Beverage Container Program Controller Conference – Yellowknife, NT October 28-30, 2008

1. Beverage Container ProgramController Conference – Yellowknife, NTOctober 28-30, 2008 Diep Duong, P.Eng. Solid Waste Specialist Environment and Natural Resources, GNWT

2. Presentation Overview • Legislative framework • How the Beverage Container Program works • What happens to the containers once they are processed • What the Program has achieved • How the Program is doing financially • New waste reduction and recovery programs and initiatives

3. Legislative Framework • Waste Reduction and Recovery Act • Passed in the Legislative Assembly in October 2003 • Provides a framework for the establishment of programs to reduce, reuse, recycle and recover (4 R’s) materials in the NWT • Enables Cabinet to establish regulations and programs • Establishes a special purpose fund called the Environment Fund – all surcharges collected under the Act must be deposited into the Fund

4. Legislative Framework • The Beverage Container Regulations passed in July 2005 • The first program established under the Act is the Beverage Container Program, implemented on November 1st, 2005 • The Program is a deposit-refund – user pay system similar to most Canadian programs that are operating • Includes all ready-to-serve beverage containers (juice, water, pop, beer, wine, spirits, etc.), except milk and milk substitutes

5. How the Program Works • Beverage container distributors pay a surcharge into the Environment Fund for each beverage container they distribute or sell in the NWT • Surcharge charged to consumer at purchase • Refundable deposit returned to consumer when container returned to depot • Non-refundable handling fee used to pay for all program expenses, including depot and processing centre handling fees, promotion, transportation, staff salaries and other administration

6. How the Program Works

7. How the Program Works

8. How the Program Works • Depot– deposit returned, container is sorted, stored then transported to a regional processing centre • Processing Centre – container is processed (densified, baled) and shipped to recycling or local reuse market • Southern Markets/Use Locally – container is sold to southern markets or in the case of non-refillable glass, it is crushed and used locally

9. How the Program Works

10. How the Program Works Depots reporting to the INUVIK PROCESSING CENTRE Depots reporting to the YELLOWKNIFE PROCESSING CENTRE Depots reporting to the HAY RIVER PROCESSING CENTRE

11. What Happens to the Containers? • Refillable beer is returned to Brewer’s Distributing Ltd. in Edmonton to get refilled • Aluminum is densified into briquettes and sold to markets in Vancouver • Plastic is baled and sold to Merlin Plastics in Calgary • Multi-material containers (i.e. Tetra Pak and gable top) are baled and sold to overseas markets along with the Alberta containers • non-refillable glass bottles are crushed and used locally

12. What Happens to the Containers?

13. What Happens to the Containers? • Refillable beer bottles can be refilled 15 times • Aluminum cans are made into new aluminum cans within approximately three months and uses 95% less energy than making aluminum cans from bauxite ore • Plastic bottles can be made into fleece clothing, plastic lumber and reusable bags • Multi-material containers (consisting of paper, plastic and aluminum foil) can be made into paper products, hangers, and flower pots

14. What Happens to the Containers?

15. Program Achievements • Currently have 22 locally operated depots and eight satellite depots • All residents of the NWT have access to the Program • To date, the NWT has reused or recycled over 68 million beverage containers • Last year’s recovery rate was 81% which is higher than many deposit-refund programs in Canada

16. Containers Returned by Region – Expressed as a Percentage INUVIK REGION 21% SAHTU REGION 3% NORTH SLAVE REGION 51% DEHCHO REGION 3% SOUTH SLAVE REGION 22 %

17. Containers Returned by Material Type

18. How the Program Performs Financially • Deposit-refund user pay system • Program operates solely on the revenues collected from beverage container distributors • Does not require government subsidy to operate • Revenue FY07/08 – $5.2 million • Expenses FY07/08 – $4.7 million • Excess revenue from operations is approximately $500K

19. How the Program Performs Financially

20. Waste Reduction and Recovery Program Expansion • Consultation last winter to expand to other programs/initiatives: • Electronic waste • Lead acid batteries • Tires • Milk containers • Plastic grocery bags • Paper and cardboard • Fuel drums

21. Waste Reduction and Recovery Program Expansion • Based on the results of the consultation, ENR will be working towards a five year plan to add: • Milk containers • Electronic waste • Single use retail bags • Paper and cardboard • Our long term plans are to also work on: • Tires • Lead acid batteries • Fuel drums

22. Waste Reduction and Recovery Program Expansion • For the next five years, funding for some of these programs and initiatives can come out of the Environment Fund • Other programs such as e-waste may require government money to implement • Any program that we do implement will be designed in such a way that its operations will not require any on-going government funding – much like the BCP

23. Questions?