1. Industry Stewardship in Ontario Gordon Day for Washington State November 1, 2006

2. Todays Presentation Regulatory framework in Ontario Ontario Blue Box Program Key Features Results Scan of other provinces

3. Ontario About 2x the population and area as Washington State Birthplace of the blue box – 25 yrs ago 94% of population in Southern Ontario Waste management is provincial responsibility, managed by local regions, counties and cities S. Ontario shipped 1.15 million tons to U.S. in 2005 – will end by 2010

4. Background Minister of the Environment Minister of the Environment Waste Diversion Ontario Waste Diversion Ontario Stewardship Ontario Stewardship Ontario Waste Diversion Act, 2002 Municipalities Stewards

5. Blue Box Program Plan Industry pays 50% net municipal recycling system costs – paying to best practices Program obligates consumer products –brand owners –first importers –franchisors Stewardship Ontario sets & collects fees Fees fund municipal Blue Box recycling programs Program began: February 1, 2004

6. More than Just the Blue Box Blue Box Waste is material managed through municipal waste management systems – IC&I is not part of the program Printed paper –newspapers, flyers, magazines, catalogues, directories, direct mailings, bills, junk mail, etc. Packaging –paper packaging, plastic, aluminum, steel, glass & composites

7. Key Features Fee Setting Formula – Allocates fees across all printed paper and packaging materials – 23 material sub-categories – Changes for 2007 reward those materials with higher recovery rates On-Line Reporting – Stewards report on-line www.stewardshipontario.ca www.stewardshipontario.ca

8. Effectiveness & Efficiency (E&E) Fund Objective: to reduce system cost & minimize future cost increases as recovery increases 10% of industry contribution to municipalities directed to E&E Fund ~$5 million program funding per year 50 projects currently approved for funding valued at $7.18 M See E&E Fund section of www.stewardshipontario.ca See E&E Fund section of www.stewardshipontario.ca

9. Registrations & Reports Year One/Two2005 Sept 2004 Company registrations3,8053,829 Registered as obligated stewards1,7931,787 Obligated stewards reported1,4751,345 Fees Identified from Stewards$63.2 M$62.6 M 1 as reported in Stewardship Annual Reports

10. Results to Date Achieved financial target in 2005/06 Distributed $185 million to 190 Ontario municipal since 2003 55%+ recovery rate all materials First charges laid under the Waste Diversion Act (WDA) Market development –2003/2004 fees $2.5M for glass –2005 fees $100K for plastics

11. Beverage Containers Integrated collection with other recyclables – Beer on separate deposit system Recovery rates in 2004: – Wine/spirit glass 68% – Aluminum SD: 43% – PET beverage: 55% – Aseptic/gable top: 13% Sept 07 announcement that wine/spirits will be on deposit in 2008 – Returned through Beer Store system

12. see inset LEGEND Automotive Batteries (ULABs) Beverage Containers Construction & Demolition Dairy HSW Multi-Material Pharmaceutical Tires Used Paint Used Oil WEEE Extended Producer Responsibility - Legislation Across Canada - white-washed symbols mean proposed legislation full-colour symbols mean in-place or pending legislation

13. Other Provinces Similar approach being adopted in other provinces: – Quebec: starting Fall 2006 – Manitoba: regulation in 2006; 12 months – Saskatchewan: timing ~2008 Beverage deposits in all other provinces – High return rates; expensive $/ton – Most have parallel unfunded curbside/depot services

14. Summary Stewardship Ontario first of its kind in North America – integrated program to address all consumer packaging and printed paper Shared responsibility model approach has industry & political traction Clear shift in responsibility from government to industry – 100% vs. shared – Visible vs. invisible fees

15. Keeping Up To Date www.wdo.ca www.stewardshipontario.ca www.csr.org Gordon Day Manager, Customer Services 647-777-3361 gday@csr.org