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Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

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Page 1: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

Sustainable Financing and Management System for Leftover Paint

PSI Paint Stewardship Dialogue

Washington DC

June 29-30, 2004

Page 2: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

2

Sustainable Financing

Page 3: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

3

Financing Discussion at Boston Meeting

Ideal World Preview of Financing Systems Questions/Open Discussion:

What financing issues do you want addressed in the dialogue?

What additional information do you need for a financing discussion in CA?

Page 4: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

4

Financing Discussion at Sacramento Meeting

Presentation on financing system research Fee-related systems Deposit systems Other financing systems

Can we get the cost of managing leftover paint to zero?

What can be done to contribute to making paint collection and management programs profitable?

Page 5: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

5

Financing Discussion at Sacramento Meeting

At what point do we think it will be profitable to collect and process leftover paint?

Under what scenario might funding be necessary?

What might need to be financed? Attributes of a sustainable financing system

Page 6: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

6

Leftover Paint Management:Future Scenarios

Estimated Current State

Not Collected ReducedSwapped Collected & Managed

4 Year Senario

Not Collected ReducedSwapped Collected & Managed

8 Year Senario

Not Collected ReducedSwapped Collected & Managed

Page 7: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

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Bottom Line

Can Reduce Volume and Cost Somewhat Need to Manage the Rest There are Uncertainties

Volume Cost

Page 8: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

8

Dual Path

Reduce Leftover Paint and Management Costs – Pilot Projects and Initiatives

Begin to Develop Sustainable Financing System to Manage Leftover Paint

Page 9: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

9

Proposal Proceed with pilots/initiatives to reduce

leftover paint management costs (2-3 years).

Delay development of financing system for 18 months.

Page 10: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

10

Proposal Form Third Party Organization (TPO) to

manage pilots/initiatives. Allows for testing potential future management

model

TPO membership comprised primarily of manufacturers with multi-stakeholder advisory panel.

Page 11: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

11

Proposal Develop fund with sole purpose being to run

pilots. Primary source is manufacturers. Possibly supplemented by other funds. TPO manages fund.

Ensures level playing field Fosters flexibility

Pilots/initiatives and TPO are experiments for potential future expansion.

Page 12: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

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Proposal Dialogue group would still need to agree on:

Pilots/initiatives that TPO would manage. Geographic locations of pilots/initiatives. Budgets, staffing plans, and timelines of

pilots/initiatives. Amount of funding needed. Performance metrics and evaluation criteria for

pilots/initiatives – define “success.” Composition of TPO.

Page 13: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

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Proposal TPO has flexibility to manage pilots. TPO could also:

Research uncertainties (cost, volume, extent of infrastructure, etc.)

Test additional pilots

Dialogue group meets every 6 months. Development of financing system resumes after

18 months (prior discussion possible).

Page 14: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

14

Proposal Financing workgroup continues to meet

post-DC meeting to refine proposal for presentation/agreement in Chicago.

Delta/Plus

Page 15: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

15

TPO Examples Rechargeable Battery Recycling Corp. CARE Eco-Peinture Product Care Association Resource Recovery Fund Board

Page 16: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

16

Purpose of Pilot Projects/Initiatives

Test potential to lower leftover paint volume and management costs.

Test possible strategies for nationwide full-scale implementation.

Page 17: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

17

Questions for Group Discussion

What pilot projects/initiatives do we want to fund?

What should be the sources of funding to run the pilot projects?

Generally, how much funding will be needed?

Page 18: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

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Questions for Group Discussion

What should be the performance metrics and evaluation criteria for the pilots/initiatives?

What is a reasonable timeframe for getting results from pilots/initiatives?

What entity is best suited to be the TPO? What should be the governance structure of

TPO?

Page 19: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

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Additional Questions What should be the realm of TPO decision-

making authority? What are the TPO decision-making

protocols? Does TPO report to dialogue group or is it

independent? At what point do we assess performance of

TPO?

Page 20: Sustainable Financing and Management System for Leftover Paint PSI Paint Stewardship Dialogue Washington DC June 29-30, 2004

PSI Paint Product Stewardship Meeting Washington DC June 29-30, 2004

20

Additional Questions What should be the mission of the TPO? What should be the mechanism for the

TPO mission to change over time? How would a TPO work? Who would manage TPO? Does TPO need to be incorporated?