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Feb 21 01 OlrSOp materials for the future 415 561 6474 p.4

PROPOSAL TO U.S. EPA, REGION IX

Analysis, a Draft Action Plan and a consensus among the team and clients. This is followed by acoordinated suite of deliverables: research to plug holes in existing data and inform the strategicprocess, stakeholder meetings to bring interests formally together and work toward project goals,and a strategic planning process that identifies in finer detail the opportunities to draw togetherinterest groups in order to achieve the goals agreed upon by the team and clients.

The research and stakeholder meeting portions of work are detailed elsewhere in this proposal.This section of the proposal describes the steps and tasks of the strategic planning process itself.

It is our experience that this process has the capacity to break through barriers and lead to muchmore effective solutions. It identifies a much broader array of options than processes constrainedby the official positions of official representatives, and it takes full advantage of EXISTINGstakeholder processes — both those initiated by the team members, and the many foimal andinformal stakeholder processes ongoing in the region and throughout the country.

Note that the development of the plan is a dynamic process. It results in a written plan, but moreimportantly, it helps link together and coordinate the ongoing activities of a variety ofstakeholders. In this way, the preparation of the plan happens simultaneously with the first stagesof its implementation. Once Che Situational Analysis and Draft Action Plan are complete, ihebalance of the strategic planning process itself will generate knowledge that the team and clientscan use in real time to advance the agreed-upon goals of the project.

We wish to emphasize two aspects of this process: the process includes up-front agreement by theclient and team on goals, which will be reflected in the document, and then communicationamong the team and client as information arises about strategic and tactical opportunities toadvance those goals. The Strategic Planning Team includes the consulting team — WEPSI-NW,MFF, and Global Futures - as well as self-selected participants from the February 8 WEPSImeeting, and others designated or approved by the client. Note that once the Situation Analysisand Draft Action Plan is complete, as well as during the course of the planning itself, the specificsteps and tasks that follow may be modified. In our experience, the steps outlined are the mostlikely to be optimal, but they may be modified as we gain in knowledge about how to mosteffectively to advance the goals of the client and team.

The purpose of the Strategic Planning effort will be the following:Identify and prioritize goals for the computer and e-waste 'Western Coalition of States.'Develop menu of policies and programs to actualize the goals.Identify stakeholders with an interest in the goals.Track the interests and positions of the stakeholders on the policies and programs.Map the stakeholder dynamics and influence relationships.Identify research priorities.Identify alternative strategic paths to the goals based on the stakeholder relationships.Rank the alternative paths according to operational effectiveness and political viability.Select a strategy.Develop budget to support WEPSI activities and resource needs.Identify the best vehicle of communication of WESPI partners (Listserv, web site, intranetsite, expansion of an existing web site or a series of links of several web sites).

2. Stakeholder Consensus Building

CoordinatorSheila Davis, Materials for the Future Foundation

Western Electronics Product Stewardship Initiative - 3 - February 2001

Feb 21 01 01:22p materials for the future 415 561 6474 p-5

PROPOSAL TO U.S. EPA, REGION IX

The stakeholder meetings will be a consensus building process that takes full advantage ofexisting stakeholder processes initiated by WEPSI partners, and the many formal and informalstakeholder processes taking place in US EPA Regions IX and X and throughout the country.The goal of the stakeholder meetings is to develop a consensus on policy and programs that meetthe needs of (he Western States.

The Stakeholders group represents all parties who play a role or have a stake in some aspect of theelectronic product life cycle. Therefore the stakeholders are extremely diverse and located acrossthe globe. The stakeholders that are currently most active include representatives of government atall levels, the electronics industry, the electronics equipment reclaiming industry, retail sellers ofelectronics equipment and non-governmental organizations. However, WEPSI partners anticipatean increased interest among environmental advocates, NGO's and trade associations as the productstewardship dialogue progresses on the state and national level. Currently, product stewardshipstakeholders meetings are taking place in Oregon, Washington and California through RecyclingAdvocates, the NWPSC and MFF/S VTC respectively. The WEPSI partners will coordinate theseefforts through a strategic action plan that will identify stakeholders with interest and goals andtrack the interests and positions of the stakeholders on the policies and programs. The strategicaction plan will develop a schedule of WEPSI meetings and timelines that conespond with local,state and national efforts such as EPR2 iu April 2001, International Electronics and ElectricalEngineer Symposium on the Environment hosted in May of 200] and other important state andlocal conferences and meetings that will address product stewardship.

The result of WEPSI's formal consensus building meetings, WEPSI participation in existingstakeholder meetings and the informal networking will be a menu of preferred policies andprograms that reflect the interest of the Western States. Products of the WEPSI stakeholdermeetings will include the following:

• White Paper of Western Concerns. White Paper will express the viewpoints of Westernstakeholders on the technical, regulatory, geographic and policy concerns that need to beaddressed as part of a national dialogue on product stewardship in the electronic industry.

• Menu of Policies. A menu of policies that are needed to implement product stewardshipprograms. These policies may include local and state regulatory issues, governmentprocurement, market development and solid waste handling regulations.

• Menu of Programs. A menu of programs developed by a multi-stake holder group basedon product stewardship principles. These programs will be based on research performedby the WEPSI and other stakeholders

3. Research Policy and Model Programs

CoordinatorSilicon Valley Toxic Coalition

Research will include compiling existing documents, synthesizing information, working withgroups who are in the process of developing relevant information and in some cases conductingoriginal research. The research and planning performed by the WEPSI will be crucial to thedevelopment of a menu of substantive policies and programs that highlight the interest of theWestern States in a national dialogue. However, the WEPSI partners have determined two areaswhich require immediate attention: (1) Export Markets and (2) Determining cost of variousrecovery options.

Export Markets: Increasingly, as recyclers in the US arc attempting to build new infrastructure,they see the role of export as a potential impediment to the growth of their industry. At the sametime, environmental concerns are growing in response to emerging evidence that much of the e-

Western Electronics Product Stewardship Initiative - 4 - February 2001

Feb 21 01 01:22p materials for the future 415 561 6474 p.6

PROPOSAL TO U.S. EPA, REGION IX

waste that is being exported is eventually landfilled or burned, creating potential hazardousemissions problems. There is currently a lack of reliable data to adequately assess the nature andsize of this problem. The competition with export markets is a concern that has been expressed instakeholders meetings in California and Washington. A request for financial support to pursuethis research is included in this grant proposal.

Cost of Recovery Options. Who will pay and how much they will pay? These are importantquestions in the ongoing product stewardship dialogues at the local, state and national level.Currently local communities bear the financial responsibility for electronics products at end-of-life (e.o.l.). Primarily this means disposal in landfills or financial support of nonprofit agenciesand tbr-profit-businesses who process the materials for recycling, reuse and redistribution. SVTC,GFF and MFF have begin to assess recycling and processing options and cost by conductingpreliminary research on retail drop off, curbside collections, household hazardous waste drop-off programs, manufacturer recovery programs and advance disposal fees. Providing sound costanalysis that identify the cost to state and local governments and the consumer for differentrecovery and recycling programs will be an important contribution to a national dialogue on"shared product responsibility" and product stewardship. MFF has applied to the AlamedaCounty Waste Management Authority and the City of San Francisco for funds to continueresearch on cost of CRT recycling options. CRTs, which are characterized as hazardous waste,are ubiquitous and are the most costly electronic product to handle due to the hazardous wastedesignation.

Other research topics will be identified in the strategic planning process as an initial menu ofprogram and policy options is laid out and as additional opportunities are identified duringstakeholder meetings. Market development, harmonization of state procurement specifications,hazardous waste regulatory issues, solid waste and end-of-life handling are potential researchareas.

4. Chronological Schedule of Accomplishments, Progress andMilestones

a) The project timeline will encompass 12 months from the kick-off date. This timelinedemonstrates that most activities, with the exception of the strategic planning process, willoccur simultaneously throughout the year-long WEPSI Project. The WEPSI partnersanticipate rapid change in the local, state and national landscape and plan to keep abreastthat change with a fluid planning process.

Western Electronics Product Stewardship Initiative - 5 - February 2001

Feb 21 01 01:24p materials for the future 415 561 6474 p.7

PROPOSAL TO U.S. EPA, REGION IX

Project Timeline

PROJECT STEP

1. Develop Strategic Plan and framework forstakeholders meetings.

2. Hold stakeholders meetings.

3. Draft menu of preferred model policies andprograms.

4. Continue to engage in national dialogue throughconferences, networking and any formal talksinitiated by EPA, National Trade Associations orNGOs.

4. Conduct reach on export markets, infrastructurecost and issues related to the menu of preferredpolicy and program models.

5. Conduct and produce Final Report

PROJECTEDCOMPLETION

from project kick-off

2 Months

10 Months

10 Months

10 Months

10 Months

1 8 Months

b) Deliverables and Measurements• Report on export markets• A model strategic planning process that can be replicated in other product stewardship

efforts throughout the country.• Report on preferred product stewardship programs and policies in Western United Stales.

This document will include information that identifies the types and numbers of jobs thatwill be created, the hazardous materials that will potentially be diverted, the variousproduct stewardship programs and the potential for market development that will result.

• White Paper on Western Slates concerns.

5. Project Participants and Contacts

Wayne RiferRecycling Advocates' Western ElectronicsProduct Stewardship Initiative, Northwest1975 NW113th. Ave.Portland, OR 97229(503) 644-0294-phone(503) 643-9705-faxwrifer(ffljconcentric.net

Ted SmithSilicon Valley Toxics CoalitionCampaign for Responsible Technology760 N. First StreetSan Jose, C A 95112408-287-6707-phone408-287-6771-faxtsmith@igc.orehttp://www.svtc.ore/svtc/

Bill ShiremanGlobal Futures25 Maiden Lane, 6* floorSan Francisco, CA 94129(415) 248-0011-phonebill@globalfuturcs.org

Sheila DavisMaterials for the Future FoundationPO Box 29091San Francisco, CA 94129(415) 561-6530 xl8-phone(415)56l-6474-faxsheiladavis@materials4future.orghttp://www.materials4future.org

Western Electronics Product Stewardship Initiative -6- February 2001

Feb 21 01 01:24p materials far the future 415 561 6474

6. Project Work ScopePart 1: Strategic Plan

Step 1. Prepare a Situation Analysis and Draft Action Plan

Task 1. Prepare a discussion document that includes a variety of options for the following:Possible project goalsa. Possible Policy and Program Options and concernsb. Stakeholders, Interests and Positions

Task 2. Convene a discussion among the clients and team members to increase the variety andimprove the specificity of project goals, policy options, and stakeholder interests, usingthe discussion document to stimulate but not limit the options considered. Seek generalconsensus on prioritized project goals, and input to maximize the range and deepenunderstanding of policy options and stakeholder interests. Discuss and seek agreement onstrategies most likely to advance the priority policies and goals.

Task 3. Prepare a Situation Analysis and Draft Action Plan that summarizes the outcome of thediscussion in Task 2. Include (a) Program Goals, (b) Policy and Program Options, and(c) Stakeholders and Stakeholder Relationships (d) Identify research priorities. TheAction Plan will discuss how the interests and positions of (he stakeholders could beharnessed on behalf of policy options that would achieve the program goals. It will alsoidentify information required to improve the quality of the document and plan, includingresearch and stakeholder meeting processes.

Step 2. Prepare a Strategic Action Plan

Task 4: Draft a comprehensive strategic plan that focuses on research, budget needs, timelinesand informs the stakeholder meeting process. These tasks emphasize stakeholdercommunication with the client and team.

Part 2: Host Stakeholder Meeting

Task 5: Use the comprehensive Strategic Plan drafted by WEPSI partners and clients toimplement schedule for key stakeholders meetings.

Task 6: Conduct informal discussions and interviews with stakeholders to develop stakeholder meetingagendas and continue to document, track and communicate stakeholders concerns lo WEFSIpartners.

Task 7: Convene weekly or biweekly phone meetings with WEPSI team in order to shareinformation about stakeholder interests and positions that will help to advance the projectgoals and improve its research and stakeholder meeting elements.

Task 8: Continue to convene and participate in stakeholder meeting throughout California,Oregon and Washington initiated by Recycling Advocates WEPSI-NW, NWPSC andMFF. These meetings will build consensus on product stewardship goals and thedevelopment of preferred policies and programs.

Western Electronics Product Stewardship Initiative - 7 - February 2001

Feb 21 01 01:25p materials for the future 415 561 6474 p-S

PROPOSAL TO U.S. EPA, REGION IX

Task 9: Provide outreach and support to Western States such as Arizona, Utah, Hawaii andNevada, that haven't been as actively engaged in dialogue on product stewardship.

Task 10: Track policy concerns, ordinances, procurement policies and market developmentconcerns from various stakeholders meetings. Continue to develop consensus and todistribute and post policy and programs.

Task 11: Attend national conferences and stakeholders meetings in order to continue to engage innational dialogues. Continue to communicate with the National Product StewardshipInstitute and other states in the US who are have proactive product stewardship policiesand programs.

Task 12: Work with WEPSI partners to re-evaluate Strategic Plan. A revision might include areview of the following:

a. Comprehensive Matrix of Stakeholder Interests and Positionsb. Map of Stakeholder Dynamics and Influence Relationships.

Indicate financial and organizational dependencies, common denominators, personaland organizational relationships that create barriers and opportunities for a commonpath.

c. Alternative Strategic Paths to the Goals Based on the Stakeholder Relationships.d. Rating of the Alternative Paths According to Operational Effectiveness and Political

Viability.

Task 13: Track interest and positions in product stewardship program development. Work withWEPSI members and stakeholders groups to continue to research program and policyissues.

Task 14: Work with WEPSI partners to facilitate database development, and tracking system fordocuments, issue papers, studies and stakeholder directories.

Task 15: Write report outlining menu of preferred policies and programs.

Task 16: Write White Papers on Western States Product Stewardship concerns.

Part 3: Conduct ResearchThis project proposes 2 related research steps to address these issues:

Step 1. Survey available data on the export of e-waste from the U.S. to other countries, particularlyin Asia(China, Philippines, etc.). Such a survey would require a thorough search of currentlyavailable research sources that track the export of various products. The research will need tofocus on several activities

Western Electronics Product Stewardship Initiative -8- February 2001

Feb 21 01 01:26p materials for the future 415 561 6474 p.10

PROPOSAL TO U.S. EPA, REGION IX

Task 17: Identify relevant data sources, such as PIERS (a publication of the Journal of Commerce),databases maintained by various federal agencies that track exports, technical literature thatcovers electronics recycling

Task 18: Identify and interview 10 leaders from U.S. based recycling companies to assess their ownknowledge of historic, current and future practices of exporting e-waste and the impacts ofthese practices on recycling infrastructure.

Task 19: Develop a methodology to inform the research that can help to distinguish betweenproducts shipped overseas for re-use as distinct from those products shipped for recycling.While there are many electronics products that are currently being shipped for re-use insecondary markets that are no longer wanted in the U.S., much of what is being shippedgoes directly into recycling operations where low cost labor is used for disassembly,materials recovery and finally disposal. There are also mixed shipments of both of thesekinds of used products, and it will be important to ascertain how to make re-use - recyclingdistinctions.

Step 2: Survey available data about U.S. exports of e-waste from sources in other countries.

Task 20: Identify data sources - existing research publications as well as human sources such asNGOs, academics, government sources, recycling companies, etc. — in key exportcountries such as China, Philippines, Mexico, Pakistan, etc.

Task 21: Develop a methodology to assess re-use in addition to recycling activities.

Task 22: Assess recycling infrastructure, in particular what methods are used for disassembly,materials separation, materials processing, and disposal at the end of the value chain.

Task 23: Assess the regulatory climate in each of the export countries, including hazardous wasteregulations, disposal regulations, data tracking systems, enforcement, etc.

7. Budget Narrative

The WEPSI partner plan to carry out the process as described utilizing the EPA Region IX and Xfunds available. However, the WEPSI partners also intend to work with EPA to secure additionalfunding from other sources and to utilize our respective funding resources in order to completethe work outlined in this proposal.

• MFF has applied to the San Francisco Solid Waste and Recycling Program and theAlameda County Waste Management Authority for research, program and policydevelopment support.

• The budget provides approximately .5 FTE for each partner involved in the WEPSIpartnership. However, it does not include overhead expenses or fringe benefits for any ofthe WEPSI partners.

• WEPSI partners will potentially perform the research of policy and programs. See projectnarrative.

Western Electronics Product Stewardship Initiative - 9 - February 2001

Feb 21 01 01:26p materials for the future 415 561 6474

PROPOSAL TO U.S. EPA, REGION IX

Budget

AdministrationProject Coordinator

Region 10Coordinator

Sheila Davis, MFF

Recycling Advocates

Proposed Budget FundingRequestRegion 9

FundingRequestRegion 10

$10,000

$8,000

1,875

1,875

Strategic PlanningGlobal FuturesRecycling Advocates

ContractorContractor

$15,000SI 5,000

10,0004,000

Stakeholder Consensus Building Meetings

Coordinator

Consultants:

DatabaseDevelopment

MFF

Global FuturesRecycling AdvocatesNE ProductStewardship InstituteSVTCNWPSC

$15,000

$10,000$5,000$5,000

$10,000$10,000

$10.000

10,000

1.875

1,875

3,6253,500

5,000

ResearchExport AnalysisInfrastructure CostAnalysis/PolicyDevelopment

SVTC $12,000

$130,000

10,000

Other Project Expenses:Travel

PrintingConference Calls

$15,000

$1,000$2,000

2,875

5001,000

1,500

100400

Total Proposed Budget $273,000Subtotal Region 9 Request $40,000Subtotal Region 10 Request $20,000

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