Reprinted from

A decade of product stewardship in America The main goal of product stewardship is to change the way products are designed, and then managed at the end of their life, so that all parties involved with a specific product share the responsibility for reducing its health and environmental impacts. What’s the status of product stewardship in the U.S, and what can be done to move forward? By Scott Cassel

new trend is gaining steam that will have a significant serve as collection points for used or leftover products, and provide impact on the recycling industry. Product stewardship information to consumers, while governments oversee product A – a concept that makes manufacturers financially stewardship systems to ensure fairness (e.g., all manufacturers are responsible for managing products at the end of their useful subject to the same requirements) and effectiveness (e.g., perfor- life – is expanding in the U.S. No longer concerned primarily mance levels are achieved). Consumers also have a role in taking with the safe disposal of products with toxic ingredients, the action to manage products effectively once convenient solutions are product stewardship movement is increasingly targeting non- offered. Some of the products collected wind up with processors hazardous materials, such as packaging, phone books and and end-users, who also have a responsibility to manage products other consumer goods. safely for workers and the environment. Coherent, consistent legislation could create new opportuni- The Product Stewardship Institute, a Boston-based non-profit ties for recycling processors and end-users by increasing the amount organization, formalized these concepts in 2001 with its Principles of materials collected for recycling. Many issues still need to be of Product Stewardship. These principles have now been adopted ironed out to ensure that product stewardship systems nurture both by the Solid Waste Association of North America, Environmental large and small businesses; but, in the end, these new programs Council of the States, National League of Cities, Reusable Packag- could be a real boon to reputable recycling firms, who are sick of ing Association, and many other organizations. being undercut by illegal or irresponsible competitors. Unfortunately, past collection programs have not done a great job of capturing all the material that could be recovered. Accord- ing to the U.S. Environmental Protection Agency’s (EPA) 2008 What is product stewardship? Municipal Solid Waste Generation, Recycling, and Disposal in the The goals of product stewardship are to change the way products United States report, nearly 14 percent of all electronics are recycled are designed, so that manufacturers, retailers, governments and responsibly, while the rate of recycling for mercury thermostats, consumers share responsibility for reducing a product’s health and paint and rechargeable batteries are all less than five percent. And, environmental impacts. Those with the greatest ability to reduce according to the Association of Lighting and Mercury Recyclers, those impacts (e.g., manufacturers) shoulder the greatest responsi- only about two percent of all household fluorescent lamps are pres- bility. Manufacturers and, ultimately, consumers – whom manu- ently recycled. facturers pass on costs to – pay for collecting, recycling, or appro- There are many reasons for the poor performance of these priately disposing of products consumers no longer want. Retailers collection programs, with the most important factor being lack

32 RR | April 2010 of funding. Historically, the burden was left to local governments to run these Table 1 | State product stewardship laws programs, and there simply wasn’t much money available to collect recyclable or (as of March 17, 2010) hazardous products. The cost to local gov- ernments of managing discarded consumer Product No. of laws States with product stewardship law(s) products has proven to be staggeringly high Electronics 19* CT, HI, IL, IN, ME, MD, MI, MN, MO, NC, (e.g., about $0.30 per pound for electronic NJ, OK, OR, RI, TX, VA, WA, WV, WI waste and up to $8 per gallon for leftover Auto switches 13 AR, IL, IN, IA, ME, MD, MA, NJ, NC, RI, paint). If local governments were to man- SC, UT, VT age just seven products, the annual bill Batteries 7 FL, IA, ME, MD, MN, NJ, VT would come to nearly $2 billion nationally. Thermostats This is a financial burden that local govern- (mercury) 7 CA, IA, ME, MT, NH, PA, VT ments simply cannot afford. Fluorescent lamps 2 ME, WA The push for product stewardship is Paint 1 OR beginning to change all that, by shifting Pesticide containers 1 CA the financial burden to manufacturers and Framework 1 ME consumers. This should make more money * New York City also passed a product stewardship electronics law. California was the available to hire recycling service providers. first state to pass an electronics law, but it is based on imposing an advanced recycling fee. It will also lower overall costs for manag- ing products, since all stakeholders work Source: Product Stewardship Institute, 2010 closely together under a product stew- ardship system, inducing greater system efficiencies. batteries and mercury thermostats (both create more recycling jobs by stimulating Another reason for poor program per- with seven each), fluorescent lamps (two) the recycling economy. formance is that collection programs tend- and paint and pesticide containers (with While residents have more oppor- ed to be voluntary. While such programs one each). Maine is currently the only tunities to act in an environmentally- did provide a much needed jump start for U.S. state to have a producer responsibility responsible manner, recycling service is the movement, they don’t stimulate long- framework in place for numerous products. not always convenient. Even more so, term, efficient collection. Effective product Altogether, 31 states have enacted at least people often lack the information needed stewardship programs create a level playing one producer responsibility law, with one about product impacts and solutions. The field by requiring all manufacturers to meet state, Maine, passing six such laws. The recycling industry can play an important measurable collection targets. number of states with at least one law has role by educating residents and businesses, doubled since 2006. and developing innovative ways to make it These state laws have created op- more convenient for them to participate in The status of product portunities for residents and businesses to collection programs. Neglecting to recover stewardship take responsible action to safely manage and reuse recyclable materials means energy Product stewardship has gained consider- targeted products at EOL. Leading states, and other natural resources are wasted in able momentum in the U.S., as state and such as Maine, provide the greatest oppor- the extraction and production of virgin local governments have shown they are tunities for their residents to manage waste materials, as well as the manufacture of willing to regulate. The EPA recently de- products safely. However, the threat of new products. According to the EPA, the emphasized voluntary programs and began legislation has created opportunities in all extraction, production, transport and dis- to couple those with regulatory initiatives. states for residents, as well as an increasing posal of goods accounts for approximately Manufacturers have increasingly shown number of businesses, to recycle recharge- 29 percent of all man-made greenhouse that they understand they play a central able batteries, thermostats, electronics, auto gas (GHG) emissions. Greater re-use and role in the product stewardship movement, switches and fluorescent lamps, owing to recycling of consumer products is a power- while retailers and waste management com- collection programs run by manufacturers ful GHG reduction strategy. panies are recognizing new business oppor- or retailers. tunities, offering innovative services. En- While these programs target hazardous The emergence of vironmental activists have gained strength products, local governments are also strug- with no signs of waning, and consumers gling to maintain current programs to col- framework legislation now expect more convenient opportunities lect traditional non-hazardous recyclables, Now that more than 50 laws have been to safely manage their products at end-of- such as bottles, cans, boxboard, cardboard, passed, which require product stewardship life (EOL). and other packaging materials. The EPA, for individual products, a comprehen- As of March 2010, nearly 50 laws – along with state and local governments, are sive, or framework, legislative approach covering seven products – have been enact- now exploring how product stewardship is needed to establish an overarching ed at the state level, requiring manufactur- can be applied to packaging materials, hop- product stewardship policy for multiple ers to take responsibility for their products ing to forge a sustainable multi-stakeholder products. To date, framework bills have at EOL. As shown in Table 1, the greatest financing agreement that will increase the been introduced in six states, with only one number of laws address electronics (19), supply of recycled materials, lower govern- state, Maine, enacting a framework law, followed by mercury auto switches (13), ment costs, lower overall system costs, and although it is not the comprehensive ver-

RR | April 2010 33 sion originally introduced in Maine and in place in Canada, and proposed for U.S. systems will constrain their well-established the other states. (The most recent versions states, offer a variety of approaches for business model and decrease their market of framework and product-specific bills designating products, sharing authority share. Still, others argue that a product can be found on a producer responsibil- between legislative and executive branches, stewardship framework needs to include ity legislation map created by the Product engaging external stakeholders in decisions, recycling standards that will still allow for a Stewardship Institute.) and other important elements. More states wide range of reputable firms. will need experience with product steward- Firms that have invested in ensuring A sound framework would accomplish ship laws before framework policies gain the safe recycling of materials should not the following: traction. In the meantime, more states are be at a disadvantage to those who pro- • Require that manufacturers establish passing laws that include the elements of cess material cheaply, with little thought and finance a system for product col- the framework as the basis for each indi- to worker safety, public health and the lection and recycling vidual product stewardship law, which is a environment. Those are the businesses • Stipulate that manufacturers that do step toward greater system harmonization. that undercut the competition by dump- not participate in the collection system ing electronic waste abroad, only to have cannot sell their products in the state the toxic substances leach into the ground • Require manufacturers to submit a The future water or go up in the smoke inhaled by management plan to the state regula- As product stewardship continues to push poor laborers as they heat circuit boards for tory agency for review and approval collection rates up, there will be more metal recovery. Those are the businesses • Report on progress toward meeting opportunities for recycling processors and that give the industry a bad name, and we performance goals. end-users. Product stewardship’s role in are better off without them. creating jobs is clear in countries where it Through product stewardship, we By establishing a clear government policy has been in place for a significant length can achieve far greater collection rates and on waste management across products, of time. According to the Organization for expand the market for recycling. Through a framework approach creates a more Economic Co-operation and Development, a framework, we can ensure that busi- predictable regulatory environment and, Germany’s packaging stewardship law, en- nesses have consistent and stable programs in turn, a more stable business environ- acted in 1991, has resulted in the employ- to attract investments and ensure growth. ment, rather than the more risky and costly ment of 17,000 people. And, according to And, by developing recycling standards for approach of having different laws in each a 2008 Gardner Pinfold Consulting study, all product categories, we will ensure that state. British Columbia created an estimated reputable businesses flourish, while those Concerns have been raised that a 2,100 full-time jobs from programs for long maligned wither and fade. framework approach may impose the same beverage containers, used oil, tires and requirements on every product. If done electronics. Scott Cassel is executive director and properly, a framework system will not be Concerns have been expressed among founder of the Product Stewardship Insti- a “one size fits all” approach. It does not those in the recycling industry about tute, Inc. He can be contacted at (617) preclude government from negotiating where, exactly, those jobs will be. Some 236-4822 or [email protected]. with individual business sectors to ensure small firms worry that a product steward- that requirements address the specific char- ship law will knock them out of competi- Reprinted with permission from Resource acteristics of a product or industry. Such tion, and all the jobs will go to a handful Recycling, P.O. Box 42270, Portland, OR negotiation will no doubt be necessary of big recycling firms. By contrast, some 97242-0270; (503) 233-1305, (503) 233- for most products. Framework systems in large companies are concerned that such 1356 (fax); www.resource-recycling.com.

34 RR | April 2010 The Product Stewardship Institute (PSI) is a national non-profit environmental institute with membership from 45 states, over 125 local governments, tribes, and more than 55 businesses, organiza- tions and universities that establishes cooperative agreements to reduce the health and environmental impacts from consumer products. We work with state, local, and tribal governments to partner with waste management firms, manufacturers, retailers, environmental groups, federal agencies, and other key stake- holders. PSI’s mission is to pursue initiatives to ensure that all those involved in the lifecycle of a product share responsibility for reducing its health and environmental impacts, with producers bearing primary financial responsibility.

For more information, visit the Product Stewardship Institute website: http://www.productstewardship.us/ Scott Cassel, PSI Executive Director [email protected] 617-236-4855 29 Stanhope Street Boston, MA 02116