Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Sur

2. Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club 6857 168th Street Surrey, British Columbia Industry-Led Stewardship BC Government’s Approach Kris Ord Manager Community Waste Section BC Ministry of Environment

3. Presentation Overview • Ministry’s role & regulatory framework • Outline the model, regulation and process • Why this Policy Approach? • Key drivers • National Overview • Current BC Programs • Stewardship Program Expenditures • Environmental Results • Future Direction on Process & Product Selection • What’s next in B.C. ? • Candidate Product List • Questions?

4. Located on the west coast of Canada Population is 4.3 million (Canada’s total population is about the same as California’s) 3rd largest province in Canada Produces about 12% of the country's total GDP Future host of 2010 Olympic and Paralympics Winter Games Facts about British Columbia

5. Ministry of Environment’s Role… Ministry provides leadership in environmental management through: • legislation, • programs, and • compliance activities.

6. Our Policy for Industry-led Product Stewardship • Based on OECD’s Extended Producer Responsibility (EPR) model… “A management system based on industry and consumers taking life-cycle responsibility for the products they produce and use” • Shift away from government-managed, taxpayer-financed waste management programs

7. Life Cycle Perspective Design Scope of conventional producer responsibility Manufacturing Distribution Use Scope of extended producer responsibility Waste Mngt Producer: manufacturer/brandowner, first importer Slide courtesy of Karen Asp, Gartner Lee

8. Recycling Regulation (2004) • Results based regulation • Provides producers with flexibility to meet environmental outcomes • Industry must consult with stakeholder on their plan

9. Why We Do It This Way • In line with government direction - move towards results-based legislation • Focus on environmental outcomes not operations • Create level playing field • Provide flexibility in planning – one size doesn’t fit all • Ensure transparency – require public consultation and annual reports on operational and financial aspects • Provide flexibility for producers – their design or option to follow prescriptive Part 3 section • Ensure everyone has input through public consultation

10. Key Drivers • Premier’s and Cabinet’s direction/goals • Input from ENGOs, local governments and industry • Willingness of industry • Federal EPR initiatives – Canadian Council of Ministers of the Environment (CCME) EPR Task Force • Other jurisdictional initiatives • Toxicity • Volume • GHG Reductions

11. National Overview • Across Canada… • BC leads the way with now 9 programs. • Alberta and Saskatchewan have 6 • Ontario and Manitoba have ambitious agendas • CCME Extended Producer Responsibility Task Group • Action Plan for EPR • Packaging

12. Current Programs • Batteries (gov’t program) • Beverage Containers • Pharmaceuticals • Paint • Pesticides • Gasoline, • Solvents and flammable liquids • Tires • Used Oil, Containers and Filters • Electronics

13. Batteries • Not regulated under the Recycling Regulation but under the Hazardous Waste Regulation • Products include vehicle lead acid batteries • Administered by BC Government • Recovery rates – 98%, (high recovery driven by high metal prices)

14. Beverage Containers • Products include alcoholic and non-alcoholic beverage containers • Deposit-refund system • Overall high recovery rates – 84% for 2005 – 2006 • Agencies Responsible – Encorp. Pacific http://www.encorpinc.com/cfm/index.cfm • Brews Distributing Limited http://www.brewers.ca/ Cool Facts about Beverage Container Recycling • 50 % aluminium from cans is recycled at least once • 14 recycled PET bottles = 1extra large T-Shirt • 3700 recycled two litre beverage containers = 150 fleece shirts = one barrel of oil saved

15. Electronics • Products include computers (and peripherals), desktop printers and televisions • Agency responsible – Electronic Product Association of BC Status http://www.epsc.ca/ Program Operations – Under Contract with Encorp. Pacific • Regulated in February 2006 • New plan submitted February 2007 • Program Implemented August 2007 • Recovery rates – to be determined…

16. Paint – Product Care • Products include latex, oil and solvent-based paints and stains for commercial and household use • Agency responsible - Product Care Association http://www.productcare.org/ • Status – revised plan approved July 16, 2007 • 2005 recovery rates – • Paint – 2,164,042 L • Aerosols – 17,360 L

17. Paint – Tree Marking • Products include paints and stains in aerosol containers but not industrial, automotive or marine anti-fouling applications • Agency responsible Tree-Marking Paint Stewardship Association (TSA) http://www.treepaint.ca/ • Status – submitted revised plan for approval • 2005 recovery rates – • 141,121 containers processed

18. Pharmaceuticals • Products include all unused or expired drugs as defined in the Food and Drugs Act (Canada) • Agency responsible – Post-Consumer Pharmaceutical Stewardship Association http://www.medicationsreturn.ca/home_en.php • Status – submitted revised plan for approval • 2005 recovery rates – • Over 80% pharmacies participating • 18,012 kg unused medications collected

19. Residuals • Products include pesticides, gasoline, solvent and flammable liquids • Agency responsible – Product Care Association http://www.productcare.org/ • Status – revised plan approved July 16, 2007 • 2005 recovery rates – • Flammable liquids/gasoline – 54,386 L • Pesticides – 7,656 L

20. Tires • Products include pneumatic or solid tires designed for use on a motor vehicle, farm tractor, trailer or other equipment • Agency responsible – Tires Stewardship BC www.tirestewardshipbc.ca • Status • New plan approved September 2006 • Program implemented January 2007 (transfers government program to industry) • Recovery rates – over 90%

21. Used Oil, Filters and Containers • Products include lubricating oil, oil filters and the empty oil containers • Agency responsible – BC Used Oil Management Association http://www.usedoilrecycling.com/en/province.aspx?prov=2 • Status – revised plan due October 2007 • 2005 recovery rates – • Oil – 73% • Filters – 81% • Containers – 51%

22. Stewardship Program Expenditures – Saves Govt $

23. Environmental Results • In 2005, some of what was diverted from the landfill includes… • 772 million non-alcohol beverage containers • 3.8 million tires • 48 Million litres of oil

24. Vision for EPR Future • Our Ministry goal is to add two new products to the Recycling Regulation every three years • Work with other jurisdictions to harmonize EPR programs • Work with producers to foster design for the environment and reduce GHG emissions

25. How Are New Products Added • Scoping phase - research • Policy intentions paper phase – develop, consult on and finalize policy • Drafting phase – draft legislation • Implementation phase – training, guidelines etc

26. What’s Next in BC • Ministry Service Plan - add two new product categories every three years. • Select two products from candidate list • Fall 2007 - Release a policy intentions paper for public consultation on the selected products • Spring of 2008 - prepare amendment to the Recycling Regulation for government consideration • 2009 - Industry will develop a plan and launch program.

27. Candidate List of Products New Product Categories • Antifreeze and hydraulic fluid • Batteries (alkaline, lithium, lead acid, etc) • Light Bulbs (fluorescent, incandescent, LED, etc.) • Mercury containing products (switches, thermometers, thermostats, medical equip., etc) • Packaging (paper, plastic, metal, glass)** • White goods (fridge, stove, cfc containing, etc.) • Pool and photographic chemicals • Furniture and textiles • Construction and demolition waste • Automobiles **phased approach

28. Candidate List of Products (2) Expand Existing Product Categories • Electronics ** • Paint • Pesticides • Solvents and other flammables • Pharmaceuticals **phased approach

29. Our Product Stewardship Team

30. Thank you … Any Questions?

31. Beverage Containers • Regulatory requirements - Schedule 1 of Recycling Regulation • Definition of beverage exempts milk/substitutes • Minimum Deposit/Refund legislated: 1L or less non-alcoholic beverages - 5 cents 1L or less alcoholic beverages -10 cents More than 1L for any beverage - 20 cents • Return-to-Retail limit of 24 containers/person/day of containers sold • Annual report requires independently audited financial statements for: • revenues and expenditures associated with visible fees, and • all deposits/refunds paid • Regulation states a 75% recovery rate for beverage containers

32. Stewardship Agencies • Encorp manages LDB containers under contract • LDB in process of transitioning producer responsibility to the remaining stewardship agencies

33. Collection System • Consumers have choice of retail, depots or blue box/bag (forgo refund) • Stewardship plan identifies container redemption facilities • Encorp - 170 licensed depots (some also pick up from retailers) • LDB – retail stores (government liquor stores are transitioning to 24/person/day) and contracts with Encorp depots • BDL – retail stores and contracts with a few Encorp depots

34. Fees and Deposits • Three sources of revenue by category: • Sale of recovered materials • Unredeemed deposits • Visible container recycling fee (CRF), if revenue from first two sources is not enough to pay costs • Producers pay deposits and CRF to agencies, pass on to retailers, who recover from consumers