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

2. 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

3. 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

4. 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

5. 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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. MWA Fall Workshop October 2017
Thanks!
Questions?
Dave Gordon
MWA Fall Workshop October 2017