Report to: General Committee                                                     Report Date: March 23, 2009

 

 

SUBJECT:                          Blue Box Program Plan Review

PREPARED BY:               Claudia Marsales, Ext. 3560

 

 

RECOMMENDATION:

  1. The report entitled “Blue Box Program Plan Review” be received;

 

  1. That Council endorse the Inter-municipal Waste Diversion Committee’s February 27, 2009 comments on the WDO – “Draft Preliminary Report for Consultation Review of the Blue Box Program Plan”;

 

  1. That prior to finalizing the preferred options for the new Blue Box Program Plan, the Ontario Ministry of the Environment be requested to:

 

(a) more clearly define preferred options/models for advancing Ontario’s blue box material recycling system be provided and that extensive and meaningful Province-wide consultation be conducted with the public, municipalities and interested groups;

 

            (b) ensure current service level expectations by the public are maintained and                  ideally enhanced in the future;                 

 

  1. That staff prepare status reports to Council on the new Blue Box Program Plan review process including financial and service level implications;

 

  1. That a copy of this Report be forwarded to the Ministry of the Environment, and Waste Diversion Ontario.

 

  1. That staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

Not applicable

 

PURPOSE:

The purpose of this report is to update Council on the Blue Box Program Plan review process and potential impacts to Markham’s collection contract and blue box recycling program.

 

BACKGROUND:

The Blue Box Program Plan was approved by the Minister of the Environment on December 22, 2003.  The 5 year plan established Industry (WDO) 50% funding for the municipal blue box system. In 2008, Markham received $500,000 and funding support for pilot projects.

 

The 5 year funding program ends in 2009/10. To begin planning for the next 5 year program, the Ministry of the Environment issued a discussion paper called ‘Toward a Zero Waste Future Review of Ontario’s Waste Diversion Act, 2002’. The Minister directed the review use the principles of full ‘Extended Producer Responsibility’ under which producers take full financial responsibility for the management of their products. The proposed changes call for:

 

ü      100% industry funded program to replace the current 50/50 shared model

ü      increased focus on waste reduction

ü      expanding diversion to the Industrial, Commercial & Institutional sector

ü      increases to diversion targets

ü      mandatory user pay for garbage

ü      expansion of the list of materials to be recycled.   

 

The Minister directed that the review be completed in a manner that is transparent and incorporates consultation with all relevant stakeholders, including members of the public and municipalities. Unfortunately, to date there has been limited consultation with the public or municipalities and very tight deadlines for comment on significant changes to a program that remains popular with Ontario residents.

 

OPTIONS/ DISCUSSION:

In recognition of the importance of this review process, York Region and the local municipalities (The Inter-municipal Waste Diversion Committee) met to prepare comments on the MOE’s paper ‘Toward a Zero Waste Future’. These comments supported the move to increased producer responsibility and increased diversion.  Comments were endorsed by York Region Council in January 2009 and are attached as Appendix #1.

 

In February 2009, Industry (WDO Industry representatives), issued their draft recommendations on the future of the blue box program. Their recommendations, if adopted, could significantly impact blue box recycling in Ontario and Markham’s curb side collection services.

 

The Inter-municipal Waste Diversion Committee met a second time to discuss Industries – WDO recommendations and prepared comments attached as Appendix #2.

 

WDO RECOMMENDATIONS:

 

The WDO’s draft recommendations propose to transition the blue box system from municipalities to industry in three phases:

 

Phase1: Industry will develop a detailed transition plan

 

Phase2: Industry will assume financial responsibility for the blue box system at a date to be specified by contracting for collection and processing services with service providers where municipal collection contracts have expired. Where long term contracts are in place, by offering to contract with municipalities on a fee for service basis

.

Phase 3: Industry will assume physical responsibility as existing municipal service provider contracts expire and would be responsible for establishing new contracts. Industry will contract with municipalities where contracts extend beyond the five year transition period on an exemption basis.

 

Industry has indicated that, under a full EPR system, they would be entitled to full control the blue box system design and operation. Concerns have been raised that Industry will seek the lowest cost system design which may not yield the desired environmental or service level objectives This could potentially impact current and future collection contracts, collection frequency, promotion/education and processing systems.

 

Municipalities that have extensive investments in their processing infrastructure may have stranded capital and less cost effective residue and organic collection systems.

 

It may be necessary for municipalities to continue to deliver curbside collection services to ensure reasonable service levels for residents.

 

AMO RECOMMENDATIONS:

 

AMO has been actively involved in the review process and has circulated draft recommendations to all Ontario municipalities. AMO has defined extended producer responsibility as:

 

“the transfer of costs and/or physical responsibility of waste management from local government authorities and the taxpayer to the producer.”

 

AMO is also recommending a phased transition:

 

Phase 1: 100% Industry responsibility for an expanded blue box system. 50% of the cost of packaging and paper in the garbage and litter stream, moving to 100% 

 

Phase 2: MOE to establish strict recovery targets – 90% by 2011

 

Phase 3: MOE enforcement of targets and directives for foreign importers

 

Phase 4: Require Industry management of problematic materials via recovery or deposit return programs

 

Phase 5: Province wide public communication about transition of blue box program

 

AMO has cautioned that full EPR may result in municipalities losing control and influence over the blue box system should Industry decide to operate the program. In addition, AMO cautions that full ERP programs in Europe have been criticized for being costly to the consumer.

 

SHIFT FROM 3R’S TO 4R’S

 

Since the early nineties, the MOE has not allowed materials sent to energy from waste (EFW) plant or incinerator, to count as ‘diversion’. This ‘no incineration’ policy aided the growth of blue box recycling in Ontario.

 

Part of the blue box review opens up for discussion amending this long standing policy to allow for the ‘recovery’ of recyclables using energy from waste technology as diversion. For example if a municipality sent 20% of its material to an EFW plant, that would translate to 20% diversion. Both Industry and AMO recommend placing limits on the amount of material send to EFW for ‘recovery’.

 

STAFF COMMENTS:

 

Municipalities are proud of the diversion achieved through their recycling programs and residents like the ease of curbside collection. Staff generally concur that the blue box system could be more effective. Over packaging, unclear rules, and confusion, continue to be challenges. A key concern is that the potential range of recycling models is large and their impact enormous. Moving forward, Staff support using the following fundamental principals:

 

·        Current service level expectations by the public are maintained and ideally enhanced in the future

·        The primary environmental objectives of material recycling are supported by enforced regulatory targets; and

·        Accountability to the public (i.e. the primary stakeholders) for the effectiveness of the system is maintained.

 

Staff  support the need for a broader consultation process and public engagement on this matter. Following the Minister’s consideration of Industry’s submission, it is suggested that the preferred options/models for advancing Ontario’s blue box material recycling system be more clearly defined and a meaningful Province-wide consultation be conducted.

 

FINANCIAL TEMPLATE:

Program changes may impact the 2010 budget. WDO funding will be received in 2009.

 

ENVIRONMENTAL CONSIDERATIONS:

EPR and Industry management of the recycling system could result in better packaging. . Conversely, by bringing back the forth ‘R’ – Recovery could result in increased incineration.

 

ACCESSIBILITY CONSIDERATIONS:

Not applicable

 

ENGAGE 21ST CONSIDERATIONS:

Not applicable

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable

 

RECOMMENDED

 

BY:  ________________________                   __________________________________

               Peter Loukes, P.Eng.                           Brenda Librecz

               Director of Operations                         Commissioner, Community & Fire Services

                           

 

                   

 

 

ATTACHMENTS:

Attachment “A” -   Letter dated December 2008

Attachment “B” -   Letter dated February 27, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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