Issue 1, August 11, 2009
Welcome to Stewardship Ontario’s In the News!
With this inaugural issue of In the News! Stewardship Ontario is presenting a brand new
e-newsletter for Blue Box and Municipal Hazardous and Special Waste (MHSW) stewards.
In the News! has been created to inform you of important developments in public policy and recycling that affect your company and your costs, and to advise you of Stewardship Ontario’s ongoing efforts to improve the performance of Blue Box and MHSW recycling in Ontario.
This newsletter will be a sister publication to the more familiar “Need to Know,” which will continue to provide you with critical information on your financial reporting and legal obligations.
We think In the News! will help us to serve you better. But we’re interested in hearing what you have to say about it. After you’ve seen a few issues, let us know what you think.
Sincerely,
Gemma Zecchini
CEO
Stewardship Ontario
gzecchini@stewardshipontario.ca
2010 Fee Setting Underway for Blue Box & MHSW
Preliminary Fees to be presented Thursday, September 10
Planning is underway for an information session to present preliminary 2010 fees for Blue Box and Phase 1 MHSW materials on Thursday afternoon (1:30 to about 4:30 p.m.), September 10. The meeting will take place at the Novotel Toronto Centre Hotel. More information along with a link to registration will be circulated soon through Need to Know which will follow in a day or so.
Increase expected in 2010 Blue Box Fees
Waste Diversion Ontario has advised Stewardship Ontario that 50% of the reported municipal net cost for the Blue Box system for 2008 is $87.8 million. However, stewards’ obligation for 2010 has been reduced by $4.1 million to $83.7 million, to better reflect what the reported cost would be if recognized “best practices” were more widely adopted. This change was made possible through Stewardship Ontario’s ongoing efforts to ensure that the Blue Box funding program provides incentives for municipalities to control costs.
Despite these efforts, this year’s obligation has increased by 6.3% over the previous year, due to recent economic factors and changes to the mix of material collected for recycling.
Over the past year, roughly one third of the 30 largest programs in Ontario either renegotiated existing collection contracts or entered into new agreements at higher costs. The 2008 spike in the price of oil, being a major cost driver of collection services, resulted in increased fuel cost surcharges, which have a significant impact on the overall cost of a transportation-intensive activity like recycling.
In addition, shifting consumer behaviour and changes to product packaging have increased the volume of materials that are comparatively more expensive to collect and recycle.
Although the full impact of the increased costs are still being analyzed, early indications are that Blue Box fees will have to increase in 2010.
Phase 1 MHSM Projected Deficit may be Significantly Lower
Analysis continues on the year one MHSW program start up costs but early signs now suggest that the projected deficit associated with the collection and processing of paint, as described in the draft MHSW Consolidated Plan, may be significantly lower than anticipated. Costs related to the first 12 months of program operation (July 1, 2008 to June 30, 2009) are not yet finalized but Stewardship Ontario expects to present draft MHSW fees at the September 10 meeting that reflect a more positive deficit position. Once all of the costs have been calculated and the actual deficit situation is clear, Stewardship Ontario will apply to Waste Diversion Ontario to revise the fees specified in the Draft MHSW Consolidated Plan before fee payments are due.
While the Consolidated MHSW Plan is expected to take effect on July 1, 2010, new fees for Phase 1 materials will be required on January 1, 2010. See Consolidated MHSW Plan at the Environmental Registry.
As noted in the Consolidated Plan, Stewardship Ontario also is taking steps to reduce the cost of managing MHSW by pursuing opportunities to optimize its transportation and processing systems.
Joint Stewardship Ontario/CIF Project Aims to Improve Markets
for Plastics
Rigid (non-container) plastics and film have been an ongoing challenge for recycling programs throughout the world.
Recycled material is, in its simplest form, a commodity like any other. Success depends on delivering a stable and consistent supply of “product” at good value.
Recycling programs have been reasonably successful at delivering fibres (newsprint and other paper products), metals, and to a lesser extent glass and container plastics to markets that will use them as an input to new products.
Rigid and film plastics have been much more challenging, primarily because of the standard of quality demanded by manufacturers of plastic products. “Plastic” is a generic term for a wide variety of very different commodities that have very different properties and uses. Unfortunately, these different materials tend to get mixed up during the collection process, and it is difficult and expensive to sort them for recycling.
However, Stewardship Ontario and the Continuous Improvement Fund (CIF)—a special fund created by setting aside 20% of stewards’ annual share of blue box net costs—have committed to two demonstration projects that hold promise for the future of plastics recycling. At present, the recycling rate of plastics is low compared to other materials. For example, the current recovery rate of plastic packaging is 22% compared to 58% for paper-based packaging and 56% for steel packaging.
The Ministry of the Environment and Waste Diversion Ontario have made it clear that they expect improvements to plastics recovery and recycling in the future. If successful, the innovations being financed in part by Stewardship Ontario and CIF could dramatically increase plastics recovery and diversion in Ontario.
Stewardship Ontario and CIF also are working with the National Association for PET Container Resources (NAPCOR) to test the re-processing and marketing of PET thermoform containers, e.g. PET clamshells and trays from US and Ontario commercial recycling operations. Initial tests begin this summer.
Two years ago, Stewardship Ontario conducted a similar project that successfully improved markets for blue box glass. A Unical plant is now open in Brampton that is processing mixed broken glass collected through municipal blue box programs.
Draft Consolidated MHSW Plan Submitted to Minister: “One-stop drop” Approach Builds Solid Foundation for Future
Following seven months of intensive work and more than one hundred meetings with industry representatives of the designated materials and other stakeholders, Stewardship Ontario submitted the Consolidated MHSW Program Plan to the Minister of the Environment on July 31, as required under the Waste Diversion Act, 2002 and the Minister’s program request letter of July, 2008. This program incorporates a consolidated, “one-stop drop” approach to program management which we believe will build a solid foundation for waste diversion that will serve Ontarians well for years to come.
If you are a current or soon-to-be MHSM steward, the key pieces of information for you to note are:
- the expected start date of the plan is July 1, 2010
- stewards will be required to register by February 1, 2010
- first payment of fees for the consolidated program would be expected on
July 31, 2010
- for budgeting purposes, the steward fees are displayed on page 89, Vol. 1 of the program plan. It can be accessed at the following: http://www.ene.gov.on.ca/envision/env_reg/er/documents/2009/010-7325.pdf
- as noted in the item on MHSW fees above, it is now anticipated the Phase 1 MHSW deficit will be lower than projected; before July 1, Stewardship Ontario will apply to the WDO to revise fees accordingly.
Stewards’ Opinions to be Sought in Survey
Stewardship Ontario is committed to improving its transparency and accountability to you. For example, we intend to communicate better and more often, set clear and measurable goals and report to you on our progress. As noted, this e-newsletter is, in part, the first step in that direction.
As a second step, Stewardship Ontario will be seeking your feedback on a number of issues through an online survey so that we can better understanding your needs and expectations. More information on the survey will follow in future communiqués.
To inquire about or comment on any of these news items, please email: bmcconnell@stewardshipontario.ca or phone Barbara McConnell at 416-323-0101, ext. 155.
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