Presenting Sponsor Progressing Extended Producer Responsibility in - - PowerPoint PPT Presentation

Presenting Sponsor

Presen&ng ¡Sponsor ¡

Progressing Extended Producer Responsibility in Ontario Moving Toward a Circular Economy A Focus on Ontario Developing Model EPR Legislation

Role of EPR in Waste Reduction Policy

Presen&ng ¡Sponsor ¡

Role of EPR in Waste Reduction Policy

Paul Evans Ministry of the Environment and Climate Change

Session ¡Sponsor ¡

Waste Diversion Act (2002)

• Waste diversion programs have been developed using the concept of “producer

responsibility” where the producer is responsible for paying program management costs

• These programs, such as the Blue Box, MHSW and electronics programs, divert over one

million tonnes annually and have surpassed their targets No new waste diversion programs have been established under Waste Diversion Act since 2009 Pharmaceuticals and Sharps Regulation established under Environmental Protection Act in 2012 Canadian Council of Ministers of the Environment (CCME) Canada-wide Action Plan-Extended Producer Responsibility agreed to in 2009:

• producer responsibility for the full life-cycle cost of their products
• shifting the financial and environmental burden for the end-of-life management of products

and packaging from taxpayers to producers

• improve life-cycle performance of products, including reducing greenhouse gas emissions.

Producer Responsibility in Practice in Ontario

Presen&ng ¡Sponsor ¡

Role of EPR in Waste Reduction Policy

Paul Evans Ministry of the Environment and Climate Change

Session ¡Sponsor ¡

Ontario’s producer responsibility programs under WDA cover 14.6%

• f waste generated:
• 12% Blue Box - residential
• 0.4 % MHSW – residential
• 1.2% used tire – mainly in IC&I
• 1% WEEE – mainly in IC&I

Waste Generated Sectoral Components

Presen&ng ¡Sponsor ¡

Role of EPR in Waste Reduction Policy

Paul Evans Ministry of the Environment and Climate Change

Session ¡Sponsor ¡

• Encourage producers to make products and packaging that are more durable or

reusable while using less packaging and fewer hazardous materials

• Reduce greenhouse gas emissions associated with manufacturing, distribution

and end-of-life- management to support Ontario’s emission targets

• Shift burden from taxpayers by requiring producers to be financially and

environmentally responsible for the end-of-life management of their products

• Ensure consumers have convenient, accessible and easy to use collection

locations

• Clearly defined outcomes for diversion/waste reduction and reporting on results
• Clearly defined roles/responsibilities of key players including producers,

municipalities, service providers with effective compliance/oversight

• Promote consumer awareness/education

Producer Responsibility in Waste Reduction

Presen&ng ¡Sponsor ¡

Role of EPR in Waste Reduction Policy

Rob Cook OWMA

Session ¡Sponsor ¡

• EPR is not the only policy solution
• Many policy approaches that can be used singularly or in

combination – bans, levies, generator regulations, EPR, etc.

• Use the right ‘policy tool’ to achieve the desired outcome in

the specific circumstance

• Square peg in a round hole?
• Focus on outcomes – reducing waste & generating greater

value from the waste stream The “Ideal Policy” for Waste Diversion

Presen&ng ¡Sponsor ¡ Session ¡Sponsor ¡

• Fix the issues with the EPR framework for the current

materials under WDA EPR programs

• Get the fundamentals (design) right and then analyse the
• ptimum approach (policy tool) for target waste streams
• Depends on additional factors – nature of the current activity

and infrastructure related to a material

• EPR doesn’t make sense layered over functioning diversion

systems and markets

• How do you impact the economics in the least intrusive way?

Waste Streams for EPR

Role of EPR in Waste Reduction Policy

Rob Cook OWMA

Presen&ng ¡Sponsor ¡

Role of EPR in Waste Reduction Policy

Rob Cook OWMA

Session ¡Sponsor ¡

• Other policy tools can help support EPR – if it is the right

approach in the circumstance

• EPR or other policy options need to manage:
• 1. Information/Oversight & Enforcement
• 2. Environmental Standards
• 3. Competition as the means to efficiency and

innovation

• Government may create a positive business environment to

reap the greatest economic value for Ontario from system

• utputs

Environmental & Economic Instruments

Presen&ng ¡Sponsor ¡ Session ¡Sponsor ¡

• EPR or other policy options need to manage:
• 1. Information/Oversight & Enforcement
• 2. Environmental Standards
• 3. Competition as the means to efficiency and innovation
• Examples:
• 3Rs regulations – no environmental standards,

information, enforcement - competition

• Excess soil management – no data, vague

environmental standards – lots of competition but no level playing field.

¡

Key Elements of Effective EPR Policy

Role of EPR in Waste Reduction Policy

Rob Cook OWMA

Presen&ng ¡Sponsor ¡ Session ¡Sponsor ¡

For more information contact: Rob Cook, CEO Rcook@owma.org

• r

Peter Hargreave, Director of Policy Phargreave@owma.org 905-791-9500 www.owma.org

Thank you

Role of EPR in Waste Reduction Policy

Rob Cook OWMA

Presen&ng ¡Sponsor ¡ Session ¡Sponsor ¡

When is EPR best? What waste streams is EPR best applied to? What other environmental and economic tools are needed to make EPR effective?

Role of EPR in Waste Reduction Policy

Monika Turner AMO

Presen&ng ¡Sponsor ¡ Session ¡Sponsor ¡

Expectations:

• Waste hierarchy; move decisions up
• True environmental and end-of-life costs for producer and consumers
• Increase diversion

Elements: (Not exhaustive list)

• Reliable, accessible + convenient services for residents
• Cost of doing business
• Clear definitions of roles + responsibilities
• Reasonable costs for municipal collection and processing activities
• Mechanisms for designated materials that go astray
• Recognition of integrated waste management system + municipal investments
• Enhanced services if municipal choses
• Assessment of recyclability or composability before they enter system
• Effective, neutral dispute resolution

Key EPR policy elements from municipal perspective

Role of EPR in Waste Reduction Policy

Monika Turner AMO

Presen&ng ¡Sponsor ¡

Progressing Extended Producer Responsibility in Ontario Moving Toward a Circular Economy A Focus on Ontario Developing Model EPR Legislation

Oversight and Compliance

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Effective Monitoring and Oversight

• f EPR Performance

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Overview

• Why is oversight critical
• Oversight objectives
• Getting the roles right
• Effective oversight

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Why Is Oversight Critical?

Producers act in their own self-interest

• Corporate objective to control costs – various strategies e.g.
• Remain non-compliant, hoping to avoid cost of compliance
• Under-report material supplied through creative interpretation of material

definitions, blurred differentiation between ICI and residential sales to reduce cost of compliance

• Report back-of-store IC&I as customer-returned material which reduces

net material supplied to reduce cost of compliance

• Switch between competing compliance schemes in an effort to obscure

data gaps to reduce cost of compliance Oversight is key to

• Ensure competing producers are not gaining an unfair advantage by non-

compliance or fraudulent means

• Ensure producer organizations have sufficient members and fee revenue to

deliver legislated objectives

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Why Is Oversight Critical?

Producer organizations act in their own self-interest

• Includes serving the interests of their producer members
• Will deliver compliance as service to their members
• If held accountable to do so
• Always motivated to control costs
• Critical issue for members, differentiator under competition
• Seek lower cost residential sources or count ICI as residential
• Under-report market share to reduce performance obligation and costs

Oversight is key to

• Ensure legislated outcomes i.e. services are delivered and environmental

performance is achieved

• Ensure producer organizations are not gaining an unfair advantage by non-

compliance or fraudulent means

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Why Is Oversight Critical?

Service providers act in their own self-interest

• Includes serving the interests of their customers
• Producers and producer organizations
• By managing material to achieve customer’s performance obligation at lowest

cost

• Critical issue for customers, differentiator between competing service

providers

• Seek lower cost residential sources or count ICI as residential
• Over-report material collected and recycled

Oversight is key to

• Ensure producer organizations are not gaining an unfair advantage through non-

compliance or fraudulent behaviour on the part of their service provider

• Ensure legislated outcomes i.e. services are delivered and environmental

performance is achieved

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Oversight Objectives

Deliver legislated objectives

• Producers compliant and accurately reporting quantity of obligated material supplied

to the marketplace

• Regulated services are delivered
• Environmental outcomes are achieved

Ensure fairness

• Between competing producers
• Between competing producer organizations
• Between competing service providers

To achieve these objectives

• Must have sufficient technically qualified human resources, suite of compliance tools

and enforcement powers

• Must not be subject to government budget restraint
• Must be isolated from politics and political pressure
• Which means - oversight must be separated from government

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Getting the Roles Right

Regulator

• Establish policy objectives
• Develop legislation to achieve policy objectives
• Delegate responsibility to administer and enforce statute

Oversight authority

• Responsible for administering and enforcing statute
• Operate at arm’s length from government

Regulated parties

• Producers
• Producer organizations
• Service providers

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Oversight Authority

Can be established as

• Delegated Administrative Authority - Lieutenant-

Governor-In-Council able to delegate powers and duties to administer specific statutes

• Statutory Authority - role and objectives are set out in

the originating act Both types of authorities are used to oversee and enforce provincial statutes regulating specific activities

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Oversight Authority

Operate at arm’s length from government Designated by statute with accountability to government and Ontario citizens Dedicated to ensuring compliance with the legislation and regulations Responsible for registering and/or licensing the regulated sector Operate as a non-profit on a cost-recovery basis

• By charging fees for registering/licensing the regulated sector
• In the case of EPR - producers, producer organizations, service

providers

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Oversight Functions

Carry out compliance and enforcement activities Discipline any misconduct of registrants and licensees Handle consumer complaints Manage its financial and operational affairs in accordance with its administrative agreement

• Governance accountability roles and requirements, board charter, code
• f conduct, composition requirements
• Operational roles and requirements
• Financing including setting fees for registering/licensing
• Reporting to government and Ontario citizens

Presen&ng ¡Sponsor ¡

Oversight and Compliance

Glenda Gies Glenda Gies and Associates

Oversight Governance

Governed by a board of directors with skills necessary to meet its mandate

• Criteria set out in administrative agreement
• Should avoid real or perceived conflict - registrants/licensees should

not be Directors

• Could include specified number of independent Directors
• Could include specified number of Directors with professional

credentials/experience

• Minority of Directors appointed by the Minister
• Majority of Directors nominated and elected
• Number of approaches used for nominating and electing
• By registrants/licensees
• Could compromise authority’s independence and

credibility

• By the Directors themselves
• May better protect authority’s independence and

reputation

Presen&ng ¡Sponsor ¡

Progressing Extended Producer Responsibility in Ontario Moving Toward a Circular Economy A Focus on Ontario Developing Model EPR Legislation

Producer Performance Setting and Monitoring Compliance

Presen&ng ¡Sponsor ¡

Performance Measurement in EPR Programs

Rick Findlay RFCL Innovations February 6, 2015

Producer Performance Setting and Monitoring Compliance

Presen&ng ¡Sponsor ¡

Questions for this session

• 1. What should be the process to set performance

requirements?

• 2. What performance measurements should be set and

who monitors it?

• 3. Who should collect, manage, and own the data that

supports monitoring performance?

• 4. What should be the requirements of non-conformance /

non-compliance?

Producer Performance Setting and Monitoring Compliance Rick Findlay RFCL Innovations

Presen&ng ¡Sponsor ¡

Benefits of Performance Management (PM)

Ø Determine how well areas are performing Ø Answering did you meet your objectives Ø Provides a clear understanding of what everyone should be aiming for Ø A good PM system will let you examine what and how you can change performance levels.

Producer Performance Setting and Monitoring Compliance Rick Findlay RFCL Innovations

Presen&ng ¡Sponsor ¡

Performance Management Process

• 1. ¡Determine ¡

Objec&ves ¡

• 2. ¡Iden&fy ¡metrics ¡
• 3. ¡Set ¡Targets ¡

(SMART) ¡

• 4. ¡Measure ¡

Outcomes ¡& ¡KPIs ¡

• 5. ¡Report ¡on ¡

Outcomes ¡and ¡ Achieving ¡ Objec&ves ¡

• 6. ¡Review ¡& ¡

Improve ¡System ¡

Producer Performance Setting and Monitoring Compliance Rick Findlay RFCL Innovations

Presen&ng ¡Sponsor ¡

Performance Measurements

1. Clarify the objectives. Ø Total program vs management / operations Ø EPR has conflicting objectives - diversion, cost, transparency, others

• 2. Identify Key Performance Indicators (KPI)

Ø Multiple metrics for programs and operations

• Rates – diversion, recycling, collection
• Cost – total, by material, by unit of measure
• Weight/volume/unit – understanding cost drivers

changing from weight to a mix

• Function definition – in some areas such as

electronics

• Awareness vs participation – driving action
• 3. Think about a Balanced Scorecard approach

¡

Not everything that counts can be counted, and not everything that gets counted counts. Albert Einstein

• 1. ¡Determine ¡

Objec&ves ¡

• 2. ¡Iden&fy ¡

metrics ¡

• 3. ¡Set ¡Targets ¡

(SMART) ¡

• 4. ¡Measure ¡

Outcomes ¡& ¡ KPIs ¡

• 5. ¡Report ¡on ¡

Outcomes ¡and ¡ Achieving ¡ Objec&ves ¡

• 6. ¡Review ¡& ¡

Improve ¡ System ¡

Producer Performance Setting and Monitoring Compliance Rick Findlay RFCL Innovations

Presen&ng ¡Sponsor ¡

Targets

• They provide direction – key for strategies

and budgets

• SMART – Specific, Measureable,

Attainable, Relevant, Timed

• Learn from others and past – talk to

stakeholders

• Must be progressive

¡

• 1. ¡Determine ¡

Objec&ves ¡

• 2. ¡Iden&fy ¡metrics ¡
• 3. ¡Set ¡Targets ¡

(SMART) ¡

• 4. ¡Measure ¡

Outcomes ¡& ¡KPIs ¡

• 5. ¡Report ¡on ¡

Outcomes ¡and ¡ Achieving ¡Objec&ves ¡

• 6. ¡Review ¡& ¡Improve ¡

System ¡

The greater danger for most of us isn’t that our aim is too high and miss it, but that it is too low and we reach it. Michelangelo

Producer Performance Setting and Monitoring Compliance Rick Findlay RFCL Innovations

Presen&ng ¡Sponsor ¡

Who Monitors?

¡

• It needs objectivity, capacity, capability, tools

(including authority)

• Governments in Canada and in Ontario are not

putting the resources into monitoring and oversight

• in many different programs.
• There will always be those who want the taxpayer

to pay and those that want the consumer to pay.

• Ontario has long used other mechanisms such as

the Delegated Administration Authorities – eight DAAs, WDO is similar structure

• Create a DAA, using the WDO as a basis, with the

required changes.

¡

• 1. ¡Determine ¡

Objec&ves ¡

• 2. ¡Iden&fy ¡metrics ¡
• 3. ¡Set ¡Targets ¡

(SMART) ¡

• 4. ¡Measure ¡

Outcomes ¡& ¡KPIs ¡

• 5. ¡Report ¡on ¡

Outcomes ¡and ¡ Achieving ¡Objec&ves ¡

• 6. ¡Review ¡& ¡Improve ¡

System ¡

Producer Performance Setting and Monitoring Compliance Rick Findlay RFCL Innovations

Presen&ng ¡Sponsor ¡

Who Collects, Manages, Owns Data?

• Performance management more than receiving data and

doing a report. It requires understanding of what is going on.

• This is linked with effective compliance and enforcement.
• Break up and define the data (different levels).
• Various parties own the original data.
• Data (along with assurances of accuracy) should be

collected, analyzed and reported by the monitoring

• rganization.
• Cost efficiency requires ease of access, collection of

accurate data, and risk-based auditing.

• 1. ¡Determine ¡

Objec&ves ¡

• 2. ¡Iden&fy ¡metrics ¡
• 3. ¡Set ¡Targets ¡

(SMART) ¡

• 4. ¡Measure ¡

Outcomes ¡& ¡KPIs ¡

• 5. ¡Report ¡on ¡

Outcomes ¡and ¡ Achieving ¡ Objec&ves ¡

• 6. ¡Review ¡& ¡

Improve ¡System ¡

Producer Performance Setting and Monitoring Compliance Rick Findlay RFCL Innovations

Presen&ng ¡Sponsor ¡

We Have to Do Better

• We have learned – the performance management

system needs improvement.

• There are a number of specific areas for

improvement, e.g., Province’s total diversion rate, absolute weight metric.

• But we do know there are some areas where a good

job is being done, given the challenges.

• We can and have to do better.

¡

• 1. ¡Determine ¡

Objec&ves ¡

• 2. ¡Iden&fy ¡

metrics ¡

• 3. ¡Set ¡Targets ¡

(SMART) ¡

• 4. ¡Measure ¡

Outcomes ¡& ¡KPIs ¡

• 5. ¡Report ¡on ¡

Outcomes ¡and ¡ Achieving ¡ Objec&ves ¡

• 6. ¡Review ¡& ¡

Improve ¡System ¡

What gets measured gets done. Peter Drucker

Producer Performance Setting and Monitoring Compliance Rick Findlay RFCL Innovations

Presen&ng ¡Sponsor ¡

Progressing Extended Producer Responsibility in Ontario Moving Toward a Circular Economy A Focus on Ontario Developing Model EPR Legislation

Canadian Competition Bureau

Catherine Hariton Competition Law Officer, Economic Policy and Enforcement Branch catherine.hariton@cb-bc.gc.ca

Presen&ng ¡Sponsor ¡

Progressing Extended Producer Responsibility in Ontario Moving Toward a Circular Economy A Focus on Ontario Developing Model EPR Legislation

Competition for Producers

Presen&ng ¡Sponsor ¡

Agenda

Natural Progression of Product Stewardship Choice and Competition Competition in the System Competition and Fairness Who is Responsible for What? Takeaways

Competition for Producers Ken Friesen StewardChoice

Presen&ng ¡Sponsor ¡

Natural Progression of Product Stewardship

Public policy objectives placing more requirements on producers Many producers disgruntled by “default” monopolies Individual Producer Responsibility (IPR) model already tabled by ON Government StewardChoice established to serve producers

Competition for Producers Ken Friesen StewardChoice

Presen&ng ¡Sponsor ¡

Choice and Competition

Choice for Producers to:

• Form collectives
• Work individually to comply with regulations
• Contract with a compliance agency to meet its obligations under

the law Choice for Service Providers:

• Ongoing competition at service provider level

Choice for Municipalities:

• Municipalities closest to the end-user

Requirements:

• Outcomes based requirements
• Clearly established process for setting targets
• Clear responsibility for government to enforce consequences for

non-compliance

Competition for Producers Ken Friesen StewardChoice

Presen&ng ¡Sponsor ¡

Competition in the System

Competition needed at the:

• Producer Level - ensures no monopolies
• Service Provider Level - ensures no monopsonies

Competition results in:

• Reduced costs to the producer and consumer
• Service Providers compete on value
• Innovation at the Service Provider Level

Competition for Producers Ken Friesen StewardChoice

Presen&ng ¡Sponsor ¡

Competition and Fairness

Competitive Compliance Agencies:

• Reduce free-riders
• Exist in both competitive and monopoly systems
• Under a competitive model, competing agencies have

incentive to identify free riders

• Establish transparent customer lists
• All compliance agencies must meet base performance

standards Government Focus for Levelling Playing Field:

• Establish clear definitions of a producer and their obligated

products

• Enforce non-compliance

Competition for Producers Ken Friesen StewardChoice

Presen&ng ¡Sponsor ¡

Who Is Responsible for What?

Government responsibility:

• Enforce law
• Ensure environmental standards are met
• Set overall objectives and monitor performance
• Let producers innovate

Producer responsibility:

• Choose how to meet regulations
• Achieve agreed objectives
• Report producer and recovery data to government or

designate

• Matters between producer and compliance agency are B2B

and business laws take effect

Competition for Producers Ken Friesen StewardChoice

Presen&ng ¡Sponsor ¡

Takeaways

Competition: ü Natural progression in an open market ü Works at the compliance agency level ü Results in lower costs and improved service to producers and consumers ü Choice for producers In order for this to happen: Competition must be permitted at the compliance level

Competition for Producers Ken Friesen StewardChoice

Presen&ng ¡Sponsor ¡

Progressing Extended Producer Responsibility in Ontario Moving Toward a Circular Economy A Focus on Ontario Developing Model EPR Legislation

Competition for Producers

Presen&ng ¡Sponsor ¡

Progressing EPR in Ontario Competition for Producers

• Feb. 6, 2015

Mark Kurschner President Product Care Association mark@productcare.org 778 331 6969

Competition for Producers Mark Kurschner Product Care Association

Presen&ng ¡Sponsor ¡

PCA programs in Canada: Paint only: SK, NB, NS, NL, PEI, ON (2015) Paint/HHW: BC, MB Lamps: BC, MB, QC, PEI (2015), ON (2015) Smoke and CO Alarms: BC Managed programs in Canada: BC Small Appliances (CESA) Outdoor Power Equipment (OPEIC) Major Appliance Recycling Roundtable (MARR) US programs:

• Mattress Recycling Council (CT, RI, CA)
• WA LightRecycle

Competition for Producers Mark Kurschner Product Care Association

Current PCA Programs

Presen&ng ¡Sponsor ¡

Context in which PCA operates

• Statute or regulation
• Designates product
• Identifies obligated party in supply chain (steward)
• requires steward to participate in approved program

Competition for Producers Mark Kurschner Product Care Association

Presen&ng ¡Sponsor ¡

Context in which PCA operates

Regulatory model variations

• Default option – requiring takeback, advertising etc
• Limits to fee visibility
• Establishes oversight body (fees)
• Mandated targets/penalties

Competition for Producers Mark Kurschner Product Care Association

Presen&ng ¡Sponsor ¡

Competition for Producers BC Experience

• Lead acid batteries
• Paint aerosols
• Electronics
• Paper packaging
• Lamps

Competition for Producers Mark Kurschner Product Care Association

Ontario Experience

• Paint ISP

Presen&ng ¡Sponsor ¡

Competition for Producers Policy Approach

Overall Program purpose:

• Environmentally effective
• Economically efficient

Can this be best achieved in a single provincial program? Can this be better achieved with multiple competitive programs? Is a multiple competitive program environment more or less efficient, more or less effective? ¡ ¡ ¡

Competition for Producers Mark Kurschner Product Care Association

Presen&ng ¡Sponsor ¡

Single Program Approach

• Not for profit structure – focus on performance and efficiency, not

profit

• Economies of scale
• Negative value materials
• Full responsibility for entire jurisdiction
• Competition occurs in program delivery – selection by RFP,

bounty models etc

• Program’s self interest to have multiple, competent, healthy

service providers

• Fee approval required if only one program permitted?

Competition for Producers Mark Kurschner Product Care Association

Presen&ng ¡Sponsor ¡

Challenges of Competitive Programs

• Consumer confusion already exists between programs of

different products

• Collection system overlaps – inefficient
• Collection system gaps, especially in remote communities
• May not be advantageous in smaller jurisdictions
• Reduces incentive for program performance
• Cost competition between programs v social purpose of

programs

Competition for Producers Mark Kurschner Product Care Association

Presen&ng ¡Sponsor ¡

Progressing Extended Producer Responsibility in Ontario Moving Toward a Circular Economy A Focus on Ontario Developing Model EPR Legislation

Competition for Service Providers

Presen&ng ¡Sponsor ¡

Raw Materials Company

Competition for Service Providers James Ewles Raw Materials Company

ESTABLISHED 1985 PORT COLBORNE, ONTARIO ISO 14001 Standard since 2000 Leading processor of specific waste streams including:

• batteries
• mercury
• lead bearing wastes
• ferrous and non-ferrous scrap metal
• electronics

RMC has enough processing capacity to recycle all the batteries sold in Canada annually

Presen&ng ¡Sponsor ¡

How do we ensure a fair and competitive structure for service providers?

Competition for Service Providers James Ewles Raw Materials Company

PROGRESSIVE RECYCLING TARGETS

• Producers that have to meet progressive recycling targets

have an incentive to collect more material and engage collection and recycling markets

• Low or no targets or unenforced targets gives an incentive

for producers to limit collections and market interaction to lower cost

Presen&ng ¡Sponsor ¡

How do we ensure a fair and competitive structure for service providers?

Competition for Service Providers James Ewles Raw Materials Company

PRODUCER ORGANIZATIONS FOCUSED ON HIGH RECOVERY RATES USE OPEN INCENTIVE BASED SYSTEMS

• Anyone meeting standards and reporting requirements can participate
• Used oil filters (Alberta) – 92% recovery using an open collection

incentive

• Used tires (Ontario) - >95% recovery using open collection,

transportation and processing incentives

• Single-use batteries (Ontario) 2015 projected ~25% recovery with >30%

quarter-over-quarter growth using transport and recycling incentives

Presen&ng ¡Sponsor ¡

How do we ensure a fair and competitive structure for service providers?

Competition for Service Providers James Ewles Raw Materials Company

GOVERNMENTS SHOULD NOT CREATE, SANCTION OR PROMOTE PRODUCER MONOPOLIES

• Producer collective action should be allowed but remain subject to

Competition Act

Presen&ng ¡Sponsor ¡

Who should define service standards and how should they be monitored?

Competition for Service Providers James Ewles Raw Materials Company

RECYCLING STANDARDS - Definition of recycling, collection target, recycling target and geographic coverage set by Government

• When standards are set by Stewards, they are economically motivated to choose

the lowest cost option as opposed to the best environmental performance.

• Low recycling or unenforced recycling standards result in less investment and

R&D by recyclers and encourage a race to the bottom.

• To achieve a recycling rate greater than 50% an effective, enforced

environmental standard is required that supports continuous improvement and provides sufficient incentive for producers to engage recyclers to provide newer and better recycling technology

Presen&ng ¡Sponsor ¡

Who should define service standards and how should they be monitored?

Competition for Service Providers James Ewles Raw Materials Company

¡

RECYCLING STANDARDS - Government enforcement (itself or through an oversight authority) Producers may have their own additional protocols and requirements to ensure government standards are met ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡

¡

¡

Presen&ng ¡Sponsor ¡

Whose role is it to oversee producers and producer organizations treatment of the marketplace?

Competition for Service Providers James Ewles Raw Materials Company

Ministry of Environment should oversee producer compliance with recycling standards and targets Competition Bureau should oversee Competition related issues in both producer and service provider/recycler markets

• Any new Ontario EPR law should make it clear that Competition Act

applies to all EPR related activities in Ontario

Presen&ng ¡Sponsor ¡

Service Supply Chain

How do we ensure a fair and competitive structure for service providers? What is the current structure? Who are the service providers? Where does fair and competitive fit in?

Competition for Service Providers Albino Metauro Green By Nature EPR

Presen&ng ¡Sponsor ¡

Current Bottom Up Design

Competition for Service Providers Albino Metauro Green By Nature EPR

CONSUMER ¡ & ¡ BRAND ¡ OWNER ¡

Presen&ng ¡Sponsor ¡

Treatment of the Marketplace

Whose role is it to oversee producers and producer

• rganizations’ treatment of the marketplace?

Is the marketplace the ‘supply chain’? What is the desired treatment ? Who created the need for overseeing?

Competition for Service Providers Albino Metauro Green By Nature EPR

Presen&ng ¡Sponsor ¡

Are we designing packaging for the “supply chain” or designing the “supply chain” for the packaging?

Competition for Service Providers Albino Metauro Green By Nature EPR

Presen&ng ¡Sponsor ¡

Service Standards

Who should define service standards and how should they be monitored? Who owns the responsibility? What are the obligations? Who is paying for the service?

Competition for Service Providers Albino Metauro Green By Nature EPR

Presen&ng ¡Sponsor ¡

Top Down System

Competition for Service Providers Albino Metauro Green By Nature EPR

Presen&ng ¡Sponsor ¡

EPR – Every Package Recycled

BC and Ontario are not the same

• each will drive costs accordingly

There must be a clear understanding of the goal

• regulation to reflect the desire

There must be one set of rules

• level playing field

Accountability – One Outcome

• transparency & mandatory reporting

Competition for Service Providers Albino Metauro Green By Nature EPR

Progressing Extended Producer Responsibility in Ontario Moving Toward a Circular Economy A Focus on Ontario Developing Model EPR Legislation

Managing Change

Presen&ng ¡Sponsor ¡

Presen&ng ¡Sponsor ¡

Managing Change

Rob Cook OWMA

Session ¡Sponsor ¡

• YES – absolute necessity.
• All parties recognize shortcomings and inadequacies of current framework

and programs

• Getting the right legislative framework is key.
• Individual Producer Responsibility
• Blue Box – more complicated – other programs easier

Should Existing Programs be Transitioned Under New Legislation?

Presen&ng ¡Sponsor ¡ Session ¡Sponsor ¡

• Seamless to program users (all)
• No reduction in diversion objective but recognize potential short term

challenges

• Elements such as oversight, enforcement, standards etc. are in

place at time of transition

• Roles & responsibilities are clarified
• All stakeholders in existing programs must be engaged in transition

planning and trouble shooting

• Resolute political will to effect transitions

¡

Transition Concerns

Managing Change

Rob Cook OWMA

Presen&ng ¡Sponsor ¡ Session ¡Sponsor ¡

• WEEE & MHSW – most problematic
• Tires
• Blue Box – most complex

Transition Timelines

Managing Change

Rob Cook OWMA

Presen&ng ¡Sponsor ¡ Session ¡Sponsor ¡

For more information contact: Rob Cook, CEO Rcook@owma.org

• r

Peter Hargreave, Director of Policy Phargreave@owma.org 905-791-9500 www.owma.org

Thank you

Managing Change

Rob Cook OWMA

Presen&ng ¡Sponsor ¡

Managing Change

Monika Turner AMO

Session ¡Sponsor ¡

• 2013 MOE Waste Reduction Strategy as base
• 2013/14 Blue Box table convened by Minister Bradley
• In process of organizing municipal sector
• Expectation of coming together soon to find common ground to inform

legislation

• Expectation of facilitated discussions to craft new Blue Box program plan

before it takes effect - post legislation

• Transition considerations
• Increasing diversion rate
• Full cost accounting
• Clarification of roles and responsibilities
• Changing composition of materials
• Compliance, enforcement, and oversight
• Program harmonization (common basket of materials and service levels)
• In-kind payments
• Creation of a centralized municipal waste entity given fragmentation

Presenting Sponsor