Industry Stewardship in Ontario

1. Industry Stewardship in Ontario Gordon Day for Washington State November 1, 2006

2. Today’s Presentation • Regulatory framework in Ontario • Ontario Blue Box Program • Key Features • Results • Scan of other provinces

3. Ontario • About 2x the population and area as Washington State • Birthplace of the “blue box” – 25 yrs ago • 94% of population in Southern Ontario • Waste management is provincial responsibility, managed by local regions, counties and cities • S. Ontario shipped 1.15 million tons to U.S. in 2005 • will end by 2010

4. Background Minister of the Environment Waste Diversion Act, 2002 Waste Diversion Ontario Stewardship Ontario Municipalities Stewards

5. Blue Box Program Plan • Industry pays 50% net municipal recycling system costs • paying to best practices • Program “obligates” consumer products • brand owners • first importers • franchisors • Stewardship Ontario sets & collects fees • Fees fund municipal Blue Box recycling programs Program began: February 1, 2004

6. More than Just the “Blue Box” • “Blue Box Waste” is material managed through municipal waste management systems • IC&I is not part of the program • Printed paper • newspapers, flyers, magazines, catalogues, directories, direct mailings, bills, junk mail, etc. • Packaging • paper packaging, plastic, aluminum, steel, glass & composites

7. Key Features • Fee Setting Formula • Allocates fees across all printed paper and packaging materials • 23 material sub-categories • Changes for 2007 reward those materials with higher recovery rates • On-Line Reporting • Stewards report on-line www.stewardshipontario.ca

8. Effectiveness & Efficiency (E&E) Fund • Objective: to reduce system cost & minimize future cost increases as recovery increases • 10% of industry contribution to municipalities directed to E&E Fund • ~$5 million program funding per year • 50 projects currently approved for funding valued at $7.18M See “E&E Fund” section of www.stewardshipontario.ca

9. Registrations & Reports 1 as reported in Stewardship Annual Reports

10. Results to Date • Achieved financial target in 2005/06 • Distributed $185 million to 190 Ontario municipal since 2003 • 55%+ recovery rate all materials • First charges laid under the Waste Diversion Act (WDA) • Market development • 2003/2004 fees  $2.5M for glass • 2005 fees  $100K for plastics

11. Beverage Containers • Integrated collection with other recyclables • Beer on separate deposit system • Recovery rates in 2004: • Wine/spirit glass 68% • Aluminum SD: 43% • PET beverage: 55% • Aseptic/gable top: 13% • Sept 07 announcement that wine/spirits will be on deposit in 2008 • Returned through Beer Store system

12. Extended Producer Responsibility - Legislation Across Canada - full-colour symbols mean in-place or pending legislation white-washed symbols mean proposed legislation see inset

13. Other Provinces • Similar approach being adopted in other provinces: • Quebec: starting Fall 2006 • Manitoba: regulation in 2006; 12 months • Saskatchewan: timing ~2008 • Beverage deposits in all other provinces • High return rates; expensive $/ton • Most have parallel unfunded curbside/depot services

14. Summary • Stewardship Ontario first of its kind in North America • integrated program to address all consumer packaging and printed paper • Shared responsibility model approach has industry & political traction • Clear shift in responsibility from government to industry • 100% vs. shared • Visible vs. invisible fees

15. Keeping Up To Date www.wdo.ca www.stewardshipontario.ca www.csr.org Gordon Day Manager, Customer Services 647-777-3361 gday@csr.org