Increasing Carpet Recovery: Using EPR for Recycling Carpet & More June 4, 2015

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1 Increasing Carpet Recovery: Using EPR for Recycling Carpet & More June 4, 2015

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3 CPSC Board and Organization 14 Member Board: 5 of 14 are private sector members Seat open Could be local government or private sector application process Heidi@calpsc.org Sean Bigley, Roseville Chair Doug Kobold, Sacramento Chair County, Vice-Chair Patty Garbarino, Marin Sanitary Service Secretary Gretchen Olsen, Stockton Treasurer

4 CPSC Mission Goals of EPR To shift California s product waste management system from one focused on government funded and ratepayer financed waste diversion to one that relies on producer responsibility in order to reduce public costs and drive improvements in product design that promote environmental sustainability.

5 CPSC Partners (6/4/15) Platinum Partners Edgar Institute Marin Sanitary Service Republic Services UltiMed Gold Partners California Refuse Recycling Council California Resource Recovery Association Green Cities California Recology

6 CPSC Partners (6/4/15) Silver Partners CalRecycle* Carton Council Bronze Partners Acrylatex Biologic Ecology Action Los Angeles Fiber Peninsula Packaging Company Potential Industries Inc. PSC Environmental Services South San Francisco Scavenger Company, Inc. Visions Paint Recycling, Inc. Zanker Disposal and Recycling * CalRecycle has not signed the CPSC Pledge, since this would be inappropriate for a State agency, but is a partner and financial supporter of CPSC.

7 What is CPSC Doing? Education

8 California EPR Legislation Focus on Toxics 1. Ag Pesticide Containers 2. Recalled Products Take-Back 3. Mercury Thermostat 4. Green Chemistry 5. Paint 6. Carpet 7. Brake Pads 8. Mattresses The Governor calls AB 1879 the most comprehensive Green Chemistry program ever established and added that it puts an end to the less effective chemical-bychemical ban of the past. But Are They Meeting the Goals?

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10 Objective 1 Assess public attitude, consumer motivation and consumer knowledge level Telephone Survey Focus Groups

11 Who Should Pay? Question Asked of Focus Group Retailers & Consumers Don t make general taxpayers and ratepayers pay Consumers and retailers say producers should be responsible Add cost to purchase price Want producers to make less toxic products If they re going to be manufacturing these things, they need to be responsible. Retail Focus Group Participant

12 Driver: Public Wants EPR! City of LA Zero Waste Plan Stakeholder Guiding Principles 1.Education to decrease consumption 2.City leadership to model zero waste practices 3.Education to increase recycling 4.City leadership to increase recycling 5.Manufacturer responsibility 6.Consumer responsibility 7.Convenience 8.Incentives 9.New, safe, technology 10.Protect public health & environment 11.Equity 12.Economic efficiency

13 Examples of Thermostats Approx 3gm of mercury

14 PaintCare.org

15 Carpet Stewardship 1 st in World! "I am very pleased the Governor approved my bill to promote recycling of carpets. More than 1.3 million tons of old carpets and rugs are sent to landfills every year. I introduced AB 2398 because keeping that enormous amount of materials out of landfills and reusing them instead will significantly improve sustainability in the carpet industry while promoting the growth of green jobs. Speaker John Perez 9/30/10

16 Why Did CA Pass AB 2398? 1. EPA reported that carpet was #4 GHG product in landfills in CA 2. Losing the U.S. biggest carpet recycler in the Speakers district LA Fiber Green Jobs! 3. Carpet is 4% by volume of what is disposed in CA

17 CA State Costs to Manage Product Waste ADF or EPR Framework Paint Program with ADF: $21,000,000? staff Paint Program with EPR: $261,000 4 staff

18 Not Pure EPR Policy 1. Allowed CARE to be single stewardship organization for 2 years April 1, 2015 (competition limited) 2. Visible fee not Internalized cost of doing business (.05 cents per yard) no economic feedback to drive better design) 3. Continuous and Meaningful Improvement No recycling rate or date (oversight problems) 4. No advisory committee or required stakeholder consultation

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21 Lack of oversight authority and clear goals causes big problems! Stewardship Plan is pixie dust approach they call it free market Plan goal 16% by 2016 and without recycling rates and dates, CalRecycle deemed CARE non-compliant with continuous and meaningful improvement towards that goal but no fine yet CalRecycle has issues with continuous and meaningful and will not enforce until see three year trend

22 Carpet Program Problems Didn t work with others to develop plan No California staff until May 2015 Not enough support of good recyclers No auditing of the carpet collectors Terrible PR campaign Marketing PET carpet as earth friendly Not working with existing industry well No in state collector subsidy Not labeling carpet to identify what it is

23 CARE Non Compliant

24 Presented by: Doug Kobold, Program Manager Department of Waste Management & Recycling

25 17,695 tons of carpet residual stockpiled in about 600 days! That s over 58,000 lbs/day!

26 What does over 17,000 tons of carpet look like? That s a full size construction excavator! These are 56 foot Big Rig trailers!

27 Huge piles more than 15 feet high!

28 Where did that 17,695 tons (or 35,390,000 lbs) of carpet go during October 2013? L&D Landfill Carpet Collectors 15,950 tons (about 660 truckloads) hauled about 54 miles to Potrero Hills Landfill in Fairfield. 1,745 tons (about 70 truckloads) hauled less than a mile to L&D Landfill in Sacramento. Potrero Hills Landfill

29 The Aftermath! Estimated Cleanup Cost to Landowner: ~$1MM Environmental Fines to Landowner: $125K RMDZ Loan Loss to CalRecycle: ~$1.8MM Total (w/major costs captured): ~$3MM

30 Recently discovered old carpet stockpile site.

31 Location of Site ~55 acre parcel with a carpet bale wall encompassing about three quarters of the perimeter.

32 More Wall Here Wall Ends Here More Stored Bales Wall Starts Here

33 Cost to clean up this mess? Only time will tell!

34 AB 2398 (Perez) September companies collecting in California (CARE 2013 Annual Report July 1, 2014) 5 recyclers in California & 11 Nationwide (CARE 2013 Annual Report July 1, 2014) California Collectors (Source: CARE Website) California Processors (Source: CARE Website)

35 We need to: Increase domestic uses for carpet fibers. Increase recycling opportunities, especially for PET fibers and backing for all carpet. Increase demand for materials made from ground up carpet (Example: Geotextiles, Geomats, etc.).

36 Contact Information: Doug Kobold Program Manager Department of Waste Management & Recycling County of Sacramento (916)

37 What is Working in Carpet? Saved Los Angeles Fiber 16 Rural counties with free trailers and transportation Fifteen known urban collection sites Six new processors entered the carpet recycling marketplace in 2014

38 CARE National Voluntary Program Stewardship-Plan1.pdf The following is from page 21 of this link. It s from an annual letter that the sorters need to sign to get funds from the voluntary program. 4. Company understands that this Program is part of the industry s government relations activities and that the purpose of this Program is to promote and support voluntary market-driven solutions for the diversion of Post-Consumer Carpet, and oppose efforts to enact Extended Producer Responsibility or EPR legislation or regulations. Company agrees that a condition for payment is supporting the purpose of this Program rather than supporting EPR-type legislation or regulation during the term of the Program and for eighteen months after receiving the last payment hereunder. Company specifically agrees and undertakes to refund any payments received under the Program for violation of the preceding obligation.

39 LEGISLATION: LESSONS LEARNED Mercury Thermostats: If its not in the bill, it won t happen (ex: public education) Deadlines don t matter without enforcement Paint: Contracting can be onerous and time consuming Convenience standards should be specific Fee money can be used to sue against oversight/pay for defense Carpet: Never collect fee before program starts Visible fees create problems! If Stewards are not auditing, they will fund poor operators All Three Bills: Producers will not design an optimum program without stakeholder input Allow state to audit for oversight, not just submit audited financials

40 SB 254 Mattresses Some facilities recycle both carpet and mattresses similar materials Required Advisory Committee seems to have solved stakeholder engagement problem

41 EPR State Legislation is Hard! Producer associations have organized against it National Chamber of Commerce submitted an Amicus Brief opposing Alameda s pharma ordinance claiming EPR is a economic evil We are in the final stages of the denial phase of the grieving process by producers that they can externalize all the costs - We will move into acceptance soon and legal rules of the road will be laid making the path forward clearer and easier

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43 EPR for Meds Around the World Canada: Health Product Stewardship Association British Columbia: Oldest program started voluntarily in 1996, became law in Spain: Sigre Stewardship Program Started in France: Cyclamed Stewardship Program Started in 2007www.cyclamed.org/en Mexico: Pilot in 2008, expanded countrywide in

44 Priority Products Survey October Respondents Pharmaceuticals Household Batteries Fluorescent Lamps Sharps Pesticides Electronic Waste 1 Lb. Gas Cylinders Aerosol Cans Packaging Cell Phones Fire Extinguishers Marine Flares Solar Panels Roofing Shingles Textiles

45 April 2015 Edition Marc J. Rogoff, Ph.D.

46 Canadian Health Products Stewardship Association Industry Designs and Oversees Program 100% Industry Funded Report to Government BC, Manitoba, Ontario - Nov Nova Scotia in

47 Facts and Outcomes Ontario, Canada EPR Program Ontario Regs. EPR for meds/sharps 10/12 >90% Voluntary pharmacy participation met regulated goal year 1 3,400 pharmacies! Provided 200,000 free sharps containers Collected 407 T medications and 259 T sharps Did not increase costs to consumers!

48 MED EPR Portugal Program SIGREM Organizing body Valormed (est. 1999) Organized/funded by: Association of Portuguese Pharmaceutical Industries (APIFARMA) Pharmaceutical Distributors (Groquifar) National Pharmacies Association (ANF) Payments are collected through a fee placed on packaging. (Fee was $.006 USD or in 2011) Retail participation voluntary; 99% pharmacy participation rate in 2011.

49 Meds EPR Mexico Program Name/Organizing body SINGREM Organized/funded by: National Chamber of the Pharmaceutical Industry Mexican Association of Pharmaceutical Research Industries National Association of Pharmaceutical Manufacturers Contributions based on individual member company s proceeds 2008 Pilot program launched in Puebla 2009 Program approved for nation-wide permanent implementation by 2015

50 Alameda County, CA Ordinance EPR for Meds Adopted July disposal locations currently Located at convenient designated sites, including unincorporated areas $40,000 per year disposal costs Significant use of volunteers Real cost est. over $300K/yr Ordinance Pure EPR Approach Only covers prescription not OTC Passed 5-0 vote knowing they would be sued

51 Secure Medicine Return for King County, WA Margaret Shield Local Hazardous Waste Management Program in King County 15

52 Article in New York Times 12/7/12 quotes complaint: The household trash can is a better and safer alternative, the drug makers say Pharmaceutical Research and Manufacturers of America (PhRMA), General Pharmaceutical Association & Biotechnology Industry Association Filed in Federal Court claiming violation of the Commerce Clause of the Constitution Alameda County Prevailed in 9 th Circuit Court 8/29/13! Then PhRMA Appealed 9/12/13 in Federal Court of Appeals

53 Appealed to Federal 9 th Circuit 9th Circuit Court of Appeals - 3 judge panel 7/11/14 No new facts only interpretation of law Judge I have a feeling this may not be the last word on this Court sides with Alameda County, upholds ruling 9/30/14 Appealed and High Court Declined to Hear Case 5/26/15

54 SB 727/1014 EPR for Medications Mirrored Alameda Ordinance, added OTCs Stakeholder negotiation meetings Both bills failed need for local action Senator Jackson sent letter asking local govt. to consider ordinance Oct. 30, 2014

55 National News Attention National Public Radio, January 2014

56 Senator Jackson Letter to Locals Letter sent October 31, 2014 asks for local governments to consider ordinances to move the issue forward in California.

57 City/County of San Francisco Medicine EPR Ordinance March 2015 Ordinance introduced at May 19 Board of Supervisors Meeting and passed with a 10-0 vote, with one Supervisor excused and signed by Mayor Edwin Lee 3/26/15.

58 County of San Mateo Medicine EPR Ordinance 4/28/ Ordinance introduced and heard at April 14 th Board of Supervisors Meeting and passed with a 5-0 vote. Waymond Wong, Program Manager, Environmental Health and Heather Forshey, Director of Environmental Health

59 County of Santa Clara Medicine EPR Ordinance 5/19/15 Ordinance introduced at May 19 Board of Supervisors Meeting and passed with a 3-0 vote, with two Supervisors recusing themselves from vote due to pharmaceutical investments.

60 County of Santa Barbara Medicine Stakeholder Process Begins 5/19/15 Public Health Department authorized to conduct stakeholder outreach and return in October 2015 with recommendations for sustainable & convenient medicine disposal program

61 Supreme Court Could Weigh Local Mandates on Drug Makers - March 27, 2015 Why is it fair to privatize 100 percent of the profits and socialize 100 percent of the costs? These are the same companies that don't like taxes, don't want fees, don't like big government, and we're offering them a program where they get to write their own regulations. - Heidi Sanborn

62 These statutes are taking off, we see there's a movement in California to expand beyond the pharmaceutical industry, This is the first time where a county or local government has reached out and forced companies in another state to provide a service to their local residents, Spears said. Mit Spears, general counsel for Pharmaceutical Research and Manufacturers of America (PhRMA)

63 Appeal to Supreme Court 12/29/14: PhRMA and other plaintiff organizations file a Petition For Writ of Certiorari asking the U.S. Supreme Court to consider the case Petition text 5/26/15: Denied!

64 City of Roseville Survey of Residents

65 Key Survey Findings Meds (cont.) The vast majority of respondents support the concept of a take-back program, with a total 86% of respondents saying they would be likely to use it.

66 Key Survey Findings Meds (cont.) Respondents were asked If a medication take-back program were to be established, how do you think it should be funded? Responses were categorized into the following:

67 Looking Ahead Macro Themes and Trends Local legislation and projects New products solar panels, tires, sharps Attempts at local pre-emption state/fed Externalized costs made permanent under guise of convenience & comprehensive solutions Federal legislation Sharps in medicare NaCO and National League of Cities more

68 My Hope for Oregon Honest review on what works Apply EPR where appropriate Ensure EPR bills are structured to work Don t turn the keys over to industry without proper controls and goals balancing needs of all stakeholders Start small require transparency first - carpet labeling of fiber and transparent and accurate marketing (no earth friendly for PET)

69 EPR is only one policy tool can be creative!

70 Shift to EPR is a Marathon Not a Sprint...

71 Thank you for your support! Heidi Sanborn Executive Director Connect!