August 18, 2007 sent via…

August 18, 2007 sent via email John Fox Senior Policy & Programs Advisor Ministry of the Environment Non-Hazardous Waste Policy Section 135 St Clair Avenue West, Floor 7 Toronto Ontario M4V 1P5 Re: EBR Registry number 010-0887 Dear Mr. Fox: The Association of Municipal Recycling Coordinators (AMRC) welcomes the opportunity to submit comments on the Proposed Regulation to exempt containers under the Deposit Return Program from Waste Diversion Ontario’s Blue Box Program Plan, EBR #010-0887. Overall, the AMRC is not in support of the proposed regulation. It is felt that the proposed regulation is premature in nature, will result in increased costs to municipal blue box recycling programs, and will not increase or enhance the recovery of the associated packaging materials. Prior to the implementation of the deposit return (D/R) on February 5, 2007, Liquor Control Board of Ontario and any manufacturer that sells spirits, beer and wine (hereafter referred to as LCBO) was a designated and recognized steward (section 9.3.1 of the Blue Box Program Plan) and contributed to the Blue Box Program Plan (BBPP). The importance of keeping LCBO as a steward: It is premature to remove LCBO as a steward under the BBPP since effectiveness of the D/R program has not been established. • The tonnage and cost estimates and assumptions used in the deduction of LCBO obligations from the 2007 steward’s fees have not proven at this point in time (August 2007). • Initial research undertaken by the AMRC has demonstrated that beverage alcohol containers (BAC) continue to be recovered, at a significant rate, through blue box programs. Programs have reported a reduction in glass recovered (the majority of LCBO packaging) from between 10% to close to 50%, year over year from 2006. This does indicate that the D/R program is diverting BAC, but that a significant proportion of those containers are still in the blue box program, and as such should be subject to steward fees to handle these materials. Recommendation 1: Waste materials audits should be implemented and conducted in a timely and on a regular basis to determine if the vast majority of LCBO containers are being handled through the D/R program and not in the municipal blue box programs. LCBO needs to demonstrate that de minimus levels are being met. Recommendation 2: Should WDO conduct audits to determine the level of residual BAC, and further action, it is recommended that municipal feedback for and involvement in the decision-making process be included. Recommendation 3: As presented, the regulation does not detail any reporting requirements, establishment and achievement of program goals and targets, or strategic promotion and education mandated for the LCBO. It is necessary that these components be mandated, measured and evaluated to ensure effectiveness and continuous improvement of the D/R program. These components should be ongoing to help ensure consumers modify their habits and stop placing LCBO packaging in municipal blue box programs. Increased costs to municipalities: We are concerned that removing LCBO as a steward could result in increased costs for municipalities • If LCBO is no longer a steward then there is no opportunity for Stewardship Ontario (SO), as the Industry Funding Organization (IFO) for the BBPP, and Waste Diversion Ontario (WDO) to recoup any fees for those materials that will be continued to be handled in blue box programs. Therefore, the cost of handling these materials will be borne solely by municipalities. • There may be a need for municipalities to track and discount the BAC that are collected in the blue box for the annual reporting through the provincial Datacall. This would increase the administrative burden for municipal programs as well as increase the blue box program operating costs. Recommendation 4: If BAC’s are removed from the BBPP, then the Minister must amend O/Reg. 101/94 to exempt those containers from inclusion on the blue box. This will provide municipalities the option to exclude them from the collection programs, ease the associated cost burden, enhance the collection under the D/R system, and simplify the administrative aspects around “stranded costs” of that material in the system. $5 million contribution: Under article 31 (2) of the WDA and since the inception of the BBPP, the LCBO has been responsible for a $5 million annual contribution. It is commendable that the LCBO will continue its voluntary contribution of $5 million for each of the next two years. This will provide some assistance to municipal blue box programs but will fall short of covering the $23 million in associated BAC handling costs estimated by municipalities. Clarification required: There is clarification required for the $5 million commitment - does this commitment run for calendar years 2008 and 2009? Alternative approach: Rather than exempting LCBO through regulation as a blue box steward, LCBO should develop and submit an Industry Stewardship Plan as detailed in section 34 of the WDA. This would provide LCBO removal as a steward under the BBPP and would set out a program to handle their packaging materials, set goals, provide for promotion and education and also provide possible funding to municipal programs for the materials that continue to be dealt with in the municipal blue box programs. Section 35 of the Waste Diversion Act (WDA) exempts Brewers Retail inc from being a steward of blue box waste, recognizing the fact that they have been stewards of their packaging products through a D/R system since 1927 and have demonstrated that they recover 90% plus of their packaging materials through this program (which is reported on annually). In closing, the AMRC does not support the removal of containers under the Deposit Return Program from Waste Diversion Ontario’s Blue Box Plan through a new regulation. There are specific and sufficient avenues available through the existing Acts and Regulations that would provide for the removal of LCBO as a steward under the BBPP and can be utilized by LCBO at any time. Also, initial indications have shown that the LCBO D/R program has not reached the level of success as Brewers Retail’s D/R program. Containers are being recovered through the municipal blue box programs, and adding costs to those programs. These costs would not be recovered though stewards’ fees if LCBO was exempted from the BBPP. Sincerely, Mike Birett, Chair, Board of Directors Association of Municipal Recycling Coordinators (AMRC)

[Original Comment ID: 103937]