OTS News Issue 26 – September 2013

Executive Director’s Message

On June 6th the Ontario Government introduced the Waste Reduction Act (WRA), which if passed, would result in significant changes to the waste diversion policy framework in the province. The Act would make individual companies (called “Producers” in the Act) responsible for figuring out how to meet diversion targets set by the Government. Producers would be free to choose to go it alone, working directly with service providers to collect, transport and recycle their designated products, or to join a group of other Producers in an entity called an “Intermediary”.

In addition, Waste Diversion Ontario (WDO) would be transformed into the Waste Reduction Authority, a non-crown organization with delegated regulatory powers. The Authority would be responsible for ensuring Producer compliance and achievement of targets, as well as overseeing negotiations and compensation setting between Municipalities and Producers. The Board of the Authority would continue to be skills-based, and at least initially would be composed of the same members as the current WDO Board.

What does this mean for the Used Tires Program (UTP)? At this point, very little. The WRA is far from passed, and should that occur, the Waste Reduction Strategy released by the Government does not contemplate transitioning the current program to the new policy model for some years. Ontario Tire Stewardship (OTS) will continue to focus on making the UTP the most successful and efficient stewardship program in North America, and is currently in the midst of consultations on some significant program enhancements to deliver these commitments.

Looking further out, the introduction of the WRA by the Government does factor into OTS’s decision-making. The prospect of transitioning the program requires OTS to revisit the timelines for addressing program financial matters, and to develop plans to allow the organization to make this shift with as little disruption to the market as possible. For our stakeholders this transition may mean a return to a free-market system, where competition for customers and a drive to reduce costs present a very different situation from the present one. This new reality could present some significant opportunities for Producers and stakeholders alike, but it is different and will require a different way of thinking about roles and responsibilities.

OTS will continue to monitor developments in the policy and legislative front and will engage stakeholders as there is more certainty around what the next steps will be regarding the WRA. In the meantime we continue to value your input and support as we work to deliver the best stewardship program on the continent.

Andrew Horsman
Executive Director, Ontario Tire Stewardship

Q&A: Waste Reduction Act and UTP Incentive Changes

Q: What is the proposed Waste Reduction Act?

On June 6, 2013, Ontario’s Minister of the Environment introduced Bill 91, the proposed Waste Reduction Act (WRA), which outlines significant changes to the current waste diversion approach in Ontario. The WRA and the accompanying Waste Reduction Strategy paper outline a future state where individual Producers of products are responsible for arranging the diversion of the wastes resulting from their products.

Q: What is the potential impact on OTS?

Since the proposed WRA was announced, OTS has been communicating with the Government, Waste Diversion Ontario and the Stewards to evaluate the potential impact this legislation, if passed, could have on the program. As more information becomes available, we will continue to do our best to keep you apprised of the status. During this period, OTS will continue to focus on our normal course of business, continue to work with Collectors, Haulers, Processors and Recycled Product Manufacturers and process claims as usual. Further information regarding Bill 91, Waste Reduction Act, 2013 can be found here.

Q: What are the proposed incentive changes to the Used Tires Program?

As part of the continued evolution of the Used Tires Program (UTP), and based on the necessity for OTS to deliver the program as efficiently as possible, OTS is looking to implement a series of changes to the existing incentive rates and programs to improve overall system efficiency, support a fair and competitive market, ensure the ongoing financial stability of OTS and continue to deliver diversion results which exceed all objectives.

These proposed changes include:

    • Collection Allowance – OTS is proposing to shift the payment of the Collection Allowance (CA) to the Processor as part of their Processing Incentive (PI) effective July 1, 2014.
    • Transportation Incentives – OTS is proposing to shift the Transportation Incentive (TI) program from one where credits are earned based on location of pick-up to one based solely per tonne of tires delivered effective January 1, 2014. Payment of TI would be shifted to the Processor as part of PI effective July 1, 2015.
    • Processing Incentives – On January 1, 2014 OTS will be reducing Processing Incentive (PI) rates by 10%. Effective July 1, 2014 OTS is proposing to reduce PI rates by a further 15% and reduce OTR tire PI rate PI rate premium to 15% (vs. current 25%). On July 1, 2015 OTS is proposing to reduce PI rates an additional 15% and the OTR PI premium reduced to 10%.
    • Manufacturing Incentives – OTS is proposing to reduce the Manufacturing Incentive (MI) on July 1, 2014 by 60%, and then another additional 38% on July 1, 2015.

 

Q: There has been no mention of the incentive rate changes from the government in Bill 91, therefore who is driving these recently proposed changes?

Incentive rate changes are part of the continued evolution of the Used Tires Program (UTP) and one tool OTS has to ensure a sustainable and rationally competitive tire recycling market. The introduction of the Act is not the driving force behind these incentive rate changes, though OTS is reviewing the timelines for implementing them in light of the potential implications of the Act. The changes that are being proposed are not being driven by the government or the WRA.

For more information on the proposed incentive changes to the Used Tires Program, click here to read a presentation and Q&A from the OTS Incentive Consultation Session held on July 10.

Waste Diversion: A Snapshot

According to a new Statistics Canada report, the waste management sector continues to be big business, employing some 32,000 Canadians in the sector, both public and private.

The 2010 Waste Management Industry Survey: Business and Government Sectors report surveyed 1,353 Canadian businesses and local governments operating in various waste management capacities, including public waste management bodies, local governments, private sector waste management firms and public waste disposal facilities.

While the report is a snapshot of waste diversion from 2008 to 2010, it sheds useful insights on the role and performance of government and businesses in waste diversion. Highlights include:

      • Nationally, the amount of non-hazardous waste sent to private and public waste disposal facilities decreased 4% from 2008 to approximately 25 million tonnes in 2010
      • Quebec and Alberta saw the greatest declines in waste disposal, whereas Newfoundland and Labrador, Nova Scotia and Saskatchewan had the greatest increases
      • Residential waste accounted for 37% of the total waste disposed in 2010
      • The amount of waste diverted to recycling or organic processing facilities decreased by 3% from 2008 to 8.1 million tonnes in 2010. This decrease―the first since 2002―was fueled by an 11% decrease in non-residential waste diversion
        • Residential waste diversion increased by 5%
        • The largest increase in diversion was for electronic materials at 60%
        • There was a 4% decrease in the number of tires diverted in 2010 from 2008
      • Operating revenues for local governments from the provision of waste management services reached $2.3 billion in 2010. Current expenditures increased 12% from 2008, totalling $2.9 billion (or approx. $86 per person) in 2010
        • Collection and transportation costs represent the largest portion of the current expenditures at $1.2 billion, followed by the operation of disposal/processing facilities ($517 million), and tipping fees ($425 million)

 

To read a full summary of the Waste Management Industry Survey, click here.

CAA RecycleDrive – It’s Back!

CAA RecycleDrive Banner

CAA South Central Ontario (CAA SCO) and OTS have teamed up once again for the third annual RecycleDrive. The collection event, which takes place between October 15 and 31, encourages Ontarians to drop off their old batteries, oil and tires at any participating Auto Approved Repair Facility (AARS) to be properly recycled free of charge.

The goal of the partnership is to raise awareness about auto-recycling options, OTS’ Used Tires Program and eco-friendly recycled tire products. The partnership has three big wins: a win for the environment, a win for the economy and a win for the community!

Similar to last year, the AARS garage that collects the most tires can win a Sustainable Revitalization Package to be designated towards a local community school. Through CAA SCO and OTS, the $20,000 package includes a variety of landscaping greenery and innovative recycled tire products to help refresh or re-green a school’s indoor or outdoor play area. Car Medics in Kingston was the winning AARS garage last year; we’re excited to see who will collect the highest number of tires this year!

Help spread the word about the CAA RecycleDrive and encourage your community to participate. The first 50 recyclers at each AARS garage will also receive a free pack of yard waste bags!

To learn more about the 2013 RecycleDrive and to see a list of participating AARS garages, visit www.caasco.com/recycle.


Estimated Deliveries to Ontario Processors (kg)

September 2013 Dashboard




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