1 Quebec Experience in Disposal Levies Recycling Council of Ontario & Ontario Ministry of the Environment Waste Diversion Act (WDA) Consultation Toronto, January 20th 2010 Directeur de l’analyse et des instruments économiques André G. Bernier

2 The new policy Commitment to sustainable development 3 main challenges  Ending resource waste  Promoting the goals of the Climate Change Action Plan and the Québec Energy Strategy  Making all stakeholders involved responsible for residual materials management

3 Goals Make end waste the only residual material sent for disposal in Québec By 2015 : Reduce the quantity of residual materials sent for disposal to 700 kg per resident (In 2008: 810 kg/res.)

4 10 Interventions strategies 10 Interventions strategies 3rd- Discourage and monitor disposal

5 Funding Raise of the disposal levy Compensation for municipal services provided to recover and reclaim residual materials: The compensation will pass from 50% to 100% of recognized costs

6 The levy story , first trial 2004, project approval public consultation and negotiation with municipal associations June 23rd 2006 promulgation  $10/ton  85 % of revenues to municipalities

7 Why a disposal levy? Some actions in the policy were not reaching their goals Lack of financing for “blue box” Almost nothing done for putrescible cost of disposal < cost of recycling Regional residual materials management plan not adopted Landfill neighbours’ compensation

8 5 options 1.Voluntary measures and individual initiatives 2.Extended producer responsibility to manage putrescible materials 3.Ban some materials 4.Pay-as-you-throw 5.Create a disposal levy a.to the government consolidated fund b.to finance recycling and valorising activities

9 How do we fix the levy? 2003: $8 per ton Gap between disposal fees and recycling costs +$40 Average landfill disposal fee $41 $49 in New Brunswick and between $55 and $65 in Ontario Residual material management expenses:  Municipal ~ 400 M$ in 2000  Ministry’s ~10 M$

10 Goals for the levy We wanted to find a levy that would be:  Simple  Significant  Having an impact on the sector  Helping municipalities to implement their regional plan We did not want to upset the sector

11 How do we build the regulation? Environment Quality Act, article 31, subparagraph e.1, commonly call “economic instrument article” BNAA Main landfills and incinerators Payment conditions like taxes Respect of small businesses

12 The redistribution program 85% of all revenues must be shared between admissible municipalities To be admissible, a municipality must:  Pay disposal fees  Have adopted a legal regional plan  Report yearly

13 The redistribution program The program accepts different municipal organizations Subsidies will be gradually given according to the municipal performance with regards to reducing landfilling and incinerating  During the first two years the subsidies were shared on a per habitant basis

14 What do we do to obtain adhesion? Consulting Agreement with municipal associations Commitment to return 85% to municipalities for regional plans Green Fund Some changes

15 How do we implement? Regulation  Firmly but with help Program  Partnership  Consensus on performance equation  No subsidy without a regional plan  Withholding subsidies in case of problems

16 Results Capacity to manage an important economic instrument This kind of instrument can get good results. The financial incentive works Since the beginning:  Revenues: 213 M$  Redistribution program: 182 M$ to 750 municipalities

17 Results Courbe de tendance Graph: Quantity trend

18 The increase of the levy Finance biomethanation and compost equipment Finance the new policy 31% return to municipalities for residential residual material

19 Lessons Keep it simple Admit your mistakes to be able to correct them

20 Thank you

21 More information More information matieres/redevances/index.htm pgmr/index_en.htm Tél. :