1. April 15 & 16, 20041 Paint Product Stewardship Initiative Issue Discussion

2. Greiner Environmental, Inc. April 15 & 16, 20042 PSI Issue Survey

3. Greiner Environmental, Inc. April 15 & 16, 20043 Issue: Sale of Paint with Recycled Content

4. Greiner Environmental, Inc. April 15 & 16, 20044 Architectural Coatings Demand

5. Greiner Environmental, Inc. April 15 & 16, 20045 The Retail Paint Channel Retail Outlets –owned by manufacturers Independent Dealers –Contractor-oriented dealers (similar to the retail outlets) –hardware stores –decorator centers Mass Merchants –Home Depot, Lowe’s, Wal-Mart, etc.

6. Greiner Environmental, Inc. April 15 & 16, 20046 Channel & Customers Contractors: 65% of sales DIYers: 35% of sales

7. Greiner Environmental, Inc. April 15 & 16, 20047 Paint Sales & Retail Outlets

8. Greiner Environmental, Inc. April 15 & 16, 20048 What is the potential supply of recyclable leftover paint? Assume 35 mil gal of leftover household paint Does not include contractor, manufacturer, dealer miss-tint, private businesses, and public agencies leftovers. Latex Recovery Rate: Amazon – 50%Paint Recycling Company – 80% Metro – 66%Visions – 70%

9. Greiner Environmental, Inc. April 15 & 16, 20049 Kelly Moore Supply –80% of supply from local government –20% contractors, homeowners, & retail consumer returns E-Coat: –minimum 50% (up to 80%) post-consumer paint –7-10 colors Roughly 2% of Kelly-Moore sales

10. Greiner Environmental, Inc. April 15 & 16, 200410 Amazon Environmental, Inc. Consolidated Paint –55 gal drums (earth tones gray & beige) Amazon Select™ –six standard colors – $50 for a 5-gallon container –Markets: contractors and state and local governments. –Dunn-Edwards Paint Company sells AEI’s paint under the brand name “Recover” in Arizona, California, Colorado, Nevada, New Mexico, and Texas.

11. Greiner Environmental, Inc. April 15 & 16, 200411 MetroPaint Paint from Metro Oregon as well as surrounding counties Sell from a storefront at their manufacturing plant in Oregon City and at a few retail paint locations Pricing based on color and customer Product sold in 5 gallon containers

12. Greiner Environmental, Inc. April 15 & 16, 200412

13. Greiner Environmental, Inc. April 15 & 16, 200413 Demand for recycled content paint Highest demand for white Lower demand for non-whites, especially reds, yellows, and other colors. In reality, some recycled paint manufacturers discount products to achieve sales goals.

14. Greiner Environmental, Inc. April 15 & 16, 200414 Government Markets Estimated government market size: 17M gal/yr –vs estimated supply of recycled paint of 26.5 M gal/yr Current Efforts to stimulate government purchase –Standards (e.g., MN) –Contracting mechanisms (e.g., U.S. GSA, CA & MN) –Minimum purchase requirements (e.g., CA) Barriers to government purchase: –Concern over recycled paint quality, –Established relationships between purchasing agents and retailers –Lack of awareness of availability and quality

15. Greiner Environmental, Inc. April 15 & 16, 200415 Painting Contractors Apply 65% of all architectural coatings Barriers –Performance guarantees –Lack of brand names (which customers sometimes require) –Color matching & sheen –Contractor incentives –Contractor or “Professional” Grade Formulations –Excellent application properties –Lower cost raw materials –mid-range performance

16. Greiner Environmental, Inc. April 15 & 16, 200416 Do-It-Yourselfers (DIYers) Purchasing Purchase at mass merchants, independent dealers, and retail outlets. Often the main target of high-recycled content paint. Barriers color matching Sheen poor quality perception.

17. Greiner Environmental, Inc. April 15 & 16, 200417 Export Markets Peinture Récupérée Du Québec – Laurentide Resource Exports 40% of production (both oil & latex) regular customers include Cuba, Haiti, Angola, and Guinea Hotz Environmental Recycles latex and oil-based paint 100% of oil-based paint is exported

18. Greiner Environmental, Inc. April 15 & 16, 200418 Liability Concerns Manufacturers have two main product liability concerns with selling recycled content paint hazards assessment ingredients disclosure on MSDS sheets

19. Greiner Environmental, Inc. April 15 & 16, 200419 Strategies (From Action Plan) 1.Develop government accountability & leadership –Establish purchasing goals, procurement guidelines, and incentive schemes –Develop minimum content recycled paint specifications –Establish purchase directives, tracking and reporting mechanisms

20. Greiner Environmental, Inc. April 15 & 16, 200420 Strategies (From Action Plan) 1.Develop government accountability & leadership (cont.) –Promote demonstration programs, vendor expos, face-to-face events to improve relationships between procurement officials and manufacturers –Review government “green purchasing” specifications –Develop a program for high volume applications (e.g., fences, warehouses, corrections facilities, and storage centers)

21. Greiner Environmental, Inc. April 15 & 16, 200421 Strategies (From Action Plan) 2.Develop a recycled paint standard –ASTM-type standard to provide greater confidence in “recycled paint” –Specify performance characteristics (e.g., hiding power, wear resistance) –Could differentiate interior and exterior applications

22. Greiner Environmental, Inc. April 15 & 16, 200422 Strategies (From Action Plan) 3.Develop a strong brand identity for recycled paint –Logo & certification –Market as “reblended” 4.Address product liability issues –hazard assessment, material safety data sheets, and labels

23. Greiner Environmental, Inc. April 15 & 16, 200423 Issue #6: Paint Manufacturing

24. Greiner Environmental, Inc. April 15 & 16, 200424 Feedstocks & Supply Leftover paint as feedstock in paint manufacturing Uneven supply for various geographic markets

25. Greiner Environmental, Inc. April 15 & 16, 200425 Strategies (From Action Plan) 1.Blend high quality latex with virgin ingredients –Resell high-quality leftover paint to manufacturers for blending with virgin ingredients –Remanufacture own recycled paint into new paint products (e.g., Benjamin Moore) –Do not market resulting product as “recycled- content” paint –Pilot projects to experiment with private-public partnerships aimed at collecting and transporting high quality leftover paint

26. Greiner Environmental, Inc. April 15 & 16, 200426 Strategies (From Action Plan) 2.Develop more paint recycling and reblending capacity –Identify market gaps (e.g., latex recycler in the Northeast) or U.S. oil/alkyd recycler –Provide startup capital – via grants, low- interest loans or other incentives – for new recycled paint manufacturing capacity

27. Greiner Environmental, Inc. April 15 & 16, 200427 Issue #7: Non-Paint Uses

28. Greiner Environmental, Inc. April 15 & 16, 200428 Candidates & Markets for Non-Paint Uses of Leftover Paint What types of paint cannot be readily recycled into paint? – Partially solidified paints (latex & oil) – Paints contaminated with mildew or bacterial growth (latex) – Non-white paints (latex & alkyd) What markets are there for this material? – Fuel Blending (oil) – Concrete specialty concrete, roofing materials, caulking compounds (latex) – Alternative daily landfill cover (latex)

29. Greiner Environmental, Inc. April 15 & 16, 200429 What Fraction Cannot Be Recycled into Paint? Assume 35 mil gal of leftover household paint Does not include contractor, manufacturer, dealer miss-tint, private businesses, and public agencies leftovers.

30. Greiner Environmental, Inc. April 15 & 16, 200430 Non-Paint Uses Need for research & innovations for new technology Weak market, over supply

31. Greiner Environmental, Inc. April 15 & 16, 200431 Strategies (From Action Plan) 1.Develop other markets for leftover latex paint Pigmenting plastic – Rutgers University research Alternative Landfill Daily Cover RFP on research & innovation for reuse 2.Develop other markets for leftover oil- based paint Most oil is sent for fuel blending Research other alternatives