Industry Stewardship in OntarioIndustry Stewardship in Ontario

Gordon Day for

Washington StateNovember 1, 2006

Today’s PresentationToday’s Presentation

• Regulatory framework in Ontario• Ontario Blue Box Program • Key Features• Results• Scan of other provinces

OntarioOntario

• 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

BackgroundBackground

Minister of theEnvironment

Minister of theEnvironment

Waste Diversion Ontario

Waste Diversion Ontario

StewardshipOntario

StewardshipOntario

Waste Diversion Act, 2002

Waste Diversion Act, 2002

MunicipalitiesStewards

Blue Box Program PlanBlue 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

More than Just the “Blue Box”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

Key FeaturesKey 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.cawww.stewardshipontario.ca

Effectiveness & Efficiency (E&E) Fund

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 $7.18 M

See “E&E Fund” section of See “E&E Fund” section of www.stewardshipontario.cawww.stewardshipontario.ca

Registrations & ReportsRegistrations & Reports

Year One/Two 2005Sept 2004

Company registrations 3,805 3,829

Registered as “obligated” stewards 1,793 1,787

Obligated stewards reported 1,475 1,345

Fees Identified from Stewards $63.2 M $62.6 M

1 as reported in Stewardship Annual Reports

Results to DateResults 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

Beverage Containers 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

see inset

LEGEND

Automotive

Batteries (ULABs)

Beverage Containers

Construction & Demolition

Dairy

HSW

Multi-Material

Pharmaceutical

Tires

Used Paint

Used Oil

WEEE

Extended Producer Responsibility - Legislation Across Canada -

white-washed symbols mean proposed legislation

full-colour symbols mean in-place or pending legislation

Other ProvincesOther 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

SummarySummary

• 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

Keeping Up To DateKeeping Up To Date

www.wdo.cawww.stewardshipontario.ca

www.csr.org

Gordon DayManager, Customer Services

647-777-3361gday@csr.org