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HomeMy WebLinkAbout2008/10/21 Item 7 CITY COUNCIL AGENDA STATEMENT ~ (!f:. CITY OF ~CHULA VISTA 10/21/2008, Item '+ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VIST A ADOPTING THE PURCHASING ENVIRONNIENTALLY PREFERABLE PRODUCTS POLICY SUBMITTED BY: DIRECTOR OF PUBLIC WOR,.1(SA~ DIRECTOR OF FiNANCE 'HtJi<.. \) GOVERNNIENT RELATIONS LIAlSON 01i"V-" INTERllvI CITY MANAGER 'S;- 4/STHS VOTE: YES 0 NO 0 REVIEWED BY: SUMMARY The City's Finance Department has an Environmentally Preferable Purchasing Policy (EPP) designed to encourage departments to purchase, whenever practical, environmentally preferable products. Adoption of the resolution makes this a Citywide policy and incorporates Extended Producer Responsibility language into the policy. ENVIRONlVIENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section l5378(b)(2) of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION 7-1 10/21/2008, Item t Page20f3 Toxic and disposable products have been developed and sold by companies with no input from local governments on the design or the toxicity of the components. Yet local government is burdened with the mandate to manage the disposal of the products once the consumer no longer wants them. The current waste management system does not encourage manufacturers to design durable, non-toxic products. Reducing waste is the highest priority in the waste management hierarchy - reduce, reuse and then recycle. Although jurisdictions across the state have been working hard on diverting waste, Californians sent the same volume of trash to landfills in 2007 that we sent in 1990 - more than 40 million tons. Waste diversion is a downstream action that addresses end-of-product-life management. It does nothing to reduce the generation and consumption side of the equation. There is a better way - Extended Producer Responsibility (EPR) - also known as Product Stewardship. EPR is a policy that holds producers liable for the costs of responsibly managing their products at end-of-life; whoever designs, produces, sells or uses a product takes responsibility for minimizing the product's environmental impact. Producers, usually brand owners, have the greatest control over product design and marketing and, therefore, have the greatest ability and responsibility to reduce toxicity and waste. In the last decade, there has been an explosion in the manufacture of products designed for disposal. These products are very expensive, if not impossible, to recycle because they contain hazardous metals and chemicals. Many have been banned from landfill disposal due to their toxicity. However, the primary m.eans of managing them responsibly is through local Household Hazardous Waste facilities, funded and managed by local governments. Local Household Hazardous Waste costs are soaring as cities attempt to respond to the increased volume of toxic products. Producer responsibility is such a high priority that in 2007, the California Integrated Waste Management Board adopted it as one of 12 strategic directives. It is a core value of the Waste Board that producers assume the responsibility for the safe stewardship of their materials in order to promote environmental sustainability. (A copy of Strategic Directive #5 and The Overall Framework for an Extended Producer Responsibility System in California as adopted by the California Integrated Waste Management Board has been included as an attachment providing greater detail on this Directive.) Local government has a critical role to play in helping to lead the transition to producer responsibility and stemming the growth of the waste stream. As the move toward Product Stewardship progresses, Federal and State legislation is being introduced that merits action on the part of the City. The 2009 Legislative Program will be submitted to Council for approval in November. The proposed program will include language to . support measures that promote Extended Producer Responsibility / Product Stewardship. In addition to lobbying support, staff is recommending that Council adopt a Citywide Environmentally Preferable Purchasing Policy (EPP) to include EPR components / practices. These include: 7-2 I 0/21/2008, Item 7- Page30f3 Leasing of selective products rather than purchasing them. Requesting less toxic alternatives. Requiring manufacturers of products. to "take back" their products (fluorescent lamps, batteries, electronics, etc.) at the end of their useful life, either directly or through a manufacturer/producer funded collection and recycling program. Currently, items are purchased at the lowest price without consideration for disposal costs at the end of the products' useful life. Total Cost of Ownership considerations need to be evaluated as part of the fit-for-use analysis of a product and service. Total Cost of Ownership is a summation of all purchase, operating and related costs for a product or service. A product that may appear to be the lowest price initially may actually be more expensive when disposal and other related costs are added to the calculation. If fitness and quality are equal, environmentally preferable products will be purchased whenever such products are available at the same or lesser total cost than other products. Chula Vista has long been recognized for its leadership and bold steps towards environmental stewardship and conservation policies. The California Integrated Waste Management Board is requiring jurisdictions to have an EPP as one of the qualifiers for most of their grant funding. The adoption of an EPP Policy will assist City departments in continuing to obtain the State grant funding used to facilitate some of those envirorunental stewardship efforts. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot mle found in California Code of Regulations section 18704.2(a)(I) is not applicable to this decision. FISCAL IMPACT Adopting this resolution has no direct General Fund impact. The intent of any actions governed by this resolution will be to reduce overall costs of goods and services to the City through producer take-back programs, improved recyclability and overall product design. The City's Finance Department has reviewed and approved the proposed purchasing policy language. A TTACIDIENTS A. Draft Environmentally Preferable Purchasing Policy B. California Integrated Waste Management Board Strategic Directive #5 - Producer Responsibility and The Overall Framework for an Extended Producer Responsibility System in California. C. Finance Department Environmentally Preferable Purchasing Policy Prepared by: Lynn France. Environmental Services Program lvlanager, Public Works Department 7-3 A~cJnmef)+ A COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: PURCHA.SING ENVIRONMENTALLY POLICY PREFERABLE PRODUCTS ~ER EFFECTIVE DATE PAGE 10/21/2008 I of2 ADOPTED BY: Resolution No. 2008- AMENDED BY: Resolution No. (date of resolution) I DATED: 10/21/2008 PURPOSE: The purpose of this policy is to encourage departments to actively seek out environmentally preferable products for use in day-to-day operations when quality, performance, price, and functionality are comparable to their non-environmentally preferable counterparts. POLICY: The City of Chula Vista shall promote the use of environmentally preferable products and Extended Producer Responsibility through proactive buying practices. Departments shall purchase and use environmentally preferable products whenever practicable. Specifically, all departments shall purchase products manufactured with post-consumer recycled material. Departments. shall purchase recycled products instead of non-recycled products whenever recycled products are available at the same or lesser total cost than non-recycled products and the fitness and quality are equaL Departments shall purchase products from venders that agree to collect and recycle their products when they reach the end of their useful life, through producer operated or producer funded collection and recycling programs, whenever practicable and at no additional cost to the City. Departments may, with the approval of the Purchasing Agent, require procurement of environmentally preferable products. Departments shall require outside contractors and consultants to use environmentally preferable products in the perrormance of their service, whenever practicable. SCOPE: This policy applies to all departments. DEFINITIONS: "Environmentally Preferable Products" means those products that are more energy efficient, less toxic, less polluting, and which generate less waste overalL 7-4 COUNCIL POLICY CITY OF ClillLA VISTA SUBJECT: PURCHA.SING ENVIRONMENTALLY POLICY PREFE~~LEPRODUCTS ~ER EFFECTIVE DATE 10/21/2008 PAGE 20f2 ADOPTED BY: Resolution No. 2008- . I DATED: 10/21/2008 AMENDED BY: Resolution No. (date ofresolution) "Environmentally Preferable Purchasing" means the procurement or acquisition of goods and services that have a lesser or reduced effect on human health and the environment when compared with competing goods or services that serve the same purpose. The comparison takes into consideration, to the extent feasible, raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, disposal, energy efficiency, product performance, durability, safety, the needs of the purchaser, and cost. "Extended Producer Responsibility" means the extension of the responsibility of producers, and all entities involved in the product chain, to reduce the impacts of a product and its packaging. "Total Cost of Ownership" means a summary of all purchase, operating, and related costs for a product or serVice, including the acquisition, transportation, receiving, inspection, training, maintenance, operating, energy use, and disposal costs. PROCEDURE: The Purchasing Department shall take the lead in including environmentally preterable product and service specifications in bid documents and Citywide contracts, as appropriate. Total cost of ownership shall be considered when purchasing environmentally preferable products. With some exceptions, enviroiunentally preferable products shall only be purchased when cost- effective. A department wishing to require the use of an environmentally preterable product that may not be otherwise cost-effective shall deliver to the Purchasing Agent a written memorandulIl describing the compelling reasons for the use of environmentally preferable product. The Purchasing Agent shall review the memorandum and decide if the environmentally preferable product will be required. The decision of the Purchasing Agent shall be finaL RESPONSIBLE PARTY: Each department is responsible for purchasing environmentally preferred products, if practicable, and monitoring the product performance: REPORTS: Departments shall provide the City Manager with reports regarding purchase of environmentally preferable products in such form and at such times as the City Manager may direct. 7-5 .oducer Rcsponsiblity: CI\vlVlB Strategic Directive 5 (SD-5) "~~~QChooeJLtlQ,-,,,.~~~~,:.~ ~~~...t<>;:~-a;;"-"'~II"li'-'=1li:\Wl"'""'SJ,~=~~==-~,;:~.....G&I.~>1< ,bout the Board Home ;trateaic Directives Iteet the Board .eadershi2 'roaram <esoonsibilities .ocation/Directions ,taff Directory lobs/Exams 'ublications Jraanization Charts ="" ..... !'~ii' .. ::::~"U ff>~ ~',j'nl('~I:!~.':::" ,_~,,~~ ~a;j_"'..... -1",...-,o;.;l F~;'~ ". .t ',. '1- ~ ~jl' .-;l. . J~~:~~'" J.n~e't'if.:;h.e'!..l fu'\fC'll!;...e ~",~,,"':;4i ,"'" ""'~:"~,~ :;;~'''''-'''' ._..".,,""...... "" ""...~ .~~ ~~~~ll:I'~Q:;ci~il'a,;.~-~<l'~ ~O:L.~~ U Strategic Directives 1?J:h?':Hr.!?~~<:~.~. :R.:~~:l?Q11:~~b..il.i.tY.." ,.....". ..., H.'H', H ,......,................................- This page provides information on the CIWMB's Strategic Directive 5 (SD-5). Each of the five subdirectives links to further explanation including baseline measurement, metrics or performance criteria, annual targets, and key activities. Directive It is a core value of the CIWMB that producers assume the responsibility for the safe stewardship of their materials in order to promote environmental sustainabill~. Specifically, the CIWMB will: 1. Utnize existina Board authority..to foster "cradle-te-cradle" oroducer resoonsibilitv. 2. Seek statutor.i authority to foster "cradle-to-cradle" oroducer responsibilitv. 3, Analyze the feasibilitl of various aooroaches to increasinq Qroducer responsibilitv. includinq durinq the oreduct desiqn and oackaainq ohases, and make recommendations to the CIWMB Boarcl..Qy December ?007, and annuallv thereafter. 4, Build caoacity and knowledqe in CIWMB on extended producer resoonsibilit/lEPR) issues and solutions. 5. Develop and maintain relationshios with stakeholders that result in oroducer-financed and producer-manaced svstems for product discards, 5.1--Utilize existing Board authority to foster "cradle-to-cradle" producer responsibility. This subdirective recognizes those tasks and initiatives related to EPR that the CIWMB could bot" continue and initiate in the immediate and near term utiiizing existing Board authority.'The Board has been involved in severai initiatives related to EPR over the years, including rigid plastic packaging containers (RPPC), a-waste, and paint Baseline The baseline is existing legislative provisions (i.e. minimum content programs and a-waste) related to producer responsibility. Metrics or Performance Criteria The Board will track the number of regulatory and voluntary programs that have been implemented and/or modified to foster EPR. Annual Targets in the near term, the Board will revise and promulgate RPPC regulations and take initiatives to enhance enforcement based on regulatory changes. In addition, staff will be providing the Board with a broader set of EPR policy recommendations at the September Board meeting. Other targets, short- and long-term, will be determined based on those recommendations the Board accepts at that meeting. Key Activities Review existing federal and state statutes and regulations relative to EPR programs; amend regulations to foster additional EPR. 5.2--Seek statutory authority to foster "cradle-to-cradle" producer responsibility This subdirective proposes to seek new statutory authority in order to foster the "cradle-to-cradle" concept. This will allow the Board to create new regulatory programs reiated to EPR. Baseline The baseline Is existing regulatory programs and statutory authority oithe Board, Metrics or Performance Criteria The number of approved legi~~i6e amendments that support EPR will serve as a metric. ".^/,.,,~ ,-.(,r,G Jduccr Responsiblity: CIWMB Strategic Directive S (SD-S) Page 2 of3 Annual Targets Annual targets include introducing legislation that supports EPR directives. Key Activities Consultation between Legislative and External Affairs Office and Statewide Technical and Analytical Resources (STAR) Division to determine proposed legislative language regarding an overall producer responsibility framework. STAR Division staff to evaluate priority products or product categories to be targeted. 5.3--Analyze the feasibility of various approaches to increasing producer responsibility, including during the product design and packaging phases, and make recommendations to the CIWM8 board by December 2007, and annually thereafter. This subdirective proposes that staff analyze the feasibility of various approaches to increasing EPR. This analysis will include approaches focused on product design, packaging and existing frameworks being used in other jurisdictions. At the conclusion of the analysis. recommendations will be made to the Board, suggesting a particular approach to be pursued in California. Baseline Currently, no existing analysis of this kind exists within the Board. Metrics or Performance Criteria A report will be presented to the Board detailing the results of the analysis, listing potential options, and suggesting staff's recommendations. Annual Targets Complete analysis of EPR framework and product selection process and bring agenda item to the Board in September 2007. Analysis regarding EPR approaches for specific product categories wlil be completed by December 2007 or earlier. Complete preparation of supplemental Budget Report. Key Activities Key activities associated with this subdirective inciude reviewing existing approaches and frameworks being used by other jurisdictions regarding EPR and evaluating their success and feasibility for implementation in California. Literature searches will be conducted to determine what, if any, research has been done on the subject and how that research can be used to construct the most appropriate ERP framework possible. Other activities would include meeting with stakeholders and interagency workgroups. 5.4..Build capacity and knowledge in CIWMB on extended producer responsibility (EPR) issues and solutions This subdirective proposes that Board staff actively build knowiedge of EPR at the CIWMB. This indudes building an internal knowledge-base within L~e Board as weil as maimaining a web-based resource informing the public about the availability of that information. Baseline The baseline wlll be constructed based on the implementation of existing systems within the board such as the e-waste program. Metrics or Performance Criteria Th.e number of staff within the Board who has expertise in L'1is subject matter will serve as a metric for this subdirective. Annual Targets Targets for this subdirective include Board leadership in EPR-related discussions/forums/conferences as well as maintaining training of Board staff to ensure knowledge and expertise among staff. Key Activities Tne activities asso<?iated with this subdirective are associated with attending confe'rences, workshops, educational seminars as well as creating an educational and training pfan to cover EPR-related activities. This educational and training plan will also be advertised and information maintained on a web-based system. 7-7 "',... 1,-, ~ /,-,,.-.,/,n roducer Responsiblity: CIWMB Strategic Directive 5 (SD-5) Page 3 of3 5.5--Develop and maintain relationships with stakeholders that result in producer- financed and producer-managed systems for product discards. This subdirective is focused on creating and maintaining relationships with stakeholders (private, local, state, federal) interested in producer-financed and producer-managed solutions for product discards. Baseline The baseline consists of existing stakeholder relationships. Metrics or Performance Criteria The number of industry-wide contacts/relationships' among private sector as well as public sector companies/organizatlons/agencies will selVe as a metric for this subdirective, Annual Targets Develop and maintain EPR list of stakeholders, participate in EPR organizations and conferences, and engage in EPR ne.9otiations and agreements. Key Activities Activities associated with this subdirective include: ,,)> Creating a list of stakeholders interested in EPR by pro'duct type and make this list available online. .',> Participation in organizations involved in EPR including Product Stewardship Institute, California Product Ste\vardship Council, and the North American Hazardous Materials Management .A.ssociation. .", Engaging in and providing forums and discussions with stakeholders regarding various EPR topics. . .)', Participation in negotiations with organizations and industry to reach producer responsibility solutions. 50-4 I ;;>trateglc Directives Home Paae 1 50-6 Last updated: July 10, 2008 .""" "";""'_~'.'"...'" :,,,,,,"""""l,",,,,-,::,: ,~,,,,,;:;,,.:!:';"_""", .."':;"~ ~~ ::-...,~.".; ..,-,-,..,.."-_,..,. ;,'i'''''''''''' c'= =,;..",' . '_';-.'"".;'" ..,~.".,.,,,,,,,.,,, .tC -'t.'"""'''''' 0' ,..,~',,-,.,., .'-'..- ,", ", ,'"'' L'.".' c.' >c. !i' ""..'. ",,,,,,'~". .'.,.. ''". About the CIWMB htto:J/www.ciwmb.ca.qovi8oardlnfo/ Office of Public Affairs: ooa@ciwmb.ca.Qov (916) 341-6300 Cond!tions of Use I Privacv PoHc{ C91995 2008 California Integrated Waste Management Board. All rights reserved. 7-8 ('Hji'l.c:nnilx Board Meeting January 23, 2008 Agenda Item 12 Attachment 1 (Final) Attachment 1: Overall Framework for an Extended Producer Responsibility System in California This document contains staffs recommendations for an Overall Framework for an Extended Producer Responsibility (EPR) System in California. If adopted by the California Integrated Waste ~ranagement Board (CIWMB or Board), staff envisions that t'1is document, in addition to the Board's Strategic Directive 5: Producer Responsibility (http://www.ciwmb.ca.gov/agendas/mtgdocs/2007/02/00021620.doc) will guide further discussion and development of product stewardship programs in California. To achieve Strategic Directive 5, Producer Responsibility, the Cf'vVMB staff developed the proposed Extended Producer Responsibility (EPR) Framework Approach described in this document. This EPR Framework Approach would provide a comprehensive, yet flexible method for managing products l1-J.at have significant im.pacts on the environment and serve as an alternative to the current piecemeal approach with many different laws and methods. The EPR Framework is intended to guide proposals to seek statutory changes that would provide the Board with the authority to develop and carry out state government roles and responsibilities. 1fJs should include providing the Board with authority to establish overall program requirements and procedures, including but not limited to: 1) establishing agency-wide product selection procedures a,nd selecting product categories; 2) requiring producers of selected categories to work with retailers, haulers, local jurisdictions, and other stakeholders, as appropriate, to develop and implement Board- approved plans to address the targeted products; 3) specifying what provisions must be addressed in each plan (e.g., goals, fee or cost structure options, administration, reporting, etc.), while allowing flexibility in how provisions are implemented; and 4) specifYing enforcement mechanisms such as penaltj procedures and provisions for non-compliance. The approval'of a product stewardship plan would not preclude the implementation or. expansion of existing programs, nor would it preclude consideration of other approaches to end-of-life product management (such as for e-waste). The use of product-specific stewardship plans would be a key component to provide producers, retailers, haulers, recyclers, and other entities in the product chain wit.1. the flexibility to customize programs for specific products. Whileeach plan would address certain topics, how each topic would be implemented would be unique and customized for the product. Producers would also have the option of creating individual plans or participating in group or other plans. . Key Elements of an EPR Framework Approach Staff found that EPR Framework approaches have common key elements and, based on the analysis and stakeholder input, staff proposes these key elements: 7-9 Board Meeting January 23, 2008 1. Policy Goals 2. Guiding Principles Agenda Item 12 Attaclunent I (Final) S. Governance 3. Definitions 6. Products/Product Categories Covered 7. Program Effectiveness and Measurement 4. Roles and Responsibilities Tne sections that follow furt.her describe staff recommendations for an EPR Framework Policy Goals, Guiding Principles, Defmitions, Roles and Responsibilities, and Governance (ClWMB Authority). The remaining elements would be further explored and addressed in legislation or in the development of regulations. 1. Policy Goals The goals of the EPR Framework, and any product stewardship programs that would be implemented under it, are to: Address all materials in the waste stream, either in terms of volumetric or toxic impacts in landfills, where practical, with consideration of life-cycle impacts. Provide measurable net environmental benefits through product design innovation; improved environmental performance throughout a product's lifecycle, that includes reduced solid waste, toxic components, energy and water consumption, and reduced greenhouse gas and air emissions; the highest and best use of products and materials in a cradle-to-cradle system; and avoidance of transferring EOL management problems to' other states and countries. Advance green product design and the waste management hierarchy of source reduction and reuse, as well ~s proper collection and recycling where needed. Design product stewardship programs to maximize convenience to consumers and economic efficiency and market-based competition to stimulate innovation and reduce costs. Reduce the burden on taxpayers ik'1d ratepayers by transferring waste-related costs to producers and consumers of products. 2. Product Stewardship Guiding Principles Producer Responsibility All producers selling selected products into the state would be required to develop and/or participate in an approved product stewardship plan. Each plan would have. certain provisions that must be addressed (e.g., goals, fee or cost structures, administration, and reporting, along with environmental provisions such as source reduction and product design, collection, transportation and environmentally 2 7-10 Board Meeting January 23, 2008 Agenda Item 12 Attachment 1 (Final) . sustainable reuselrecycling, etc.), while allowing flexibilit'j in how provisions are implemented. _ Responsibility to physically and financially manage product end-of~life impacts shifts from general ratepayer and local government to producer and consumer. Responsibility is not shifted to other levels of government without consent or negotiated agreement with the affecred governmental entity. All producers for a particular product category are subject to the same stewardship responsibilities, wbch encourage environmental performa11ce by individual producers. Environmental Protection Strategies Environmental protection strategies and resource allocation shift to an emphasis on increased prevention, source reduction, green product design, and reuse; with increased collection and recycling, and purchase of environmentally preferable products, when feasible. Environmental protection strategies strive to harmonize policies and programs by various levels of government while acknowledging and preserving the unique authorities and responsibilities of each to address environmental concerns. New EPR programs should not dismantle existing programs that the Board determines effective. Strategies are designed to give government the flexibility to implement program improvements through administrative and regulatory processes. CIWMB will collaborate with agencies, internal and external, and other key stakeholders to effectively address cross-media and cross-organizational issues when considering the selection of product categories and when considering approval of product stewardship plans. System Coverage All consumers have reasonable access to convenient product collection locations. Results-Based Programs . Programs focus on results and provide producers wiLl], flexibility to determine the most cost-effective means of achieving the desired outcomes with minimum government involvement. This includes allowing individual producer responsibility, along with other options. Product categories are clearly defined to simplify compliance and enforcement and ensure common understanding among program participants. Programs are tailored for individual products and encourage continued innoyation by producers to minimize enviromnental impacts during all stages of the product life cycle, from product design to end-of-life management. Producers are accountable to both government and consumers for environmental outcomes and allocation of revenue from feesllevies. . Program development process is open and provides the opportuniry for input from all stakeholders. 3 7-11 Board Meeting January 23, 2008 Agenda Item 12 Attachment 1 (Final) 3. Definition of Key Terms a) Extended Producer Responsibility In the Background Paper Producer Responsibility: Overview of Policy Considerations from the June S, 2007 Strategic Policy Committee Meeting Workshop, staff presented various definitions of Extended Producer Responsibility, along with similar terms being used internationally, I Staff recommends the following definition: Extended Producer Responsibility (EPR) is the extension of the responsibility of producers, and all entities involved in the product chain, to reduce the cradle-to-cradle impacts of a product and its packaging; the primary responsibility lies with the producer, or brand owner, who makes design and marketing decisions. This definition is similar to the definition used by the Product Stewardship Institute in recognizing a shared responsibility, but one that lies primarily with the producer. The reference to the product chain includes but is not limited to producers (see definition b) Producer), retailers, haulers, consumers, recyclers, and local governments. EPR focuses on enhancing environmental benefits through improved product design for reduction and reuse, and increased collection and recycling ','Ihere needed, without transferring end-of-life management problems elsewhere. b) Producer This term is fundamental to any discussion on EPR, yet it is challenging to define for all products. In order to have a common understanding' of the term, staff offers the working definition below with recognition that a more refined definition would be needed for a product stewardship program t.'1at is focused on a particular 'product or product category. Product-specific definitions of the term producer need to be legally binding if all producers are to be held to the same ground rules, Producer means i. a person who manufacturers a product and sells, offers for 'sale or distribntes the product in California under the manufacture's own brand ii. if subparagraph (i) does uot apply, a persoll who is not the manufacturer of the product but is the owner or licensee of a trade mark under which a product is sold or distributed in California, whether or not the trademark is registered, or iii. if subparagraphs (i) and (Ii) do not apply, a person who imports the product into California' for sale or distribntion. c) Cradle-to-Cradle Impacts The term "cradle-to-cradle impacts" is referred to in the definition of "Extended Producer Responsibility" and staff believes it is beneficial to make it clear that EPR goes beyond advancing recycled content, t~e Board's traditional focus, but one that can lead to non-optimal environmental decisions. EPR I California Integrated Waste Management Board, Producer Responsibility: OverviewafPolicy Considerations, Background Paper. Prepared for the Strategic Policy Committee, June 5 2007, Pages 12-' 15. Available at: w\vw.ciwmb.cu.gov!agendas/l1ltgdocs/2007i06/00022\ 04.doc 4 7-12 Board Meeting January 23, 2008 Agenda Item 12 Attachment 1 (Final) is a comprehensive, rat.~er than single-attribute approach, and consequently is more likely to result in the best environmental solution. Cradle-to-cradle Impacts include energy, water, and materials use; greenhouse gas and other air emissions; toxic and hazardous substances; materials recovery and waste disposal; and worker safety. d) Product Stewardship Program This is a term l.'Jat is used by provinces in Canada and Board staff believes using the same tenn in California would be helpful to be consistent in our communications, particularly for thos'e stakeholders operating throughout North America. Product Stewardship Program is a program that encompasses product design for source reduction and reuse, as well as the collection, transportation, recycling, and disposal of unwanted products, including legacy products and the program's fair share of orphan products, which is financed as well as managed or provided by the producers of those products. e) Stewardship Organization Several terms are used to describe au entity that works on behalf of the producer to implement its responsibilities such as Third Party Organization (TPO), Producer Responsibility Organization (PRO), and Stewardship Organization (SO). Staff recommends using the rerm and definition below. Stewardship Organization is an entity appointed by a producer to act as an agent on behaif of the producer to administer a product stewardship program. 4. Roles and Responsibilities. Each stakeholder benefiting from a selected product shares in the responsibility of developing and implementing an effective product stewardship program. Staff recommends that the following general description of roles and responsibilities for producers, retailers, consumers, state government, local government, haulers', recyclers, and advisory workgroups be used to help lay a solid foundation for an effective product management and stewardship system. The roles and responsibilities would be modified, as appropriate, when developing any ensuing product stewardship program. While there is a description in this for general responsibilities for California State government, Section 5 below delineates specific governance authority that would be needed for CIWMB to develop and implement an overall product stewardship program. For each stakeholder group, staff identifies these types of responsibilities, where applicable. Product stewardship system effectiveness (oversight and continual improvement) Information needs/requirements Physical management of products and component materials (cradle-to-cradle) Financial management of end-of-life responsibilities 5 7-13 Board Meeting Januarj 23, 2008 Agenda Item 12 Attachment 1 (Final) A. Producers' Responsibility: System Effectiveness, Informational, Physical, Financial Whether established legislatively or voluntarily, an EPR approach to a specific product or product category places primary responsibility on the producers of that product to design and implement a program to achieve specified goals. Producers may use stewardship organizations (see Definitions of Key Terms above) to administer recovery and recycling programs for specified materials. 111e membership of a stewardship organization can be entirely cornplised of industry representatives, including manufacturers, distributors and retailers. Other stewardship organizations are multi-stakeholder organizations that include government representatives. Stewardship organization responsibilities usually include registering members, collecting fees from members,"managing a program fund, monitoring compliance, and reporting on results. In cases where producers create and elect to participate in stewardship organizations, the ultimate responsibility is retained by the individual producers while the functions may be performed by stewardship organizations. Additional details about individual versus collective producer responsibility would need to be addressed in product-specific product stewardship plans, as needed, due to variations in product design, market structure, and potential public/environmental benefit. System Effectiveness: Develop or use an approved stewardship plan for selected products. Each plan would have certain provisions that must be addressed including, but not limited to, goals, fee or cost structures, administration, and reporting, but there would be flexibility in how provisions are in1plemented Plans would also address product design, source reduction, collection, transportation, and,reuselrecycling of covered products considering lifecycle impacts and utilizing market incentives, as feasible. Informational: Provide effectiveness repOlis including performance and cost data to State government for covered products (e.g., t.l-tose products which may require registration). Provide audited fi.nancial records for EOL management, when required, to justify cost recoverj by stewardship organizations and maintain transparency and accountability to stakeholders. Develop and distribute educational material to consumers, retailers, local government, haulers, and recyclers on the safe use and storage of products, safe storage and handling of the residuals and containers, and the location of collection facilities. Clearly communicate information about proper EOL management for haulers, collectors, recyclers, local government, etc. Typically this is accomplished through Material Safety Data Sheets, product labels, and websites that explairi hazardous materials contained in the product and requirements for safe EOL management and recovery of the product. Participate in good faith with governmental organizations and multi-stakeholder groups to continually improve product stewardship program. Physical: Design products to reduce lifecycle environmental impacts. Support , environmentally preferable products and services through supply chain management decisions. 6 7-14 Board Meeting January 23, 2008 Agenda Item 12 Attachment I (Finai) Ensure the collection and management of material from tile consumer through a nei:'Nork of conveniently located collection sites. May choose to assign and oversee this responsibility through contracting directly with collectors, transporters, processors,or through participation in a stewardship organization. Ail occupational health and safety and environmental standards must be met in either case. Financial: Responsible for ensuring financial viability ofEOL collection and management whether contracting directly with a public or private entity, or through participation in a stewardship organization. B. Retailers' Responsibility: Informational, Physical Informational: Required to provide information from producers (or stewardship organizations on producers' behalf) to customers on how to access services. Physical: Retailers only seil products that are covered (e.g., registered) in product stewardship programs where they exist. Involvement in an EOL collection system is voluntary and may be compensated, as negotiated beween producers and retailers. Physical or System Effectiveness: Responsible for participating in workgroups to explore system effectiveness and negotiating in good faith with producers and other stakeholders to assume a share ofresponsibility. C. Consumers' Responsibility: Physical, Financial Physical: Responsible for following directions provided by producers including stewardship organizations, retailers, local government, and EOL service providers. Utilize provided coilection services and do not dispose of products through illegal or non- preferred means. Financial: Pay the costs of proper EOL management. D. General California State government responsibility: System effectiveness, informational, financial Several state government entities have responsibilities with respect to the state government role in developing a level playing field and providing oversight. These include the Legislature, CaI/EPA, CIWMB, and other relevant state level authorities. System effectiveness: Establish statutorf requirements and regulations that provide the authority to mandate individual financial and/or physical take-back of designated products; ban designated hazardous materials from use in products and/or landfill disposal; set mininlUm reuse, recycling and recovery rates; establish minimum environmental standards (e.g., source reduction, collection, processing, and recycling, reuse/export). 7 7-15 Board Meeting Januarf 23,2008 Agenda Item 12 Attaclli-nent 1 (Final) Devise a state government coordination process to .discuss and decide on environmental cross-media issues. Review and approve stewardship plans submitted by producers or by stewardship organizations on behalf of producers. The Board may'consider a means foi: individual manufacturers to be exempt from the EPR requirements for certain (or select) products that conform to special environmental criteria, where it can be demonstrated that conferring the exemption would result in compliance with all EPR goals. General procedures and criteria for making exemption determinations would be developed as part of the regulation process foHowing enactment of statute. Whether an individual manufacturer's product would be exempt would be considered as part of the process to select product categories and as part of the Board's evaluation of a proposed product stewardship pian. Implement EPR using guiding principles set forth in the Framework, including procurement specifications that encourage green product design. Participate in multi-stakeholder collaborative efforts to provide net environmental benefits, including efforts to establish product performance standards. Create a level playing field by ensuring that all producers comply with the established requirements and that targets are being met. Provide timely enforcement, which may apply to producers and other stakeholders, as defined in regulations that would be developed following enactment of statute. Consider the appropriat~ness for a neutral tpjrd-party organization to administer many of these responsibilities. Responsibility ultimately lies with government to assure environmental protection goals are bein.g met. State procurement officials must only purchase products that are covered (e.g., registered) in product srewardship programs, where they exist and State government should define environmentally preferable purchasing, in part, by the extent to which producers consider and incorporate management of toxics, packaging, and other EOL issues in their product design, production, and customer relationships. Informational: Make product stewardship plans available to the public and assist in information dissemination. Ensure public access to performance information and evaluations. Financial: Seek reimbursement for oversight and enforcement services, perhaps through product registration fees. Penalties should be considered, if producers or other stakeholders fail to meet the established requirements, or conversely, financial incentives may be offered for meeting or exceeding program requirements. E. Local. government responsibility: System effectiveness System effectiveness: Local government procurement officials must only purchase products that are covered (e.g., registered) in product stewardship programs, where they exist. Local governments may choose to participate in informational, physical, and 8 7-16 Board Meeting January 23, 2008 Agenda Item 12 Attachment I (Final) frnanciai roles at their discretion according to the needs of their community and may require/negotiate compensation by producers or stewardship organizations. Informational:.Make product stewardship plans available to the public and assist in information dissemination. Ensure public access to performance information and evaluations. Physical or System Effectiveness: Responsible for exploring system effectiveness, as feasible, with producers and other stakeholders. Resulting.collection systems may include use of curbside or other services as negotiated between the local governments and the producers. Financial: Receive compensation for services. F. Haulers' and collectors' responsibility: Physical, Financial, Informational Physical or System Effectiveness: Meet standards or use best management practices for handling products and materials. Responsible for exploring system effectiveness, as feasible, with producers and other stakeholders. Resulting collection systems may include use of curbside or other services as negotiated between the haulers or collectors and the producers. ~ . Financial: Receive compensation for services. Information: Provide information to producers that can be used to design or label products to enhance recovery, G. Recyclers', dismantlers', processors' responsibility: Physical, Financial, Informational Physical or System Effectiveness: Meet standards or use best management practices for handling products and materials. Responsible for exploring system effectiveness, as feasible, with producers and other stakeholders. Financial: Receive compensation for services. Information: Provide information to producers that elm be used to design or label products to enhance recovery. H. Advisory Committees' and Working Groups' Responsibility: System effectiveness, Infor'mational This category applies to advisory committees, scientific peer review panels, technical coordination or problem-solving groups, inter-agency management coordination and working groups. These groups may be set up with or without government participation. Producers are encouraged to form groups with other stakeholders to identify and develop efficient systems for managing products and materials and reducing environmental impacts. 9 7-17 Board Meeting January 23, 2008 Agenda Item 12 Attachment I (Final) System Effectiveness: Participate in the developed of regulations and the design of measurement metrics to help ensure transparency and accountability. Informational: Advise State government on product or process-specific issues related to producer responsibility. Areas for contributions by technical working groups may include, but are not limited to: product. selection process and criteria; development of product performance standards and facility operation standards; options to finance EOL management of orphan and historic waste, compliance to ensure a level playing field among producers, including importers; coordination with existing environmental programs. 5. Governance . Staff recommends that the Board pursue statutory authority to develop and implement an overall product stewardship program through a public process. This authority should include, but is not necessarily lin1ited to, the following: . 1. Establish overall Extended Producer Responsibility regulations; 2. Subsequently determine initial products or product categories to be included; 3. Allow for the addition of new product categories in the fJture; 4. Allow for the creation and implementation of exemption criteria (determined by the Board) by which a producer may apply to have its product or products exempted from the EPR program. S. Establish targets, measurement, and reporting requirements; 6. Require coverage of new, historic, and orphan products; 7. Allow independent and collective manufacturer programs; 8. Establish plan submission and reporting requirements; 9. Establish and collect penalties for non-compliance; 10. Establish transparency and accountability mechanisms; ll. Require use where appropriate of front-end financing mechanisms (e.g., point-of- manufacture or point-of-sale) as opposed to end-of-life fees; 12. Require coverage throughout the state, both urban and rural, at a level necessary to meet performance standards; 13. Require use of performance standards (may cover product performance, EOL management systems, and recyclinglrecovery facilities); 14. Require adherence to the State's solid waste hierarchy or other mechanism to ensure products are managed for highest use or proper disposal if hazardous and not recyclable; 15. Require best management practices for handling and various types of collection systems; 16. Require mechanismsli..'1centives to drive product design for environmental improvement (e.g., toxics reduction, greenhouse gas reduction); and 17. Require marketing, outreach, training andlor education'of stakeholders, including outreach to consumers. 10 7-18 Board Meeting january 23, 2008 Agenda Item 12 Attachment 1 (Final) Provisions in the product stewardship plan may include, but would not be limited to, items 4-17 listed above. Legislation and regulations would further define the provisions covered in a plan, but not how each provision is to be implemented, as that would be defined in the product stewardship plan. There would be considerable flexibility allowing plans to be customized for individual producers and product categories. 6. Products/Product Categories Covered While criteria used to select products/product categories would be determined within the regulatory process following enacttnent of statute, there are some general concepts that should be addressed in that process. The list below includes factors that would likely be addressed during this process, although it is not meant to be exhaustive or prescriptive, nor is it presented in order of importance: 1. Total volume being disposed in landfills 2. Level of toxicity or hazard to human or environmental health 3. Total Iifecycle net environmental impact 4. Potential for net lifecyc1e impact improvement 5. Level ofmarketlinfrastructure currently in place 6. Effectiveness of programs currently in place, if any 7. Current impacts to local governments/general ratepayers 8. Usage trends (increasing, decreasing, steady) 9. Difficulty to manage iO. Existing problem with illegal dumping II 7-19 ~V?- ~ '"..i...."-. ,. ""~ .,0". '. ' .,' ~~~~ I Attachment C Finance Department Policies and Procedures em OF (HUlA VISTA AUTHORITY: Finance NEW POLICY: SUBJECT: Environmentally Preferable Products REVISED POLICY: SUPERSEDES: POLICY #: EFFECTIVE DATE: July 1, 2006 Page 1 of 2 PURPOSE This policy is enacted to encourage departments to purchase, whenever practical, environmentally preferable products to meet their needs. POLICY Departments are encouraged to actively seek out environmentally preferable products for use in day-to-day operations when quality, performance, price, and functionality are comparable to their non-environmentally preferable counterparts. SCOPE . All departments shall use environmentally preferable products whenever practical. Special emphasis shall be placed on the purchase of products manufactured with post-consumer recycled material. . If fitness and quality are equal, each department shall purchase recycled products instead of non-recycled products whenever recycled products are available at the same or lesser total cost than n'on-recycled products. . Departments may, at their option and with Purchasing Agent concurrence, require procurement of designated environmentally preferable products. However, there shall be a compelling reason for use of designated environmentally preferable products that may not be otherwise cost-effective. a Outside contractors and consultants shall use environmentally preferable products in performance of their duties related to City business whenever practical. a The City of Chula Vista shall promote the use of environmentally preferable products through proactive buying practices and reference in bid specifications. DEFINITIONS Environmentally Preferable Products - "Products that are more energy efficient, less toxic, less polluting, and which generate less waste overall." Total Cost of Ownership (TCO) - "A summation of all purchase, operating, and related costs for a product or service. TCO includes: acquisition, transportation, receiving, inspection, training, maintenance, operating, energy use, and disposal costs." -, _"n PROCEDURE Total cost of ownership shall be considered when purchasing environmentally preferable products. With some exceptions, environmentally preferable products shall only be purchased when cost-effective. Evaluation of product is an acceptable practice. RESPONSIBLE PARTY Each department is individually responsible for monitoring and ultimately requesting environmentally preferred progucts. The Purchasing Division will take the lead in including environmentally preferable product specifications in bid documents and citywide contracts, as appropriate. REPORTS All departments shall provide the City Manager with reports regarding purchase of environmentally preferable products in such form and at such intervals as the City Manager may direct. ~ '" RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE PURCHASING ENVIROi\i~rENTALL Y PREFERABLE PRODUCTS POLICY WHEREAS, approximately 205,000 tons of discarded materials and products are currently sent to disposal from the City of Chula Vista and over 40 million tons of waste are disposed of statewide on an annual basis; and WHEREAS, on February 8, 2006, California's Universal Waste Rule, found in Title 22, Division 4.5, Chapter 23 of the California Code of Regulations, became effective which bans the landfill disposal of certain products that are deemed hazardous, including household batteries, fluorescent bulbs and tubes, therrnostats and other items that contain mercury, as well as electronic devices such as video cassette recorders, microwave ovens, cellular phones, cordless phones, printers, and radios; and WHEREAS, staff anticipates that the list of products to be banned from landfills will continue to grow because treated wood was banned in January 2007 and sharps have been banned effective September 2008; and WHEREAS, Extended Producer Responsibility is a policy that extends the responsibility of producers, and all entities involved in the product chain, to reduce the impacts of a product and its packaging; and WHEREAS, Environmentally Preferable Purchasing means the procurement or acquisition of goods and services that have lesser or reduced effect on human health and the environment when compared with competing goods and services that serve the same purpose; and WHEREAS, Environmentally Preferable Purchasing comparisons take into consideration, to the extent' feasible, raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, disposal, energy efficiency, product perforrnance, durability, safety, the needs of the purchaser, and cost; and WHEREAS, the California Integrated Waste Management Board requires cities to adopt Environmentally Preferable Product Purchasing policies as a component of its grant terrns and conditions. J:\AltomeyIRESQ\PQUCYIEoviromnenlully Prefe,..."ble Purchasin!l: Pol;cy_tO.2\.08.doc 7-22 Resolution No. 2008- Page 2 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it adopts the attached Purchasing Environmentally Preferable Products Policy. Presented by Approved as to form by ~L~ (L.~l~d~ Bart Miesfeld . Interim City Attorney Jack Griffin Director of Public Works Presented by Maria Kachadoorian Director of Finance J:'.ArtorneylRESOIPOLlCY'Environmental1y Preferable P..m:hasing Policy _10-21-08.doc 7-23 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: PURCRA.SING Ei'iVIRONlVIENTALL Y POLICY PREFERABLE PRODUCTS ~~ER EFFECTIVE DATE PAGE 10/21/2008 lof2 ADOPTED BY: Resolution No. 2008- I DATED: 10/21/2008 AMENDED BY: Resolution No. (date ofresolution) PURPOSE: The purpose of this policy is to encourage departments to actively seek out environmentally preferable products for use in day-to-day operations when quality, performance, price, and functionality are comparable to their non-environmentally preferable counterparts. POLICY: The City of Chula Vista shall promote the use of environmentally preferable products and Extended Producer Responsibility through proactive buying practices. Departments shall purchase and use environmentally preferable products whenever practicable. Specifically, all departments shall purchase products manufactured with post-consumer recycled material. Departments shall purchase recycled products instead of non-recycled products whenever recycled products are available at the same or lesser total cost than non-recycled products and the fitness and quality are equal. Departments shall purchase products from venders that agree to collect and recycle their products when they reach the end of their useful life, through producer operated or producer funded collection and recycling programs, whenever practicable and at no additional cost to the City. Departments may, with the approval of the Purchasing Agent, require procurement of environmentally preferable products. Departments shall require outside contractors and consultants to use environmentally preferable products in the performance of their service, whenever practicable. SCOPE: This policy applies to all departments. DEFINITIONS: "Environmentally Preferable Products" means those products that are more energy efficient, less toxic, less polluting, and which generate less waste overall. 7-24 COUNCIL POLICY CITY OF CffiJLA VISTA SUBJECT: PURCH.A.SING ENVIRON'MENTALL Y POLICY PREFERA.BLEPRODUCTS ~ER EFFECTIVE DATE 10/21/2008 PAGE 20f2 ADOPTED BY: Resolution No. 2008- I DATED: 10/21/2008 AMENDED BY: Resolution No. (date ofresolution) "Environmentally Preferable Purchasing" means the procurement or acquisition of goods and services that have a lesser or reduced effect on human health and the environment when compared with competing goods or services that serve the same purpose. The comparison takes into consideration, to the extent feasible, raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, disposal, energy efficiency, product performance, durability, safety, the needs of the purchaser, and cost. "Extended Producer Responsibility" means the extension of the responsibility of producers, and all entities involved in the product chain, to reduce the impacts of a product and its packaging. "Total Cost of Ownership" means a summary of all purchase, operating, and related costs for a product or servIce, including the acquisition, transportation, receiving, inspection, training, maintenance, operating, energy use, and disposal costs. PROCEDURE: The Purchasing Department shall take the lead in including environmentally preferable product and service specifications in bid documents and Citywide contracts, as appropriate. Total cost of oVillership shall be considered when purchasing environmentally preferable products. With some exceptions, environmentally preferable products shall only be purchased when cost- effective. A department" wishing to require the use of an environmentally preferable product that may not be otherwise cost-effective shall deliver to the Purchasing Agent a ViTitten memorandum describing the compelling reasons for the use of envirolLrnentally preferable product. The Purchasing Agent shall review the memorandum and decide if the environmentally preferable product wi!! be required. The decision of the Purchasing Agent shall be final. RESPONSIBLE PARTY: Each department is responsible for purchasing environmentally preferred products, if practicable, and monitoring the product performance. REPORTS: Departments shall provide the City Manager with reports regarding purchase of environmentally preferable products in such form and at such times as the City Manager may direct. 7-25