Amended Blue Box Program Plan Dave Gordon AMO MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Beginnings… Shared responsibility 50/50 Successful approach: 95%+ accessibility rate 60%+ diversion rate Based on integrated waste management system approach with municipal autonomy MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Concerns… Increasing Tensions between producers and municipalities Rising costs with no controls Theoretical cost containment with no control over packaging decisions Continuous need for formal dispute resolution and arbitration Both sides want change MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Waste-Free Ontario Act Move to full producer responsibility with individual producers responsible for end-of-life management for designated products and packaging Fundamental change – Producers fully managing designated materials, not municipalities MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Unwinding Current System It’s complicated to change to new system: Collection and processing contracts in place Existing infrastructure MOECC Strategy called for 2023 to transition Both parties interested in accelerating that MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Amended BBPP Parties landed on amending BBPP versus direct jump to RRCEA It’s first step of a longer transition Could be done in time available Offered opportunity to try and manage existing contracts and infrastructure in an orderly fashion Accord of July 7 Minister’s request letter of August 14 MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Timeline & Process MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Non-Transitioned Municipality Where everyone will start Same as currently operating, except are now paid 50% of net verified costs No deductions for cost containment Some restrictions apply No transition costs are eligible No changes to level of service beyond Aug 14, 2017 Penalties/charges/damages payable to contractor ineligible MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Transitioned Municipality Right of first refusal to provide collection services on behalf of SO Need to agree to terms on commercial agreement with SO including: Standardized basket of goods Contamination levels SO pays 100% of contract costs plus contract admin Can also choose to opt out of PPP collection SO will then need to deliver collection directly via its own competitive procurement MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Methodology to Transition All contracts for collection and/or management of PPP have expired OR A municipality self-delivers service (i.e. does not have contracts for the collection and management of PPP) All contracts for collection and/or management of PPP have been terminated early such that the community is unencumbered by agreements MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Methodology to Transition (2) 4. Transition Support Mechanisms: A) Stewardship Ontario and municipality could enter into agreement to act as contract manager based on prescribed performance standards with price established through benchmarking for existing collection contract. Enables transition of existing collection contracts that expire after processing contracts MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Methodology to Transition (3) 4. Transition Support Mechanisms: B) Bridging Collection contract to future expiring processing contract: Extend collection contract short term to expiry of processing contract If short term extension cannot be achieved: collection services would need to be competitively procured with these additional terms and conditions: Agreed terms and conditions for maintaining status quo collections under shared responsibility for the period until the processing contract expires; and Agreed terms and conditions for the subsequent period as a transitioned community. Enables collection contract to transition once processing contract expires Enables municipality to contract for adequate term to amortize capital costs while still enabling transition once processing contract expires MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Other Considerations: The parties are assessing options for pacing the rate at which municipalities transition such that SO can ensure that its occurs effectively and smoothly. Stewardship Ontario is proposing advanced notification to transition existing programs: One year where a municipality exercises right of first refusal to be a collector under contract to Stewardship Ontario.  Two years where a community declines right of first refusal to act as a collector to Stewardship Ontario and intends to have Stewardship deliver collection services. Still municipal autonomy to decide whether to transition or not MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 PPP Regulation under RRCEA This is where we want to get to: Provides for individual producer responsibility Competition Reduction and Reuse Stronger controls MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Next Steps and Take-Aways: Get informed! Attend consultation sessions and voice your opinions Brief your Council Ask for help MWA Fall Workshop October 2017

MWA Fall Workshop October 2017 Thanks! Questions? Dave Gordon dgordon@amo.on.ca MWA Fall Workshop October 2017