2017 04 06 WMSAC Agenda - Region of · PDF fileUpdate on the Development of Peel's Plan to...

THE REGIONAL MUNICIPALITY OF PEEL

WASTE MANAGEMENT STRATEGIC ADVISORY COMMITTEE AGENDA WMSAC - 2/2017 DATE: Thursday, April 6, 2017 TIME: 1:00 PM – 3:00 PM LOCATION: Regional Council Chamber, 5th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario MEMBERS: F. Dale; A. Groves; J. Innis; J. Kovac; M. Mahoney; M. Palleschi; C.

Parrish; K. Ras; R. Starr Chaired by Councillor M. Palleschi or Vice-Chair Councillor J. Innis 1.

DECLARATIONS OF CONFLICT OF INTEREST

2.

APPROVAL OF AGENDA

3.

DELEGATIONS

4.

REPORTS

4.1.

Update on the Development of Peel's Plan to Achieve 75 Percent 3Rs Diversion (See also Communications Item 5.2)

Presentation by Norman Lee, Director, Waste Management 4.2.

Authority to Negotiate and Execute Agreements and Ancillary Documents to Participate In and Facilitate Funding of the Region of Peel Waste Diversion Programs

5.

COMMUNICATIONS

5.1.

Glenn Thibeault, Minister of Energy, Letter dated February 15, 2017, Responding to a Letter from Regional Chair Dale dated December 20, 2016, Regarding Large Renewable Procurement (LRP II) and Energy-from-Waste (EFW) Standard Offer Program (Resolution 2016-991) (Receipt recommended)

5.2.

Association of Municipalities of Ontario (AMO) Communications, Email dated March 3, 2017, Providing an Update on the Strategy for a Waste-Free Ontario: Building the Circular Economy Released by the Minister of the Environment and Climate Change on March 1, 2017 (Receipt recommended) (See also Reports Item 4.1)

WMSAC -2/2017 -2- Thursday, April 6, 2017 6.

IN CAMERA MATTERS

7.

OTHER BUSINESS

8.

NEXT MEETING Thursday, May 18, 2017, 11:00 a.m. – 1:00 p.m. Regional Administrative Headquarters Council Chamber, 5th Floor 10 Peel Centre Drive, Suite A Brampton, Ontario

9.

ADJOURNMENT

REPORT Meeting Date: 2017-04-06

Waste Management Strategic Advisory Committee

DATE: March 30, 2017

REPORT TITLE: UPDATE ON THE DEVELOPMENT OF PEEL'S PLAN TO ACHIEVE 75 PERCENT 3RS DIVERSION

FROM: Janette Smith, Commissioner of Public Works

RECOMMENDATION That the mandate, goals, targets, approach and recommended 3Rs programs and policies as described in the report of the Commissioner of Public Works titled, “Update on the Development of Peel’s Plan to Achieve 75 Percent 3Rs Diversion” be endorsed for public consultation; And further, that the public consultation proceed in the manner described in the subject report. REPORT HIGHLIGHTS

• In 2015, Regional Council adopted a 75 percent 3Rs diversion target and directed Waste Management Strategic Advisory Committee to develop a plan to meet this target.

• In 2016, Regional Council endorsed staff’s recommended approach to developing such a plan, which would include updating Peel’s Waste Management Strategy.

• When developing Peel’s Waste Management Strategy, staff must ensure that it aligns with the province’s regulatory framework – the Waste Free Ontario Act, the Strategy for a Waste-Free Ontario: Building the Circular Economy, Provincial Interests and Policy Statements.

• Staff has reviewed Peel’s existing Council – approved Mandate, Goals, Targets and Approach for waste management and is recommending changes to them where necessary to ensure they align with the province’s regulatory framework.

• Peel’s 2016 diversion rate is approximately 50 percent. The implementation of Council approved programs (anaerobic digestion and multi-residential report cards) is expected to increase Peel’s diversion rate by approximately 7 percent to 57 percent.

• The programs and policies recommended in this report could add up to an additional 9 percent diversion, bringing the total to 66 percent.

• To achieve 75 percent, an additional 9 percent will need to come from as yet unknown 3Rs initiatives or from mixed waste processing.

• Approximately half of Peel’s garbage (see pie charts on page 10) is material that could go in the blue box or green bin. Some of this material could be recovered with the implementation of new policies to encourage better participation in existing programs.

• An additional third of Peel’s garbage is material that could be recovered with new programs (e.g. mattresses, carpets, etc.).

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UPDATE ON THE DEVELOPMENT OF PEEL'S PLAN TO ACHIEVE 75 PERCENT 3RS DIVERSION

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• Research has been conducted on North American programs and policies and a list of recommended programs and policies is presented in this report for Committee and Council endorsement for public consultation.

• Research has also been conducted on mixed waste processing facilities including facility investigations, site visits and processing trials.

• Staff will continue investigating mixed waste processing to determine its role in achieving Peel’s 75 percent 3Rs target.

• Staff will begin public consultations on the recommended programs and policies pending Committee and Council endorsement.

• Public consultation will include public information centres, telephone surveys, online surveys and focus groups and will take place during the Spring and Summer of 2017.

• Staff will consider the feedback received from the public and incorporate it, as appropriate, into a final waste management strategy to be presented to Committee and Council in the Fall of 2017.

• Once the final Waste Management Strategy is approved by Council, staff will develop implementation plans for the approved programs and policies.

DISCUSSION 1. Report Format

The information in this report is organized into the following sections:

• Background – describes the decision making history of this initiative; • Context – describes the context in which Peel operates and the need to align Peel’s

Waste Management Strategy with the provincial framework and Peel’s strategic plan; • Mandate, Goals, Targets and Approach – describes how Peel’s current Council-

approved Mandate, Goals, Targets and Approach for waste management align with the provincial framework and recommends changes where necessary to improve the alignment;

• Current Diversion Rates, Additional Diversion from Approved Programs and Potential for Additional Diversion – describes Peel’s current diversion rates and the expected diversion impacts of approved programs and identifies materials in the garbage stream that are available for potential capture through new programs and policies;

• Detailed 3Rs Waste Program and Policy Research – summarizes the research completed on 3Rs programs and policies from other North American municipalities and identifies the 3Rs programs and policies that staff is recommending for public consultation;

• Public Consultation and Next Steps – describes the planned public consultation activities and timelines for finalizing Peel’s long term waste management strategy; and

• Mixed Waste Processing – describes the activities completed by staff to date with respect to mixed waste processing and its potential role in achieving Peel’s diversion target.

2. Background

At a special Regional Council meeting held on October 8, 2015, Regional Council adopted a 3Rs target of 75 percent by 2034 (Council Resolution 2015-741). Regional Council directed the Waste Management Strategic Advisory Committee (“Committee”) to develop a plan to

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achieve the target. Waste Management Strategic Advisory Committee directed staff to report back to the Committee with a recommended approach to develop the plan (Council Resolution 2015-781). At the November 19, 2015 Waste Management Strategic Advisory Committee meeting, the Director of Waste Management presented staff’s recommended approach to developing the plan to achieve the 75 percent 3Rs diversion target and to manage the remaining 25 percent of Peel’s waste (Council Resolution 2015-942). At the June 16, 2016 Waste Management Strategic Advisory Committee meeting, staff provided a report and the Director of Waste Management presented additional details on staff’s approach to developing the plan to achieve Peel’s target.

The development of the plan includes the following key steps: 1. Compilation of an inventory of potential new 3Rs programs and policies from North

American municipalities with high diversion targets and high diversion rates 2. Screening the inventory using key criteria to identify short list of potential 3Rs

programs and policies to be assessed in more detail 3. Detailed assessment of short list to develop a list of recommended 3Rs programs

and policies that could be adapted and implemented in Peel 4. Presentation of recommended 3Rs programs and policies to Waste Management

Strategic Advisory Committee and Regional Council for endorsement prior to public consultation (i.e. in this report)

5. Public consultation on recommended 3Rs programs and policies 6. Presentation of public feedback on recommended 3Rs programs and policies to

Waste Management Strategic Advisory Committee and Regional Council 7. Concurrent to 3Rs programs and policies review, a preliminary review of mixed

waste processing facilities (North American and European) to determine current state of mixed waste processing technology and the feasibility of utilizing it to supplement resource recovery in Peel Region

8. Presentation of Peel’s long term waste management strategy to Regional Council for approval, including contribution of 3Rs programs and policies and mixed waste processing to achieving Peel’s 75 percent 3Rs target by 2034

9. Development of implementation plans for approved 3Rs programs and policies At its July 7, 2016 meeting, Regional Council endorsed staff’s recommended approach to develop the plan along with the implementation of a year-long multi-residential organics program and a mixed waste processing trial (Council Resolution 2016-645). At its November 17, 2016 meeting, the Committee received a report entitled, “Update on the Development of Peel’s Plan to Achieve 75 Percent Diversion”. The report presented the Committee with an inventory of 83 3Rs programs and policies from North American municipalities meeting the criteria presented in the June 16, 2016 report. The inventory included programs to reduce waste generation (e.g. repair, reuse, food waste reduction, etc.), programs to collect new materials (e.g. textiles, mattresses, etc.) and policies to encourage participation in programs (e.g. school-related initiatives, pledges, challenges, levies, fines, user pay systems, etc.).

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The November 17, 2016 report also indicated that staff applied the following criteria to the 83 programs and policies, resulting in 39 programs and policies being selected for further research and analysis: • Collects material not currently included in any of Peel’s current programs • Is within Peel’s power to implement (e.g. pertains to residential waste, not

Institutional, Commercial and Industrial (IC&I) waste, does not require provincial or federal government to implement)

• Is well established (i.e. has at least three years of operational history and is currently in operation)

• Is aligned with the Waste Free Ontario Act and Strategy for a Waste Free Ontario: Building the Circular Economy

The report was received by Regional Council on December 8, 2016 (Council Resolution 2016-987). The result of the detailed analysis of the 39 programs and policies is described in section 6 of this report.

3. Context

It is important to recognize that Peel operates within the broader regulatory framework of the province. In general this includes the Municipal Act, the Regional Municipality of Peel Act and the Planning Act. When it comes to waste management, the provincial framework also includes the Environmental Assessment Act, the Environmental Protection Act and the recently enacted Waste Free Ontario Act, which includes the Resource Recovery and Circular Economy Act and the Waste Diversion Transition Act. The Resource Recovery and Circular Economy Act (“Act”) contains certain provisions that need to be considered in developing Peel’s waste management strategy. Two key provisions are the Provincial Interests set out in Section 2 and the Strategy required under Section 3. The Act sets out 17 Provincial Interests related to resource recovery and waste reduction. The Act indicates that certain persons and entities shall “have regard to” the Provincial Interests. Staff is of the opinion that Peel is captured by this provision and should therefore have regard to the Provincial Interests when developing its Waste Management Strategy. The entire list of Provincial Interests is included below but the bolded Provincial Interests are particularly relevant as Peel develops its Waste Management Strategy: a) Protect the natural environment and human health; b) Foster the continued growth and development of the circular economy; c) Minimize greenhouse gas emissions resulting from resource recovery

activities and waste reduction activities; d) Minimize the generation of waste, including waste from products and packaging; e) Increase the durability, reusability and recyclability of products and packaging; f) Hold persons who are most responsible for the design of products and

packaging responsible for the products and packaging at the end of life; g) Decrease hazardous and toxic substances in products and packaging; h) Minimize the need for waste disposal;

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i) Minimize the environmental impacts that result from resource recovery activities and waste reduction activities, including from waste disposal;

j) Provide efficient, effective, convenient and reliable services related to resource recovery and waste reduction, including waste management services;

k) Increase the reuse and recycling of waste across all sectors of the economy; l) Increase opportunities and markets for recovered resources; m) Promote public education and awareness with respect to resource recovery and

waste reduction; n) Promote cooperation and coordination among various persons and entities

involved in resource recovery activities and waste reduction activities; o) Promote competition in the provision of resource recovery services and waste

reduction services; p) Foster fairness for consumers; q) Do any other related thing that may be prescribed. The Act indicates that the province can issue Policy Statements for the purpose of furthering the Provincial Interests and further indicates that certain persons and entities shall ensure activities are done in a manner that is “consistent with” applicable Policy Statements. Staff is of the opinion that the initiatives included in Peel’s Waste Management Strategy are likely to be captured by this provision and therefore should “be consistent” with applicable Policy Statements, once developed. The Act also requires the Minister to develop a Strategy entitled, “Strategy for a Waste-Free Ontario: Building the Circular Economy”. The Act says the Strategy shall, among other things, set goals and summarize actions that may be taken under the Act. Waste Management Strategic Advisory Committee and Regional Council have been informed through separate updates that a draft of the Strategy was issued in 2015 and a final draft was issued in 2016. Peel has commented on each draft. The final Strategy was released on February 28, 2017 and is not materially different than the drafts. The Provincial Strategy provides clarity around the province’s direction with respect to waste reduction, resource recovery and the implementation of a circular economy in Ontario and is therefore instructive to Peel as the Region develops its Waste Management Strategy. The recommendations in this report are consistent with the Provincial Interests and support the goals and objectives of the Provincial Strategy. Peel’s Waste Management Strategy is also being developed within the context of Peel’s 2015-2035 Strategic Plan. The recommendations in this report are consistent with and support the goals and objectives of Peel’s 2015–2035 Strategic Plan. The recommendations in this report are also consistent with Council’s direction to achieve 75 percent 3Rs diversion by 2034.

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4. Mandate, Goals, Targets and Approach It is important to ensure all components of Peel’s Waste Management Strategy align with the provincial framework. This section reviews Peel’s current, Council approved Mandate, Goals, Targets and Approach for waste management to ensure alignment with the new provincial framework and, where appropriate, recommends changes. Mandate Peel’s current Council-approved Mandate for waste management “To provide reliable, cost-effective, customer-focused services that minimize waste generation and maximize resource recovery” is consistent with the Provincial Interest to enable efficient and effective recovery systems and the Provincial Interest to minimize waste generation and maximize waste recovery. What is missing from Peel’s current Mandate is any reference to a circular economy, which is a Provincial Interest and one of the main themes of the provincial Framework. Staff therefore recommends modifying Peel’s waste management Mandate to include a reference to a circular economy, so it reads as follows: • “To provide reliable, cost-effective, customer-focused services that minimize waste

generation, maximize resource recovery and foster growth of the circular economy.” Goals The Provincial Strategy states that the province’s aspirational goal for waste management is to achieve a zero waste Ontario.

Staff recommends adopting an aspirational goal for Peel as follows: • Zero waste from residential sources within the Region of Peel

The Provincial Strategy also includes an aspirational goal to achieve zero greenhouse gas emissions from the waste sector. Staff recognizes the need to reduce greenhouse gas emissions and fully supports the adoption of programs that reduce greenhouse gas emissions. Staff, however, recommends that any aspirational goals to reduce greenhouse gas emissions be included in Peel’s Climate Change Strategy.

Interim Targets The province, in its Provincial Strategy has listed its interim targets as:

• 30 percent diversion rate by 2020 • 50 percent diversion rate by 2030 • 80 percent diversion rate by 2050

The provincial targets are, of course, combined targets for Industrial, Comercial and Institutional (IC&I) and residential diversion. The province has not yet provided a

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breakdown of how it expects the IC&I and residential sectors to contribute to its interim targets, but we do know that current diversion in the province is as follows: • Residential – approximately 47 percent • IC&I – approximately 13 percent • Overall – approximately 24 percent

Staff’s expectation is that in the near term, residential diversion will need to be higher than the provincial target because IC&I diversion will continue to be lower. Over time, it is our expectation that IC&I diversion will catch up to residential diversion. Peel has recommended that the province focus early on improving IC&I diversion. Peel currently has 3Rs targets of 52 percent by 2019 and 75 percent by 2034. Staff recommends keeping these targets. Staff further recommends: • That once the province identifies the expected residential contribution to the

province’s interim targets, Peel set interim targets for 2020, 2030 and 2050 to supplement (or perhaps replace) the 2034 target.

• That separate targets be set for curbside and multi-residential customers. • That Term of Council targets be set at the beginning of each Term of Council to be

achieved by the end of each Term of Council. • That Peel’s targets be reviewed regularly to ensure they continue to align with the

province’s direction, Council priorities, current waste trends and technological capabilities.

While diversion will likely be used as a measure for years, it is not the best metric to measure success of municipal programs for the following reasons: • Diversion (as calculated in Ontario) does not measure waste reduction • Diversion (as calculated in Ontario) does not fully measure reuse • Diversion (as calculated in Ontario) does not account for the benefits of making

packages lighter (i.e. light weighting material) • With extended producer responsibility, the province will decide which materials get

diverted and what the diversion targets are for those materials and producers will decide how to divert them

• Diversion is not a direct measure of resources lost to disposal Staff is working with other stakeholders to examine metrics that better reflect waste reduction and resource recovery efforts, which may include the following: • Waste generated per household or per capita • Waste sent to disposal per household or per capita • Percentage of Peel’s residential waste stream for which there is a diversion program • Percentage of designated materials recovered through each of Peel’s diversion

programs • Cost per tonne of waste recovered / diverted

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Staff will also examine targets and metrics that measure carbon emissions, which may include the following: • Tonnes of carbon reduced per tonne of material recovered • Cost per tonne of carbon reduced Approach The province has adopted a circular economy approach. A circular economy approach maximizes value and utility of resources by supporting multiple cycles of use, refurbishing, re-purposing and recycling. Circular economy strategies encourage: • The design of long lasting, reusable and easily recyclable products • Decreasing the use of virgin (raw) materials and non-renewable resources and

increasing the use of renewable resources and recycled materials • Shifting from “waste management” to “resource recovery” where everything has a

value Staff recommends that Peel adopt a circular economy approach as shown in the diagram below because it is well aligned with the provincial framework and Peel’s Mandate and Goals.

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Within the circular economy model, staff recommends managing waste according to a 4Rs waste hierarchy – reduce, reuse, recycle and recover, as shown in the diagram to the right. Within the hierarchy, staff recommends that waste be managed in the manner that maximizes its value and utility. For example, recycling paper and composting paper are both within the “recycle” option but recycling paper to produce new paper represents a higher utility of the resource than producing compost from paper. Similarly, where material cannot be reused, recycled or composted, its energy should be recovered through an energy recovery process if possible. It is important that the programs and policies adopted by Peel be consistent with its Mandate and contribute to its goals and targets. One way to do that is to ask ourselves the following three questions when deciding whether or not to implement a program or adopt a policy: • Does the program or policy move us in the right direction? (Does it move us to

higher 3Rs diversion now? Does it advance waste management in a way that will allow higher 3Rs diversion in the future?)

• Does the program or policy allow us the flexibility to innovate? (Does it lock us

into a long term activity that prevents us from adopting some innovative 3Rs technology in the future?)

• Does the program or policy offer a good return on investment of time and

money? (Most waste management activities require an investment of time and money on the part of residents and businesses. Initiatives with too great an investment are more likely to fail. Those with a higher return on investment are more likely to succeed.)

5. Current Diversion Rates, Additional Diversion from Approved Program Changes and

Potential for Additional Diversion Current Diversion Rate Peel’s 2016 diversion rates are as follows: • 58 percent diversion for curbside customers • 16 percent diversion multi-residential residents customers (including Business

Improvement Areas) • 50 percent diversion overall

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Approved Program Changes The following activities have been approved by Council and are expected to further increase Peel’s overall diversion rate by approximately 7 percentage points to 57 percent: • Addition of diapers, sanitary products and pet waste in Peel’s Green Bin organics

program with the implementation of anaerobic digestion for organics processing • Implementation of multi-residential report cards and enhanced multi-residential

promotion and outreach activities

The following pilots have been approved by Council and are considered later in this report under new programs and policies: • Implementation of a year-long multi-residential organics pilot • Implementation of a textiles collection pilot • Implementation of a mixed waste processing pilot Potential for Additional Diversion The estimated composition of Peel’s curbside and multi-residential garbage is provided in the pie charts below (to be clear, this is the composition of what is in the black garbage bag only).

15% 5%

1%1%

11%

30%

37%

Estimated 2016 Garbage Composition

Blue Box Material Non-Blue Box Packaging

Waste Electrical and Electronic Equipment Household Hazardous Waste

Organics (Yard Waste/Tissues/Towelling) Food Waste

Other Waste

Curbside

These pie charts show there is an opportunity for additional diversion by:

• Introducing new policy approaches to improve recovery of materials in existing programs (15 to 22 percent of Peel’s garbage is material that could/should go in the Blue Box, and 30 to 36 percent of Peel’s garbage is material that could/should go in the Green Bin)

• Introducing new programs to recover material in the “other” category

22%

3%

1%

1%7%

36%

30%

Multi -Residential Multi -Residential

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The table below show materials in the “other” category that could potentially be recovered. The table shows total available for each material however it is important to understand that even the best programs will not capture 100 percent of it. Percentage of Other Waste Materials in Peel’s Curbside Garbage Curbside Mul ti -Residential Material that Could Potentially Be Captured when Anaerobic Digestion Processing Comes On-line

Diapers and Sanitary Products 12% 8% Pet Waste 10% 4%

Materials that Could Potentially be Captured in New Programs

Bulky Items (e.g. Furniture, etc.) 1% 2% Textiles 4% 5% Construction, Demolition and Renovation 2% 3% Ceramics 1% 1% Other Metal 1% 1% Durable Plastics 2% 2%

6. Detailed 3Rs Waste Program and Policy Research

Staff looked at North American municipalities with populations over 250,000 and reported diversion rates over 60 percent for new programs and policies to consider. That effort yielded a list of 83 programs and policies to consider. The 83 programs and policies were screened using criteria endorsed by Committee and Council and yielded a list of 39 programs and policies for more in depth investigation. A detailed assessment of the 39 programs and policies was completed by Peel’s consultant. The consultant considered the following factors (which were presented to the Committee on November 17, 2016) when assessing the feasibility of implementing the 39 programs and policies in Peel: • Effectiveness

o Impact on waste diversion o Impact on greenhouse gas reduction

• Efficiency

o Capital and operating costs o Cost per tonne diverted and cost per tonne of carbon dioxide reduced

• Transferability to Peel

o Size of municipality o Demographics o Regulatory framework o Climate

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• Risk o Operational history o Stability of end markets o Future trends or policy changes o Current programs in the Region of Peel that may support or conflict with a

potential 3Rs source separation program or initiative

• Ease o Ease of implementation o Ease of use for residents

The 39 programs and policies contained many similarities and were therefore grouped into seven potential initiatives, which are shown in the summary table below. Details of each of the seven groups can be found in Appendix I. Diversion and cost estimates in the table below are based on diversion rates and cost estimates provided by the municipalities in which the 39 initiatives take place, applied to Peel’s tonnages. These cost estimates should therefore be used only as a rough estimate of what the initiative might cost in Peel. More precise estimate will be developed as part of the implementation plan for any initiative approved by Council. SUMMARY OF RECOMMENDED PROGRAMS AND POLICIES FOR CONSULTATION

Estimated Additional Diversion Points (%)

Estimated Annual

Recovery (Tonnes)

Estimated Capital Cost

Estimated Annual Operating Cost ��

Estim ated Annual

Operating Cost per tonne

Textile Program 1.0% 5,000 tonnes

Equipment - $600,000

Promotion and Education - $100,000

$20/tonne

Mattresses, Furniture, Ceramic Toilets, Metal Items, Bulky Plastics and Wood Waste Programs

1.5% 7,500 tonnes

None Processing - $1,700,000 Staffing - $400,000 Space Rental, Equipment, and Utilities - $1,000,000 Promotion and Education - $100,000 Total = $3,200,000

$427/tonne

Multi-Residential Organics Program

1.5% 7,500 tonnes

Kitchen Catcher - $500,000 Front End Bins - $1,500,000 Carts – $100,000 Initial Promotion and Education - $400,000 Total = $2,500,000

Collections and Processing - $2,000,000 Promotion and Education - $400,000 Staffing - $100,000 Total = $2,500,000

$334/tonne

Policies to Support Reuse/Repair Programs

0.5% 2,500 tonnes

None Promotion and Education - $300,000

$120/tonne

Education, Outreach and Promotion Policies

0.5% 2,500 tonnes

None Promotion and Education - $200,000

$80/ tonne

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Estimated Additional Diversion Points (%)

Estimated Annual

Recovery (Tonnes)

Estimated Capital Cost

Estimated Annual Operating Cost ��

Estim ated Annual

Operating Cost per tonne

Bans, Fines and Enforcement Policies

4.0% 20,000 tonnes

Fleet and Equipment - $500,000

Staffing - $1,200,000 $60/ tonne

Development Standards

Minimal Minimal None Minimal Minimal

Total Proposed Programs and Policies

9.0% 45,000 tonnes

$3,600,000 $7,500,000 �

User Pay Systems – Variable System

To be determined with feasibility study

� The numbers above do not include the avoided cost of Transfer/Haulage/Disposal of garbage. Diverting 45,000 tonnes of material from disposal avoids approximately $3 Million in disposal costs.

Lessons Learned and High Level Conclusions Staff reviewed the consultant’s research, noted the recurring lessons learned and came to the following high level conclusions: • The greatest opportunity for increasing diversion is to increase participation and

capture in existing programs. In fact, to achieve 75 percent 3Rs diversion, Peel must significantly increase capture of Blue Box and Green Bin material.

• Education, promotion and outreach alone will not achieve the level of diversion desired by Peel. It will take a combination of education, promotion, outreach, convenience and enforcement.

• 3Rs programs and policies in large Ontario municipalities are second to none in North America. Aside from a few niche programs and a few examples of stricter enforcement, there is not a lot happening in North America that is not already happening in the Greater Toronto Area. And, when measured the way diversion is measured in Ontario, there are no examples of municipalities with materially higher diversion rates.

• Most of the materials identified for new programs have also been identified by the province for new Extended Producer Responsibility (EPR) programs. (Staff ensured that all the materials the province is considering for future EPR Programs were included in the analysis.)

Textile Program Based on the detailed research, a textile collection program may be feasible in Peel. Peel is planning to pilot a curbside textile program and a multi-residential textile program in partnership with non-profit organizations in 2017. Textiles have been identified by the province for a possible EPR program.

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Peel will consider the following implementation options for a Region-wide textile program: • Support Peel’s current reuse operators to accept all grades of textiles at Peel’s

Community Recycling Centres • Support not-for-profit agencies to implement community collection programs • Support provincial EPR programs (but wait for Producers to implement them) • Ban textiles from disposal (once recovery options are available) • Provide promotion, education and enforcement, as appropriate

Mattresses, Furniture, Ceramic Toilets, Metal Items, Bulky Plastics and Wood Waste Programs Based on the detailed research, programs to collect and recover mattresses, furniture, ceramic toilets, metal items, bulky plastics and wood waste may be feasible in Peel. Many of these materials have been identified by the province for possible EPR programs. Peel will consider the following implementation options for these collection and recovery programs: • Collection at curbside as a separate waste stream (i.e. bulky items) • Collection at Community Recycling Centres (by material types) • Support companies already providing this service (e.g. mattress retailers) • Support provincial EPR programs (but wait for Producers to implement them) • Ban Mattresses, Furniture, Ceramic Toilets, Metal Items, Bulky Plastics and Wood

Waste from disposal (once recovery options are available) • Provide promotion, education and enforcement, as appropriate

Staff is recommending that if these materials are considered for collection at Community Recycling Centres, that staff conduct a comprehensive review of current and proposed service offerings at Peel’s Community Recycling Centres to determine which materials should be collected at Community Recycling Centres.

Multi-Residential Organics Program Peel commenced a year-long multi-residential organics pilot in November 2016. If the results of the pilot show sufficient diversion, then Peel may want to implement a Region-wide multi-residential organics program. Any such program would need to reflect the intent of the province’s Organics Action Plan and the new provincial 3Rs Regulations (Regulations 102,103 and 104 under the Environmental Protection Act) since Multi-Residential buildings are captured under these regulations. Peel will consider the following implementation options for a Region-wide multi-residential organics program: • One time rollout of all Multi-residential properties, or • Phased rollout to Multi-residential properties

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Policies to Support Reuse/Repair Programs Based on the detailed research, policies to support reuse and repair programs may be feasible in Peel. Peel’s involvement would most likely be limited to promoting and otherwise supporting third party reuse and repair initiatives but could include collection of more reusable items at Peel’s Community Recycling Centres. Peel could also consider advocating for tax reductions or credits on repair activities. Peel will consider the following implementation options to support reuse and repair to its residents: • A webpage that posts notices of upcoming fix it clubs, swap meets, repair classes,

etc. and educates residents on the benefits of reuse and repair • Collection of more reusable items at Peel’s Community Recycling Centres Education, Outreach and Promotion Policies Based on the detailed research, increased or improved education, outreach and promotion of Peel’s waste programs to improve participation is feasible in Peel. Peel’s education, outreach and promotion efforts will need to be coordinated with efforts of Producers as mandated through provincial EPR programs. Staff recommends that Peel develop a comprehensive education, outreach and promotion strategy where tactics and approaches are based on research. Peel does not currently have the staff resources to develop such a strategy so staff and / or external resources will need to be brought on board. While the comprehensive education, outreach and promotion strategy is under development, Peel will continue to: • Deliver waste related education to school children with its community partners • Continue to promote existing 3Rs programs • Continue to work with property owners and property managers to improve the

effectiveness of communication in Multi-Residential buildings • Partner with Producers or other municipalities to deliver consistent messaging

province wide

Bans, Fines and Enforcement Policies Based on the detailed research, implementation of bans, increased use of fines and stricter enforcement to improve participation is feasible in Peel. Feedback from Producers and from our own processing operations suggests more needs to be done to increase capture rates and decrease contamination. Experience from high diversion jurisdictions show that three key components are needed for high diversion; education, convenience and enforcement. Staff therefore recommends that Peel develop a comprehensive enforcement strategy. Peel will consider more aggressive enforcement of existing waste management rules that require residents to participate in Peel’s blue box and green bin programs and that limit the

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level of contamination in Peel’s blue box and green bin. Peel will also consider the following implementation options with respect to bans, fines and enforcement policies: • Education on zero tolerance for contamination • Leaving contaminated carts and bins behind • Issuing fines for contamination • Requiring residents to use clear bags (if used in carts or if residents are on a bag-

based collection system) to allow for better curbside inspection Staff will also consider whether to combine the Enforcement Strategy with the Education, Outreach and Promotion Strategy. Development Standards Based on the detailed research, changes to current Multi-Residential development standards and how they are administered are feasible in Peel to increase participation in Peel’s diversion programs. Curbside development standards are also needed. Staff is recommending that Peel’s Development Standards be updated: • To ensure new curbside developments allow for the storage and movement of carts • To ensure recyclables and organics disposal in Multi-residential buildings are as

convenient as garbage disposal • To include a process to ensure development standards are communicated to

developers early in the planning process • To require a Letter of Credit from developers prior to construction, to be released

after it has been confirmed through inspections that development standards have been adhered to

• To include a process to validate that development standards have been met post construction

User Pay Systems – Variable Rate System Based on the detailed research, a user pay system based on cart size, timed to coincide with the beginning of the next collection contracts, is feasible for Curbside customers in Peel. Similarly a user pay system based on quantity of garbage generated is feasible for Multi-Residential customers in Peel. For Curbside and Multi-Residential customers, staff is recommending that staff undertake a detailed feasibility study of introducing a variable rate system and report back with recommendations. The variable rate system will need to consider the transition of the Blue Box program to producers, the introduction of new EPR programs by the province, the provinces Organics Action Plan and the updated 3Rs regulations, all of which are still in process. Staff will also consider the following options during the feasibility study of a User Pay Systems – Variable Rate System: • Increasing the cost of bag tags for excess garbage • Discontinuation of waste exemption periods

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• Setting limits for Multi-Residential garbage (similar to the 2-bag standard for curbside customers) and implementing fees for excess Multi-Residential garbage

7. Public Consultation and Next Steps

Subject to feedback from the Committee at its April 6, 2017 meeting, and subject to Council approval at its April 13, 2017 meeting, staff will conduct public consultation on the recommended programs and policies and also on the use of mixed waste processing during the Spring and Summer of 2017. This public consultation will include public information centres, telephone surveys, online surveys and focus groups. Key Questions that will be asked about the recommended programs and polices during the consultation include:

1. Do you support the recommended Programs and Policies? 2. What is your preferred ranking of the implementation approaches for new

programs (i.e. curbside, depot, third party not-for-profit or extended producer responsibility)?

3. Do you support Multi-residential source separated organics or mixed waste processing?

4. Do you still support these programs knowing it could mean increased taxes? 5. Should we proceed in line with the province or ahead of the province?

Key questions that will be asked about mixed waste processing will focus on a comparison of mixed waste processing to source separation. Staff will incorporate feedback from public consultation, as appropriate, and report to Committee and Regional Council with a recommended Waste Management Strategy for Peel. The recommended Waste Management Strategy will include the final mandate, goals, targets, approach, 3Rs programs and policies and the role of mixed waste processing. Once the strategy has been approved by Council, implementation plans for the approved programs and policies will be developed by staff and presented to Committee and Council for approval.

8. Mixed Waste Processing Previous reports on the development of a plan to achieve 75 percent 3Rs diversion have concluded that it is unlikely that the 75 percent target can be achieved through source separation alone and that employing a mixed waste processing approach to recover additional recyclable or organic materials from Peel’s garbage streams will likely be required. The results of the assessment of programs and policies described earlier in this report support that conclusion. The 75 percent 3Rs diversion workplan includes the investigation of mixed waste processing approaches and an assessment of the feasibility of mixed waste processing for Peel. The assessment of mixed waste processing is ongoing but this section of the report provides a status update on key tasks in the mixed waste processing investigation and preliminary findings.

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Peel’s approach to mixed waste processing is expected to be consistent with the province’s direction regarding organics diversion. Mixed Waste Processing Facility Investigations and Site Visits Staff completed a scan of mixed waste processing in North America and Europe to identify facilities with new or innovative approaches claiming to achieve high rates of 3Rs or total diversion. Of the identified facilities, staff selected those considered to be relevant for additional investigation and for site visits. In December 2016, staff conducted site visits at the following North American facilities:

• Edmonton Waste Management Centre in Edmonton, Alberta • Republic Services CVT Regional Materials Recycling Facility in Anaheim, California • Athens Services Sun Valley Materials Recovery Facility in Sun Valley, California • Newby Island Resource Recovery Park in San Jose, California • Zero Waste Energy Development Company (ZWEDC) Anaerobic Digestion Facility in

San Jose, California • Z-Best Composting Facility in Gilroy, California The last two facilities (ZWEDC and Z-BEST), although not mixed waste processing facilities, were visited because both process organics recovered from residential garbage. All of the facilities visited provided valuable updates of the state mixed waste processing technologies and processes as applied in North America. Each facility design is unique and reflects a specific set of business objectives and regulatory requirements. All mixed waste processing facilities visited appeared capable of recovering some marketable recyclables but only the Newby Island Resource Recovery Park in San Jose, California recovered an organics stream for processing by anaerobic digestion. None of the facilities produce a fuel product and all facilities send the remaining garbage to landfill, either for disposal or use as alternative daily cover material. Although none of the visited facilities were examples of the comprehensive mixed waste processing approach required to achieve Peel’s 75 percent 3Rs diversion, staff gained valuable insights which will inform subsequent investigations and future recommendations regarding the feasibility of mixed waste processing for Peel. Consultants investigated the most promising and relevant European mixed waste processing facilities as identified by staff. Site visits and working meetings are being planned for facilities in England, France and Spain and are tentatively scheduled for May 13 to 20, 2017.

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Waste Industry Engagement Staff will issue a Request for Expression of Interest in March inviting interested companies or organizations to provide information relevant to the mixed waste processing investigation such as current information on companies active in the market, on different mixed waste processing technologies and services, and on typical approaches for delivering mixed waste processing projects. Information provided by the Request for Expression of Interest responses will be used to inform the mixed waste processing feasibility study. Processing Trials During a test, which ran from April 18, 2016 to May 23, 2016, a total of 2,317 tonnes of Peel’s mixed waste (i.e. garbage) was processed by Canada Fibers Ltd. at its Dongara Facility. The results of the test showed that the existing Dongara facility: • Recovered and marketed 11 percent as metals and rigid plastics • Recovered 36 percent as fine material, which contained most of the organic material

from the feedstock, and which could be fed to an anaerobic digestion facility • Recovered 32 percent as mixed paper and film plastic, which could be potentially

converted to low carbon fuel or, with new separation technology, could perhaps someday be recycled

In June 2016, Regional Council authorized staff to negotiate and enter into an agreement with Canada Fibers Ltd. for a longer mixed processing trial at its Dongara Facility (Council Resolution 2016-641). Canada Fibers Ltd. has confirmed their ability to start the trial in early 2017. As of the date of this report, negotiations with Canada Fibers Ltd. are underway and, subject to negotiating terms satisfactory to the Region, the trial could commence in March and continue into the fall of 2017. Canada Fibers Ltd. has committed to staff that they will divert a minimum of 40 percent of the material they receive. Characterization of the Region’s Garbage Streams Characterization of the Region’s garbage streams was identified as a necessary component of the mixed waste processing investigation. Four seasonal characterization audits of residential garbage collected from residents receiving curbside collection and those residing in multi-unit dwellings were planned. Summer and fall audits were completed in 2016, and winter and spring audits are planned for February and April 2017 respectively. In conjunction with the seasonal characterization audits, a research team at the University of Waterloo is conducting laboratory analysis and other research on different components of the Region’s garbage streams, with a focus on assessing the likely quality of recyclable, organics and fuel or feedstock outputs from processing Peel’s garbage streams.

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The characterization audits indicate that, in total, the recyclable, organic and fuel materials potentially recoverable by mixed waste processing represent the majority of the weight of Peel’s garbage streams. Analysis of the organics and fuel materials are generally positive and have not identified any contamination problems that do not have a potential technological solution. The quality of recovered recyclables is also being researched however a more informative assessment will result from the mixed waste processing trial with Canada Fibers Ltd. previously described. This work is continuing and will be completed in time to inform the Fall 2017 report on the mixed waste processing feasibility study. Mixed Waste Processing Feasibility Study The expected level of resource recovery from mixed waste processing will be affected by any new 3Rs policies and programs, which will change composition of the residential garbage streams and reduce the amount of potentially recoverable resources in waste. This is especially true if a multi-residential organics collection program is implemented as it would significantly reduce the amount of organics in the residual waste. The mixed waste processing feasibility study will identify the likely range of resource recovery and cost to be expected from applying different mixed waste processing approaches to Peel’s residential garbage streams. For recyclable materials and organics, for which increased 3Rs diversion could be achieved through either source separation or mixed waste processing approaches, the outcomes of both approaches will need to be considered together in order to make the best recommendation for the Region.

FINANCIAL IMPLICATIONS The cost of the public consultation is included in the current approved budget. The cost of the Mixed Waste Processing Facility site visits is included in the approved budget for the Mixed Waste Processing facility. The financial implications of implementing the recommended programs will be identified in the implementation plans. CONCLUSION Research has been completed on municipal waste programs and policies in North America. Based on the experiences and lessons learned from these municipalities, staff have developed a list of programs and policies that Peel could implement to help achieve its 75 percent 3Rs diversion target. Subject to Waste Management Strategic Advisory Committee and Council endorsement, staff will commence public consultation on the recommended programs and policies to help Peel achieve its 75 percent 3Rs diversion target.

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Staff will incorporate feedback from public consultation, as appropriate, and report to Committee and Regional Council with a recommended Waste Management Strategy for Peel. The strategy will include the final recommended mandate, goals, targets, approach, 3Rs programs and policies and the role of mixed waste processing. Once the strategy has been approved by Council, implementation plans for the recommended programs and policies will be developed by staff and presented to Committee and Council for approval.

Janette Smith, Commissioner of Public Works Approved for Submission:

D. Szwarc, Chief Administrative Officer APPENDICES: Appendix I - Programs and Policies Recommended for Public Consultation For further information regarding this report, please contact Norman Lee, Director Waste Management, extension 4703, [email protected]. Reviewed in workflow by: Financial Support Unit

4.1-21

APPENDIX I UPDATE ON THE DEVELOPMENT OF PEEL’S PLAN TO ACHIEVE 75 PERCENT 3Rs DIVERSION

PROGRAMS AND POLICIES RECOMMENDED FOR PUBLIC CONSULTATION Programs The following is a list of programs or expansion of existing programs that will collect new materials from Peel’s waste streams. The consultant has estimated the potential diversion and costs associated with each new program or program expansion, and provided recommendations as to whether the program should be considered by Peel for implementation. 1. Textile Program Municipal programs researched:

Markham Textile Recovery

San Francisco Textile Recycling with Bulky Waste

New York City Re-Fashion NYC Program Key Lessons Learned

Collection systems must keep textiles clean and dry

Establish partners to minimize costs

Education is important for participation and to help residents understand the range of textiles that can be accepted

Convenience is important for participation

The province has indicated that textiles are being considered for future Extended Producer Responsibility (EPR) designation

Potential Diversion Impacts and Cost to Peel

1.0 percentage point increase in overall diversion rate

$20 per tonne Draft Recommendation for Consultation

That Peel continue with its plans to implement a curbside textile collection pilot and a multi-residential textile collection pilot in partnership with non-profit organizations.

That Peel implement or enable textile collection from residential sources within Peel.

That Peel consider the following implementation options: o Support Peel’s current reuse operators to accept all grades of textiles at Peel’s

Community Recycling Centres o Support not-for-profit agencies to implement community collection programs o Support provincial EPR programs (but wait for Producers to implement them) o Ban textiles from disposal (once recovery options are available) o Provide promotion, education and enforcement, as appropriate

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2. Mattresses, Furniture, Ceramic Toilets, Metal items, Bulky Plastics and Wood Waste Programs

Municipal programs researched:

Toronto Mattress Curbside Collection and Recycling

Toronto Ceramic Toilets Curbside Collection and Recycling

Simcoe County Bulky Waste Curbside Collection and Recycling

Prince Edward Island Large Metals Curbside Collection and Recycling

Sherbrooke Wood Waste Curbside Collection

Ottawa Valley Small Metal Curbside Blue Box Collection

San Jose Small Metal Curbside Recycling Cart Collection Key Lessons Learned

Many items in the bulky waste stream are potentially recyclable such as mattresses and ceramics.

Diversion of bulky items is expensive and service providers and markets are immature and unstable

Need to keep bulky items clean and dry by sorting and storing them in a covered area

Some Municipalities are beginning to charge for bulky items

Many small metal goods increasingly contain plastic, making them more difficult to recycle

Additional labour and resources would be required to sort and prepare bulky items for shipment to contractors or markets

The province has indicated that many of these materials are being considered for future EPR designation




That Peel implement or enable recovery programs for materials currently collected as garbage such mattresses, furniture, ceramics, bulky plastics and small metal items.

That Peel consider the following implementation options: o Collection at curbside as a separate waste stream (i.e. bulky items) o Collection at Community Recycling Centres (by material types) o Support companies already providing this service (e.g. mattress retailers) o Support provincial EPR programs (but wait for Producers to implement them) o Ban Mattresses, Furniture, Ceramic Toilets, Metal Items, Bulky Plastics and

Wood Waste from disposal (once recovery options are available) o Provide promotion, education and enforcement, as appropriate

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3. Multi-Residential Organics Program Municipal programs researched:

Toronto Multi-Residential Organics Collection

Peel pilot (in progress) Key Lessons Learned

Convenience and education remain key factors in any successful waste diversion program

Implementation of three-stream collection methods in the new multi-residential buildings has increased effective waste diversion system

Establishing a team dedicated to multi-residential waste diversion issues and enforcement is beneficial

Helps to have residents volunteer as “ambassadors” in each building as they can assist with the implementation and maintenance of the program

Consider a phased approach, starting with the buildings that have asked to have an organics program

The province has indicated that recovery of food and organic waste in high-rise and multi-residential dwellings will be considered in its Organic Action Plan

On the timeline presented in the Provincial Strategy, the province has indicated it could implement a potential food waste disposal ban in 2023

Capture of available organics ranges from 15 to 20 percent Potential Diversion Impacts and Cost to Peel



That Peel continue its multi-residential organics pilot

That if the results of the pilot show sufficient diversion, that Peel consider implementing a Region-wide Multi-Residential organics program and / or mixed waste processing

That Peel consider the following implementation options: o One time rollout of all Multi-residential properties, or o Phased rollout to Multi-residential properties

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4. Reuse/Repair Programs Municipal programs researched:

San Diego Reuse and Repair Network

Edmonton Reuse Fair Grants

Edmonton Reuse Centre

Toronto Lending Libraries

Santa Monica Posts Swap and Fix It Events

Sweden Tax Incentive to Repair

Peel Promotion of Local Repair Event Key Lessons Learned

It is very difficult to measure diversion associated with many reuse and repair initiatives

Reuse and repair initiatives provide a public service and demonstrate a community’s commitment to waste minimization

There is a segment of the population that embraces reuse and repair initiatives and encourages others to participate through their actions

Forming partnerships is an important key to success Potential Diversion Impacts and Cost to Peel



That Peel implement or enable activities to promote reuse and repair to its residents.

That Peel consider the following implementation options: o A webpage that posts notices of upcoming fix it clubs, swap meets, repair

classes, etc. and educates residents on the benefits of reuse and repair o Collection of more reusable items at Community Recycling Centres

Policies

The following is a list of policies intended to encourage or improve participation in Peel’s waste programs. The consultant has prepared the potential diversion and costs associated with each program, and provided recommendations as to whether the program should be considered by Peel for implementation. 5. Education, Outreach and Promotion Policies Municipal programs researched:

Almeda County Ready Set Recycle Campaign

Metro Vancouver K-12 School and Youth Leadership Program

Seattle Neighbourhood Waste Diversion Challenge

King County Waste Management Recycle Corps

King County More Compost Waste Less Campaign

City of Hamilton Customer Reward Program

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Key Lessons Learned

Engaging students in outreach activities has proven successful

Local neighbour outreach challenges are more successful than regional challenges

When reaching multi-cultural communities, it is critical to have staff who speak their language


0.5 percentage point increase in overall diversion


That Peel develop a comprehensive education and outreach strategy where tactics and approaches are based on research. Tactics could include: o Deliver waste related education to school children with its community partners o Continue to promote existing 3Rs programs o Continue to work with property owners and property managers to improve the

effectiveness of communication in Multi-Residential buildings o Partner with Producers or other municipalities to deliver consistent messaging

province wide 6. Bans, Fines and Enforcement Policies Municipal programs researched:

San Francisco Penalty for High Contamination Rates

Vancouver Enforcement and Fines for Contamination

Seattle Dedicated Waste Enforcement Staff

Seattle Ban of Recyclables and Organics in the Garbage Stream

Simcoe County Considers Not Collecting Garbage if Green Bin Not Set Out Key Lessons Learned

Some municipalities rely on garbage collection staff to monitor bins and leave garbage or report problems to inspection staff

People either fully participate in organics programs or they don’t participate at all

Residents may resist visual inspection of carts (privacy issues)

Strong enforcement measures are driven by bans at curb or disposal bans Potential Diversion Impacts and Cost to Peel

4.0 percentage point increase in overall diversion


That Peel implement a more aggressive enforcement of its existing by-law.

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That Peel consider the following implementation options: o Education on zero tolerance for contamination o Leaving contaminated carts and bins behind o Issuing fines for contamination o Requiring residents to use clear bags (if used in carts or if residents are on a

bag-based collection system) to allow for better curbside inspection Development Standards Municipal programs researched:

Toronto Multi-Residential Development Standards

Markham Letter of Credit for New Multi-Residential Buildings Key Lessons Learned

Convenience remains a key factor in any successful waste diversion program and multi-residential development standards should ensure participation in waste programs is convenient

Letters of credit and recycling system inspections help to ensure development standards are adhered to

Peel does not have a process to validate that development standards have been met post construction


Minimal diversion and cost impacts Draft Recommendation for Consultation

That Peel update its development standards: o To ensure new curbside developments allow for the storage and movement of

carts o To ensure recyclables and organics disposal in Multi-residential buildings are as

convenient as garbage disposal o To include a process to ensure development standards are communicated to

developers early in the planning process o To require a Letter of Credit from developers prior to construction, to be released

after it has been confirmed through inspections that development standards have been adhered to

o To include a process to validate that development standards have been met post construction

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7. User Pay Systems – Variable Rate System Municipal programs researched:

Toronto Variable Rate Cart Program

Vancouver Variable Rate Cart Program

San Francisco Variable Rate Cart Program

Seattle Variable Cart Rate Program Key Lessons Learned

Variable cart programs lead to higher contamination of recyclables

When charges are levied only on garbage carts, revenue decreases as diversion increases. Over time revenues fail to cover program costs

Communities set up as self-sustaining cost centres with no reliance of funding from property taxes

Charging separate fees for garbage, recycling and organics works if garbage remains the most expensive component

Switching to bi-weekly garbage collection, weekly organic collection and enforcement had a greater impact on diversion than the variable rate cart program


For Curbside and Multi-Residential customers, staff is recommending that staff undertake a detailed feasibility study of introducing a variable rate system and report back with recommendations.

Draft Recommendation for Consultation

That staff undertake a detailed feasibility study of introducing a variable rate cart system

That staff report back with recommendations regarding a variable rate cart system in the future (timed to coincide with the beginning of the next collection contracts)

Peel introduce a variable rate system for its multi-residential households and Institutional, Commercial and Industrial (IC&I) customers in 2018, after the evaluation of the multi-residential organics pilot

That Peel consider the following implementation options during the feasibility study of a User Pay Systems – Variable Rate System: o Increasing the cost of bag tags for excess garbage o Discontinuation of waste exemption periods o Setting limits for Multi-Residential garbage (similar to the 2-bag standard for

curbside customers) and implementing fees for excess Multi-Residential garbage

4.1-28

Update on the Development of Peel’s

Plan to Achieve 75% 3Rs Diversion

Norman Lee

Director, Waste Management

Region of Peel

1 1 1


April 6, 2017

4.1-29

Todays Presentation

Background

Provincial Framework

Mandate, Goals, Targets and Approach for Waste Management in Peel

Current Diversion Rate and Potential Additional Diversion

Recommended Programs and Policies

Public Consultation and next Steps

Mixed Waste Processing

2

4.1-30

Background

October 8, 2015 RC Meeting Regional Council adopted a 3Rs target of 75 percent by 2034 (Council Resolution 2015-741).

October 22, 2015 RC Meeting Regional Council directed staff to report back to Waste Management Strategic Advisory

Committee (WMSAC) with an approach to develop the plan to achieve the 75 percent target

(Council Resolution 2015-781).

November 19, 2015 WMSAC Meeting WMSAC and Regional Council endorsed staff’s recommended approach to developing the

plan to achieve the 75 percent target and to manage the remaining 25 percent of Peel’s waste

(Council Resolution 2015-942).

June 16, 2016 WMSAC Meeting Staff provided additional details on the development of the plan to achieve Peel’s 3Rs target,

including criteria to be used to screen potential programs and policies .

3

4.1-31

Process to Develop the Plan

The Council – endorsed process to develop the plan includes the following key

steps:

1. Compilation of a long list of potential new 3Rs programs and policies

2. Screening the long list using key criteria to identify a short list of potential 3Rs

programs and policies

3. Detailed assessment of short list to develop recommended 3Rs programs and

policies

4. Concurrent with the review of potential 3Rs programs and policies conduct a

preliminary review of mixed waste processing facilities

5. Presentation of recommended 3Rs programs and policies to Waste

Management Strategic Advisory Committee and Regional Council for

endorsement prior to public consultation (today)

4

4.1-32

Process to Develop the Plan (continued)

6. Public consultation on recommended 3Rs programs and policies

7. Incorporate public feedback, as appropriate, into a final Waste Management

Strategy to be presented to Waste Management Strategic Advisory

Committee and Regional Council in Fall 2017 for Approval

8. Development of implementation plans for approved 3Rs programs and

policies and, if approved, mixed waste processing

5

4.1-33

Provincial Framework

Peel operates within the province’s regulatory framework:

The Municipal Act

The Regional Municipality of Peel Act

The Planning Act

With respect to waste management, the provincial framework also includes:

The Environmental Assessment Act

The Environmental Protection Act

The Waste Free Ontario Act

Resource Recovery and Circular Economy Act

Waste Diversion Transition Act

Strategy for a Waste Free Ontario: Building a Circular Economy

Organics Action Plan

6

4.1-34

Provincial Framework (continued)

Peel should consider the following key provisions when developing

its waste management plan:

The Provincial Interests

The Strategy for A Waste-Free Ontario: Building the Circular

Economy

Organics Action Plan

7

4.1-35


Provincial Interests and Policy Statements

The Resource Recovery and Circular Economy Act sets out 17 Provincial Interests

related to resource recovery and waste reduction and allows for the development of

policy statements are particularly relevant Provincial Interests include:

Foster the continued growth and development of the circular economy

Minimize greenhouse gas emissions resulting from resource recovery activities

Hold persons who are most responsible for the design of products and packaging

responsible for the products and packaging at the end of life

Provide efficient, effective, convenient and reliable services related to resource

recovery and waste reduction, including waste management services

Increase the reuse and recycling of waste across all sectors of the economy

Promote cooperation and coordination among various persons and entities

involved in resource recovery activities and waste reduction activities

8

4.1-36


Strategy for A Waste-Free Ontario:

Building the Circular Economy

The Final Strategy for A Waste-

Free Ontario: Building the Circular

Economy was approved in February

2017

The Strategy clarifies the province’s

direction with respect to waste

reduction, resource recovery and

implementing a circular economy in

Ontario

The Strategy includes development

of an Organics Action Plan

9

4.1-37


The programs and policies recommended in today’s report are

consistent with the province’s regulatory framework

The recommended programs and policies are also consistent with

and support Peel’s Strategic Plan and Council’s direction to achieve

75 percent 3Rs diversion by 2034

10

4.1-38

Mandate, Goals, Targets and Approach

for Waste Management in Peel

Before jumping into recommended programs and policies, and given

the recent changes to Provincial Framework, it is important to

update the Mandate, Goals, Targets and Approach for waste

management in Peel

11

4.1-39

Mandate

Peel’s current Council – approved Mandate for waste management:

To provide reliable, cost-effective, customer focused services that

minimize waste generation and maximize resource recovery

Recommended Mandate for waste management:

To provide reliable, cost-effective, customer-focused services that

minimize waste generation, maximize resource recovery and

foster growth of the circular economy.

12

4.1-40

Goals

The provincial Strategy includes an aspirational goal for the province:

To achieve a zero waste Ontario

Staff recommends adopting the following aspirational goal for waste

management in Peel:

Zero waste from residential sources within the Region of Peel

13

4.1-41

Targets

The province’s interim diversion targets are:

30 percent by 2020

50 percent by 2030

80 percent by 2050

Province’s current diversion rate is 24 percent

Residential is 47 percent

IC&I is 13 percent

Peel’s residential diversion rate is currently 50 percent

Curbside is 58 percent

Multi-residential is 16 percent

14

4.1-42

Targets (continued)

Staff recommends

Keeping Peel’s current 3Rs target of 75 percent by 2034

Staff further recommends:

That once the province identifies the expected residential contribution to

the province’s interim targets, Peel set interim targets for 2020, 2030 and

2050 to supplement (or perhaps replace) the 2034 target

That separate targets be set for curbside and multi-residential customers

That Term of Council targets be set at the beginning of each Term of

Council to be achieved by the end of each Term of Council

That Peel’s targets be reviewed regularly to ensure they continue to

align with the province’s direction, Council priorities, current waste trends

and technological capabilities

15

4.1-43

Targets (continued)

Staff is working with other stakeholders to examine metrics that

better reflect waste reduction and resource recovery efforts and that

better reflect municipalities future role in resource recovery

Staff will also examine targets and metrics that measure carbon

emissions from waste management activities

16

4.1-44

Approach – Circular Economy

The province has adopted a

circular economy approach

Staff recommends that Peel

adopt a circular economy

approach

Circular economy approach

maximizes value and utility of

resources by supporting

multiple cycles of use,

refurbishing, re-purposing and

recycling

17 Image from Circular Economy Innovation Lab

4.1-45

Approach – Maximizing Utility within

Circular Economy

Within the circular economy,

staff recommends that waste

be managed in the manner

that maximizes its value and

utility

To do this, staff recommends

managing waste according to

a 4Rs waste hierarchy

18

4.1-46

Approach – Key Questions

Does the program or policy move us in the right direction?

Does it move us to higher 3Rs diversion now? Does it advance waste

management in a way that will allow higher 3Rs diversion in the future?

Does the program or policy allow us the flexibility to innovate?

Does it lock us into a long term activity that prevents us from adopting

some innovative 3Rs technology in the future?

Does the program or policy offer a good return on investment of time

and money?

Most waste management activities require an investment of time and

money on the part of residents and businesses. Initiatives with too great

an investment are more likely to fail. Those with a higher return on

investment are more likely to succeed.

19

4.1-47

Current and Approved Diversion Programs

Peel’s 2016 diversion rate is 50 percent :

58 percent for curbside customers

16 percent for multi-residential customers (including Business

Improvement Areas)

50 percent overall

The following Council approved activities are expected to increase

Peel’s diversion rate by 7 percentage points to 57 percent:

Addition of diapers, sanitary products and pet waste in Peel’s

Green Bin organics program with the implementation of

anaerobic digestion for organics processing

Implementation of multi-residential report cards and enhanced

multi-residential promotion and outreach activities

20

4.1-48

Potential for Additional Diversion

21

4.1-49

Program and Policy Assessment

Staff looked at North American municipalities

Populations greater than 250,000

Reported diversion rates over 60 percent

Resulted in a long list of 83 programs and policies to consider

This list was screened using criteria endorsed by Committee and Council

and yielded a short list of 39 programs and policies for more in depth

investigation using the following screening criteria:

Collects material not currently collected by Peel

Is within Peel’s power to implement

Is well established

Is aligned with the Waste Free Ontario Act and Strategy

22

4.1-50

Program and Policy Assessment (continued)

A detailed assessment of the 39 programs and policies was

completed by Peel’s consultant

The consultant considered the following factors in the assessment:

Effectiveness

Efficiency

Transferability to Peel

Risk

Ease of Implementation

23

4.1-51

Potential New Programs and Policies

0

10

20

30

40

50

60

70

80

90

100

Peel's 3Rs Target

Possible New Programs and Policies = 9%

Textile Program = 1%

Mattresses, Furniture, Ceramic Toilets, Metal,

Bulky Plastics and Wood Program= 1.5%

Multi-Residential Organics Program= 1.5%

Reuse / Repair Program = 0.5%

Education, Outreach & Promotion Policies = 0.5%

Bans, Fines & Enforcement = 4%

Revised Development Standards = 0%

Yet Unknown Initiatives = 9%

Excludes Mixed Waste Processing

24 2016

Current AD Facility New Programs

& Policies

Yet unknown

initiatives

4.1-52

Lessons Learned and High Level Conclusions

The greatest single opportunity for increasing diversion is to

increase participation and capture in existing programs

A combination of education, convenience and enforcement is

needed to achieve the level of diversion desired by Peel

Most of the materials identified for new programs have also been

identified by the province for new Extended Producer Responsibility

programs

3Rs programs and policies in large Ontario municipalities are

second to none in North America. There are no examples of

municipalities with materially higher diversion rates when measured

the same way

25

4.1-53

Textile Program

Peel is planning to pilot curbside and multi-residential textile programs in

partnership with non-profit organizations in 2017

Textiles have been identified by the province for a possible EPR program

Peel will consider the following implementation options:

Support Peel’s current reuse operators at Peel’s CRCs

Support not-for-profit agencies to implement community collection

Support provincial EPR programs

Provide promotion, education and enforcement

26

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Mattresses, Furniture, Ceramic Toilets, Metal

Items, Bulky Plastics and Wood Waste Programs

Many of these materials have been identified by the province for possible EPR programs


Collection at curbside as a separate waste stream (i.e. bulky items)

Collection at Community Recycling Centres

Support companies already providing this service (e.g. mattress retailers)

Support provincial EPR programs

Provide promotion, education and enforcement, as appropriate

Staff recommends that if new materials are considered for collection at Peel’s CRCs,

staff conduct a comprehensive review of current and proposed service offerings at CRCs

to determine which materials should be collected at the CRCs

27

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Multi-Residential Organics Program

Peel commenced a year-long multi-residential organics pilot in

November 2016

If the results of the pilot show sufficient diversion, Peel may want to

implement a Region-wide multi-residential organics program

Any such program would need to reflect the intent of the province’s

Organics Action Plan and the new provincial 3Rs Regulations


One time rollout of all Multi-residential properties, or

Phased rollout to Multi-residential properties

28

4.1-56

Policies to Support Reuse/Repair Programs

Peel’s role will likely be limited to promoting and supporting third party reuse

and repair initiatives but could include collection of more reusable items at

Peel’s CRCs.

Peel could also consider advocating for tax reductions or credits on repair

activities.


A webpage that posts notices of upcoming fix it clubs, swap meets, repair

classes, etc.

Collection of more reusable items at Peel’s CRCs

29

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Education, Outreach and Promotion Policies

Staff recommends that Peel develop a comprehensive education, outreach and

promotion strategy where tactics and approaches are based on research

Peel does not currently have the staff expertise to develop such a strategy so

staff and / or consultants will need to be brought on board

While the comprehensive education, outreach and promotion strategy is under

development, Peel will continue to:

Deliver waste related education to school children with its community

partners

Continue to promote existing 3Rs programs

Partner with Producers or other municipalities to deliver consistent

messaging province wide

30

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Bans, Fines and Enforcement Policies

Three key components are needed for high diversion;

Education

Convenience

Enforcement

Staff recommends that Peel develop a comprehensive enforcement strategy

Peel will also consider the following interim options:

Education on zero tolerance for contamination

Leaving contaminated carts and bins behind

Issuing fines for contamination

31

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Development Standards

Staff is recommending that Peel’s Development Standards be updated:

To ensure new curbside developments allow for the storage and movement

of carts

To ensure recyclables and organics disposal in Multi-residential buildings is

as convenient as garbage disposal

To include a process to ensure development standards are communicated

to developers early in the planning process

To include a process to validate that development standards have been met

post construction

To require a Letter of Credit from developers, to be released after it has

been confirmed that development standards have been adhered to

32

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User Pay Systems – Variable Rate System

A user pay system based on cart size, timed to coincide with the

beginning of the next collection contracts, is feasible for Curbside

customers in Peel

A user pay system based on volume of garbage generated is also

feasible for Multi-Residential customers in Peel

Staff is recommending that staff undertake a detailed feasibility

study of introducing a variable rate system and report back with

recommendations

33

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User Pay Systems – Variable Rate System

Staff will also consider the following options during the feasibility

study of a User Pay Systems – Variable Rate System:

Increasing the cost of bag tags for excess garbage

Discontinuation of waste exemption periods

Setting garbage limits and fees for excess garbage for Multi-

Residential garbage (similar to the 2-bag standard for curbside

customers)

34

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Public Consultation and Next Steps

Subject to feedback from WMSAC at this meeting and subject to Council

approval, staff will conduct public consultation on the recommended

programs and policies (and mixed waste processing)

Feedback from the public consultation will be incorporated, as appropriate,

into a recommended waste management strategy for Peel and reported

back to Committee and Regional Council in Fall 2017

Once the Waste Management strategy has been approved by Council,

implementation plans will be developed for the approved programs and

policies

35

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Mixed Waste Processing

It is likely that in addition to source separation, a mixed waste

processing approach to recover additional recyclable or organic

materials from Peel’s garbage stream will be needed to achieve

Peel’s 3Rs diversion target

Utilization of mixed waste processing is expected to be consistent

with the province’s direction regarding organics diversion

Utilization of mixed waste processing is expected to take us closer

to our goal while allowing flexibility to innovate

36

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Mixed Waste Processing (continued)

Waste characterization

Environmental scan and facility visits

Processing trials

Request for expression of interest

37

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Waste Characterization

Recyclable, organic and fuel materials potentially recoverable by mixed waste

processing represent the majority of Peel’s garbage

Characterization of the Region’s garbage is being conducted in conjunction

with the University of Waterloo

Analysis of the recyclables, organics and fuel materials are generally positive

A more informative assessment will result from the mixed waste processing

trial with Canada Fibers Ltd.

38

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Environmental Scan and Facility Visits

Staff completed a scan of mixed waste processing in North America

and Europe to identify facilities with new or innovative approaches

claiming to achieve high rates of 3Rs or total diversion

Of the identified facilities, staff selected those considered to be

relevant for additional investigation and in December 2016 visited

sites in Edmonton and California

Site visits are being planned for facilities in England, France and

Spain and are tentatively scheduled for May 13 to 20, 2017

39

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Processing Trials

Between April and May 2016, 2,317 tonnes of Peel’s mixed waste (i.e.

garbage) was processed by Canada Fibres Ltd. at its Dongara Facility

Recovered and marketed 11 percent as metals and rigid plastics

Separated 36 percent as organics, which could potentially be fed into an

anaerobic digestion facility

Separated 32 percent as mixed paper and film plastic which could

potentially be converted to low carbon fuel or someday be recycled (with

new separation technology)

In June 2016, Regional Council authorized staff to negotiate and enter into a

longer mixed waste processing trial with CFL

Trial commenced in March and will continue into the fall 2017

CFL has committed to divert a minimum of 40 percent of the material they

receive

40

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Request for Expression of Interest

A Request for Expression of Interest will be issued in March inviting

interested companies or organizations to provide information on:

Mixed waste processing technologies and services

Approaches for delivering mixed waste processing projects

41

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42

Questions

42 42 www.peelregion.ca/waste/

4.1-70

http://www.peelregion.ca/waste/

REPORT Meeting Date: 2017-04-06


DATE: March 22, 2017

REPORT TITLE: AUTHORITY TO NEGOTIATE AND EXECUTE AGREEMENTS AND

ANCILLARY DOCUMENTS TO PARTICIPATE IN AND FACILITATE FUNDING OF THE REGION OF PEEL WASTE DIVERSION PROGRAMS

FROM: Janette Smith, Commissioner of Public Works

RECOMMENDATION That the Director of Waste Management be authorized to negotiate and execute all agreements and ancillary documents necessary to participate in and facilitate the funding, up to the limit of the approved budget, of the Region of Peel waste diversion programs, based on terms and conditions satisfactory to the Director of Waste Management and the Regional Solicitor. REPORT HIGHLIGHTS

At the Waste Management Subcommittee meeting on May 21, 2009, staff presented a summary of the four provincial Extended Producer Responsibility (EPR) programs for which Peel receives partial funding from designated Industry Funding Organizations under the, now repealed, provincial Waste Diversion Act, 2002:

o Blue Box Program o Municipal Hazardous and Special Waste Program o Waste Electrical and Electronic Equipment Program o Used Tire Program

On November 30, 2016, the Waste Free Ontario Act, 2016 was proclaimed by the Province which repealed the Waste Diversion Act, 2002 and enacted the Resource Recovery and Circular Economy Act, 2016 and the Waste Diversion Transition Act, 2016. The four existing EPR programs established under the Waste Diversion Act, 2002 are currently being continued under the Waste Diversion Transition Act, 2016 until they are transitioned to full producer responsibility.

The Province has indicated that it intends to transition the four existing EPR programs to full producer responsibility within the next five years.

With the anticipated transition of existing EPR programs to full producer responsibility some of the Industry Funding Organizations have started to introduce additional requirements in the funding mechanism.

It is anticipated that new agreements and ancillary documents may be required to be executed in the interim until complete transition to full producer control is finalized.

During the transition process, Peel will continue to participate in the four existing EPR programs subject to the completion of successful negotiations with Industry Funding Organizations and service providers.

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AUTHORITY TO NEGOTIATE AND EXECUTE AGREEMENTS TO FACILITATE THE FUNDING OF WASTE DIVERSION PROGRAMS

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DISCUSSION 1. Background

The Region of Peel has been an active proponent and advocate of Extended Producer Responsibility (EPR) programs as a policy tool to increase the recyclability of products and packaging and to correct the fiscal imbalance borne by the property tax base for the end-of-life management of the products and packaging. In 2015, the Provincial government introduced Bill 151, the Waste Free Ontario Act which proposed to repeal the Waste Diversion Act, 2002 and enact the Resource Recovery and Circular Economy Act, 2016 and the Waste Diversion Transition Act, 2016 to replace it. Along with the proposed legislation, the Province also introduced its draft Strategy for a Waste-Free Ontario: Building a Circular Economy (“Strategy”), which explains and illustrates how the new legislation may be applied. On November 30, 2016, the Waste Free Ontario Act, 2016, which enacted the Resource Recovery and Circular Economy Act, 2016 and the Waste Diversion Transition Act, 2016, was proclaimed by the Province. On December 16, 2016, the final draft of the Strategy was issued for comment. The EPR programs established under the Waste Diversion Act, 2002 are currently being continued under the Waste Diversion Transition Act, 2016. The Resource Recovery and Circular Economy Act, 2016 allows the Province to develop regulations to transition the existing EPR programs to full producer responsibility. The proposed timelines to transition existing EPR programs to full producer responsibility is within the next five years. With the anticipated transition of existing EPR programs some Industry Funding Organizations have started to implement increased requirements in the funding mechanism.

2. Existing Extended Producer Responsibility (EPR) Programs

With financing from Industry Funding Organizations, the Region of Peel will continue to participate in the following EPR programs that were continued under the Waste Diversion Transition Act, 2016 Blue Box Program – Stewardship Ontario provides partial funding of the Region of

Peel’s Blue Box Program. The Blue Box Program is expected to transition to full producer responsibility in five years. The Region of Peel and other municipalities have been encouraging the Ministry of the Environment and Climate Change to transition the Blue Box Program sooner so that municipalities can reallocate resources to meet other provincial waste requirements.

Municipal Hazardous and Special Waste (MHSW) Program – Material collected

under this program is divided into Phase 1, 2 and 3 product categories. Two Industry Funding Organizations, Stewardship Ontario and Product Care Association, fund a portion of Phase 1 products. Phase 2 and 3 products are funded entirely by the property tax base. The MHSW Program is expected to shift to full producer responsibility within three years. The Region of Peel is currently engaged in negotiations with the Industry Funding Organizations to determine the appropriate

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compensation for the Region’s MHSW Program. Other municipalities are in similar negotiations.

Waste Electrical and Electronic Equipment Program - Ontario Electronic

Stewardship (OES) provides funding to cover the cost of collecting, packaging, hauling and processing designated and acceptable electrical and electronic products. OES has developed a Processor Incentive Program which allows the Region to enter into agreements directly with approved processors to supply them with, and receive payments for, electrical and electronic equipment collected by Peel. By doing this, Peel does not need to execute an agreement directly with the OES but Peel must abide by the Generator Standards issued by OES.

In July 2016, the Region of Peel was notified by OES of a new Generator Standard. As part of the new Generator Standard, the Region must register with OES through a signed declaration and be assigned an OES Generator ID number. Failure to submit a signed declaration by December 31, 2016 would have resulted in the Region of Peel forfeiting funding for collected electrical and electronic equipment. On December 22, 2016, the Director of Waste Management signed the declaration as a routine document as a one-time interim measure to ensure continuation of funding from the OES.

Used Tire Program – Ontario Tire Stewardship (OTS) is the Industry Funding

Organization for the Used Tires Program. The Region of Peel participates in the Used Tires Program as a registered collector and hauler. In mid-2016, OTS suspended payments to municipalities on the premise that personal information needed to be collected from residents that are dropping off tires. Municipalities have jointly informed OTS that privacy law prevents the collection of personal information from residents. Municipal and waste industry associations continue to engage with OTS to discuss the collection payments that are being withheld from a number of municipalities, including Peel. OTS continues to review municipal concerns regarding the ability to provide this information, and whether alternative validation methods may be appropriate. Based on this review, OTS is assessing the reasonableness of releasing withheld funding, and modifying the supporting documentation requirements for municipal collectors. Staff is presently engaged in collaborative work with Association of Municipalities of Ontario, Ontario Waste Management Association, Municipal Waste Association, Regional Public Works Commissioners of Ontario and the City of Toronto to resolve the issue. It is anticipated that new agreements and ancillary documents will need to be executed with OTS as part of the resolution process.

3. Transition to Full Producer Responsibility under the Waste-Free Ontario Act

At the January 19, 2017 Waste Management Strategic Advisory Committee meeting, the Director of Waste Management provided an update on the provincial strategy made under additional item 5.2 Update Regarding the Province of Ontario’s Strategy for a Waste-Free Ontario.

4.2-3


- 4 -

One of the objectives and actions identified in provincial strategy is to transition the existing waste diversion programs smoothly to full producer responsibility without disruption of service. The Blue Box Program, Municipal Hazardous and Special Waste Program, Waste Electrical and Electronic Equipment Program and Used Tire Program will transition to full producer control which means:

Producers will be responsible for 100 per cent of the cost of the waste diversion programs;

Producers will determine how to design and operate the programs to meet the province’s targets; and

Peel could be a service provider for collection and/or processing, subject to negotiations with Producers.

The proposed timelines identified in the provincial strategy to transition existing waste diversion programs to 100 per cent producer responsibility is within the next three to five years depending on the program.

4. Next Steps

As described in section 2 of this report, with the anticipated transition of existing EPR programs to full producer control, Industry Funding Organizations have started to implement increased requirements in the funding mechanism. It is anticipated that new agreements and ancillary documents may need to be executed in the interim until complete transition to full producer control is finalized. During the transition process, staff will continue to administer the funding mechanisms of the four existing EPR programs subject to the completion of successful negotiations with Industry Funding Organizations and service providers.

FINANCIAL IMPLICATIONS The 2017 Waste Management operating budget includes financial payments to Peel for the four waste diversion programs under current product stewardship programs.

Blue Box Program - $12 Million

Municipal Hazardous and Special Waste Program - $1 Million

Waste Electrical and Electronic Equipment Program - $240,000 Used Tire Program - $20,000 The above amounts will change over the next five years as the programs transition to full producer responsibility.

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- 5 -

RECOMMENDATION

To ensure that the Region of Peel retains the necessary flexibility to participate in and secure financial payments for waste diversion programs, staff recommends that authority be granted to the Director of Waste Management to negotiate and execute all necessary agreements aimed at such purposes.

Janette Smith, Commissioner of Public Works Approved for Submission:

D. Szwarc, Chief Administrative Officer

For further information regarding this report, please contact Norman Lee, Director of Waste Management, extension 4703, [email protected]. Reviewed in workflow by: Financial Support Unit Legal Services

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Ministry of Energy Ministere de l'Enerqie

Office of the Minister Bureau du ministre

4" Floor, Hearst Block900 Bay StreetToronto ON M7A 2E1Tel.. 416-327-6758Fax 416-327-6754

4' etaqe, edifice Hearst900, rue BayToronto ON M7A 2E1Tel: 416327-6758Telk. 416 327 -6754

FEB 1 5 Z017 MC-2017-25

Mr. Frank DaleRegional Chair and Chief Executive OfficerThe Regional Municipality of PeelSuite A-1 0 Peel Centre DriveBrampton ON L6T 4B9

- : q ') 'I 2017

Dear Mr. Dale:

Thank you for your letter regarding the suspension of the second phase of the LargeRenewable Procurement (LRP II) and the Energy-from-Waste Standard Offer Program(EFWSOP). I am pleased to respond.

Let me assure you that this decision was not taken lightly, but was based on theIndependent Electricity System Operator's (IESO) Ontario Planning Outlook (OPO),which they provided to me on September 1,2016. The OPO advised that Ontario willbenefit from a strong supply of electricity over the coming decade to meet projectedenergy demand. The decision to suspend these programs will save up to $3.8 billion inelectricity system costs relative to Ontario's 2013 Long-Term Energy Plan (LTEP)forecast.

With respect to energy-from-waste projects contracted under previous ministerialdirectives, such contracts are not affected by the suspension of EFWSOP. Movingforward, Ontario electricity consumers can expect to benefit from the IESO's transitionto a market-based approach to procuring resources. We welcome the involvement ofexisting generation facilities in this initiative.

Regarding renewable natural gas (RNG), Ontario is investing up to $100 million of capand trade proceeds over four years to encourage and support the implementation ofRNG. Further to this end, on December 10, 2016, I wrote the Ontario Energy BoardChair requesting that the Board review the merits of including RNG in the province'snatural gas supply mix.

Our government recognizes that sound, prudent long-term energy planning is essentialto a clean, reliable and affordable energy future. The Ministry of Energy recentlyconcluded one of the most comprehensive public consultations Ontario has everconducted, seeking feedback from communities and stakeholders toward a renewedLTEP. The LTEP sets out a direction for Ontario's energy future that balances theprinciples of cost-effectiveness, reliability, clean energy, community and Indigenousengagement, and emphasis on conservation and demand management.

.../cont'd

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Receipt

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The LTEP consultations and Indigenous engagements were informed by the LTEPDiscussion Guide, entitled Planning Ontario's Energy Future, as well as the IESO'sOPO and a Fuels Technical Report developed by an expert third party. Thesedocuments can be viewed at www.ontario.ca/energyplan.

I was pleased to note in the Project/Issue Update you provided that Region of Peel staffintended to engage with the consultation process. We are working diligently to reviewthe feedback we've received and develop the updated plan, to be released during 2017.We will continue to work with municipalities and Indigenous communities to ensurethere is meaningful involvement in electricity system planning while maintaining thereliability of the system.

If you wish to follow up with my staff on these matters, I invite you to contactCraig Ruttan, Policy Advisor (Energy Supply Policy) at [email protected] or416-314-2641 , or Meaghan Coker, Policy Advisor (Renewable Energy) atmeaghan [email protected] or 416-327-3373.

Thank you again for writing and please accept my best wishes.

c: Craig Ruttan, Policy Advisor (Energy Supply Policy)' Minister's OfficeMeaghan Coker, Policy Advisor (Renewable Energy), Minister's Office

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http://www.ontario.ca/energyplan.

mailto:[email protected]


Office of the Chair

December 20, 2016 Resolution Number 2016-991

Honourable Glenn ThibeaultMinister of EnergyHearst Block 4th Fir900 Bay St, Toronto, ON M7A 2E1

Dear Minister:

Subject: Project/Issue Update dated October 4, 2016, Regarding the Province'sCancellation of the Large Renewables Procurement and the Energy fromWaste Procurement

I am writing to advise that Regional Council approved the following resolution at its meetingheld on Thursday, December 8,2016:

Resolution 2016.991

That the Regional Chair write, on behalf of Regional Council, to the Minister ofEnergy and copy the Minister of Environment and Climate Change to expressdisappointment with the cancellation of the Large Renewables Procurement andthe Energy from Waste Procurement programs.

A copy of the original project update is attached.

The Region of Peel is proud of its support for renewable, low-carbon energy. In that regard, theRegion of Peel wishes to express its disappointment with your decision to suspend the LargeRenewable Procurement (LRP) program and the Energy from Waste Standard Offer Program(EFWSOP).

The LRP and EFWSOP programs created the only long-term, reliable market opportunities forthe energy produced by waste sector projects. Access to reliable energy markets is essentialfor the kinds of waste sector projects Ontario needs to implement to meet its ambitious wastefree and climate change goals.

Waste sector projects that generate energy, such as anaerobic digestion, landfill-gas-to-energyand waste-to-energy, differ in significant ways from other energy projects targeted by existing orprevious standard offer programs. In addition to producinq energy, waste sector projects alsoconserve resources and reduce greenhouse gas emissions and by so doing benefit our societybeyond the value of the energy produced.

Waste sector energy projects can produce other forms of energy such as renewable naturalgas or liquid fuels but markets for those products are not well established at this time.

The Regional Municipality of Peel 10 Peel Centre Dr., Suite A, 8rampton, ON L6T489 905-791-7800 Fax 905-791-2567

Website: www.peelregion.ca

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http://www.peelregion.ca

Office of the Chair

For these reasons we believe that energy policy should consider waste sector projects to be aunique category of generation.

Without access to reliable energy markets, many waste sector projects will not be economicallyviable and therefore will not move forward.

The Region asks that your Ministry ensure reliable energy markets are available for wasteprojects by reinstating the LRP and EFWSOP programs, and by implementing new policies orprograms to create other reliable markets for energy products.

The Region further asks that you clarify that existing power purchase agreements with wastesector projects under the LRP will be extended for the life of the generating asset.

Frank DaleRegional Chair and Chief Executive Officer

FD:cl

c: Honourable Glen R. Murray, Minister of Environment and Climate ChangeDan Labreque Commissioner, Public Works Peel RegionNorman Lee Director, Waste Management, Peel Region

The Regional Municipality of Peel 10 Peel Centre Dr., Suite A, Brampton, ON L6T4B9 905-791-7800 Fax 905-791-2567

Website: www.peelregion.ca

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http://www.peelregion.ca

REGIONAL COUNCIL

Public Works October 4,2016

Province Suspends Large Renewables Procurement and Energy from WasteStandard Offer Programs

On September 27, the Minister of Energy announced the suspensions two programs for new electricitygeneration in the province; the Large Renewables Procurement Program (LRPII) and the Energy fromWaste Standard Offer Program (EFWSOP). The press release announcing the suspensions is attached.

This announcement follows the September release of the Ontario Planning Outlook by the IndependentElectricity System Operator (IESO). The Outlook is a report on the status of the province's electricitygeneration capacity relative to projected future demand. The Outlook recommends that no new generationcapacity is required meet expected demand over the next decade.

The province will begin consultation on a new long-term energy plan in the fall of 2016, with the goal ofreleasing the new plan in 2017. Staff will engage with the consultation process.

The balance of this update describes the two programs, their relevance to the Region's activities andplans and the impact of their suspensions.

• In June 2013, the province directed the IESO to create the Large Renewables Procurement Programto competitively procure new renewable electricity generation from projects with a capacity of 500kilowatts or greater. New solar, wind, hydroelectric and bioenergy (including biogas and landfill gas)projects were all eligible under the LRP program.

• The first round of procurements under the Program (LRPI) was completed in April 2016 with theaward of 16 contracts totaling approximately 450 megawatts of renewable generation with themajority of the new capacity coming from solar and wind projects and none from bioenergy.

• In April 2015, province directed the IESO to conduct a second round of LRP procurements (LRPII). ARequest for Prequalification was issued in July and closed in September 2016.

• Suspension of the LRPII program means that at present there is no way for large bioenergy projects,like Peel's new anaerobic digestion facility and potential future mixed waste processing facility, tosecure contracts to supply electricity to the provincial grid. However, for Peel's new facilitiessuspension of the LRPII is inconsequential because the alternative approach of producing renewablenatural gas is available and offers greater economic and environmental benefits.

• Other than the new waste management facilities mentioned above, the Region has no plans forother large renewable generation projects which could be affected by the suspension. A 1.4megawatt combined heat & power generator was recently installed at the Clarkson WastewaterTreatment Plant and is to be fueled by biogas produced from the anaerobic digesters. This generatoris designed to supply electricity for the operation of the wastewater treatment plant rather than theprovincial grid and so is unaffected by the suspension.

• Waste Management has and will continue to use landfill gas from the Twin Creeks Landfill to powera local greenhouse growing food. Waste Management was developing plans to also use landfill gasto generate electricity however the suspension of the LRP means that plans will likely be cancelled.

--- ._. -.-- __ ._ --.- - .-- _- .. _. --- ... _"-- _..~ ----------- -----_ .._--- _--- .._-_ - - --- -- ---_----_ ..-_- ----Dan Labrecque, Commissioner of Public Works, Region of Peel, 905-791-7800, ext. 4395

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Regional Council Projectllssue Update Public Works

Waste Management will instead investigate converting the landfill gas into renewable natural gasand opportunities to use the landfill gas to supply energy to the industrial parks near the landfill.

• The province has indicated that renewables will be a part of the new long-term energy plan but thedetails will not be known until 2017.

• The IESO's Feed-In Tariff (FIT) program, which procures new renewable generation capacity fromprojects less than 500 kilowatts, is about to begin its fifth round of procurement and is unaffected bythe province's announcement. The small rooftop solar generation project at the Heart LakeCommunity Recycling Centre secured a power purchase agreement under this program.

• In April 2015, the province directed the IESO to create a program to purchase electricity generatedfrom new energy from waste facilities (EFW) processing municipal waste. In response to thisdirective, the IESO created the Energy from Waste Standard Offer Program in December, 2015 toprocure up to 75 megawatts of electricity generation capacity from eligible EFW facilities.

• The IESO reported that as of May 2016, no applications had been received under the EFWSOP.• Suspension of the EFWSOP means that at present there is no way for a new or expanded EFW

project to secure a contract to supply electricity to the provincial grid.• The province has given no explicit indication of whether EFW will be included in the new long-term

energy plan. The province does not consider EFW to be renewable generation and thereforecomments from the province regarding the inclusion of renewables in the new long-term energy plancannot be interpreted to also include EFW.

• The Durham-York Energy Centre in Clarington Township and the Emerald EFW facility in Bramptonhave existing agreements to supply electricity and are not directly affected by the suspension of theEFWSOP.

• Consideration of processing some Peel garbage at the Emerald EFW facility should not be affectedby the suspension however staff will investigate further to confirm there are no impacts.

• Suspension of the EFWSOP effectively eliminates consideration of a new or expanded EFW facilityto generate electricity from Peel's garbage.

If you have any questions, please contact me directly at 905-791-7800 x4703 or by email [email protected]

Norman Lee, DirectorWaste Management

CC: D. Szwarc, CAOD. Labrecque, Commissioner Public Works

:~- - .:----:--.,-:.~-~-Dan Labrecque, Commissioner of Public Works, Region of Peel, 905-791-7800, ext. 4395

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From: AMO Communications <[email protected]> Sent: Friday, March 3, 2017 2:17 PM To: Lockyer, Kathryn Subject: AMO Policy Update - Strategy for a Waste-Free Ontario: Building the Circular Economy Released

March 3, 2017

Strategy for a Waste-Free Ontario: Building the Circular Economy Released

On March 1st, the Minister of Environment and Climate Change Glen Murray released the Strategy for a Waste-Free Ontario: Building the Circular Economy. The Strategy is intended to serve as a road map to shift Ontario towards a circular economy and a zero-waste future.

On January 30, 2017, AMO jointly submitted comments with the City of Toronto, the Municipal Waste Association (MWA), and the Regional Public Works Commissioners of Ontario (RPWCO) to the Ministry on the Strategy.

Key issues for municipalities that are outlined in the Strategy are:

• New legislation makes Producers fully responsible for end-of-life management of designated products and packaging. Municipal governments have traditionally played a key role in waste diversion programs. The most notable has been the Blue Box program where Regulation 101/94 of the Environmental Protection Act requires a municipality with population over 5,000 to provide Blue Box collection services. Under the new legislation, the Province has limited the role of municipalities to a "potential service provider" to Producers in the management of their designated materials.

• Wind-up and transition of existing diversion programs for Blue Box, Municipal Hazardous and Special Waste, Waste Electrical and Electronic Equipment, and Tires to the Resource Recovery and Circular Economy Act. Regulations will be developed for each of these programs.

• The Organics Action Plan intends to ban food waste from disposal in 2022 and may also create new revenue opportunities with increased demand for renewable natural gas.

AMO Contact: Dave Gordon, Senior Advisor, Waste Diversion, E-mail: [email protected], 416-971-9856 ext. 371.

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https://www.ontario.ca/page/strategy-waste-free-ontario-building-circular-economy?_ga=1.265959946.461106567.1488471369


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DISCLAIMER: Any documents attached are final versions. AMO assumes no responsibility for any discrepancies that may have been transmitted with this electronic version. The printed versions of the documents stand as the official record.

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