1 An Overview of EPR Jim Frey, CEO of Resource Recycling Systems What it Means for North Carolina, and What are Viable Alternatives NC SWANA Fall Conference October 14, 2014

Providing solutions to meet sustainability, resource management and waste recovery goals of clients and their supply chains

Some governments outside the U.S. have used Extended Producer Responsibility (EPR) programs to incentivize material recovery EPR programs require those who design, produce, sell or a use a product to take responsibility for the package after consumers have used it Producers pay into the program, and funds are used to manage the product’s end of life Most are funded by a per package fee Fees are assessed based on the amount of packaging as declared by producers Extended Producer Responsibility

Provides funding for expanded recycling collection infrastructures Shares responsibility for recycling management between government and private industry Builds alignment, framework and funding Builds a larger, more stable secondary materials market Minimizes disposal costs to local governments Encourages design of environmentally friendly packaging Advantages of EPR

Can be disruptive of well run public sector programs Industry concern for cost burden can compromise program design in ways that might not fit local needs Public sector may lose some control over how recycling services are presented locally Industry cost is passed on to consumers Mandates not popular in the U.S. Complex system to implement Disadvantages of EPR

House Bill 949: Market Based Recycling Implements a producer responsibility program for packaging and printed paper used by households Each producer, or a group of producers, must submit a recycling program plan for the collection and recycling of materials Establishes mandatory recycling rate of 50% by weight by June 1, 2020 for all household packaging and printed paper sold in NC Mandatory recycling rate is 60% by weight by June 1, 2023 Producers are responsible for costs and may not charge households at the time recyclables are collected 6

 EPR for Packaging Under Consideration  Existing EPR for Packaging EPR in Canada About 50 product stewardship programs Programs are mandated An NGO typically manages the program

 Existing EPR for Packaging EPR in Europe Many EU countries employ EPR Some mandated, some voluntary

MAXIMUM EFFICIENT RECOVERY Best practices in recovery with joint industry and public collaboration on programs, policy, governance and funding results in maximum efficient recovery Voluntary Producer Responsibility Building Out for Maximum Efficient Recovery Public sector and industry VPR+ efforts are extended through voluntary collaboration and cross-sector public/ private governance tools to jointly fund and operate recovery systems Public sector supports industry VPR campaigns with effective policies (legislation, ordinances, rules, regulations, etc.) Voluntary producer investments begin to share responsibility for recovery of post consumer packaging

Provides industry an opportunity to help with current recovery challenges and increase the supply of valuable industry commodities. Provides an alternative to the patchwork of state and local regulatory interventions that create risk for producers. Offers a spectrum of potential entry points and outcomes that maximize flexibility and promote steady progress. 10 Why do we need a voluntary producer responsibility model?

An integrated solution for a diverse marketplace Voluntary Producer Responsibility Shared Collaborative Public/Private Recovery

Best Practices Needed in 6 Key Areas for Recovery Success RRS Vision for VPR+/++ 1 COLLECTION Collect and capture. 2 PROCESSING Efficient processing multiplies results. 6 END MARKETS Optimizing material markets. 4 EDUCATION Consumers support solutions. 5 STATE LEVEL Manage the tools for success. 3 LOCAL GOVT Local action creates results.

Processing Education Local and State Policy Financial RRS Vision for VPR+/++ Formula Pushing Clients from Good to Great! AMERIPEN-RRS

Government Engagement Processing Local Participation Education Recovery Infrastructure Education Local and State Participation CARTS AND EDUCATION Expanded access with rolling carts Maximize types of packaging materials collected Leverage hub and spoke models to drive supply Optimize MRF utilization, technology adoption, overall capacity and efficiency of operation CARTS AND EDUCATION Expanded access with rolling carts Maximize types of packaging materials collected Leverage hub and spoke models to drive supply Optimize MRF utilization, technology adoption, overall capacity and efficiency of operation INCENTIVES AND EDUCATION Sustained incentive-type programs Targeted community based social marketing/incentives State Partnerships, CVP, KAB and Earth911 Funding levels at or above $1 per household INCENTIVES AND EDUCATION Sustained incentive-type programs Targeted community based social marketing/incentives State Partnerships, CVP, KAB and Earth911 Funding levels at or above $1 per household POLICIES AND AND EDUCATION Unit based pricing programs Local recycling ordinances State level landfill bans/mandated recycling POLICIES AND AND EDUCATION Unit based pricing programs Local recycling ordinances State level landfill bans/mandated recycling RRS Vision for VPR+/++ Formula Supporting Initiatives to Boost Recovery AMERIPEN-RRS

@recycle_com Jim Frey RRS/CEO