National Product Stewardship Forum San Francisco; May 30 Industry Product Stewardship in British Columbia Neil Hastie, President & CEO Encorp Pacific (Canada)

2 OUTLINE 1. Encorp Pacific (Canada) 2. Product Stewardship in Canada 3. “Industry” Product Stewardship in BC 4. Product Stewardship Corporation 5. Q & A

3 Encorp Pacific (Canada) 1. Product Stewardship Corporation 2. Industry Organization 3. Not for Profit 4. Operate private depot collection network  $100 Million  Staff of 25  Outsource all Logistics  170 Return It™ Centres  Recover 75% beverage containers  All products including milk  E-Waste (cpu and display devices)

4 Product Stewardship Defined 1. A management system based on industry and consumers taking life-cycle responsibility for the products they produce and use 2. Also known as EPR “Extended Producer Responsibility”

5 Stewardship/EPR is Here in Canada 1. Scale:$400 million (est.) 2. Material Specific: Beverage Containers Curbside and Deposit Tires Batteries Paint Household Hazardous Waste Used Oil, Containers, Filters Used Pharmaceuticals Electronics-*new* Consumer packaging and printed papers-*new*

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7 Always Rough Waters for EPR 1. Opposition from Producers 2. Local and Regional Politics 3. Who pays ? 4. Vested interests in MSW

8 Producer’s View of Risk 1. Government Bureaucracy OR 2. Competitive Disadvantage OR 3. Unsustainable Funding OR 4. Vested Interests

9 Advocates View of Opportunity 1. Polluter Pay 2. Upload costs to industry and consumers 3. Relieve local government of costs 4. Stimulate design for Environment 5. Better Performance

10 Regulators View of Effectiveness 1. Ease of implementation 2. Adaptive to market changes 3. Apolitical 4. Non-bureaucratic 5. Results based

11 Stewardship Programs in British Columbia 1. Tires Batteries Used Oil Paint Household Hazardous Waste Beverage Containers-1970/ Used Pharmaceuticals Electronics General Packaging and Printed Paper Vehicles at End of Life -200?

12 ReturnIt™ DEPOT Beverage Containers Paint HHW & E-Waste BLUE BOX/RDO Printed Papers Packaging Newsprint RETAIL Tires Batteries Pharmaceuticals Used Oil, Filters CONSUMER

13 Tires $5 Battery $3 Paint $1 POP $.12 Solvent $2 Oil $5 TV $25 CPU $10 WALMART

14 Paradigm Shift in BC 1. Government regulates does not operate nor prescribe 2. Principles and outcome based regulation 3. Industry establishes & operates diversion programs 4. Financed via visible consumer advanced disposal fees

15 Principles for Product Stewardship 1. Producer-User Responsibility 2. Level Playing Field 3. Results Based 4. Transparency & Accountability Product ProductionThrough the Product’s End of Life 1. Ensure healthy and safe communities 2. But don’t dictate how to build a product 1. Require a producer-driven plan and public annual report 2. Ensure compliance 3. But don’t set fees or dictate procedures

16 Stakeholder Universe Stewardship Corporation Community Leaders Brandowners Regulators Consumers Recycling Contractors

17 Roles & Responsibilities The Public Provincial Government Local Governments municipalities and regional districts Non-Government Organizations environmental and consumer Government and Non-Profit Sector Not-for-profit Corporate Sector Encorp Pacific Product Stewardship Corporation Retailers Brand Owners For-profit Corporate Sector Private Sector Recycling Industry – depots, processors, transporters and recyclers

18 Hobson’s Choice for Producers Brand Supremacy Commercial Confidentiality Self Reliance Lobby for Self Interests Corporate Culture for Producers Organizing Principles for Stewardship Corporation All Products are Generic Detailed Sales Data provided Success through a Co-operative Delegate Interests

19 Striking the Balance 1. Key Principles : Governance Standards No Cross Subsidy Transparency & Accountability Stakeholder Consultation Continuous Improvement 2. Government Quid Pro Quo Out of Board Room and Bank Account Outcome based Regulation

20 Can Industry be Trusted?-YES! PrinciplesPerformance

21 Q & A