Introduction to Municipal Hazardous or Special Waste Plan Development Process January 9, 2007 1

Agenda 1) Waste Diversion Act (WDA) 2) Waste Diversion Ontario (WDO) Questions on WDA & WDO 3) Municipal Hazardous or Special Waste (MHSW) Questions on MHSW Regulation & Letter — BREAK — 4) WDO Actions on MHSW to Date Draft MHSW Consultation Plan Stewardship Ontario Governance Proposal Questions on Draft Consultation Plan & Governance Proposal 2

Welcome In person (~65) Webcast audience (over 60) slides advance automatically enlarge slide email box for questions/comments on left-hand side of webcast console use any time please include name & affiliation Archived webcast available for 180 days 3

Waste Diversion Act Purpose The purpose of this Act is to promote the reduction, reuse and recycling of waste and to provide for the development, implementation and operation of waste diversion programs. 4

Waste Diversion Act (WDA) WDA shifts some or all responsibility from government to industry for: managing end-of-life products & packaging developing & implementing diversion programs initiatives & incentives to achieve performance goals such as market development R&D financial incentives consumer education WDA shifts some or all of costs from government & general taxpayers to industry & potentially their consumers 5

Waste Diversion Act Minister has authority to designate waste require that WDO develop a diversion program in co-operation with an existing IFO per WDA S.23(3)(a) or an IFO to be incorporated by WDO for the program per WDA S. 23(3)(b) 6

Waste Diversion Act WDA establishes WDO as a non-crown corporation Multi-stakeholder board comprising representatives from stakeholder industries & associations Association of Municipalities of Ontario environmental non-government organization Ontario public service Minister currently reviewing WDO Board structure 7

Waste Diversion Ontario Responsibility for waste diversion programs develop, implement, operate monitor effectiveness & efficiency ensure programs affect Ontario’s marketplace in fair manner enhance public awareness of & participation in programs Determine amount of money required by WDO & IFOs to carry out responsibilities under WDA Establish dispute resolution process for disputes between IFOs & municipalities with respect to funding IFOs & stewards with respect to rules If referred by Minister conduct public consultations advise or report to Minister 8

Roles & Responsibilities Minister of the Environment establishes diversion policy designates waste under WDA sets diversion program performance goals requires WDO to develop diversion program plan approves or rejects diversion program plan has authority to implement government plan by regulation Multi-stakeholder WDO Board co-ordinates industry initiatives allows government & industry to operate at arms length reviews/approves plans & recommends approval by Minister 9

Roles & Responsibilities Industry stewards manage Industry Funding Organization (IFO) & lead program development/implementation haulers, processors, end markets provide services to IFOs Municipalities provide collection of Blue Box materials (per WDA) provide collection of MHSW (per program request letter) may provide collection of other materials depending on agreements reached with IFOs during plan development 10

Waste Diversion Act Waste Diversion Ontario Questions? Waste Diversion Act Waste Diversion Ontario 11

MHSW Regulation Minister posted draft regulation on Environmental Registry June 9th for 30 days Received ~50 submissions with over 400 comments in total Filed final regulation December 11 notice of decision posted on MOE website refer to # RA06E0003 12

MHSW Regulation Notice of Decision - Effect of Comments added O.Reg 347 definition of corrosive waste Municipal Special Waste expanded to include solvents & their containers items containing mercury antifreeze phrase ‘chemically-based’ removed as an adjective of fertilizers, etc. 13

Included in MHSW Regulation Municipal Hazardous Waste corrosive, flammable or toxic products by reference to Consumer Chemicals & Containers Regulations, 2001 flammable, corrosive or toxicity hazards by reference to CSA Standard Z752-03 corrosive, ignitable, leachate toxic, reactive waste by reference to Regulation 347 14

Included in MHSW Regulation Municipal Special Waste batteries pressurized & aerosol containers portable fire extinguishers fertilizers, fungicides, herbicides, insecticides, pesticides paints & coatings oil bottles & filters fluorescent light bulbs or tubes pharmaceuticals, sharps, syringes switches, thermostats, thermometers, barometers & measuring devices containing mercury antifreeze & solvents 15

MHSW Program Request Letter WDO’s role “I am requiring that WDO develop a waste diversion program for Municipal Hazardous or Special Waste” Timelines “I expect evaluation & analysis of all phases of the program, as outlined in the addendum, to commence upon receipt of this letter.” governance proposal & Consultation Plan within 30 days (extended to January 26, 2007) “The MHSW program, Phase 1, shall be submitted by May 31, 2007 for my approval.” 16

MHSW Program Request Letter Stewardship Ontario’s role “I am also requiring that Stewardship Ontario act as the Industry Funding Organization for the program” “the Board of Directors of the IFO include representatives from industry that will be affected by a MHSW program” “Stewardship Ontario shall ensure that only representatives from the affected industries are involved in program development” 17

MHSW Program Governance Stewardship Ontario governance proposal to be submitted to Minister by January 26, 2007 short term i.e. plan development only representatives from affected industries involved in MHSW plan development longer term i.e. Phase 1 implementation Stewardship Ontario Board to include representation from eight Phase 1 MHSW materials Minister will implement revised Stewardship Ontario governance by regulation when approving MHSW plan 18

MHSW Materials Sources Phases residential waste small quantity waste from industrial commercial & institutional (IC&I) generators not required to submit a generator report under O.Reg 347 S.18(1) limited to 100 kg/month of MHSW Phases Phase 1 – 8 materials Phase 2 – additional 8 materials future phases 19

MHSW Program Request Letter Incentives to encourage 3Rs including establishment of facilities with sufficient re-use & recycling capacity to maximize management of MHSW R&D activities to develop & promote diversion of MHSW available for collection education & public awareness activities 20

MHSW Program Request Letter Defines obligated stewards brand owners & first importers Defines products to be included in plan produced or imported into the province for sale in Ontario not included in another program no double charging of containers in both Blue Box & MHSW programs 21

MHSW Program Request Letter Defines basis for calculating Phase 1 fees (1) program activities after initial collection of waste at MHSW or other collection facilities, such as transportation of waste from collection facilities processing, recycling, disposal other related waste management activities promotional & public education activities 22

MHSW Program Request Letter Defines basis for calculating Phase 1 fees (2) capital costs to meet Phase 1 program accessibility targets to maximize MHSW management through 3Rs not to fund or promote burning, landfilling or land application of MHSW unless 3R options not available or technically feasible 23

MHSW Program Request Letter Shall consider options with respect to internalizing program costs determine which option most appropriate for program Intended to encourage producer initiatives that reduce end-of-life management costs WDA provides WDO & IFO with authority to levy fees on stewards internalizing program costs therefore refers to process used by IFO to levy fees on stewards diversion program plan cannot comment on decisions taken by individual stewards to recover cost of fees from customers 24

MHSW Plan Requirements Baseline data breakdown of quantity sold estimate of quantity available for collection existing diversion/recovery infrastructure & markets Collection & diversion targets for each material for first 5 years taking into account reduction of quantity available for collection as a result of program 25

MHSW Plan Requirements Methodology to define accessibility targets Set program accessibility targets to establish and/or expand MHSW collection programs & sites make program convenient & accessible to all Ontarians including high density urban areas rural communities Northern Ontario 26

MHSW Plan Requirements Methodology to expand & improve existing collection & diversion infrastructure to meet collection & diversion targets program accessibility targets Benchmarks & performance measures to encourage 3Rs, best practices, innovative diversion techniques 27

MHSW Plan Requirements Breakdown of financial payments specific financial incentives for activities identified in funding rules eligibility criteria for financial incentives procedure to receive incentives Tracking & audit mechanisms to ensure overall program compliance 28

MHSW Regulation MHSW Program Request Letter Questions? MHSW Regulation MHSW Program Request Letter 29

Introduction to Municipal Hazardous or Special Waste Plan Development Process Break 30

WDO Datacall Yields data on current municipal MHSW programs permanent depot locations & operation special event operations quantities managed other program information 31

Current MHSW Program Permanent depots Special events (in 2005) 52 municipalities operate 98 depots level of service varies, e.g. 1 day/year, 1 day/week, year round average is ~120 days/year Special events (in 2005) 18 of 52 municipalities with depots operated events additional 34 municipalities operated events total of 270 events 32

Current MHSW Program In 2005 depots & events served ~11.4 million residents in ~ 4.4 households total of ~ 430,000 visits assuming 1 visit per household per year ~10% of households participated 17 private contractors listed as providing MHSW services to municipalities 33

Quantities Managed With municipal staff - 50.75% Via contractors - 49.25% Management method 7% reused 47% recycled 46% disposed 34

Quantities Managed in 2005 (kg) 35

Quantities Managed in 2005 (kg) #2 36

Quantities Managed in 2005 Paint 36% Pesticides 1% Flammables 21% Inorganic Acids Oil 17% Inorganic Oxidizers Car Battery 8% Miscellaneous MHSW Organic Oxidizers 4% Oil Filters Propane Tanks 3% Bulk Fuel Aerosols 2% Propane Cylinders 0.4% Dry Cell Batteries Pharmaceuticals 0.2% Antifreeze Fluorescent Lamps Inorganic Bases Syringes 0.1% 37

WDO Actions to Date December 13, WDO Board received Minister’s letter reviewed content with Minister’s Advisor & Director of Waste Management Policy Branch explored concerns & issues agreed letter would be respected by WDO & Stewardship Ontario acknowledged Stewardship Ontario Board must review letter December 15, Executive Director met with Minister’s Advisor, Policy Branch Director, staff & legal counsel to review letter & clarify Minister’s expectations 38

WDO Actions to Date December 19, Executive Director met with municipal representatives to scope their program plan development issues December 21, Executive Director met with Stewardship Ontario Board January 5, Executive Director observed a Stewardship Ontario Board meeting 39

WDO Actions to Date WDO organized today’s workshop to initiate plan development process to solicit comments on items to be submitted to Minister by January 26 Consultation Plan Governance Proposal Remaining elements of Consultation Plan to be implemented by Stewardship Ontario in co-operation with WDO 40

Consultation Plan WDO Board will review for approval on January 24, 2007 submit to Minister on January 26, 2007 Will be posted on WDO & Stewardship Ontario websites 41

Draft Consultation Plan Hard copies available today Electronic copy available via WDO website (www.wdo.ca) Comments in writing to WDO by end of business on January 15, 2007 42

Draft Consultation Plan Identifies stakeholders including stewards of products that result in MHSW affected industries (e.g., haulers, processors, etc.) associations for stewards & affected industries municipalities that currently operate MHSW depots/events that do not environmental/community groups with an interest in MHSW issues IC&I small quantity generators of MHSW general public 43

Draft Consultation Plan Minister directed “evaluation & analysis of all phases of the program to commence upon receipt of program request letter” Plan therefore encourages participation by all stewards & stakeholders with interest in Phase 1, Phase 2 & future phases 44

Key Elements of Draft Consultation Plan Information available via WDO & Stewardship Ontario websites Notices distributed to database of affected stewards, municipalities, stakeholders Press releases to national & industry media Three workshops/webcasts # 1 Introduction to MHSW Plan Development Process (i.e., today’s workshop) # 2 Baseline Data & MHSW Plan Options # 3 Draft Preliminary Program Plan 45

Key Elements of Draft Consultation Plan Preparation of a consultation paper & backgrounder Record of consultation comments Posting of draft preliminary plan comments to be submitted to WDO and/or Stewardship Ontario Posting of final plan following submission to Minister 46

In Addition Throughout implementation of consultation plan, information related to MHSW plan development also will be regularly reviewed by Stewardship Ontario Board & MHSW stewards directly involved with Stewardship Ontario in plan development WDO Executive Director & Board MOE staff & legal counsel 47

Stewardship Ontario Governance Proposal Preliminary information provided today Comments in writing to WDO and/or Stewardship Ontario by end of business on January 15, 2007 WDO Board will review for approval on January 24, 2007 submit to Minister on January 26, 2007 Will be posted on WDO & Stewardship Ontario websites 48

Stewardship Ontario Governance Proposal Short term - plan development only representatives from affected industries involved in MHSW plan development Longer term - Phase 1 implementation Stewardship Ontario Board to include representation encompassing 8 Phase 1 MHSW materials Minister will implement revised Stewardship Ontario governance by regulation upon approval MHSW plan 49

Stewardship Ontario Governance Proposal Stewardship Ontario Board established Governance Committee Members are Diane Brisebois, RCC Vaughn Crofford, CHHA John Coyne, Unilever Canada Sandra Banks, Coca Cola Bottling Grant Caven, Canadian Tire Jim Quick, CPPA Marina Kovrig, Rechochem Susan Antler, CHBA/RBRC First meeting scheduled for January 11, 2007 expected to produce a draft governance model 50

Stewardship Ontario Governance Proposal Goal fairly represent interests of both BB & MHSW stewards within one organization For purposes of preliminary consultation only has been suggested this could be achieved by adopting a bi-cameral governance structure that defines areas of common interest material specific interest Note this not yet considered by Stewardship Ontario Governance Committee any consultation comments submitted will be provided to committee 51

Stewardship Ontario Bi-Cameral Governance Stewardship Ontario Board MHSW representation from - Paints & Coatings - Solvents - Oil Filters & Antifreeze - Propane Tanks - Garden Chemicals BB representation from - Printed Media - Durable Goods - Consumer Products - Retailers & Distributors Executive Committee BB Committee MHSW Committee 52

Plan Development Stewardship Ontario Board also established Program Committee Members are 2 representatives from existing Stewardship Ontario Board Dennis Darby, P&G (Chair) Lyle Clarke, LCBO additional representatives from MHSW stewards not yet identified First meeting scheduled for January 12, 2007 to receive presentations from organizations with interest in designing & implementing program 53

Key Dates January 9 Initiate plan development process & solicit comments on items to be submitted to Minister by January 26 January 15 Comments due on draft consultation plan & governance proposal January 24 WDO Board will review plan & proposal for approval January 26 WDO will submit Governance Proposal & Consultation Plan to Minister January 26 onward Consultation on draft MHSW plan May 31 Phase 1 MHSW program plan submitted for approval 54

Questions? Draft Consultation Plan Stewardship Ontario governance short term - plan development longer term - Phase 1 implementation Process for submitting comments to WDO & Stewardship Ontario by email or fax by January 15, 2007 55

Contacting WDO Web site: www.wdo.ca Email: glendagies@wdo.ca Telephone: 416-226-5113 Fax: 416-226-1368 56