A Comprehensive A Comprehensive Product Stewardship ApproachProduct Stewardship Approach

Options for Rhode IslandApril 15, 2010

Scott Cassel, Executive Director/FounderProduct Stewardship Institute, Inc.

Meeting Purpose

•GOAL: Develop recommendations to RI DEM (General Assembly) on framework policy

•Develop common understanding of product stewardship and its application in RI

•Develop common understanding about framework legislation in other US states

•Discuss policy options and preferences for Rhode Island

RI Framework Stakeholder Meeting – April 15, 2010 2

Post-Meeting Action

•PSI to develop meeting summary • Includes recommendations• Becomes part of revised framework study• Stakeholder review of revised study• PSI submits final study to RI DEM

RI Framework Stakeholder Meeting – April 15, 2010 3

What is product

stewardship?

“Product Stewardship" is a principle that directs all those involved in the life cycle of a product to take shared responsibility for reducing the health and environmental impacts that result from the production, use, and end-of-life management of the product.

4RI Framework Stakeholder Meeting – April 15,

2010

Principles of Product Stewardship

Cost internalization Shared responsibilityomanufacturers have greatest

role to play Lifecycle costs Performance goals Flexibility for producers

Endorsements : NLC, ECOS, SWANA, RPA, NWPSC, NERC, NAHMMA, GPSC (Australia), CRRA, CRA, etc.

Basic building blocks of product stewardship programs

Developed by PSI in 2001

5RI Framework Stakeholder Meeting – April 15,

2010

Product design changesGreater environmental protection• Reduce release of toxic substances in mfr, use, disposal• Resource recovery (source reduction, reuse, recycling)• Reduce GHG emissions

Environmental Benefits of Product Stewardship

6RI Framework Stakeholder Meeting – April 15,

2010

Economic Benefits of Product Stewardship

Direct cost savings

As manufacturers take on costs cities and towns are now paying to collect,

transport, and recycle used products

Potential job creation

As recycling creates 10 times more jobsthan disposal

Expanded service

As consumers enjoy convenient recycling for more products

7RI Framework Stakeholder Meeting – April 15,

2010

Potential Benefits for Rhode Island

• Electronics $2.2 million• Paint $2.1 million• Pesticides $1.3 million• Batteries (primary) $843,000• Batteries (secondary) $253,000• Medical sharps (home) $674,000• Fluorescent lamps (household) $295,000• Thermostats (mercury) $158,000• Phone books $137,000Total Maximum Benefits for RI = $8.0 million/yr*Based on a state population of 1,053,209 (U.S. Census 2009 estimate)

8RI Framework Stakeholder Meeting – April 15,

2010

State EPR Laws 2004

9

State EPR Laws 2010

10

Emergence of Product Stewardship in the US

31 states have a product stewardship law

Laws cover 7 products: Auto switches Batteries Electronics Fluorescent lamps Mercury thermostats Paint Pesticide containers

Numerous bills introduced during 2010 legislative session

11RI Framework Stakeholder Meeting – April 15, 2010

* New York City has also passed a product stewardship electronics law. CA was the first state to pass an electronics law, but it is based

on an advanced recycling fee.

Product No.  of Laws States with Product

Stewardship Law

Electronics 18* CT, HI, IL, IN, ME, MD, MI, MN,

MO, NJ, OK, OR, RI, TX, VA, WA,

WV, WI

Auto Switches 13 AR, IL, IN, IA, ME, MD, MA, NJ, NC,

RI, SC, UT, VT

Batteries 7 FL, IA, ME, MD, MN, NJ, VT

Thermostats (mercury) 7 CA, IA, ME, MT, NH, PA, VT

Fluorescent Lamps 2 ME, WA

Paint 1 OR

Pesticide Containers 1 CA

Framework 1 ME

Common Features of Product Stewardship Laws Leads to

Comprehensive or “Framework” Approach

• Framework builds on states’ successful experience with stewardship of individual products. It defines an overall policy structure that can be applied to an array of products

• Framework has been enacted in ME and introduced in CA, MN, OR, RI, VT, and WA

13RI Framework Stakeholder Meeting – April 15,

2010

Familiarity with Framework Concepts

•Many product stewardship laws include elements contained in state framework legislation

•State thermostat bills – for example:–Producer responsibility–Producer plan submitted to state agency–State agency reports to state legislature–Recycling requirement–Performance goals–State agency enforcement and oversight

14RI Framework Stakeholder Meeting – April 15,

2010

Framework PolicyDifferent Approaches

• Framework policies in place in British Columbia, Manitoba, and Ontario.

• Framework policy will be rolled out in all other Canadian provinces.

• Framework policy comes in a variety of forms:– WEEE Directive (electronics/electrical equipment)– Household hazardous waste– Groups of products – US Framework approach: process oriented

(common elements)

15RI Framework Stakeholder Meeting – April 15,

2010

Framework Legislation Advantages/Concerns

•Advantages– Streamlines legislative process (e.g., greater

efficiency)– Harmonizes policy in a state (and federally)– Creates more predictable/stable business

environment– Ability to respond rapidly to environmental needs

•Concerns– Framework implies “one size fits all” but each product

is unique– Delegates too much authority to state agency– Framework legislation would make product

stewardship a statewide policy 16

RI Framework Stakeholder Meeting – April 15, 2010

A Comprehensive Approach to A Comprehensive Approach to Product StewardshipProduct Stewardship

Options for Rhode Island

Jennifer Nash, Director of Policy and ProgramsProduct Stewardship Institute, Inc.

17

Framework Legislation Components

1. Criteria for designating products

2. Authority for designating products

3. Program financing

4. Planning and reporting progress

5. Performance goals and enforcement

6. Regional policy coordination

18RI Framework Stakeholder Meeting – April 15,

2010

Criteria for Designating Products

RI framework bill:• Contain toxics that pose environmental or health risk• Potential to increase reuse and recycling• Potential to reduce costs to local governments and taxpayers• Successful stewardship programs in other states or countries• Existing voluntary stewardship programs are not adequate

Other framework bills:•Climate change impacts•Burden product places on existing waste management system•Possibility for new business opportunities or job creation•Include specific products in framework bill (e.g., packaging, etc.)

19RI Framework Stakeholder Meeting – April 15,

2010

Authority to Designate Products

RI framework bill calls for sharing authority between RIRRC and the General Assembly with stakeholder consultation

Other framework approaches:•ME’s law uses same approach as RI, but with ME DEP initiating process

•VT’s bill also calls for Secretary of Environmental Affairs to submit a list of designated products to General Assembly after consultation

20RI Framework Stakeholder Meeting – April 15,

2010

Shared Authority in RI Framework Bill

4: PRODUCERS IMPLEMENT  

If Legislature decides to create a product stewardship program, producers are responsible for establishing and financing it.

1: RIRRC REVIEWS AND PRIORITIZES

RIRCC reviews existing product stewardship programs and prioritizes need

2: RIRRC PREPARES REPORT WITH

STAKEHOLDER INPUTRIRRC prepares report to Legislature that includes state of current programs, needs, and recommendations, including draft legislation if necessary. Stakeholders provide comments that RIRRC includes in report.

3: LEGISLATURE REVIEWS AND POTENTIALLY

DESIGNATES The Legislature’s standing committees review RIRRC’s report and have authority to report out legislation to refine existing programs or create a new product stewardship program. 

21

Program Financing

RI framework bill:• Holds producers responsible for “managing and

reducing life-cycle impacts.” • Allows producers to meet obligations collectively

through a stewardship organization• Defines “product stewardship program” as: “A

program financed without a visible fee at purchase and either managed or provided by producers…”

Other framework bills:•In addition to above, hold manufacturers responsible for at least some costs of government oversight

22RI Framework Stakeholder Meeting – April 15,

2010

Planning and Reporting Progress

RI framework bill does not address what producers include in plans and reports

Other framework approaches:

Plans must include: Reports must include:

•List of producers that will participate

•Quantity of products collected

•Anticipated resources required •Progress toward attaining goals

•Performance goals and metrics •Deviation, if any, from plan

•Collection infrastructure •Description of education effort

•Consumer education programs •Accounting of financing system

•How source red/reuse will be achieved

•Post-collection management operations

•Public outreach and consultation 23

Performance Goals & Enforcement

RI framework bill does not address performance goals and enforcement

Other framework approaches:• Require producers to include performance goals in plans to

agencies• Assess performance in terms of “collection rate,” “recovery

rate,” or “reuse and recycling rate”• Specify performance targets (CA, VT)• Call on producers to set “product goals” (CA)• Authorize fines on producers who fail to implement plans (MN,

VT) or fail to achieve goals (CA)• Require 3rd-party audit of processing and disposal facilities

(WA, early version of ME bill)

24RI Framework Stakeholder Meeting – April 15,

2010

Regional Policy Coordination

RI framework bill does not address regional policy coordinationOregon’s framework approach encouraged coordination to achieve

regional consistency

Product Stewardship Laws and Legislation in New England

Product Categories RI CT MA ME NH VT

Framework Legislation Bill Law Bill

Auto Switches Law Law Law Law

Batteries Law Law

Electronics Law Law Bill Law Bill

Fluorescent lamps Bill Law Bill

Paint Bill Bill

Pharmaceuticals Bill

Thermostats Bill Bill Law Law Law

25