May 19-22, 2008 Baltimore MD Life Cycle Analysis Meets Cost Benefit Analysis (in the Paint Aisle) Jeff Cantin jeff.cantin@erg.com Bev Sauer Franklin Associates (a div. of ERG) bsauer@fal.com 1 Latex Paint 343 million gallons sold each year 64 million gallons left over Average retail price: $20 per gallon Cost to municipalities to manage as HHW: $6.00 - $13.50 per gallon (PSI 2004) “Largest volume material collected by most household hazardous waste collection programs” (EPA 2007) 2 Latex Paint Basic ingredients Pigment – color, protection, filler Resin (binder) – adhesion and film forming Solvent – water Co-solvents – alcohols, ethylene glycol Additives • Thickeners • Fungicides and preservatives • Plasticizers • Defoamers 10% extenders & additives 15% TiO2 pigment 25% acrylic binder 50% water 3 Latex Paint Health and environmental concerns Older paints may contain mercury or mercuric compounds (banned in 1990) or lead (banned in 1978) Contain some solvents (ethylene glycol, glycol ethers) Bactericides may contain formaldehyde Toxic to fish (CA DFG 1990) 4 Latex Paint Disposal options Consumer confusion Liquid – not accepted for landfill disposal Dried and solidified – nonhazardous, accepted at most landfills Water-based vs. oil-based? OK to landfill? How to dry or stabilize? Result Substantial quantities brought to HHW collections Mixture of latex and oil-based paint 5 Stewardship Opportunities Product reformulation Increasing Levels of Stewardship Eliminate health and environmental concerns Direct consumer re-use Consumer education —Buy what you need —Store properly —Use it up Collect and reuse/recycle —Send offsite for recycling —Onsite swap or blending Dry and dispose as MSW Return to retailer —Send to recycler —Send to manufacturer to be recycled —Onsite blending, re-sale Collect and downcycle Landfill cover or fuel blending 6 Multistakeholder Process Product Stewardship Institute National Paint and Coatings Association 4 paint recyclers 7 states, 18 municipalities U.S. EPA Paint Product Stewardship Initiative (PPSI) www.productstewardship.us 7 PPSI Projects Education Projects Infrastructure Projects Project #3 Paint Reuse Guidance Manual Project #4 National Leftover Paint Infrastructure Model Project #5 National Leftover Paint Infrastructure Cost Analysis Market Projects Project #1 Leftover Paint Management Education Pilot Project #2 Public Education Survey and Analysis Project #6 Market Development Strategy Project #7 Recycled Paint Marketing Guide for Distributors Project #8 Recycled Paint Certification System Other Projects Project #9 Health, Safety, Environmental & Regulatory Issues Project #10 Financing System Research and Model Development Project #11 Lifecycle Balance of Costs and Benefits 8 LCA / CBA of Leftover Latex Paint What are the lifecycle costs, benefits, and environmental impacts of alternative leftover paint management schemes? Do the benefits outweigh the costs? 9 LCA / CBA of Leftover Latex Paint Scoping phase Define alternative leftover paint management methods Define relevant categories of costs and benefits Define the “functional unit” and “reference flow” Define the system boundaries Identify potential data sources Identify data quality criteria Analysis phase Data collection LCA modeling CBA modeling LCA / CBA integration 10 LCA Definition As defined in ISO 14040, a Life Cycle Assessment (LCA) is the “compilation and evaluation of the inputs, outputs and the potential environmental impacts of a product system throughout its life cycle.” 11 LCA Process Internationally accepted ISO standards (14040, 14044) provide the framework for conducting LCA: 1. Goal and Scope Definition 2. Life Cycle Inventory (LCI) 3. Life Cycle Impact Assessment (LCIA) 4. Interpretation of Results Goal and scope defined in the first phase of the paint project. 12 Life Cycle Inventory (LCI) The inventory is the basic documentation process on which other parts of an LCA are built. General concept is simple: LCI is a comprehensive input/output analysis or environmental accounting system Inputs of materials and energy Outputs of products and releases to air, water, and land 13 General Life Cycle Flow Diagram Energy Raw Materials Acquisition Wastes Energy Materials Manufacture Wastes Energy Product Manufacture Wastes Energy Energy Product Use or Consumption Final Disposition: Reuse, Recycle, Landfill, Incineration Wastes Reuse Recycle 14 Paint Management Methods Consumer-based Reuse Consumer 1 gives paint directly to Consumer 2 Dry/stabilize and dispose Consumer dries or stabilizes paint Paint goes to landfill or incinerator as MSW Collection-based Reuse Paint is brought to sort/swap facility Accepted paint is made available in original container Consolidation Paint is brought to consolidation facility Paints are sorted, blended, repackaged Reprocessing Paint is brought to reprocessing facility Paints are sorted, blended, tested, repackaged Virgin materials (additives) are used Disposal Paint is collected and disposed as waste 15 Life Cycle Impact Assessment (LCIA) Inventory of inputs/outputs from the inventory phase are translated into potential impacts on human health and the environment using impact assessment (e.g., U.S. EPA TRACI) Classification • Inventory flows grouped into relevant impact categories • Example: Global warming impact category includes carbon dioxide, methane, nitrous oxide, many other substances. Characterization • Within each category, normalize to common reference substance • For global warming, each substance multiplied by its global warming potential relative to carbon dioxide 16 LCIA Limitations LCI does not track all the detailed information needed to accurately assess actual impacts of emissions Individual release locations, concentrations Direct and indirect exposure routes (inhalation, ingestion, dermal), etc. Aggregated life cycle emission quantities can represent very different scenarios with different impacts LCIA is not a replacement for toxicology or risk assessment, but is a useful way to condense long list of inventory flows to a set of meaningful impact categories for directional comparisons 17 Value of LCA Comprehensive life cycle systems approach ensures that important upstream and downstream impacts are not overlooked Provides quantitative information needed to make informed decisions Baseline for tracking & measuring effect of changes for an individual system Comparisons of alternative designs, formulations, processes Useful for internal and external purposes Internal process improvements and designs Informing customers, stakeholders, or general public Policy decisions 18 Data Collection Surveyed HHW programs and paint processors across the U.S. to gather data on: Quantities of paint collected Incoming paint transportation (dropoff at facility, collection events) Sorting Processing of usable paint (swap shop, on-site consolidation, sent off-site for reprocessing) Disposal of unusable paint (bulking, landfill disposal of liquid and dried paint, etc.) Recycling or disposal of paint containers Additional information/input from workgroup and Infrastructure Report Model collection and processing system specifications and costs 19 LCA Results Global warming Acidification Human health – cancer Human health – non-cancer Human health – criteria air pollution Eutrophication Ozone depletion Ecotoxicity Smog Water use Fossil fuel use Total energy use Mineral extraction 20 CBA Account for all private and public costs and benefits associated with each method Determine which can be monetized Consumers Time Energy Industry Storage space Government MSW management “Free” paint Promotion Collection Avoided raw materials costs Avoided impacts to air, water, land Society Landfill disposal Avoided use of resources Avoided health effects 21 CBA Monetizing LCA impact categories Stressor Impact Category Reference Units Valuation Strategy Cancer kg Benzene equivalents Avoided mortality Non-cancer kg Toluene equivalents Avoided morbidity Ecotoxicity kg 2,4-D equivalents Cost of remediation Particulate matter Cancer & non-cancer kg PM2.5 equivalents Avoided mortality and morbidity Carbon dioxide, methane, other GHGs Global Warming kg CO2 equivalents Avoided costs of climate change Nitrous oxides Smog Formation NOx equivalents WTP for air clarity Sulfur dioxide, nitrogen oxides Acidification H+ moles equivalent Avoided damage costs Nitrogen, phosphorous Eutrophication kg N equivalents Avoided treatment costs Chlorofluorocarbons Ozone depletion kg CFC-11 equivalents Fossil fuel depletion surplus MJ Water use Liters Flow Total energy use MJ Mineral extraction MJ Toxics Not monetized Resource Use GHG = Greenhouse gas WTP = Willingness to pay 22