May 16, 2012

1. Extended Producer Responsibility in Practice May 16, 2012 • By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476 • www.calrecycle.ca.gov/EPR

2. Typical: Waste is a Local Responsibility State Gov’t Local Gov’t Producers Slide Courtesy of California Product Stewardship Council (with modification)

3. Extended Producer Responsibility Producers (brand owners) oversee Slide Courtesy of California Product Stewardship Council (with modification)

4. Financing • EPR offers sustainable financing • Two types • Cost internalization • Eco fees • Advanced recycling fees ≠ eco-fees • Key point: EPR = private sector management of material recovery programs, including financing Ask: who handles the funds?

5. Stewardship Organizations/Mfrs • Develop plans, fund and implement programs • Determine financial approach • Report on progress • Adjust plan

6. State Government: Ensure Fairness Oversight • Review and approve stewardship plans • List compliant manufacturers at website • Review annual reportsand check progress • Ability to assess civil penalties to anyone in violation of anyprovision

7. Retailers • Only sell product that is covered under an approved plan

8. Presentations cover: • Carpet • Mercury containing thermostats • Paint • State and local government perspectives

9. Why Carpet? Carpet: 3.2 percent of waste by volume in CA (2008) - top 10 item Discarded carpet is a valuable resource! Lack of financing hindered recycling

10. Carpet Recycling (AB 2398) • Signed in 2010, industry supported, builds off national MOU (2002) • Law addresses • goals, financing, enforcement • allows individual or collective programs • CARE is the stewardship organization • Implementation started July 2011 • Submitted plan to CalRecycle, conditionally approved Jan 2012.

11. One of first product stewardship laws Carpet Recycling Overview (AB 2398) • Goals • Goals increase • recycling of postconsumer carpet • diversion of postconsumer carpets from landfills • recyclability of carpets • incentivize the market growth of products made from postconsumer carpet • Goals in stewardship plan approved by state • Plan conditionally approved, goals still under consideration

12. One of first product stewardship laws Carpet Recycling Overview (AB 2398) • Key stakeholders • Carpet America Recovery Effort (CARE) • Manufacturers (Carpet Mills and Entrepreneurs) • Retailers/Distributors • Haulers/Collectors/Processors • Government: CalRecycle and local governments • Organizations: CPSC, RCRC, ESJPA, CAW, others

13. One of first product stewardship laws Carpet Recycling Overview (AB 2398) • Financing • Collect assessment -5¢/sq yd, visible on all receipts (July 2011-2016), about $5 million per yr • CARE distributes funds to • Qualified carpet processors/entities • CalRecycle for oversight and enforcement • Evaluation • Annual report to CalRecycle, independent audits of program financing

14. Carpet Recycling Overview (AB 2398) • Enforcement , may occur if: • Mfr/Stewardship Org doesn’t submit a complete plan or annual report • Retailers sell product not covered under an approved plan • Administrative Civil Penalties • Up to $1,000/day; up to $10,000/day if the violation is intentional, knowing, negligent

15. Key Implementation Dates Green = already occurred or is happening

16. Conditional Plan Approval • Revisit baseline, measurement methodology, and goals after one year of California-specific sales data • Fully implement the rural pilots • All audits performed in accordance with GAGAS • Resubmit Plan by December 31, 2012.

17. Results July – Dec 2011 • 3500 Dealer and Retailer Kits distributed • 80 Carpet Manufacturers Registered for CARE California Carpet Stewardship Plan • $2.5 Million Remitted by Manufacturers • 50 Million square yards of carpet sold or shipped into California, July 1 –December 31, 2011 • 204 people directly employed in carpet recycling

18. Results: July – Dec 2011 • 183 Million lbscarpet discarded in CA landfills • 34 Million lbs Diverted (18%) • 13 Million lbs Recycled (7%) • 16 Collectors and Processors (10 > 2010) • About 8 Processors requested funds • $703,000 distributed to Processors • Processors audited after Q3 2011 • Green design: e.g., Interface push for closed loop recycling (2012)

19. Key lessons learned so far… • Combustion of carpet residues – contentious issue • Must allow time to set up accounting systems • Data for baseline – challenging • Recycling services in rural areas - pilot underway • Flexibility – allow/plan for changing market factors • Need for coaching, e.g., communications between collectors/haulers and processing facilities • Most everything takes more time than expected • Industry recognizes need to increase yields from materials collected -- PET

20. CARE Carpet Contacts • Carpet America Recovery Effort (CARE)730 College Drive, Dalton, Georgia 30720 • Phone: 706-428-2127 • http://carpetrecovery.org/AB2398.php(California Carpet Stewardship) • http://carpetrecovery.org/contact.php(sending in questions) • OK to copy CalRecycle staff on messages.

21. CalRecycle Carpet Contacts • Kathy Frevert Kathy.Frevert@calrecycle.ca.gov 916-341-6476 • FareedFerhut Faridoon.Ferhut@CalRecycle.ca.gov (916) 341-6482

22. First CA-EPR LawMercury Thermostat Collection Act of 2008 NeenaSahasrabudhe DTSC

24. Manufacturer Requirement • Manufacturer or a group of manufacturers operate a program • Provide bins to collection centers/ businesses • Cover recycling process including cost • On April 1,2010 onwards submit a annual report to the Department

25. Manufacturers WereRequired To Submit survey plan and methodology for a survey in March 2009 • To provide statistically valid data on the number of mercury-added thermostats that become waste annually in California • Outreach and education till December 2011 • Provide education and outreach materials to wholesalers, retailers and others • Develop PSA

26. Existing Requirements • Mercury containing thermostats have • Sales ban since 2006 • Disposal ban

27. Who Else Is Responsible? • HVAC** Contractors • Demolishing Contractors • Wholesalers • Retailers • HHWCF/ Collection Business • Home Owners • Any person who handles thermostats ** Heating Ventilation and Air Conditioning

28. How are we doing? Recent Annual Report (2011)- TRC collected • 18,697 intact mercury thermostats and • 255.84 pounds of mercury • Number higher compared to 2010 report

29. TRC Collection so far……

30. Compared to SERA* Report • *SkumatzEconomic Research Associates

31. DTSC Efforts • Outreach since 2008 • Web postings, video, • Published information • Other state departments informed • On field- 2010,2011 • TWO DTSC reports on the study found • Very few wholesalers involved • Inadequate manufacturer outreach and education • Contractors and businesses do not want excess burden

32. DTSC Regulations • Shared previous draft and DTSC listened to all parties during the process • Attempt is made to find aggressive and achievable balance • New draft -April 2012 under internal review

33. What’s New? • Daft regulations use manufacturer survey SERA study • The department may order a manufacturer, or a group of manufacturers operating the program, to revise its program • Department may undertake actions for its compliance • No additional burden on businesses

34. Thermostats at National Level States with mandated programs- California, Illinois, Iowa, Maine, Montana, NewHampshire, Pennsylvania, Rhode Island and Vermont

35. Data for 2011 (Annual Reports)

36. Pounds PER CAPITA of Mercury Recovered

37. How to Improve? • Awareness • Access to program • Accountability

38. What May Help? • Payment • Participation • Performance

39. Thank you Contact : NeenaSahasrabudhe Ph.D. (916) 324 8660 nsahasra@dtsc.ca.gov

40. California’sPaintStewardship Law2012 Used Oil + HHW + WSPPN Training & ConferenceMay 16, 2012By Cynthia Dunn

41. Why Paint? Almost 1/3 of the HHW collected through local HHW programs (2011) Costs local government millions of $ to manage

42. My Reasons…

43. Paint StewardshipLaw (AB1343) Manufacturers design, fund, and implement their program, individually or collectively Manufacturers submit plan to CalRecycle for approval, including assessment to finance program Retailers only sell products coveredunder an approved plan Manufacturers submit annual reportsto CalRecycle

44. Key Stakeholders PaintCare/Manufacturers Retailers Service Providers Haulers/Collectors/Processors Government: Local governments & CalRecycle Other Organizations/Entities:E.g., ACA, CPSC, RCRC, ESJPA, CAW, DTSC, CUPAs

45. CalRecycle’sResponsibilities under AB 1343 Review and approve stewardship plans Post list of compliant manufacturers on website Review annual reports Ensure a level playing field among manufacturers

46. Goals Determined by manufacturers, can be revised by manufacturers, but must: Reduce the generation of postconsumer architectural paint; Promote the reuse of postconsumer architectural paint; and Properly manage postconsumer architectural paint at end-of-life

47. Financing Program financed through an assessment on price of paint Manufacturers collect assessment from retailers and distributors who recover the assessment from consumers Expect about $25 – 35 million to be collected annually by manufacturers

48. Financing Proposed Assessment: ½ pint or less $0.00 > ½ pint to 1 quart $0.35 > 1 quart to 1 gallon $0.75 > 1 gal to 5 gal $1.60

49. Activitiesto-Date PaintCare Preparing for program roll-out Assessing infrastructure Establishing contracts with service providers Developing public relations campaign CalRecycle Reviewing plan and CEQA impacts Finalizing regulations to implement its responsibilities (est. final in early June 2012)

50. Key UpcomingDates June 2012 – CalRecycle regulations become effective July 1 2012 – CalRecycle approves/disapproves plan October 1, 2012 – PaintCare implements approved plan September 1, 2013 – PaintCare submits annual report