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AMRC 2008 Fall Conference Waste Diversion Ontario Update

AMRC 2008 Fall Conference Waste Diversion Ontario Update. October 24, 2008. Presentation Outline. Update on Blue Box Program Blue Box review Next steps on best practices Plastics market strategy Continuous Improvement Fund Comments on MHSW & WEEE Update on Used Tires Program

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AMRC 2008 Fall Conference Waste Diversion Ontario Update

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  1. AMRC 2008 Fall ConferenceWaste Diversion Ontario Update October 24, 2008

  2. Presentation Outline • Update on Blue Box Program • Blue Box review • Next steps on best practices • Plastics market strategy • Continuous Improvement Fund • Comments on MHSW & WEEE • Update on Used Tires Program • WDO Board Restructuring

  3. Blue Box Review • Minister directed WDO to • Conduct a review of BBPP • Use EPR principles to form framework for review • Consult with relevant stakeholders • Submit report with recommendations • By March 20, 2009 • Link to Minister’s correspondence on WDO website • Under Latest News items

  4. Blue Box Review Issues • Program performance • Program has achieved 63% diversion • Target for next 5 years • Material specific performance • Targets by material for next 5 years • Consistency across municipalities • For materials collected • Problematic wastes e.g. 15 litre PET bottle • Managing through BBPP or other mechanisms

  5. Blue Box Review Issues • Blue Box wastes from IC&I • If & how BBPP could be extended • Blue Box wastes collected outside of Blue Box system e.g. garbage & litter • Collection options beyond municipal curbside & depot • Stewardship for these options & materials disposed as waste or litter • Additional Blue Box wastes • Reconsider BBPP definition to include other products covered by Blue Box Waste Regulation

  6. Blue Box Review Issues • Environmentally responsible management • From collection to final market • Stewardship fees • Revising fees to increase diversion & recycled content • EPR funding • Moving BBPP towards full EPR funding • Impact to management of municipal recycling programs

  7. Blue Box Review • WDO consultation process likely to include • Survey of Ontario residents • Number surveyed sufficient to be statistically significant • Facilitated meetings with • Stewardship Ontario Board • AMO-AMRC Waste Management Task Force • OWMA Board • ENGOs • Other industry associations • Facilitated MIPC-Blue Box retreat

  8. Blue Box Review • WDO consultation process likely to include • Posting of draft report for comment • Workshop/webcast to review draft report • Written submissions during consultation period • To BBPPReview@wdo.ca • Consultation plan & backgrounder • Posted on WDO website • Likely early November

  9. Blue Box Best Practices • MIPC-Blue Box established • BP Model Working Group • Review BP Study cost model parameters, data inputs, analog programs • BP Funding Distribution Working Group • Develop methodology based on BP • Under consideration • Base funding for all programs + Enhanced BP funding calculated using system of points for best practice activities • More information should be available at next ORW

  10. More Blue Box • Plastics market strategy • Stewardship Ontario • Issued REOI – received 7 responses • Issuing RFP for new processing capacity for rigid packaging # 1 to # 7 & film plastic • WDO administration of CIF • Entered into agreement with SO & AMO to support CIF Director being employed by AMO • Approved Strategic Plan, 2008 Operations Plan • Delegated authority to MIPC-BB & CIF Committee to implement Operations Plan

  11. MHSW • Phase 1 implementation issues • Delayed execution of municipal agreements & development of commercial collection system • Some retailers charged visible fees on July 1 • Consumers paying new fees but no new services • Phase 2 development issues • Exploration of substantive issues • Collection options to provide program accessibility • Residential collection, incentives, retail take-back • Transition from shared to full responsibility

  12. WEEE • Phase 1 implementation issues • Service providers registering • Audits of processors to begin shortly • Concerns among some processers regarding methodology to allocate WEEE; may limit investment in new capacity/technologies • Phase 2 development issues • Orphan equipment e.g. typewriters • Likely higher costs due to lower material revenue • Likely lower diversion due to higher % of plastics • For which there are currently limited 3Rs markets

  13. Used Tires • Program Request Letter (PRL) • Brand owners & first importers • On-road & off-the-road (OTR) tires • 90% diversion within 5 years • Higher value uses & green technology • Address stockpiles as a priority • Vendor qualification standards • Tracking & auditing

  14. Used Tires - PRL • Minister directed • “There shall be a single fee paid by the stewards that is associated with the program” • “Collectors participating in program shall not charge consumers additional fee for management of tires following removal from vehicle” • Since • Stewards may choose to pass fee to customer as visible fee on new tire • Customers should not be charged an additional fee by retailers or municipalities for management of scrap tire

  15. Used Tires – Current System • Money & tires track together • Retailers charge consumers up to ~$5/tire • Collectors pay haulers who then pay processors • System drives lowest cost management choice • As a result, tires are directed to TDF & Ontario processors lack feedstock

  16. Used Tires – Program Plan • Stewards pay fees to OTS • OTS uses fees to pay for “collecting, storing, transporting, processing and marketing” scrap tires

  17. Issues Under Discussion • Various processing incentives • For crumb rubber by mesh size & fabricated products • Possibly manufacturing incentive to encourage creation of new products & market demand • Hauler incentive to pick up & transport • Likely on a distance & quantity basis

  18. Issues Under Discussion • How should haulers be paid? • Directly by OTS • Through collectors or processors • Possibly consolidation incentive • To accept tires from local haulers • To manage seasonal surge • Should program offer incentive to collection agents? • Or will collectors provide service at no charge? • Value of each financial incentive

  19. Used Tires - Challenges • Layering stewardship program onto existing marketplace • Mature collection & hauling system • >8,000 collection points • ~40 hauling companies • 3Rs processing capacity • < 10 operating companies • With reported annual capacity for 5 to 9 million tires • Compared to ~12 million tires generated annually

  20. Used Tires - Challenges • Used Tires Plan due to Minister by December 31, 2008 • OTS asked WDO to request extension • WDO Board agreed to request 2 month extension to February 27, 2009 • Decision at October 22 Board meeting • Request submitted to Minister October 23

  21. WDO Governance • Restructured board • 5 Directors jointly appointed by 14 industry associations • 3 Directors jointly appointed by AMO & RPWCO • 1 Director appointed by City of Toronto • 1 Directly jointly appointed by RCO & OEN • 1 Directly appointed by Minister from MOE • 5 Directors appointed by Minister to represent public interest = 3 groups of Directors – 5 industry – 5 other stakeholders – 5 public interest + Director of Waste Management Policy Branch – who will abstain from voting

  22. WDO Governance • Board retreat on November 26/27 • Orientation for new Directors • Opportunity for interaction among returning & new Directors • Consideration of go-forward operational & policy issues • First meeting of new Board on December 17

  23. WEEE Contacting WDO Email Datacall Datacall@wdo.ca MHSW Report MHSWReport@wdo.ca BBPP Review BBPPReview@wdo.ca Executive Director glendagies@wdo.ca Telephone 416 226 5113 Fax 416 226 1368 Website www.wdo.ca

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