California Resource Recovery Association EPR That Works! California Resource Recovery Association August 8, 2016 Thank you for having us here today. Our council is the largest, most active council in the US. CA has 40 million people and is 12% of the US market share – we are the big gorilla We are a coalition of local governments, businesses, NGO’s and individuals working to bring EPR policy to California for problem product waste. We began convening in Spring of 2006 in response to the Universal Waste Disposal Ban (Lamps, batteries, e-waste). The intent of the U-waste ban was good, but the consequences of this unfunded mandate are significant, particularly for local government, their taxpayers and rate payers. We think Extended Producer Responsibility (EPR) or a non-legislated version we call Product Stewardship is a better way to address problematic products like packaging. In four years, CPSC facilitated the adoption of 114 local government resolutions in support of EPR policy as well as adoption of EPR policy support from the three statewide government associations. We also drafted the resolution that was adopted by the US Conference of Mayors. On the business side, we have several national partners, and include Staples, two national waste haulers Republic, Recology – and the national manufacturing organization Reusable Packaging Association is a partner. We also have partnerships with national NGO’s like the Sierra Club and the Electronics Take-Back Coalition. Our focus is on hazardous products first, but packaging is becoming a big issue in CA and the US which has led us to become educated and engaged on the subject. Presenters: Heidi Sanborn, Executive Director Doug Kobold, Vice-Chair

CPSC Mission – Goals of EPR To shift California’s product waste management system from one focused on government funded and ratepayer financed waste diversion to one that relies on producer responsibility in order to reduce public costs and drive improvements in product design that promote environmental sustainability. [click] CPSC’s mission is straightforward: (pause 5 seconds to let people read slide) Someone once said, ‘Insanity is doing the same thing over and over again but expecting a different result.” Some reasons we’re so committed to this mission: Landfill bans don’t work Privatizing profit and socializing costs is economically unsustainable The free market is broken – we need to internalize costs which have been externalized – we need the market to send the lifecycle cost signals to the consumers for the free market to work and stay in balance Local governments cannot manage every product placed on the free market cost effectiely!

Product Stewardship & Extended Producer Responsibility Cost typically borne by consumers through visible fee Little to no cost to manufacturers or retailers No incentive for greener design Extended Producer Responsibility (EPR) Cost of end of life management borne by Manufacturers Costs may be incorporated into pricing, but not visible to consumer Internalized costs incentivize greener design CalRecycle endorsement of EPR in 2007 139 Local Government resolutions supporting EPR covering 68% of the state’s population

Product Stewardship & EPR Programs (cont’d) California Ten Programs Three EPR – Thermostats, Ag Pesticide Containers, Recalled Products One Retailer Take-back - Rechargeable Batteries One Product Stewardship with some EPR – Bottle Bill Five Product Stewardship – Tires, eWaste, Carpet, Paint, Mattresses Local Pharmaceuticals Sharps United States See PSI Map 1986 – AB 2020 Beverage Container Recycling and Litter Reduction Act (PS - State Run) 1996 – AB 2108 Tire Recycling Act (PS - State Run) 2003 – SB 20 Hazardous Electronic Waste Recovery, Reuse, and Recycling Act (PS - State Run) 2005 – AB 1125 Rechargeable Battery Recycling Act (EPR) 2008 – AB 2347 Mercury Thermostat Collection Act (EPR) 2010 – AB 2398 Product Stewardship for Carpets (PS – Industry Run) 2010 – AB 1343 Architectural Paint Recovery Program (PS – Industry Run) 2013 – SB 254 Used Mattress Recovery and Recycling Act (PS – Industry Run)

Product Stewardship & EPR Programs (cont’d) California Programs EPR Thermostats (2008, AB 2347) – Industry Ag Pesticide Containers (2008, SB 1723) – Industry Recalled Products Take-back (2008, AB 1860) – Industry Retail Take-back Rechargeable Batteries (2005, AB 1125) – Retailers Product Stewardship w/EPR Bottle Bill (1986, AB 2020) – State (CalRecycle) (Product Stewardship) - $0.05 or $0.10 each with payments by industry for container type (EPR) Product Stewardship Tires (1996, AB 2108) – State (CalRecycle) - $1.75/tire eWaste (2003, SB 20) – State (CalRecycle) - $3, $4, or $5 each Carpet (2010, AB 2398) – Industry (CARE) - $0.20/sq yd Paint (2010, AB 1343) – Industry (PaintCare) - $0.35/pint or qt., $0.75/gal, $1.60/5-gal Mattresses (2013, SB 254) – Industry (MRC) - $11.00/unit 1986 – AB 2020 Beverage Container Recycling and Litter Reduction Act (PS - State Run) 1996 – AB 2108 Tire Recycling Act (PS - State Run) 2003 – SB 20 Hazardous Electronic Waste Recovery, Reuse, and Recycling Act (PS - State Run) 2005 – AB 1125 Rechargeable Battery Recycling Act (EPR) 2008 – AB 2347 Mercury Thermostat Collection Act (EPR) 2010 – AB 2398 Product Stewardship for Carpets (PS – Industry Run) 2010 – AB 1343 Architectural Paint Recovery Program (PS – Industry Run) 2013 – SB 254 Used Mattress Recovery and Recycling Act (PS – Industry Run)

Product Stewardship & EPR Programs (cont’d) California – Status of Programs EPR Thermostats (2008, AB 2347) – Industry – Needing change. Under consent order. Ag Pesticide Containers (2008, SB 1723) – Industry – Working well. Recalled Products (2008, AB 1860) – Industry Retailer Take-back Rechargeable Batteries (2005, AB 1125) – Industry – No cost to local government. Product Stewardship w/EPR Bottle Bill (1986, AB 2020) – State (CalRecycle) run (Product Stewardship) with payments by industry for container type (EPR) – Continuing change due to over-success of program and legislative changes for expenditure of surpluses. Not sustainable. Watch SB 842. Product Stewardship Tires (1996, AB 2108) – State (CalRecycle) - Continuing change. Synthetic Turf issue having significant impact. No cost recovery by local government or solid waste facilities. eWaste (2003, SB 20) ) – State (CalRecycle) - Successful for CRTs & Flat Panels. Only for products with screen 4” or greater. Needing change for other eWaste products. Only program in USA where Producers don’t pay into the system. Carpet (2010, AB 2398) – Industry (CARE) – Significant change necessary. Limited or no cost recovery by local government or solid waste facilities. Paint (2010, AB 1343) – Industry (PaintCare) - Appears successful so far. Only transportation and recycling costs covered. Mattresses (2013, SB 254) – Industry (MRC) - New program. Appearing successful. Handling cost recovery provided. Transportation and recycling costs covered. Non-Profit Type Benefit 501 C3 Public Benefit 501 C4 Mutual Benefit 501 C6 Member Benefit 1986 – AB 2020 Beverage Container Recycling and Litter Reduction Act (PS - State Run) 1996 – AB 2108 Tire Recycling Act (PS - State Run) 2003 – SB 20 Hazardous Electronic Waste Recovery, Reuse, and Recycling Act (PS - State Run) 2005 – AB 1125 Rechargeable Battery Recycling Act (EPR) 2008 – AB 2347 Mercury Thermostat Collection Act (EPR) 2010 – AB 2398 Product Stewardship for Carpets (PS – Industry Run) 2010 – AB 1343 Architectural Paint Recovery Program (PS – Industry Run) 2013 – SB 254 Used Mattress Recovery and Recycling Act (PS – Industry Run)

Product Stewardship & EPR Programs (cont’d) Local Initiatives 1986 – AB 2020 Beverage Container Recycling and Litter Reduction Act (PS - State Run) 1996 – AB 2108 Tire Recycling Act (PS - State Run) 2003 – SB 20 Hazardous Electronic Waste Recovery, Reuse, and Recycling Act (PS - State Run) 2005 – AB 1125 Rechargeable Battery Recycling Act (EPR) 2008 – AB 2347 Mercury Thermostat Collection Act (EPR) 2010 – AB 2398 Product Stewardship for Carpets (PS – Industry Run) 2010 – AB 1343 Architectural Paint Recovery Program (PS – Industry Run) 2013 – SB 254 Used Mattress Recovery and Recycling Act (PS – Industry Run) Pharmaceuticals Sharps Alameda County (2012) San Luis Obispo County (2008) Kings County, WA (2013) City of Sacramento (2010) City & County of San Francisco (2015) Tulare County JPA & 8 Cities (2014) San Mateo County (2015) Alameda County (2015) Santa Clara County (2015) Santa Cruz County (2015) Marin County (2015) City of Galt (2015) Santa Barbara County (2016) Los Angeles County (Pending)

Product Stewardship & EPR Programs (cont’d) Thoughts for what works best? EPR Legislation Checklist CalRecycle (www.calrecycle.ca.gov/epr/Resources/ChecklistOv.doc) Add a 501 C3 requirement Cover local government costs until plan approved and program implemented Add an advisory committee requirement Devil is in the details Example: 501 C3 vs. 501 C6 Product Stewardship Any visible fee requires: All of the above, plus Independent committee that creates the plan, budget, & establishes fee level Independent committee controls expenditures 1986 – AB 2020 Beverage Container Recycling and Litter Reduction Act (PS - State Run) 1996 – AB 2108 Tire Recycling Act (PS - State Run) 2003 – SB 20 Hazardous Electronic Waste Recovery, Reuse, and Recycling Act (PS - State Run) 2005 – AB 1125 Rechargeable Battery Recycling Act (EPR) 2008 – AB 2347 Mercury Thermostat Collection Act (EPR) 2010 – AB 2398 Product Stewardship for Carpets (PS – Industry Run) 2010 – AB 1343 Architectural Paint Recovery Program (PS – Industry Run) 2013 – SB 254 Used Mattress Recovery and Recycling Act (PS – Industry Run)

What Can You Do To Help? Educate your local and state political officials on the benefits of EPR. Ensure EPR is part of your legislative platform. Turn letters much faster by passing resolutions. Create your own local ordinances. Use existing programs whenever possible. And of course, follow and share posts on CPSC.

Thank you for your support! Heidi Sanborn Executive Director heidi@calpsc.org 916-706-3420 Doug Kobold Vice-Chair koboldd@saccounty.net 916-875-7087 www.CalPSC.org To conclude, CPSC has been very busy and successful at educating all stakeholders about EPR to build the foundation for a paradigm shift. The best outcome is a statewide EPR system. CPSC is working to harmonize EPR legislation with other states. We encourage you to get involved and let legislators know that you support our efforts to bring EPR to California. Peter Senge, Senior Lecturer at MIT and author, challenges us to imagine a world where environmentally sound products and practices would be more cost-effective than wasteful ones – a world in which corporations like Nike, Costco, BP and others will form partnerships with environmental organizations….to ensure better stewardship of the earth. This is the world we want to help build and we’d like to work with you to build it. So what products are next Sharps, Fluorescent Lamps, Household Batteries, All electronics, Pesticides, Pharmaceuticals, Packaging I’m happy to answer any questions! Connect!