1. Resource Recovery Legislation Dave Gordon MWA Spring Workshop May 2015

2. New Resource Recovery Legislation Expected Premier directed Minister of Environment and Climate Change to develop new legislative framework Currently in pre-drafting stage; Provincial interest statements have been released Expect legislation in fall with summer consultation on Provincial interests

3. MWA Spring Workshop May 2015 Best in Class Integrated Waste Management System Service to over 5 million households Manage almost 4.9 million tonnes of material at an estimated total annual cost of over $1 billion to taxpayers Disposal infrastructure consisting of 24 landfills and 1 EFW facility with an estimated value of over $1.6 billion Collection and processing of over 900,000 tonnes of printed paper and packaging at a cost of over $325 million with a market value of over $87 million Collection and processing of 900,000 tonnes of organics (leaf and yard waste, food waste) at a cost estimated in excess of $225 million to produce soil amendment. Collection of almost 18,000 tonnes of hazardous waste at an estimated cost of almost $26 million

4. MWA Spring Workshop May 2015 Increasing the efficiency by which natural resources and energy are utilized Moving to a competitive circular economy vs. current consumption-based economy Reducing greenhouse gas emissions Moving focus further up the waste management hierarchy to drive reduction and reuse efforts in addition to recycling and recovery (e.g. food waste reduction strategy, textile reuse etc.) More design for the environment in products and packaging that see more durable or reusable products while using less packaging and fewer hazardous materials Expanding new legislative framework to encompass diversion in ICI sector Cost effective green procurement initiatives Strengthen competition in the marketplace Provincial Goals / Public Goods

5. MWA Spring Workshop May 2015 1.Maximize diversion of material from disposal 2.Minimize cost to municipal taxpayers to manage: –ICI waste –potential useful resources in the waste stream –organics, particularly branded organics –hazardous materials. 3.Less litter and less cost to taxpayers for litter 4.Equitable access to programs for all Ontarians Critical Municipal Requirements

6. MWA Spring Workshop May 2015 5.Corresponding changes to existing legislation and instruments 6.Fair treatment of existing municipal resources and infrastructure 7.Clear rules and roles for municipal governments, producers, and service providers 8.Balanced and accountable governance 9.Recognition of Municipalities ability to act as a group 10.Evidence-based decision making that is transparent Critical Municipal Requirements

7. MWA Spring Workshop May 2015 1.Municipal role, as of right, in collecting Blue Box materials, with fair compensation  Municipalities must have the right, if they choose, to maintain or reclaim the exclusive right to collect Blue Box material at curbside or depots (depending on their current programs) from their residents, and to be fairly compensated for this service.  Recycling collection forms a key component of the integrated waste management system municipalities provide for residents and some businesses in their communities. In many cases, the same truck provides multiple functions on a single pass, and recycling collection is an integrated part of waste collection contracts.  Fair compensation should be determined through a formula based on the verified data call, not negotiations. Important Municipal Objectives

8. MWA Spring Workshop May 2015 Important Municipal Objectives 2.Municipal right to compete fairly for Blue Box processing  Municipalities must have the right, if they choose, to compete for processing of printed paper and packaging, on a level playing field with the private sector.  Municipalities can choose to retain processing and subsidize operation from tax base if they choose  Stranded assets must be fairly compensated.

9. MWA Spring Workshop May 2015 Important Municipal Objectives 3.Fair compensation for any major new costs as a result of the legislative framework  If municipalities are expected to administer or enforce any new programs (i.e. disposal bans or levies), there must be fair compensation for these activities. 4.Fair compensation for hazardous wastes which enter the municipal waste management system  Municipalities must have ability to provide collection services where producer systems are not adequately working  Additionally, municipalities must have the right, if they choose, to compete for providing collection services

10. MWA Spring Workshop May 2015 Important Municipal Objectives 5.Extend producer responsibility to more branded goods  Extend producer responsibility to additional items such as printed paper and packaging in the ICI sector, additional electronic items, construction and demolition waste, branded organics, bulky items (e.g. mattresses, furniture), small household goods (e.g. toys). 6.Organic waste diversion on voluntary basis  Many jurisdictions have introduced collection of household organic waste. However, given the heavy financial burden associated with these programs, they should not be mandatory until substantial funding is provided by the stewards of branded organics such as diapers, food packaging, and disposable paper products.

11. MWA Spring Workshop May 2015 Important Municipal Objectives 7.Municipal-controlled access to funds for continuous improvement in performance and efficiency  Municipalities should have continued access to a fund for capital expenditures needed for continuous improvement. Producer involvement is not required and may create excessive conflict.

12. MWA Spring Workshop May 2015 MIPC Update AMO/City of Toronto and Stewardship Ontario have not been able to agree on 2015 Steward Obligation WDO board has: Directed the parties to mediation Directed Stewardship Ontario to start paying municipalities interim 2015 Blue Box funding with the first payment on June 30, 2015, if the final 2015 steward obligation is not determined before then. Interim 2015 Blue Box funding will be calculated using the arbitrator’s method of determining the 2014 steward obligation.

13. MWA Spring Workshop May 2015 Next Steps MOECC has initiated consultations at high level on new legislation Municipal reps have attended and AMO, RPWCO and MWA have been engaged Likely some consultation over the summer on Provincial interests Mediation sessions started this week to determine the 2015 Steward Obligation Mediator required to provide status update to WDO Board by June 1

14. MWA Spring Workshop May 2015 Thank you! Dave Gordon 416-389-4160 dgordon@amo.on.ca