Dear Collectors,

As you are aware OTS (Ontario Tire Stewardship) has been consulting since the summer of 2013 on proposed changes to reduce program costs, improve efficiencies, reduce administrative burden on stakeholders and ensure a fair and competitive market for used tires diversion in Ontario. In particular OTS has been consulting with Collectors on the proposed shift in the payment of the Collection Allowance (CA) to the Processor, effective July 1, 2014.

During the consultation process OTS has become aware of concerns raised by Collectors regarding the potential for non-payment of the CA by Processors. Through further investigations OTS has come to understand that these concerns are being driven by communications from Processors indicating that they intend to withhold CA payments from Collectors. As a result OTS has determined that a deferral in any changes to the CA payment process or rate is appropriate while we assess additional options to streamline this process and reduce program costs.

OTS is committed to ensuring that no-charge used tire pick-up continues across the entire province and to ensuring Ontario’s used tires are being responsibly recycled. In order to do this it is imperative that OTS has a complete picture of the generation and movement of used tires throughout the province. Full and timely Collector reporting of used tires collected, culled for reuse, sold or delivered to Haulers is critical to OTS’ ability to effectively manage the program, and ensure the diversion and market objectives of the program are being met.

Effective July 1, 2014 OTS will be requiring all Collectors to report used tire volumes to OTS, as required under the “Responsibilities of the Collector” section of the Collector Agreement (section 3.1(b) in the current Agreement, 2.1(b) in the revised Agreements effective May 5th 2014,) by fully and accurately completing quarterly Collector Claims filings as outlined in the Collector Guidebook. OTS will be communicating further with Collectors in the coming months regarding the specifics of this obligation and the processes for submitting the required reports, and will host a series of refresher webinars for Collectors looking to “brush-up” on the mechanics of reporting.

OTS will continue to work closely with all program stakeholders, and looks forward to collaborating to ensure the Used Tires Program (UTP) remains competitive, efficient and cost-effective. Should you have any questions or wish to discuss the UTP further please do not hesitate to contact OTS at info@rethinktires.ca or 888-OTS-2202.

Regards,
The OTS Team