Proposed Transitional Operating Agreement between the Minister of the Environment and Climate Change and the Resource Productivity and Recovery Authority under the Resource Recovery and Circular Economy Act, 2016

ERO number
012-9381
Notice type
Regulation
Act
Waste Diversion Transition Act, 2016
Posted by
Ministry of the Environment, Conservation and Parks
Notice stage
Decision Updated
Decision posted
Comment period
January 9, 2017 - February 23, 2017 (45 days) Closed
Last updated

Update Announcement

This decision notice was originally published on the old registry, on March 30, 2017. We have now migrated the same decision from the old registry for this proposal.

March 31, 2021

This consultation was open from:
January 9, 2017
to February 23, 2017

Decision summary

On January 9, 2017 the ministry proposed a Transitional Operating Agreement (TOA) between the Minister of the Environment and Climate Change and the Resource Productivity and Recovery Authority, under the Resource Recovery and Circular Economy Act, 2016. After considering input received, a decision was made to finalize the TOA.

Decision details

Under subsection 28 (4) of the Resource Recovery and Circular Economy Act, 2016 (RRCEA), the Minister and the initial board of the Resource Productivity and Recovery Authority are required to enter into a transitional operating agreement within 120 days of proclamation. The operating agreement is a key measure intended to promote a clear accountability framework between the Minister and the Authority, clarify roles and responsibilities between the Minister and the Authority, and ensure that matters in the public interest are addressed appropriately.

On January 9, 2017 the ministry sought input on a proposal for the transitional operating agreement (EBR Registry # 012-9381) for 45 days until February 23, 2017. After considering input received from stakeholders on this proposal, a decision was made to proceed and finalize the transitional operating agreement between the Minister of the Environment and Climate Change and the Resource Productivity and Recovery Authority under the RRCEA.

The RRCEA overhauled Waste Diversion Ontario (WDO) – the former oversight body under the Waste Diversion Act, 2002 – to become the Resource Productivity and Recovery Authority (Authority), a non-Crown and not for profit organization. Under the RRCEA, the Authority is responsible for providing effective oversight, developing and operating a data clearinghouse, and undertaking compliance and enforcement related to the new producer responsibility regime under that Act. The Authority is also responsible for oversight, compliance and enforcement related to existing waste diversion programs and their wind-up under the Waste Diversion Transition Act, 2016 (WDTA).

The transitional operating agreement was entered into by the Minister and the Authority, effective March 27, 2017. The transitional operating agreement:

  • Sets out the accountability framework between the government, through the Minister, and the Authority and clarifies the administrative, financial, working and reporting relationships between the two parties;
  • Clarifies the roles, duties and responsibilities of the Minister and the Authority in relation to the RRCEA, WDTA and any administrative matters under the Acts and regulations;
  • Sets out matters that the Minister considers advisable in the public interest relating to the Authority’s carrying out of its objects, including its governance and operations; and
  • Promotes openness and transparency to serve the public interest

Comments received

Through the registry

5

By email

12

By mail

0
View comments submitted through the registry

Effects of consultation

The comments received on the proposed transitional operating agreement between the Minister of the Environment and Climate Change and the Resource Productivity and Recovery Authority were considered in the development of the final operating agreement. Of the 17 comments received by the ministry, comments were received from a variety of stakeholder sectors including: the waste management industry, service providers, producers, municipalities and industry associations.

The ministry also considered comments raised at the two webinar information sessions held on the operating agreement on January 26 and 30, 2017 with stakeholders. More than 85 stakeholders participated in the webinars including: the Authority, producers, municipalities, industry associations and service providers.

Overall, there was general support for the proposed transitional operating agreement and its guiding principles. There were suggestions on how to improve or clarify the agreement, while some comments discussed matters that are already addressed in the RRCEA or will need to be addressed through implementation of the legislation.

Some stakeholders support the Minister’s oversight measures in the legislation and operating agreement while some would prefer less government oversight. There is broad support for ensuring the Authority is transparent and accountable; however, many producers and industry associations would like to see additional measures for cost-containment and protecting confidential data. Many stakeholders want to ensure the Authority is cost effective and efficient and want to reduce administrative burden and costs to the regulated parties. Some support a skills-based board and recommended additional board member qualifications, while others would like to see industry representation on the board. Stakeholders want to ensure they are consulted with and some support establishing a stakeholder advisory council for ongoing engagement. The ministry reviewed and considered the comments from stakeholders and, where appropriate, revised the operating agreement to reflect some of the comments raised.

Key amendments to the transitional operating agreement include:

  • Balancing information transparency and protecting confidential information, including indicating how the ministry will treat information supplied in confidence by the Authority that satisfies section 17 of the Freedom of Information and Protection of Privacy Act, and noting that the Authority is subject to the confidentiality of information provisions in the RRCEA and WDTA.
  • Strengthening good governance of the Authority by expanding the board member qualifications to include experience and practical expertise in “auditing” relating to the finance area.
  • Improving accountability and good governance to indicate that the Authority’s Board and the CEO shall not interfere with the independent exercise of the Registrar, Deputy Registrar and inspectors.
  • Enhancing transparency and accountability of the Authority’s operations by requiring the Authority to develop policies and guidelines for its compliance and enforcement personnel – in addition to a code of conduct – for use when exercising its compliance and enforcement powers. The Authority shall also develop compliance and enforcement policies and procedures relating to the issuance of administrative penalty orders under the RRCEA or the WDTA and in relation to determining the amount of the administrative penalty.
  • Promoting open and transparent reporting of the Authority’s operations by strengthening the corporate planning and reporting requirements. This includes amending the operating agreement to state that the Authority’s audited financial statements shall be segregated for the WDTA and RRCEA, respectively.

Supporting materials

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Important notice: Due to the ongoing COVID-19 pandemic, viewing supporting materials in person is not available at this time.

Please reach out to the Contact listed in this notice to see if alternate arrangements can be made.

Resource Recovery Policy Branch
Address

40 St. Clair Avenue West
8th floor
Toronto, ON
M4V 1M2
Canada

Office phone number

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Original proposal

ERO number
012-9381
Notice type
Regulation
Act
Waste Diversion Transition Act, 2016
Posted by
Ministry of the Environment, Conservation and Parks
Proposal posted

Comment period

January 9, 2017 - February 23, 2017 (45 days)

Proposal details

On November 30, 2016 the Ontario Government proclaimed the Resource Recovery and Circular Economy Act, 2016, (RRCEA) and the Waste Diversion Transition Act, 2016 (WDTA), enacted by the Waste-Free Ontario Act, 2016 (WFOA).

The RRCEA overhauled Waste Diversion Ontario (WDO) – the former oversight body under the Waste Diversion Act, 2002 – to become the Resource Productivity and Recovery Authority (Authority), a non-Crown and not for profit organization. Under the RRCEA, the Authority is responsible for providing effective oversight, developing and operating a data clearinghouse, and undertaking compliance and enforcement related to the new producer responsibility regime under that Act. The Authority is also responsible for oversight, compliance and enforcement related to existing waste diversion programs and their wind-up under the WDTA.

The legislation includes a number of governance, accountability and transparency measures to help ensure that the new Authority operates effectively and that the government has oversight measures consistent with best governance practices. Under the RRCEA, a key oversight measure is the requirement for the Minister and the Authority’s initial board to enter into a transitional operating agreement within 120 days of proclamation.

MOECC is proposing a transitional operating agreement that aims to:

  • Set out the accountability framework between the government, through the Minister, and the Authority and clarify the administrative, financial, working and reporting relationships between the two parties;
  • Clarify the roles, duties and responsibilities of the Minister and the Authority in relation to the RRCEA, WDTA and any administrative matters under the Acts and regulations;
  • Set out matters that the Minister considers advisable in the public interest relating to the Authority’s carrying out of its objects, including its governance and operations; and
  • Promote openness and transparency to serve the public interest.

The operating agreement was developed with the following key guiding principles:

  • Builds on strong accountability and transparency provisions in the legislation;
  • Draws upon modern governance principles;
  • Reflects the Authority’s role under the legislation to conduct oversight and operate a data clearinghouse in the resource recovery and waste reduction sector; and
  • Designed for long-term use but also reflects the transitional period for the initial board.

The operating agreement includes the following key provisions relating to the Minister and the Authority:

Accountability Relationships

The Minister is accountable to the Legislative Assembly and has a legislative oversight role with respect to the Authority. The Authority is accountable to the Minister through the Chair for the performance of the Authority.

Roles and Responsibilities

The Minister is responsible for a number of matters including developing legislation, regulations and policies related to resource recovery or waste reduction, and for overseeing the Authority’s performance. The Authority is responsible for several matters, including: carrying out its objects in accordance with the legislation, conducting its operations in an efficient and economical manner, establishing by-laws and other tools promoting good governance and undertaking risk-based compliance and enforcement.

Board Composition, Appointments and Elections

Includes provisions setting out Board member qualifications and disqualifications, as well as requirements relating to member terms, elections and evaluating performance.

Financial Arrangements

Establishes fee-setting principles for the Authority to consider, in addition to the public consultation requirements set out in the legislation.

Information Sharing

Schedule A of the operating agreement sets out an information sharing protocol between the Authority and the Minister.

Code of Conduct

Schedule B of the operating agreement sets out principles for the Authority to be consistent with in developing a code of conduct for its board members. This includes requiring the board to develop by-laws and other tools establishing requirements with respect to conflict of interest.

Access and Privacy Code

Schedule E of the operating agreement sets out principles for the Authority to be consistent with in developing an access and privacy code. In addition to following the confidentiality provisions in the legislation, the operating agreement also requires the Authority to develop and maintain an access and privacy code addressing issues of access to information, protection of personal information, and effective procedural remedies.

Other information

As per section 37 of the RRCEA, the Authority and its members of the Board, officers, employees and agents are not agents of the Crown in right of Ontario.

Other public consultation opportunities

The Ministry of the Environment and Climate Change will be holding teleconference sessions with interested stakeholders to present an overview of the transitional operating agreement, answer any questions and receive feedback from participants.

Regulatory impact statement

Under the RRCEA, a key oversight measure is the requirement for the Minister and the Authority’s initial board to enter into a transitional operating agreement within 120 days of proclamation. Subsection 28 (9) of the RRCEA provides that section 16 of the Environmental Bill of Rights, 1993 and the other provisions of that Act that apply to proposals for regulations, apply with necessary modifications to an operating agreement under consideration by the Minister under this section and, for that purpose, the operating agreement is deemed to be a proposal under consideration in the Ministry for a regulation under a prescribed Act. It is anticipated that the transitional operating agreement will not directly impact Ontarians as it is an administrative governance document between the Minister and the Authority.

Supporting materials

View materials in person

Important notice: Due to the ongoing COVID-19 pandemic, viewing supporting materials in person is not available at this time.

Please reach out to the Contact listed in this notice to see if alternate arrangements can be made.

Resource Recovery Policy Branch
Address

40 St. Clair Avenue West
8th floor
Toronto, ON
M4V 1M2
Canada

Office phone number

Comment

Commenting is now closed.

This consultation was open from January 9, 2017
to February 23, 2017

Connect with us

Contact

Lisa Kingsmore

Phone number
Office
Resource Recovery Policy Branch
Address

40 St. Clair Avenue West
8th floor
Toronto, ON
M4V 1M2
Canada

Office phone number