reliance on education to reduce post-consumer paint Willing to work with agency procurement staff to purchase recycled paint.

December 16-17, 2003 PSI Paint Stewardship Project 32 Recycler Views High quality recycled paint can be produced. Need government procurement – action as well as policies. Markets – Markets – Markets

December 16-17, 2003 PSI Paint Stewardship Project 33 Other’s Views “How will they ever reach agreement?” “Can you believe what he said?” “How do I get to the Boston Common?” “Will it ever stop snowing in Boston?”

December 16-17, 2003 PSI Paint Stewardship Project 34 Process for Developing Problem Statement and Dialogue Goals Draft Problem Statement and Goals appeared in Project Summary Interviews with 37 stakeholders Changes made after each interview Draft Action Plan/comments NOT PSI’s Problem Statement/Goals

December 16-17, 2003 PSI Paint Stewardship Project 35 Paint Problem Statement Significant government cost to manage. Can contain low levels of VOCs, fungicides and hazardous metals (in very old paint) Lack of infrastructure for increased recovery, reuse, recycling Lack of markets for recycled paint

December 16-17, 2003 PSI Paint Stewardship Project 36 Primary Dialogue Goal Develop initiatives that will result in: Reduced paint waste; Efficient collection, reuse, and recycling of leftover paint; Increased markets for recycled paint; and Sustainable financing systems to cover end- of-life management costs for past and future products

December 16-17, 2003 PSI Paint Stewardship Project 37 Supporting Goals Decrease illegal disposal of leftover paint Attain the highest value possible for surplus paint Improve container collection/recycling Reduce paint toxicity

December 16-17, 2003 PSI Paint Stewardship Project 38 Purpose of Presentations Illustrate product stewardship Show potential for collaboration Portray possibilities Outline current boundaries of knowledge

December 16-17, 2003 PSI Paint Stewardship Project 39 Issue/Strategy Discussion: Model Ideal World: where do we want to be? Now: what’s happening now? Bridge: how do we get from Now to Ideal World?

December 16-17, 2003 PSI Paint Stewardship Project 40 Issue/Strategy Discussion Background technical information Clarify Issue and Strategies Parking lot: additional strategies Prioritize strategies

December 16-17, 2003 PSI Paint Stewardship Project 41 Issue #4: Financing We need to first figure out what we want to accomplish, and THEN we can figure out how to finance it.

December 16-17, 2003 PSI Paint Stewardship Project 42 Financing Front-end payments Advanced Recycling Fee (visible) Tires, lead acid batteries, motor oil Government or industry-managed fund Cost internalization (invisible) Back-end fees Deposits Retail coupons/incentives

December 16-17, 2003 PSI Paint Stewardship Project 43 Financing What are the 2 main things about financing that you would like addressed in dialogue? Additional research/information you need to be prepared to discuss financing at the California meeting?

December 16-17, 2003 PSI Paint Stewardship Project 44 Next Steps Confirm strategies to further investigate Set Workgroups Workgroup participants Tasks Workgroup Leader

December 16-17, 2003 PSI Paint Stewardship Project 45 Workgroup Activities Outcomes Present findings/recommendations at CA meeting Participate in conference calls Develop work plan including: Determine major tasks and timelines Identify potential pilot opportunities Identify staffing and funding requirements Identify challenges, barriers Draft agreement language

December 16-17, 2003 PSI Paint Stewardship Project 46 Next Steps Outline next tier of issues for 2 nd meeting Financing Non-paint uses Sale of paint with recycled content Paint manufacturing Stakeholder assessment

December 16-17, 2003 PSI Paint Stewardship Project 47 Next Steps Schedule next meeting Dates April 1-2 April Location (host) Meeting length Tours

December 16-17, 2003 PSI Paint Stewardship Project 48 Potential dates for 3 rd meeting in Washington DC June June June 29-30

December 16-17, 2003 PSI Paint Stewardship Project 49 Next Steps Limit distribution of project information Draft meeting notes/documents Final meeting notes/documents Maintain information confidentiality Control publicity/media coverage General notification about dialogue? Newsletter updates? Press releases?