LIFECYCLE BALANCE OF COSTS AND BENEFITS
FOR MANAGING LEFTOVER PAINT
SCOPE OF WORK FOR THE COST-BENEFIT ASSESSMENT
Acknowledgment:
This work was funded by
The National Paint and Coatings Association
on behalf of the multistakeholder
Paint Product Stewardship Initiative
Prepared and Submitted By:
ICF Consulting
November 18, 2005
Scope of Work (SOW)
The Consultant shall prepare individual cost-benefit analyses (CBA) of current methods
of managing leftover paint. These methods include:
1. Consumer-based Scenario
i. User-to-user reuse method
ii. Dry/stabilize and dispose method
2. Collection-based Scenario
i. Reuse method
ii. Recycle into consolidated paint method
iii. Recycle into reprocessed paint method
iv. Dry/stabilize and dispose method
Attachment A provides simplified flow charts that should be the basis for identifying
activities and assets involved in each method and their costs and benefits. The paths highlighted
in green correspond to the “pure methods” described in the LCA SOW. Paths highlighted in
blue, if any, illustrate the “modified methods.” The CBA will produce results for each pure
method, assuming management of 1,000 gallons of leftover paint and associated containers,
consistent with the LCA. Where the modified methods differ from the pure methods, the portion
of the 1,000 gallons of leftover paint not suitable for reuse or recycling will be managed by
dry/stabilize and disposal. For management by reuse, perhaps only 40% of the leftover paint
supply is suitable for reuse, and thus evaluation of the modified paint reuse method would also
include disposal of the 60% of the leftover paint supply that is not suitable for management by
reuse. The functional unit quantity and percentages of leftover paint suitable for reuse or
recycling used in the CBA must be identical to those used in the LCA. For each of these hybrid
cases, the CBA also will provide results, consistent with LCA assumptions.
This SOW does not include CBA of illegal or improper management methods such as
pouring paint down the drain, into sewers, onto land, or into waterways. Only leftover latex
architectural paints, excluding those that are oil-based (e.g., paints, stains, varnishes, etc.), as
well as used paint containers, are included. Specialty and other paints are not included in this
project. Of course, in estimating costs for managing leftover latex paint, the Consultant will
need to allocate shared costs for activities and assets that encompass latex paint, oil-based paint,
and other materials/wastes. For example, consumer transportation and travel time costs for
dropping off leftover latex paint will need to be allocated among other materials being
transported, such as leftover oil-based paint, consistent with the assumptions used in the LCA.
The associated consumer travel externalities also would be allocated in the same manner.
Because most of the current solid waste management infrastructure is used to manage different
types of materials/wastes, allocation of costs and externalities, consistent with the LCA, will be
required. Additionally, this project is focusing only on the leftover architectural paint that is
typically generated by homeowners painting their own homes and outbuildings, and home
painting contractors, most of which are small businesses. The primary concern for the PPSI
Page 1
work is the leftover residential paint that ends up being a burden on local government to manage
at the end of life.
The CBA shall analyze current management methods individually. For each of the six
pure methods and the four modified methods defined above, the Consultant shall determine
respective costs and benefits. Moreover, the Consultant shall assess costs and benefits for each
of the primary activities comprising each method. Quantitative results shall be collected in
spreadsheets. Aggregation of results should be avoided where their meaning cannot be
communicated as clearly as less aggregated results. Where costs or benefits cannot be monetized
credibly, the Consultant shall address them quantitatively or qualitatively. The monetized unit
costs and benefits for each method shall be usable as inputs to a tool that can characterize the
current state of affairs regarding leftover paint management; the Work Group, not the
Consultant, shall be responsible for determining the appropriate weightings of the methods in
such a tool. The monetized unit costs and benefits also may be used in a tool for analyzing the
costs and benefits of an alternative nationally coordinated system for managing leftover paint;
the Work Group, not the Consultant, will be responsible for defining and characterizing the
alternative system. The Consultant shall counsel the Work Group on the appropriate
incorporation and analysis of the results of this study into such an assessment of an alternative
system.
The CBA shall include current, nationally representative costs and benefits to
consumers/users of paint, to governments responsible for municipal waste management (whether
performed in-house or contracted out), to industry producing and selling virgin and/or recycled
paint, and to the environment and society at large. Attachment B is a typology of potentially
relevant costs and benefits, followed by tables illustrating which costs and benefits are most
applicable to the different management methods and how. The Consultant may propose changes
to the typology in Attachment B or use of a different typology as long as it includes social costs
and benefits and can be conducted so as to be consistent and reconcilable with the LCA. The
Consultant may consider "do nothing with the leftover paint" as the baseline for the analysis, or
shall propose an alternative baseline, if any. The Consultant should be prepared to discuss any
baseline issues with the Work Group following award.
Costs shall include full, lifecycle costs to the extent feasible. Costs shall not include
subsidies. See U.S. EPA, Full Cost Accounting for Municipal Solid Waste Management: A
Handbook (EPA 530-R-95-041, September 1997). The Consultant shall identify the degree to
which full, lifecycle costs are included for each cost item addressed.
Social/environmental costs and benefits (“externalities”) should be monetized to the
extent feasible and credible. Values should be based on the damage approach or the cost of
control; should reflect current, nationally representative values; and should be well documented.
Both (1) externalities associated with virgin paint production, sales, and use and (2) externalities
directly associated with the leftover paint management methods will be addressed. The LCA
shall provide separate results for both sets so that the sensitivity of the LCA and CBA results to
different displacement assumptions can be assessed. In addition, to facilitate monetization, the
LCA shall provide separate results for kWh energy use from fossil fuel power generation, car
and truck mileage, and emissions by type of facility/operation. Where externalities cannot be
Page 2
monetized credibly, the Consultant shall address them quantitatively or qualitatively, as in the
LCA.
The Consultant shall identify significant data gaps or deficiencies, assumptions, and
uncertainties. The Consultant shall identify the five (5) most important contributors to the costbenefit results for each method. For the five (5) most important contributors, the Consultant
shall perform sensitivity and uncertainty analyses, based on the likely bounds for the critical
values (see “Documentation” below).
The Consultant should budget for 12 monthly teleconferences and two face-to-face
meetings in Washington, D.C.
Relation to LCA
The CBA shall build-on and be consistent with the corresponding LCA (see LCA SOW).
For monetizing externalities, the CBA consultant shall use the assumptions and results of the
LCA. For other costs/benefits, the CBA consultant shall employ the assumptions underlying the
LCA. For example, in quantifying labor hours required for transportation, the CBA consultant
shall use the estimated average distance in miles employed by the LCA for the transportation
being costed. Assumptions regarding displacement of virgin paint by reused or recycled paint
should be the same as used in the LCA.
The CBA analysis shall be performed for a functional unit as defined by the LCA and
expressed as a collection of cans using a defined quantity of storage space that together contain a
quantity of leftover paint to be managed. The LCA will quantify the types and sizes of the
assortment of containers, as well as the amount of reusable or recyclable leftover paint in the
assortment of cans (with the quantities in individual cans adding up to the total quantity to be
managed), and also the types and sizes of containers that contain unusable paint and the total
quantity of unusable paint.
Once the LCA consultant figures out the distribution of each type of can, the CBA
Consultant can figure out the square feet of floor space the leftover paint will occupy. The LCA
will also determine whether the containers are disposed with the paint, recycled, or reused in
some other way.
The CBA is expected to address costs not included in the LCA, such as labor costs and
the depreciation costs of assets.
Documentation
The consultant shall document and characterize all data elements, assumptions, and
methods not otherwise described in the LCA report. In doing so, the consultant can utilize a data
matrix. For the data, the CBA consultant shall characterize each item in terms of the following:
$ Age of the data and whether it is a snapshot or is based on a time period.
Page 3
$ Geographical representativeness of the data, whether it is U.S. national, state,
or local in derivation.
$ Process representativeness, such as labor staffing, recycling technology.
$ Sample completeness if the data do not derive from a statistically-based
sample or from a census.
$ Central tendency if the data represent a mean or median, then state what
would be the likely upper and lower bounds that would capture two-thirds of
the variance what bounds would capture 90%, and the bases for this statement.
$ Source of the data, such as NPCA, U.S. government, a specific model, R.S.
Means, or best professional judgment (of whom).
In addition, the Consultant shall document its assumptions and calculation methods (e.g.,
allocations of joint costs). For example, to estimate driving time between locations, the
Consultant may take the average distance in miles from the LCA and divide by an hours/mile
value. If so, this method of estimating driving time shall be explicitly documented and the
hours/mile value shall be described in terms of the data quality matrix described above.
At the conclusion of the project, the CBA Consultant shall deliver the fully-documented
spreadsheet model and the required results.
Page 4
ATTACHMENT A:
FLOW CHARTS OF MANAGEMENT METHODS
Page A-1
Page A-2
Page A-3
Page A-4
Page A-5
Page A-6
Page A-7
ATTACHMENT B
SUMMARY OF POTENTIALLY RELEVANT TYPES OF COSTS AND BENEFITS
I.
COSTS
Costs to Consumers
time
transportation
storage space
drying materials
exposure to or venting of fumes
price of recycled/reused paint
Costs to Government/Industry for MSW Management
labor (inc. “volunteers”)
overhead
program outreach
building space/land use
transportation (inc. collection)
equipment use
materials (e.g., containers, packaging)
building energy use
equipment energy use
solid waste
Costs to Paint and Coatings Industry
recycling plants and sales of recycled paint*
changes in welfare (or lost profits) on virgin paint sales**
Social/Environmental Costs
direct and indirect emissions to air
vehicles
equipment
buildings
land disposal and combustion
paint drying (direct emissions only)
releases to water
traffic congestion/accidents
land use
*
**
for recycling options only
for reuse and recycling options only
Page B-1
SUMMARY OF TYPES OF COSTS AND BENEFITS
(continued)
fuel consumption (by type)
energy consumption (by type)
material use (by type)
II.
BENEFITS
Benefits to Consumers
-psychic benefits
-increased space in homes, garages, sheds
-consumption of free or low-priced reusable/recycled paint*
-avoided travel costs for buying virgin paint*
-avoided cost of purchasing virgin paint*
Benefits to Paint and Coatings Industry
-public image benefits
-expanded paint markets and profits therefrom**
Benefits to Government/Industry from MSW Management
-public image benefits
-consumption of free or low-priced paint*
-sale of recyclable metals
-sale of recovered energy
Social/Environmental Benefits (NEC)
-avoided costs and impacts of producing, selling, purchasing, and using virgin paint*
-avoided costs and impacts of virgin steel*
*
**
for reuse and recycling options only
for recycling options only
Page B-2
Page B-3
METHOD #1
(continued)
OVERVIEW OF COSTS AND BENEFITS FOR
PAINT MANAGEMENT METHOD #1
User-to-User Reuse
This method assumes that reusable paint is delivered directly by consumers with leftover
paint to other consumers. This method assumes that the reusable paint actually will be reused by
receiving consumers. In the modified method, the non-reusable fraction will be disposed
through consumer-based dry/stabilize and disposal.
Leftover Paint Management Method #1 – Consumer-Based Reuse
Costs
Benefits
To consumer
 Travel cost to and from
recipient
 Drying of paint
 Travel costs to and from
disposal point
To consumer
 Increased space in homes,
garages, and sheds
 Reused paint
 Avoided travel cost for
virgin paint
 Avoided purchase price for
virgin paint
To environment
 Burdens from consumer
travel
 Burdens from reuse of paint
 Emissions from drying prior
to disposal
 Burdens of collecting,
incinerating/landfilling, and
transport of paint from
households
To environment
 Avoided burdens from
virgin paint production
displaced by reused paint
 Avoided burden from
consumer travel for virgin
paint
 Avoided burden from use
of virgin paint
To government
 Collection and transport
costs for paint disposed by
households
 Incinerator facility costs
 Landfill facility costs
To government
 Sale of recoverable metals
 Sale of recyclable energy
To industry
 Foregone profits from sale of
new paint displaced by
reused paint
To industry
COSTS OF MANAGEMENT METHOD #1:
Costs to Consumers:
Travel costs to and from recipient: The cost-benefit analysis of this method should
include an estimate of the costs of consumers’ travel. The successful bidder should use average
Page B-4
METHOD #1
(continued)
distances to be traveled by consumers from the LCA to determine the average transportation and
travel time costs associated with this management method. Transportation costs include the
direct costs (e.g., fuel, maintenance) associated with operating an automobile and its depreciation
and should be expressed as an average cost per mile traveled. Travel time costs involve
calculations of the forgone opportunity costs of the consumer’s time, which otherwise could have
been devoted to work or leisure. The successful bidder should develop and justify its estimates
for transportation and travel time costs.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumer’s time)
Drying of paint: This method requires consumers to dry out their leftover paint prior to
disposal. This method imposes several costs on consumers. One of these costs is the labor time
needed for this entire process. Another cost is the purchase of drying agents used to aid in the
drying of leftover paint. A third category of costs relates to reductions in indoor air quality from
the drying of paint within consumers’ homes, if that is where the drying takes place.
The consumer labor time cost is the product of the required time (including time to
procure drying agents, set out, monitoring, and gathering up dried paint) multiplied by the
appropriate rate.
Costs for drying agents can be estimated by the market price of products (e.g., cat litter)
that can be used for drying out paint. The price of these products times the required quantity
(from the LCA) equals the cost that consumers would face in obtaining and using these products
to dry their paint.
For the costs related to decreases in indoor air quality, the successful bidder should
consider potential exposure to emissions from drying paint (as estimated by the LCA), and any
potential exposure risks, such as the chance of injury/illness resulting from exposure and the
estimated costs of an episode of injury/illness. These potential injury/illness costs can then be
multiplied by the probability of injury/illness from exposure to obtain an estimate of these costs.
Alternatively, the costs of venting the vapors (e.g., by a fan) may be used as a proxy.
Types of costs:
$ Labor costs
$ Cost of drying agents
$ Cost of indoor air quality reduction (health impacts or cost of controls)
Consumer self-haul travel to and from disposal: This method recognizes that consumers
may need to self-haul their dried paint to a collection or disposal paint. The successful bidder
Page B-5
METHOD #1
(continued)
should use average distances to be traveled by consumers from the LCA to determine the
average transportation and travel time costs associated with this management method. Travel
costs include the costs (e.g., fuel, maintenance) associated with operating an automobile and its
depreciation and should be expressed as an average cost per mile traveled. Travel time costs
involve calculations of the forgone opportunity costs of the consumer’s time, which otherwise
could have been devoted to work or leisure. The successful bidder should develop and justify its
estimates for transportation and travel time costs.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumer’s time)
Costs to Environment:
Burdens (externalities) from consumer travel: This management method includes
burdens to the environment from consumers’ driving to and from leftover paint recipients. The
successful bidder should estimate the “external” cost of this activity by, at a minimum,
multiplying the number of miles driven (as determined by the LCA) by an estimate of the
average external cost of vehicle travel. This estimate should be based on a review of information
on the external costs of automobile travel, and the successful bidder should be prepared to justify
the numbers used for this cost estimate.
Types of costs:
$ External costs from use of automobiles (e.g., air emissions)
Burdens from reuse of paint: The successful bidder will consider whether/how to
monetize releases to the environment and/or energy use/loss from residences, as estimated by the
LCA.
Types of costs:
$ External costs of reusing leftover paint
Emissions from drying prior to disposal: The successful bidder will consider
whether/how to monetize emissions to the environment and/or energy use/loss from residences,
which will be estimated by the LCA.
Types of costs:
$ External costs of drying paint (e.g., emissions)
Page B-6
METHOD #1
(continued)
Burdens (externalities) from consumer travel: This management method includes
burdens to the environment from consumers’ self-haul of leftover paint for disposal. The
successful bidder should estimate the “external” cost of this activity by, at a minimum,
multiplying the number of miles driven (as determined by the LCA) by an estimate of the
average external cost of vehicle travel. This estimate should be based on a review of information
on the external costs of automobile travel, and the successful bidder should be prepared to justify
the numbers used for this cost estimate.
Types of costs:
$ External costs from use of automobiles (e.g., air emissions)
Burdens of collecting, transporting, and incinerating/landfilling: This management
method also includes collection, transport, and incinerator/landfill disposal of paint after drying.
The successful bidder would develop estimates of external costs for units of household waste for
collection and transport to incinerators/landfills. This cost should be based on reviews of
literature on the external costs of MSW management, transport, and energy use, including threats
to groundwater resources and air emissions.
Types of costs:
$ External costs of collection, transport, and disposal
Costs to Government
Collection, transport, and disposal costs for dried paint: Estimates of the full lifecycle
costs of dried paint collection, transport, and disposal should include the per-unit cost of
collecting, transporting, and processing dried paint from households through the
incinerator/landfill. Costs for disposal in a landfill should also estimate the cost of using up
landfill space, thus accelerating the date at which the landfill will need to be closed and replaced.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, energy use, materials, transportation)
Costs to Industry:
Foregone profits from sale of new paint displaced by reuse: This management method
will result in displacement of a quantity of new paint (as determined for the LCA) by the paint
that is being reused by consumers (as determined for LCA). The successful bidder should
estimate this cost by taking the LCA’s estimate of the amount and type of new paint that would
be displaced by reuse of the leftover paint, reflecting the ratio at which new paint could be
Page B-7
METHOD #1
(continued)
expected to be displaced by reused paint. Multiplying an estimate of the average profit for the
sale of comparable new paint by the estimated amount of displaced paint would result in an
estimate of the forgone industry profits from the reuse of paint.
Types of costs:
$ Foregone profits (for displaced new paint sales)
BENEFITS OF MANAGEMENT METHOD #1:
Benefits to Consumer:
Reused paint: Consumers would receive a benefit from this management method of free
paint for reuse. These benefits should be estimated by valuing the amount of paint expected to
be recovered for reuse by consumers. Benefits from the reused paint can be estimated as the
market price for a unit of new paint comparable in quality to the reused paint. Multiplication of
the amount of paint expected to be reused (from the LCA) by the estimated unit price for the
reused paint would result in an estimate of the total benefits to the consumer from reused paint.
Types of benefits:
$ Reused paint (measured by market price of comparable new paint)
Increased space in homes, garages, and sheds: Consumers would receive a benefit from
this management method of increased space in their homes, garages, and sheds arising from no
longer needing to store leftover paint. The successful bidder should use the LCA estimates to
determine the amount of space consumers would reclaim by this management method and should
then develop an estimate of the average price per square foot for space in residential homes
(basements, etc.), garages, and sheds. Multiplication of the amount of space gained by
consumers by the average price per square foot estimate would result in an estimate of this
benefit.
Types of benefits:
$ Increased space (measured by price per square foot of space in homes)
Avoided travel costs to and from retail outlet for virgin paint and avoided purchase price:
By reusing leftover paint, consumers can avoid the travel costs and purchase price for virgin
paint, assuming displacement. The successful bidder should use the average distance traveled by
consumers from the LCA to determine the average transportation and travel time costs avoided
due to this management method. Avoided transportation costs include the costs associated with
operating an automobile and its depreciation and should be expressed as an average cost per mile
Page B-8
METHOD #1
(continued)
traveled. Avoided travel time costs involve calculations of the opportunity costs of the
consumer’s time, which can be devoted to work or leisure.
Types of benefits:
$ Avoided transportation costs (cost of operating and using car)
$ Avoided travel time costs (consumer’s time)
$ Avoided purchase price for virgin paint
Benefits to Environment:
Avoided burdens of virgin paint production displaced by reused paint: This management
method results in production of virgin paint being reduced by the leftover paint reused by
consumers. These benefits can be estimated through multiplying the amount of virgin paint
displaced by the reuse program (as estimated by the LCA) by an estimate of the costs of the
environmental burdens of the production of virgin paint, based on the LCA results. These costs
include the external costs of raw materials extraction, transportation, and processing for virgin
paint and paint containers, which will be modelled in the LCA. The successful bidder should
monetize all or some of these environmental costs to derive an estimate of the total
environmental benefits arising from displacement of virgin paint production.
Types of benefits:
$ Avoided external production costs for virgin paint
Avoided burdens from consumer travel: Assuming displacement of virgin paint, this
management method includes avoided burdens to the environment from consumers’ traveling to
retail stores to purchase virgin paint. The successful bidder should estimate the benefit to the
environment by multiplying the number of miles driven (as determined by the LCA) by an
estimate of the average external cost of vehicle travel.
Types of benefits:
$ Avoided external costs from consumer travel (e.g., air emissions)
Avoided burdens from use of virgin paint: Assuming displacement, the
successful bidder will consider whether/how to monetize the benefit of avoided releases
to the environment from use of virgin paint, as estimated by the LCA.
Types of benefits:
$ Avoided external costs from use of virgin paint
Page B-9
METHOD #1
(continued)
Benefits to Government:
Sale of recoverable energy: This management method will produce benefits from the
sale of electricity generated from the incineration of the leftover paint and additives sent to
incinerators (as estimated by the LCA). The successful bidder should value the amount of
electricity expected to be generated from the incineration of the leftover paint, as estimated by
the LCA. Multiplication of the estimated market price of electricity by the amount of electricity
expected to be generated would result in the expected benefits from electricity generation.
Types of benefits:
$ Recovered electricity (measured by market price)
Sale of recoverable metals: This management method will produce benefits from the sale
of metals recovered from paint containers for the leftover paint sent to incinerators (as estimated
by the LCA). The successful bidder should estimate these benefits by using the LCA’s amount
and kind of metals to be recovered from the leftover paint cans sent to incinerators.
Multiplication of the amount of the various metals by their prevailing market prices will result in
an estimate of this benefit category.
Types of benefits:
$ Recovered metals (measured by market price)
Page B-10
Page B-11
METHOD #2
(continued)
OVERVIEW OF COSTS AND BENEFITS FOR
PAINT MANAGEMENT METHOD #2
Consumer-Based Dry/Stabilize for Disposal
This method assumes that 100% of the functional unit of leftover paint is disposed of by
the consumer through drying/stabilizing prior to either self-haul to disposal sites or curbside
collection with mixed waste.
Leftover Paint Management Method #2 – Consumer-Based Drying for Disposal
Costs
Benefits
To consumer
 Drying of paint
 Travel costs to and from
disposal point
To consumer
To environment
 Emissions from drying
 Burdens from consumer
travel
 Burdens of collecting,
incinerating/landfilling, and
transport of paint from
households
To environment
To government
 Collection and transport
costs for paint disposed by
households
 Incinerator facility costs
 Landfill facility costs
To government
To industry
 Increased space in homes,
garages, and sheds
 Sale of recoverable metals
 Sale of recyclable energy
To industry
COSTS OF MANAGEMENT METHOD #2:
Costs to Consumers:
Drying of paint: This method requires consumers to dry out their leftover paint prior to
disposal. This method imposes several costs on consumers. One of these costs is the labor time
needed for this entire process. Another cost is the purchase of drying agents used to aid in the
drying of leftover paint. A third category of costs relates to reductions in indoor air quality from
the drying of paint within consumers’ homes, if that is where the drying takes place.
Page B-12
METHOD #2
(continued)
The consumer labor time cost is the product of the required time (including time to
procure drying agents, set out, monitoring, and gathering up dried paint) multiplied by the
appropriate rate.
Costs for drying agents can be estimated by the market price of products (e.g., cat litter)
that can be used for drying out paint. The price of these products times the required quantity
(from the LCA) equals the cost that consumers would face in obtaining and using these products
to dry their paint.
For the costs related to decreases in indoor air quality, the successful bidder should
consider potential exposure to emissions from drying paint (as estimated by the LCA), and any
potential exposure risks, such as the chance of injury/illness resulting from exposure and the
estimated costs of an episode of injury/illness. These potential injury/illness costs can then be
multiplied by the probability of injury/illness from exposure to obtain an estimate of these costs.
Alternatively, the costs of venting the vapors (e.g., by a fan) may be used as a proxy.
Types of costs:
$ Labor costs
$ Cost of drying agents
$ Cost of indoor air quality reduction (health impacts or cost of controls)
Consumer self-haul travel to and from disposal. This method recognizes that consumers
may need to self-haul their dried paint to a collection or disposal paint. The successful bidder
should use average distances to be traveled by consumers from the LCA to determine the
average transportation and travel time costs associated with this management method. Travel
costs include the costs (e.g., fuel, maintenance) associated with operating an automobile and its
depreciation and should be expressed as an average cost per mile traveled. Travel time costs
involve calculations of the forgone opportunity costs of the consumer’s time, which otherwise
could have been devoted to work or leisure. The successful bidder should develop and justify its
estimates for transportation and travel time costs.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumer’s time)
Costs to Environment:
Emissions from drying/stabilizing: The successful bidder will consider whether/how to
monetize emissions to the environment and/or energy use/loss from residences, which will be
estimated by the LCA.
Page B-13
METHOD #2
(continued)
Types of costs:
$ External costs of drying/stabilizing paint (e.g., emissions)
Burdens (externalities) from consumer travel: This management method includes
burdens to the environment from consumers’ self-haul of leftover paint. The successful bidder
should estimate the “external” cost of this activity by, at a minimum, multiplying the number of
miles driven (as determined by the LCA) by an estimate of the average external cost of vehicle
travel. This estimate should be based on a review of information on the external costs of
automobile travel, and the successful bidder should be prepared to justify the numbers used for
this cost estimate.
Types of costs:
$ External costs from use of automobiles (e.g., air emissions)
Burdens of collecting, transporting, and incinerating/landfilling: This management
method also includes collection, transport, and incinerator/landfill disposal of paint after drying.
The successful bidder would develop estimates of external costs for units of household waste for
collection and transport to incinerators/landfills. This cost should be based on reviews of
literature on the external costs of MSW management, transport, and energy use, including threats
to groundwater resources and air emissions.
Types of costs:
$ External costs of collection, transport, and disposal
Costs to Government
Collection, transport, and disposal costs for dried paint: Estimates of the full lifecycle
costs of dried paint collection, transport, and disposal should include the per-unit cost of
collecting, transporting, and processing dried paint from households through the
incinerator/landfill. Costs for disposal in a landfill should also estimate the cost of using up
landfill space, thus accelerating the date at which the landfill will need to be closed and replaced.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, energy use, materials, transportation)
Page B-14
METHOD #2
(continued)
BENEFITS OF MANAGEMENT METHOD #2:
Benefits to Consumer:
Increased space in homes, garages, and sheds: Consumers would receive a benefit from
this management method of increased space in their homes, garages, and sheds arising from no
longer needing to store their leftover paint. The successful bidder should use LCA estimates of
total cans in the functional unit to determine the amount of space consumers would reclaim by
this management method and should then develop an estimate of the average price per square
foot for space in residential homes (basements, etc.), garages, and sheds. Multiplication of the
amount of space gained by consumers by the average price per square foot would result in an
estimate of this benefit.
Types of benefits:
$ Increased space (measured by price per square foot of space in homes)
Benefits to Government:
Sale of recoverable energy: This management method will produce benefits from the
sale of electricity generated from the incineration of the leftover paint and additives sent to
incinerators (as estimated by the LCA). The successful bidder should value the amount of
electricity expected to be generated from the incineration of the leftover paint, as estimated by
the LCA. Multiplication of the estimated market price of electricity by the amount of electricity
expected to be generated would result in the expected benefits from electricity generation.
Types of benefits:
$ Recovered electricity (measured by market price)
Sale of recoverable metals: This management method will produce benefits from the sale
of metals recovered from paint containers for the leftover paint sent to incinerators (as estimated
by the LCA). The successful bidder should estimate these benefits by using the LCA’s amount
and kind of metals to be recovered from the leftover paint cans sent to incinerators.
Multiplication of the amount of the various metals by their prevailing market prices will result in
an estimate of this benefit category.
Types of benefits:
$ Recovered metals (measured by market price)
Page B-15
Page B-16
METHOD #3
(continued)
OVERVIEW OF COSTS AND BENEFITS FOR
PAINT MANAGEMENT METHOD #3
Collection-Based Reuse
This method assumes that paint is driven by consumers to transfer stations or placed in
recycling bins for collection and transport to locations where other consumers can pick up
reusable paint. In the modified method, the non-reusable fraction will be disposed after drying/
stabilization.
Leftover Paint Management Method #3 –Collection-Based Reuse
Costs
Benefits
To consumer
 Travel cost to and from
HHW/transfer station/MRF
for consumers dropping off
paint
 Travel cost to and from
HHW/transfer station/MRF
for consumers seeking paint
for reuse
 Price of reused paint
To consumer
 Low-cost reused paint
 Increased space in homes,
garages, and sheds
 Avoided travel cost for
virgin paint
 Avoided purchase price of
virgin paint
To environment
 Burdens from consumer
travel
 Burdens from reuse of paint
 Burdens from collection and
transport
 Burdens from HHW/transfer
station/MRF
 Burdens of incinerating/
landfilling of non-reusable
paint
To environment
 Avoided burdens of virgin
paint production displaced
by reused paint
 Avoided burdens from
consumer travel for virgin
paint
 Avoided burdens from use
of virgin paint
To government
 Collection and transport costs
for leftover paint from
households
 HHW/transfer station/MRF
costs
 Incineration facility costs
 Landfill facility costs
 Transport costs
To government
 Sale of recoverable energy
and recyclable metals
To industry
 Foregone profits from new
paint displaced by reused
paint
To industry
Page B-17
METHOD #3
(continued)
COSTS OF MANAGEMENT METHOD #3:
Costs to Consumers:
Travel costs to and from HHW/transfer station/MRF for paint drop-offs: This method
recognizes that consumers may need to self-haul their paint to a collection point. The costbenefit analysis of this method thus includes an estimate of the costs of consumers’ travel. The
successful bidder should use average distances to be traveled by consumers from the LCA and
determine the average transportation and travel time costs associated with this management
method. Transportation costs include the costs associated with operating an automobile and its
depreciation and should be expressed as an average cost per mile traveled. Travel time costs
involve calculations of the foregone opportunity costs of the consumer’s time, which otherwise
could have been devoted to work or leisure.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumer’s time)
Travel costs to and from HHW/transfer station/MRF and fee for paint pick-up: This
method requires that consumers drive to and from a facility to shop for and pick up paint for
reuse, and thus includes travel costs to consumers wishing to reuse paint. The successful bidder
should use the average distance traveled by consumers from the LCA to determine the average
transportation and travel time costs associated with this management method. Transportation
costs include the costs associated with operating an automobile and its depreciation and should
be expressed as an average cost per mile traveled. Travel time costs involve calculations of the
forgone opportunity costs of the consumer’s time, which otherwise could have been devoted to
work or leisure.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumer’s time)
$ Fees paid for paint, if any
Costs to Environment:
Burdens from consumer travel: This management method includes burdens to the
environment from consumers’ driving to and from the drop-off and pick-up (e.g., at HHW/
transfer station/MRF). The successful bidder should estimate the cost to the environment of this
activity by multiplying the number of miles driven (as determined by the LCA) by an estimate of
the average external cost of vehicle travel. This estimate should be based on a review of
information on the external costs (e.g., air emissions) caused by automobile travel.
Page B-18
METHOD #3
(continued)
Types of costs:
$ External costs from consumer travel (e.g., air emissions)
Burdens from reuse of leftover paint: The successful bidder will consider whether/how
to monetize release to the environment and/or energy use/loss from residences, as estimated by
the LCA.
Types of costs:
$ External costs of reusing leftover paint
Burdens from collection: This management method includes collection of a percentage
of the full functional unit of paint. The successful bidder would provide estimates of the external
costs of collection. This cost should be based on reviews of literature of the external costs of
collection and transport.
Types of costs:
$ External costs of collection
Burdens of swap program: This management method includes the costs of running swap
programs and managing waste generated from swap programs. This includes the amount of the
functional unit of leftover paint that must be disposed after being rejected for inclusion in the
swap program as well as reusable paint initially accepted by the swap program but not chosen by
any customers. The successful bidder would provide estimates of the external costs associated
(1) with staffing and managing the swap program and (2) with drying/stabilizing and
transporting waste to incinerators/landfills from swap programs, as estimated by the LCA. This
cost estimate should also include the environmental burdens from transportation of waste from
the swap program through final disposal.
Types of costs:
$ External swap program, drying/stabilizing, and transport costs
Burdens of incineration/landfilling of paint for the percentage of the functional unit of
paint that is not reused. The successful bidder would provide estimates of the external costs
associated with contributing waste to incinerators/landfills, as estimated by the LCA. These
costs include increased air pollution, which may contribute to health and environmental
problems. These estimates would be based on studies on the external costs of pollution from
incinerating/landfilling.
Page B-19
METHOD #3
(continued)
Types of costs:
$ External incineration/landfill costs (e.g., air emissions)
Costs to Government:
Collection costs for leftover paint from households: This management method calls for a
percentage of the functional unit of leftover paint to be collected curbside from households in
recycling bins (as estimated by the LCA). This category of costs would include the full, lifecycle
costs of picking up units of liquid and dried paint in cans within the existing recycling
infrastructure. The successful bidder should derive this cost estimate through review of the
literature on the current costs of curbside recycling programs, including program outreach. An
estimate of the per-unit collection cost multiplied by the amount of the functional unit of paint to
be collected curbside would result in an estimate of the total costs for this category.
Types of costs:
$ Asset costs (equipment, facilities)
$ Activity costs (labor, energy use, materials, transportation)
HHW/transfer station/MRF costs: This management method includes the costs of
operating and maintaining facilities for the leftover paint dropped off by consumers. The
successful bidder should provide estimates of the full lifecycle costs of operating these facilities.
The successful bidder should review current data for generating these cost estimates and provide
an explanation and defense of the numbers selected for the estimate.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, energy use, materials, transportation)
Incinerator facility costs: This management method includes the cost to government of
drying/stabilizing and incinerating the portion of the functional unit of leftover paint that is sent
to an incinerator (as estimated by the LCA). The successful bidder should include an estimate of
these costs, including transporting the waste to the incinerator facility, drying/stabilization, and
all the asset and activity costs associated with incinerating the waste and transporting residuals
(e.g., ash) for landfilling.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation)
Page B-20
METHOD #3
(continued)
Cost of landfilling waste: This management method includes the landfill disposal of
(1) the dried/stabilized paint not suitable for nor taken for reuse and (2) the residual ash from the
incineration of a portion of the functional unit of leftover paint (as estimated by the LCA). The
successful bidder should provide cost estimates of the full lifecycle costs of managing (including
drying/stabilizing) and disposing of excess paint and incinerator ash, including transportation to
the landfill. Another component of these costs includes the cost of using up landfill space, in
terms of moving up the date at which the landfill will become full and needs to be replaced.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation)
Costs to Industry:
Foregone profits from sale of new paint displaced by reuse: This management method
will result in displacement of sales of new paint by the paint that is being reused by consumers .
The successful bidder should estimate this cost by taking the LCA’s estimate of the amount of
new paint that would be displaced by reuse, reflecting the ratio at which new paint could be
expected to be displaced by reused paint. Multiplying an estimate of the average profit for the
sale of comparable new paint by the LCA’s estimate of the amount of new paint displaced would
result in an estimate of the forgone industry profits from the reuse of paint.
Types of costs:
$ Foregone profits for displaced new paint sales
BENEFITS OF MANAGEMENT METHOD #3:
Benefits to Consumer:
Reused paint: Consumers would receive a benefit from this management method of low
cost or free paint for reuse. Benefits from the reused paint can be estimated as the market price
for a unit of new paint comparable in quality to the reused paint, which is equal to the
consumer’s willingness to pay for the reused paint. Multiplication of the amount of paint
expected to be reused (from the LCA) by the estimated unit price for the reused paint would
result in an estimate of the total benefits to the consumer from reused paint.
Types of benefits:
$ Reused paint (measured by market price of comparable new paint)
Page B-21
METHOD #3
(continued)
Increased space in homes, garages, and sheds: Consumers would receive a benefit from
this management method of increased space in their homes, garages, and sheds from no longer
needing to store their unwanted leftover paint. The successful bidder should use the LCA
estimates to determine the amount of space consumers would reclaim by this management
method, and then develop an estimate of the average price per square foot for space in residential
homes (basements, etc.), garages, and sheds. Multiplication of the amount of space gained by
consumers by the average price per square foot estimate would result in an estimate of this
benefit.
Types of benefits:
$ Increased space (measured by price per square foot of space in homes)
Avoided travel costs to and from retail outlet for virgin paint and avoided purchase price:
By reusing leftover paint, consumers can avoid the travel costs and purchase price for virgin
paint, assuming displacement. The successful bidder should use the average distance traveled by
consumers from the LCA to determine the average transportation and travel time costs avoided
due to this management method. Avoided transportation costs include the costs associated with
operating an automobile and its depreciation and should be expressed as an average cost per mile
traveled. Avoided travel time costs involve calculations of the opportunity costs of the
consumer’s time, which can be devoted to work or leisure.
Types of benefits:
$ Avoided transportation costs (cost of operating and using car)
$ Avoided travel time costs (consumer’s time)
$ Avoided purchase price for virgin paint
Benefits to Environment
Avoided burdens of virgin paint production displaced by reused paint: This management
method results in avoided production of virgin paint by the paint reused through the program.
These benefits can be estimated through multiplying the amount of virgin paint displaced by the
reuse program (as estimated by the LCA) by an estimate of the costs of the environmental
burdens of the production of virgin paint. These costs include the environmental costs of raw
materials extraction, transportation, and processing for virgin paint and paint containers. The
successful bidder should take the LCA estimate of the environmental benefits arising from
displacement of virgin paint production and monetize to the extent feasible and credible.
Types of benefits:
$ Avoided external production costs of virgin paint
Page B-22
METHOD #3
(continued)
Avoded burdens from consumer travel: Assuming displacement of virgin paint, this
management method includes avoided burdens to the environment from consumers’ traveling to
retail stores to purchase virgin paint. The successful bidder should estimate the benefit to the
environment by multiplying the number of miles driven (as determined by the LCA) by an
estimate of the average external cost of vehicle travel.
Types of benefits:
$ Avoided external costs from consumer travel (e.g., air emissions)
Avoided burdens from use of virgin paint: Assuming displacement, the successful bidder
will consider whether/how to monetize the benefit of avoided releases to the environment from
use of virgin paint, as estimated by the LCA.
Types of benefits:
$ Avoided external costs from use of virgin paint
Benefits to Government:
Sale of recoverable energy: This management method will produce benefits to the
government from the sale of electricity generated from the incineration of the leftover paint sent
to the incinerator (as estimated by the LCA). Estimating these benefits would include valuing
the amount of electricity expected to be generated from the incineration of the leftover paint
(from the LCA). Multiplication of the market price of electricity by the amount of expected
electricity to be generated would result in the expected benefits from electricity generation.
Types of benefits:
$ Recovered electricity (measured by market price)
Sale of recoverable metals: This management method will produce benefits to the
government from the sale of metals recovered from paint containers for the leftover paint sent to
incinerators (as estimated by the LCA). The successful bidder should estimate the market value
of the amount and kind of metals to be recovered from the leftover paint sent to the incinerator.
Multiplication of the amount of the various metals (from the LCA) by their prevailing market
prices will result in an estimate of this benefit category.
Types of benefits:
$ Recovered metals (measured by market price)
Page B-23
Page B-24
METHOD #4
(continued)
OVERVIEW OF COSTS AND BENEFITS FOR
PAINT MANAGEMENT METHOD #4
Collection-Based Recycling through Batch and Blend
This method assumes that paint is driven by consumers (self-haul) or placed curbside for
collection with other recyclables. In the modified method, the non-recyclable fraction will be
disposed after drying/stabilization.
Method #4 –Collection-Based Recycling to Paint (Consolidated)
Costs
Benefits
To consumer
 Travel cost to and from HHW/
transfer station/MRF
 Travel cost to and from retail
store
 Price of recycled paint
To consumer
 Increased space in
homes, garages, and
sheds
 Recycled paint use
 Avoided travel cost for
virgin paint
 Avoided purchase price
for virgin paint
To environment
 Burdens from consumer travel
 Burdens from use of recycled
paint
 Burdens from collection and
management of recyclables
 Burdens from production and
sale of consolidated paint
 Burdens of waste management
from non-recyclables
To environment
 Avoided burdens of
virgin paint production
displaced by
consolidated paint
 Avoided burdens of
consumer travel for
virgin paint
 Avoided burdens from
use of virgin paint
To government
 Collection costs of leftover paint
from households
 Costs of managing recyclable
paint
 Management of non-recyclable
paint collected or dropped off
To government
 Sale of recovered
energy
 Sale of recovered
metals
To industry
 Production and sales costs for
consolidated paint
 Foregone profits from sale of
virgin paint displaced by
consolidated paint
To industry
 Revenues from sale of
consolidated paint
COSTS OF MANAGEMENT METHOD #4:
Costs to Consumers:
Page B-25
METHOD #4
(continued)
Travel costs to and from HHW/transfer station/MRF: This method requires that a
percentage of the functional unit of paint be taken by consumers to a HHW/transfer station/MRF.
The costs of this activity should include an estimate of the consumer’s travel time and costs. The
successful bidder should use average distances to be traveled by consumers (from the LCA) to
determine the average transportation and travel time costs associated with this management
method. Transportation costs include the costs associated with operating an automobile and its
depreciation, and should be expressed as an average cost per mile traveled. Travel time costs
involve calculation of the forgone opportunity costs of the consumer’s time, which otherwise
could have been devoted to work or leisure. The successful bidder should develop and defend
estimates for transportation and travel time costs used in the calculation of these costs to
consumers.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumer’s time)
Travel cost to and from retail store and price of paint: The LCA will estimate consumer
travel distances for purchasing the appropriate quantities of recycled paint.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumer’s time)
$ Price paid for recycled paint
Costs to Environment:
Burdens from consumer travel: This management method includes burdens to the
environment from consumers’ driving their leftover paint to a HHW/transfer station/MRF and
traveling to retail stores to purchase recycled paint. The successful bidder should estimate the
cost to the environment of this activity by multiplying the number of miles driven (as determined
by the LCA) by an estimate of the average external cost of vehicle travel.
Types of costs:
$ External costs from consumer travel (e.g., air emissions)
Burdens from use of recycled paint: The successful bidder will consider whether/how to
monetize releases to the environment and/or energy use/loss from residences, as estimated by the
LCA.
Page B-26
METHOD #4
(continued)
Types of costs:
$ External costs of using recycled paint
Burdens from production, transport, and sale of consolidated paint: This management
method includes recycling of existing leftover paint to make a recycled consolidated paint
product. Costs to the environment for this method should thus include the environmental
burdens from the production of consolidated paint (as determined by the LCA). This would
include burdens of land use, energy, water, raw materials, and emissions to air and water from
the consolidation process, and burdens from the management and disposal of the resulting solid
waste from the production of the consolidated paint.
This method also includes the transport and sale of the recycled paint. The LCA will
estimate transport distances to sales locations and consumer travel distances for purchasing the
appropriate quantities of recycled paint; the CBA will assess associated externalities. If the LCA
captures burdens of on-shelf time at retail locations for the recycled paint, the CBA should, at a
minimum, consider the associated energy use externalities as well.
Types of costs:
$ External production, transport, and sales costs (e.g., travel, releases to air and
water, energy use, land and materials use)
Burdens of waste management for non-recyclable paint: This management method
includes management of a percentage of the full functional unit of paint not sent to the recycling
plant after collection or consumer drop-off because that portion is not suitable for recycling. The
successful bidder would provide estimates of the external costs of drying/stabilization, transport,
and disposal of this non-recyclable paint, as estimated by the LCA. This cost should be based on
reviews of literature of the external costs of transport and disposal, including threats to
groundwater resources and air emissions.
Types of costs:
$ External costs of drying/stabilization, transportation, and disposal (e.g., air
and water emissions)
Burdens of collecting recyclable paint: This management method includes collection of a
percentage of the full functional unit of paint. The successful bidder would provide estimates of
the external costs of collection. This cost should be based on reviews of literature of the external
costs of collection and transport.
Types of costs:
Page B-27
METHOD #4
(continued)
$ External costs of collection
HHW/Transfer Station/MRF costs: This management method includes the costs of
operating a HHW/transfer station/MRF for the leftover paint dropped off by or collected from
consumers for recycling. The successful bidder should provide estimates of the external costs of
these facilities. The successful bidder should review the literature on external costs of such
facilities for generating these cost estimates.
Types of costs:
$ External costs of HHW/transfer station/MRF
Costs to Government:
Collection costs for leftover paint from households: This management method calls for a
percentage of the functional unit of leftover paint to be collected curbside from households in
recycling bins. This category of costs would include the full lifecycle costs of picking up units
of materials within the existing recycling infrastructure, including outreach. The successful
bidder should derive this cost estimate through review of the literature on current costs of
recycling programs. An estimate of the per-unit collection cost multiplied by the amount of the
functional unit of paint to be collected curbside would result in an estimate of the total costs for
this category.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, energy use, transportation, materials)
HHW/transfer station/MRF costs: This management method includes the costs of
operating a HHW/transfer station/MRF for the leftover paint dropped off by or collected from
consumers for recycling. The successful bidder should provide estimates of the full lifecycle
costs to sort and consolidate and transport the recyclable paint to a recycling plant, including any
capital costs, such as facilities and equipment, and operating costs, such as staffing,
administrative and management costs. The successful bidder should review data from current
programs for generating these cost estimates.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation)
Management of non-recyclable paint: This management method results in costs for
managing paint received at the HHW/transfer station/MRF that is not sent to the recycling plant.
Page B-28
METHOD #4
(continued)
This includes all capital and operating costs involved in consolidating and storing the paint,
drying/stabilization, transporting it to an incinerator/landfill for disposal, and operating the
incinerator/landfill. The bidder should use the LCA’s estimate of the fraction of paint brought to
the HHW/transfer station/MRF that is not recyclable. Multiplying the amount of non-recyclable
paint by the per-unit cost of drying/stabilization, transport, and waste management will result in
an estimate of the total cost of this category of non-recyclable paint management.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation)
Costs to Industry:
Production and sales costs for consolidated paint: This management method includes
costs borne by industry for recycling leftover paint into a consolidated paint product. This
includes the operating and capital costs involved with the recycling process, including any costs
of the recycling process, labor and materials, the facility, and costs of management of waste from
the recycling process. The successful bidder should develop cost estimates for this production
process based on the LCA. The total costs would then equal the amount of consolidated paint
being produced (as estimated by the LCA) by the full per-unit lifecycle production cost.
This method includes the transport and sale of the recycled paint to consumers. The LCA
will estimate transport distances to sales locations. If the LCA captures burdens of on-shelf time
at retail locations, the CBA should, at a minimum, consider the associated energy use at such
outlets as well.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation, waste)
Foregone profits from sale of new paint displaced by consolidated paint: This
management method will result in displacement of the sale of new paint by the consolidated
paint in the amount estimated in the LCA. Multiplying an estimate of average profits for the sale
of comparable new paint by the amount of displaced new paint would result in an estimate of the
forgone industry profits from the recycling of paint into a consolidated paint product.
Types of costs:
$ Foregone profits
Page B-29
METHOD #4
(continued)
BENEFITS OF MANAGEMENT METHOD #4:
Benefits to Consumers:
Increased space in homes, garages, and sheds: Consumers would receive a benefit from
this management method of increased space in their homes, garages, and sheds arising from no
longer needing to store their leftover paint. The successful bidder should use LCA estimates to
determine the amount of space consumers would reclaim by this management method and
develop an estimate of the average price per square foot for space in residential homes
(basements, etc.), garages, and sheds. Multiplication of the amount of space gained by
consumers by the average price per square foot estimate would result in an estimate of this
benefit.
Types of benefits:
$ Increased space (measured by price per square foot of space in homes)
Use of Recycled Paint: Consumers would receive a benefit from this management
method of low cost recycled paint. Benefits from the recycled paint can be estimated as the
market price for a unit of new paint comparable in quality to the recycled paint, which is equal to
the consumer’s willingness to pay for the recycled paint. Multiplication of the amount of paint
expected to be recycled (from the LCA) by the estimated unit price for the recycled paint would
result in an estimate of the total benefits to the consumer from recycled paint.
Types of benefits:
$ Recycled paint (measured by market price of comparable new paint)
Avoided travel costs to and from retail outlet for virgin paint and avoided purchase price:
By using recycled paint, consumers can avoid the travel costs and purchase price for virgin paint,
assuming displacement. The successful bidder should use the average distance traveled by
consumers from the LCA to determine the average transportation and travel time costs avoided
due to this management method. Avoided transportation costs include the costs associated with
operating an automobile and its depreciation and should be expressed as an average cost per mile
traveled. Avoided travel time costs involve calculations of the opportunity costs of the
consumer’s time, which can be devoted to work or leisure.
Types of benefits:
$ Avoided transportation costs (cost of operating and using car)
$ Avoided travel time costs (consumer’s time)
$ Avoided purchase price for virgin paint
Page B-30
METHOD #4
(continued)
Benefits to Environment:
Avoided burdens of virgin paint production displaced by consolidated paint: This
management method results in avoided production of virgin paint. These benefits can be
estimated through multiplying the amount of virgin paint displaced by the recycled consolidated
paint (as estimated by the LCA) by an estimate of the costs of the environmental burdens of the
production of virgin paint. These costs include the environmental costs of raw materials
extraction, transportation, processing, and waste management for virgin paint and paint
containers.
Types of benefits:
$ Avoided external production costs for virgin paint
Avoided burdens from consumer travel: Assuming displacement of virgin paint, this
management method includes avoided burdens to the environment from consumers’ traveling to
retail stores to purchase virgin paint. The successful bidder should estimate the benefit to the
environment by multiplying the number of miles driven (as determined by the LCA) by an
estimate of the average external cost of vehicle travel.
Types of benefits:
$ Avoided external costs from consumer travel (e.g., air emissions)
Avoided burdens from use of virgin paint: Assuming displacement, the successful bidder
will consider whether/how to monetize the benefit of avoided releases to the environment from
use of virgin paint, as estimated by the LCA.
Types of benefits:
$ Avoided external costs from use of virgin paint
Benefits to Industry:
Revenues from sale of consolidated paint: The industry would receive a benefit in the
form of revenues from the sale of the consolidated paint product. Estimating this benefit would
involve reviewing existing market data to derive an estimate of an average price for a unit of
consolidated paint. Multiplication of the unit price of the consolidated paint by the amount to be
sold results in an estimation of total revenues from the sale of the consolidated paint.
Types of benefits:
$ Revenues (measured by market price)
Page B-31
METHOD #4
(continued)
Benefits to Government:
Sale of recoverable energy: This management method will produce benefits to the
government from the sale of electricity generated from the incineration of the leftover paint sent
to the incinerator (as estimated by the LCA). Estimating these benefits would include valuing
the amount of electricity expected to be generated from the incineration of the leftover paint
(from the LCA). Multiplication of the market price of electricity by the amount of expected
electricity to be generated would result in the expected benefits from electricity generation.
Types of benefits:
$ Recovered electricity (measured by market price)
Sale of recoverable metals: This management method will produce benefits to the
government from the sale of metals recovered from paint containers for the leftover paint sent to
incinerators (as estimated by the LCA). The successful bidder should estimate the market value
of the amount and kind of metals to be recovered from the leftover paint sent to the incinerator.
Multiplication of the amount of the various metals (from the LCA) by their prevailing market
prices will result in an estimate of this benefit category.
Types of benefits:
$ Recovered metals (measured by market price)
Page B-32
Page B-33
METHOD #5
(continued)
OVERVIEW OF COSTS AND BENEFITS FOR
PAINT MANAGEMENT METHOD #5
Collection-Based Recycling through Reprocessing
This method assumes that paint is driven by consumers (self-haul) or placed curbside for
collection with other recyclables. In the modified method, the non-recyclable fraction will be
disposed after drying/stabilization.
Method #5 –Collection-Based Recycling to Paint (Reprocessed)
Costs
Benefits
To consumer
 Travel cost to and from
HHW/transfer station/MRF
 Travel cost to and from retail
store
 Price of recycled paint
To consumer
 Increased space in homes,
garages, and sheds
 Recycled paint use
 Avoided travel cost for
virgin paint
 Avoided purchase price
for virgin paint
To environment
 Burdens from consumer travel
 Burdens from use of recycled
paint
 Burdens from collection and
management of recyclables
 Burdens from production and
sale of reprocessed paint
 Burdens of waste
management from nonrecyclables
To environment
 Avoided burdens of virgin
paint production displaced
by reprocessed paint
 Avoided burdens of
consumer travel for virgin
paint
 Avoided burdens from use
of virgin paint
To government
 Collection costs of leftover
paint from households
 Cost of managing recyclable
paint
 Management of nonrecyclable paint collected or
dropped off
To government
 Sale of recovered energy
 Sale of recovered metals
To industry
 Production and sales costs for
reprocessed paint
 Foregone profits from sale of
virgin paint displaced by
reprocessed paint
To industry
 Revenues from sale of
reprocessed paint
Page B-34
METHOD #5
(continued)
COSTS OF MANAGEMENT METHOD #5:
Costs to Consumers:
Travel costs to and from HHW/transfer station/MRF: This method requires that a
percentage of the functional unit of paint be taken by consumers to a HHW/transfer station/MRF.
The cost-benefit analysis of this method should include an estimate of the costs of consumers’
travel time. The successful bidder should use average distances to be traveled by consumers
(from the LCA) to determine the average transportation and travel time costs associated with this
management method. Transportation costs include the costs associated with operating an
automobile and its depreciation and should be expressed as an average cost per mile traveled.
Travel time costs involve calculations of the forgone opportunity costs of the consumers’ time,
which otherwise could have been devoted to work or leisure. The successful bidder should
develop and defend estimates for transportation and travel time costs used in the calculation of
these costs to consumers.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumers’ time)
Travel costs to and from retail store and price of paint: The LCA will estimate consumer
travel distances for purchasing the appropriate quantities of recycled paint.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumers’ time)
$ Price of recycled paint
Costs to Environment:
Burdens from consumer travel: This management method includes burdens to the
environment from consumers driving their leftover paint to a HHW/transfer station/MRF and
traveling to retail stores to purchase recycled paint. The successful bidder should estimate the
cost to the environment of this activity by multiplying the number of miles driven (as determined
by the LCA) by an estimate of the average external cost of vehicle travel.
Types of costs:
$ External costs from travel (e.g., air emissions)
Page B-35
METHOD #5
(continued)
Burdens from use of recycled paint: The successful bidder will consider whether/how to
monetize releases to the environment and/or energy use/loss from residences, as estimated by the
LCA.
Types of costs:
$ External costs of using recycled paint
Burdens of collection from households: This management method includes collection of
a percentage of the full functional unit of paint. The successful bidder would provide estimates
of the external costs of collection. This cost should be based on reviews of literature of the
external costs of collection and transport.
Types of costs:
$ External costs of collection and transport
Burdens from production, transport, and sale of reprocessed paint: This management
method includes recycling of leftover paint to make a reprocessed paint product. Costs to the
environment for this method should thus include the environmental burdens from the production
of reprocessed paint, as determined by the LCA. This would include burdens of extracting and
processing raw materials needed, land use, energy, water, labor, emissions to air and water from
the production process, and burdens from the management and disposal of the resulting waste
from the production of the reprocessed paint.
This method also includes the transport and sale of the recycled paint. The LCA will
estimate transport distances to sales locations and consumer travel distances for purchasing the
appropriate quantities of recycled paint; the CBA will assess associated externalities. If the LCA
captures burdens of on-shelf time at retail locations for the recycled paint, the CBA should, at a
minimum, consider the associated energy use externalities as well.
Types of costs:
$ External production, transport, and sales costs (e.g., releases to air and water,
energy use, natural resource use) of recycled paint
HHW/transfer station/MRF costs for recyclable paint: This management method
includes the costs of operating a HHW/transfer station/MRF for the leftover paint dropped off by
or collected from consumers for recycling. The successful bidder should provide estimates of
the external costs of these facilities. The successful bidder should review the literature on
external costs of such facilities for generating these cost estimates.
Page B-36
METHOD #5
(continued)
Types of costs:
$ External costs of collection site/transfer station/MRF
Burdens of waste management for non-recyclable paint: This management method
includes drying/stabilization, transport, and incinerator/landfill disposal of a percentage of the
functional unit of paint not sent to the recycling/processing plant after collection or consumer
drop-off because that portion is not suitable for recycling. The successful bidder would provide
estimates of the external costs of drying/stabilization, transportation, and incinerators/landfills, as
estimated by the LCA. This cost should be based on reviews of literature of the external costs of
incinerators/landfills, including threats to groundwater resources and air emissions. This cost
estimate should also include the burdens from transportation of the leftover paint from the
recycling transfer station to the incinerator/landfill.
Types of costs:
$ External costs of drying/stabilization, transportation, and incineration/
landfilling
Costs to Government:
Collection costs for leftover paint from households: This management method calls for a
percentage of the functional unit of leftover paint to be collected curbside from households. This
category of costs includes the full lifecycle costs of picking up units of materials within the
existing recycling infrastructure, including outreach. The successful bidder should derive this
cost estimate through review of the literature on current costs of collecting recyclables, including
outreach. An estimate of the per-unit collection cost multiplied by the amount of the functional
unit of paint to be collected curbside would result in an estimate of the total costs for this
category.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, energy use, transportation, materials)
HHW/transfer station/MRF costs for recyclable paint: This management method
includes the costs of operating a HHW/transfer station/MRF for the leftover paint dropped off by
or collected from consumers for recycling. The successful bidder should provide estimates of
the full lifecycle costs to sort and consolidate and transport the recyclable paint to a recycling
plant, including any capital costs, such as facilities and equipment, and operating costs, such as
staffing, administrative, and management costs. The successful bidder should review data from
current programs for generating these cost estimates.
Page B-37
METHOD #5
(continued)
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation)
Management of non-recyclable paint: This management method results in costs for
managing leftover paint received at the HHW/transfer station/MRF that is not sent to the
recycling processing plant. Costs should include all costs involved in drying/stabilizing,
transporting, and disposing paint in an incinerator/landfill. The bidder should use the LCA’s
estimate of the fraction of paint brought to the recycling transfer station or MRF that is not
recyclable. Multiplying the amount of non-recyclable paint by the per-unit cost of
drying/stabilizing, transport, and disposal will result in an estimate of the total cost of this
category of non-recyclable paint management.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation)
Costs to Industry:
Production and sales costs for reprocessed paint: This management method includes
costs borne by industry for recycling leftover paint into a reprocessed paint product. This
includes the operating and capital costs involved with the recycling process, including costs of
the recycling process, labor and materials, the facility, and costs of management of waste from
the recycling process. The successful bidder should develop cost estimates for this production
process based on the LCA. The total costs would then equal the amount of reprocessed paint
being produced (as estimated by the LCA) by the per-unit production cost.
This method includes the transport and sale of the recycled paint. The LCA will estimate
transport distances to sales locations and consumer travel distances for purchasing the
appropriate quantities of recycled paint; the CBA will assess associated externalities. If the LCA
captures burdens of on-shelf time at retail locations, the CBA should, at a minimum, consider the
associated energy use externalities as well.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation, waste)
Foregone profits from sale of new paint displaced by reprocessed paint: This
management method will result in displacement of the sale of new paint by the reprocessed paint
(in an amount estimated in the LCA). The successful bidder should use the LCA’s estimate for
Page B-38
METHOD #5
(continued)
the amount of new paint that would be displaced by the reprocessed paint. Multiplying an
estimate of average profits for the sale of comparable new paint by this amount of displaced new
paint would result in an estimate of the forgone industry profits from the recycling of paint into a
reprocessed paint product.
Types of costs:
$ Foregone profits
BENEFITS OF MANAGEMENT METHOD #5:
Benefits to Consumers:
Increased space in homes, garages and sheds: Consumers would receive a benefit from
this management method of increased space in their homes, garages, and sheds arising from no
longer needing to store their leftover paint. The successful bidder should use LCA estimates to
determine the amount of space consumers would reclaim by this management method and should
then develop an estimate of the average price per square foot for space in residential homes
(basements, etc.), garages, and sheds. Multiplication of the amount of space gained by
consumers by the average price per square foot estimate would result in an estimate of this
benefit.
Types of benefits:
$ Increased space (measured by price per square foot of space in homes)
Recycled paint use: Consumers would receive a benefit from this management method
of low cost recycled paint. Benefits from the recycled paint can be estimated as the market price
for a unit of new paint comparable in quality to the recycled paint, which is equal to the
consumer’s willingness to pay for the recycled paint. Multiplication of the amount of paint
expected to be recycled (from the LCA) by the estimated unit price for the recycled paint would
result in an estimate of the total benefits to the consumer from recycled paint.
Types of benefits:
$ Recycled paint use (measured by market price of comparable new paint)
Avoided travel costs to and from retail outlet for virgin paint and avoided purchase price:
By using recycled paint, consumers can avoid the travel costs and purchase price for virgin paint,
assuming displacement. The successful bidder should use the average distance traveled by
consumers from the LCA to determine the average transportation and travel time costs avoided
due to this management method. Avoided transportation costs include the costs associated with
operating an automobile and its depreciation and should be expressed as an average cost per mile
Page B-39
METHOD #5
(continued)
traveled. Avoided travel time costs involve calculations of the opportunity costs of the
consumer’s time, which can be devoted to work or leisure.
Types of benefits:
$ Avoided transportation costs (cost of operating and using car)
$ Avoided travel time costs (consumer’s time)
$ Avoided purchase price for virgin paint
Benefits to Environment:
Avoided burdens of virgin paint production displaced by reprocessed paint: This
management method results in avoided production of virgin paint displaced by the reprocessed
paint. These benefits can be estimated through multiplying the amount of virgin paint displaced
by the recycled reprocessed paint (as estimated by the LCA) by an estimate of the costs of the
environmental burdens of the production of virgin paint. These costs include the environmental
costs of raw materials extraction, transportation, processing, and waste management for virgin
paint and paint containers. The successful bidder should estimate these environmental costs to
derive an estimate of the total environmental benefits arising from displacement of virgin paint
production.
Types of benefits:
$ Avoided external virgin production costs
Avoided burdens from consumer travel: Assuming displacement of virgin paint, this
management method includes avoided burdens to the environment from consumers’ traveling to
retail stores to purchase virgin paint. The successful bidder should estimate the benefit to the
environment by multiplying the number of miles driven (as determined by the LCA) by an
estimate of the average external cost of vehicle travel.
Types of benefits:
$ Avoided external costs from consumer travel (e.g., air emissions)
Avoided burdens from use of virgin paint: Assuming displacement, the successful bidder
will consider whether/how to monetize the benefit of avoided releases to the environment from
use of virgin paint, as estimated by the LCA.
Types of benefits:
$ Avoided external costs from use of virgin paint
Page B-40
METHOD #5
(continued)
Benefits to Industry:
Revenues from sale of reprocessed paint: The industry would receive a benefit in the
form of revenues from the sale of the reprocessed paint product. Estimating this benefit would
involve reviewing existing market data to derive an estimate of an average price for a unit of
reprocessed paint. Multiplication of the unit price of the reprocessed paint by the amount sold
(as estimated by the LCA) results in an estimation of total revenues from the sale of the
reprocessed paint.
Types of costs:
$ Revenues (measured by market price)
Benefits to Government:
Sale of recoverable energy: This management method will produce benefits to the
government from the sale of electricity generated from the incineration of the leftover paint sent
to the incinerator (as estimated by the LCA). Estimating these benefits would include valuing
the amount of electricity expected to be generated from the incineration of the leftover paint
(from the LCA). Multiplication of the market price of electricity by the amount of expected
electricity to be generated would result in the expected benefits from electricity generation.
Types of benefits:
$ Recovered electricity (measured by market price)
Sale of recoverable metals: This management method will produce benefits to the
government from the sale of metals recovered from paint containers for the leftover paint sent to
incinerators (as estimated by the LCA). The successful bidder should estimate the market value
of the amount and kind of metals to be recovered from the leftover paint sent to the incinerator.
Multiplication of the amount of the various metals (from the LCA) by their prevailing market
prices will result in an estimate of this benefit category.
Types of benefits:
$ Recovered metals (measured by market price)
Page B-41
Page B-42
METHOD #6
(continued)
OVERVIEW OF COSTS AND BENEFITS FOR
PAINT MANAGEMENT METHOD #6
Collection-Based Disposal
This method assumes that 100% of the functional unit of leftover paint is disposed of
either through consumer self-haul or separate curbside collection followed by drying/
stabilization.
Leftover Paint Management Method #6 – Collection-Based Disposal
Costs
Benefits
To consumer
 Travel costs to and from
HHW/transfer station/MRF
or disposal facility
To consumer
To environment
 Burdens from drying liquid
paint
 Burden from collection and
transport
 Burdens of incinerator
facility
 Burdens of landfilling of
paint
To environment
To government
 Collection, drying/
stabilization, and transport
costs
 Incinerator facility costs
 Landfill facility costs,
including drying agent
To government
To industry
 Increased space in homes,
garages, and sheds
 Sale of recoverable energy
 Sale of recyclable metals
To industry
COSTS OF MANAGEMENT METHOD #6:
Costs to Consumers:
Travel costs: This method requires that a percentage of the functional unit of paint be
taken by consumers to a HHW/transfer station/MRF or disposal facility. The costs of this
activity should include an estimate of the consumers’ travel time and costs. The successful
bidder should use average distances to be traveled by consumers (from the LCA) to determine
the average transportation and travel time costs associated with this management method.
Transportation costs include the costs associated with operating an automobile and its
depreciation, and should be expressed as an average cost per mile traveled. Travel time costs
involve calculation of the forgone opportunity costs of the consumer’s time, which otherwise
Page B-43
METHOD #6
(continued)
could have been devoted to work or leisure. The successful bidder should develop and defend
estimates for transportation and travel time costs used in the calculation of these costs to
consumers.
Types of costs:
$ Transportation costs (cost of operating and using car)
$ Travel time costs (consumer’s time)
Costs to Environment:
Burdens of collection and transport from households: This management method includes
curbside collection of a percentage of the full functional unit of paint. The successful bidder
would provide estimates of the external costs of collection. This cost should be based on reviews
of literature of the external costs of collection and transport.
Types of costs:
$ External costs of collection and transport
Burdens from drying/stabilizing liquid paint: This management method assumes that
paint would be disposed of by consumers or collected while still in liquid form, separately from
other household waste. Cost components to be evaluated include external environmental costs of
drying/stabilizing liquid paint at waste management facilities.
Types of costs:
$ External costs of drying/stabilizing paint (e.g., emissions)
Burdens of incineration: This management method includes a percentage of the
functional unit of paint to be incinerated. The successful bidder would provide estimates of the
external costs associated with contributing units of waste to incinerators and transporting residual
ash to landfills, as estimated by the LCA. The external costs of incineration include air
pollution, which may contribute to health and environmental problems. These estimates should
be based on studies on the external costs from incineration, and the successful bidder must be
prepared to justify the estimates.
Types of costs:
$ External incineration costs
Burdens of landfilling: This management method includes management of the residuals
from the incineration of the leftover paint (as described by the LCA) and paint disposed directly
Page B-44
METHOD #6
(continued)
at landfills. The successful bidder should provide estimates of the external costs of landfilling
paint -- both in cans as received and dried (with or without Portland cement as a stabilizing
additive) or used as cover -- and managing and disposing of incinerator ash.
Types of costs:
$ External landfilling costs
Costs to Government
Collection, drying/stabilizing, and transport costs for paint disposed by households: The
bidder must derive and justify estimates of the full lifecycle costs of collection,
drying/stabilizing, and transport. One component of this cost is the per-unit cost of separately
collecting paint from households, drying/stabilizing it, and transporting it to disposal facilities.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, energy use, materials, transportation)
Incinerator facility costs: This management method includes the cost to government of
incinerating a portion of the functional unit of leftover paint that is sent to an incinerator (as
estimated by the LCA). The successful bidder should include an estimate of these costs,
including all the capital and operating costs associated with incinerating the waste and
transporting the residual ash for disposal. The successful bidder should derive these cost
estimates through reviews of literature on the current costs of incineration of municipal waste.
Types of costs:
$ Asset costs (facilities, equipment)
$ Activity costs (labor, materials, energy use, transportation)
Landfill facility costs: This management method includes the landfilling of the collected
waste as well as residuals from the incineration of a portion of the functional unit of leftover
paint (as determined by the LCA). The successful bidder should provide cost estimates of the
full, lifecycle costs of disposing in a landfill of collected paint and incinerator ash. Costs for
disposal in a landfill should also include estimates of the cost of using up landfill space, thus
accelerating the date at which the landfill will need to be closed. Costs should be based on
reviews of information on the current costs of landfilling solid waste.
Types of costs:
$ Asset costs (facilities, equipment)
Page B-45
METHOD #6
(continued)
$ Activity costs (labor, materials, energy use, transportation)
BENEFITS OF MANAGEMENT METHOD #6:
Benefits to Consumer:
Increased space in homes, garages, and sheds: Consumers would receive a benefit from
this management method of increased space in their homes, garages, and sheds arising from no
longer needing to store their leftover paint. The successful bidder should use LCA estimates to
determine the amount of space consumers would reclaim by this management method, and
should then develop an estimate of the average price per square foot for space in residential
homes (basements, etc.), garages, and sheds. Multiplication of the amount of space gained by
consumers by the average price per square foot estimate would result in an estimate of this
benefit.
Types of benefits:
$ Increased space
Benefits to Government:
Sale of recoverable energy: This management method will produce benefits from the
sale of electricity generated from incineration of leftover paint (as estimated by the LCA). The
successful bidder should multiply the amount of electricity expected to be generated from the
incineration of the leftover paint by the estimated market price of electricity.
Types of benefits
$ Recovered electricity (measured by market price)
Sale of recoverable metals: This management method will produce benefits to the
government from the sale of metals recovered from paint containers for leftover paint sent to
incineration (as estimated by the LCA). The successful bidder should estimate these benefits by
multiplying the amount and kind of metals to be recovered from the leftover paint sent to the
incinerator by their prevailing market prices.
Types of benefits
$ Recovered metals (measured by market price)
Page B-46
METHOD #6
(continued)
Page B-47