1. Plastics Update-VRA 2012 Presented By: Mylinda Jacobsen

2. Points of Discussion Envision Plastics Commodity Grades-Current Conditions Supply/Demand Rigids/Tubs and Lids/Injection What’s coming in plastics collection/recycling?

4. History  The industry is 23 years old  The first 10 years 1988-1998  Public Pressure, evolution of curbside collection and technical development of recycling Plastics  The Second ten years 1998-2008 consolidation and a lot less mills  Last 3 years- Sustainability, GHG, Carbon Footprint Yeah! Green is in again

5. What got us where we are? Policy Bottle Bills California Recycled Content Florida ADF Oregon Recycled Content Pay as you throw RCRA 1991 Federal mandate to states to have a landfill reduction plan which caused most to create recycling percentage goals. Single Stream

6. Recent Conditions In November 2008 market crashed Market has been recovering and prices have risen Supply/demand Quality issues due to great demand? Material is moving

7. HDPE Color Trend 2008 to present. Source Waste News

8. Natural HDPE Bottles PRICES WERE $.395 last month and NOW $.365 and pressure downward

9. PRICES WERE $.34 and NOW $.27. At Bottom?

10. Other plastics Rigids Tubs and lids Buckets 1-7

11. Today’s Conditions Feedstock is changing (Barriers,PP,labels,fillers,, compostable bottles) Supply is shrinking in 2009(Concentrates/light weighting), though single stream gave it a bump for the last 5 years Export is growing in demand Demand for Recycled is growing due to sustainability Quality of feedstock is diminishing partly due to bad single stream programs and partly due to more demand than supply. New plastic materials are being collected Much Higher Fuel Costs

12. Market Conditions Good News is coming Growth in collection will not keep up with growth in demand,particularly in natural Significant new demand is being fueled by: - Renewed “green” initiatives -Corporate Sustainability Requirements -Technologies that enhance properties of PCR * For example: PRISMA™ and Ecoprime Current New demand opportunities of over 150MMlbs. Annually Product/MarketAnnual lbs mmProduct/MarketAnnual lbs.mm Personal Care34,000Film Bags32,000 Injection10,000Film Wrap6,000 Food Contact12,000Pallets10,000 ASHTO Pipe40,000Lawn & Garden12,000

13. Environmental Considerations 89% of interested “eco friendly” products and 30% actively look for them Information Resources Inc. 2007 More than 75% of US adults show some kind of green motivation. Natural Marketing Institute says that such a percentage makes sustainability a more attractive and imperative option for businesses to engage consumers Food Navigator USA 82% of Consumers Buying Green Despite Battered Economy 2009 National Green Buying research Consumers may be more willing to ditch convenient packaging for greener packaging, while the food itself should include fresh ingredients and deliver health benefits Ipsos Marketing July 09 6/26/2016 www.envisionplastics.com 13 Consumers Prefer Sustainable Solutions

14. 6/26/2016 Reference Source CMAI 14 What’s the next low hanging fruit? Polypropylene is a good place to start It is big volume (NA, 17 billion lbs) and is a safe plastic. Very little post-consumer recovery (ca. 350 million lbs). 2 billion lbs available in easy to recycle short-lived gismos. Prices doubled in 2 yrs, will stay high, so recycling will be profitable.

15. Total World Demand = 48.1 Million Metric Tons World 2010 Polypropylene Demand by End Use

16. Potential End Markets Plastic buckets Plastic pallets Erosion protection Trash carts Back into packaging containers Carrier resin for Master Batch Black

17. FINANCIAL FEESABILITY 1. Can the collectors get enough to cover collecting the additional pounds? 2. Can the MRF cover the sortation, baling, storing costs? 3. Can the Processor economically make a PCR for an end market in comparison to prime resin? If, not at what critical mass can the processor do so.

18. How Can you help? Consider all bottles recycling Education Single or dual stream with the use of carts Pay as you throw programs Support domestic markets Do your homework prior to making changes

19. Resources Go to: www.plasticsrecycling.org www.plasticresource.com www.envisionplastics.com www.plasticsrecycling.org www.plasticresource.com www.envisionplastics.com www.allplasticbottles.org www.epa.gov/payt/