Coordinating Sustainable Management of Post-Consumer Paint: NPCA’s Strategic Approach

1. Managing Post-Consumer Paint Alison Keane, Counsel Government Affairs National Paint and Coatings Association

2. NPCA • 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 • Paint and other Coatings • Adhesives • Sealants • Caulks • Serve as advocate, compliance assistance resource and community liaison • Legislative • Regulatory • Judicial

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

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

5. March 2007 Resolution • Building off 1st MOU NPCA’s Board approved a resolution in March 2007 to: • To continue participation in the PPSI • Enter into a new MOU (1st expired March 2007) • Begin development of a new nationally coordinated system for the management of post-consumer waste paint • Key Elements • Consumer Education • No Mandatory Retail Take-Back • Cost Effective • Industry Operated Product Stewardship Organization • Consumer Fee Based Financing • Begin w/Pilot Project

6. New MOU • Outlines continued participation in the PPSI • Pilot Project in the State of Minnesota in 2008 with systematic roll-out to other critical states • California in 2010 • Consumer-based cost recovery system for financing • Fee passed on to consumer through retailer • Industry-run Product Stewardship Organization • No Mandatory Retail Take Back • Provision for legislation/regulation to address potential anti-trust and fairness issues

7. Up-Front Funding • NPCA has agreed to provide funding for the design of the PSO • Implementation will not be undertaken without sustainable financing system • NPCA has agreed to provide funding for the design of the MN project: • MN Collection/Disposal Business Plan • Education/Marketing Campaign Proposal • NPCA has committed funding for PSI (shared w/Government Groups) • NPCA has committed funding for completion of LCA/CBA of paint disposal methods

8. MN Demonstration Project • Contracted with Product Care for assistance with MN Demonstration Project • Canadian non-profit industry Product Stewardship Organization • Established Programs • British Columbia • Nova Scotia • Saskatchewan • Pending Programs • Manitoba • Alberta

9. MN Demonstration Project Cont. • PSO design • Governance • Administration • Risk Management • MN Business Plan • Capital Requirements • Budget • Collection Systems (Current and New) • Processing methods (Reuse, Recycling, Disposal) • Performance Measurements • Stakeholder Reporting

10. MN Demonstration Project Cont. • Will contract with Marketing firm for Education/Outreach • Label Changes • Retail Displays • Reactivated Website • PSA’s • Contracted with ERG (Consulting Firm) for Completion of LCA/CBA • Comparison of post-consumer paint management methods

11. Sustainable Financing • 2nd MOU and Nationally Coordinated System contingent on sustainable financing system • Model is successful Canadian paint programs • Producers and/or Retailers pay fee into PSO based on sales of paint and pass this cost to consumers through visible or invisible fee • Utilizes shared responsibility approach • Paint is not an inherent waste product • Latex paint is not a hazardous waste

12. Retail Participation • Key component of sustainable financing system is retail participation • NPCA, PSI, PPSI participants working with retail partners now to educate and garner support • Post-consumer paint issue • Canadian paint product stewardship programs • Must partner with retail to reach consumer • Fee • Education/Outreach • Legislation may be necessary to address level playing field and potential anti-trust issue

13. Next Steps • Signature on MOU is first step – much more work to be done to accomplish ultimate goal! • Continue discussions with Retail Industry to come up with an agreement on a consumer based sustainable financing system • Establish framework for PSO • Design MN Demonstration Project • Complete LCA/CBA • All to be coordinated through the PPSI stakeholder group