PSI Paint Dialogue Markets Workgroup Report September 26-27, 2005 Portland, Oregon

2 Team Members Heidi Sanborn, Facilitator PSI Scott Cassel, PSI Robert Wendoll, Dunn-Edwards Jim Quinn, Metro Regional Government, OR Dave Darling, NPCA Lorraine Segala, Amazon Environmental Glenn Gallagher, CIWMB Wayne Gjerde, Office of Environmental Assistance, MN Susan Peterson, ICI North America Pierre Landry, Paint Recycling Company Rebecca Smith, EPA Region 9 Sue Nogas, EPA Alison Hudson and James Flohrschutz, San Joaquin County CA

3 The MOU Outlined Three Marketing Projects #6 Market Development Strategy for PPSI #7 Recycled Paint Marketing Guide for Distributors #8 Recycled Paint Standards & Certification System

4 #6 - RECYCLED PAINT MARKET DEVELOPMENT STRATEGY FOR PPSI This project is to stimulate demand for recycled paint by designing and implementing a market development strategy. The strategy will target those agencies and organizations that have significant influence over high-volume paint purchasing or specifying decisions.  includes state model procurement policy Total Cost: $81,600 Funded: $ 0

5 #7 - RECYCLED PAINT MARKETING GUIDE FOR DISTRIBUTORS The goal is to increase the volume of recycled paint sold to consumers by developing a flexible and adaptable comprehensive marketing guide for both public and private distributors, targeting a variety of market segments (e.g., homeowners, painting contractors, government agencies, non-profits, and export). Total cost: $121,600Funded: $46,000

6 #8 - RECYCLED PAINT STANDARDS & CERTIFICATION SYSTEM This project involves developing composition and performance standards for recycled paint, along with a system for certifying that specific recycled paint products meet the standards. Such actions will help assure potential buyers, and others involved with paint procurement, of the quality and safety of recycled paint. Total cost: $201,600Funded:$231,000

7 Work Completed To Date - #8 #8 –Started with funding from Dunn-Edwards ($11,000) and Portland Metro ($20,000) wrote the CIWMB grant application and retained Cal Poly Technical University as consultants. Researched certification organizations. Cal Poly completed report laying out options for standards and certification – Preliminary Research on Certification Options, Current Paint Recycling Manufacturing, Recycled Paint Testing. Thanks to San Joaquin County CA for submitting grant application to CIWMB to administer grant. $200K CIWMB grant money released mid-August.

8 Cal Poly Report: Key Findings & Recommendations Workgroup Has Agreed on the Recycled Latex Paint Content Required for Certification: 1.Consolidated: Low level of processing Minimum > 95% post-consumer content 5% maximum secondary industrial materials or virgin materials

9 Key Findings & Recommendations (continued) 2.Reprocessed: Remanufactured product > 50% post-consumer for darker colors > 25% post-consumer AND > 50% total recycled content for whites/pastels

10 Key Findings & Recommendations (continued) Preliminary findings suggest that the Recycled Paint Certification System should include: 1. MPI performance standards 2. Green Seal environmental and safety standards (to be developed)

11 Master Painters Institute MPI is “the” performance standard setting organization for paint. MPI recommends that recycled paint meet performance standards that apply to comparable grade virgin paint. Recycled paint should be able to meet MPI standards for specific categories.

12 Green Seal Standards Development If Green Seal were to develop a recycled paint standard, it would take a year for a “consensus-based” process. Subsequently, each manufacturer would submit products for certification. Green Seal would come “audit” facility to verify process standards are being met. Manufacturer would pay one-time fee for product certification and an annual monitoring fee (see Fee Schedule hand-out).

13 Alternative Performance Standard ASTM offers performance testing methods No current recycled paint performance standard Will the ASTM Green Building Group develop a recycled paint performance standard? How would this impact our decision making?

14 #8 – Certification Next Steps… Cal Poly will finalize the “matrix” to evaluate the certification options and make a final recommendation to the PPSI on the “Certification System.” Do we have enough information to decide now? Otherwise, need another 4 weeks for PPSI decision. Once PPSI agrees on the system, Cal Poly negotiates certification development agreement(s). Any questions? Comments? Feedback on the Cal Poly report? Are we ready to make a decision now on the certification system?

15 #8 PERFORMANCE MEASURES We will gauge our success on the following…. Number of agencies or organizations adopting standards in paint specifications Number of manufacturers certifying recycled paint under the procedure developed Increase in sales volume of recycled paint that is “certified”

16 #6 - RECYCLED PAINT MARKET DEVELOPMENT STRATEGY FOR PPSI Project has not been funded as yet. Performance Measures are: Number of state & local governments that adopt the model procurement policy Increase in purchase of recycled paint by specific targeted agencies & organizations Changes in various green purchasing guidelines & specifications

17 #6 - RECYCLED PAINT MARKET DEVELOPMENT STRATEGY (cont.) Many opportunities to promote recycled paint, such as: PDCA Contractor College National Green Communities Initiative New American Dream (institutional procurement) Federal Green Building Guide State model procurement policy So many more!

18 #7 - RECYCLED PAINT MARKETING GUIDE FOR DISTRIBUTORS The goal is to increase the volume of recycled paint sold to consumers by developing a flexible and adaptable comprehensive marketing guide for both public and private distributors, targeting a variety of market segments (e.g., homeowners, painting contractors, government agencies, non-profits, and export). Total cost: $121,600Funded: $46,000

19 #7 - RECYCLED PAINT MARKETING GUIDE FOR DISTRIBUTORS Portland Metro and Dunn-Edwards were the only funders interested in this project. Both parties are willing to revisit allocation of funds based on current situation. Does the PPSI group support transfer of $46,000 funds from #7 to #6? If so, which elements are considered most important? Is there a need for Project #7?

20 Ongoing Projects Outside Dialogue Comments on CA EPP Database CA stopped work on this project Rutgers Study Paint Recycling Co. Concrete Study Product Care Assn. Cement Study EkoSeal ADC Study in Canada

21 RUTGERS STUDY Initial research concludes value-added plastic products can be produced from post-consumer paints blended with waste post-consumer plastics, chiefly #2 HDPE. Possible product - recyclable paint cans! Further research on-hold, based on development of national database of paint dealers willing to donate paint.

22 PAINT RECYCLING COMPANY STUDY The Paint Recycling Company is studying the effects of mixing leftover latex paint into cement. There is a test pour in the next few weeks. PRC will keep PPSI informed of progress and will make a short presentation to follow…

23 Product Care Cement Study Project Managed by University of Western Ontario Project funded by Product Care Association, Materials and Manufacturing Ontario, and the Natural Science and Engineering Research Council of Canada Project will take 2-years, Will measure durability of hardened concrete incorporating WLP

24 EKOSEAL ADC STUDY Hotz and Sustainable Landfill Technologies, Inc., are conducting research on using latex paint sludge from recycling operations as an ingredient in EkoSeal, which is used as Alternative Daily Cover for landfills. Sustainable Landfill Technologies, Inc., is currently bidding on a 5-year contract for a non-hazardous landfill ADC. Product has received positive review and opinion from the Standards and Development Branch of the Ontario Ministry of the Environment. Still need landfill site-specific approval to use product.

25 Workgroup Next Steps… Standards & Certification Project #8 will continue… Move ahead with Project #6? Which specific projects?