AMRC 2008 Fall Conference Waste Diversion Ontario Update

1. AMRC 2008 Fall ConferenceWaste Diversion Ontario Update October 24, 2008

2. Presentation Outline • Update on Blue Box Program • Blue Box review • Next steps on best practices • Plastics market strategy • Continuous Improvement Fund • Comments on MHSW & WEEE • Update on Used Tires Program • WDO Board Restructuring

3. Blue Box Review • Minister directed WDO to • Conduct a review of BBPP • Use EPR principles to form framework for review • Consult with relevant stakeholders • Submit report with recommendations • By March 20, 2009 • Link to Minister’s correspondence on WDO website • Under Latest News items

4. Blue Box Review Issues • Program performance • Program has achieved 63% diversion • Target for next 5 years • Material specific performance • Targets by material for next 5 years • Consistency across municipalities • For materials collected • Problematic wastes e.g. 15 litre PET bottle • Managing through BBPP or other mechanisms

5. Blue Box Review Issues • Blue Box wastes from IC&I • If & how BBPP could be extended • Blue Box wastes collected outside of Blue Box system e.g. garbage & litter • Collection options beyond municipal curbside & depot • Stewardship for these options & materials disposed as waste or litter • Additional Blue Box wastes • Reconsider BBPP definition to include other products covered by Blue Box Waste Regulation

6. Blue Box Review Issues • Environmentally responsible management • From collection to final market • Stewardship fees • Revising fees to increase diversion & recycled content • EPR funding • Moving BBPP towards full EPR funding • Impact to management of municipal recycling programs

7. Blue Box Review • WDO consultation process likely to include • Survey of Ontario residents • Number surveyed sufficient to be statistically significant • Facilitated meetings with • Stewardship Ontario Board • AMO-AMRC Waste Management Task Force • OWMA Board • ENGOs • Other industry associations • Facilitated MIPC-Blue Box retreat

8. Blue Box Review • WDO consultation process likely to include • Posting of draft report for comment • Workshop/webcast to review draft report • Written submissions during consultation period • To BBPPReview@wdo.ca • Consultation plan & backgrounder • Posted on WDO website • Likely early November

9. Blue Box Best Practices • MIPC-Blue Box established • BP Model Working Group • Review BP Study cost model parameters, data inputs, analog programs • BP Funding Distribution Working Group • Develop methodology based on BP • Under consideration • Base funding for all programs + Enhanced BP funding calculated using system of points for best practice activities • More information should be available at next ORW

10. More Blue Box • Plastics market strategy • Stewardship Ontario • Issued REOI – received 7 responses • Issuing RFP for new processing capacity for rigid packaging # 1 to # 7 & film plastic • WDO administration of CIF • Entered into agreement with SO & AMO to support CIF Director being employed by AMO • Approved Strategic Plan, 2008 Operations Plan • Delegated authority to MIPC-BB & CIF Committee to implement Operations Plan

11. MHSW • Phase 1 implementation issues • Delayed execution of municipal agreements & development of commercial collection system • Some retailers charged visible fees on July 1 • Consumers paying new fees but no new services • Phase 2 development issues • Exploration of substantive issues • Collection options to provide program accessibility • Residential collection, incentives, retail take-back • Transition from shared to full responsibility

12. WEEE • Phase 1 implementation issues • Service providers registering • Audits of processors to begin shortly • Concerns among some processers regarding methodology to allocate WEEE; may limit investment in new capacity/technologies • Phase 2 development issues • Orphan equipment e.g. typewriters • Likely higher costs due to lower material revenue • Likely lower diversion due to higher % of plastics • For which there are currently limited 3Rs markets

13. Used Tires • Program Request Letter (PRL) • Brand owners & first importers • On-road & off-the-road (OTR) tires • 90% diversion within 5 years • Higher value uses & green technology • Address stockpiles as a priority • Vendor qualification standards • Tracking & auditing

14. Used Tires - PRL • Minister directed • “There shall be a single fee paid by the stewards that is associated with the program” • “Collectors participating in program shall not charge consumers additional fee for management of tires following removal from vehicle” • Since • Stewards may choose to pass fee to customer as visible fee on new tire • Customers should not be charged an additional fee by retailers or municipalities for management of scrap tire

15. Used Tires – Current System • Money & tires track together • Retailers charge consumers up to ~$5/tire • Collectors pay haulers who then pay processors • System drives lowest cost management choice • As a result, tires are directed to TDF & Ontario processors lack feedstock

16. Used Tires – Program Plan • Stewards pay fees to OTS • OTS uses fees to pay for “collecting, storing, transporting, processing and marketing” scrap tires

17. Issues Under Discussion • Various processing incentives • For crumb rubber by mesh size & fabricated products • Possibly manufacturing incentive to encourage creation of new products & market demand • Hauler incentive to pick up & transport • Likely on a distance & quantity basis

18. Issues Under Discussion • How should haulers be paid? • Directly by OTS • Through collectors or processors • Possibly consolidation incentive • To accept tires from local haulers • To manage seasonal surge • Should program offer incentive to collection agents? • Or will collectors provide service at no charge? • Value of each financial incentive

19. Used Tires - Challenges • Layering stewardship program onto existing marketplace • Mature collection & hauling system • >8,000 collection points • ~40 hauling companies • 3Rs processing capacity • < 10 operating companies • With reported annual capacity for 5 to 9 million tires • Compared to ~12 million tires generated annually

20. Used Tires - Challenges • Used Tires Plan due to Minister by December 31, 2008 • OTS asked WDO to request extension • WDO Board agreed to request 2 month extension to February 27, 2009 • Decision at October 22 Board meeting • Request submitted to Minister October 23

21. WDO Governance • Restructured board • 5 Directors jointly appointed by 14 industry associations • 3 Directors jointly appointed by AMO & RPWCO • 1 Director appointed by City of Toronto • 1 Directly jointly appointed by RCO & OEN • 1 Directly appointed by Minister from MOE • 5 Directors appointed by Minister to represent public interest = 3 groups of Directors – 5 industry – 5 other stakeholders – 5 public interest + Director of Waste Management Policy Branch – who will abstain from voting

22. WDO Governance • Board retreat on November 26/27 • Orientation for new Directors • Opportunity for interaction among returning & new Directors • Consideration of go-forward operational & policy issues • First meeting of new Board on December 17

23. WEEE Contacting WDO Email Datacall Datacall@wdo.ca MHSW Report MHSWReport@wdo.ca BBPP Review BBPPReview@wdo.ca Executive Director glendagies@wdo.ca Telephone 416 226 5113 Fax 416 226 1368 Website www.wdo.ca