Northwest Product Stewardship Council Delegation October 2, 2007 Northview Golf & Country Club th Street Surrey, British Columbia Industry-Led Stewardship BC Governments Approach Kris Ord Manager Community Waste Section BC Ministry of Environment

Ministrys role & regulatory framework –Outline the model, regulation and process Why this Policy Approach? –Key drivers National Overview Current BC Programs –Stewardship Program Expenditures –Environmental Results Future Direction on Process & Product Selection –Whats next in B.C. ? –Candidate Product List Questions? Presentation Overview

Facts about British Columbia Located on the west coast of Canada Population is 4.3 million (Canadas total population is about the same as Californias) 3 rd largest province in Canada Produces about 12% of the country's total GDP Future host of 2010 Olympic and Paralympics Winter Games

Ministry of Environments Role… Ministry provides leadership in environmental management through: legislation, programs, and compliance activities.

Our Policy for Industry-led Product Stewardship Based on OECDs Extended Producer Responsibility (EPR) model… A management system based on industry and consumers taking life-cycle responsibility for the products they produce and use Shift away from government-managed, taxpayer- financed waste management programs

Life Cycle Perspective Scope of conventional producer responsibility Scope of extended producer responsibility Design Manufacturing Distribution Waste Mngt Use Producer: manufacturer/brandowner, first importer Slide courtesy of Karen Asp, Gartner Lee

Recycling Regulation (2004) Results based regulation Provides producers with flexibility to meet environmental outcomes Industry must consult with stakeholder on their plan

Why We Do It This Way In line with government direction - move towards results- based legislation Focus on environmental outcomes not operations Create level playing field Provide flexibility in planning – one size doesnt fit all Ensure transparency – require public consultation and annual reports on operational and financial aspects Provide flexibility for producers – their design or option to follow prescriptive Part 3 section Ensure everyone has input through public consultation

Key Drivers Premiers and Cabinets direction/goals Input from ENGOs, local governments and industry Willingness of industry Federal EPR initiatives – Canadian Council of Ministers of the Environment (CCME) EPR Task Force Other jurisdictional initiatives Toxicity Volume GHG Reductions

National Overview Across Canada… –BC leads the way with now 9 programs. –Alberta and Saskatchewan have 6 –Ontario and Manitoba have ambitious agendas CCME Extended Producer Responsibility Task Group –Action Plan for EPR –Packaging

Current Programs 1.Batteries (govt program) 2.Beverage Containers 3.Pharmaceuticals 4.Paint 5.Pesticides 6.Gasoline, 7.Solvents and flammable liquids 8.Tires 9.Used Oil, Containers and Filters 10.Electronics

Batteries Not regulated under the Recycling Regulation but under the Hazardous Waste Regulation Products include vehicle lead acid batteries Administered by BC Government Recovery rates – 98%, (high recovery driven by high metal prices)

Beverage Containers Products include alcoholic and non-alcoholic beverage containers Deposit-refund system Overall high recovery rates – 84% for 2005 – 2006 Agencies Responsible – Encorp. Pacific –Brews Distributing Limited Cool Facts about Beverage Container Recycling 50 % aluminium from cans is recycled at least once 14 recycled PET bottles = 1extra large T-Shirt 3700 recycled two litre beverage containers = 150 fleece shirts = one barrel of oil saved

Electronics Products include computers (and peripherals), desktop printers and televisions Agency responsible – Electronic Product Association of BC Status Program Operations – Under Contract with Encorp. Pacific –Regulated in February 2006 –New plan submitted February 2007 –Program Implemented August 2007 Recovery rates – to be determined…

Paint – Product Care Products include latex, oil and solvent-based paints and stains for commercial and household use Agency responsible - Product Care Association Status – revised plan approved July 16, recovery rates – –Paint – 2,164,042 L –Aerosols – 17,360 L

Paint – Tree Marking Products include paints and stains in aerosol containers but not industrial, automotive or marine anti-fouling applications Agency responsible Tree-Marking Paint Stewardship Association (TSA) Status – submitted revised plan for approval 2005 recovery rates – –141,121 containers processed

Pharmaceuticals Products include all unused or expired drugs as defined in the Food and Drugs Act (Canada) Agency responsible – Post-Consumer Pharmaceutical Stewardship Association Status – submitted revised plan for approval 2005 recovery rates – –Over 80% pharmacies participating –18,012 kg unused medications collected

Residuals Products include pesticides, gasoline, solvent and flammable liquids Agency responsible – Product Care Association Status – revised plan approved July 16, recovery rates – –Flammable liquids/gasoline – 54,386 L –Pesticides – 7,656 L

Tires Products include pneumatic or solid tires designed for use on a motor vehicle, farm tractor, trailer or other equipment Agency responsible – Tires Stewardship BC Status –New plan approved September 2006 –Program implemented January 2007 (transfers government program to industry) Recovery rates – over 90%

Used Oil, Filters and Containers Products include lubricating oil, oil filters and the empty oil containers Agency responsible – BC Used Oil Management Association Status – revised plan due October recovery rates – –Oil – 73% –Filters – 81% –Containers – 51%

Stewardship Program Expenditures – Saves Govt $ Province-wide Program2005 Expenditures ($) Beverage containers – non-alcohol $ 55,676,237 Electronics no data yet Paint, Gasoline, Pesticides, Solvents & Flammable Liquids $ 4,527,517 Pharmaceuticals $ 225,000 Tires no data yet Used Oil, Containers & Filters $ 876,662 Total $ 61,305,416

Environmental Results In 2005, some of what was diverted from the landfill includes… –772 million non-alcohol beverage containers –3.8 million tires –48 Million litres of oil

Vision for EPR Future Our Ministry goal is to add two new products to the Recycling Regulation every three years Work with other jurisdictions to harmonize EPR programs Work with producers to foster design for the environment and reduce GHG emissions

How Are New Products Added 1.Scoping phase - research 2.Policy intentions paper phase – develop, consult on and finalize policy 3.Drafting phase – draft legislation 4.Implementation phase – training, guidelines etc

Whats Next in BC Ministry Service Plan - add two new product categories every three years. Select two products from candidate list Fall Release a policy intentions paper for public consultation on the selected products Spring of prepare amendment to the Recycling Regulation for government consideration Industry will develop a plan and launch program.

Candidate List of Products New Product Categories Antifreeze and hydraulic fluid Batteries (alkaline, lithium, lead acid, etc) Light Bulbs (fluorescent, incandescent, LED, etc.) Mercury containing products (switches, thermometers, thermostats, medical equip., etc) Packaging (paper, plastic, metal, glass)** White goods (fridge, stove, cfc containing, etc.) Pool and photographic chemicals Furniture and textiles Construction and demolition waste Automobiles **phased approach

Candidate List of Products (2) Expand Existing Product Categories Electronics ** Paint Pesticides Solvents and other flammables Pharmaceuticals **phased approach

Kris OrdManager, Community Waste David LawesTires, Electronics, CCME Packaging Bob PaulWaste Reduction Initiatives Lyn SmirlBatteries, Oil, Tree-Marking Paint Jenn WilsonBeverage Containers, Pharmaceuticals, Product Care (paint and residuals) Our Product Stewardship Team

Thank you … Any Questions?

Beverage Containers Regulatory requirements - Schedule 1 of Recycling Regulation Definition of beverage exempts milk/substitutes Minimum Deposit/Refund legislated: 1L or less non-alcoholic beverages - 5 cents 1L or less alcoholic beverages -10 cents More than 1L for any beverage - 20 cents Return-to-Retail limit of 24 containers/person/day of containers sold Annual report requires independently audited financial statements for: revenues and expenditures associated with visible fees, and all deposits/refunds paid Regulation states a 75% recovery rate for beverage containers

Stewardship Agencies Encorp manages LDB containers under contract LDB in process of transitioning producer responsibility to the remaining stewardship agencies Stewardship Agency Containers ManagedApprox. Market Share 2005 Recovery Rate Encorp Pacific (Canada) all non-alcoholic beverage containers60%73% Liquor Distribution Branch (LDB) wine, spirit, non-refillable beer, cider and cooler containers 10%89% Brewers Distributors Ltd. (BDL) refillable glass bottles and aluminum cans for domestic beer, ciders and coolers 30%93%

Collection System Consumers have choice of retail, depots or blue box/bag (forgo refund) Stewardship plan identifies container redemption facilities Encorp licensed depots (some also pick up from retailers) LDB – retail stores (government liquor stores are transitioning to 24/person/day) and contracts with Encorp depots BDL – retail stores and contracts with a few Encorp depots

Fees and Deposits Three sources of revenue by category: –Sale of recovered materials –Unredeemed deposits –Visible container recycling fee (CRF), if revenue from first two sources is not enough to pay costs Producers pay deposits and CRF to agencies, pass on to retailers, who recover from consumers