EPR Summit IV Overview
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EPR Summit IV Overview

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We envision an approach to recycling that will: ...

We envision an approach to recycling that will:

* Advance energy independence
* Help free us from oil addiction
* Create jobs and profits
* Grow domestic manufacturing
* Fight climate change
* Respond to the changing fiscal climate
* Internalize environmental costs –
* Privatize costs, not just subsidize them with public $

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EPR Summit IV Overview EPR Summit IV Overview Presentation Transcript

  • Extended  Producer  Responsibility  Dialogue  IV  Transioning  to  Acon  on  EPR  for  Packaging  The  City  Club  of  San  Francisco  San  Francisco,  CA  June  4-­‐5,  2012   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • The  Problem             A  range  of  stakeholders  believes  recovery   rates  in  the  US  are  too  low  and  sees  EPR  as  the   best  tool  to  improve  recycling.     Other  ideas  are  welcome.   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • The  Process  1.  AcHon  oriented:  puJng  soluHons  on  the  table  2.  Clear  goal:  model  state  legislaHon    3.  AdapHve:  beMer  ideas  always  welcome  4.  Transparent  and  open  to  all  producHve   stakeholders     The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • The  Dialogue  Process:    Prepare  for  AcCon   Develop  the  PRINCIPLES         DraG  a  MODEL  POLICY        IdenCfy  the  OPTIMAL  STATES      Convene  the  STAKEHOLDERS      IdenCfy  and  ORGANIZE  Those  CommiOed  to  Advancing  Policy      COMMIT  and  Take  the  First  Steps   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Group  Discussion  to  Date  Roundtable  MeeCngs    •  EPR  Dialogue  I  –  New  York,  6/16/2011    •  EPR  Dialogue  II  –  Atlanta,  8/24/2011    •  EPR  Dialogue  III  –  DC,  12/1/2011    •  EPR  Dialogue  IV  –  San  Francisco,  6/3-­‐6/4/2012    Conference  Calls    •  EPR  Teleconference  -­‐3/23/2011          •  Policy  Webinar  –  10/18/2011    •  State  Webinar  –  10/20/2011    •  DraZ  EPR  Policy  Rollout  –  2/21/2012  •  Policy  Proposal:  Round  2  Discussion  –  4/13/2012   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • The  ObjecCve   “To  implement  a  strategy  to  develop  and   promote  model  mul4-­‐material  packaging  and   printed  paper  EPR  policy  in  non-­‐deposit  states   that  will  increase  the  volume  of  recyclables   collected  in  a  more  economically-­‐efficient   manner”     The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Core  Principles   To  be  economically,  poli4cally,  and  environmentally  viable,  EPR  policy   needs  to  reflect  three  shared  principles:  1.  Internalize  Costs  —  When  polluHon  and  waste  costs  are  externalized,   polluHon  and  waste  increases.  However  when  the  costs  are  internalized,   businesses  and  consumers  implement    the  most  cost-­‐effecHve  means  of  achieving   the  desired  outcomes.  2.  Brand  Owner  Financing  —  Because  brand  owners  make  front-­‐end  design   decisions,  they  are  best  posiHoned  to  pay  the  external  costs,  and  have  the  best   opportunity  and  incenHve  to  reduce  them.    3.  Brand  Owner  Management  —  Government  may  set  the  performance   standards,  monitor  progress  and  create  a  level  playing  field  for  EPR,  but  brand   owners  are  best  posiHoned  to  design  and  manage  the  program  to  achieve  those   goals.     The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Goals    Based  on  group  discussion,  our  process  must  meet  the  following  minimum   benchmarks:   1.  Policy  must  meet  the  three  core  principles:    cost  internalizaHon,   brand-­‐owner  financing,  and  brand-­‐owner  management.   2.  Address  packaging  and  printed  paper.  Need  mechanisms  to   support  and  enhance  exisHng  markets  for  recyclables,  and  create   the  markets  for  materials  without  adequate  end  markets.   3.  Achieve  high  rates  and  quality,  to  meet  the  needs  of  the   materials  sector:  aluminum,  steel,  glass,  plasHc,  and  paper.       4.  Boost  domesCc  economy  –  keep  enough  volume  in  domesHc   market  to  serve  as  raw  materials  in  packaging  and  other  sectors,   and  help  drive  job  growth  in  the  US.   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • MeeCng  IV    Topics/Agenda   Big  Picture  Issues   Policy  Discussion   PoliHcs  of  EPR   Breakout  Discussions   –  Policy  versus  plan   –  Role  of  local  government   –  Challenges  and  soluHons   Preparing  for  AcHon   Key  Takeaways   Needs  and  Next  Steps   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Big  Picture  Issues  NaConal  vs.  State-­‐specific  Strategy   –  NaHonal  issue:  To  demonstrate  momentum,  consider  mulHple  states  simultaneously   (Federal  policy  a  non-­‐starter)   –  Make  sure  stakeholders  are  aligned  before  we  proceed  in  states   –  Make  final  invitaHon  to  stakeholders  to  provide  input  Framing   –  Jobs,  climate,  waste  issue,  local  government  financial  situaHon   –  BeMer  messaging  is  needed  to  communicate     –  Clear  list  of  pros/cons  Problem  DefiniCon  /  Goal   –  Stakeholders  have  different  perspecHves  and  prioriHes  that  need  to  be  aligned.   –  Common  ground  exists;  we  just  have  to  dig  for  it.  Data  gaps   –  Context  maMers.  We  need  domesHc  data,  not  just  EU/Canadian  evidence.   –  Much  data  exists,  but  not  integrated  or  readily  accessible.     –  Vital  to  quanHfy  the  business  case  –  what  is  the  cost  range  to  each  sector?   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Policy  Discussion  (white  paper  and  presentaCon  available  upon  request)  Premise:  LegislaHon  needed  to  ensure  a  level  playing  field  and  support  effecHve  program   Outstanding  issues:     -­‐  Need  to  be  explicit:  which  (if  any)  away-­‐from-­‐home  spaces  are  covered.     -­‐  Ownership  of  material:  Brand-­‐owner  financed  and  managed,  but  no  flow  control.         -­‐  Focus  on  intent:  Final  language  of  policy  will  need  refinement  and  wordsmithing     -­‐  Retailers:  Need  beMer  understanding  of  their  role  in  EPR  system     -­‐  Fee  structures:  if  industry  sets  the  fees,  are  they  going  to  opHmize  over   mulHple  environmental  parameters?  Must  be  careful  not  to  undermine  exisHng   infrastructure.  Need  for  Life  Cycle  Assessments  (LCA)  As  to  make  sure  most  opHmal   outcome  (economically  and  socially)  is  incenHvized.  Approach  to  opHons  like   incineraHon  may  vary  by  state.     -­‐  Responsibility:  Producers  to  accept  responsibility  for  their  packaging  choices   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Alternate  Proposals  AMempt  to  broaden  the  conversaHon   –  No  single  model  is  perfect.  Very  likely  that  opHmal  model  is  one  not  currently  on  the   table.     –  Consider  a  suite  of  policies  (Pay  As  You  Throw  [PAYT],  mandatory  commercial  recycling,   carbon  tax  shiZ)  that  –  implemented  alongside  EPR  –  would  best  accomplish  our  goals.    ComplicaHons  regarding  transiHon  to  new  system   –  Voluntary  approaches  might  help  secure  wider  industry  support    Shared  Responsibility   –  Benefits  of  shared  responsibility  model:       -­‐  Incremental  approach  to  change  means  potenHal  for  less  industry  opposiHon   -­‐  Allocates  costs  more  evenly  among  affected  stakeholders   -­‐  Maintains  exisHng  relaHonships  in  solid  waste  disposal  and  recycling     –  Concerns  w/  shared  responsibility:   -  Layering  shared  responsibility  onto  heterogeneous  state  contexts   -  Experience  (EU,  Maine)  shows  that  full  responsibility  from  the  outset  is  opHmal   -  Full  responsibility  gives  greater  leverage  to  cut  costs  and  drive  improvements    Smart  poliHcs  versus  opHmal  policy   –  If  considering  shared  responsibility,  important  to  state  we  are  driving  towards  full  EPR   model   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • The  States•  Four  Top  Priority  States   •  Two  Secondary  States   –  Plan  for  legislaHon  in  2013  and  2014   –  Upcoming  elecHons  will  help  determine  where  best  opportuniHes  are   –  Criteria:  Ideal  mix  of  public  versus  private  assets,  experience  with  recycling   and  producer  responsibility,  non-­‐deposit  state  •  Local  allies  would  lead  iniHaHves  in  target  states   State  CoaliHons  could  include:   –  NaHonal  Strategists     –  NaHonal  Supporters     –  State  Lead  Supporters  (Lobbyists)   –  NaHonal  and  state-­‐level  opinion  leaders   ‒  Input  from  local  governments   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • The  New  Phase:    Take  AcConUnique  roles  for  each  stakeholder  based  on  interest  (par4al  list)   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Key  Roles  to  Coordinate The  Facilitators  and  Process  Drivers   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Breakout  Sessions•  Policy  Versus  Plan   What  is  in  the  legislaHon  and  what  would  be  managed  by  the  Producer   Responsibility  OrganizaHon  (PRO)?  •  Role  of  Local  Government     What  is  the  role  of  municipal  government  in  an  EPR  program?  •  Challenges  and  SoluCons     What  challenges  need  to  be  addressed  to  aMract  a  broad  EPR  coaliHon  in  US?     The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Breakout  Session  1  Policy  Vs.  Plan•  Trade-­‐off  between  specificity  in  statute  (to  eliminate  free-­‐rider  problem)  and   program  flexibility  (to  keep  system  adapHve).  Right  balance  depends  on  state   context.  •  Policy  can  include  guidance:  consider  X,  Y,  Z  criteria  when  seJng  fees.  •  PenalHes  and  fines:  can  ensure  that  we  create  a  level  playing  field.   –  PenalHes  for  not  parHcipaHng?  PenalHes  for  not  meeHng  goals?     –  Issue  of  No-­‐Sale  provisions.   –  State  goals  vis-­‐à-­‐vis  local  gov’ts.  Enforcement  acHon  is  last  resort.  Capacity   building  is  also  key  element.      •  What  should  count  towards  recovery/recycling?  How  to  inventory  all  that?    •  Quality:  We  should  look  carefully  at  this  as  we  create  the  plan.  How  do  incenHves   improve/reduce  quality  of  enHre  recycling  stream?   –  Language  ensuring  quality  might  hinder  passage.  Need  to  find  middle  ground.     –  Goal-­‐seJng  with  transparent  costs  would  ease  this.  •  KEY  TAKEAWAY:  Group  input  will  make  its  way  into  a  revised  white  paper   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Breakout  Session  2  Role  of  Local  Gov’t•  Local  gov’t  historic  role  and  investment  needs  to  be  recognized,  though  these   may  differ  from  business  objecHves.  •  All  actors  need  to  let  go  of  legacies  and  move  forward  with  transiHon  •  Key  issue  is  stranded  assets.  No  policy  recommendaHons  came  out  of  this   going  forward,  but  will  need  to  be  addressed.    •  In  designing  a  system,  we  need  to  be  transparent  about  where  and  why  we   introduce  complexity,  which  can  be  inefficient,  prescripHve,  or  poliHcized.  •  EducaHon  will  be  key  to  transiHon.  PRO  is  beMer  poised  to  do  broad  regional   or  state-­‐wide  educaHon.  Specific  issues  and  materials  can  be  addressed   efficiently,  using  brand’s  ability  to  market,  etc.  KEY  TAKEAWAY:  Modeling/mapping  of  exisHng  public  infrastructure  in  several  target  states.  What  is  degree  of  penetraHon  of  public  infrastructure,  etc.?   –  Need  for  F500  or  some  other  subset  of  this  group  to  convene  a  meeHng   solely  on  this  issue   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Breakout  Session  3  Challenges  and  SoluCons  Key  first-­‐order  issue:  What  are  our  goals?  Clarity  is  needed  to  move  forward  •  Recycling  infrastructure  must  be  improved.  We  want  to  achieve  highest  rates  at  lowest  social   and  environmental  costs.  •  Clarity  about  assigning  ownership  of  collected  packaging.  •  But  do  we  also  want  to  minimize  social/enviro  cost  of  packaging?  Then  we  might  want  to   incenHvize  design  for  recyclability.     –  EPR  as  a  tacHc  versus  EPR  as  the  goal.  •  Do  we  want  to  collect  a  broad  swath  of  materials,  to  divert  them  from  landfills  and  create   markets?  Are  we  trying  to  increase  PET  recycling  (energy  issue)?    •  Do  we  want  to  create  jobs  and  build  domesHc  markets?  •  Ethical  consideraHons  –  relieve  local  gov’t  of  this  burden?  •  Set  goal  of  specific  reducHon  to  landfills?  Next  step:  Develop  white  paper  on  group  goals,  and  implicaHons  of  each  goal.     –  DelineaHng  goals  could  help  define  a  coaliHon  of  the  willing.   –  Test  more  ideas.  We  can  get  more  people  in  the  room  by  showing  that  we  are  doing  the   data  collecHon  and  research.  Prove  that  EPR  is  the  way  forward.     The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Breakout  Session  3  Challenges  and  SoluCons  (Cont.)  •  Data:  AYS  report  coming  out,  value  of  material  in  our  packaging  pegged  around  $11  billion.   Not  having  that  valuaHon  makes  it  harder  to  get  business  community  on  board.  Could  be  eye-­‐ opening  for  business.     –  Need  for  more  collaboraHon  to  get  more  sophisHcated  results.   –  However,  groups  need  more  material  now.  We  need  acHon  now  while  we  do  this  research.  •  Split  between  collecHon  in  Industrial,  Commercial  and  InsHtuHonal  (ICI)  sector  and  household   waste.  Low-­‐hanging  fruit  in  household  sector  (25%  of  households  have  no  recycling  opHons).  •  Paper  industry  bracing  for  drop  in  what’s  being  put  on  market,  less  newsprint,  less  collecHon.   But  lots  of  paper  is  not  being  collected  –  high-­‐quality  fiber  (coffee  cups,  etc.)  –  could  help   offset  some  losses.  ContaminaHon  issues  must  be  addressed  in  this  stream,  but  high-­‐quality.  •  California  has  a  new  statewide  goal  that  75%  of  its  solid  waste  be  source  reduced,  recycled,   or  composted  by  2020.    CalRecycle  is  required  to  submit  a  report  to  the  Legislature  (by  Jan.  1,     2014)  that  provides  strategies  to  achieve  this  policy  goal.    As  part  of  this  process,  CalRecycle   released  an  iniHal  discussion  document:  California’s  New  Goal:  75  Percent  Recycling,  which   includes  an  item  on  EPR  for  packaging  (pg  36).    Workshops  are  underway  and  all  are  invited   to  parHcipate  (www.calrecycle.ca.gov/75Percent).  •  Are  there  incremental  steps  we  can  take,  that  might  support  or  precede  EPR?   –  PAYT,  Mandatory  Recycling,  landfill  bans,  state  goals   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • The  Gameplan:  Current  Needs   •  Research   –  EsHmate  internal/external  costs  of  current  packaging  end-­‐of-­‐life  system   –  EsHmate  changes  in  cost  with  EPR,  using  various  assumpHons   –  IdenHfy  approaches  that  help  reduce  total  costs   –  EsHmate  cost  range  for  key  materials  and  sectors   –  Much  data  exists,  but  an  excellent  research  team  is  needed  to  develop  credible   esHmates  and  provide  policy  and  poliHcal  guidance  •  Messaging   –  Why  care?    Make  a  clear  case  to  consumers,  media,  and  public   –  Why  should  brands  be  responsible  for  their  packaging  choices?      •  Outreach   –  Secure  strategic  supporters  within  each  target  state:    brands,  gov’t,  NGO,  haulers,   retailers,  recyclers,  etc.   –  Secure  genuine  input  from  current  opponents  in  CPG  sector   –  Strengthen  support  from  the  not-­‐quite-­‐willing  industry  segments   –  Develop  legislaHve  opHons  based  on  input  from  all  above   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Engagement  Network Leveraging  the  Assets  of  Our  Group  Future  500  will  use  this  informa4on  to  con4nue  engagement  as  we  take  ac4on  on  next  steps  outlined  on  slide  23   TOP  STAKEHOLDER  NEEDS:   KEY  STAKEHOLDER  ASSETS:   -­‐  More  learning  and  willingness  to   -­‐  Experience  and  experHse  across   have  open  conversaHons   relevant  industries   -­‐  Direct  input  from  municipaliHes   -­‐  Understanding  of  local/state   -­‐  Pressure  to  bring  criHcal  stakeholders   government  dynamics  and  extensive   to  acHon   network   -­‐  Data  on  business  case/costs     -­‐  CommunicaHons  plaxorm   -­‐  Modeling  transiHon  scenarios   -­‐  State  and/or  naHonal  lobbying  power   -­‐  RecogniHon  of  needs  of  different   -­‐  Experience  with  EPR  implementaHon   stakeholders  and  materials   -­‐  Willingness  and  need  to  take  acHon     -­‐  Concrete  plan  that  is  pracHcal  and   can  be  implemented   -­‐  Broader  agreement  and  buy-­‐in  on   problem  and  group’s  goals   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • Key  Takeaways•  EPR  issue  is  growing  in  influence   –  There  is  growing  momentum.  Groups  inside  and  outside  the  target  states  are  now   reaching  out  to  engage  on  this  issue.  •  CommuniHes  want  manufacturers  to  act     –  EPR  is  on  the  radar,  but  no  single  model  has  widespread  support.    •  Many  brands  will  stonewall  unHl  they  face  genuine  state  acHon     –  They  hope  if  they  don’t  engage,  it  will  all  go  away•  Some  brands  may  commit  if  we  deliver  more  credible  data   –  Cost  esHmates  are  now  too  vague  to  enable  a  raHonal  decision  •  A  well-­‐designed  EPR  approach  based  on  solid  research  is  essenHal  to  build   a  broader  and  more  powerful  coaliHon  •  Openness  and  adaptability  will  lead  to  success   –  There  are  many  paths  to  victory,  if  we  adapt  with  skill  and  integrity   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  •  Needs/Next  Steps•  RESEARCH:    Clearly  specify  the  needs;  secure  and  fund  credible  researchers   –  Next  Step:    Future  500  draZs  needs  for  team  review;  idenHfy  prospecHve  researchers  •  MESSAGING:    Build  compelling  messages,  visuals,  flow  charts   –  Next  Step:    Tunheim  and  Cone  creates;  media/poliHcal  consultants  review/refine  for  team  consideraHon  •  STATE:    Build  network  of  key  in-­‐state  supporters   –  Next  Step:    RR  inventories;  F500/AYS  and  dialogue  network  systemaHcally  reach  out  •  NATIONAL:    Seed  the  naHonal  conversaHon  and  grow  organic  movement   –  Next  Step:    F500  and  other  allies  work  to  engage  other  key  stakeholders  by  leveraging  tradiHonal  and  social  media,   NGOs,  SRIs  •  CEO-­‐to-­‐CEO:    NWNA  CEO  reaches  out  to  C-­‐level  execuHves  for  support     –  Next  Step:    NWNA  and  F500  list  the  most  strategic  execuHves  to  approach,  then  schedule  them  •  LEGISLATION:    Develop  a  revised  model  to  draw  out  more  stakeholders   –  Next  Step:    RR  is  preparing  next  model  •  OPPOSITION:    Reach  CPGs  and  others  to  secure  feedback  in  order  to  producHvely  address   their  concerns  •  ALTERNATIVES:    Reach  Alcoa,  glass,  NAPCOR  to  clearly  idenHfy  needs/opHons   –  Next  Step:    F500  week  of  meeHngs  to  explore  opHons  in  depth  and  find  alliance  opportuniHes  •  OPERATIONS:    Engage  operaHons  experts  on  pracHcal  EPR  implementaHon  •  PACKET:    Draw  messaging,  research,  and  legislaHon  into  a  packet     –  Next  Step:    RR  build  on  white  paper  to  make  a  clear  case  and  build  issue  literacy   The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org
  • San  Francisco  –  Beijing  –  Tokyo   335  Powell  Street   www.future500.org  The Future 500 :: The Bridge between Corporations and NGOs :: www.future500.org