alberta recycling deposit system

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BCMB 2009 A ual Rep r

r ur i gog r

2009 AnnuAl RepoRt


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Like er b le ep s a acr ss Alber a, James w rks wi Alber a s ever a re uce e umber beverage c ai ers a f eir wa la flls. B c llec i g a s r i g c ai ers like milk car

a jugs, glass b les, alumi um ca s, plas ic b les, juice b xes, a il p uc es, James a is ell wAlber a s pla a ke r le i e s s ems success a i pr ec i g eir pr vi ces e vir me .

James ( r c ver) a S au a ( is page) are s a w rki g i a E m base b le ep


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A b r as b v rag c ai r r cyc i g sys m is h b s , i the b s ,i n r h Am rica. Its innovative approach has lead to a return rate that is

approaching 85% and e ciencies that make it convenient and attractive or

Albertans to recycle their beverage containers. Alberta is the only jurisdiction in

North America, and to our knowledge the world, that now accepts a beverage

containers or recycling through a deposit-re und system.

Socio-economic actors a ecting the Beverage Container Management Board (BCMB) andthe beverage container recycling system are constantly evolving. The BCMB is continually

reviewing its programs, seeking improvements to service, and looking or innovative ways

to bene t the public.

Beverage container depots are committed to making the recycling experience a positive one

or Albertans as their environmental awareness increases. Depots o er added value to beverage

container recycling as containers are sorted on site, resulting in less contamination and better

salvage value.

The systems success is thanks to close working relationships between the regulator

the Beverage Container Management Board and its industry partners, depot owners and

sta , and all Albertans. With over 200 depots province-wide accepting more than 1.7 billion

containers each year or deposit, there is much to be proud o when it comes to Albertas

leadership in environmental stewardship. Every person in the province can take ownership

o and participate in the recycling o beverage containers.

All signs indicate a return rate goal o 85% by 2011 wi be achieved and the numbero containers reaching land lls will continue to decrease signi cantly, an accomplishment

all Albertans can be proud o as we strive to reduce our environmental ootprint or

uture generations.


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c s

About the BCMB 6 Albertas Beverage Container Recycling System 9 2009 Highlights

0 Letter to the MinisterChairs Report

2 Managing Directors Report

2009-2011 Business Plan Summary2 2009 Recycling Survey o Albertans2 What Happens to Recycled Containers?2 Bottle Depot Network26 Board o Directors27 Financial Statements


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AlbertaEnvironment BCMB

ProductRegistration

ContainerCollection

Registration&

ComplianceEn orcement

ABCRC

(Non Alcohol)

AGLC

(Alcohol)

ABCRC

(Non Beer)

ABCC

(Beer)Manu acturers

RetailStores

UniversalDepots

AlbertaEnvironment/

BCMB

UniversalDepots

UniversalDepots

RetailStores

DelegatedAdministrativeOrganization

BCMB = B r g Co i r M g m Bo raBCC = a b r B r Co i r Corpor ioaBCRC = a b r B r g Co i r R c c i g Corpor ioaGlC = a b r G mi g & li uor Commissio

ab h BCMB

The Beverage Container Management Board is responsibleor the collection and recycling o beverage containers

throughout Alberta. The BCMB and its two collectionsystem agents, the Alberta Beverage Container RecyclingCorporation (ABCRC) and the Alberta Beer ContainerCorporation (ABCC), work in partnership with the AlbertaBottle Depot Association (ABDA) to ensure the collectionand processing o used beverage containers.

MandateThe Board operates within policy parameters set outby the Minister o Alberta Environment. The BCMB wasincorporated under the Societies Act on October 9, 1997and established as a management board under theBeverage Container Recycling Regulation pursuant toSection 175 (jj) o the Environmental Protection and Enhancement Act on December 1, 1997.

By Order in Council 505/2008 dated October 22, 2008,the Beverage Container Recycling Amendment Regulationextended the Beverage Container Recycling Regulation or

ve years, expiring October 31, 2013. The BCMB operates in

accordance with the above, as well as the ollowing by-lawsset by the Board:

Beverage Container Management Board General BylawBeverage Container Management BoardAdministrative BylawBeverage Container Management Board Fee BylawBeverage Container Management BoardAdministrative Compliance Bylaw

StRUCtUReThe governance structure o the BCMB consists o a16-member Board o Directors composed o an equalnumber ( ve each) o members rom beverage manu acturers,the depot industry, and the public, as well as one non-votingrepresentative rom Alberta Environment.

FUndInG FOR OPeRatIOnSThe Government o Alberta does not supply or receiveany unding or or rom the operation o the beveragecontainer recycling system. Depot operators and beveragemanu acturers und the administrative costs o the BCMBthrough a levy based on beverage container returns.

B r g Co i r S s m


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a b r as b v rag c ai r r cyc i g sys m

In Alberta, beverage manu acturers are responsible or post-consumption collection o their beverage containers, andthey have designated two collection system agents thatgather their containers rom bottle depots around Alberta the Alberta Beverage Container Recycling Corporation andthe Alberta Beer Container Corporation.

Manu acturers (through their collection system agent)pay a handling commission to the depots or each o theircontainers received. In return, the depot operator sorts thecontainers into di erent groups. Re llable containers aresorted by size and manu acturer. Non-re llable containersare sorted into groups consisting o the same material,size and colour.

This handling commission is the only source o income orbottle depots. The Alberta government does not subsidizedepots in any way. As an incentive or consumers to recycle,the provincial government imposes a re undable depositon each beverage container. Consumers are entitled toa cash re und o the ull deposit they have paid on eachcontainer and are reimbursed at a bottle depot. Beveragecontainer manu acturers are required to reimburse thebottle depots or the deposits they pay out on each o

the containers.

Albertas innovative beverage container recycling systemhas achieved one o the best recycling records in Canada.Approximately 82% o the containers sold in the province arerecycled. This conserves more than 390,000 cubic metres o land ll space every year.

The system has grown to include 216 universal bottle depotsthat accept all beverage containers and 66 Class D (beercontainers only) depots. The BCMB has registered over85,000 alcohol and non-alcohol beverage products.

Beverage container recycling has become a way o li e or

Albertans. Every indication is that our system will remain ane ective, convenient, and cost e cient means or Albertansto participate in environmental stewardship.


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Beverage Container Li e Cycle

M u c ur r i o mi r pro uc s:

ib rg ss i su io c rp po r c m ri

LitterGarbage

Landfill

Other Uses

BCMB

Manufactureror Distributor

Depot

CollectionSytem Agent

RecycleMarket

Consumer

Retailer

R ur or R u

Bu S ipm

h i gCommissio

d posi

d posi

Purc s d posi& CRF

Purc s d posi& CRF

d posi & CRF(Co i r R c c i g F ) cos o r c c i g co i r

R i b B rCo i rs

Purc s R c c M ri (i. . a umi um)

Purc s

B r g Co i r li C c

do r li C c

Blue Box or OtherRecycling Project


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Mi k, cr am, a d m a r ac m c ai rs w r add d h d si -r d sys m J 1, 2009,

maki g A b r a h rs j risdic i i n r h Am rica d s .


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The Beverage Container Management Board had a numbero milestones in 2009. New containers were added to therecycling system, the return rate continued to increase,and signi cant enhancements to operations and governanceresulted in more e ciencies and innovation.

The overall return rate or beverage containers rose to82% rom 77% in 2008.

Milk, cream, and meal replacement containers were addedto the deposit-re und system on June 1, 2009, makingAlberta the rst jurisdiction in North America to do so.

With the addition o milk, cream, and meal replacementcontainers, ALLbeverage containers in Alberta are nowaccepted at depots or a re und o the deposit paid onthem in stores.

2009 was the rst year using new board governancepolicies, resulting in stronger decision-making processesand enhanced Board accountability and transparency.

The number o Board members increased to 16.Fi teen are voting members ve each rom thebeverage manu acturing sector, the depot sector,and the public, and one is a non-voting representative

rom Alberta Environment.

2009 high igh s

A Li e Cycle Assessment (LCA) o recyclable materialswas initiated to look at alternative uses and dispositionso materials to achieve the best environmentaloutcome possible.

Over 100 depots had 100% accurate audits o re unds

through the Mystery Shopper program.

Changes were made to how handling commissionsare set, resulting in more streamlined processes,the use o mediation, and updated rules and bylaws.

A November 2009 survey ound almost 99% o thosesurveyed recycle at least some o the time and themost popular method o doing so is through bottledepots (87%).

The survey also indicated high ratings or ve attributes:location o depots, the deposit received, cleanliness o the depot, wait time, and protection o the environment.


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June 2, 2010

Honourable Rob RennerMinister o Alberta EnvironmentGovernment o Alberta425 Legislature Building10800 - 97 AvenueEdmonton AB T5K 2B6

Dear Minister Renner:

On behal o the Board o Directors o the Beverage Container Management Board, I am pleased to presentour Annual Report or the scal year ended December 31, 2009 in accordance with Section 5 o the BeverageContainer Recycling Regulation (Alta. Reg. 101/97).

Yours truly,

Ross Risvold

ChairBeverage Container Management Board

cc:Cal DallasParliamentary Assistant

r h mi is r


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On behal o the Board o Directors o the BeverageContainer Management Board, I am pleased to presentour 2009 Annual Report.

2009 was an exciting year or the BCMB. A number o signi cant changes in the beverage container recyclingsystem are resulting in increased return rates, streamlineddecision-making processes, and more positive experiences

or customers at depots across the province.

I am particularly proud o how well beverage containerstakeholders worked together to bring the return rateto 82%, just shy o the goal o 85% by 2011. Depots,manu acturers, retailers, hotel and liquor store owners,governments, environmental organizations, and the publicare all contributing to the system and making it success ul.

In June 2009, the number o Board members increased to16 rom 12 in 2008 as a result o the introduction o dairycontainers to the system. Fi teen are voting members

ve each rom the beverage manu acturing sector, the depotsector, and the public. One is a non-voting member whorepresents the Alberta Government.

The BCMB continued to enhance its quality control toensure the public, depots, and manu acturers are satis edwith the system. Board committee work increased in 2009to ocus on key issues related to quality control andstreamlining the system.

The Return Rate Committee took on more activities tohelp reach our 85% beverage container return rate goal.As well, our rst Policy Issues Task Force developed severalnew BCMB policies to assist in streamlining the handlingcommission process. This was important to ensure the reviewprocess is predictable, cost-e ective, and timely.

Another exciting initiative that began in 2009 and thatI eel will greatly impact the decisions we make relatedto the recycling o beverage containers is the Li e CycleAssessment (LCA) o recyclable materials. The LCA will lookat alternative uses and dispositions o materials designated

or recycling or sa e disposal under the Environmental Protection and Enhancement Act .

The assessment will help BCMB and other recyclingorganizations make well-in ormed decisions regardingpotential end uses and management options or designatedmaterials. It will allow or a ull cost-bene t analysis o theenvironmental, social, and nancial impacts o alternativeuses or beverage containers a ter they have been sold

in a retail outlet. This will be tremendously bene cial to ourindustry, and Alberta Environments encouragement in thisarea has been appreciated.

One o the most exciting accomplishments o 2009was the integration o milk and dairy containers into thedeposit-re und system. Alberta is the rst jurisdiction inNorth America to do so and we are the only jurisdictionIm aware o that now accepts ALLbeverage containers orre und. Again, Alberta Environments leadership with thisinitiative needs to be recognized.

Id like to welcome the new members to the Board andthank all members or their hard work this year. Boardmembers participate on a number o committees thataddress several important issues and opportunities in thebeverage container industry in Alberta, and they do anexcellent job o representing their organizations and the publicin that regard.

I especially want to thank Environment Minister Rob Renner,ormer Alberta Environment Parliamentary Assistant Diana

McQueen, and sta o Alberta Environment or theirleadership and support.

BCMB sta and our stakeholders deserve thanks as wellor their support and commitment to ensuring Alberta

has the best beverage container recycling system possible one that will play a signi cant role in protecting ourenvironment and bene t Albertans or generations to come.

Ross RisvoldChair, Beverage Container Management Board

chairs r r


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ma agi g dir c rs r r

Albertas leadership in waste reduction and environmentalstewardship remains rm, and exciting new opportunitieswere seized and acted upon in 2009. Our growingpopulation o 3.6 million people and o ten volatile economycan present challenges to any industry, but the beveragecontainer recycling industry continues to adapt and improvein order to meet those challenges and remain success ul.

Our place as a leader in beverage container recyclingin North America is secure as we continue to makeimprovements and changes to the system to make iteasier to access and more e cient or customers.

Alberta achieved another rst in 2009, becoming the rst jurisdiction in North America (and the world) to include milk,cream, and meal replacement containers in the deposit-re und system. That means every beverage container sold inAlberta is now part o the system, meaning a deposit is paidon every container and a re und o that deposit is available

at depots across the province.

We experienced some challenges with the marking o dairycontainers or the June 1 integration that led to somecon usion or consumers, but overall the transition was asmooth one thanks to BCMB sta , depot sta , and ourindustry partners.

Return rates or a number o di erent milk containers rosesteadily in the months a ter they were added to the deposit-based system and it is anticipated they will continue toincrease as more Albertans become amiliar with returningempty milk containers to bottle depots.

We are now handling the highest volume o containers in thehistory o the BCMB. Over two billion containers are sold inAlberta each year and about 1.7 billion are being returned.The overall return rate or 2009 was 82%, up rom 77% in2008 and not ar rom BCMBs goal o 85% by 2011.

Achieving such return rates is made easier by ensuringall Albertans have easy access to a bottle depot. In 2009,ve new depots opened in Alberta our in rural areas

(Oyen, Andrew, Holden, and Myrnam) and one in Calgary.That brought the total number o depots in Alberta to 216by the end o 2009, Canadas largest network o beveragecontainer recycling depots. Permit applications are alsobeing reviewed or more bottle depots in Calgary.

The BCMB worked hard this year to ensure depots wereo ering the best service possible to customers. An emphasison progressive action and quality control led to increasedcompliance in the industry.

Our sta conducted 389 depot inspections, comparedto 238 in 2008. Depots that score higher than 80% oninspections are considered in ull compliance with thedepot criteria set by the Board. The average score in 2009was just over 87%. Depots not in ull compliance with depotcriteria are given permits with reduced time periods to allowthem to recti y any de ciencies.

Our Mystery Shopper program is another check andbalance as it helps determine the accuracy o re unds.The number o Mystery Shopper audits in 2009 was 448,compared to 292 the previous year, thanks to the hard work

o a community partner helping to conduct the program.Depots work diligently to provide accurate re unds andIm pleased that over 100 depots achieved a 100% accurateaudit in 2009.


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The BCMB also conducts retail inspections to ensurebeverage containers have been registered by manu acturers.BCMB sta conducted 97 retail inspections this year, upmore than 27% rom 76 inspections in 2008.

Operational changes have led to e ciencies as well.

The BCMB has improved how its nancial in ormationrom depots (Uni orm Code o Accounts) is collected andtracked, making our nancial reporting more current.

We continue to seek innovative practices and containercounting technology that will make the system moreenvironmentally riendly. In 2010 we will complete aBenchmarking o Best Practices Study on the industryto explore innovation in other jurisdictions.

2009 was also a signi cant year or the Board in relation toour governance and decision-making processes, as outlinedin Chair Ross Risvolds report. The expanded board allows

or more public input and stakeholder representation, andbylaw changes allow the Board to more e ectively governthe beverage container recycling program.

We also continue to increase the level o cooperation withour key stakeholders. A critical stakeholder mapping sessionwas held in December with the assistance o the AlbertaResearch Council.

Another important milestone was the implementation o changes to how handling commissions are set, resulting inmore streamlined processes, the use o mediation, andupdated rules and bylaws. The Handling Commission review,

which must be completed once every three years, will beginin 2010. The last review was completed in December 2007.

Perhaps the best measure o our success is not only howmany people recycle their beverage containers, but also howthey view their experience as they return those containers totheir bottle depot.

A survey o Albertans in November 2009 ound almost 99%

o those surveyed recycle at least some o the time and themost popular method o doing so is through bottle depots(87%). The survey also indicated high ratings or importanceo and satis action with the location o depots, the depositreceived, cleanliness o the depot, wait time, and protectingthe environment (see more on survey results on page 23).

Clearly the improvements we are making are working andAlbertans are embracing the opportunity to reduce wastein land lls by recycling. Its exciting to know such a highpercentage o Albertans are committed to recyclingbeverage containers and the BCMB will continue to makeit convenient and e cient or them to do so.

Id like to take this opportunity to thank the sta o theBCMB and the Board o Directors or their commitmentand hard work in 2009 and our many stakeholders ortheir support and assistance with helping us maintain ourleading-edge approach and ensuring Albertas beveragecontainer recycling system remains one o the best andmost comprehensive in North America.

John BachinskiManaging Director, Beverage Container Management Board


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BCMB 2009 A ual Rep r4 < CASA 2009 A ual Rep r

vISIOnt b h ad r i s wardi g b v rag c ai rs mi imiz h ir im ac h vir m .

MISSIOnt g v r a adi g b v rag c ai r ma ag m sys m ha is i va iv , acc ssib a d c s - c


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2009-2011 b si ss a s mmary

The Beverage Container Management Board committedto achieving the planned results laid out in its 2009-2011Business Plan.

The Boards Plan or the period January 1, 2009 throughDecember 31, 2011 was prepared in accordance withthe requirements o the Beverage Container RecyclingRegulation, as amended, which was enacted under theEnvironmental Protection and Enhancement Act and theorganizations bylaws.

All o the BCMBs existing and proposed policies and

procedures as o May 2009, and all o the Boardsaccountability obligations and relationships were consideredin preparing the Business Plan. As well, the Governmento Albertas and Department o Environments Business Planand priorities were taken into account in the development o the 2009-2011 Business Plan.

The BCMBs programs and goals contribute to the provincialgoal o sustaining the high quality of Albertas environment .The BCMB is a material example o the shared responsibilityo citizens, communities, governments, and industry orstewardship o the environment. A key outcome o thestewardship o beverage container recycling is theminimization o waste, as well as recycling leadership in thebeverage container sector.

The BCMBs programs and goals also contribute to AlbertaEnvironments goal o having Albertans, communities,governments and industry working as good stewardsof the environment.

The BCMBs stated mandate rom its incorporatingdocuments is to establish, maintain and administer a waste minimization and recycling program for beveragecontainers . It achieves this by meetings its objectives o :

improving container recycling return ratesreducing the environmental impact o beverage containerscost e ectiveness and transparency in the beveragecontainer recycling systemgoverning and administering the beverage containerrecycling system


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goal IMPROve COntaIneR ReCyClInG RetURn RateS

S r gi s1a. Re-establish the Return Rate sub-committee o the

Board to take the lead in identi ying and planning orimplementation o speci c strategies to improve containerrecycling return rates. The membership will includerepresentation rom the Collection System Agents(CSAs) as well as depots and beverage manu acturers.

1b. Get in ormed. The Board will work with the CSAsand depots in an analysis o the existing return ratesby segment geography, container stream, consumergroup or other criteria to identi y speci c weaknessesin the program.

1c. Undertake an internal and external analysis andbenchmarking o best practices in beverage containerrecycling. The analysis will provide options or the Board,the CSAs, and depots to consider or Albertas containerrecycling system.

P r orm c M sur s

R ur s p r C pi

M sur 2008 ac u 2009 ac u 2010 For c s 2011 For c sReturns per capita 461.39 490.39 497.69 518.44

Note: Returns per capita are calculated by dividing the most recent Alberta Government population estimate by total containers returned.

> 2009-2011 business plan summary

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2008 2009 2010 2011F r casAc a

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77%82% 82% 85%

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2005 2006 2007

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79%74% 76%

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2004

80%

2002 2003

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81% 81%

numb r o Co i rs R ur

Notes: The number o containers returned iscompiled rom monthly statistics provided by thetwo Collection System Agents, ABCRC and ABCC.

Projections or 2010 to 2011 are based on a 2%increase in container sales with container returnsat the targeted return rate o 82% or 2010 and 85% or 2011.

Note: Milk containersintroduced to systemJune 1, 2009.


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Progr ss o S r gi s1a. The Return Rate Committee has been re-established

and has set a Terms o Re erence. In the coming year,this Committee will work closely with stakeholders,

ocusing on increasing consumer awareness, improvingaccessibility or customers, and addressing customerconcerns regarding service or other unintended barriersto container recovery.

2009 R ur R s S s b Pro uc

2009-2011 business plan summary

alberta recycling deposit system

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