April 30, 2009

1. ConsultationWorkshop/ Webcast #2Revised (Phase 1 & 2) Waste Electrical & Electronic Equipment (WEEE) Program Development April 30, 2009 Slide 1

2. Welcome! • In-person ~60 • Webcast ~250+ • slides advance automatically • enlarge slide • email box for questions/comments on left side of webcast console • use any time • please include name & affiliation • Archived webcast available for 6 months Slide 2

3. Today’s Agenda (1) • Consultation process • Update on Phase 1 Program implementation • Designated Materials & Definitions • Enhancements to the WEEE Program • Baseline data & targets • Questions & answers • Break Slide 3

4. Today’s Agenda (2) • Program costs & preliminary budget • Changes to the fee-setting methodology • Preliminary Steward fees • Questions & answers • How to provide feedback & comments Slide 4

5. Draft Preliminary Revised WEEE Program Plan • Consolidated program to address Phase 1 & Phase 2 WEEE • Benefits: • deliver single integrated program • greater efficiency for Stewards & service providers • Final deliverable: Revised WEEE Program Plan • due to Minister of the Environment: July 10, 2009 • several interim deadlines to be met Slide 5

6. Plan Submission Timelines Slide 6

7. Progress to Date • January 21, 2009: Document for Consultation posted to OES website for comment • February 4, 2009: Consultation #1 • preliminary Consultation Report on OES website • includes all comments received to date • April 23, 2009: Draft Preliminary Revised (Phase 1 & 2) WEEE Program Plan posted for comment • Ongoing review with MOE & WDO • Stewards providing industry information See: www.ontarioelectronicstewardship.ca Slide 7

8. Objectives of Today’s Consultation • Update key stakeholders • Encourage continued engagement in plan development process • Receive program comments: questions & answers & input through survey tool • Outline key changes resulting from stakeholder feedback to date • Outline proposed enhancements to WEEE Program • Present preliminary Year 1 budget & preliminary Steward fees for consultation Slide 8

9. Next Steps • Thursday May 7: Deadline for comments • Comments to be addressed in development of final Preliminary Program Plan • to be submitted to WDO on May 15, 2009 Access to OES Consultation Survey tool: www.ontarioelectronicstewardship.ca Slide 9

10. Update on Phase 1 Program Implementation Carol HochuExecutive Director, OES Slide 10

11. Successful Launch of Phase 1 Slide 11

12. WEEE Being Diverted From Landfill • Key performance measures as of April • 240 applications to be collection sites • 2 processors approved; 8 in different stages of review • >60 tractor trailers of WEEE sent for processing Slide 12

13. Successful Launch of the Phase 1 Program • Do What You Can website: www.dowhatyoucan.ca • 25K visitors in 1st 5 days (to April 5) • 66K visitors through April 29 • Collection options: • 17 participating municipalities serving 2.5M households • another 2 dozen pending adds nearly 900K more households • 37 Salvation Army Thrift Stores - Windsor to Ottawa • 14 “round-up” events at SEARS Eastern ON stores: Saturday, April 25 • 17 trailers of WEEE collected • 17 Staples in Southwestern ON to begin May 1 Slide 13

14. “Clutter” Ad Slide 14

15. “Gulls” Ad Slide 15

16. In the Months Ahead • Continue to approve OES collection site & expand accessibility • Complete a Northern ON “tour” to approve & add collections sites • Approve OES reuse & refurbishment sites • Plan OES “round-up” events to fill gaps in accessibility • Initiate R&D activities under Phase 1 Slide 16

17. Preliminary Revised (Phase 1 & 2) WEEE Program PlanPlanning & Development Jennifer Russell Slide 17

18. Reminder • EEE: Electrical & Electronic Equipment • designated materials for which Stewards must report & pay fees to OES • WEEE: Waste Electrical & Electronic Equipment • waste EEE which OES responsible to manage in accordance with specifications outlined in WEEE Program Plan Slide 18

19. Material Categories & Definitions • Stakeholder feedback & comments included: • modification to language in EEE definitions • combined or separated EEE categories • clarification on inclusions & exclusions Slide 19

20. Rationale for Changes to Definitions • Group products with successive technology • 8 track cassette  CD  digital players • Recognize technological convergence • combined printer, fax, phone, scanner • Moderate fee impact due to changing consumer preferences & trends • selling >40" flat screen TVs today; recovering older CRT TVs • Harmonization with Steward definitions & reporting other provinces Slide 20

21. Revised Definitions • Additional modifications due to proposed changes to Program Plan & revised data sources Revisions included in new Proposed Material Categories & Definition Handout #1 Also available at consultation page of www.ontarioelectronicstewardship.ca Slide 21

22. Changes to Material Categories & Definitions • Separated Printing Devices from Copiers & Multi-Function Devices • Combined Televisions & Monitors into single Display Devices category • differentiated by ≤ 29" or > 29" screen size • Combined Portable & Desktop Computers into single Computers category • Refined scope of: • Telephones & Telephone Answering Machines • Computer Peripherals • Cellular Devices • Re-integrated: EEE designed for commercial applications (more to follow) Slide 22

23. Potential Impact of Changes • Changes to Steward reporting • revised categories for Steward reporting • changes to Phase 1 WEEE product fees on revised plan commencement date • new product fee categories • inclusion of EEE for commercial applications • Changes to program operations • new collection strategies & techniques required for some categories • different sorting & packaging requirements for collection sites • Changes to overall WEEE Program design • greater flexibility to incorporate flows of WEEE to increase accessibility & diversion Slide 23

24. Feedback Requested • Please review proposed changes to: • EEE categories • definition language • scope of inclusions & exclusions • Questions or comments welcome during Q&A or through written submissions • Submit comments & suggestions online: OES Consultation Survey Tool www.ontarioelectronicstewardship.ca Slide 24

25. Enhancements to the WEEE Program Gordon Day Slide 25

26. Program Enhancements • Revised WEEE Program Plan: • builds on experience gained from Phase I implementation • incorporates stakeholder feedback from Consultation #1 • addresses unique collection needs for certain Phase 2 WEEE • improves program flexibility • increases WEEE diversion options Slide 26

27. Key Changes • New collection channels to be incorporated under OES program • Increased flexibility on WEEE packaging requirements • Revised Draft Electronics Recycling Standard for primary processors • Revised methodology for allocating WEEE to approved primary processors Slide 27

28. Handout #2: Overview of WEEE Program Design Preliminary Flow of Materials & OES Funding Slide 28

29. New Diversion Opportunities… • Direct-shipment • between WEEE generation sites & OES-approved processors • Increased flexibility for WEEE collectors • approved collectors to provide a range of services to WEEE generation sites • Steward self-management • incorporate Steward self-management programs into OES program Slide 29

30. Direct-Shipment Option Slide 30 Handout #2

31. Direct-Shipment Option • Accommodates direct shipment of WEEE from generation site to OES-approved processors • Allows registered WEEE generation sites to maintain existing business relationships • If pre-approved by OES, WEEE generator will be reimbursed for processing costs incurred if sent to OES-approved processor • OES will not cover transportation or other value-added costs for direct-ship arrangements Slide 31

32. Steward Self-Management Option Slide 32 Handout #2

33. Steward Self-Management Option • Stewards operating separate WEEE EOL management programs may be incorporated in OES program • more accurate tracking of total diversion • Stewards already managing these program costs • lease-return & cell phone return programs • Approval required by OES • as outlined in draft Preliminary Revised Program Plan • Stewards approved to self-manage WEEE must remit Program Compliance Fee • cover share of common costs to discharge Steward obligations Slide 33

34. Increased Flexibility for Collection & Generation Sites • Collection sites may use any OES-approved containers • provided by OES • allow for handling options other than sorting & packaging requirements prescribed under Phase 1 • Collection incentive ($165/tonne) to offset WEEE handling costs • cost allocation under Phase 1 to be completed • Maintaining existing sorting & packaging groups • OES-approved collectors/collection agents may provide services to other generation sites New Group Slide 34

35. Approved Collectors/Collection Agents Slide 35 Handout #2

36. Approved Collectors/Collection Agents • Registered WEEE generation sites that do not meet OES sorting & packaging can participate in Program • OES-approved collectors may: • provide sorting & packaging services to meet OES requirements • direct WEEE to OES consolidation centre • receive payment of OES collection incentive • Commercial arrangements can be made directly between registered generation sites & OES-approved collectors • no OES involvement required Slide 36

37. Revised WEEE Allocation Methodology • Allocate only WEEE received at OES consolidation centres • Competitive RFP process with revised criteria • Recycling Rate = 50% weighting • Price = 30% weighting • Innovation & capacity = 20% weighting • Discontinue regional allocation approach • Allocation of WEEE by material (display devices; combined computers & other WEEE) • Extend contract length to 36 months • OES retain direct control of up to 20% of collected WEEE: • R&D & start-up testing of new processing equipment, & other applications Slide 37

38. Reuse & Refurbishment Standards • Clarified original language to close potential loophole • updated Appendix 8a (Section 4.1 & 4.2) • Export for reuse &/or refurbishment allowed only where product performs same function(s) for which it was originally designed • Other minor language changes Input welcome through OES Consultation Survey Tool www.ontarioelectronicstewardship.ca Slide 38

39. New Draft Electronics Recycling Standard (ERS) • ERS defines environmentally-sound recycling criteria as basis for processor audits: • based on Electronic Product Stewardship Canada (EPSC) national approach • developed with industry & ENGOs • requirements for environmental management, occupational health & safety, & downstream accountability for waste • expanded range of materials prohibited from export to non-OECD/non-EU countries Slide 39

40. Modified ERS Requirements • New requirement to remove batteries, mercury bulbs & ink toners & cartridges • Maintain documented closure plan with adequate financial measures • Cover any materials stored outside to prevent exposure to elements • Regular independent review of data destruction processes • Additional requirements outlined in Draft ERS Slide 40

41. Responsibility for Managing Materials Remains with Designated IFO • Batteries, fluorescent bulbs & tubes, mercury switches designated under MHSW program • Stewardship Ontario will have legal obligation for these materials as designated MHSW IFO • WEEE processors encouraged to register as MHSW collection sites upon revised MHSW Program Plan approval • Administrative procedures will be developed between OES & Stewardship Ontario: • reporting requirements • reconciling material management costs Slide 41

42. Providing Input to Program Enhancements • Review key proposed program enhancements • new collection channels & opportunities • flexibility for collection sites & collectors • revised allocation methodology for WEEE for processing • changes to the 2 standards • Questions or comments during Q&A • Submit comments & suggestions online OES Consultation Survey Tool www.ontarioelectronicstewardship.ca Slide 42

43. Baseline Data & Performance Targets Gordon Day Slide 43

44. Baseline Data & Performance Targets • Revised Plan based on best available data • new inter-provincial study of WEEE commissioned for 3 provinces: ESABC (BC), SWEEP (SK), & ACES (NB) • revised data on products supplied into ON extrapolated from national data • use of limited data available from Phase 1 program • revised OES assumptions about material flow • Steward self-management • Direct-ship Slide 44

45. Program Accessibility Baseline:232 permanent sites across 4 ON regions Detailed Accessibility Targets outlined in Section 5.1.1 of the Preliminary Revised WEEE Program Plan Slide 45

46. Initiatives to Increase Accessibility • Accessibility to collection services includes: • Permanent depots (municipal or non-municipal) • Event based collections (quarterly, bi-annual, annual) • Variety of accessibility opportunities: • curbside collection (e.g. Toronto) • multi-family collection (new collection vehicle to serve MF) • property management (tenants/employees) • universities/colleges (students) • Steward take-back & returns • material managed through Steward self-manage or direct-ship OES Consultation Survey Tool www.ontarioelectronicstewardship.ca Slide 46

47. Projected WEEE Supplied for Use in Ontario Detailed WEEE supplied for Use in ON outlined in Section 3.1 of Draft Preliminary Revised WEEE Program Plan Slide 47

48. Projected WEEE Available for Collection Detailed WEEE available for collection outlined in Section 3.2 of Draft Preliminary Revised WEEE Program Plan Slide 48

49. Material Flow Assumptions • Draft plan assumes 100% of WEEE collected at OES-approved collection sites • most conservative financial planning assumption • Feedback requested on: • appropriate estimate of % of WEEE to flow via Steward self-management channels • appropriate estimate of % of WEEE to flow via direct-shipment channels OES Consultation Survey Tool www.ontarioelectronicstewardship.ca Slide 49

50. WEEE Collection Set to Increase Detailed WEEE Collection Targets outlined in Section 5.1.4 of the Preliminary Revised WEEE Program Plan Slide 50