1. MN Paint Stewardship Project Update Solid Waste Management Coordinating Board Meeting, February 25, 2009

2. MN Waste Paint State of MN 2007 - 609,000 total gallons collected (4.7%) 2006 - 580,500 total gallons collected SWMCB 2007 – 256,000 gallons latex, 118,000 gallons oil 2006 – 247,000 gallons latex, 123,000 gallons oil 57 HHW programs statewide reaching all 87 counties 57 HHW programs statewide reaching all 87 counties 1.3 million gallons total waste annually (EPA) 1.3 million gallons total waste annually (EPA) $4 million – estimate $4 million – estimate

3. Why Product Stewardship? Those who make, sell, use products are directly responsible for all lifecycle impacts, including waste Those who make, sell, use products are directly responsible for all lifecycle impacts, including waste Impacts = cost internalization, vs. externalization (ex, onto government) Impacts = cost internalization, vs. externalization (ex, onto government) Impacts create incentives for sustainable product design, smart purchasing by consumers Impacts create incentives for sustainable product design, smart purchasing by consumers Governments role changing – incentivizing those who create problem to be responsible, more regulatory Governments role changing – incentivizing those who create problem to be responsible, more regulatory

4. The MN Paint Stewardship Bill S.F. No. 447, H.F. No. 569 introduced February 5, 2009 S.F. No. 447, H.F. No. 569 introduced February 5, 2009 Authors – Representative Brita Sailer, Senator John Doll Authors – Representative Brita Sailer, Senator John Doll Core Stakeholders – National Paint & Coatings Association, MN Retailer Association, MPCA, SWMCB Core Stakeholders – National Paint & Coatings Association, MN Retailer Association, MPCA, SWMCB Partnerships for bill language, strategy Partnerships for bill language, strategy

5. MN Paint Bill Elements Waste reduction education Waste reduction education Reuse and recycling Reuse and recycling Cost effective waste management program Cost effective waste management program Internalization of waste management costs into paint price Internalization of waste management costs into paint price Paint Stewardship Organization (PSO) creation Paint Stewardship Organization (PSO) creation State antitrust exemption – only for pilot project State antitrust exemption – only for pilot project Oversight by MPCA Oversight by MPCA Reporting requirements including independent financial audit & costs avoided by government Reporting requirements including independent financial audit & costs avoided by government September 1, 2009 – June 30, 2012 September 1, 2009 – June 30, 2012

6. Senate Environment Committee 2/23/09 Hearing Update Testimonies Commissioner Victoria Reinhardt – county government Hans Hirshfield, Mike Weber – Hirshfields Paint John Segala – Amazon Paint MN Painting and Wallcovering Contractors Association Topics - Double tax, Governments need for financial relief, relief applied to existing unfunded mandates, governments expectation for future tax relief with product stewardship, description of funding mechanism, level playing field, antitrust, pilot project, recycled paint products and Amazons increased capacity Bill passed unanimously by Senate Environment Committee Bill passed unanimously by Senate Environment Committee Next stop – Senate Business, Industry & Jobs Committee Next stop – Senate Business, Industry & Jobs Committee House Environment and other Committees House Environment and other Committees

7. MN Paint Bill Supporters National Paint & Coatings Association National Paint & Coatings Association MN Retailers Association MN Retailers Association MN Dakotas Retail Hardware Association MN Dakotas Retail Hardware Association NW Lumber Association NW Lumber Association Hirshfields Paint Hirshfields Paint Diamond Vogel Paint Diamond Vogel Paint Valspar Paint Valspar Paint Sherwin Williams Paint Sherwin Williams Paint MN Painting and Wallcovering Employers Association MN Painting and Wallcovering Employers Association Amazon Paint Amazon Paint Clean Harbors Clean Harbors MN Solid Waste Administrators Association MN Solid Waste Administrators Association Association of MN Counties Association of MN Counties SWMCB SWMCB Carver County Carver County Others… Others…

8. Next Steps Resolution for Recycled Paint Staff working on draft Staff working on draft All counties adopt All counties adopt 1.Incorporate into building specifications 2.Oversee follow through on projects County HHW Costs Identify specific costs, not estimates Identify specific costs, not estimates Applicable to future product stewardship initiatives Applicable to future product stewardship initiatives