A Comprehensive Product Stewardship Approach Options for Rhode Island April 15, 2010 Scott Cassel, Executive Director/Founder Product Stewardship Institute, Inc.

Meeting Purpose GOAL: Develop recommendations to RI DEM (General Assembly) on framework policy Develop common understanding of product stewardship and its application in RI Develop common understanding about framework legislation in other US states Discuss policy options and preferences for Rhode Island RI Framework Stakeholder Meeting – April 15,

Post-Meeting Action PSI to develop meeting summary Includes recommendations Becomes part of revised framework study Stakeholder review of revised study PSI submits final study to RI DEM RI Framework Stakeholder Meeting – April 15,

What is product stewardship? “Product Stewardship" is a principle that directs all those involved in the life cycle of a product to take shared responsibility for reducing the health and environmental impacts that result from the production, use, and end-of-life management of the product. 4 RI Framework Stakeholder Meeting – April 15, 2010

Principles of Product Stewardship  Cost internalization  Shared responsibility o manufacturers have greatest role to play  Lifecycle costs  Performance goals  Flexibility for producers  Endorsements : NLC, ECOS, SWANA, RPA, NWPSC, NERC, NAHMMA, GPSC (Australia), CRRA, CRA, etc.  Basic building blocks of product stewardship programs  Developed by PSI in RI Framework Stakeholder Meeting – April 15, 2010

 Product design changes  Greater environmental protection Reduce release of toxic substances in mfr, use, disposal Resource recovery (source reduction, reuse, recycling) Reduce GHG emissions Environmental Benefits of Product Stewardship 6 RI Framework Stakeholder Meeting – April 15, 2010

Economic Benefits of Product Stewardship Direct cost savings As manufacturers take on costs cities and towns are now paying to collect, transport, and recycle used products Potential job creation As recycling creates 10 times more jobs than disposal Expanded service As consumers enjoy convenient recycling for more products 7 RI Framework Stakeholder Meeting – April 15, 2010

Potential Benefits for Rhode Island Electronics $2.2 million Paint $2.1 million Pesticides$1.3 million Batteries (primary) $843,000 Batteries (secondary) $253,000 Medical sharps (home)$674,000 Fluorescent lamps (household)$295,000 Thermostats (mercury)$158,000 Phone books $137,000 Total Maximum Benefits for RI = $8.0 million/yr *Based on a state population of 1,053,209 (U.S. Census 2009 estimate) 8 RI Framework Stakeholder Meeting – April 15, 2010

State EPR Laws

State EPR Laws

Emergence of Product Stewardship in the US  31 states have a product stewardship law  Laws cover 7 products:  Auto switches  Batteries  Electronics  Fluorescent lamps  Mercury thermostats  Paint  Pesticide containers  Numerous bills introduced during 2010 legislative session 11 RI Framework Stakeholder Meeting – April 15, 2010

* New York City has also passed a product stewardship electronics law. CA was the first state to pass an electronics law, but it is based on an advanced recycling fee. ProductNo. of Laws States with Product Stewardship Law Electronics18* CT, HI, IL, IN, ME, MD, MI, MN, MO, NJ, OK, OR, RI, TX, VA, WA, WV, WI Auto Switches13 AR, IL, IN, IA, ME, MD, MA, NJ, NC, RI, SC, UT, VT Batteries7FL, IA, ME, MD, MN, NJ, VT Thermostats (mercury)7CA, IA, ME, MT, NH, PA, VT Fluorescent Lamps2ME, WA Paint1OR Pesticide Containers1CA Framework1ME

Common Features of Product Stewardship Laws Leads to Comprehensive or “Framework” Approach Framework builds on states’ successful experience with stewardship of individual products. It defines an overall policy structure that can be applied to an array of products Framework has been enacted in ME and introduced in CA, MN, OR, RI, VT, and WA 13 RI Framework Stakeholder Meeting – April 15, 2010

Familiarity with Framework Concepts Many product stewardship laws include elements contained in state framework legislation State thermostat bills – for example: –Producer responsibility –Producer plan submitted to state agency –State agency reports to state legislature –Recycling requirement –Performance goals –State agency enforcement and oversight 14 RI Framework Stakeholder Meeting – April 15, 2010

Framework Policy Different Approaches Framework policies in place in British Columbia, Manitoba, and Ontario. Framework policy will be rolled out in all other Canadian provinces. Framework policy comes in a variety of forms: –WEEE Directive (electronics/electrical equipment) –Household hazardous waste –Groups of products –US Framework approach: process oriented (common elements) 15 RI Framework Stakeholder Meeting – April 15, 2010

Framework Legislation Advantages/Concerns Advantages –Streamlines legislative process (e.g., greater efficiency) –Harmonizes policy in a state (and federally) –Creates more predictable/stable business environment –Ability to respond rapidly to environmental needs Concerns –Framework implies “one size fits all” but each product is unique –Delegates too much authority to state agency –Framework legislation would make product stewardship a statewide policy 16 RI Framework Stakeholder Meeting – April 15, 2010

A Comprehensive Approach to Product Stewardship Options for Rhode Island Jennifer Nash, Director of Policy and Programs Product Stewardship Institute, Inc. 17

Framework Legislation Components 1.Criteria for designating products 2.Authority for designating products 3.Program financing 4.Planning and reporting progress 5.Performance goals and enforcement 6.Regional policy coordination 18 RI Framework Stakeholder Meeting – April 15, 2010

Criteria for Designating Products RI framework bill: Contain toxics that pose environmental or health risk Potential to increase reuse and recycling Potential to reduce costs to local governments and taxpayers Successful stewardship programs in other states or countries Existing voluntary stewardship programs are not adequate Other framework bills: Climate change impacts Burden product places on existing waste management system Possibility for new business opportunities or job creation Include specific products in framework bill (e.g., packaging, etc.) 19 RI Framework Stakeholder Meeting – April 15, 2010

Authority to Designate Products RI framework bill calls for sharing authority between RIRRC and the General Assembly with stakeholder consultation Other framework approaches: ME’s law uses same approach as RI, but with ME DEP initiating process VT’s bill also calls for Secretary of Environmental Affairs to submit a list of designated products to General Assembly after consultation 20 RI Framework Stakeholder Meeting – April 15, 2010

Shared Authority in RI Framework Bill 4: PRODUCERS IMPLEMENT If Legislature decides to create a product stewardship program, producers are responsible for establishing and financing it. 1: RIRRC REVIEWS AND PRIORITIZES RIRCC reviews existing product stewardship programs and prioritizes need 2: RIRRC PREPARES REPORT WITH STAKEHOLDER INPUT RIRRC prepares report to Legislature that includes state of current programs, needs, and recommendations, including draft legislation if necessary. Stakeholders provide comments that RIRRC includes in report. 3: LEGISLATURE REVIEWS AND POTENTIALLY DESIGNATES The Legislature’s standing committees review RIRRC’s report and have authority to report out legislation to refine existing programs or create a new product stewardship program. 21

Program Financing RI framework bill: Holds producers responsible for “managing and reducing life- cycle impacts.” Allows producers to meet obligations collectively through a stewardship organization Defines “product stewardship program” as: “A program financed without a visible fee at purchase and either managed or provided by producers…” Other framework bills: In addition to above, hold manufacturers responsible for at least some costs of government oversight 22 RI Framework Stakeholder Meeting – April 15, 2010

Planning and Reporting Progress RI framework bill does not address what producers include in plans and reports Other framework approaches: Plans must include:Reports must include: List of producers that will participateQuantity of products collected Anticipated resources requiredProgress toward attaining goals Performance goals and metricsDeviation, if any, from plan Collection infrastructureDescription of education effort Consumer education programsAccounting of financing system How source red/reuse will be achieved Post-collection management operations Public outreach and consultation 23

Performance Goals & Enforcement RI framework bill does not address performance goals and enforcement Other framework approaches: Require producers to include performance goals in plans to agencies Assess performance in terms of “collection rate,” “recovery rate,” or “reuse and recycling rate” Specify performance targets (CA, VT) Call on producers to set “product goals” (CA) Authorize fines on producers who fail to implement plans (MN, VT) or fail to achieve goals (CA) Require 3 rd -party audit of processing and disposal facilities (WA, early version of ME bill) 24 RI Framework Stakeholder Meeting – April 15, 2010

Regional Policy Coordination RI framework bill does not address regional policy coordination Oregon’s framework approach encouraged coordination to achieve regional consistency Product Stewardship Laws and Legislation in New England Product CategoriesRICTMAMENHVT Framework Legislation BillLawBill Auto Switches Law Batteries Law Electronics Law BillLawBill Fluorescent lamps BillLawBill Paint Bill Pharmaceuticals Bill ThermostatsBill Law 25