1

Quebec Experience in Disposal Levies

Recycling Council of Ontario & Ontario Ministry of the Environment

Waste Diversion Act (WDA) Consultation

Toronto, January 20th 2010

Directeur de l’analyse et des instruments économiques

André G. Bernier

2

The new policyThe new policy

Commitment to sustainable development 3 main challenges

Ending resource waste

Promoting the goals of the Climate Change Action Plan and the Québec Energy Strategy

Making all stakeholders involved responsible for residual materials management

3

GoalsGoals

Make end waste the only residual material sent for disposal in Québec

By 2015 : Reduce the quantity of residual materials sent for disposal to 700 kg per resident(In 2008: 810 kg/res.)

4

10 Interventions strategies10 Interventions strategies 3rd- Discourage and monitor disposal

Residual materials eliminated in Quebec, 1998-2008

5,7

7,1

6,7 6,7 6,8

6,4

5

5,5

6

6,5

7

7,5

1998 2000 2002 2004 2006 2008

Years

Qu

anti

ty (

mill

ion

to

ns)

5

Funding

Raise of the disposal levyCompensation for municipal services

provided to recover and reclaim residual materials: The compensation will pass from 50% to 100% of recognized costs

6

The levy storyThe levy story

2002-2003, first trial2004, project approval2005-2006 public consultation and

negotiation with municipal associations

June 23rd 2006 promulgation$10/ton 85 % of revenues to municipalities

7

Why a disposal levy?Why a disposal levy?

Some actions in the 1998-2008 policy were not reaching their goals

Lack of financing for “blue box” Almost nothing done for putrescible cost of disposal < cost of recycling Regional residual materials management

plan not adopted Landfill neighbours’ compensation

8

5 options5 options

1. Voluntary measures and individual initiatives

2. Extended producer responsibility to manage putrescible materials

3. Ban some materials

4. Pay-as-you-throw

5. Create a disposal levy a. to the government consolidated fund

b. to finance recycling and valorising activities

9

How do we fix the levy?How do we fix the levy?

2003: $8 per ton Gap between disposal fees and recycling

costs +$40 Average landfill disposal fee $41 $49 in New Brunswick and between $55

and $65 in Ontario Residual material management expenses:

Municipal ~ 400 M$ in 2000 Ministry’s ~10 M$

10

Goals for the levyGoals for the levy

We wanted to find a levy that would be:SimpleSignificantHaving an impact on the sectorHelping municipalities to implement

their regional plan

We did not want to upset the sector

11

How do we build the regulation?

Environment Quality Act, article 31, subparagraph e.1, commonly call “economic instrument article”

BNAAMain landfills and incineratorsPayment conditions like taxesRespect of small businesses

12

The redistribution program

85% of all revenues must be shared between admissible municipalities

To be admissible, a municipality must:

Pay disposal fees Have adopted a legal regional plan Report yearly

13

The redistribution program

The program accepts different municipal organizations

Subsidies will be gradually given according to the municipal performance with regards to reducing landfilling and incineratingDuring the first two years the subsidies were

shared on a per habitant basis

14

What do we do to obtain adhesion?

ConsultingAgreement with municipal

associationsCommitment to return 85% to

municipalities for regional plansGreen FundSome changes

15

How do we implement?

RegulationFirmly but with help

ProgramPartnershipConsensus on performance equationNo subsidy without a regional plan Withholding subsidies in case of problems

16

Results Results

Capacity to manage an important economic instrument

This kind of instrument can get good results. The financial incentive works

Since the beginning:Revenues: 213 M$Redistribution program: 182 M$ to 750

municipalities

17

ResultsResults

Graph: Quantity trend

1,00

1,25

1,50

1,75

2,00

Win

ter 2

007

Win

ter 2

008

Win

ter 2

009

Mill

ion

tons

Trend

18

The increase of the levy

Finance biomethanation and compost equipment

Finance the new policy

31% return to municipalities for residential residual material

19

LessonsLessons

Keep it simple

Admit your mistakes to be able to correct them

20

Thank you

21

More informationMore information

www.mddep.gouv.qc.ca/matieres/redevances/index.htm

www.mddep.gouv.qc.ca/matieres/pgmr/index_en.htm

redevances@mddep.gouv.qc.ca

Tél. : 418 521- 3929