1. Managing Post-Consumer Paint The Paint Product Stewardship Initiative (PPSI)

2. NPCA The National Paint and Coatings Association is a voluntary non-profit association, originally organized in 1888 The National Paint and Coatings Association is a voluntary non-profit association, originally organized in 1888 NPCA represents approximately 300 manufacturers, distributors, and raw material suppliers to the industry NPCA represents approximately 300 manufacturers, distributors, and raw material suppliers to the industry Paint and other Coatings Paint and other Coatings Adhesives Adhesives Sealants Sealants Caulks Caulks Serve as advocate, compliance assistance resource and community liaison Serve as advocate, compliance assistance resource and community liaison Legislative Legislative Regulatory Regulatory Judicial Judicial

3. Background Paint identified as the #1 issue by cost and volume for Household Hazardous Waste Programs Paint identified as the #1 issue by cost and volume for Household Hazardous Waste Programs NPCA worked with individual states on issue for decades NPCA worked with individual states on issue for decades Paint Product Stewardship Initiative formed w/facilitation by Product Stewardship Institute (PSI) Paint Product Stewardship Initiative formed w/facilitation by Product Stewardship Institute (PSI) capable of effectively coordinating multi-stakeholder and multi- state approach to the issue capable of effectively coordinating multi-stakeholder and multi- state approach to the issue NPCA joined PPSI in 2002 NPCA joined PPSI in 2002 Coordinated approach versus state-by-state approach Coordinated approach versus state-by-state approach Provide better information to state and local governments Provide better information to state and local governments Gain better information from non-industry stakeholders Gain better information from non-industry stakeholders Goal was to find a resolution Goal was to find a resolution Status Quo not adequate to address challenge Status Quo not adequate to address challenge

4. Background Cont. NPCA signed 1 st MOU in 2005 outlining dialogue participation and pilot projects NPCA signed 1 st MOU in 2005 outlining dialogue participation and pilot projects Projects address the potential to eliminate or lower leftover paint volume and cost Projects address the potential to eliminate or lower leftover paint volume and cost Projects address data gaps Projects address data gaps NPCA sponsored projects NPCA sponsored projects Reuse Guidance Document Reuse Guidance Document Education Survey/Recommendations Report Education Survey/Recommendations Report HSE White Paper HSE White Paper Lifecycle/Cost Benefit Analysis Report Lifecycle/Cost Benefit Analysis Report New “Paint Wise” Earth 911 website New “Paint Wise” Earth 911 website Lifecycle/Cost Benefit only project not yet complete Lifecycle/Cost Benefit only project not yet complete

5. Background Cont. NPCA signed 2 nd MOU in anticipation of developing a new nationally coordinated system for the management of post-consumer paint NPCA signed 2 nd MOU in anticipation of developing a new nationally coordinated system for the management of post-consumer paint Begin in one state w/pilot and then take to other states Begin in one state w/pilot and then take to other states Key Elements Key Elements Consumer Education Consumer Education No Mandatory Retail Take-Back No Mandatory Retail Take-Back Cost Effective Cost Effective Industry Operated Product Stewardship Organization Industry Operated Product Stewardship Organization Consumer Fee Based Financing Consumer Fee Based Financing

6. Legislation Industry sponsored legislation needed to address anti-trust implications for the financing system and to ensure a level-playing field Industry sponsored legislation needed to address anti-trust implications for the financing system and to ensure a level-playing field Introduced in MN in 2008 and passed both houses, but vetoed by Governor Introduced in MN in 2008 and passed both houses, but vetoed by Governor Reintroduced in MN for 2009 session Reintroduced in MN for 2009 session Also in OR Also in OR Industry sponsored legislation impacted in 2009 by the addition of several state initiated bills Industry sponsored legislation impacted in 2009 by the addition of several state initiated bills Extended Producer Responsibility Framework bills Extended Producer Responsibility Framework bills WA, OR, CA WA, OR, CA Paint Specific bills Paint Specific bills CA CA

7. Status MN – passed both Senate and House and is MN – passed both Senate and House and is Awaiting signature by Governor – May/June Awaiting signature by Governor – May/June OR – passed House Committee and Senate Committee OR – passed House Committee and Senate Committee Awaiting floor votes – June/July Awaiting floor votes – June/July CA – passed one House Committee CA – passed one House Committee In Suspense In Suspense Awaiting amendments Awaiting amendments Sept/Oct Sept/Oct WA – no action on EPR WA – no action on EPR VT – Awaiting 2010 legislative session VT – Awaiting 2010 legislative session

8. Next Steps Implementation in current states Implementation in current states Next States: Next States: Iowa, Florida, North Carolina, Illinois Iowa, Florida, North Carolina, Illinois Based on MOU – subject to change? Based on MOU – subject to change? Questions/Comments? Questions/Comments? Alison Keane 202-462-6272 or akeane@paint.org Alison Keane 202-462-6272 or akeane@paint.org