Meeting Minutes

Board of Directors Annual Meeting
October 28, 2004
Northampton, Massachusetts

Board Members & Member Designees Present: George MacDonald, Treasurer, ME SPO; Jeff Bednar, Vice President, PA DEP; John Trevor, President, RIRRC; Denise Denny, DSWA - Designee; Jane Frank, DNREC - Designee; Brooke Nash, MA DEP; Guy Watson, NJ DEP; Peter Pettit, NY DEC - Designee; Carolyn Grodinsky, VT ANR; Brenda Grober, NY ESD; Sharon Yergeau, NH DES; Judy Belaval, CT DEP

Advisory Members Present: John Manak, Con Edison; Steve Rosario, APC; Chip Foley, SRI

Staff Present: Lynn Rubinstein, Mary Ann Remolador, Chaille Blais (recorder)

John Trevor, President of the Board, called the meeting to order at 9:12 a.m.

Executive Director's Report

• Report on Inaugural Advisory Membership Breakfast
• Annual report FY 2004
• Operating plan FY 2005
• EPEAT (Electronic Procurement Environmental Assessment Tool) update
• ReCellular relationship update
• Toxics in Packaging Clearinghouse (TPCH)
• Request for Comments made to NERC
• Electronics Recycling Comments to Dept. of Commerce
• Advisory Membership environmental self-certification proposal
• Advisory Membership development
• Letter to the Board from the Newspaper Association of America re: the Northeast Newspaper Publishers Agreement

Report on Inaugural Advisory Membership Breakfast - October 27, 2004
Attendees: NERC Executive Committee; Chip Foley, SRI; Marie Kruzan, ANJR; Al Fralinger, PSEG; Mick Schum, WeRecycle!; Rona Cohen, ERC-CSG; John Manak, ConEdison; Frank Marella, Sharp; Chuck Riegle, TOMRA

The first Advisory Member breakfast was a tremendous success, despite the early hour. A good cross section of members participated - they were vocal, enthusiastic, and had good ideas for future conferences.

Advisory Members offered the following observations about NERC:

• NERC should continue doing what it has been doing. Take a holistic approach to materials management.
• Should continue to go beyond MSW and curbside issue, e.g. greenhouse gas issues.
• One of NERC's strengths is to be able to take positions and not to run away from controversy.
• It is important for NERC to weigh in with information rather than taking a strong position.
• NERC could serve an important role in helping to bridge communication gaps between various stakeholders and interest groups.

Requests/Suggestions

1. Consumer Reports Editorial Frank Marella commented that some of the NEPSI information, facts, research is not getting into the public discussion. For example, in its November issue Consumer Reports published an editorial taking a position that is contrary to the NEPSI resolution. He requested that NERC write a letter to Consumer Reports and cite the facts, data and work that had been done that were not considered in the editorial.
2. US Dept. of Commerce & 3 R's Chip Foley informed the gathering about a development at the 2004 G8 Summit. The G8 committed to do something about "the 3 R's": reuse, remanufacture, and recycle. Since then the US Dept. of Commerce has been struggling to come up with a strategy for the US. When Chip met with them he learned that they were unaware of EPA's effort and programs. Electronics recycling is one of the topics that the Dept. of Commerce discussions have highlighted. There will be a presentation with "results" at G8 meeting in Japan in late April. He suggested that NERC write to the Dept. of Commerce and offer its assistance in addresses the G8 directive.
3. Regionally Coordinated Electronics Recycling Legislation Rona Cohen noted that there is a great deal of misinformation in the electronics recycling debate. She suggested that we have a coalition of well informed states and that we should leverage that relationship and she offered to serve as a liaison with legislators.

It was suggested that developing model legislation that would implement the NEPSI model in our region and using ERC to promote with legislators was an appropriate strategy. Everyone liked the idea and Frank offered to send Rona some starting sample language.

It was agreed that each of these suggestions had merit and would be brought to the Board meeting with the recommendation that NERC take affirmative action on each of the requests and suggestions discussed above.

Annual Report FY 2004
The Annual Report was distributed. It includes the FY 2004 audit results. The Annual Report is posted on the NERC website.

Operating Plan FY 2005
The Operating Plan was distributed. It is posted on the NERC website.

EPEAT (Electronic Procurement Environmental Assessment Tool) Update
The final EPEAT meeting will take place in mid-November in DC. The 3-day meeting is expected to result in the finalization of a comprehensive and unique green procurement certification tool for large institutional purchasers. It has been a remarkable and positive process. After the November meeting Lynn will be at liberty to report on the details and products. At this time we have been asked to keep the details confidential in order to have maximum freedom to continue in our multi-stakeholder discussions.

ReCellular relationship update
Lynn continues to go back and forth with ReCellular to finalize contract language and to customize the NERC webpage on the ReCellular site. She had hoped to have had this resolved several months ago and remains cautiously optimistic that success will ultimately be achieved.

Toxics in Packaging Clearinghouse (TPCH)
NERC assumed the management of the Toxics in Packaging Clearinghouse on July 1, 2004 from the Council of State Governments (CSG). Patty Dillon was hired by NERC to be the TPCH Program Manager. She must be commended for her enthusiasm and outstanding performance.

This report summarizes activities and accomplishments from July 1 to September 30, 2004.

Administration

• Transition of TPCH from CSG to NERC
  • Work plan development in conjunction with Executive Committee
  • Receipt and organization of files/documents in paper and electronic formats
  • Review of TPCH materials and communications with TPCH Executive Committee to familiarize NERC staff with TPCH program and operation
  • Recognition by NERC staff and Executive Committee that recent CSG program management was lacking which required additional work by all to get TPCH "back on track".
  • Meeting of Executive Committee and NERC Staff on 8-13-04 in Northampton, MA to review NERC-TPCH work plan, program status and priorities
  • Communication vehicles established (phone line, email, website)
• Meetings
  • Reinstated TPCH monthly conference calls of full membership
    • First monthly conference call held on 9-7-04 with attendance by 8 of 10 member states, and minutes distributed
  • Planning for bi-annual membership meeting in Northampton, MA on October 28, 2004
• Inquiries
  • Phone log set up
  • Receipt of and response to 13 inquiries (12 email, 1 telephone; see attached phone log for details)
• Work on Summary Report, including an assessment of its status and tracking down drafts (to be completed next quarter)
• TPCH financial management

Outreach

• Outreach documents developed or updated and posted on TPCH website, including Fact Sheet, Benefit of State Membership, Why Should Industry join
• New PowerPoint presentation on TPCH developed in conjunction with David Westcott and Executive Committee for NERC Fall conference and for subsequent use by membership
• Website
  • New website created for TPCH
  • Communication with member states and external constituencies to update TPCH web link
  • Maintenance, additions to and reorganization of TPCH website, some of which will be completed next quarter
    • New on-line membership registration form, resource page of test methods and links to state programs and legislation
• TPCH promotion through NERC
  • TPCH link on NERC website
  • TPCH news included in monthly NERC bulletin
  • Planning Toxics in Packaging session for NERC Fall conference on October 27, 2004
• Publicity for TPCH in October issue of Packaging Digest (circulation 110,000)
  • TPCH staff interviewed for article
• Work with the Development Team of the Electronic Product Environmental Assessment Tool (EPEAT) to get Model legislation referenced as a packaging standard in national "eco-label" program for computer products

Membership

• General Administrative
  • Revisions to TPCH by-laws and dues structure, and approval of membership
  • Member state contact list updated & distributed
• TPCH Members
  • Combined invoice for FY2004 and FY2005 sent to member states
    • Active pursuit of membership dues and negotiation of reduced fees, if needed
    • Payments received from 3 states (NY, NH, CT) and 2 industry organizations (SRI, APC) to date
  • Inactive member states actively pursued
    • PA appointed new TPCH contacts, but no participation/communication to date
    • Pursuit of new RI contacts continues on multiple fronts
• TPCH Non-members
  • Recruitment letter with invoice sent to California; limited response and communication to date

Enforcement/Compliance/Testing/Research

• Preliminary research on lead in imported cans
• Research on status of state exemptions
• Research on adoption of Model by International jurisdictions
• Exploration of EPA Pollution Prevention web site for grant opportunities; currently no open solicitations

Expanding Scope of TPCH Focus

• Some initial research on trash bags and heavy metal content, which yielded little useful information

Requests/Suggestions from Advisory Membership Breakfast
The request to send a letter to Consumer Reports regarding the editorial supporting producer responsibility for electronics recycling was discussed. Chip supported the idea of making NERC the go-to place for information about the recycling industry, even if Consumer Reports doesn't respond. NERC could create a resource template that could have application in other products and tie in the response to EPEAT's efforts in hopes that "green-ness" would become part of Consumer Reports' evaluation process for products. Everyone agreed that Lynn should spend time on this effort.

It was agreed that NERC should also send a letter to the Department of Commerce, per Chip's suggestion, to offer to be of assistance in the development of their 3 R's strategy for the G8 Ministerial meeting in 2005.

There was general support for the concept of working with ERC and its legislative connections to propose a regionally unified approach to electronics recycling and hopefully other recycling market concerns as well.

Advisory Membership Environmental Self-Certification Proposal
As a follow-up to a discussion that began at the Summer Board Meeting, Lynn presented the draft language and comments that were received for posting an environmental self-certification on the website as part of the Advisory Membership membership form. The general question was asked whether there is value in letting it be understood that there is a general expectation that advisory board members adhere to environmental and other standards (laws) as part of the NERC organization.

Many members felt that though they understood NERC's intent with the proposed language, it would be difficult for members who represent other membership groups to "sign off" on such a proviso in good faith. It was noted that many organizations are utilizing a general Code of Ethics to address the issues that NERC is trying to respond to, but without getting into a micro-managing role. Steve Rosario offered to send Lynn models of Code materials to look at. It was agreed that this was worth considering and the discussion was postponed until there was an opportunity to consider that approach.

Advisory Membership Development
Lynn reported that she had mailed approximately 75 "blind" letters of invitation to join NERC as Advisory Members. The letters were addressed to individuals at organizations and companies identified by State members and Jessica Wozniak (program assistant). Lynn is still seeking more recommendations for letters of invitation.

Letter to the Board from the Newspaper Association of America re: the Northeast
Newspaper Publishers Agreement
Will need to vote on Newspaper agreement soon, but Lynn would like discussion to begin now. The original agreement was that NERC was to collect baseline tonnage info and then for 3 years following, collect annual data to be provided by the newspaper companies. This is the third year of the agreement. The NAA asked that the NERC board consider amending the agreement to say that it would continue in perpetuity and eliminate the annual data collection. For its part, NAA will work hard to get commitment from their members.

There was much discussion regarding the reporting issue and it was generally felt that the lack of reporting would render the agreement largely ceremonial in nature, rather than being an active commitment on the part of the newspaper companies. The question became "Is it better to have an agreement without data, or not have an agreement?" and could we take this agreement template and move it to another industry, like the catalog publishers?

Further discussion focused on the usefulness of the collected data and the economics of recycled content paper for the newspapers. George shared with the group that the ink used by some papers is an issue affecting paper recovery/recycling, and not necessarily the paper availability. The newspapers using 'Flexo' ink, which is better for the environment, is harder to remove from the newsprint fiber, so the balance of this ink's use, vs. recycled content, is a hard one to manage in some mills.

Is there an exception that could be developed that would be meaningful for Connecticut i.e. if NAA would continue the commitment to use more recycled content paper.

Lynn reminded the group that there is no set timeframe for responding to Peter Boyle's letter. The Board agreed to do a conf call with the NAA to discuss the aforementioned questions the Board raised. Lynn will communicate back to Peter that there was a discussion and that the Board would like to do the call in late Nov or early Dec. In the meantime, this can be an ongoing Board discussion to solidify NERC's position on this before the call happens.

Electronics Recycling Comments to Dept. of Commerce
NERC submitted comments to the US Dept. of Commerce about electronics recycling. Due to the short timeframe in which the opportunity was presented, the comments were reviewed only by the Executive Committee. It was agreed that even though the official comment period has closed, we will draft a more comprehensive commentary and that will be shared with the Full Board and Advisory Members for review and then submittal.

Mary Ann Remolador, Assistant Director Report:
Closed projects:

• Hazardous waste collections
• Materials Exchange for schools and municipalities
• Massachusetts Municipal survey

New projects:

• TARP wastewater protocol
• Peer to peer for ME, NH, VT
• Recycling at special events (Mark Morgan, consultant for this project)
• EPA reuse marketing plan
• BUD summit in Kansas City - NERC asked to be on committee to plan agenda

Mary Ann still oversees EPPnet and its archive, as well as the North American Green purchasing Initiative, also. Other tasks include proposal writing, staff supervision, and conference planning.

She noted that NERC needs to post preliminary agenda for spring conference (March 22-24, 2005) in January. Topic ideas that are specific in nature are most welcome!

Treasurer's Report - Presented by George MacDonald
Audited Financial Statement shows that no monies were taken from the reserve account to cover operations in FY04, contrary to what we thought would need to happen. The FY 05 budget has a healthy overhead which will be put into the reserves for future operational costs. The first quarter of the fiscal year shows a net income that is in keeping with projections, so we are on track thus far.

Round-up of Members' Hot-Button Topics:
RI - PAYT - Growing demand by municipalities. RIRRC anticipates contracting with NERC to secure and oversee consultants.
NY Economic Development - Barriers to getting state procurement agency to buy recycled and environmentally preferable products.
VT - No comments offered.
NY DEC - Major revisions of solids waste provisions in progress. It has been about 12 years since that has happened. Looking for input - internal drafts at this point, but comments can be received now.
MA - Budget even lower than before. Waste Management was awarded the Springfield MRF 10 year contract. Excellent terms that include payments to the communities for every ton received; independent of market rates. They are looking to fill Peter Allison's position and a Bottle Bill \Administrator. The Department was awarded a grant from the MA Technology Collaborative to do climate change work.
NJ - Joined with 35 other states on point of sale fee on tires. The Attorney General has issued an opinion requiring any public entity that provides a trash container to provide recycling as well. Initially, they are targeting convenience stores, recreational facilities and health clubs. There is also a great deal of activity on the issue of mandating the removal of mercury switches from vehicles at the end-of-life.
DE NREC- Moving forward with bill requiring mandatory recycling; phased in by county but statewide eventually.
CT - There is an RFP out for an update of the solid waste plan. They have lost positions due to early retirement and as a result there is no forward movement with programs.
PA - Lost DEP Deputy Secretary and Bureau Director. Funds are diminishing and will be gone in a few years.
ME - Got their landfill last week! The SPO works with over 500 groups on a town by town basis. Effective Jan 1, there will be a disposal ban for mercury, and in 2006, CRT disposal.
Con Edison - Recent announcement of Hugo Neu to build major new processing facility in Brooklyn. City is providing the land and infrastructure for the facility.
DSWA - Residential curbside is currently available throughout New Castle County via subscription. The program is gaining momentum and 2,500 customers have joined since the April launch.
NH - The upcoming election could have an impact on the budget cuts imposed at DES in the last year to the solid waste programs
SRI - The steel industry is making money for first time in five years. Mercury remains the biggest issue; it takes up 80% of his time. They are pushing the establishment of a recovery program that gives bounties to dismantlers for the removal of mercury switches and paid for by manufacturers; like the ME legislation.

John Trevor and all Members thanked John Manak again for all of his outstanding work and congratulated him on his upcoming retirement.

Meeting was adjourned at 11:52.