RPRA Update Holly Lafontaine Manager of Programs Planning

RPRA Update Holly Lafontaine Manager of Programs & Planning May 28, 2019

Road Map 1 EPR 2 What’s changing in Ontario 3 WDTA program updates 2

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Extended Producer Responsibility • EPR is one of the policy tools that can incentivize resource recovery • How EPR can support a shift towards Circular Economy: 1. Supporting infrastructure development and financing 2. Driving product returns to increase scale and cost effectiveness of reverse logistics and processing 3. Rewarding innovative approaches to achieving product or material recovery targets 4

Maximizing value retention 5 https: //www. circle-economy. com/wpcontent/uploads/2016/09/finance-white-paper-20160923. pdf

Maximizing value retention 6 https: //www. circle-economy. com/wpcontent/uploads/2016/09/finance-white-paper-20160923. pdf

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Oils Fibers Pectin Flavonoids 8

https: //www. enviro-pac. com 9

https: //www. enviro-pac. com 10

Ontario: new Individual Producer Responsibility (IPR) model Resource Recovery and Circular Economy Act, 2016 (RRCEA) Responsibility of producers • Each producer is individually responsible for meeting mandatory and enforceable requirements • Flexibility in how to meet requirements to allow innovation Compliance oversight and enforcement by the Authority • A registry to securely obtain and store data from reporting organizations • Enforcement capabilities 11

What’s changing in Ontario Going from: Stewards/producers collectively responsible for the end-of-life management of products and packaging To: Stewards/producers individually responsible for the end-of-life management of products and packaging A system centrally managed by IFOs/ISOs A system managed by multiple competing producer responsibility organizations (PROs), and/or producers managing their own products and packaging Performance targets outlined in a Program Plan or Industry Stewardship Plan Mandatory and enforceable performance requirements outlined in regulations

What’s changing in Ontario Going from: To: A supply chain operated according to a Program Plan or Industry Stewardship Plan A supply chain operated without a Program Plan, resulting from commercial negotiations within the parameters of a new regulation IFOs/ISOs collect system data and the Authority oversees The Authority collects system data through a secure registry to enforce individual producer compliance The Waste Diversion Transition Act, 2016 (WTDA) The Resource Recovery and Circular Economy Act, 2016 (RRCEA)

Tires

Overview of Transition - Key Changes • On December 31, 2018 the Used Tires Program operated by Ontario Tire Stewardship came to an end • On January 1, 2019 a new, mandatory tire recycling system came into effect and tire producers (formerly called “stewards”) became individually responsible for managing tires at end of life • New system is overseen by RPRA

RRCEA used tire market Registration statistics: • 593 producers • 6 producer responsibility organizations • 32 processors • 18 retreaders • 132 haulers • Over 6, 000 collection sites

RRCEA Tire Collection System • Every producer shall establish and operate a collection system for tires • Tires Regulation provides options for the producers • For example, based on population or retail sites • Population requirement states, in local municipalities with a population of 1, 000 or more: • at least one tire collection site if the population is less than 3, 000, or • if the population is 3, 000 or more, at least one tire collection site for every 3, 000 people or portion thereof • in territorial districts with a population of 1, 000 or more 1 site

RRCEA Promotion & Education Requirement to publish and clearly display on their website: • The locations of the producer’s tire collection sites for each tire type, where consumers may return tires • A description of any collection services provided by the producer that are available other than at a tire collection site • A description of the resource recovery activities engaged in by the producer in the course of managing the producer’s collected tires

WDTA Program Updates

OTS Wind Up • On April 2, 2019 The Minister directed OTS to amend its Wind-Up Plan to establish a program for the return of surplus funds to tire consumers • OTS held consultation sessions on May 7 th and May 9 th • On April 30, 2019 OTS received additional information from Canada Revenue Agency and OTS is in the process of reviewing the status of program surplus funds • OTS will submit a report to RPRA before a program for the return of surplus funds to tire consumers is finalized

WEEE Program Wind Up • OES submitted Wind Up Plan Dec 2018 • Steward fee elimination implemented Feb 1 st for the remaining duration of the program • Authority consulted on the wind up plan and surplus fund options • Minister requested the Authority to consult on a surplus of funds of >$25 M • Consultation showed wide support for extension of the program and prolongation of the fee elimination • The Authority reported back to the Minister April 30 th • Authority is reviewing feedback obtained on the overall Wind Up Plan and preparing submission to the Authority Board for consideration of approval

WEEE Wind Up Plan (WUP) Development and Approval Today New regulation development Ministry of Environment, Conservation and Parks WUP drafting OES WUP consultation OES Plan assessment RPRA Regular program operations Minister’s Wind Up direction letter Feb 8, 2018 Registration with RPRA System Participants WUP consultation & approval RPRA Operation of WEEE program under the Wind Up Plan RPRA WUP approval Expected June 2019 Wind up of OES Program wind up June 30, 2020

WEEE and Batteries Reg • • Material designated Collection and access Management Promotion & Education Find the draft Reg and react on: https: //ero. ontario. ca/ Ministry seeking feedback until June 23, 2019

MHSW Program Wind Up • SO consulted on draft Wind Up Plan and received feedback until May 1, 2019 • SO must submit the MHSW Wind Up Plan to the Authority by end of June • Battery Wind Up on a separate timeline to coincide with the WEEE wind up

MHSW Wind Up Plan (WUP) Development and Approval Today New regulation development Ministry of Environment, Conservation and Parks WUP drafting SO WUP consultation SO Plan assessment RPRA Regular program operations Minister’s Wind Up direction letter April 12, 2018 Registration with RPRA System Participants WUP consultation & approval RPRA Operation of WEEE program under the Wind Up Plan RPRA WUP approval Expected Dec 2019 Program wind up Dec 31, 2020 Battery program wind up June 30, 2020

Blue Box Program • 2017 Consolidated Datacall Report available at rpra. ca/datacall • All 2017 Blue Box Audit reports have been sent to the 20 selected programs

Blue Box Program • 2018 Datacall submission closed April 26, 2019 • RPRA now conducting verifications on data submitted • Steward Obligation methodology and CIF Strategic Plan and budget will be considered at June 27 RPRA Board Meeting • Amended Blue Box Program Plan dormant since February 15, 2018 • Currently no new direction from the Minister for the transition of the Blue Box Program

Thank you. Questions?