industry consultation workshop i: new ontario waste diversion funding obligations
TRANSCRIPT
New Ontario Waste Diversion Funding Obligations
FOR CONSULTATION ONLY
• The numbers presented today are not final figures
• They are the best available planning estimates to be used in the Industry Consultation process
• They must be reviewed and finalized by the Stewardship Ontario Board of Directors
New Ontario Waste Diversion Funding Obligations
REQUIRED ELEMENTS OF A BLUE BOX PROGRAM PLAN
• Pay 50% of Blue Box net costs
• Funding allocation formula that:
Recognizes regional variations Provides incentives to encourage
program effectiveness & efficiency
New Ontario Waste Diversion Funding Obligations
• Funded research & development program to improve effectiveness & efficiency
• Funded program for market development
• Funded program for education and public awareness
• Fee collection mechanism to meet these costs
REQUIRED ELEMENTS OF A BLUE BOX PROGRAM PLAN
New Ontario Waste Diversion Funding Obligations
MATERIAL DESIGNATIONS
Designation Examples
Printed Paper Newspapers, flyers, magazines, catalogues, directories & other printed paper deliveries to the home (envelopes, advertising, notices)
Paper Packaging
Corrugated & paperboard boxes, paper bags, molded pulp trays
Glass Sealed glass containers
New Ontario Waste Diversion Funding Obligations
MATERIAL DESIGNATIONS
Designation Examples
Ferrous Packaging
Sealed food, beverage, aerosol, paint containers
Aluminum Packaging
Sealed food & beverage containers. Flexible & semi-rigid foil packaging
Plastics Bottles, jugs, tubs, cups, lids, bags, wraps, pouches, trays, blister & other consumer packaging
New Ontario Waste Diversion Funding Obligations
MATERIAL DESIGNATIONS
Designation Examples
Laminate Packaging
Two or more types of paper, plastic, metal or glass packaging that cannot be easily separated
Textile Packaging
Cloth or synthetic sacks & bags
New Ontario Waste Diversion Funding Obligations
DESIGNATED “STEWARDS”
The brand owner or first importer into Ontario of these materials
Note: Does not include transport packaging
New Ontario Waste Diversion Funding Obligations
COMPLIANCE OPTIONS
Industry Choice:
• Companies can join an approved stewardship organization to collectively contribute 50% of the net cost of the Blue Box program, or;
• Seek approval from Waste Diversion Ontario to
implement a program to recover their own packaging and printed paper and pay full costs
Report on the performance of the plan each year WDO and MOE may charge fees to evaluate and
monitor the ISP Plan must have a performance equal to or better
than that of Stewardship Ontario
New Ontario Waste Diversion Funding Obligations
BLUE BOX PROGRAM PLAN Development Process
• AMO/IFO task group struck to negotiate key issues
New Ontario Waste Diversion Funding Obligations
• Plan development process approved by WDO September 24th
• Materials & Packaging Advisory Committee
• Printed Paper Sub-Committee
• Data Reporting Advisory Committee
BLUE BOX PROGRAM PLAN Development Process
New Ontario Waste Diversion Funding Obligations
• Industry, municipal and public consultation programs
• Website: “www.stewardshipontario.ca”
• Weekly or Bi-weekly Stewardship Ontario Board Meetings
• Draft plan to WDO Board January 21st
• Final Plan to Minister February 28th
BLUE BOX PROGRAM PLAN Development Process
New Ontario Waste Diversion Funding Obligations
BASELINE DATA Generation Planning Estimates
Material Category Tonnes (2001)
Newspaper
Other Printed Paper
Paper Packaging
Plastics
Ferrous
Aluminum
Glass
Laminates
529,800
250,900
259,500
172,600
68,600
27,900
179,500
149,200
Totals 1,638,000
New Ontario Waste Diversion Funding Obligations
BLUE BOX PROGRAM Cost Components
• Municipal transfer payments (90%)• Funded market development program• Funded promotion and education
program• MOE enforcement costs• Program design and startup• Program implementation and
administration• WDO costs over and above LCBO $1M
New Ontario Waste Diversion Funding Obligations
PROJECTED COSTSFirst 12 Months
Payments to municipalities
Program development, start-up, implementation & administration
$31,250,000
$3,342,000(15 months)
Total Program Costs $34,592,000
LCBO Contributions
CNA/OCNA In-kind
$5,000,000
$1,300,000
Additional Cash Required $28,292,000
New Ontario Waste Diversion Funding Obligations
COST ALLOCATION METHODOLOGY
Will not be a sales based formula Material specific cost allocation
taking into consideration:- Total tonnes generated- Material specific recovery rates- Cost to manage each material (ABC)- Incentives to increase recycling
New Ontario Waste Diversion Funding Obligations
DATE OF OBLIGATION
Current planning date:
May 1, 2003
New Ontario Waste Diversion Funding Obligations
DE MINIMIS PROVISION
• “The program will include a rule to exempt stewards under subsection 30(1)(e) of the Act based on de minimis criteria”
• Proposed de minimis provision – less than $2 million Ontario sales or minimum tonnage threshold (t.b.d.) exempted
New Ontario Waste Diversion Funding Obligations
REPORTING OPTIONS
• Options: Option 1 – report actual Ontario data Option 2 – report actual national data Option 3 – use Stewardship Ontario
“Quick Calculator”
• There will be an opportunity to develop sector specific quick calculators
New Ontario Waste Diversion Funding Obligations
PROPOSED FUNDING FORMULA METHODOLOGY
Step 1 –
• Determine the total quantity of Blue Box wastes generated
• Current planning estimate: 1,638,000 tonnes
New Ontario Waste Diversion Funding Obligations
Step 2 –
• Determine total costs to Stewardship Ontario in Year-One
• Current planning estimate: $ 34,592,000
PROPOSED FUNDING FORMULA METHODOLOGY
New Ontario Waste Diversion Funding Obligations
Step 3 –
• Allocate these costs across the designated blue box materials to determine a per tonne/per kilogram levy rate
Current planning methodology uses three weighted factors:
Recovery rate for each material category – 45% Net cost to manage each material category – 40% Equalization factor (had all materials been
recovered at the same rate) – 15%
PROPOSED FUNDING FORMULA METHODOLOGY
New Ontario Waste Diversion Funding Obligations
Step 4 –
• Assigns a de minimis & compliance factor to each material category
PROPOSED FUNDING FORMULA METHODOLOGY
New Ontario Waste Diversion Funding Obligations
MATERIAL LEVY RATESPreliminary Levy Estimates
Material
Categories
Preliminary Ranges (cents/kg)
Newsprint
Printed Paper
Paper Packaging
Plastics
Laminate Packaging
Ferrous
Aluminum Foil
Glass
0.03 - 0.04
1.4 - 1.7
4.2 - 4.8
6.2 - 7.3
4.1 - 5.9
5.0 - 5.3
4.2 - 4.9
3.5 - 3.7
New Ontario Waste Diversion Funding Obligations
MATERIAL LEVY RATESNot Yet Set
• Worked examples from proposed methodology will be presented during the December 17th web-cast
• Posted on website December 12th
New Ontario Waste Diversion Funding Obligations
OBLIGATED TONNAGEOption 1
• Stewards will declare and report that portion of total printed paper and packaging that is sold to consumers through retail, vending and direct distribution channels
• Printed paper & product packaging sales produced exclusively for non-residential use is exempted
New Ontario Waste Diversion Funding Obligations
OBLIGATED TONNAGEOption 2
Consumable/Quick Turnover Product
Report all printed paper & packaging that is produced primarily for households/consumers, regardless of sales or distribution channels
Durable & Semi-Durable Products
Stewards to determine that portion of printed paper & packaging sold into commercial accounts & deduct these from the fee calculations
New Ontario Waste Diversion Funding Obligations
OBLIGATED TONNAGEExemptions
• Shipping & transport packaging that is NOT intended for use or management in the home (e.g. shipping boxes recycled by grocery retailer, plastic pallet wrap)
• Industrial use and bulk packaging that is not intended primarily for household consumer use (e.g. bulk flour bags)
New Ontario Waste Diversion Funding Obligations
REGISTRATION PROCESSSUBMISSION OVERVIEW SCREENS (INTERNAL AND EXTERNAL)
ACCESS ONLY TO AUTHORIZED USERS - PRIMARY CONTACT SEES ALL
Company: XYZ CORPORATION
Subsidiary Paper Polycoat Plastics Ferrous Aluminum Glass Laminates FINAL
XYZ Company 15 empty empty empty empty empty empty N
BBB Company 0 empty empty empty empty empty empty N
CCC Division** 321 17 20 50 31 22 55 Y
DDD Company 15 17 10 0 0 0 0 Y
Organization Totals 351 34 30 50 31 22 55
**Estimated by Quick Calculator
Ok FINAL Only to be seenby Primary Contact
Pop up Contact infoPARENT CO. ALWAYS ON FIRST LINE
Drill down on underlined cells to reach pop up screen.See Task 2.1.1 for Pop Up Screens
Always "N" until "Y"entered
No drill down capablity with Quick CalculatorInformation populated by system
Time StampDate StampUser Stamp
on all "Y" cells
Link to Task 1-10.1Pop up Declaration Form Task 2-13
New Ontario Waste Diversion Funding Obligations
REGISTRATION PROCESS
Pop up screenCategories - ABC Company
(1) (2)PAPER National OntarioNewsprintMagazines/Directories 5 4Corrugated Paperboard 2 1Boxboard 5 4Kraft Bags/Sacks 3 2Moulded Trays/Dunnage 0 0 Total 15 11
Last updated on:Last updated by:
Cancel Done
Pop up definitions for all categories and sub categories displayed in Task 2.5
Corrugated Paperboard: Popup definition of all categories
#'s default to "empty" if null
Set all Empty (null) unless to zero
New Ontario Waste Diversion Funding Obligations
ROLE OF WDO VS. IFO
WDO Board continues to discuss what functions to house within the WDO itself versus the roles and responsibilities of the designated IFO
AMO has proposed that these responsibilities should be held within the WDO but paid for by Industry Funding Organizations:
Measuring and reporting on progress towards targets Public consultation on the plan Public education and awareness activities Calculation of funds due to individual municipalities Distribution of these funds to municipalities Conducting and interpreting data calls related to material recovery rates Conducting and interpreting data calls related to the financial net cost
calculation Administering a program effectiveness and efficiency fund
The WDO has not yet made a decision on this key issue.
New Ontario Waste Diversion Funding Obligations
KEY DATES TO REMEMBER
• Plan submitted to Minister February 28th
• Minimum 30-day posting on EBR (Environmental Bill of Rights)
• Ministerial approval expected within 60 days of plan submission
New Ontario Waste Diversion Funding Obligations
WHAT YOU SHOULD DO TO PREPARE
• Identify designated materials
• Quantify those materials (audit)
• Budget for 2003 based on the estimated levies that will be identified in the Plan - and a projected start date of May 1st, 2003