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

2. 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

3. Welcome In person (~65) Webcast audience (over 60)
slides advance automatically
enlarge slide
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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

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

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

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

32. 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

33. 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

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

35. Quantities Managed in 2005 (kg)35

36. Quantities Managed in 2005 (kg) #236

37. 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

38. 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

39. 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

40. 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

41. 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

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

43. 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

44. 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

45. 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

46. 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

47. 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

48. 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

49. 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

50. 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

51. 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

52. 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

53. 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

54. 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

55. 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 or fax
by January 15, 2007 55

56. Contacting WDO Web site: www.wdo.ca
Telephone:
Fax: 56