Submission regarding the new…

Submission regarding the new Used Tire Program of Tire Stewardship Regulation under the RRCEA.

The Ministry of the Environment and Climate Change (MOECC) is winding up the existing Used Tire Program of Tire Stewardship and replacing it with a new regulation under the Resource Recovery and Circular Economy Act (RRCEA). This is intended to make Producers, as defined in the regulation, responsible for the recycling of the tires they make, import or sell in Ontario.

Among the key principles:

•The 85% target is achievable and reasonable

•Support for the Circular Economy is somewhat deficient as it includes recycling of old products into new products with an inherent degree of loss within each cycle.

•It is likely the new regulation will not impact noticeable on the everyday experience of the average consumer.

•Clear outcomes are defined with an opportunity to advance targets nearer to 100%.

•More definition would aid in the provision of flexibility regarding the producer’s means of achieving their targets.

•The desire for a level playing field requires that the market remain open to the introduction of innovation by new entrants and technologies.

The Proposed Regulation:

Designating Materials Tires are sorted into four basic classes and exclude commercial aircraft tires and certain small applications, which is supportive of the regulation’s intent. It is not clear if there is an intention to include tires from aviation or the military.

Defining Responsible Producers The definition of Producers is comprehensive but has the possibility for overlap where one entity might fit within two or more categories. This may lead to confusion regarding accountability. Web-based marketers who may be from out of province should be registered either at source or at the point of entry into Ontario. Out of Province Producers There may be a need to tighten the regulation or tracking of online sales made over the Internet. It is not clear how the Regulation will capture, monitor and account for cross-border sales of tires. This may allow for introduction of unaccounted products within the regulated environment. It is possible that tracking might be accomplished using the product serial number already in existence or by the introduction of an RFI type technology. Web-based marketers should also be required to register as Producers under the Regulation. In any event it is critical that any tires from out of province sources be added to the Producer’s target quota for recycling. It is possible registration or tracking could be facilitated at the border point of entry.

Collection of Tires The proposed collection Standards will serve the Regulation’s intent but it is important that registration of collectors not be limited and remains open to all. Future innovation will depend on the ability of new entrants to join the field and for incumbents to introduce new process and technology. If the Regulation allows for exclusivity of territory, it is inevitable that this will result in a stagnant industry based on control and complacency making it impossible for the government to influence behaviour.

Collection Standard #1 – Setting a collection requirement based on weight of tires sold in Ontario:

The baseline minimum and three year sales average are both effective. It may provide a better result if rather than accrue excess collection to a following year, a formula for provision of incentive payments or rebates be designed within the subject year. This would encourage and reward success and allow each year to begin from a zero base. There is an added benefit to zero base accounting in each year. Experience and collected data would show that it is possible and profitable to exceed the minimum target of 85% and allow for a review of the target over time with a view to raising the target.

In addition to any comments you may provide on the proposed regulation, the ministry is seeking your specific input on the following criteria for setting collection standard #1:

•Using a three-year sales average. - No issue except some tires have a life that exceeds 3 years.

•Setting the adjustment factor at 0.85. - There should be an incentive to exceed the target objective.

•Requiring that producers of large tires meet their collection standard by collecting at least 60% of their tire type. - There should be an incentive to exceed the target objective, also large tire manufacturers should be prepared to pay for collection and processing sufficient to meet their target.

•Allowing the ability for tire producers to carry over to the next year excess tires collected in the current year, up to a maximum of 5% (by weight) of their collection requirement to meet the standard in the following year. - This would be better applied to an incentive that would be paid or rebated for the amount the Producer exceeds the target. Beginning each year at a zero base has benefits discussed above. Collection Standard #2 – Providing Ontarians with accessible tire collection: There should be no barrier to easy return recycling of tires. Consideration should be given regarding an opportunity to assess penalties for consumers who fail to properly dispose of or return tires and for producers who fail to meet the 85% target.

In addition to any comments you may provide on the proposed regulation, the ministry is seeking your specific input on the following criteria for setting collection standard #2:

•Requiring producers to provide a minimum number of collection sites equal to 75% of the retail locations where their tires are supplied in each local municipality. oThis seems reasonable but allowance should be made for less populated areas of the province where large geographies come into play.

•Requiring a producer to provide at least one collection site or one public tire collection event per year in local municipalities and unorganized territories with a population of at least 1,000 persons, where no retail locations exist. oThis requirement could be met by designating a collection site and having a mobile pickup service contracted on a regular basis. Annual event planning may prove less than effective in attracting the attention of the public. Commercial event might be more useful.

•Requiring collection sites to accept up to 10 tires per day from any person. oThis is similar to the existing requirement and seems reasonable. Management of Tires Registering as a processor should remain open to new entrants at all times to facilitate the introduction of new processes and technologies. It is extremely important to ensure no centralized or monopolistic outcomes. The 85% recovery standard maximizes the recovery of resources from collected tires and recognizes that a small portion of tire materials is not currently recoverable. Incentives should be made available for any entrant who can move the recovery closer to 100%. This incentive should include technologies that better support the circular economy by the actual reduction of the tire to its elemental components rather than just transforming the tire into another retail product which in fact may be only a nominal delay for it disposal into landfill. It needs to be recognized that product to product recycling has an inherent degree of loss during each cycle.

In calculating the resource recovery standard, the regulation prohibits a producer from counting any tire or portion of a tire that is land disposed, incinerated, or used as a fuel or a fuel supplement. No tire should be allowed access to any landfill. There is a problem regarding the statements relating to fuel and fuel supplement. Technologies are available that extract power from the tire that do not pollute and should be permitted. Allowance should be made for the introduction of new innovations that better utilize the tire and have the potential of contributing to the energy needs of the province. Rather than simply eliminating any use of tires in the production of fuels, it would be better to focus on the environmental impact of any proposed process prior to its prohibition. An example comparison is the currently accepted practice of tire crumbing. The crumb is sold south to the United States where it is used as a fuel supplement. The emissions from this process would not be acceptable in Ontario, yet inevitably drift into the province’s airspace. As an alternative; specific technologies exist that reduce the tire to its basic elements including fuel and fuel supplements without detriment to our atmosphere, but this use would not be allowed within the proposed Regulation.

In addition to any comments you may provide on the proposed regulation, the ministry is seeking your specific input on the following criteria for setting the resource recovery standard:

•Requiring producers to recover 85% of the materials from tires collected, specifically whether this rate maximizes recovery while ensuring it is achievable. Note that tires reused or retreaded would count as 100%. It should be noted that re-treading is not truly 100% recovery since a significant percentage of the material is lost to wear during the service life of the tire. Rubber from another tire is added to the carcass in the re-treading process so the rubber lost to the road wear is still in the environment and subject to off-gassing for a period of time. Promotion and Education Producer websites should provide all information necessary for the return of tires for recycling. Point of sale exchanges should also significantly address tire capture. The origin and nature of all fees and charges should be made clear. It is possible to assess an additional fee to each retailer who sells a tire without taking in an old tire in exchange.

Registering, Record Keeping, Reporting and Auditing Significant tracking and auditing will be necessary to effect the implementation and operation of the new regulation. It may be sufficient to create a group of certified tire auditors for this purpose. Trained individuals with specific knowledge and expertise will add to the regulation’s effectiveness while adding skilled jobs to the Ontario market. Additional Input:

The ministry is also seeking the public’s feedback on the following concepts that are not currently in the proposed regulation but are being considered:

•Collection of Tires: oHow to ensure that all tires available in a given year are collected when one or more producers have reduced their collection requirement for that year because they exceeded their collection requirement in the previous year by up to 5% by weight. For example, if producers have exceeded their collection requirement by collecting an additional 1,000 tonnes, should that 1,000 tonnes be proportionately added to the amount that all producers have to collect in the following year?

•Each year should begin from a zero base. If a producer delivers beyond the 85% target they should be eligible for an incentive payment or rebate. After a few years of experience under the new regulation it may be possible to incrementally increase the 85% target over time to approach some higher target. It is possible that producers not meeting the increased objective would be subject to some penalty. oHow best to provide tire collection services to Indigenous communities in Ontario.

•The fundamental marketing and sales of tires in the indigenous communities is the same as in other parts of Ontario. This should allow for the same process of accounting for collection and recycling of the tires with the single exception that encouragement should be given to indigenous companies to register as collectors and processors of tires.

•Management of Tires: oAdding a mechanism that would provide incentives to encourage producers to meet resource recovery levels higher than the regulated level of 85%. This mechanism would differentiate between higher and lower valued end uses by giving a higher rating to the higher valued end uses.

•Positive incentives will not only encourage compliance but identify opportunities to increase targets. oDetermining what activities would be considered higher valued end uses and lower valued end uses for the purposes of meeting the 85% resource recovery requirement.

•Extra consideration and compensation should be given to any process that better delivers on the spirit of the circular economy. This would include non-emission creating process as well as any process that reduces the tire to its basic elements.

•Auditing: oWhether the proposed regulation should include a standard governing the independent audits of the producer’s management requirements and sales data.

•An opportunity exists to create a group of certified tire auditors that are trained to collect and vet data regarding the performance of each producer.

•Waste Reduction and Research and Development Activities: oThe inclusion of incentives (e.g., reducing collection and management requirements for producers) to promote waste reduction or increase resource recovery and developing markets for the recovered tire materials that would support a circular economy. Examples could include providing incentives that would affect product design elements (e.g., recycled rubber content in new tires), and for undertaking research and development (R&D) activities that would support resource recovery and waste reduction.

•R&D needs to be encouraged by evaluation of results and overall support of environmental objective within the circular economy. Broad statements restricting entire sectors should be avoided.

•In the case of tires, any process that results in energy creation is not permitted within the proposed regulation. This will result in no new investment toward innovation in this area that would allow for the production of clean energy from a readily available feed-stock and miss an effective opportunity to deal with waste material effectively within the circular economy.

 

[Original Comment ID: 212171]