Paint Product Stewardship Initiative

1. Paint Product Stewardship Initiative Issue Discussion

2. PSI Issue Survey

3. Issue: Sale of Paint with Recycled Content

4. Architectural Coatings Demand

5. 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. Channel & Customers Contractors: 65% of sales DIYers: 35% of sales

7. Paint Sales & Retail Outlets

8. 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. 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. 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. 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

13. 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. Government Markets • Estimated government market size: 17M gal/yr • vs estimated supply of recycled paint of 26.5 M gal/yr • CurrentEfforts 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. 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. 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. 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. Liability Concerns Manufacturers have two main product liability concerns with selling recycled content paint • hazards assessment • ingredients disclosure on MSDS sheets

19. Strategies (From Action Plan) • 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. Strategies (From Action Plan) • 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. 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. Strategies (From Action Plan) • Develop a strong brand identity for recycled paint • Logo & certification • Market as “reblended” • Address product liability issues • hazard assessment, material safety data sheets, and labels

23. Issue #6: Paint Manufacturing

24. Feedstocks & Supply • Leftover paint as feedstock in paint manufacturing • Uneven supply for various geographic markets

25. Strategies (From Action Plan) • 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. Strategies (From Action Plan) • 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. Issue #7: Non-Paint Uses

28. 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. 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. Non-Paint Uses • Need for research & innovations for new technology • Weak market, over supply

31. Strategies (From Action Plan) • Develop other markets for leftover latex paint • Pigmenting plastic – Rutgers University research • Alternative Landfill Daily Cover • RFP on research & innovation for reuse • Develop other markets for leftover oil-based paint • Most oil is sent for fuel blending • Research other alternatives