Industry Consultation Workshop I: New Ontario Waste Diversion Funding Obligations.

Industry Consultation Workshop I:New Ontario Waste Diversion

Funding Obligations

Derek Stephenson Stewardship Ontario

Development and Approval of the Required Blue Box Program

New Ontario Waste Diversion Funding Obligations

FOR CONSULTATION ONLY

• The numbers presented today are not final figures

• They are the best available planning estimates to be used in the Industry Consultation process

• They must be reviewed and finalized by the Stewardship Ontario Board of Directors


REQUIRED ELEMENTS OF A BLUE BOX PROGRAM PLAN

• Pay 50% of Blue Box net costs

• Funding allocation formula that:

Recognizes regional variations Provides incentives to encourage

program effectiveness & efficiency


• Funded research & development program to improve effectiveness & efficiency

• Funded program for market development

• Funded program for education and public awareness

• Fee collection mechanism to meet these costs

REQUIRED ELEMENTS OF A BLUE BOX PROGRAM PLAN


MATERIAL DESIGNATIONS

Designation Examples

Printed Paper Newspapers, flyers, magazines, catalogues, directories & other printed paper deliveries to the home (envelopes, advertising, notices)

Paper Packaging

Corrugated & paperboard boxes, paper bags, molded pulp trays

Glass Sealed glass containers




Ferrous Packaging

Sealed food, beverage, aerosol, paint containers

Aluminum Packaging

Sealed food & beverage containers. Flexible & semi-rigid foil packaging

Plastics Bottles, jugs, tubs, cups, lids, bags, wraps, pouches, trays, blister & other consumer packaging




Laminate Packaging

Two or more types of paper, plastic, metal or glass packaging that cannot be easily separated

Textile Packaging

Cloth or synthetic sacks & bags


DESIGNATED “STEWARDS”

The brand owner or first importer into Ontario of these materials

Note: Does not include transport packaging


COMPLIANCE OPTIONS

Industry Choice:

• Companies can join an approved stewardship organization to collectively contribute 50% of the net cost of the Blue Box program, or;

• Seek approval from Waste Diversion Ontario to

implement a program to recover their own packaging and printed paper and pay full costs

Report on the performance of the plan each year WDO and MOE may charge fees to evaluate and

monitor the ISP Plan must have a performance equal to or better

than that of Stewardship Ontario


BLUE BOX PROGRAM PLAN Development Process

• AMO/IFO task group struck to negotiate key issues


• Plan development process approved by WDO September 24th

• Materials & Packaging Advisory Committee

• Printed Paper Sub-Committee

• Data Reporting Advisory Committee



• Industry, municipal and public consultation programs

• Website: “www.stewardshipontario.ca”

• Weekly or Bi-weekly Stewardship Ontario Board Meetings

• Draft plan to WDO Board January 21st

• Final Plan to Minister February 28th



BASELINE DATA Generation Planning Estimates

Material Category Tonnes (2001)

Newspaper

Other Printed Paper

Paper Packaging

Plastics

Ferrous

Aluminum

Glass

Laminates

529,800

250,900

259,500

172,600

68,600

27,900

179,500

149,200

Totals 1,638,000


BLUE BOX PROGRAM Cost Components

• Municipal transfer payments (90%)• Funded market development program• Funded promotion and education

program• MOE enforcement costs• Program design and startup• Program implementation and

administration• WDO costs over and above LCBO $1M


PROJECTED COSTSFirst 12 Months

Payments to municipalities

Program development, start-up, implementation & administration

$31,250,000

$3,342,000(15 months)

Total Program Costs $34,592,000

LCBO Contributions

CNA/OCNA In-kind

$5,000,000

$1,300,000

Additional Cash Required $28,292,000


COST ALLOCATION METHODOLOGY

Will not be a sales based formula Material specific cost allocation

taking into consideration:- Total tonnes generated- Material specific recovery rates- Cost to manage each material (ABC)- Incentives to increase recycling


DATE OF OBLIGATION

Current planning date:

May 1, 2003


DE MINIMIS PROVISION

• “The program will include a rule to exempt stewards under subsection 30(1)(e) of the Act based on de minimis criteria”

• Proposed de minimis provision – less than $2 million Ontario sales or minimum tonnage threshold (t.b.d.) exempted


REPORTING OPTIONS

• Options: Option 1 – report actual Ontario data Option 2 – report actual national data Option 3 – use Stewardship Ontario

“Quick Calculator”

• There will be an opportunity to develop sector specific quick calculators


PROPOSED FUNDING FORMULA METHODOLOGY

Step 1 –

• Determine the total quantity of Blue Box wastes generated

• Current planning estimate: 1,638,000 tonnes


Step 2 –

• Determine total costs to Stewardship Ontario in Year-One

• Current planning estimate: $ 34,592,000



Step 3 –

• Allocate these costs across the designated blue box materials to determine a per tonne/per kilogram levy rate

Current planning methodology uses three weighted factors:

Recovery rate for each material category – 45% Net cost to manage each material category – 40% Equalization factor (had all materials been

recovered at the same rate) – 15%



Step 4 –

• Assigns a de minimis & compliance factor to each material category



MATERIAL LEVY RATESPreliminary Levy Estimates

Material

Categories

Preliminary Ranges (cents/kg)

Newsprint

Printed Paper

Paper Packaging

Plastics

Laminate Packaging

Ferrous

Aluminum Foil

Glass

0.03 - 0.04

1.4 - 1.7

4.2 - 4.8

6.2 - 7.3

4.1 - 5.9

5.0 - 5.3

4.2 - 4.9

3.5 - 3.7


MATERIAL LEVY RATESNot Yet Set

• Worked examples from proposed methodology will be presented during the December 17th web-cast

• Posted on website December 12th


OBLIGATED TONNAGEOption 1

• Stewards will declare and report that portion of total printed paper and packaging that is sold to consumers through retail, vending and direct distribution channels

• Printed paper & product packaging sales produced exclusively for non-residential use is exempted


OBLIGATED TONNAGEOption 2

Consumable/Quick Turnover Product

Report all printed paper & packaging that is produced primarily for households/consumers, regardless of sales or distribution channels

Durable & Semi-Durable Products

Stewards to determine that portion of printed paper & packaging sold into commercial accounts & deduct these from the fee calculations


OBLIGATED TONNAGEExemptions

• Shipping & transport packaging that is NOT intended for use or management in the home (e.g. shipping boxes recycled by grocery retailer, plastic pallet wrap)

• Industrial use and bulk packaging that is not intended primarily for household consumer use (e.g. bulk flour bags)


REGISTRATION PROCESSSUBMISSION OVERVIEW SCREENS (INTERNAL AND EXTERNAL)

ACCESS ONLY TO AUTHORIZED USERS - PRIMARY CONTACT SEES ALL

Company: XYZ CORPORATION

Subsidiary Paper Polycoat Plastics Ferrous Aluminum Glass Laminates FINAL

XYZ Company 15 empty empty empty empty empty empty N

BBB Company 0 empty empty empty empty empty empty N

CCC Division** 321 17 20 50 31 22 55 Y

DDD Company 15 17 10 0 0 0 0 Y

Organization Totals 351 34 30 50 31 22 55

**Estimated by Quick Calculator

Ok FINAL Only to be seenby Primary Contact

Pop up Contact infoPARENT CO. ALWAYS ON FIRST LINE

Drill down on underlined cells to reach pop up screen.See Task 2.1.1 for Pop Up Screens

Always "N" until "Y"entered

No drill down capablity with Quick CalculatorInformation populated by system

Time StampDate StampUser Stamp

on all "Y" cells

Link to Task 1-10.1Pop up Declaration Form Task 2-13


REGISTRATION PROCESS

Pop up screenCategories - ABC Company

(1) (2)PAPER National OntarioNewsprintMagazines/Directories 5 4Corrugated Paperboard 2 1Boxboard 5 4Kraft Bags/Sacks 3 2Moulded Trays/Dunnage 0 0 Total 15 11

Last updated on:Last updated by:

Cancel Done

Pop up definitions for all categories and sub categories displayed in Task 2.5

Corrugated Paperboard: Popup definition of all categories

#'s default to "empty" if null

Set all Empty (null) unless to zero


ROLE OF WDO VS. IFO

WDO Board continues to discuss what functions to house within the WDO itself versus the roles and responsibilities of the designated IFO

AMO has proposed that these responsibilities should be held within the WDO but paid for by Industry Funding Organizations:

Measuring and reporting on progress towards targets Public consultation on the plan Public education and awareness activities Calculation of funds due to individual municipalities Distribution of these funds to municipalities Conducting and interpreting data calls related to material recovery rates Conducting and interpreting data calls related to the financial net cost

calculation Administering a program effectiveness and efficiency fund

The WDO has not yet made a decision on this key issue.


KEY DATES TO REMEMBER

• Plan submitted to Minister February 28th

• Minimum 30-day posting on EBR (Environmental Bill of Rights)

• Ministerial approval expected within 60 days of plan submission


WHAT YOU SHOULD DO TO PREPARE

• Identify designated materials

• Quantify those materials (audit)

• Budget for 2003 based on the estimated levies that will be identified in the Plan - and a projected start date of May 1st, 2003

Thank You

Industry Consultation Workshop I: New Ontario Waste Diversion Funding Obligations.

Documents

Transcript of Industry Consultation Workshop I: New Ontario Waste Diversion Funding Obligations.