1. © Product Stewardship Institute, Inc. June 1, 2009 Status of Product Stewardship in the United States Scott Cassel, Executive Director/Founder Product Stewardship Institute, Inc.

2. © Product Stewardship Institute, Inc. June 1, 2009 Steering and Technical Committees 2

3. © Product Stewardship Institute, Inc. June 1, 2009 3 What is the Product Stewardship Institute? Non-Profit, based in Boston, founded in 2000 Membership  45 State governments  Over 100 Local governments  Over 50 Partners ( (Business, Environmental/Organizations) Board of Directors: 7 states, 4 local agencies Multi-stakeholder product stewardship network

4. © Product Stewardship Institute, Inc. June 1, 2009 4 Why was the Product Stewardship Institute Created?  Unified voice State and Local Governments  Fiscal relief for government on waste issues  Objective data for decision-making  Forum for collaboration with industry  Nationally coordinated systems/harmonized regulations

5. © Product Stewardship Institute, Inc. June 1, 2009 PSI Projects  Electronics  Paint  Fluorescent Lamps  Mercury Thermostats  Pharmaceuticals  Medical Sharps  Telephone books  Batteries  Radioactive Devices  Gas Cylinders  Tires  Beverage containers  Packaging  Motor oil  Pesticides

6. © Product Stewardship Institute, Inc. June 1, 2009 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. 6

7. © Product Stewardship Institute, Inc. June 1, 2009 7 Building Capacity for Product Stewardship: Conceptually  “Product stewardship” (paradigm shift)  Unfunded mandate – impacts on local government  Internalize costs of managing products  Producer responsibility within context of shared responsibility  Lifecycle approach (design through end of life)

8. © Product Stewardship Institute, Inc. June 1, 2009 8 Building Capacity for Product Stewardship: State by State

9. © Product Stewardship Institute, Inc. June 1, 2009 PSI State Members – 2004 9

10. © Product Stewardship Institute, Inc. June 1, 2009 PSI State Members – 2009 10

11. © Product Stewardship Institute, Inc. June 1, 2009 11 PSI Principles of Product Stewardship (2001)  Cost internalization  Shared responsibility (manufacturers have greatest role to play – producer responsibility)  Lifecycle costs  Performance goals  Flexibility for producers  Endorsements : ECOS, NWPSC, SWANA, NERC, NAHMMA, PSC (Australia), CRRA, CRA, etc.

12. © Product Stewardship Institute, Inc. June 1, 2009 12 Building Capacity for Product Stewardship: Statute by Statute

13. © Product Stewardship Institute, Inc. June 1, 2009 13 State EPR Laws 2004

14. © Product Stewardship Institute, Inc. June 1, 2009 State EPR Laws 2009

15. © Product Stewardship Institute, Inc. June 1, 2009 15 2009 Product Stewardship Legislation Electronics Thermostats Fluorescent lamps Pharmaceuticals Phone books Paint Medical sharps Framework (CA and OR)

16. © Product Stewardship Institute, Inc. June 1, 2009 16 Building Capacity for Product Stewardship: Council by Council  Northwest  California  Vermont  Texas  Midwest  New York

17. © Product Stewardship Institute, Inc. June 1, 2009 17 Building Capacity for Product Stewardship: Local Government by Local Government

18. StateLocal FY084351 FY0945100 Product Stewardship Institute State & Local Membership – FY08/FY09

19. © Product Stewardship Institute, Inc. June 1, 2009 Results Sought Save money for local government Greater environmental protection 19

20. © Product Stewardship Institute, Inc. June 1, 2009 Results Sought End-of-life management costs included into company’s cost of doing business (may be reflected in product purchase price) Product design changes Cost shift: Gov’t (ratepayers or taxpayers )  mfrs/consumers No advanced recycling fees or end-of-life fees Cover costs of collection, transportation, recycling/disposal Drive cost efficiencies in product end-of-life management 20

21. © Product Stewardship Institute, Inc. June 1, 2009 21 Manufacturers Working with PSI  PAINT: Benjamin Moore, Sherwin Williams, Valspar, NPCA, etc.  ELECTRONICS: Dell, HP, Sony, Panasonic, Sharp, LG Electronics, Consumer Electronics Assoc. (CEA), Information Technology Industry Council (ITI), etc.  THERMOSTATS: Honeywell, White Rodgers, GE, Thermostat Recycling Corp.  FLUORESCENT LAMPS: Osram-Sylvania, Philips, GE, National Electrical Manufacturers Assoc. (NEMA)

22. © Product Stewardship Institute, Inc. June 1, 2009 22 Manufacturers Working with PSI  PHARMACEUTICALS: King, Novo-Nordisk, Sanofi-Aventis, Pfizer, Astrazeneca, GlaxoSmithKline, Roche, etc.  MEDICAL SHARPS: Becton Dickinson, Covidien, UltiMed, Owen Mumford, etc.  PHONE BOOKS: AT&T, Dex, Yellow Pages Assoc., Assoc. of Directory Publishers  GAS CYLINDERS: Worthington Cylinder, Manchester Tank, etc.

23. © Product Stewardship Institute, Inc. June 1, 2009 Manufacturers’ Transformative Process “There is no problem” “Increase government programs” “I’m OK w/visible fee (gov’t made us do it)” “We take responsibility to set up program” “Performance is not my responsibility” 23

24. © Product Stewardship Institute, Inc. June 1, 2009 Framing the Debate You Can’t Pull a Flower to Make it Grow Gilles Goddard, Director General La Société de gestion des huiles usagées (SOGHU) Producer Responsibility Organization for Used Oil Recycling 24

25. © Product Stewardship Institute, Inc. June 1, 2009 Voluntary vs. Legislated Solutions Leverage Political will The Times they are a Changin’ 25

26. © Product Stewardship Institute, Inc. June 1, 2009 Role of Voluntary Systems – Interim steps prior to legislation – Address larger sustainability issues – Allows for industry sector leaders to emerge – Allows industry sector to advance interests if low government priority 26

27. © Product Stewardship Institute, Inc. June 1, 2009 Role of Regulated Systems – Level the playing field (Fair) – Gives authority to agency to enforce against those non-compliant – Gives authority to agency to enhance program – Expresses clear will of government 27

28. © Product Stewardship Institute, Inc. June 1, 2009 PSI Process of Stakeholder Engagement  Research (“you’ve been heard/building trust”)  Interviews/project summary  Action Plan  Meetings  Agreements (“progress is possible”)  Projects (“tangible results”)  Evaluate/adjust program (“we’re not going away”) 28

29. © Product Stewardship Institute, Inc. June 1, 2009 Benefits of Dialogue Better information for all stakeholders Better understanding of stakeholder positions Better understanding of problem, focus, key issues and possible solutions Opportunity for consensus on some/all issues Opportunity for best/sustainable solutions Identification of projects and initiatives that are key to resolving an issue Business opportunities 29

30. © Product Stewardship Institute, Inc. June 1, 2009 30 Basic Challenges  Lack of awareness about problem/solutions  Lack of infrastructure to manage products  Lack of incentives to change behavior  Lack of metrics to measure performance/progress  Lack of funding to address problems

31. © Product Stewardship Institute, Inc. June 1, 2009 31 Key Successes 1.Capacity has been built in the U.S. for Product Stewardship  An educated government (45 states/100 locals as PSI members + many other involved local governments)  A partially educated manufacturing sector (product specific)  Retailers starting to step into their role 2.States beginning to gain experience with PS laws  19 state electronics laws  7 state thermostat laws  States with auto switch laws and battery laws

32. © Product Stewardship Institute, Inc. June 1, 2009 32 Key Successes 3.Increase in product stewardship legislation in 2009 4.Greater national environmental group participation in product stewardship (NRDC, Sierra Club, Clean Water Action) 5.Movement from product-by-product legislation to framework 6.Realizing benefits for local government  Gov’t cost savings (MN: $6 million/yr on paint alone)  Jobs/economic development  GHG emissions reductions  More products/tons of toxics collected (take-back)

33. © Product Stewardship Institute, Inc. June 1, 2009 33 Key Challenges 1.How do we define and measure product stewardship success? 2.What polices will result in greatest product design changes? 3. How can we achieve change quicker, cheaper, and still be sustainable (over time)? 4.What policies will most reduce product lifecycle impacts (vs. solely end-of-life)? 5.What role does chemicals policy play in product stewardship programs?

34. © Product Stewardship Institute, Inc. June 1, 2009 Sustainability by Design by John Ehrenfeld – “Sustainability is the possibility that human and other life will flourish on the planet forever.” – Enhanced appreciation of Being – Not Sustainable Development – Find ways to snap out of our current path Toilet two button flush Prius miles per gallon real-time monitor 34

35. © Product Stewardship Institute, Inc. June 1, 2009 Abraham Isaac Kook Chief Rabbi of Jaffa, Palestine (1904-1919) Chief Rabbi of Jewish Community in Palestine (1918-1935) Introduction by Ben Zion Bokser 35

36. © Product Stewardship Institute, Inc. June 1, 2009 PSI Staff Lisa Gould, Executive Assistant Jennifer Nash, Director – Policy and Programs Sierra Fletcher, Associate – Policy and Programs Gena Folts, Development Associate Bill Honohan, Business Manager David Boucher, Intern Scott Cassel, Executive Director 36

37. © Product Stewardship Institute, Inc. June 1, 2009 37 Current PSI Board of Directors Terms expire on June 30, 2009 State #1: Frank Coolick – formerly with NJ Department of Environmental Protection (Vice President) State #2: Shirley Willd-Wagner – CA Integrated Waste Management Board State #3: Scott Mouw – NC Department of Environment and Natural Resources State #4: Jan Whitworth – OR Department of Environmental Quality Local #1: Mollie Mangerich - Sonoma County Waste Management Agency, CA Local #2: Scott Klag – Metro Regional Government, OR Terms expire on June 30, 2010 State #1: Jack Price – FL Department of Environmental Protection (Treasurer) State #2: Tom Metzner - CT Department of Environmental Protection State #3: Theresa Stiner - IA Department of Natural Resources Local #1: Dave Galvin - King County, WA (President) Local #2: Jen Holliday - Chittenden County, VT (Clerk)

38. © Product Stewardship Institute, Inc. June 1, 2009 38 New PSI Board of Directors July 1, 2009 Terms expire on June 30, 2011 State #1: Resa Dimino – NY Department of Environmental Protection State #2: Ann Pistell – ME Department of Environmental Protection State #3: Scott Mouw – NC Department of Environment and Natural Resources State #4: Becky Jayne – IL Environmental Protection Agency Local #1: Mollie Mangerich - Sonoma County Waste Management Agency, CA Local #2: Scott Klag – Metro Regional Government, OR Terms expire on June 30, 2010 State #1: Jack Price – FL Department of Environmental Protection State #2: Tom Metzner - CT Department of Environmental Protection State #3: Theresa Stiner - IA Department of Natural Resources Local #1: Dave Galvin - King County, WA Local #2: Jen Holliday - Chittenden County, VT