September 26-27, 2005 1

Paint Product Stewardship Initiative

Meeting #5 Portland Oregon

September 26-27, 2005 2

Product Stewardship Institute• Founded in December 2000• Located in Boston MA• Now its own 501c(3)• Coalition/Affiliate Members

• Agency leaders pledge to work with PSI on product stewardship issues

• 31 State members• 28 Local agency members

September 26-27, 2005 3

What is PSI’s Mission?

“…assists state and local government agencies in establishing cooperative agreements with industry and developing other initiatives that reduce the health and environmental impacts from consumer products.”

September 26-27, 2005 4

What is PSI’s Role in the Paint Dialogue?

1. Research/technical competency2. Forum for stakeholder dialogue3. Design and implement pilot projects4. Clearinghouse for paint product stewardship

policies and programs

September 26-27, 2005 5

What is PSI’s Agenda?

“…to promote product stewardship solutions, reduce product impacts, forge

partnerships, and get results.”

September 26-27, 2005 6

PSI’s Agenda Has..1. NO preconceived strategies to reduce product

impacts

2. NO advocacy for one strategy over another

3. NO preconceived notion on how to finance strategies

September 26-27, 2005 7

We Agreed That, In A Dialogue, We..

- Listen and learn from each other

- Explore disagreements

- Deliberate and weigh comments - Have balanced participation- Keep an open mind to the “end game”

September 26-27, 2005 8

We Agreed That In A Dialogue Participants Do Not…

1. Make personal attacks2. Actively block or undermine the group decision

September 26-27, 2005 9

Paint Dialogue Process1. Research (10/02 – 9/03) – 1 year

– Technical Research Document– Paint Stewardship Action Plan

2. Dialogue (10/03 – 9/04) – 1 year – 4 meetings– Numerous workgroup conference calls

3. Project Implementation (4/05 – 9/06) – 18 monthsFinancing & Designing a nationally coordinated paint management system (10/06 – 3/07) – 6 months

September 26-27, 2005 10

During the Dialogue We Got Agreement on…

1. Problem Statement2. Goals3. Key Issues4. Strategies prioritized

September 26-27, 2005 11

Dialogue Group Focused On:

• Post-consumer leftover paint - latex and oil-based

• Retail surplus paint• Not on post-industrial paint waste

September 26-27, 2005 12

The Memorandum of Understanding (MOU)

Was Fully Executed on March 15, 2005

September 26-27, 2005 13

Additionally…The MOU is a first step toward a nationally coordinated leftover paint management system

Highlights Include:

– Recognition of the problem with leftover paint– Inclusion of national waste reduction and

management goals – Definition of participant roles and responsibilities– Inclusion of financing system (if needed)

September 26-27, 2005 14

MOU Continued…• Project Portfolio – 11 projects• $1.2 million• Established multi-stakeholder steering committee to

guide process • Timeframe for resuming financing discussion 18 months• Continue meeting for 2 years• MOU is not legally binding• MOU does not waive any rights or obligations

September 26-27, 2005 15

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.

September 26-27, 2005 16

Project PortfolioFormation of Project Workgroups

• Education - 2 projects (survey and pilot)

• Infrastructure – 3 projects (reuse, model and $)

• Markets – 3 projects (PPSI, Distributor, Recycled Paint Certification)

• Regulatory - White Paper• Lifecycle and Cost/Benefit Analysis• Finance - National financing options

September 26-27, 2005 17

Steering Committee

• Manufacturers – 5 (NPCA 4, Dunn Edwards)• Recyclers – 1 (Amazon)• Retailers – 1 (vacant)• State government – 3 (WA, CA, FL)• Local government – 2 (Metro OR & Sonoma Cty CA)• Federal government –1 (EPA)

September 26-27, 2005 18

Where Are We Now?• MOU signed by 31 participants + endorsed by

35 others outside dialogue• Seven projects have started - $850,000 raised

from manufacturers, recyclers, and government

• Workgroups are convened except for Financing Workgroup which starts in October

September 26-27, 2005 19

What Are The Next Steps ?• Complete initial projects (raise funds for some)• Start last 4 projects• Convene Financing Workgroup• Accepting endorsements of MOU – 35 currently• Accepting technical assistance, workgroups• Accepting funding – can select a specific project

September 26-27, 2005 20

We Have Come A Long Way in a Short Time!

• Increased understanding – all participants• Increased manufacturer and retailer

involvement• New relationships formed• Attitudes have changed – a lot!

September 26-27, 2005 21

MOU Preamble (A.)Product stewardship is a principle that directs all participants involved in the life cycle of a product to take shared responsibility for the impacts to human health and the natural environment that result from the production, use, and end-of-life management of the product. The greater the ability of a party to influence the life cycle impacts of a product, the greater the degree of that party’s responsibility.

September 26-27, 2005 22

MOU IV. Goals and Objectives

A. The overriding goal of the PPSI is to ensure that leftover paint and empty containers will be managed in a manner that is protective of human health and the environment. The primary goal of the dialogue is to develop an agreement that will result in reduced paint waste; the efficient collection, reuse, and recycling of leftover paint; increased markets for products made from leftover paint; and a sustainable financing system to cover any resulting end-of-life management costs for past and future products.

September 26-27, 2005 23

MOU IV. Goals and Objectives

B.While the PPSI Participants reached conclusions on many aspects of leftover paint management, there are important issues and key findings that are unresolved. Therefore, the goal of the PPSI Participants is to promote the development of economically sustainable, flexible, market-based approaches to leftover paint management using a Project Portfolio…to meet the following objectives…..

September 26-27, 2005 24

Project Portfolio Objectives1. To test the potential to reduce or eliminate leftover

paint volume and management costs, and to test possible strategies for nationally coordinated implementation based on the following paint management hierarchy:

• Reduce over-purchasing.• Reseal containers and store properly.• Reuse leftover paint or donate for reuse.• Recycle leftover paint and containers.• Dispose of unusable paint properly.

September 26-27, 2005 25

Project Portfolio Objectives (cont.)2. To increase the resource value of leftover paint

through reuse and recycling;3. To determine viable alternatives to disposal

and resolve any related regulatory barriers; and

4. To research and analyze infrastructure systems for leftover paint management.

September 26-27, 2005 26

Meeting ObjectivesUnderstanding of:1. MOU funding to date – projects (Day 1) and

facilitation (Day 2) 2. Status of project work and budgets (Day 1 and 2)

Agreement on:1. Project next steps2. Funding next steps3. MOU – are we on-target to meet goals and start

financing discussion on October 1, 2006?

September 26-27, 2005 27

Funding the MOU Projects and Ongoing PPSI Facilitation

• Funded $844,790 of $1,194,544 estimated in MOU• Projects: $1,049,360• PSI facilitation: $145,184

• Project #8• Budget: $201,600• Actual: $231,000• Workgroup increased the budget: $29,400

• New Project Budget: $1,078,760

September 26-27, 2005 28

Project Start/End Dates• Project #2: Survey – end date delayed 1 month• All other projects are on schedule.

September 26-27, 2005 29

MOU Project FundingProject Number Project Name Start Date End Date

$ Committeed/

FundedFunds

NeededFunds for

PSIPSI Funds Expended*

% complete under/over budget

1 Leftover Paint Management and Guidance for Consumers TBD 9/30/2006 0 ** 45,360$ -$ -$ 0% n/a2 Public Education Survey and Analysis 6/1/2005 9/30/2005 29,360$ -$ 9,360$ 4,950$ 48% 2% under3 Paint Reuse Primer 5/1/2005 2/28/2006 9,360$ 40,000$ 9,360$ 4,080$ 43% 5% under

4&5 National Infrastructure Model & Cost Analysis 4/1/2005 9/30/2006 96,290$ 107,230$ 23,520$ 10,350$ 44% 17% under6 Market Development Strategy for PPSI TBD 9/30/2006 -$ 81,600$ 21,600$ -$ 0% n/a7 Recycled Paint Marketing Guide for Distributors TBD 9/30/2006 46,000$ 75,600$ 21,600$ -$ 0% n/a8 Recycled Paint Certification System 1/1/2005 9/30/2006 231,000$ -$ 60,500$ 20,100$ 35% 3% under9 Health/Safety/Environmental and Regulatory Issues 5/1/2005 9/30/2005 4,320$ -$ 4,320$ 3,654$ 86% 1% under10 Financing System Research and Model Development 10/10/2005 9/30/2006 27,316$ 9,404$ 36,720$ -$ 0% n/a11 Lifecycle Balance of Costs and Benefits 5/1/2005 9/30/2006 246,560$ 29,360$ 25,920$ 21,330$ ?? > original budget

Total 690,206$ 388,554$ 212,900$ 64,464$ *Funds expended as of 9/23/05

** NPCA paid PSI to write two EPA grants, neither were funded

#8 - Phase 1 & 2 on-budget, phase III/IV listed