Paint Product Stewardship Initiative September 19-20, 2007 Scott Cassel, PSI Executive...

Paint Product Stewardship

Initiative

September 19-20, 2007Scott Cassel, PSI Executive Director/Founder

September 19-20, 2007 Seattle WA

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THANK YOUto our sponsors!

o Philip Services Corporationo Veolia Environmental Services o Eco-Peintureo Amazon Environmental o WA Department of Ecology o National Paint and Coatings Association


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THANK YOUto our meeting coordinators! Dave Nightingale, WA Department of Ecology Leslie Wilson, SWMCB MN Lauren Cole, King County Solid Waste Al Salvi, WA Department of Ecology


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Key Dateso Sept. 2002 – PSI presentation to NPCA Committeeo Sept. 2003 – Completion of Paint Action Plano Sept. 2004 – Completion of 4 meetingso March 15, 2005 – 1st MOU Signedo March 15, 2007 – end of 2-year MOUo March 21, 2007 – NPCA Board Resolutiono April 17-18, 2007 – PPSI Dialogue Meeting (Wash DC)o July 2007 – NPCA Executive Committee Meetingo Sept. 19-20, 2007 – PPSI Dialogue Meeting (Seattle WA)o Oct. 2007 – NPCA Full Board Meeting


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1st MOU Project Portfolio1. Source Reduction Survey/Pilot2. Reuse Manual/Pilot3. Infrastructure Report 4. Recycled Paint Standard5. Recycled Paint Marketing6. Recycled Paint Regulatory Issues - White Paper7. Sustainable financing options8. Lifecycle Assessment and Cost/Benefit Analysis

(LCA/CBA)


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The Purpose of the Projects– Demonstrate the potential to reduce the volume of

leftover paint and the cost of managing leftover paint;

– Increase the use of leftover paint as a resource;– Increase government and private purchase of

products made from leftover paint.


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Meeting Objectives 2nd MOU Related

Finalize 2nd MOU so that remaining issues are resolved within 2 weeks of the meeting

Gain general agreement conceptually on the financing system and include specific elements in the MOU that will be used to guide its development

Include other changes as proposed by EPA and the PPSI Steering Committee


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Meeting Objectives 2nd MOU Related

Become educated on the anti-trust issue and other issues of concern to key stakeholders regarding the preferred financing system.

Agree on timeline for MOU signing Agree on the cost to fully fund the MN Demonstration

Project and how it will be funded prior to implementation of the eco-fee (“proxy funding”).

Agree on PPSI project funding and delineate roles for PSI and others


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Meeting Objectives Determine Composition of new Steering Committee. Determine Composition of Evaluation Committee. Determine Composition of MN Demonstration

Committee (Oversight Committee). Begin work on MN Demonstration Project and establish

clear next steps (e.g., committee meetings, etc.) Set date for next meeting.


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Day 2 Proposed Agenda 9:00 Continue work on 2nd MOU – financing 9:45 Review PPSI Steering Comm Rec’s

Review EPA Rec’d changesNat’l System Elements – Resp. matrix

10:30 Break10:45 MN Demonstration Project

Project ScopePaint Stewardship Organization


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Day 2 Proposed Agenda11:45 MN Demo -- Collection/Mgt Infrastructure 1:00 Lunch 1:45 MN Demonstration Project

Recycled paint marketsEducation/Outreach

2:45 Break 3:00 MN Demo – Evaluation Committee


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Day 2 Proposed Agenda3:30 PPSI Tasks, Roles, and Budget

Funding PSI after Seattle mtg (Oct-Dec)Funding MN Demo Project TasksProxy Funding – next stepsEco-fee Financing – next stepsProcess for finalizing MOU

4:45 Schedule next meeting – date, location5:00 Adjourn


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2nd MOU – Missing Elements You Need Added For Your Signature Agree to jointly pursue minimal back-drop

state legislation model to be implemented first in MN. The intent of the legislation is to level playing field, address anti-trust issues, ensure manufacturers and retailers have opportunity for cost reimbursement from consumers, and allow for maximum flexibility in manufacturer-retailer relationship.


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2nd MOU – Missing Elements You Need Added For Your Signature Agree to use the state legislative model to

jointly pursue a national legislative framework that ensures national consistency among states in their management of post-consumer paint.


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2nd MOU – Missing Elements You Need Added For Your Signature Agree to implement an eco-fee financing

system in MN that contains the following elements:Payment into PSO by entity according to

the distribution channel – manufacturer brand owner 1st distribution into state 1st sale in stateretailer


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2nd MOU – Missing Elements You Need Added For Your Signature Agree to implement an eco-fee financing system in

MN that contains the following elements: Registration by responsible entity with MPCA as

seller of paint Agreement by retailers not to sell paint from non-

registrants Agreement to enforce against non-registrants by

MPCA


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2nd MOU – Missing Elements You Need Added For Your Signature Agree to implement an eco-fee financing

system in MN that contains the following elements:Eco-fee is either visible or invisible, at the

discretion of manufacturers and retailersPSO determines for itself how it will finance

the plan submitted to the government.


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2nd MOU – Missing Elements You Need Added For Your Signature Agree to manufacturer-provided “proxy”

funding starting January 1, 2008, until the eco-fee financing system, established by state legislation, is in place no later than January 1, 2009. Proxy funding will be reimbursed through the eco-fee financing system.


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2nd MOU – Missing Elements You Need Added For Your Signature Proxy funding and eco-fee will cover the costs

of PPSI project tasks over the term of the MOU, the MN Demonstration Project, and PSO start-up/operations and roll-out to other states.


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MOU Revisions


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2nd Paint MOU Timeline July 12 PPSI Draft MOU sent for PPSI staff level review July 26 PPSI staff level comments due to PSI Aug. 2 Draft MOU sent for Legal and Management Review Aug. 23 Draft Final MOU sent for PPSI staff level confirmation Sept. 6 Final Signature Copy available - start gathering sign’s Sept. 19-20 PPSI meeting in Seattle WA October 31 Signature Target Date (after NPCA Board mtg) November 1 Start of 2nd MOU


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Key Dateso November 1, 2007 – 2nd MOU Effective Dateo July - December 2007 – Design the Demonstration Project o January 1, 2008 – Finalize performance goals for the

Demonstration Project, including education, source reduction, reuse, collection, and recycling markets

o January 2008 – Begin implementation of Demonstration Project using “proxy” funds until the eco-fee financing system is implemented.


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Key Dateso July 1, 2008 – Implement eco-fee financing system.o October 2008 - March 2009 – Evaluate the

Demonstration Projecto January 2009 – roll out to other states begins.o January 31, 2009 – resolve key roll-out items: PSO

governance, performance goals for national system o November 1, 2010 – 2nd MOU ends


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Paint Financing System MOU Revision

January 1, 2008 – Begin implementation of MN Demonstration Project using “proxy” funds until the eco-fee financing system is implemented.

July 1, 2008 – Implement eco-fee financing system Definitions Needed:

“Proxy” funds Eco-fee financing system


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Paint Financing System


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Paint Financing System Canadian paint management systems: focus on British

Columbia Mark Kurschner, Product Care

Quebec Paint Management System Pierre Landry, Paint Recycling Company Mario Clermont, Laurentide Susan Petersen, ICI Paints

Choosing a system for the MN Demonstration Project Next Steps


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Paint Financing System Key Elements

Brand owner (name on paint can) pays eco-fee into PSO.

Eco-fee is either visible or invisible, at the discretion of manufacturers and retailers

PSO is contracted by the brand owners to provide collection, recycling, and disposal services.

TPO determines for itself how it will finance the plan submitted to the government.


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When manufacturers sell paint to retailers, they are permitted to ask retailers to pay them for the paint and for an amount equivalent to the fee they pay to their TPO. They can also ask the retailer to show this amount on the sales receipt provided to the customer.


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Scope of products accepted will include consumer paints, varnishes, stains and aerosols for home and commercial use. Empty containers are accepted for recycling. Products that are excluded from the program are marine anti-fouling paints, specialty industrial coatings, such as two-part paints, and non-aerosol craft and automotive paints.


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The brand owners are required by state legislation to do the following:

Submit a plan for review and approval to the state agency that addresses the following:

Provide educational materials to retailers and other collection locations.

Etc.


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PSI Proposed 3-year Paint Workplan Budget

Project Funded Amount

Amount Spent

Amount remaining

Paint Dialogue $170,063 $169,558 $505Paint 2 - Source Reduction Survey $9,360 $10,080 ($720)Paint 3 - Reuse $9,360 $10,725 ($1,365)Paint 4/5 - Infrastructure $28,500 $29,105 ($605)Paint 6 - Marketing Recycled Paint $23,097 $23,097 $0Paint 8 - Recycled Paint Certification $80,717 $66,800 $13,917Paint 9 - Health, Safety Env'l Regulations $4,320 $5,850 ($1,530)Paint 10 - Financing $10,500 $10,500 $0Paint 11 - Lifecycle $44,410 $42,600 $1,810

Total $380,327 $368,315 $16,232

All PSI Paint Projects – Budget Summaries through September 15, 2007


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PSI Proposed Workplan Budget PSI submits to a full financial audit each year PSI staff keep detailed invoices by project task PSI will provide quarterly budget updates Proposed 3-year PSI budget under current

assumptions: $287,960 Recommend setting aside 20% additional

funds for unforeseen initiatives


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PSI Proposed Workplan Budget What group should be on conference calls to

finalize MOU? New PPSI MOU Committee? PPSI Steering Committee? Full PPSI Dialogue Group?

How many calls will the group need to finalize the MOU (3 calls)?


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PSI Proposed Workplan Budget Do you want to continue with Steering Committee? Purpose:

Prepare items for full PPSI dialogue decision Decide routine administrative issues Acts as working group for feedback

Should the Steering Committee continue, change, or end?

How often do you want to meet (4x/yr)?


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PSI Proposed Workplan Budget Current Composition

NPCA staff 4 manufacturers (Dunn-Edwards, Valspar, ICI,

Sherwin Williams) 3 state government (CA, WA, FL) 3 local government (SWMCB MN, Metro OR) 1 federal government (U.S. EPA) 1 recycler (Amazon) 1 retailer (Lowe’s)

Additions: Chittenden County VT, MPCA


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PSI Proposed Workplan Budget PPSI Dialogue Meetings

How often do you want to meet (2x/yr)? Do you want 1 or 2 PSI staff?

Considerations if 2 staff (Scott, Susan) Extra cost per meeting for Susan: $5,800 Assistance at meeting to take notes, give

presentations, and facilitation. Backup for Scott; able to fill in if necessary. Knowledgeable about project if needed to assist with

committees and other PPSI tasks.


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PSI Proposed Workplan Budget Considerations if 1 staff

Extra cost per meeting for on-site note-taker: $1,500

Need to find person with skills and availability at each meeting location.


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PSI Proposed Workplan Budget How do you want to keep the wider PPSI stakeholder

group informed of all PPSI committee and other work? Includes daily database updates of PPSI

stakeholder dialogue group, wider paint group, and each committee for which PSI is responsible.

Monthly PPSI email updates? Quarterly full PPSI conference calls?


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PSI Proposed Workplan Budget Demonstration/Oversight Committee

What level of participation do you want PSI to play in Demonstration/Oversight Committee?

Assume significant assistance from PPSI participants Coordinate and facilitate calls, participate on calls,

and advise on technical documents? Participate on calls and advise on technical documents?

(not coordinating and facilitating calls, not maintaining contact database)

Participate on calls only? No involvement


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PSI Proposed Workplan Budget Demonstration/Oversight Committee

How long do you want assistance? 6 months – 2 calls per month (until

March 2008) 1 year – 1 call per month (until March

2009, end of evaluation period)


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PSI Proposed Workplan Budget Program Evaluation Committee

What level of participation do you want PSI to play in Program Evaluation Committee?

Assume significant assistance from PPSI participants Coordinate and facilitate calls, participate on calls,

and advise on technical documents? Participate on calls and advise on technical documents?

(not coordinating and facilitating calls, not maintaining contact database)



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PSI Proposed Workplan Budget Program Evaluation Committee

How long do you want assistance? 6 months – 2 calls per month (October

2007 – March 2008) 1 year – 1 call per month (April 2008 –

March 2009, end of evaluation period)


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PSI Proposed Workplan Budget National Roll-out Committee

What level of participation do you want PSI to play in National Roll-out Committee?

Coordinate and facilitate calls, participate on calls, and advise on technical documents?

Participate on calls and advise on technical documents? (not coordinating and facilitating calls, not maintaining contact database)



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PSI Proposed Workplan Budget National Roll-out Committee

How long do you want assistance? 6 months – 2 calls per month (October

2008 – March 2009) 1 ½ years – 1 call per month (April 2009

– November 2010, end of 2nd MOU period)


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PSI Proposed Workplan Budget Do you want to have contingency funds to hire PSI or

other contractors for additional projects? Source reduction pilot/kiosk??? Curbside collection pilot??? Retail collection

pilot??? Collections at fire stations??? Pilot to collect plastic and steel containers???

Paint Product Stewardship Initiative September 19-20, 2007 Scott Cassel, PSI Executive...

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