May 3-4, 2006 PPSI Meeting - Sarasota FL1 Regulatory Barriers Workgroup  Heidi Sanborn, R3 Consulting Group, Facilitator  Scott Cassel, PSI  Alison Keane, NPCA  Harry Finkbone and Susan Peterson, ICI Paint North America  Dana Coyle, NJ DEP  Jim Quinn, Portland Metro Government, OR  Sara Hartwell, EPA  Andrea Adams, Barnstable County, MA  Tom Metzner, CT DEP  Tom Hyatt, PA DEP  Rebecca Smith, Region 9 EPA

May 3-4, 2006 PPSI Meeting - Sarasota FL2 Health, Safety, And Environmental Regulatory Considerations For Paint Manufacturing The MOU states: “This project will detail the various health, safety, and environmental regulations that paint manufacturers must comply with. The project will also identify what, if any, barriers the regulatory considerations present to the manufacture of reblended or recycled post-consumer content latex and solvent-based paint. If barriers are identified, the team will work to reduce the barriers. The product will be a white paper.”

May 3-4, 2006 PPSI Meeting - Sarasota FL3 Work to Date  Draft White Paper reviewed by PPSI  PPSI and PSI comments incorporated into draft  Report is final pending PSI final review

May 3-4, 2006 PPSI Meeting - Sarasota FL4 Federal Regulations  Primary Federal Governing Regulations: –Consumer Product Safety Act/Federal Hazardous Substance Act (CPSC) –Hazard Communication Standard (OSHA) –National Volatile Organic Compound (VOC) Emission Standards (EPA)  Secondary Federal Government Regulations: –Resource Conservation and Recovery Act (EPA) –Hazardous Materials Regulations (DOT)

May 3-4, 2006 PPSI Meeting - Sarasota FL5 State & Local Regulations  State Regulations: –Right-to-Know Laws –Air Quality Regulations –Occupational Safety and Health Regulations –Waste Handling Regulations  Local Regulations: –Air Quality Regulations –Fire Code Regulations

May 3-4, 2006 PPSI Meeting - Sarasota FL6 International Regulations  Canada: –Hazardous Products Act Consumer Chemicals and Container Regulations for consumer products; Controlled Product Regulations which are commonly referred to the Workplace Hazardous Material Information System for industrial products  Mexico: –General Consumer Labeling Requirements

May 3-4, 2006 PPSI Meeting - Sarasota FL7 General Conclusion  Group determined that single greatest barrier to recycled content paint is the regulatory structure itself; a structure based on “known” versus “unknowns”  Virgin paint manufacturers deal with the known, using formulation data to verify product content from raw materials  Recycled paint manufacturers deal with the unknown, and must set up extensive sorting and testing protocols in order to ensure their hazard communication requirements are met  Structure increases the regulatory burden associated with recycled paint manufacturing and provides a disincentive to the production of recycled content paint

May 3-4, 2006 PPSI Meeting - Sarasota FL8 Options  Possible initiatives that can grant regulatory relief to encourage recycled paint manufacturing: –Extend VOC content provisions of Federal rule to OTC States and others –Creation of a uniform system of regulations for recycled paint manufacture, based on “product” not “waste” criteria –Use of OSHA’s mixture rule to address hazard communication requirements

May 3-4, 2006 PPSI Meeting - Sarasota FL9 Recommendations PPSI decided at Sept meeting to extend VOC content provisions of Federal rule to OTC States and others PPSI decided to wait until the results from the recycled paint certification project are completed, since the certification will bolster the argument to extend the VOC content provisions.

May 3-4, 2006 PPSI Meeting - Sarasota FL10 Comments? Questions?  Do you believe the White Paper has achieved the goals of the project?  Do you believe the White Paper is complete?  Do you propose any edits to the White Paper?  Should the White Paper be distributed for further review prior to being finalized and posted on the NPCA and PSI websites?

May 3-4, 2006 PPSI Meeting - Sarasota FL11 Next Steps  Issue final document.  Send asking for any further state and local regulations that can be included in the regulatory document (Alison Keane).  Report on a voluntary inspection that pertains to the crystalline silica issue (Jen Holliday).  NPCA will draft a letter to be sent on PSI letterhead that explains the PPSI group interest in expanding the VOC content provisions in the OTC region. PSI will consult with the Northeast Waste Management Officials Association (NEWMOA), the Northeast States Coordinated for Air Use Management (NESCAUM), and the Association of State and Territorial Waste Management Officials (ASTSWMO) to join forces on this request.  Provide information related to import/export regulations, which may affect the viability of transferring leftover paint across the U.S./Canadian border (Harry Finkbone).  Consider a future agenda item to reduce barriers to oil-paint recycling.