1. Business Plan For Recycled Paint Workgroup June 29 and 30, 2004 Washington D.C.

2. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 2 Team Members Heidi Sanborn, Facilitator PSI Scott Cassel, PSI Lorraine Segala, Amazon Environmental Kathy Marsh, CIWMB Roberta Kunisaki, CIWMB Dave Darling, NPCA Dan Burgoyne, CA DGS Robert Wendoll, Dunn-Edwards Wayne Gjerde, MN Office of Environmental Assistance Walter LeClerc, Kelly Moore Robert Stetson, Kelly Moore Dave Nightingale, WA Dept. of Ecology/Northwest P.S. Council Jim Quinn, Metro Regional Government, OR

3. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 3 Elements of Business Plan Draft Business Plan for Recycled Paint that Makes Product Mainstream 1. Develop performance specifications by application (hiding power, wear resistance). 2. Review composition of recycled paint and propose maximum levels of metals, VOCs, and prohibited materials, and minimum post-consumer content. 3. Develop marketing plan for both latex and oil based paints: Identify possible export markets Develop brand identity Develop model state procurement policy

4. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 4 Group Research Reviewed outline of Business Plan (SBA) Reviewed existing procurement specifications Reviewed composition of recycled paint and VOC limits Reviewed existing markets Call with U.S. EPA and Office of the Federal Environmental Executive (OFEE) regarding procurement

5. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 5 What Have We Learned? Business Plans are for a specific business, not an industry, and include financial data. What we really want is a Recycled Paint Performance and Marketing Plan. There is difference between testing for paint characteristics and setting standards for them. More research needed to determine whether standards necessary to market paint.

6. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 6 What Have We Learned? Recycled paint can also be low in VOCs. Different opinions of VOC limit that should be set for recycled paint. Increasing federal procurement of recycled paint will be a labor intensive marketing project. There may be a different approach needed to market recycled paint to federal and state agencies.

7. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 7 Elements of Recycled Paint Performance and Marketing Plan Proving recycled paint performance. Marketing recycled paint in five major markets: 1. Do-it-yourselfers (DIYers) 2. Government (state and federal) 3. Contractors 4. Export 5. Non-Profits

8. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 8 Key Assumptions of Recycled Paint to be Marketed Marketing latex paint only. Minimum 50% post-consumer recycled content. Products will be top-coat and primer. Products will be interior and exterior.

9. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 9 Key Assumptions of Recycled Paint to be Marketed Products meet certain ASTM or other standards. Branding is important to market recycled paint. Consider all possible markets.

10. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 10 Marketing to DIYers and Contractors Nationally, 60% of latex paint is applied to residences. 2/3 by DIYers 1/3 by Contractors DIYer/Contractor primary motivation is price. Quality is important but specifications are not what homeowners look for. Providing performance testing results and providing testimonials of those who have used it are effective.

11. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 11 Marketing to DIYers/Contractors continued…. Professional labels and brochures convey the impression of quality. Provide information on the recycling process – breeds confidence in product. Highlight attributes of recycled paint. High solids content, versatile, and low VOCs from off-gassing.

12. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 12 Marketing to Government Assuming 5% of latex sales is to govt. and 50% of latex sold to govt. could be recycled paint, market potential is (in gallons/year): 1.5 millionCA govt 220,000 MN govt 290,000 MA govt Total State Market = 12.8 million Total Federal Market = 5.3 million Total Potential Govt. Market = 18 mill

13. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 13 Marketing to State Government Model state procurement policy. Boiler plate contract language that specifies recycled paint. Improve dissemination of government bids for recycled paint. Training of government procurement officials. Training of government contract managers on contract enforcement.

14. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 14 Marketing to State Government Reporting paint purchases by agency annually. How to find recycled paint producers. Inclusion of green procurement (e.g., paint) in job descriptions.

15. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 15 Marketing to Federal Government Thousands of buying points – trend to outsource. Centralized purchasing, enforcement, or tracking is impossible. Dissemination of information across the federal government is difficult. Contractors want to buy paint as they need it at local stores. Even with specs in contracts, GSA is not overseeing contractors – no enforcement. Feds primarily concerned with indoor air quality - buying low VOC paint supercedes buy recycled requirement. Most important way to increase sales to feds is to increase availability at local outlets.

16. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 16 Marketing to Federal Government Suggestions from Fed. Govt. Reps. Call meeting with GSA to discuss 100% acrylic latex requirement, model contract language, enforcement of existing rules. Develop centralized list of sellers of recycled paint by state, region, city. Ensure recycled paint producers put information on websites as to where contractors can buy it. Focus marketing to major GSA regions. Hold meetings with individual agencies. Focus on largest purchasers in federal government (Navy, Army Corp. of Engineers)

17. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 17 Marketing to Export and Non-Profits Exports Some anecdotal information but did not pursue due to lack of resources Determined that large quantities must be available for export to be viable. Non-Profits Could be contacted directly via usual marketing channels Put on-hold due to lack of resources and low volumes.

18. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 18 Branding Why Brand? Consumers need a way to quickly identify recycled paint no matter who makes it. Brand and quality are intertwined. If brand name is recommended, it would be voluntary. Customers have brand loyalty. Possible Brand Names: Renaissance Paint, Tough Paint, Rough & Tough Paint. Possible pilot project – Hold focus groups to determine accurately what name would increase product sales.

19. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 19 Proposed Next Steps Recycled Paint Performance and Marketing Plan Develop annotated table of contents. Develop work plan, timeline, and budget. Determine process for hiring contractor to develop Plan.

20. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 20 Proposed Next Steps Hold meeting with GSA for Federal Paint Procurement Ask about 100% acrylic latex requirement. Ask about model contract/bid language. Ask about specifications on VOCs. Meetings with federal agencies on how to market recycled paint. Develop list of recycled paint manufacturers and post on websites.

21. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 21 Proposed Next Steps Summarize research conducted on state procurement specifications and policies.

22. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 22 Draft Federal Guide for Green Construction Specifications Released for 60-day public comment period http://www.wbdg.org/design/greenspec http://www.wbdg.org/design/greenspec Provides guidance for federal building project managers to meet various mandates as established by statute and Executive Orders, as well as LEED, EPA, and DOE program recommendations.

23. PSI Paint Product Stewardship Dialogue Washington DC July 29-30, 2004 23 Draft Federal Guide “Generally prohibit recycled content for interior paints and primers” (although this is just a guide and unenforceable) “Generally call for use of low VOC paints” Question: Does the Dialogue want to provide comments as a whole or from the business plan subgroup?