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Internal Workings of Existing TPO’sInternal Workings of Existing TPO’s

Product Care:Product Care:

““Creating a national programCreating a national program --- ---

one province at a time”one province at a time”

Mark Kurschner – Product Care AssociationMark Kurschner – Product Care Association

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About Product Care AssociationAbout Product Care Association

Overview:Overview: Certain provinces have regulations Certain provinces have regulations

requiring “producers” of “designated requiring “producers” of “designated materials” to have a consumer take back materials” to have a consumer take back systemsystem

PCA is an association of producersPCA is an association of producers Producers (or sometimes retailers) pay Producers (or sometimes retailers) pay

PCA feesPCA fees PCA manages paint and HHW PCA manages paint and HHW

stewardship programsstewardship programs

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About Product Care About Product Care AssociationAssociation

Multi materialMulti material Multi provincialMulti provincial

British Columbia – paint (1994), flammables, British Columbia – paint (1994), flammables, pesticides and gasoline (1997)pesticides and gasoline (1997)

Nova Scotia: paint (2002)Nova Scotia: paint (2002) Saskatchewan paint (2006) Saskatchewan paint (2006) more provinces in developmentmore provinces in development

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About Product Care About Product Care AssociationAssociation

not-for-profitnot-for-profit >100 Industry members>100 Industry members Membership divided into sectors by Membership divided into sectors by

material typematerial type Board of 10 members, industry Board of 10 members, industry

only, sector appointedonly, sector appointed

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Total Paint

Driveway sealer

Adhesive

Fuel

Filler (misc)

Antifreeze

Pesticides*

Acids*

Bases*

Oxidizers*

Ontario HSW composition (adapted from AMRC 2001 WDO report)

Paint

Paint is the predominant material in the Household Special Waste group (excluding oil, batteries)

What is HSW?

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How the program How the program worksworks

BC ProgramBC Program admin./financeadmin./finance collection collection transportationtransportation processingprocessing recycling/disposalrecycling/disposal communicationscommunications

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BC ProgramBC Program admin./financeadmin./finance collection collection transportationtransportation processingprocessing recycling/disposalrecycling/disposal communicationscommunications

• Members are manufacturers, major retailers (brand owners and first importers)

• Members report sales to PCA and pay eco fees based on material and container size (e.g $0.40 for gallon of paint)

• Members are subject to audit

• Risk management is managed through insurance, reserve funds and good operating practices

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BC ProgramBC Program admin./financeadmin./finance collection collection transportationtransportation processingprocessing recycling/recycling/

disposaldisposal communicationscommunications

•depot system – 120 locations, mixture of contracted municipal, non-profit and private sites. •Program supplies collection bins. •Paint exchange program.

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BC ProgramBC Program admin./financeadmin./finance collection collection transportationtransportation processingprocessing recycling/disposalrecycling/disposal communicationscommunications

Contracted trucks visit depots, dropping empty bins, pick up full bins and bring to central facility

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BC ProgramBC Program admin./financeadmin./finance collection collection transportationtransportation processingprocessing recycling/disposalrecycling/disposal communicationscommunications

PCA manages the sorting and bulking facility, serving entire province of 4 million people

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BC ProgramBC Program admin./financeadmin./finance collection collection transportationtransportation processingprocessing recycling/disposalrecycling/disposal communicationscommunications

Bulked materials are shipped for recycling, reuse, disposal to approved contractors

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BC ProgramBC Program admin./financeadmin./finance collection collection transportationtransportation processingprocessing recycling/disposalrecycling/disposal communicationscommunications

•Consumer brochures •via 4000 retailers•via municipal distribution

•recycling hotline•web page.

The message to consumers: •Buy what you need•Use what you buy•Dispose responsibly

Objective: Reduce leftovers to 0% while increasing recovery to 100%

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Stewardship in Canada:Stewardship in Canada: Beverage containerBeverage container programs: programs:

Industry managed (BC, AB, QC, NB)Industry managed (BC, AB, QC, NB) Gov’t agency managed (SK, NF, NS)Gov’t agency managed (SK, NF, NS) Voluntary programs (AB dairy, SK dairy)Voluntary programs (AB dairy, SK dairy)

Packaging/papers:Packaging/papers: industry managed (ON, QC industry managed (ON, QC pending)pending)

Used OilUsed Oil – industry managed (BC, AB, SK, MB, QC) – industry managed (BC, AB, SK, MB, QC) Tires:Tires: retailer/gov’t managed (all provs. except retailer/gov’t managed (all provs. except

ON)ON) Paint/HHWPaint/HHW: (BC, QC, NS) industry managed : (BC, QC, NS) industry managed EwasteEwaste: (AB) ARMA manages: (AB) ARMA manages PharmaceuticalsPharmaceuticals (BC, AB) – industry (BC, AB) – industry Car batteriesCar batteries (BC, PEI) – gov’t managed (BC, PEI) – gov’t managed Rechargeable batteriesRechargeable batteries – voluntary program – voluntary program

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Stewardship Programs in Canada

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Factors influencing TPO structure:Factors influencing TPO structure: Who regulates?: Federal or provincial jurisdictionWho regulates?: Federal or provincial jurisdiction

Product Type and product definition Product Type and product definition

Who is the Obligated party: manufacturer, Who is the Obligated party: manufacturer, distributor, retailer, or ? distributor, retailer, or ?

Regulatory designRegulatory design

Government role vs. industry roleGovernment role vs. industry role

Enforcement systemEnforcement system

Internal Workings of Existing TPOs

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Regulatory JurisdictionRegulatory Jurisdiction

The challenge:The challenge: In Canada, provinces have jurisdiction In Canada, provinces have jurisdiction

over waste managementover waste management Individual provinces pass regulationsIndividual provinces pass regulations Results in patchwork/checkerboardResults in patchwork/checkerboard Creates efficiency/compliance Creates efficiency/compliance

challenges for industrychallenges for industry

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Regulatory JurisdictionRegulatory Jurisdiction

Regulations vary in each province by:Regulations vary in each province by: Product definitionProduct definition Definition of obligated partyDefinition of obligated party Establishment of a multi material or supervisory Establishment of a multi material or supervisory

boardboard role of gov’t, role of industry in managing role of gov’t, role of industry in managing

programprogram Other: Other:

Municipal role, if anyMunicipal role, if any Stipulations re board composition (e.g municipal or Stipulations re board composition (e.g municipal or

NGOs)NGOs) Requirements to use certain infrastructure (e.g. Requirements to use certain infrastructure (e.g.

existing depot system)existing depot system) Product management (e.g. processor must be in the Product management (e.g. processor must be in the

province, no incineration etc.)province, no incineration etc.)

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Product Type and product Product Type and product definitiondefinition

Product type influences program Product type influences program designdesign

Tires, used oil, car batteries Tires, used oil, car batteries return to retail works wellreturn to retail works well

Paint/HHW/ewaste Paint/HHW/ewaste depot system depot system works wellworks well

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Product definitionProduct definition Harmonized product definition (across Harmonized product definition (across

jurisdictions) essential for ease of jurisdictions) essential for ease of compliance and administrationcompliance and administration

Then producer administers same list of Then producer administers same list of products in every jurisdictionproducts in every jurisdiction

In Canada, a standard for definition of In Canada, a standard for definition of HHW has now been developed, CSA Z752, HHW has now been developed, CSA Z752, can be referenced in regulatory definitionscan be referenced in regulatory definitions

2020

Distribution hierarchy approachDistribution hierarchy approach: : Manufacturer, but if not in Manufacturer, but if not in jurisdiction, then brandowner, if not jurisdiction, then brandowner, if not then distributor, if not then retailer then distributor, if not then retailer

VariationVariation: First importer/seller : First importer/seller approachapproach

Variation:Variation: let industry program decide let industry program decide via “rules”, obligated party must via “rules”, obligated party must have a “commercial connection”have a “commercial connection”

RetailerRetailer via tax return via tax return

Who is the Obligated party (to pay fees)?

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Some categories of regulatory design:Some categories of regulatory design:

1.1. File approved program(s) otherwise “return to retail” File approved program(s) otherwise “return to retail”

BC, QC, NS for paintBC, QC, NS for paint

File an approved program (individually or collectively) File an approved program (individually or collectively)

No fees stipulated in reg’n, but fees paid to associationNo fees stipulated in reg’n, but fees paid to association

Prescribed default reqs: return to retail (or “near retail”) Prescribed default reqs: return to retail (or “near retail”) must meet minimum prescribed standards, may be required must meet minimum prescribed standards, may be required to accept all brands (what about mail order/internet sales?), to accept all brands (what about mail order/internet sales?), must manage collected material and report. must manage collected material and report.

2.2. One mandated program only (AB, ON)One mandated program only (AB, ON)

all producers must pay fees to approved program whether or all producers must pay fees to approved program whether or not a member (in Ont. have option of Independent not a member (in Ont. have option of Independent Stewardship Program)Stewardship Program)

3.3. Special tax collected at retail - Gov’t managedSpecial tax collected at retail - Gov’t managed

Used tire programs, battery programsUsed tire programs, battery programs

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What is the Government role, what is the industry role?What is the Government role, what is the industry role?Variations: Variations: Gov’t supervisory roleGov’t supervisory role, Industry funds and operates , Industry funds and operates

program, gov’t enforces compliance (e.g. BC paint program, gov’t enforces compliance (e.g. BC paint program, used oil programs)program, used oil programs)

Gov’t establishes Gov’t establishes “multi material board”“multi material board” to supervise, to supervise, industry funds and operates programs, gov’t enforces industry funds and operates programs, gov’t enforces (e.g. Ontario blue box) (e.g. Ontario blue box)

Gov’t establishes Gov’t establishes gov’t agencygov’t agency to operate programs, to operate programs, industry funds, gov’t enforces (e.g. SK and NF beverage industry funds, gov’t enforces (e.g. SK and NF beverage container programs)container programs)

Gov’t collects Gov’t collects retail taxretail tax to fund program, manages to fund program, manages program by contract (all tire and battery programs)program by contract (all tire and battery programs)

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In “approved program” approach, the In “approved program” approach, the issue of payment is between the program issue of payment is between the program and its members, however and its members, however nonnon members members subject to prosecution by gov’t for non subject to prosecution by gov’t for non compliance with reg’ncompliance with reg’n

In “one program” approach, gov’t has In “one program” approach, gov’t has greater role in enforcement for any non greater role in enforcement for any non payerspayers

Related questions:Related questions: Is the “producer” in the jurisdiction?Is the “producer” in the jurisdiction? Can the reg’n be enforced outside of the Can the reg’n be enforced outside of the

jurisd’n?jurisd’n? What presence in the jurisdiction is needed? What presence in the jurisdiction is needed?

Building? Address? Sales representative?Building? Address? Sales representative?

Who enforces?

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Industry wish list to Industry wish list to gov’tgov’t

Harmonize definitions/regulations with other provs.Harmonize definitions/regulations with other provs. let industry manage the program, gov’t’s role is to let industry manage the program, gov’t’s role is to

regulate/superviseregulate/supervise Limit the role of multi material boards – supervise not operateLimit the role of multi material boards – supervise not operate Do combine requirement for local economic development (e.g. Do combine requirement for local economic development (e.g.

mandatory in-province processing)mandatory in-province processing) Modify related waste management regulations e.g. transportation Modify related waste management regulations e.g. transportation

of dangerous goods, to allow programs to operate efficientlyof dangerous goods, to allow programs to operate efficiently Encourage municipal collection role, gives citizens “one stop”, Encourage municipal collection role, gives citizens “one stop”,

the infrastructure is often already therethe infrastructure is often already there Encourage municipalities to allow depots outside of industrial Encourage municipalities to allow depots outside of industrial

zoneszones Don’t worry about the finances: industry itself does not want Don’t worry about the finances: industry itself does not want

high fees or cross subsidizationhigh fees or cross subsidization Do not impose requirement for multi stakeholder board Do not impose requirement for multi stakeholder board

composition, boards are for managing, not for consultation composition, boards are for managing, not for consultation Provide effective enforcement systemProvide effective enforcement system

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Summary of Product Summary of Product Care’s approach as a TPOCare’s approach as a TPO

provide “universal adaptor” and “one stop” for provide “universal adaptor” and “one stop” for members. members.

Strive for harmonized fees, product lists, Strive for harmonized fees, product lists, common audits.common audits.

Adapt to existing infrastructure where possibleAdapt to existing infrastructure where possible Actively manage programs to achieve Actively manage programs to achieve

efficienciesefficiencies In-source, out-source services where beneficialIn-source, out-source services where beneficial Multi sector governance modelMulti sector governance model Centralized administrationCentralized administration Work with other programs to achieve synergiesWork with other programs to achieve synergies

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Product Care BC program trends 2001-20042004

volume +35%

2004 costs -11%

2001 = 100%

2001 2002 2003 2004

Program Performance in BC program

•Industry management leads to program efficiency

•In BC paint/HHW program:

•Volumes have increased steadily

•Per unit and total program costs have decreased

•Eco fees have never increased and have reduced in many categories

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Thank you !!Thank you !!Contact info.Contact info.

Mark KurschnerMark Kurschner

Product Care AssociationProduct Care Association

604 592 2972 x 201604 592 2972 x 201

mark@productcare.orgmark@productcare.org