Dear Stewards,
On January 28th, 2013, the Government of Ontario passed a Regulation that requires OTS to implement a cost-recovery based funding model for the Ontario Used Tires Program. The amended Regulation 84/03 requires OTS to calculate Tire Stewardship Fees (TSFs) based on the prior year’s actual program costs, and to undertake an annual end-of-year reconciliation of actual program expenses and revenues. The Regulation is posted on the OTS website and can be accessed here: OTS Cost Recovery Regulation (pdf).
The Regulation, along with the new Reporting and Remittance requirements and the new TSFs, will both come into effect on April 1st, 2013.
While different from the approach that OTS has been employing to date in calculating the TSFs, the methodology contained in the Regulation represents an important step towards financial sustainability for the Used Tires Program, and the continued successful diversion of used tires at rates that exceed all program objectives.
In addition to the revised calculation methodology, OTS has made changes to the way Stewards will report and remit fees on the supply of new tires into Ontario. Under the current systems, Stewards classify tires based on rim diameter and use; under the revised reporting system Stewards will classify tires based on weight. This will ensure continued equitable allocation of program costs among tires and Stewards.
To support Stewards in converting to this new system, OTS has posted three documents that Stewards will need:
OTS understands that these are some significant changes, and that Stewards may have questions on the process and logic behind the changes. OTS will be scheduling webinars for Stewards in February, watch your inboxes for the invitations. In the meantime, don’t hesitate to contact us at info@RethinkTires.ca with any questions you may have.
