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

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Page 1: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

May 16, 2012

1

By Kathy Frevert, CalRecycle

[email protected], 916-341-6476

www.calrecycle.ca.gov/EPR

Extended Producer Responsibility

in Practice

Page 2: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Typical: Waste is a Local Responsibility

Producers LocalGov’t

Slide Courtesy of California Product Stewardship Council (with modification)

State Gov’t

Page 3: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Extended Producer Responsibility

Producers (brand owners) oversee

Slide Courtesy of California Product Stewardship Council (with modification)

Page 4: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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?

Page 5: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Stewardship Organizations/Mfrs

• Develop plans, fund and implement programs

• Determine financial approach• Report on progress• Adjust plan

Page 6: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

State Government: Ensure Fairness

Oversight – Review and approve stewardship plans– List compliant manufacturers at website– Review annual reports

and check progress– Ability to assess civil penalties

to anyone in violation of anyprovision

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Page 7: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Retailers

• Only sell product that is covered under an approved plan

Page 8: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Presentations cover:

• Carpet• Mercury containing thermostats• Paint

• State and local government perspectives

Page 9: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

Page 10: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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.

Page 11: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

Page 12: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

Page 13: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

Page 14: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

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Page 15: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Key Implementation Dates

15Green = already occurred or is happening

Collect Initial Assessments July 1, 2011, visible on consumer receipt

Develop Regulation Jan. 26, 2012 approved by OAL

SO/Mfrs Submit Plan Sept. 25, 2011, resubmitted Dec. 29, 2011

CR Approves Plan Jan. 17, 2012 conditionally approved

Funds Distributed to Processors

Feb. 6, 2012, Q3, 2011, March 16, 2012, Q4

List of Compliant Mfrs on CR Website

July 1, 2012, and Jan. 1 and July 1 annually thereafter

SO/Mfrs Resubmit Plan Dec 31, 2012

Page 16: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Conditional Plan Approval

16

• 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.

Page 17: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

Page 18: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Results: July – Dec 2011• 183 Million lbs carpet 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)

Page 19: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

Page 20: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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.

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Page 21: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

CalRecycle Carpet Contacts

• Kathy Frevert [email protected]

• Fareed [email protected] (916) 341-6482

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Page 22: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

First CA-EPR LawMercury Thermostat Collection

Act of 2008

Neena Sahasrabudhe

DTSC 22

Page 23: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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Page 24: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

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Page 25: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Manufacturers Were Required

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

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Page 26: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Existing Requirements

• Mercury containing thermostats have

• Sales ban since 2006

• Disposal ban

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Page 27: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

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Page 28: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

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Page 29: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

TRC Collection so far……

Year of Collection 2009 2010 2011

Thermostats 7,542 13,340 18,697

Pounds of mercury 104.82 185.80 255.84

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Page 30: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Compared to SERA* Report

• *Skumatz Economic Research Associates

Collection Year 2009 2010 2011

TRC data(Thermostats collected)

7,542 13,340 18,697

Available for recycling(SERA Estimates)

237,000

233,000 222,000

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Page 31: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

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Page 32: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

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Page 33: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

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Page 34: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Thermostats at National LevelStates with mandated programs- California, Illinois, Iowa, Maine, Montana, NewHampshire, Pennsylvania, Rhode Island and Vermont

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Page 35: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Data for 2011 (Annual Reports)STATE Total Intact

ThermostatsPounds of Mercury

CALIFORNIA 18697 255.84

ILLINOIS 7229 58.53

IOWA 3850 31.63

MAINE 6616 46.36

MONTANA 274 3.46

RHODE ISLAND 1068 10.32

VERMONT 3572 25.37

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Page 36: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Pounds PER CAPITA of Mercury Recovered

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Page 37: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

How to Improve?

• Awareness

• Access to program

• Accountability

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Page 38: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

What May Help?

• Payment

• Participation

• Performance

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Page 39: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Thank you

Contact :

Neena Sahasrabudhe Ph.D.

(916) 324 8660

[email protected]

Page 40: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

California’sPaint Stewardship Law

2012 Used Oil + HHW + WSPPN Training & ConferenceMay 16, 2012

By Cynthia Dunn

Page 41: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

Why Paint?

• Almost 1/3 of the HHW collected through local HHW programs (2011)

• Costs local government millions of $ to manage

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Page 42: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

My Reasons…

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Page 43: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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 covered

under an approved plan• Manufacturers submit annual reports

to CalRecycle 43

Page 44: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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, CUPAs44

Page 45: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

manufacturers45

Page 46: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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 46

Page 47: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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

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Page 48: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

FinancingProposed 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

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Page 49: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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)49

Page 50: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

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 report50

Page 51: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

PaintCareContacts

Marjaneh Zarrehparvar, Executive [email protected], (202) 719-3683

Paul [email protected], (415) 606-3211

www.paintcare.org 51

Page 52: May 16, 2012 1 By Kathy Frevert, CalRecycle Kathy.Frevert@calrecycle.ca.gov, 916-341-6476  Extended Producer Responsibility in

CalRecycleContacts

Emily Wang [email protected] 916-322-2888

Cynthia [email protected] (916) 341-6449

www.calrecycle.ca.gov/EPR/PolicyLaw/Paint.htm 52