Defining the Role of Local Governments in Supporting EPR Policy April 14, 2011

1. Defining the Role of Local Governments in Supporting EPR Policy April 14, 2011 Recycling Council of Ontario

2. Association of Municipalities of Ontario • The Association of Municipalities of Ontario (AMO) is a non-profit organization representing almost all of Ontario’s 445 municipal governments and provides a variety of services and products to members and non-members, including the development of policy positions and reports on issues of interest to municipalities

3. Provincial Integrated Strategy • AMO’s 2005 Proposal for an Integrated Waste Management Strategy (www.amo.on.ca) • MOE’s 2008 Consultation Paper, Towards A Zero Waste Future: Review of Ontario’s Waste Diversion Act, 2002 • Minister’s 2009 Report on the WDA Review, From Waste to Worth: The Role of Waste Diversion in the Green Economy • Review of Stewardship Ontario’s 2010 Proposed Blue Box Plan Revisions

4. EPR Successes and Developments • 50% EPR - Blue Box Program • 2004 – eligible costs include net cost of collection & processing for municipal containers, packaging and printed materials • 2009 - 216 participating municipalities recovered 67% of available Blue Box materials in the residential sector • 100% EPR - Used Tires Program • September 2009 – Collection, transportation & processing of On-road and Off-road tires including passenger, truck and off-road tires

5. EPR Successes and Developments • 100% EPR - Waste Electrical and Electronic Equipment (WEEE) • April 1, 2009 - Phase 1 including computer equipment and televisions • April 1, 2010 - Phase 2 including cell phones, cameras and other household electronics • 100% EPR - Municipal Hazardous or Special Waste (MHSW) • July 1, 2010 - all costs including collection through final diversion or disposal for Phase I and Phase 2 materials

6. Blue Box Program Highlights • December 2003 Liberal Minister accepts SO BBPP • 50% Producer Responsibility for BB Costs • 2009 Municipal programs recover 67% of BB material – Net Cost $224 million • 2008 Municipal Recycling exceeds 60% BBPP Goal • Creation of CIF to promote Best Practices & Innovation • June 2002 – Conservatives introduce WDA to protect and fund Blue Box Programs • WDO created to administer funds & monitor

7. MOE Discussion Paper – Toward a Zero Waste Future • MOE published “Toward a Zero Waste Future” as a discussion paper in October 2008 and requested public input • Toward a Zero Waste Future presented key themes: • Zero Waste or “cradle to cradle” vision; • Extended Producer Responsibility (EPR) • Extended Producer Responsibility would drive a sustainable green economy in Ontario • EPR would make producers responsible for end of life costs driving packaging re-design and supply chains for recycled materials

8. Waste to Worth – MOE’s 2009 Proposal • Individual producers responsible for all aspects of waste diversion of their share of designated materials sold in Ontario. • Producers may develop individual waste diversion plans or join a materials management scheme to provides collection, processing, marketing, data reporting and meet compliance requirements. • Plans must provide consumer convenience, verifiable diversion of designated materials, meet material specific diversion targets and track materials from handling to final destination

9. Waste to Worth - Outcome Based Approach Waste to Worth suggested a ‘waste diversion framework’ based on 4 outcomes: • Increased waste diversion; • more focus on “Reduce” and “Re-use” concepts • increased Recyclability of packaging • Sustainable product and packaging design; • Investment in green industry to develop re-use opportunities and recycled material supply chains; and • Keep everyone in the game • Opportunities for meaningful participation in waste diversion activities by all Ontarians

10. The Minister’s Report – Waste to Worth • October 2009 – Minister published “From Waste to Worth: The Role of Waste Diversion in the Green Economy” • Report represented 5 year review of the Waste Diversion Act • Key themes: • 39% residential and 12% ICI diversion – not good enough • EPR is the solution – it works in other jurisdictions • producers will make more responsible and sustainable packaging decisions if they have to deal with end of life costs and management • producer driven solutions will create a sustainable green economy and recycled material supply chains in Ontario

11. Supply Chain Concept Supply Chain” concept recognizes inherent value of recycled content increases EPR allows development of green industry at all stages in product life cycle • Inherent value of recycled content increases with each step • collection represents a cost • processing generates a small profit from sale of raw recovered material • advanced processing product results in much larger profits • finished (re-manufactured) product re-sale produces a large profit

12. Anticipated Impact of Full EPR • Full Extended Producer Responsibility for containers and printed materials will not become a reality until changes to the Waste Diversion Act are tabled. • AMO anticipates that changes will increase recycling of materials in both the residential and ICI sectors and increase stewards planning, compliance and reporting obligations. • Full EPR will place accountability for waste diversion under the control of producers responsible for making decisions about introduction of packaging and printed materials into the marketplace.

13. Transitional Issues • Minister’s Waste to Worth Report anticipates a lengthy transitional stage as EPR moves from the current 50 % to 100% and Stewards establish their own infrastructure • WDO will need transition funding to evolve into its new compliance assurance and enforcement roles and as preliminary individual waste diversion plans and materials management schemes are developed • Municipalities will need incentives to improve MRFs and collection infrastructure that they will not continue to own and operate.

14. Thank You Association of Municipalities of Ontario www.amo.on.ca