1. transition to resource recovery and circular economy act MWA Spring workshop Dave Gordon may 31, 2017
AMO Annual Conference 2012

2. What does wfoa mean for us?
Producers will be directly responsible for their end-of-life management, including all related costs
Producers can discharge this responsibility by directly operating collection and recycling services for the used materials or by contracting with service providers, potentially including municipalities
Now in force, the Waste Diversion Transition Act (WDTA) represents an interim step ensuring the smooth transition of existing Blue Box, WEEE, MHSW, and Used Tires programs to the new Resource Recovery and Circular Economy Act (RRCEA) avoiding disruptions to recycling services currently provided or financed by Producers
AMO Annual Conference 2012

3. Principles for regulations
Producers should, at a minimum, be required to ensure the transition of the blue box program and the revised role of municipalities will not negatively impact Ontarians experience with and access to blue box services and other diversion programs.
Targets must be set high enough to achieve the goals of a circular economy, including zero waste and zero GHG, and include mechanisms to ensure collected materials continue to be recovered once targets are met. A process for regular review of targets is required to foster continual improvement.
Provincial targets for reduction, reuse and recovery should be material specific and adaptable rather than set as a broad “basket of goods” for designated materials.
We recognize there’s a time continuum here; not all of these Principles would be achieved fully on Day 1; but we should be progressing towards them
AMO Annual Conference 2012

4. Principles (cont’d)
Designated materials should be recovered regardless of where they are generated. While different mechanisms may be required to recover designated materials from Commercial & Industrial waste, recovery targets must ensure that producers are required to take full responsibility for all designated materials managed as municipal waste.
Where producers do not meet their commitments, municipalities should be fully compensated for any financial impacts associated with the failure to meet these commitments. 
Mechanisms must be put in place to ensure that Producers have viable opportunities to establish multiple approaches for meeting commitments and to ensure full and fair competition among these approaches.
Looking for municipally managed materials; not full ICI; we think it ultimately should get there, but realize it will be a process
AMO Annual Conference 2012

5. PRINCIPLES (CONT’D)
Municipalities that continue to provide recovery services for the management of designated materials must be fully compensated by Producers for the net, actual costs for the provision of agreed management services for designated materials.
Where municipalities no longer provide services on behalf of Producers or their designated recovery agents, a mechanism needs to be agreed to and implemented to compensate for the investments already made by municipalities and transition costs.
A firm deadline (with intermediate check-in deadlines) should be set for the transition of all existing programs to the RRCEA framework.
AMO Annual Conference 2012

6. PRINCIPLES (CONT’D)
The Producer’s financial obligation for operating the existing Blue Box Program should be increased incrementally during the transition period.
Processes and target dates should be identified for designating additional materials for Producer responsibility regulations.
AMO Annual Conference 2012

7. Municipal working group
-We’re facing a lot of work to ensure programs transition in a way that is best for our communities
-Feb 8th AMO Workshop – we got a mandate to look at how we can resource the sector to ensure we can be an effective partner in this transition
-Established a Working group with two functions:
Oversee and guide work we need to do immediately
Develop recommendations for a Municipal Entity that would provide these services for municipalities during the transition\
-Working Group members are representatives from AMO, Toronto, RPWCO, MWA; MWA also has sounding board to solicit input from rural and northern communities who cannot provide dedicated resources to the Working Group; also had a link with Eastern Ontario – thanks to Heather Roberts for organizing this and providing us with input. Ben Bennett from MWA has been our liaison
-also have advisors: Mike Birett and Alec Scott as well as Derek Stephenson, Betty Muise, Brian Nelson are our consultants
We have also had additional staff help us out with technical work and communications – Craig Bartlett, Lindsay Milne, Charlotte Ueta and some Toronto communications staff
-Have established four subcommittees:
1. Core Group – smaller nimble group who can attend meetings with stakeholders etc.
2. Governance and Structure Group – looking at building and standing up the longer term Agency
3. Strategy Group – developing options for transition of programs
4. Technical Group – overseeing technical work to inform policy positions – RFPs issued on geographic accessibility, promotion and education standards, definition of designated materials, targets; also working on defining a standard level of service
5. Communications Group – Internal and External messaging and stakeholder relation
We held a two day retreat May 3 and 4th
One of our key items has been to transition the Blue Box Program more quickly than 2023; each year we wait is $130M
- Meeting with representatives from Stewardship Ontario to see if we do this; both parties are interested in accelerating the timeline/or at least starting the process
Considered several options, but think highest potential is an amendment to the BBPP under the WDTA
Working with Producers now to get common understanding of key issues to each group and determine if we can use an amendment to set a pathway for transition to the RRCEA
This has potential to move quickly; intent is to seek agreement between the parties on an approach and look to amend the Plan by the end of this year
Communications:
We know municipalities are desperate for information on the transition and what it means for them
Our goal is to provide an update to all municipalities following every MWTA meeting to provide an update; this is a deliverable for the Communications Subcommittee
We are viewing this very much as how we managed MHSW contracts – a smaller group of us are working on these issues on your behalf; we will not be usurping autonomy of municipal councils; recommendations will be brought to you from this group for discussion and for you to walk through with your individual Councils
Will talk more to Communications at the end of the pres’n
Mac Bain, Monika Turner, Dave Gordon, Amber Crawford
Jim McKay, Vince Sferrazza
RPWCO
Jon Arsenault, Mirka Januszkiewicz, Debbie Korolnek, Norm Lee, Laura McDowell, Jay Stanford
Ben Bennett, Karyn Hogan, Adam McCue, Francis Veilleux
AMO Annual Conference 2012

8. Upcoming issues Blue Box Transition Transition of other programs
Food and Organic Waste Action Plan
2017 Steward Obligation
AMO Annual Conference 2012

9. Transition of blue box
Blue Box scheduled to transition to RRCEA in 2023 in MOECC Strategy document
Each year we wait to transition costs municipal taxpayers $130M and rising
AMO Board of Directors has resolved to move the Blue Box to full producer funding by January 2019
Work has started on this file by Waste Technical Working Group
Work to date includes:
Developing potential pathways to transition
Engaging with other stakeholders
Technical work to develop evidence-based policy:
Targets
Definitions of Designated Materials
Geographic Accessibility
Promotion and Education Standards
Defining Standard Level of Services
Met with several large Producers to discuss how Blue Box could transition; looking at amendment to current Blue Box Program Plan as a way to transition
AMO Annual Conference 2012

10. Transition of existing programs
Tires
Municipalities currently paid a collector fee and transportation and processing is provided by Ontario Tire Stewardship (OTS)
Recently have had issues with OTS on data collection
Transition is now underway
Municipal Hazardous and Special Wastes (MHSW)
MOECC has commissioned study to examine which materials should be included
Need to increase amount of designated materials
Currently paid for by Producers, however many municipalities not receiving full compensation
Municipalities manage a significant amount of this material
Waste Electronic and Electrical Equipment (WEEE)
MOECC has commissioned study to examine what materials should be included
Currently paid for by Producers
Timing:
Tires first
OTS wound up by Dec
Wind up plan submitted by Oct ; expect RPRA approval by March 2018
Tires will set important precedents for the transition process
After Blue Box, MHSW has biggest financial benefit for municipalities to transition
AMO Annual Conference 2012

11. Organics action plan
Province is looking for early wins on Organics given GHG impacts
Calling for a food waste ban in
Does that mean mandatory food waste collection programs?
- Minister’s mandate letter called for completion of Organics Action Plan by 2017
- Stakeholder Working Group has been formed by MOECC with representatives from AMO, Toronto, RPWCO and MWA from municipal sector along with other industry players such as brand owners, retailers, OWMA, technology providers, NGOs etc.
-MOECC has issued an RFP for study to examine implementation of an Organics Disposal Ban for Ontario
- Support the actions related to reducing the amount of food waste generated in Ontario throughout the entire supply chain i.e. from field to plate to recovery
- Hoping the Action plan deals with ‘compostable’ materials and packaging
- Documents from sessions are posted on AMO Waste Management Portal; if need a login Amber Crawford at AMO
- Prior to implementation of a disposal ban there must be considerable work completed on ensuring sustainable organics processing capacity is available and development of a practical approach to monitoring and regulating odours from organics processing facilities
AMO Annual Conference 2012

12. Steward obligation
2017 Steward Obligation for the Blue Box program has been set at $123.67M
Municipal MIPC delegated to the RPRA Board and requested that they use the Arbitrator’s methodology of using verified reported net costs to set the Obligation
The Board resolved to use a methodology similar to last year that incorporates a number of factors
Results in ~$7M or 5% decrease in funding to municipalities versus the Arbitrator’s methodology
The amount of the deduction for municipal cost containment has increased substantively from $12.4M to $16.3M
RPRA Took into consideration the following:
Cost Containment to reflect best practices in operating municipal waste diversion programs
Evolving Tonne to reflect the lightweighting trend in packaging from paper to plastic
Steward Cost Containment to reflect the adoption of materials by stewards that can be cost-effectively managed through the Blue Box program
InKind Eligibility to reflect municipal advertisements for diversion programs taken out in newspapers
Non-Obligated Materials to reflect the collection of materials through the Blue Box program that are not mandated
Three-Year Rolling Average Revenue to reflect volatile commodity prices
Prior Year Adjustments to reflect any errors identified by the Authority in verifying and auditing Datacall information
Municipal MIPC presented to the RPRA Board and requested that the Arbitrator’s methodology for setting the Obligation be utilized again
This wasn’t used by RPRA
They used a similar methodology as last year
Amount represents about 95% of what we would have received using the Arbitrator’s methodology
AMO Annual Conference 2012

13. Next steps
We will continue to provide support to our members including:
Communications to keep members up to date
Working with Producers to determine if we can agree on terms to move the Blue Box transition forward
Providing comments and input to MOECC on multitude of issues:
Transition of Tires program
Wind up of ISP’s
Transition timeline and process for existing diversion programs
Working with Authority on Steward Obligation Blue Box program costs under Waste Diversion Transition Act
Refining and providing further rationale for the positions and principles we have outlined
Keeping members updated on further developments throughout this process
Some other vehicles to watch for communications:
AMO Waste Portal has reports and updates from various stakeholders on the RRCEA - get a password
Toronto, York, Durham among others are taking reports to Councils in June; copies will be posted on AMO portal; recommend municipalities use these reports as boiler plate to get all of our elected officials up to speed on this in a consistent manner
AMO has also developed list of municipal waste managers from Feb 8 session and is sending updates; additional updates through MWA and RPWCO
Get out to Regional workshops and events – recently completed spring CIF consultations in London, Peel, Smith’s Falls, North Bay, Dryden and Thunder Bay; CIF session today; MWA at Deerhurst May 30; AMO planning fall workshop date tbd
Attend and get involved in RPWCO, MWA
Call Dave Gordon ; call one of the members of MWTA
Thanks!
AMO Annual Conference 2012