Proposed Amendments to the Resource Recovery and Circular Economy Act, 2016 and the Blue Box Regulation

Ontario is seeking feedback on potential changes to the Resource Recovery and Circular Economy Act, 2016 (RRCEA) and the Blue Box Regulation (O. Reg. 391/21). These changes were introduced in the Legislature on October 27, 2026, as part of the Building Ontario Faster Act.

The Blue Box Regulation under the Resource Recovery and Circular Economy Act, 2016 makes producers, including brand holders, importers, and retailers, responsible for operating and collecting blue box programs for paper, packaging, and single use items at end-of-life.

Producers and Producer Responsibility Organizations (PROs) have informed us that the blue box is costing more than anticipated. Since the regulation was finalized in 2021, inflation, labour shortages, and supply chain bottlenecks for infrastructure have increased waste management costs.

In 2025, Ontario took action to maintain existing recycling services for residents while helping to curb future cost growth. The June 2025 amendments extended timelines for recovery targets and expanded collection, refocused the program on residential materials, removed certain planned expansions, and provided greater flexibility to meet targets for hard-to-recycle materials.

Since these changes were put in place, Ontario completed the transition to a fully producer-run blue box system on January 1, 2026. Producers are now fully responsible for funding and operating the system, creating new opportunities to improve efficiency, accountability, and service delivery across the province.

Under the newly transitioned system, Ontario continues to hear from producers about rising fees and a lack of transparency as to why system costs continue to climb.

To help improve transparency, strengthen accountability, contain costs while supporting a stable and sustainable residential recycling system, the government is proposing targeted enabling amendments to the Resource Recovery and Circular Economy Act, 2016 and potential future regulatory changes to the Blue Box Regulation.

The government is seeking feedback on the following potential changes:

1. Strengthen Cost Stability and Transparency

1a) Promote fee transparency and improved cost disclosure from Producer Responsibility Organizations (PROs).

1b) Create new RRCEA enabling authorities to regulate contracts, fees, and costs.

1c) Foster fair, consistent and predictable contract terms for producers.

1d) Facilitate improved collaboration to help PROs find cost savings.

2. Support Cost Containment and Operational Efficiency

2a) Consider whether flexible plastic belongs in a province-wide blue box system.

2b) Adjust service requirements to promote accessibility and efficiency.

3. Remove Barriers to Small Business Collection

3a) Allow materials from small industrial, commercial, and institutional (IC&I) establishments to count toward producer targets.

The government welcomes feedback on areas for future consideration to make the system more accountable, transparent and cost-effective for the businesses that pay for the blue box.

The proposed enabling amendments to the RRCEA, 2016 and potential future regulatory changes are summarized in the section below. Further details are provided in the plain language description of proposed amendments that accompanies this notice.

1. Strengthen Cost Stability and Transparency

1a) Promote fee transparency and improved cost disclosure from Producer Responsibility Organizations (PROs).

The government is considering amending the Blue Box Regulation to:

• Require PROs to publicly post proposed and finalized fee schedules on a public-facing website
• Require PROs to provide producers an itemized breakdown of system costs in quotes, invoices, and receipts
• Require PROs to publicly report annually on costs that they share for the province-wide common collection system, key cost drivers, actions taken to reduce or stabilize costs, and explanation of any cost increases

1b) Create new Resource Recovery and Circular Economy Act, 2016 enabling authorities to regulate contracts, fees, and costs.

The proposed legislative amendments would broaden existing authorities to make regulations governing contracts related to resource recovery and would allow government to:

• Regulate contracts related to Part IV of the act entered by any type of person
• Set requirements relating to fees or charges under these contracts
• Set requirements relating to contract terms
• Set criteria that determine a party’s eligibility or ineligibility to enter into a contract
• Specify circumstances under which parties must enter into a contract
• Apply requirements to both existing and future contracts

1c) Foster fair, consistent and predictable contract terms for producers.

• Require existing and future contracts between PROs and producers to align with regulated fee setting principles
• Require existing and future contracts between PROs and producers to follow prescribed requirements for mid-year fee increases, or additional charges in response to unanticipated costs

1d) Facilitate improved collaboration to help PROs find cost savings.

If proposed legislative amendments receive Royal Assent, as drafted, the government proposes amending the Blue Box Regulation to:

• Require any agreement between PROs governing the common collection system, such as the System Access Agreement, to include terms creating an Operating Committee
• Require any agreement between PROs governing the common collection system, such as the System Access Agreement, to include terms setting out consultation of PROs through the Operating Committee
• Require any agreement between PROs governing the common collection system, such as the System Access Agreement, to include terms that establish transparent, independent, and timely processes for audits, reviews, and dispute resolution
• Require the agreement for the blue box System Operator to include terms that require it to report annually to the Resource Productivity and Recovery Authority (RPRA) on prescribed system costs and performance outcomes related to the operation of the common collection system

2. Supporting Cost Containment and Operational Efficiency

2a) Consider whether flexible plastic belongs in a province-wide blue box system.

The government is considering amending the Blue Box Regulation to:

• Remove or change obligations for flexible plastic. This could include exempting these materials from the Blue Box Regulation, ending their collection outright. Alternately, the Blue Box Regulation could allow other methods of collection, such as those that reflect regional sorting or recycling capacity, or that allow PROs to collect materials more cost-effectively at local recycling depots

2b) Adjust service requirements to promote accessibility and efficiency.

The government is considering amending the Blue Box Regulation to:

• Phase out requirements to collect bagged or baled overflow materials, placed beside Blue Box receptacles, provided alternative collection methods are available for excess materials
• Establish clear criteria to determine when residents can receive additional collection receptacles delivered to their place of residence

3. Removing Barriers For Recycling Services For Small Businesses 

3a) Allow materials from small industrial, commercial, and institutional (IC&I) establishments to count toward producer targets.

The government is considering amending the Blue Box Regulation to:

• Allow blue box materials collected from small IC&I locations to count toward producer recovery targets including by permitting the comingling and co-collection of these materials

The government intends to have these requirements in place sometime in 2027, if the legislative amendments are passed as drafted and receive Royal Assent.

Analysis of regulatory impact

The objectives of the proposal are to help improve transparency, strengthen accountability, and contain costs, while supporting a sustainable residential recycling system.

The proposed amendments to the Resource Recovery and Circular Economy Act, 2016 and proposed amendments to the Blue Box Regulation will help achieve these objectives by ensuring that contracts have transparent fees, fair and predictable terms, and a collaborative environment for PROs. The proposed amendments to the Blue Box Regulation will also support stable costs by setting regulated requirements that promote operational efficiency and a focus on recyclable materials.

Given that current Resource Recovery and Circular Economy Act, 2016 amendments being proposed are enabling in nature and regulatory changes would be needed if a decision is made to utilize these provisions, the impacts, including burden and costs to business, will continue to be assessed as feedback is received during consultation and any regulations are developed.