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Slide 1
Presentation of Preliminary 2009 Fees for Blue Box Stewards
September 12, 2008
Joyce Barretto, CEO
Slide Slide 22
Welcome!Welcome!
In person ~6In person ~600
Webcast audience ~50Webcast audience ~50 slides advance automaticallyslides advance automatically enlarge slideenlarge slide volume controlvolume control email box for questions/comments email box for questions/comments
left of slide screenleft of slide screen use at any timeuse at any time
please include name & affiliationplease include name & affiliation
Archived webcast available Archived webcast available Volume control
Slide Slide 33
Today’s Agenda: Blue Box FocusToday’s Agenda: Blue Box Focus
Stewardship Ontario key updatesStewardship Ontario key updates Blue Box Program Plan overviewBlue Box Program Plan overview Preliminary stewards’ Blue Box fees for 2009Preliminary stewards’ Blue Box fees for 2009
questions & commentsquestions & comments
BreakBreak Proposed changes to 2009 Blue Box Rules Proposed changes to 2009 Blue Box Rules
& reporting requirements& reporting requirements questions & commentsquestions & comments
Concluding remarksConcluding remarks
Slide Slide 44
Stewardship OntarioStewardship Ontario
Industry Funding Organization (IFO) established Industry Funding Organization (IFO) established under the under the Waste Diversion ActWaste Diversion Act (2002) (2002)
Charged with developing, implementing & Charged with developing, implementing & managing two stewardship programs:managing two stewardship programs: Blue Box Program Plan (BBPP)Blue Box Program Plan (BBPP) Municipal Hazardous or Special Waste (MHSW) Municipal Hazardous or Special Waste (MHSW)
Program PlanProgram Plan
Slide Slide 55
Stewardship Ontario ProgramsStewardship Ontario Programs
20032003——Blue BoxBlue Box packaging & printed material introduced into Ontario packaging & printed material introduced into Ontario
(ON Reg. 273/02)(ON Reg. 273/02) managed through municipal recycling programsmanaged through municipal recycling programs
20082008——Municipal Hazardous or Special WastesMunicipal Hazardous or Special Wastes wide range of products (ON Reg. 542/06)wide range of products (ON Reg. 542/06) managed through municipal MHSW programs managed through municipal MHSW programs
& through commercial & institutional & through commercial & institutional collection programscollection programs
Slide Slide 66
2 Programs; 1 Organization2 Programs; 1 Organization
Distinctly different stewardship Distinctly different stewardship programs programs
Printed Paper & Packaging in Printed Paper & Packaging in municipal waste streammunicipal waste stream
residuals & related packaging residuals & related packaging that require separate that require separate managementmanagement
Material streams, collection & Material streams, collection & processing requirements & processing requirements & funding formulas differfunding formulas differ
Slide Slide 77
Blue Box Program HighlightsBlue Box Program Highlights
5 years successfully discharged members’ legal 5 years successfully discharged members’ legal obligations under obligations under Waste Diversion ActWaste Diversion Act (WDA); (WDA); stewards at 50% share of net program costs stewards at 50% share of net program costs
Keeping combined administration costs of Keeping combined administration costs of Stewardship Ontario & Waste Diversion Ontario Stewardship Ontario & Waste Diversion Ontario (WDO) under 5% of total program costs(WDO) under 5% of total program costs
Successful partnerships with municipalities to Successful partnerships with municipalities to improve effectiveness & efficiency of municipal improve effectiveness & efficiency of municipal Blue Box (BB) programsBlue Box (BB) programs
Slide Slide 88
Profile of Blue Box StewardsProfile of Blue Box Stewards
1,380 registered stewards in 20081,380 registered stewards in 2008
Fee contribution by sector Fee contribution by sector
Other ServicesOther Services1%1%
Durable Products Durable Products Manufacturers and Manufacturers and
DistributorsDistributors9% 9%
Manufacturers & Distributors of Consumables
46%
Printed MediaPrinted Media2%2%
Retailers & Distributors
42%
Slide Slide 99
Blue Box Steward ContributionsBlue Box Steward Contributions
Over first 5 years: Over first 5 years: $191M: direct cash payments $191M: direct cash payments
to municipalities to municipalities ~$7M: “In-kind” advertising ~$7M: “In-kind” advertising
space space $19.75M project grants to $19.75M project grants to
improve effective & efficiency improve effective & efficiency of municipal recycling of municipal recycling programs programs
Slide Slide 1010
Annual Tonnes of Annual Tonnes of Blue Box Material RecoveredBlue Box Material Recovered
Tonnes Recovered
Estimated Recovery Rate
2001 693,547 45%
2002 726,718 46%
2003 779,844 53%
2004 823,635 55%
2005* 786,947 57%
2006* 850,975 64%
2007* 865,969 63%
*Figures do not include wine & spirit containers on deposit in Ontario*Figures do not include wine & spirit containers on deposit in Ontario
Slide Slide 1111
BBPP—A Continuous Improvement ProgramBBPP—A Continuous Improvement Program
Continuous Improvement FundContinuous Improvement Fund
Recyclers’ Knowledge NetworkRecyclers’ Knowledge Network
Market Development Market Development
Slide Slide 1212
Continuous Improvement Fund (CIF)Continuous Improvement Fund (CIF)
Agreement among Stewardship Ontario, WDO, Agreement among Stewardship Ontario, WDO, Association of Municipalities of Ontario (AMO) Association of Municipalities of Ontario (AMO) & City of Toronto to allocate 20% of stewards & City of Toronto to allocate 20% of stewards annual financial obligation to municipalities to:annual financial obligation to municipalities to: support diffusion of municipal BB recycling Best support diffusion of municipal BB recycling Best
PracticesPractices make strategic investments in collaboration with make strategic investments in collaboration with
municipalities toward improving system performancemunicipalities toward improving system performance reduce future net system costsreduce future net system costs
www.wdo.ca/cifwww.wdo.ca/cif
Slide Slide 1313
Recyclers’ Knowledge Network (RKN)Recyclers’ Knowledge Network (RKN)
Completely up-to-date online source of Completely up-to-date online source of municipal recycling informationmunicipal recycling information
User-friendly resource User-friendly resource for recycling ‘Best Practices’for recycling ‘Best Practices’
Likely future site for expanded Likely future site for expanded online recycler training online recycler training
www.recyclersknowledgenetwork.cawww.recyclersknowledgenetwork.ca
Slide Slide 1414
Market DevelopmentMarket Development
Overcome barriers to recycling—provide Overcome barriers to recycling—provide capacity & increase valuecapacity & increase value
GlassGlass──$2.5M investment paid by glass stewards$2.5M investment paid by glass stewards 8 projects including new glass processing plant8 projects including new glass processing plant
due to open October 2008due to open October 2008
$10M savings in glass processing over 5 years$10M savings in glass processing over 5 years
PlasticsPlastics─$2.4M investment paid by plastics ─$2.4M investment paid by plastics stewardsstewards details later in presentationdetails later in presentation
Slide Slide 1515
New Program Report: MHSWNew Program Report: MHSW
Phase 1 launch: July 1, 2008Phase 1 launch: July 1, 2008 300 stewards registered to date300 stewards registered to date
9 materials; 3 “return channels”9 materials; 3 “return channels” automotive, commercial, municipalautomotive, commercial, municipal
Double diversion rate of Double diversion rate of these materials within 5 yearsthese materials within 5 years
Phase 1 Materials
Paints & coatings Solvents Oil filters Oil containers Single use dry cell
batteries Antifreeze Pressurized
containers Fertilizers Pesticides
Slide Slide 1616
MHSW Phase 2MHSW Phase 2
Due March 2, 2009Due March 2, 2009 Materials:Materials:
all batteries, except lead acid batteries from vehiclesall batteries, except lead acid batteries from vehicles aerosol containers such as hair spray containersaerosol containers such as hair spray containers portable fire extinguishersportable fire extinguishers fluorescent light bulbs & tubesfluorescent light bulbs & tubes switches containing mercuryswitches containing mercury thermostats, thermometers, barometers, other measuring thermostats, thermometers, barometers, other measuring
devices that contain mercurydevices that contain mercury pharmaceuticalspharmaceuticals sharps, including syringessharps, including syringes
Slide Slide 1717
MHSW Phase 3MHSW Phase 3
Due August 31, 2009 Due August 31, 2009
Final phase of amended program includes Final phase of amended program includes addition of all other remaining materials addition of all other remaining materials (“Phase 3”) that meet definition of “municipal or (“Phase 3”) that meet definition of “municipal or hazardous waste” in provincial regulationhazardous waste” in provincial regulation
Slide Slide 1818
Wrap-UpWrap-Up
More informationMore information website: www.stewardshipontario.cawebsite: www.stewardshipontario.ca e-newsletter: e-newsletter: Need-to-KnowNeed-to-Know
Provide your opinion about today’s presentationProvide your opinion about today’s presentation form on tableform on table
Slide Slide 2020
TopicsTopics
Determining Stewards’ Fees for 2009Determining Stewards’ Fees for 2009 timeline; financial obligation to municipalities; program timeline; financial obligation to municipalities; program
delivery & administration costs; preliminary 2009 feesdelivery & administration costs; preliminary 2009 fees
Policy IssuesPolicy Issues fee-setting methodology; overcoming barriers to fee-setting methodology; overcoming barriers to
performance; managing 2008 surplus; BB containers performance; managing 2008 surplus; BB containers for Municipal Hazardous or Special Materials (MHSM)for Municipal Hazardous or Special Materials (MHSM)
Review of fees over past 5 yearsReview of fees over past 5 years
Slide Slide 2121
Timeline for Setting 2009 FeesTimeline for Setting 2009 Fees
August 1WDO informs Stewardship Ontario of stewards’ obligation for 2009
Sept 12 Stakeholder information session on preliminary fees
Sept 26 Deadline for comments to Stewardship Ontario
Oct 8 Stewardship Ontario Board review & set final fees
Oct 22 WDO Board approval of fees
Slide Slide 2222
Summary of Fee-Setting Summary of Fee-Setting
Fees comprised of:Fees comprised of: External costs charged to Stewardship Ontario:External costs charged to Stewardship Ontario:
50% of verified municipal net system cost50% of verified municipal net system cost including allocation to CIF & in-kind advertisingincluding allocation to CIF & in-kind advertising
projected WDO chargesprojected WDO charges projected Ministry of the Environment (MOE) enforcement costs projected Ministry of the Environment (MOE) enforcement costs
PlusPlus Costs directly incurred by Stewardship Ontario:Costs directly incurred by Stewardship Ontario:
projected administrationprojected administration projected program delivery costsprojected program delivery costs material-specific market development fees (if any)material-specific market development fees (if any) recovery of any shortfall or credit for any operating surplusrecovery of any shortfall or credit for any operating surplus
Slide Slide 2424
Largest Component of Fees Largest Component of Fees
Industry financial obligation to municipalities Industry financial obligation to municipalities represents 96% of feesrepresents 96% of fees
96%96%
Slide Slide 2525
Program Delivery & Admin & WDO ChargesProgram Delivery & Admin & WDO Charges
WDO Program WDO Program DeliveryDelivery0.5%0.5%
3.9%3.9%
NOTES: Program admin generally represents legal, accounting & office overheads as approved by NOTES: Program admin generally represents legal, accounting & office overheads as approved by WDO & Minister.WDO & Minister.
Program delivery refers to activities required to meet program objectives, such as monitoring Program delivery refers to activities required to meet program objectives, such as monitoring performance, allocating costs, increasing the efficiency of recycling programs, ensuring performance, allocating costs, increasing the efficiency of recycling programs, ensuring compliance, etc.compliance, etc.
SO Program Delivery
1.6%MOE MOE ComplianceCompliance0.1%0.1%
SO Admin1.2%
WDO Admin0.8%
Slide Slide 2626
Blue Box Material RecoveryBlue Box Material Recovery
Drop in overall reported recovery due to diversion of LCBO Drop in overall reported recovery due to diversion of LCBO containers now returned through deposit system.containers now returned through deposit system.
Recovery of remaining BB materials relatively flat Recovery of remaining BB materials relatively flat increased by about 2% in 2007 over 2006, compared to increased by about 2% in 2007 over 2006, compared to
4% to 7% in past years4% to 7% in past years population & households increased by about 3%population & households increased by about 3%
Overall recovery rate (excluding LCBO deposit containers) Overall recovery rate (excluding LCBO deposit containers) remains at about 63%remains at about 63%
Tonnes 2006 2007 Year Over Year Change
Overall Recovered 943,000 903,000 (40,000) -4%
Net of LCBO 851,000 871,000 20,000 2%
Slide Slide 2727
Municipal Obligation for 2009 Municipal Obligation for 2009
Obligation for 2009Obligation for 2009 $78.5M$78.5M
Obligation for 2008Obligation for 2008 $66.5M$66.5M
Difference (+18%)Difference (+18%) $12.0M$12.0M
Slide Slide 2828
$5
$10
$15$15
$20$20C
han
ge
in O
bli
gat
ion
($M
)
[1][1]$1.92M$1.92M
[2]$7.44M
[3][3]$0.31M $0.31M
[4]$9.26M
[5]($6.93M)
[1][1] Adjustments for incorrect reporting in previous year.Adjustments for incorrect reporting in previous year.[2][2] Smaller deduction for wine & spirit containers remaining in BBPP.Smaller deduction for wine & spirit containers remaining in BBPP.[3][3] New capital costs: increased investment in system.New capital costs: increased investment in system.[4][4] Increased operating costs: fuel surcharges; new contracts reflecting investment Increased operating costs: fuel surcharges; new contracts reflecting investment
in system; increased recovery in recent previous years; shifting mix of materials.in system; increased recovery in recent previous years; shifting mix of materials.[5][5] Higher commodity prices do not offset costs given: 3 year averaging of revenue Higher commodity prices do not offset costs given: 3 year averaging of revenue
small shift to less valuable mix of materials.small shift to less valuable mix of materials.
2006 to 2007
change in obligation$12.00M
Factors leading to Increased ObligationFactors leading to Increased Obligation
Slide Slide 2929
Material-Specific Increases (1)Material-Specific Increases (1)
All fee rates increase with overall increase in All fee rates increase with overall increase in financial obligation to municipalitiesfinancial obligation to municipalities
Change in obligation affects materials differently Change in obligation affects materials differently due to fee-setting formuladue to fee-setting formula type of material: easier-to-recycle materials have type of material: easier-to-recycle materials have
higher recovery rates & lower cost to manage have higher recovery rates & lower cost to manage have relatively lower fee ratesrelatively lower fee rates
commodity value: higher revenues lower net cost for commodity value: higher revenues lower net cost for that material which results in a lower feethat material which results in a lower fee
Slide Slide 3030
Material-Specific Increases (2)Material-Specific Increases (2)
Therefore, the material-specific changes Therefore, the material-specific changes primarily relate to:primarily relate to: relative quantity of material recoveredrelative quantity of material recovered affect of commodity prices on the costaffect of commodity prices on the cost relative percentage of each material recovered relative percentage of each material recovered
(recovery rate)(recovery rate)
Fee rates are affected by amount of material Fee rates are affected by amount of material introduced into Ontario marketintroduced into Ontario market
Slide Slide 3131
Factors Contributing to Increase in ObligationFactors Contributing to Increase in Obligation
MaterialTonnes
RecoveredNet
CostRecovery
Rate
Tonnes Reported
by Stewards
Result
Printed Paper Relatively large increase
Paper Packaging ▬ ▬ ▬
In line with overall increase
PET ▬ In line with overall increase
HDPE Relatively small increase
Other Plastics Relatively small increase
Steel ▬ ▬ Relatively small increase
Aluminum ▬ ▬Relatively large increase in credit
Glass ▬ Relatively small increase
Slide Slide 3232
Base Fee RatesBase Fee Rates
(50.00)(50.00)
0.000.00
50.0050.00
100.00100.00
150.00150.00
200.00200.00
CNA/OCNA News
Other News
Other Prin
ted Paper
OCC & OBB
Other Paper P
ackaging
PET bottles
HDPE bottles
Other Plastic
sSteel
Aluminum F&B
Other Aluminum
Clear Glass
Coloured Glass
Fee
Rat
e ($
/to
nn
e)
2008 Fee Rates
2009 Preliminary Fee Rates AfterCredit of Operating Surplus
Slide Slide 3333
Preliminary Stewards’ Fee Rates for 2009Preliminary Stewards’ Fee Rates for 20092008 Fees 2009 Preliminary Fees
Material Fee Rates (¢/kg) Fee Rates (¢/kg)1 Fees ($)2
CNA/OCNA Newsprint 0.148 0.133 $347,022
Other Newsprint 0.764 1.332 $1,961,184
Other Printed Paper 2.182 3.373 $4,820,385
OCC & OBB 7.252 8.115 $20,975,849
Other Paper Packaging 12.534 13.696 $5,651,483
PET Bottles 11.238 12.560 $6,069,735
HDPE Bottles 11.135 11.406 $2,539,465
Other Plastics 18.449 18.990 $26,523,822
Steel 4.744 4.955 $2,849,038
Aluminum Food & Beverage (2.215) (3.116) ($834,143)
Other Aluminum Packaging 5.095 5.912 $188,593
Clear Glass 3.529 3.758 $2,860,223
Coloured Glass 3.976 4.537 $419,707
Total Blue Box Program Fees2,3 $66,605,943 $74,372,363
CNA/OCNA In-Kind Contribution $1,829,057 $3,396,7451. 1. Fees are not final pending on-going review of stewards' reports expected to result in higher reported tonnes before fees are finalized in October. Therefore Fees are not final pending on-going review of stewards' reports expected to result in higher reported tonnes before fees are finalized in October. Therefore
total Blue Box program costs would be spread over a larger base of tonnes, tending to reduce fee rates.total Blue Box program costs would be spread over a larger base of tonnes, tending to reduce fee rates. 2. Fee rates include a $4.9 M credit (6%) for the projected operating surplus for 2008 (after the restricted reserve) that is attributable to each material2. Fee rates include a $4.9 M credit (6%) for the projected operating surplus for 2008 (after the restricted reserve) that is attributable to each material3. Total Program fees includes financial obligation to municipalities of $78.5M & projected program delivery & administration costs.3. Total Program fees includes financial obligation to municipalities of $78.5M & projected program delivery & administration costs.
Slide Slide 3535
Key Policy ConsiderationsKey Policy Considerations
Annual review of fee-setting methodologyAnnual review of fee-setting methodology
Market development investmentsMarket development investments
Allocation for 2008 surplus feesAllocation for 2008 surplus fees
Minimizing future surplusesMinimizing future surpluses
Reconciling containers managed under both BB Reconciling containers managed under both BB & MHSW Programs& MHSW Programs
Slide Slide 3636
Fee-Setting Methodology Fee-Setting Methodology
Changes made to factor weightings for Changes made to factor weightings for 2008 fees2008 fees in 2007, changes were made to dis-aggregate fee in 2007, changes were made to dis-aggregate fee
rates for plastic & paper packaging rates for plastic & paper packaging
Agreement to review weightings annuallyAgreement to review weightings annually No change recommended for 2009 No change recommended for 2009
reasons:reasons: significant system cost increasesignificant system cost increase allow time for recent changes to work through systemallow time for recent changes to work through system implementing plastics market development initiatives implementing plastics market development initiatives
Slide Slide 3737
Market Development InvestmentsMarket Development Investments
For some materialsFor some materials——barriers to increasing barriers to increasing recovery & to lowering cost of recyclingrecovery & to lowering cost of recycling
Provision to include additional material-specific Provision to include additional material-specific fees to overcome barriersfees to overcome barriers paid by stewards of affected materialspaid by stewards of affected materials
Initial focus on glass ($2.5M)Initial focus on glass ($2.5M)——years 2 & 3years 2 & 3
For 2008, $2.4M market development fees to For 2008, $2.4M market development fees to increase plastics recyclingincrease plastics recycling—plastics —plastics stewardsstewards
Slide Slide 3838
2-Track Blue Box Plastics Plan2-Track Blue Box Plastics Plan
1)1) Optimize recovery of highest value plastics via BBOptimize recovery of highest value plastics via BB ““All Bottle Plus” demonstrations (potential 15% lift)All Bottle Plus” demonstrations (potential 15% lift) conducted initial demonstration in Brockville in Juneconducted initial demonstration in Brockville in June follow-up research underwayfollow-up research underway
2)2) Technology investment opportunities for range Technology investment opportunities for range of plasticsof plastics REOI to RFP for range of solutionsREOI to RFP for range of solutions REOI used to ensure activities provide best return for stewardsREOI used to ensure activities provide best return for stewards issued REOI in June, interviews in July-Augustissued REOI in June, interviews in July-August developing next steps to RFPdeveloping next steps to RFP
Slide Slide 3939
Market Development Fees for 2009Market Development Fees for 2009
Recommendations:Recommendations: no additional market development fees for 2009no additional market development fees for 2009 Board to undertake strategic review of Board to undertake strategic review of
Stewardship Ontario market development Stewardship Ontario market development needs across all materialsneeds across all materials
Slide Slide 4040
Management of Surplus for 2008Management of Surplus for 2008
Projected 2008 surplus available: $4.9MProjected 2008 surplus available: $4.9M new stewards foundnew stewards found penalties & interestpenalties & interest conservative budgetingconservative budgeting
Recommendation:Recommendation: continue with current policy of:continue with current policy of:
maintaining restricted reserve of $3.5Mmaintaining restricted reserve of $3.5M
apply remaining surplus to reduce fees in apply remaining surplus to reduce fees in following yearfollowing year
Slide Slide 4141
Minimizing Surplus for 2009 (1)Minimizing Surplus for 2009 (1)
Not possible to project with 100% accuracy total Not possible to project with 100% accuracy total quantity of BB material in next program yearquantity of BB material in next program year
Current practice is to divide projected current Current practice is to divide projected current year costs by steward reported tonnes in year costs by steward reported tonnes in previous yearprevious year no allowance made for projected growth or change in no allowance made for projected growth or change in
material mix, due to lack of data material mix, due to lack of data
Slide Slide 4242
Minimizing Surplus for 2009 (2)Minimizing Surplus for 2009 (2)
Consideration given to alternative of Consideration given to alternative of incorporating projected modest growth rates into incorporating projected modest growth rates into estimates of obligated material likely to be estimates of obligated material likely to be reported next yearreported next year resulting in lower fee rates ($/tonne)resulting in lower fee rates ($/tonne) not recommended at this time—still no clear not recommended at this time—still no clear
generation trends & risk of financial shortfallgeneration trends & risk of financial shortfall
Board support to continue with Board support to continue with current practice current practice
Slide Slide 4343
Blue Box Containers for MHSMBlue Box Containers for MHSM
Addendum to MHSW Program Request Letter states:Addendum to MHSW Program Request Letter states:
““Potential fees should…not [apply] to a different program Potential fees should…not [apply] to a different program developed by WDO (i.e. Municipal Hazardous or Special developed by WDO (i.e. Municipal Hazardous or Special Material containers managed under the blue box Material containers managed under the blue box program).”program).”
MHSM fees:MHSM fees: effective July 2008 with payments commencing Octobereffective July 2008 with payments commencing October fees effective for 18 months—2008 & 2009fees effective for 18 months—2008 & 2009 synchronized with BB fee-setting in 2010synchronized with BB fee-setting in 2010
Some BB stewards will pay fees both for BB containers Some BB stewards will pay fees both for BB containers & for MHSM& for MHSM
Slide Slide 4444
Reconciliation of Costs for MHSM ContainersReconciliation of Costs for MHSM Containers
Program in which fees paid will reflect market in Program in which fees paid will reflect market in which majority of MHSM sold (residential vs IC&I) which majority of MHSM sold (residential vs IC&I) & sector through which majority of containers & sector through which majority of containers managed (BB vs MHSW)managed (BB vs MHSW)
Identifiable costs incurred to manage BB containers Identifiable costs incurred to manage BB containers within MHSW program will be reimbursed by BB program within MHSW program will be reimbursed by BB program & vice versa& vice versa
Measurable recovery of BB containers within MHSW Measurable recovery of BB containers within MHSW program will be credited to BB program & vice versaprogram will be credited to BB program & vice versa
Ensure administrative simplicity, transparency & Ensure administrative simplicity, transparency & minimize arbitrary allocationsminimize arbitrary allocations
Slide Slide 4545
2009 BB Fees for MHSM Containers2009 BB Fees for MHSM Containers
BB containers which contain MHSM will continue to pay BB containers which contain MHSM will continue to pay BB stewards’ fees in 2009BB stewards’ fees in 2009
BB containers for paint, solvents, antifreeze, pesticides & BB containers for paint, solvents, antifreeze, pesticides & fertilizers sold into consumer marketfertilizers sold into consumer market
will pay 2009 BB feeswill pay 2009 BB fees
Oil containers, specifically designated as MHSW will not Oil containers, specifically designated as MHSW will not pay BB fees in 2009pay BB fees in 2009
no BB stewards fees for oil containers in 2009no BB stewards fees for oil containers in 2009 credit for BB fees for oil containers July-December 2008credit for BB fees for oil containers July-December 2008 stewards may apply for an adjustment to their 2008 Steward’s stewards may apply for an adjustment to their 2008 Steward’s
ReportsReports send email to send email to [email protected]@stewardshipontario.ca
Slide Slide 4747
Determining Financial ObligationDetermining Financial Obligation
0.00.0
20.020.0
40.040.0
60.060.0
80.080.0
100.0100.0
120.0120.0
140.0140.0
160.0160.0
180.0180.0
200.0200.0
20032003 20042004 20052005 20062006 20072007 20082008 20092009
Program Year
Net
Sys
tem
Co
st (
Mill
ion
s o
f $)
Reported Net System Costs Including Costs for Ontario Deposit Containers
Reported Net System Costs
WDO Approved Net System Cost for Setting Fees
Slide Slide 4848
Program Administration Program Administration
Program administration has been less than 5% as required.
0.00%0.00%
1.00%1.00%
2.00%2.00%
3.00%3.00%
4.00%4.00%
5.00%5.00%
6.00%6.00%
2003/20042003/2004 20052005 20062006 20072007 20082008 20092009
Ad
min
istr
atio
n a
s a
Po
rtio
n o
f T
ota
l P
rog
ram
Co
st
Combined SO & WDO Admin
WDO Admin
SO Admin
Program Year
Slide Slide 5050
Preliminary 2009 FeesPreliminary 2009 Fees
External costs charged to Stewardship Ontario:
Verified municipal net system cost$78.5M
(includes allocation to CIF & in-kind advertising)
Projected WDO charges $0.8M
Projected MOE enforcement costs $0.1M
PlusPlus
Costs directly incurred by Stewardship Ontario:
Projected program administration $1.4M
Projected program delivery costs $1.8M
Material-specific market development fees none
—Board to review strategic needs & options pending
Credit shortfall for operating surplus -$4.9M
Total $77.7M
Slide Slide 5151
CommentsComments
Deadline: September 26Deadline: September 26 consultation slides & detailed calculations posted on consultation slides & detailed calculations posted on
Stewardship Ontario website Stewardship Ontario website
Send comments to: Send comments to: [email protected]@stewardshipontario.ca
Board will review comments & finalize fees Board will review comments & finalize fees on October 8on October 8
WDO Board consideration & approval of fees WDO Board consideration & approval of fees on October 22 on October 22 note fees no longer require Minister’s approvalnote fees no longer require Minister’s approval
Slide Slide 5555
Key ChangesKey Changes
Annual date changesAnnual date changes
Clarification changeClarification change——designation of stewardsdesignation of stewards
Publishing names of notified companiesPublishing names of notified companies
New material reporting categoriesNew material reporting categories
Slide Slide 5656
Annual Date ChangesAnnual Date Changes
Change addressed in sections: Change addressed in sections: Section 1 – defines year for basis of Steward’s ReportSection 1 – defines year for basis of Steward’s Report Appendix B – Appendix B – Form of Steward’s ReportForm of Steward’s Report Appendix C – Payment ScheduleAppendix C – Payment Schedule
Slide Slide 5757
Designation of Stewards (1)Designation of Stewards (1)
Revise order of First Importer & FranchisorRevise order of First Importer & Franchisor
Current Rules
Section 2 (1) Brand Owner
Section 2 (2) First Importer
Section 2 (3) Franchisor
2009 Rules
Section 2 (1) Brand Owner
Section 2 (2) Franchisor
Section 2 (3) First Importer
Slide Slide 5858
Designation of Stewards (2)Designation of Stewards (2)
Modify Modify Section 2 (3)Section 2 (3) In the event that there is no Brand Owner or In the event that there is no Brand Owner or
Franchisor, a First Importer is designated as a Franchisor, a First Importer is designated as a steward…steward…
clarify that a steward is only designated as a First clarify that a steward is only designated as a First Importer if a Brand Owner does not existImporter if a Brand Owner does not exist
No changes to designation of a stewardNo changes to designation of a steward
Slide Slide 5959
Publishing Names of Notified Companies Publishing Names of Notified Companies
Change addressed in section 10 (6):Change addressed in section 10 (6): Stewardship Ontario may publish on its website the Stewardship Ontario may publish on its website the
names of those persons to whom, in 2008 and 2009, names of those persons to whom, in 2008 and 2009, it sent written notice of how to obtain a copy of the it sent written notice of how to obtain a copy of the Rules pursuant to the Waste Diversion Act 2002Rules pursuant to the Waste Diversion Act 2002
aid stewards in identifying their obligationaid stewards in identifying their obligation
Slide Slide 6161
Background (1)Background (1)
Stewards report kilograms of designated BB Stewards report kilograms of designated BB wastes they introduce into the Ontario market & wastes they introduce into the Ontario market & manage as municipal waste manage as municipal waste 24 sub-categories of packaging & printed materials24 sub-categories of packaging & printed materials
Stewards report on methodology used, Stewards report on methodology used, deductions, brands & additional commentsdeductions, brands & additional comments
Continued packaging innovation leading to Continued packaging innovation leading to introduction of new materials & packaging formatsintroduction of new materials & packaging formats differential recycling & management costsdifferential recycling & management costs
Slide Slide 6262
Background (2)Background (2)
May 2008 letter from AMO highlighted “problem May 2008 letter from AMO highlighted “problem packaging”packaging” non-recyclable & contaminants, difficult to identify & non-recyclable & contaminants, difficult to identify &
sort, and large sizessort, and large sizes used to support AMO position paper on revised BB used to support AMO position paper on revised BB
funding funding
Stewards concerned about differences in Stewards concerned about differences in reporting requirements between Stewardship reporting requirements between Stewardship Ontario & Ontario & ÉÉco Entreprises Quco Entreprises Quéébec (bec (ÉÉEQ)EQ)
Slide Slide 6363
Objectives of Proposed ChangesObjectives of Proposed Changes
Track packaging changes that may impact Track packaging changes that may impact program costs & recovery performanceprogram costs & recovery performance
Provide additional data to better inform Provide additional data to better inform Board decision-making on emerging policy Board decision-making on emerging policy & program issues& program issues
Promote greater harmonization of stewards Promote greater harmonization of stewards reporting requirements in Ontario & reporting requirements in Ontario & QuQueebecbec
Board commitment to monitor impact of Board commitment to monitor impact of steward feessteward fees
Slide Slide 6464
Current Plastic Sub-CategoriesCurrent Plastic Sub-Categories
PET bottles 12.560 ¢/kg
HDPE bottles & jugs 11.406 ¢/kg
Polystyrene
18.990 ¢/kg
for each of these materials
Other rigid plastics
LDPE/HDPE film
Plastic laminant
Natural & synthetic textiles
Slide Slide 6565
Summary of Proposed ChangesSummary of Proposed Changes
Biodegradable plastic film & biodegradable Biodegradable plastic film & biodegradable rigid containers rigid containers
Plastic containers >5 litresPlastic containers >5 litres
LDPE/HDPE carry-out bagsLDPE/HDPE carry-out bags
Request additional information from stewardsRequest additional information from stewards
Slide Slide 6666
Biodegradable Plastic Film Biodegradable Plastic Film & Rigid Containers (1)& Rigid Containers (1)
Proposed additionsProposed additions biodegradable plastic film biodegradable plastic film biodegradable rigid plastic containersbiodegradable rigid plastic containers
Rationale for collecting this informationRationale for collecting this information not addressed in original BBPP because not on the not addressed in original BBPP because not on the
marketmarket growing usage by brand owners & retailersgrowing usage by brand owners & retailers
carry-out film bags, service packagingcarry-out film bags, service packaging
continued…
Slide Slide 6767
Biodegradable Plastic Film Biodegradable Plastic Film & Rigid Containers (2)& Rigid Containers (2)
Rationale, Rationale, continued …continued … considered a contaminant to conventional plastic film considered a contaminant to conventional plastic film
& rigid container recycling& rigid container recycling need to quantify amount entering marketplaceneed to quantify amount entering marketplace
Impact/challenges to stewardsImpact/challenges to stewards limited number of stewards affected, but growinglimited number of stewards affected, but growing
Slide Slide 6868
Plastic Containers >5 Litres (1)Plastic Containers >5 Litres (1)
Proposed additionsProposed additions PET bottles >5 litresPET bottles >5 litres HDPE bottles & jugs >5 litresHDPE bottles & jugs >5 litres Other rigid plastic containers >5 litresOther rigid plastic containers >5 litres
Rationale for collecting this informationRationale for collecting this information large packaging formats fill recycling containers large packaging formats fill recycling containers
& collection vehicles faster, leading to increased & collection vehicles faster, leading to increased collection costscollection costs
continued…
Slide Slide 6969
Plastic Containers >5 Litres (2)Plastic Containers >5 Litres (2)
Rationale, Rationale, continued …continued … some containers lost to disposal under some existing some containers lost to disposal under some existing
MRF configurationsMRF configurations >5 litre based on feedback from operators>5 litre based on feedback from operators AMO & Toronto discussing a ban or deposit on large AMO & Toronto discussing a ban or deposit on large
PET water containersPET water containers
Impact/challenges to stewardsImpact/challenges to stewards limited number of stewards & products affectedlimited number of stewards & products affected stewards may not be able to identify & report productstewards may not be able to identify & report product
by sizeby size
Slide Slide 7070
LDPE/HDPE Carry-Out Bags (1)LDPE/HDPE Carry-Out Bags (1)
Proposed additionsProposed additions LDPE/HDPE carry-out bags LDPE/HDPE carry-out bags optional field for bag unit countoptional field for bag unit count
Rationale for collecting this informationRationale for collecting this information Ontario Plastic Bag Task Force MOU with Minister to Ontario Plastic Bag Task Force MOU with Minister to
reduce single-use plastic bagsreduce single-use plastic bags Stewardship Ontario providing reporting & analysis for Stewardship Ontario providing reporting & analysis for
Task ForceTask Force
weight & bags/capita are being trackedweight & bags/capita are being tracked
continued…
Slide Slide 7171
LDPE/HDPE Carry-Out Bags (2)LDPE/HDPE Carry-Out Bags (2)
Rationale, Rationale, continued …continued … provides valuable & comparative information for the provides valuable & comparative information for the
Task Force Task Force
Impact/challenges to stewardsImpact/challenges to stewards large number of stewards have carry-out bagslarge number of stewards have carry-out bags retailers typically source bags from suppliers retailers typically source bags from suppliers
separately from other plastic film applicationsseparately from other plastic film applications many retailers currently split out plastic bags in their many retailers currently split out plastic bags in their
Steward’s ReportsSteward’s Reports
Slide Slide 7272
Additional Information from Stewards (1)Additional Information from Stewards (1)
Proposed additionProposed addition text box for steward to enter waste reduction text box for steward to enter waste reduction
initiativesinitiatives
Rationale for collecting this informationRationale for collecting this information allow stewards to provide information on what the allow stewards to provide information on what the
company is doing to:company is doing to: reduce packaging materialsreduce packaging materials
select easier to recycle materialsselect easier to recycle materials
utilize recycled contentutilize recycled content
continued…
Slide Slide 7373
Additional Information from Stewards (2)Additional Information from Stewards (2)
Rationale, Rationale, continued …continued … recommendation from Report to Minister: recommendation from Report to Minister:
Assessment of Stewards Actions in Response to Assessment of Stewards Actions in Response to Stewardship Ontario FeesStewardship Ontario Fees
monitor industry packaging & material trendsmonitor industry packaging & material trends support analysis of potential revisions to existing fee-support analysis of potential revisions to existing fee-
setting methodology if program costs increasesetting methodology if program costs increase
Impact/challenges to stewardsImpact/challenges to stewards steward choice to participate or notsteward choice to participate or not
Slide Slide 7474
Proposed New Material Reporting Sub-CategoriesProposed New Material Reporting Sub-Categories
PET bottles12.560 ¢/kg
PET bottles > 5 Litres
HDPE bottles & jugs11.406 ¢/kg
HDPE bottles & jugs > 5 Litres
Polystyrene
18.990 ¢/kg
for each of these materials
LDPE/HDPE film
LDPE/HDPE film carry-out bags*
Plastic laminant
Other rigid plastic
Other rigid plastic > 5 Litres
Biodegradable rigid plastic containers
Biodegradable plastic film
Natural & synthetic textiles
*Optional carry-out bags unit total*Optional carry-out bags unit total
Slide Slide 7575
Comment PeriodComment Period
Please review draft “Proposed Rules & New Please review draft “Proposed Rules & New Material Reporting Categories for 2009”Material Reporting Categories for 2009” comment on additionscomment on additions
Comments due September 26Comments due September 26 put “put “Proposed Rules & New Material Reporting Proposed Rules & New Material Reporting
CategoriesCategories” in subject field ” in subject field email to: email to: [email protected]@stewardshipontario.ca
Slide Slide 7777
Wrap-UpWrap-Up
Email questions/comments about presentation Email questions/comments about presentation content by Friday, September 26content by Friday, September 26 [email protected]@stewardshipontario.ca