Recycling Council of Ontario

1. Recycling Council of Ontario The webinar will begin at 10:05am www.takebackthelight.ca www.rco.on.ca

2. Recycling Council of Ontario Protecting the environment for future generations through Reduction, Reuse and Recycling www.rco.on.ca

3. Introduction Speakers • Sheila McKnight, Take Back the Light Program Coordinator • Sarah Mills, Take Back the Light Program Manager • Jo-Anne St. Godard, Executive Director, Recycling Council of Ontario Webinar Housekeeping • Type your questions in the text bar in the “Q&A” section in the top right corner of your screen. (Participant lines have been muted to reduce background sounds.) • We are also happy to answer questions afterwards: 416-657-2797 x.7, sarah@rco.on.ca

4. Webinar Agenda • About the RCO • Experience in Development and Operations of Stewardship Programs • End-of-Life Lamp Management Regulatory Landscape • About TBTL – How the program works • Collective/Group Stewardship Plans • Individual Stewardship Plans • RCO’s Role and Value • Next Steps • Q & A

5. About RCO • Not-for-profit, non-government, membership-based environmental organization • Mandate – to inform and educate society about waste generation, waste reduction guided by the 3Rs hierarchy, more efficient use of resources and the benefits and/or consequences of these activities • Members represent a variety of stakeholders including municipalities, manufacturers, brand owners, material processors, industry associations, businesses, other NGOs, academics, consultants, and other ‘sister’ provincial organizations • Funding comes from government grants, events, membership, research funding, and corporate sponsors

6. History & Milestones • Celebrating over 30 years (incorporated in 1978) • Instrumental in developing Ontario’s Blue Box Program (25 years old – diverts 60% of residential packaging) • United Nations Environmental Award (1989) • Only environmental, not-for-profit organization, appointed by the Minister to Waste Diversion Ontario, consulting with the government of Ontario on the development of Extended Producer Responsibility programs

7. What We Do • Conduct research and share information • Support the development of effective waste reduction policies and programs • Form partnerships with members and other stakeholders to facilitate discussion and debate the issues. • Lead and support the implementation and application of policies • Operate waste reduction services and programs Current Programs & Projects • Take Back the Light (www.takebackthelight.ca) • Waste Free Lunch Challenge (www.wastefreelunch.com) • Waste Reduction Week in Canada (www.wrwcanada.com) • Ontario Waste Minimization Awards (www.rcoawards.ca) • Waste Diversion Certification Program (www.3rcertified.ca) • Zero Waste Community Event Toolkit /Certification Program

8. RCO & StewardshipCredibility Relevant Experience Subject Matter Experts • Solid Waste Mandate • Active role to support and develop stewardship policies/programs in Ontario • Facilitate roles and responsibility process in early 1990s, lead to current Ontario Waste Diversion Act (WDA) • Dedicated seat on current Waste Diversion Ontario (WDO), program oversight • Involved in every stewardship program under the WDA • Lead and developed one of only two Industry Stewardship Plans (ISPs) approved under the WDA • Launched innovative, markets-based program for mercury-containing lamps in 2008, (recognized by MOE in MHSW designation letter)

9. End-of-Life Lamp Management Regulatory Landscape

10. Regulatory Landscape • BC, Manitoba, Ontario and Quebec are in various drafting, planning and implementation stages of requiring that producers create some kind of product stewardship plan for their lighting products • Environment Canada has also began drafting Extended Producer Responsibility Regulation affecting mercury containing lamps • Proposed inclusions: • Obligated producer defined as a person that manufacturers or imports the into Canada • Producers can contract a third party to develop and implement program on their behalf • Minimum targets

11. British Columbia • Recycling Regulation B.C. Reg. 449/2004 • Stewardship program in place since July 1, 2010 for light bulbs and lamps sold for residential use • Stewardship Plan/s needed for “all electronic or electrical lighting equipment, parts and bulbs, including lamps, fixtures and flashlights” by July 1, 2012 (this refers to commercial sector products) • Obligated producers are defined as manufacturers, the owner or licensee of a trademark under which a product is sold into BC, or a person who imports the product. • Producers can choose between setting up an individual program or have their product/s managed by an agency on a collective basis. • a 75% recovery rate or another recovery rate established by the director

12. Manitoba • Waste Reduction and Prevention (WRAP) Act passed in 1990 - provides for the designation of products or materials for waste reduction responsibilities. • “In February 2010, Manitoba introduced the Household Hazardous Material & Prescribed Material Stewardship Regulation under the WRAP Act. The regulation identifies fluorescent lighting as a “designated material.”  • Affects residential lamps only • An obligated person is defined the first supplier or importer of a product into Manitoba • Producers can choose between setting up an individual program or having their product/s managed in a collective • Targets – 40% by year 5 • Stewardship plan to manage lamps goes into effect Feb 2012

13. Ontario • December 2006 Minister of Environment designates Municipal Hazardous & Special Waste (MHSW) subject to the Waste Diversion Act (WDA) – EPR Framework • Fluorescent lamps and tubes are included under this MHSW designation • Materials are designated through a Program Request Letter (PRL) from the Minister that provides the parameters around which a EPR program should be created • In this instance the PRL asked for a program targeted at “residential waste and small quantity waste from IC&I businesses” • Obligated producers are defined as brand-owners and first importers • Stewardship Program for lamps launched by July 1, 2010 • Stewardship Ontario – IFO launched a program on July 1, 2010 – cancelled within the same month by MOE due to Eco Fees (still designated, producer fees ‘on hold’) • Commercially generated lamps are managed through Take Back the Light, a voluntary program of the RCO – recognized by the Minister in the PRL

14. Québec • Environment Quality Act - Regulation respecting the recovery and reclamation of products by enterprises (not yet in force) • Included products: All mercury containing lamp • Obligated producers are defined as an enterprise that acts as the first supplier of that product in Québec • Producers can choose between setting up an individual program or work with an organization approved by Recyc-Québec to manage one on a collective basis. • Financial application of penalties when targets are not met • Once regulation is in force obligated stewards have one year to implement its recovery and reclamation program • Minimum recovery rate by 2015 for CFLs will be 30% and 40% for all other mercury containing lamps

15. Current Structure • Industry Funding Organizations are established either voluntarily and or mandated • Basket of Good approach – Broad range of products are managed in a ‘one size fits all’ approach • Funding – fees are set and charged on the sales of new lamps sold into the market place • Fees are assessed on an estimated future cost of management against stated targets • Stewards pays up front for future costs based on an estimated management costs which are extrapolated over sales into the market • Operational control and associated costs are beyond Producer influence – ‘one size fits all’ • Fees are set by product and are universal, stewards pay per unit sold • Programs are their own ‘creature’ and have their own brands. • Overhead, administrative, promotion and education functions are charged ‘on top of’ costs of management and recycling.

16. www.takebackthelight.ca

17. How does the TBTL Work? • Built on the principals of green procurement, utilizing existing commercial relationships. • The program is targeted to both sellers (distributors & manufacturers) and buyers of lamps • Buyers (waste generators) require sellers to be registered with Take Back the Light, meaning they require their supplier to take spent product back and have it recycled. • Sellers offer their customers value-added collection and recycling services • Buyers and sellers are connected through the interactive website www.takebackthelight.ca

18. Lamp Recycling & Processor Standards • In May 2011 the “RCO – Take Back the Light – Program requirements for mercury containing lamps recycling processors” was finalized • Processors must pass the standard to service TBTL • RCO contracted the Bureau du Normalisation de Quebec (BNQ) to work with us to complete the standard. BNQ was selected for their experience creating standards for services • RCO worked closely with Environment Canada to create the Terms of Reference for the standard and consulted with more than 20 targeted stakeholders including lamp processors, federal and provincial environmental regulators, provincial industrial hygiene specialists, program participants and waste reduction professionals • The standard is outcomes focused on environmental protection, occupational health & safety and high levels of material diversion.

19. Program Benefits • Efficient and effective – 3 million plus lamps recycled to date with voluntary program and 1 ½ staff • Utilizes existing systems and infrastructure • Lamp recycling costs are directly tied to the new product (Internalization) • Leverages natural competitive tensions • Strict Standards - Confidence that lamps are being recycled properly and all associated data is being verified • Partnering with an established, credible organization • Program tools (tracking and reporting database) and foundation already created • Ongoing support with information and quarterly newsletter

20. Collective Stewardship Plans & Individual Stewardship Plans

21. Collective/Group Stewardship Plans • In collective or group plans, obligated producers (or Stewards) typically join together and contract an agency (also known as an Industry Funding Organization (IFO)) to develop and operate a stewardship plan on their behalf • Basket of goods approach – variety of products pay into one program for ‘bulk’ servicing of end-of-life management costs like collection, program promotion, transportation, program operation, recycling and/or disposal • Producers pay into this group to pay for these program common costs and the agency administrative fee • Fee based on ALL sales into the marketplace • Program has brand and all products are managed under that brand

22. Industry Stewardship Plans (ISP) • Regulation affords the producers the option to join an IFO or manage their obligation independently (or with other partners in their category) • The plan is specifically targeted to the stewards products that have been identified by the regulation • Steward manage their own end-of-life product costs like collection, transportation, promotion, program operation, recycling/disposal

23. ISP benefits • Cost is based on what is recovered and recycled versus units sold into the marketplace – full control on financing • Manage only your share • Design a program/plan that considers and leverages your current business model/realities • Control all your costs • Control the design of all program elements maximizing operational efficiencies, potentially reducing costs • Provide a value-added service to consumers and clients that is attached to your brand

24. ISP benefits • Control performance - own and manage all data related to the program – have ‘real time’ feedback • Leverage branding and marketing opportunities that trumpets your stewardship activities directly to customers/public • Remain nimble – controlling the program means you can pro-act or react as needed the plan can be designed to suit the requirements of one province or several • Reduce and reuse becomes a viable option (where appropriate) • Program promotion and education tailored to stewards specific target market

25. ISP Process at a High Level • Stewards enter into a written agreement with RCO to become “party” to the ISP • RCO indicates to the regulatory body that an ISP for lamps is forthcoming (intent to submit) • Manage Stakeholder Notification and Consultation (as required) • Submission of a draft plan regulator for early comment • Resubmission if necessary • Approval • Scheduled reporting

26. ISP Plan Development- required info • Name of ISP proponent and verification of steward participation • ISP Proof of incorporation • Scope - The designated material(s) which the ISP will manage. • Target setting and reporting protocols • Standards of Care • A description of the waste diversion program, including collection system, transportation, consolidation and processing system Note: ISPs will not have to provide detailed budgets but will have to provide methodologies behind the targets

27. ISP Plan Development- possible supplemental info • A list of key program participants • A summary of the ISP proponent’s financial and human resources available to implement the ISP and details of any services to be sub-contracted to third party service providers. • The program targets for the first five years of the ISP implementation period and the methods that will be used to measure whether the targets are met.

28. RCO’s Role and Value • Quantify the Return on Investment of the ISP model • Support the development and approval of the ISP • Liaise with Regulator • Operate the program – collect and report data – infrastructure already in place • Audit service providers to the program’s standards • Report performance to participants and to regulators on their behalf.

29. Next steps • Establish a list of the obligated brand owners and/or first importers interested in the ISP model • RCO estimates collective and/or individual costs based on who will participate • Confirmation of participation based on an initial MOU • Notify the regulator of the intent

30. Contacts Sarah Mills Program Manager, TBTL 416 657 2797 ext. 7 sarah@rco.on.ca Jo-Anne St. Godard Executive Director, RCO 416 657 2797 ext. 3 joanne@rco.on.ca Sheila McKnight Program Coordinator, TBTL 416 657 2797 ext. 6 sheila@rco.on.ca www.rco.on.ca www.takebackthelight.ca